Economics · Macroeconomic Terms
Consider the following statements: (a) 'Liquidity trap' is a situation when people prefer to hold money rather than investing it. (b) 'Liquidity preference' is the situation when people prefer to invest money rather than hold it. (c) 'Liquidity crunch' is a situation of short supply of money in the money market. (d) 'Credit crunch' is a situation of short supply of loanable funds in the credit market. Select the correct statements using the code given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(a), (b) and (c)
- 2(b), (c) and (d)
- 3(a), (c) and (d)✓
- 4(a), (b) and (d)
Correct answer
(a), (c) and (d)
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