Money Demand Exam Questions
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June

1995 –What is the effect on an individual’s demand for money of:

(i)                  the payment of interest on demand deposits;

(ii)                an expected rise in inflation;

(iii)               the individual choosing to be self-employed?

1996 – no question

1997 – what are the effect on an individual’s demand for money of:

(a)    the imposition of bank charges on current account transactions

(b)   a reduction in the expected rate of inflation

(c)    an increase in the number of forged banknotes?

1998 – no question

1999 – Why do individuals hold money?  If inflation were to increase, would you expect

them to hold more or less money?

2000 – no question

September

1994 – Do models of money demand fully explain why individuals hold money?

1995 – ‘Since narrow money pays no interest there is no reason to hold it’.  Discuss.

1996 – no question

1997 – no question

1998 – How is the demand for money affected by

(a)    the greater availability of cash machines;

(b)   an increase in wealth;

(c)    an increase in income?

Other Notes in this Category

1. Investment
2. Investment Exam Questions
3. Macroecomic Questions : The Structure of the British Economy
4. Money Demand Exam Questions
5. Unemployment Exam Questions

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