McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 251. |
‘Stagflation’ is a situation where the economy faces |
| A. | Inflation |
| B. | Stagnation |
| C. | Inflation as well as stagnation |
| D. | None of the above |
| Answer» B. Stagnation | |
| 252. |
Which of the following is not a function of a commercial bank |
| A. | Accepting deposits |
| B. | Issuing currency |
| C. | Advancing loans |
| D. | Credit creation |
| Answer» C. Advancing loans | |
| 253. |
The RBI set up in the year |
| A. | 1921 |
| B. | 1935 |
| C. | 1947 |
| D. | 1951 |
| Answer» B. 1935 | |
| 254. |
Which of the following represents the major functions of the central bank |
| A. | Note issuing agency |
| B. | Controller of credit |
| C. | Banker to the government |
| D. | All of the above |
| Answer» D. All of the above | |
| 255. |
Find the odd man out |
| A. | Bank rate policy |
| B. | Taxation |
| C. | Open market operation |
| D. | Variable reserve ratio |
| Answer» C. Open market operation | |
| 256. |
Bank rate refers to |
| A. | Discount rate |
| B. | Market rate |
| C. | Rediscount rate |
| D. | None of the above |
| Answer» B. Market rate | |
| 257. |
Open market operation influences |
| A. | The reserves of commercial banks |
| B. | The market rate of interest |
| C. | Both A and B |
| D. | None of the above |
| Answer» C. Both A and B | |
| 258. |
Which of the following is an anti-deflationary monetary policy |
| A. | Purchase of government securities from commercial banks and from the public |
| B. | Sale of government securities from commercial banks and from the public |
| C. | Raising the cash reserve ratio |
| D. | All of the above |
| Answer» A. Purchase of government securities from commercial banks and from the public | |
| 259. |
Let the cash reserve ratio is 12%. Then the value of credit multiplier will be |
| A. | 8.0 |
| B. | 8.3 |
| C. | 10 |
| D. | 12 |
| Answer» B. 8.3 | |
| 260. |
Inflation represents: |
| A. | fall in price level |
| B. | increase value of money |
| C. | decrease value of money |
| D. | None |
| Answer» C. decrease value of money | |
| 261. |
Who told Inflation is too much of money chasing too few goods: |
| A. | Coulbourn |
| B. | Keynes |
| C. | Friedman |
| D. | Samuelsson |
| Answer» A. Coulbourn | |
| 262. |
Among the following which is not a feature of inflation? |
| A. | long term process |
| B. | state of disequilibrium |
| C. | dynamic in nature |
| D. | non monetary phenomenon. |
| Answer» D. non monetary phenomenon. | |
| 263. |
Deflation means: |
| A. | falling price level |
| B. | rise in price level |
| C. | increase value of money |
| D. | None |
| Answer» A. falling price level | |
| 264. |
Only Money Matters is Propounded by: |
| A. | Keynesians |
| B. | Monetarists |
| C. | Classicals |
| D. | Neo-Classicals |
| Answer» B. Monetarists | |
| 265. |
Sacrifice ratio measures : |
| A. | Output lose |
| B. | profit lose |
| C. | Income lose |
| D. | None |
| Answer» A. Output lose | |
| 266. |
When prices of only few commodities rise |
| A. | Sporadic Inflation |
| B. | suppressed inflation |
| C. | open inflation |
| D. | creeping inflation |
| Answer» A. Sporadic Inflation | |
| 267. |
Which is the slowest inflation? |
| A. | Walking inflation |
| B. | running inflation |
| C. | Creeping inflation |
| D. | moderate inflation |
| Answer» C. Creeping inflation | |
| 268. |
The rate of inflation in walking inflation is: |
| A. | between 3to 10 % |
| B. | below 3 % |
| C. | More than 10% |
| D. | More than 3% |
| Answer» A. between 3to 10 % | |
| 269. |
Price rise in every second is referred as |
| A. | Running inflation |
| B. | Galloping inflation |
| C. | Walking inflation |
| D. | Hyper inflation |
| Answer» D. Hyper inflation | |
| 270. |
Inflation due to hording |
| A. | Credit inflation |
| B. | Scarcity inflation |
| C. | Profit inflation |
| D. | None |
| Answer» B. Scarcity inflation | |
| 271. |
Long run Phillips Curve is : |
| A. | Parallel |
| B. | Horizontal |
| C. | Vertical |
| D. | Kinked |
| Answer» C. Vertical | |
| 272. |
In business cycle, depression is followed by: |
| A. | . Boom |
| B. | Recovery |
| C. | Recession |
| D. | None of the above |
| Answer» B. Recovery | |
| 273. |
The Working Group for the Revision of Wholesale Price Index Number headed by : |
| A. | Prof. Abhijit Sen |
| B. | Kelkar |
| C. | Ahluwalia |
| D. | Tarapore |
| Answer» A. Prof. Abhijit Sen | |
| 274. |
The headline inflation in India is measured in: |
| A. | WPI |
| B. | CPI |
| C. | GDP Deflator |
| D. | All |
| Answer» A. WPI | |
| 275. |
The working group in India include in the age: |
| A. | 14 to 55 |
| B. | 15 to 59 |
| C. | 20 and above |
| D. | 25 and above |
| Answer» B. 15 to 59 | |
| 276. |
Open market operations refer to the sale and purchase by the RBI of : |
| A. | Gold |
