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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