Q.1 Which of the following is/are the qualitative tool of Central Bank ?
(a) Moral suasion
(b) Margin requirement
(c) Bank rate
(d) Both (a) and (b)
Ans: D
Q.2 In a situation of ‘Inflationary Gap’ at the full employment level of income:
(a) AD < AS
(b) AD > AS
(c) AD = AS
(d) None
Ans: B
Q.3 Which of the following measures of meeting deficit in a budget, leads to an increase in money supply in the economy. (Choose the correct alternative)
(a) Disinvestment
(b) Loan from World Bank
(c) Deflict Financing
(d) All of these
Ans: C
Q.4 “Change in government revenue” is part of
(a) Fiscal policy
(b) Monetary policy
(c) Either (a) or (b)
(d) Neither (a) nor (b)
Ans: A
Q.5 When the government prints and circulates more currency in the economic system,it must
(a) bring down the general price level.
(b) push up the general price level.
(c) increase the supply of goods in the economy.
(d) None of the above.
Ans: C
Q.6 To fight deflation, the government should
(a) increase income tax rate.
(b) cut back its own expenditure
(c) increase investment by giving monetary and fiscal incentives
(d) increase bank rate.
Ans: C
Q.7 He responsibility of fiscal policy lies with
(a) the government
(b) the central government
(c) the commercial bank
(d) the stock exchanges
Ans: B
Q.8 Identify the correct statement
(a) Excess demand leads to decrease in output.
(b) Increase in CRR increases the lending capacity of the banks.
(c) Reduction in government spending leads to fall in income.
(d) Monetary policy is the policy of the government to control credit and money supply.
Ans: C
Q.9 _____ is exercised through discussions, letters and speeches to banks.
(a) Moral suasion
(b) Selective Credit Control
(c) Margin Requirements
(d) OMO
Ans: A
Q.10 Which of these of fiscal policy can be used to correct deficient demand ?
(a) Increase in government expenditure
(b) Cut in tax rates
(c) Cut in public borrowing
(d) All of these
Ans: D
Q.11 Wage-price spiral is a consequence of:
(a) inflationary gap
(b) deflationary gap
(c) stagflation
(d) both (a) and (c)
Ans: A
Q.12 Which of the these of monetary policy can be adopted to correct excess demand ?
(a) Increase in repo rate
(b) Increase in CRR
(c) Increase in margin requirement
(d) All of these
Ans: D
34 docs|4 tests
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1. What is excess demand in commerce and why is it a problem? |
2. What is deficient demand in commerce and why is it a problem? |
3. What are the potential measures to correct excess demand in commerce? |
4. What are the potential measures to correct deficient demand in commerce? |
5. What are the consequences of not addressing excess or deficient demand in commerce? |
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