| B. | Foreign exchange |
| C. | Government securities |
| D. | All the above |
| Answer» C. Government securities | |
| 277. |
Which of the following is not an objective of monetary policy? |
| A. | Price stability |
| B. | Balance of Payments equilibrium |
| C. | Economic growth |
| D. | Reduction in export |
| Answer» D. Reduction in export | |
| 278. |
Which of the following is not an element of high Powered money? |
| A. | Currency |
| B. | Repos |
| C. | Required Reserves |
| D. | Excess reserves |
| Answer» B. Repos | |
| 279. |
The ratio of money supply to high powered money is: |
| A. | SLR |
| B. | CRR |
| C. | Money Multiplier |
| D. | Bank rate |
| Answer» C. Money Multiplier | |
| 280. |
Fiscal Policy is a policy of the |
| A. | Central bank |
| B. | Government |
| C. | Finance commission |
| D. | Finance minister |
| Answer» B. Government | |
| 281. |
Fiscal Policy includes: |
| A. | Expenditure policy |
| B. | Tax policy |
| C. | both a and b |
| D. | neither a nor b. |
| Answer» C. both a and b | |
| 282. |
The objective of Monetary Policy is : |
| A. | to print notes of desired denominations |
| B. | to control cost and supply of money |
| C. | to provide loan to government |
| D. | none of these |
| Answer» A. to print notes of desired denominations | |
| 283. |
Fiscal Policy refers to policy towards: |
| A. | Public revenue |
| B. | public expenditure |
| C. | public debt |
| D. | all of the above |
| Answer» D. all of the above | |
| 284. |
In a closed economy which of the following is not a macroeconomic objective? |
| A. | National income growth |
| B. | price level stability |
| C. | BOP stability |
| D. | employment |
| Answer» C. BOP stability | |
| 285. |
A business cycle is composed of ----- phases: |
| A. | 2 Phase |
| B. | 3 Phase |
| C. | 4 Phase |
| D. | No Phase |
| Answer» C. 4 Phase | |
| 286. |
The percentage of deposits of commercial banks statutorily kept with the RBI is : |
| A. | Cash Reserve Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Repo Rate |
| D. | None of these |
| Answer» A. Cash Reserve Ratio | |
| 287. |
Peak is the --- turning point of the business cycle. |
| A. | Upper turning point |
| B. | Lower turning point |
| C. | Middle turning point |
| D. | None of these |
| Answer» A. Upper turning point | |
| 288. |
Wage control is an instrument of ---- policy |
| A. | Fiscal policy |
| B. | Monetary policy |
| C. | Incomes policy |
| D. | None of these |
| Answer» C. Incomes policy | |
| 289. |
The trough of a business cycle occurs when hits its lowest point. |
| A. | Inflation |
| B. | the money supply |
| C. | aggregate economic activity |
| D. | the unemployment rate |
| Answer» C. aggregate economic activity | |
| 290. |
The lowest point in the business cycle is referred to as the: |
| A. | Expansion. |
| B. | Boom. |
| C. | Trough. |
| D. | Peak. |
| Answer» C. Trough. | |
| 291. |
When aggregate economic activity is increasing, the economy is said to be in: |
| A. | an expansion. |
| B. | a contraction. |
| C. | a peak. |
| D. | a turning point. |
| Answer» A. an expansion. | |
| 292. |
When aggregate economic activity is declining, the economy is said to be in: |
| A. | a contraction. |
| B. | an expansion. |
| C. | a trough. |
| D. | a turning point. |
| Answer» A. a contraction. | |
| 293. |
Economists use the term shocks to mean: |
| A. | unexpected government actions that affect the economy |
| B. | typically unpredictable forces that have major impacts on the economy |
| C. | sudden rises in oil prices |
| D. | the business cycle. |
| Answer» B. typically unpredictable forces that have major impacts on the economy | |
| 294. |
Wars, new inventions, harvest failures, and changes in government policy are examples of: |
| A. | the business cycle. |
| B. | economic models. |
| C. | shocks. |
| D. | opportunity costs. |
| Answer» C. shocks. | |
| 295. |
Peaks and troughs of the business cycle are known collectively as: |
| A. | Volatility. |
| B. | Turning points. |
| C. | Equilibrium points. |
| D. | Real business cycle events. |
| Answer» B. Turning points. | |
| 296. |
ISLM model was basically…………sector model: |
| A. | Two |
| B. | One |
| C. | Three |
| D. | Four |
| Answer» A. Two | |
| 297. |
Original IS-LM model is a ……..model. |
| A. | Open |
| B. | Closed |
| C. | Both |
| D. | None |
| Answer» B. Closed | |
| 298. |
ISLM is used to determine: |
| A. | income |
| B. | interest |
| C. | Both |
| D. | All |
| Answer» C. Both | |
| 299. |
The steepness of the IS curve depends on: |
| A. | change in interest |
| B. | Size of the multiplier |
| C. | both |
| D. | None |
| Answer» C. both | |
| 300. |
Who develop the ISLM open economy model? |
| A. | Mundell |
| B. | Fleming |
| C. | Both |
| D. | None |
| Answer» C. Both | |
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