Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.
Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : fiscal policy
Description : Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy
Last Answer : (4) Monetary policy Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the ... money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
Last Answer : Monetary policy
Description : The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio
Last Answer : (2) Cash Reserve Ratio Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.
Description : The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio
Last Answer : Cash Reserve Ratio
Description : The Cash Reserve Ratio is a tool of : (1) Monetary policy (2) Tax policy (3) Agricultural policy (4) Fiscal policy
Last Answer : (1) Monetary policy Explanation: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as ... CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.
Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks
Last Answer : (1) restricts lending Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form gold or government approved securities before providing credit to ... , suck liquidity in the market, to tighten the measure to safeguard the customers' money.
Last Answer : restricts lending
Description : Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities
Last Answer : A. To increase liquidity in economy
Description : Suppliers and creditors of a firm are interested in A. Profitability position B. Liquidity position C. Market share position D. Debt position
Last Answer : B. Liquidity position
Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk
Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier
Description : Which is the type of dividend? A. Cash Dividend B. Interest C. Profit cum-reserve D. Flexible Capital
Last Answer : A. Cash Dividend
Description : Amalgamate adjustment account is opened in the books of transferee company to incorporate: A. The assets of the transferor company B. The liabilities of the transferor company C. The statutory reserves of the transferor company D. The non – statutory reserves of the transferor company
Last Answer : C. The statutory reserves of the transferor company
Description : An open economy is one where a. Deficit financing is absent b. No export activities c. No import activities d. Economy opened to the world
Last Answer : d. Economy opened to the world A closed economy is one where there is no exporting or importing activity. it is generally a feature of underdeveloped economies.
Description : The pre-liberalisation era of Indian Economy was under the grip of A. Unemployment B. Under-employment C. Fiscal Deficit D. Unfavorable and alarming balance of payment
Last Answer : D. Unfavorable and alarming balance of payment
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
Description : What monetary policy strategy of the federal reserve do these headlines reflect?
Last Answer : Encouraging business growth by putting more money into circulation
Description : The monetary policy is India is formulated by - (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India
Last Answer : (3) Reserve Bank of India Explanation: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.
Description : The monetary policy is India is formulated by (1) Central Government (2) Industrial Financial Corporation of India (3) Reserve Bank of India (4) Industrial Development Bank of India
Last Answer : Reserve Bank of India
Description : Debt financing is a cheaper source of finance because of A. Time value of Money B. Rate of Interest C. Tax deductibility of Interest D. Dividends not payable to lenders.
Last Answer : C. Tax deductibility of Interest
Description : Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation A. Retained earning the only source of financing B. Finite Life of the firm C. Taxes do not exist D. Constant rate of return on firms investment.
Last Answer : B. Finite Life of the firm
Description : Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return
Last Answer : B. Benefit cost ratio
Description : Custom duty is an instrument of - (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy
Last Answer : (2) Foreign Trade Policy Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported.
Description : Custom duty is an instrument of (1) Monetary Policy (2) Foreign Trade Policy (3) Industrial Policy (4) Fiscal Policy
Last Answer : Foreign Trade Policy
Description : Which among these can be condition for the success of privatisation? A. Alternative institutional arrangements B. Barriers to enter the market C. Measurability of performance D. All of the above
Last Answer : B. Barriers to enter the market
Description : The main objective of International Monetary Fund (IMF) was to A. Promote International trade B. Help economically backward countries C. Maintain stable exchange rates D. Promote international liquidity
Last Answer : Help economically backward countries
Description : Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is a) Capital & transferred to capital ... L a/c c) Capital & transferred to P & L a/c d) Revenue & transferred to general reserve
Last Answer : b) Revenue & transferred to P & L a/c
Description : Liabilities (not accumulated profits) of a company include— A. General reserve B. Pension fund C. Dividend equalisation fund. D. Retain earning
Last Answer : B. Pension fund
Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : C. Goodwill or capital reserve
Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above
Last Answer : A. General reserve
Description : The profit on the reissue of forfeited share are transferred to A. Capital A/ c B. Capital Reserve C. Profit & Loss A/c D. General Issues
Last Answer : B. Capital Reserve
Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.
Last Answer : (C) Realisation A/c
Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account
Last Answer : (A) Preference shareholders Account
Description : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R
Last Answer : (A) Goodwill Rs. 8,777
Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these
Last Answer : (C) Purchase consideration
Description : If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. (A)Form of Merger (B)Form of purchase (C)Net assets method (D)Consideration method
Last Answer : (B)Form of purchase
Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure
Last Answer : (D)Miscellaneous expenditure
Description : Which of the following statement is correct? (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only (B)The amount of Goodwill or ... face value of shares of purchasing company will be taken in to account while calculating purchase consideration.
Last Answer : (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only
Description : Premium on issue of shares can be used for -----------. A. distribution of dividend B. writing of f capital losses C. transferring to general reserve D. paying fees to directors
Last Answer : B. writing of
Description : Gresham's law is related to - (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing
Last Answer : (3) Circulation of money Explanation: Gresham's law is an observation in economics that "bad money drives out good." More exactly, if coins containing metal of different value have the same value as ... 1558 prompted the economist H.D. Macleod to suggest the term Gresham's law in the 19th century.
Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.
Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above
Last Answer : a) Price rise
Description : Deficit financing implies : A. printing new currency notes B. public revenue in excess of public expenditure C. public expenditure in excess of public revenue D. replacing new currency with worn out currency
Last Answer : C. public expenditure in excess of public revenue
Description : Deficit financing means (a) Financing budgetary deficit by borrowing (b) Financing budgetary deficit by printing money ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : Which of these is one of the causes of inflation? (a) Increase in public expenditure ; (b) Deficit financing ; (c) Increase in administrative prices (d) All the three
Last Answer : (d) All the three
Description : 1. What is deficit financing? 2. Which snake is not poisonus? 3. Which State has no Panchayati Raj Institution at all? 4. Where is the Main hunting ground for blue whales located? 5. ... blood calcium and phosphate ? 19. Which State does not cultivate wheat? 20. Who wrote the Kalpasutra ?
Last Answer : Answer : 1. Spending in excess of revenue 2. Pythen 3. Nagaland 4. Arctic Ocean 5. Red Fort, Delhi 6. Parallel to the axis 7. 1970 8. Seafarer 9. Atlantic Ocean 10. Acharya ... . Dharma Chakara Pravartana Sutra16. Income 17. Chikmagalur district 18. Parathyroid hormone 19. Tamil Nadu 20. Bhadrabahu
Description : 1. What will be best colours for a Sun umbrella? 2. What is deficit financing? 3. Which is the official language of East African Development Bank? 4. In which State are Namchik-Namphuk ... hours. Howmuch time does Each 15° longitude represent? 20. Which dynasty's founder was an elected king?
Last Answer : Answer : 1. White on top and black on inside 2. Spending in excess of revenue 3. French 4. Arunachal Pradesh 5. Akbar 6. Large intestine 7. Public Accounts Committee 8. 5 9. Jodhpur 10. Atharva Veda ... of Cancer 15. Upagupta 16. Concave mirror 17. Pratibha Ray 18. Arun Shourie 19. One hour 20. Pala