Revision:Money Demand Exam Questions

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June

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

1. the payment of interest on demand deposits;
2. an expected rise in inflation;
3. the individual choosing to be self-employed?

1996 no question

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

1. the imposition of bank charges on current account transactions
2. a reduction in the expected rate of inflation
3. 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

1. the greater availability of cash machines;
2. an increase in wealth;
3. an increase in income?

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