MCQs
Total Questions : 89
| Page 5 of 9 pages
Answer: Option B. -> For a given stock of gold, a rise in real money supply can only occur if the price level declines.
Answer: (b)For a given stock of gold, a rise in real money supply can only occur if the price level declines. The blue fit of Gold standard is that a fixed assets back the money values. It provide a self regulating and stabilizing effect on the economy that discourages the inflation.
Answer: (b)For a given stock of gold, a rise in real money supply can only occur if the price level declines. The blue fit of Gold standard is that a fixed assets back the money values. It provide a self regulating and stabilizing effect on the economy that discourages the inflation.
Answer: Option A. -> Growth Recession
Answer: (a)
Answer: (a)
Answer: Option A. -> fall in the value of currency only
Answer: (a)When the price level rises, each unit of currency buys fewer goods and services.So rise in the price of a commodity means fall in the value of currency only.
Answer: (a)When the price level rises, each unit of currency buys fewer goods and services.So rise in the price of a commodity means fall in the value of currency only.
Answer: Option C. -> checkable deposits
Answer: (c)
M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.
M0 + M1 - Narrow money - includes coins and notes in circulation and other money equivalents that are easily convertible into cash.
M2 - M1 + short term deposits in banks.
M3 - M2 + long term deposits and money market fund.
M4 - M3 + other deposits.
Answer: (c)
M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.
M0 + M1 - Narrow money - includes coins and notes in circulation and other money equivalents that are easily convertible into cash.
M2 - M1 + short term deposits in banks.
M3 - M2 + long term deposits and money market fund.
M4 - M3 + other deposits.
Answer: Option A. -> It is the impact of the price levels of previous year on the calculation of inflation rate.
Answer: (a)The base effect relates to inflation in the corresponding period of the previous year: If the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the price index will arithmetically give a high rate of inflation.
Answer: (a)The base effect relates to inflation in the corresponding period of the previous year: If the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the price index will arithmetically give a high rate of inflation.
Answer: Option B. -> Self Regulatory Organisations
Answer: (b)
A self-regulatory organization (SRO) is a non-governmental organization that has the power to create and enforce industry regulations and standards.
The priority is to protect investors through the establishment of rules that promote ethics and equality.
Answer: (b)
A self-regulatory organization (SRO) is a non-governmental organization that has the power to create and enforce industry regulations and standards.
The priority is to protect investors through the establishment of rules that promote ethics and equality.
Answer: Option A. -> A situation where the same product is sold to different consumers for different prices
Answer: (a)When different consumers pay different prices for the same product, this situation is known as price discrimination.
Answer: (a)When different consumers pay different prices for the same product, this situation is known as price discrimination.
Answer: Option C. -> Reflation
Answer: (c)
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle.
Disinflation: Reduction in the rate of inflation.
Inflation Hedge: It is an investment with intrinsic value such as Oil, Natural Gas, Gold, farmland and to a lesser degree commercial real state.
Answer: (c)
Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle.
Disinflation: Reduction in the rate of inflation.
Inflation Hedge: It is an investment with intrinsic value such as Oil, Natural Gas, Gold, farmland and to a lesser degree commercial real state.
Answer: Option C. -> an increase in purchases by the federal government
Answer: (c)An increase in purchase by the federal Gov. causes the aggregate demand curve to shift to the right.
Answer: (c)An increase in purchase by the federal Gov. causes the aggregate demand curve to shift to the right.
Question 50. With reference to India, consider the following statements.
- The Wholesale Price Index (WPI) in India is available on a monthly basis only.
- As compared on Consumers Price Index for Industrial Workers [CPI(IW)] the WPI gives less weight to food articles.
Answer: Option A. -> Both 1 and 2
Answer: (a)
Answer: (a)
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