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McqMate
Chapters
1. |
The government spending multiplier is as higher as: |
A. | higher is the government spending |
B. | higher is the mpc |
C. | lower is the mpc |
D. | lower is the tax revenue |
Answer» B. higher is the mpc |
2. |
Point out which of the following is not an instrument of fiscal policy: |
A. | an increase in the interest rate |
B. | a cut in unemployment compensation |
C. | an increase in tobacco taxes |
D. | a cut in the marginal rates of irpf |
Answer» A. an increase in the interest rate |
3. |
The function of investment spending shifts to the left if: |
A. | the interest rate rises |
B. | the interest rate falls |
C. | business expectations improve |
D. | business expectations get worse |
Answer» D. business expectations get worse |
4. |
An increase in the interest rate1 |
A. | shifts the aggregate demand curve to the left |
B. | shifts the aggregate demand curve to the right |
C. | has no effect |
D. | moves the economy along the aggregate demand curve |
Answer» A. shifts the aggregate demand curve to the left |
5. |
As higher is the MPS |
A. | lower is the multiplier. |
B. | higher is the investment spending |
C. | higher is the equilibrium income. |
D. | all the answers are right |
Answer» A. lower is the multiplier. |
6. |
To increase the money supply, the bank central could: |
A. | cut taxes |
B. | purchase bonds in the open-market |
C. | encourage people to held more cash (currency in circulation) |
D. | increase the government spending |
Answer» B. purchase bonds in the open-market |
7. |
The variable that connect the market of money and the market of goods via investment spending is: |
A. | the mpc |
B. | the interest rate |
C. | the mps |
D. | the cpi |
Answer» B. the interest rate |
8. |
Point out the monetary policy instrument: |
A. | an increase in direct taxes |
B. | open-market operations |
C. | freezing pensions |
D. | a cut in government purchase of goods and services |
Answer» B. open-market operations |
9. |
Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls the supply of money, availability of bank credit and cost of money that is the rate of interest: |
A. | central bank (rbi) |
B. | sbi |
C. | iba |
D. | none of these |
Answer» A. central bank (rbi) |
10. |
_______controls the supply of money and bank credit: |
A. | rbi |
B. | indian banking association |
C. | sebi |
D. | none of these |
Answer» A. rbi |
11. |
The main objective of monetary policy in India is_______: |
A. | growth with stability |
B. | reduce poverty and achieve stability |
C. | overall monetary stability |
D. | none of these |
Answer» A. growth with stability |
12. |
The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every ______bank has to keep certain minimum cash reserves with RBI: |
A. | public bank |
B. | commercial bank |
C. | industrial and agricultural banks |
D. | none of these |
Answer» B. commercial bank |
13. |
If RBI wants to increase the credit flow it buys ______: |
A. | government securities |
B. | shares and debentures |
C. | other local and short-term securities |
D. | none of these |
Answer» A. government securities |
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