10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

10. An increase in the money supply will cause interest rates to
a. rise
b. fall
c. remain unchanged
by

1 Answer

Answer :

b. fall
by

Related questions

10. “Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Last Answer : (3) remain unchanged Explanation: Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue ... effects on a country's international trade by alluring traders. But, internal prices remain unaffected.

Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above

Last Answer :  remain unchanged

“Crowding out” means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government budget deficit raises interest rates and causes investment spending to fall d. a government budget deficit raises American exports and lowers American imports

Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports

Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall

If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually A. increase in value B. remain unchanged C. decrease in value. D. be returned to corporation.

Description : If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually A. increase in value B. remain unchanged C. decrease in value. D. be returned to corporation.

Last Answer : C. decrease in value.

Tea kept in a thermos flask is vigorously shaken. If the tea is considered as a system, then its temperature will (A) Increase (B) Decrease (C) Remain unchanged (D) First fall and then rise

Description : Tea kept in a thermos flask is vigorously shaken. If the tea is considered as a system, then its temperature will (A) Increase (B) Decrease (C) Remain unchanged (D) First fall and then rise

Last Answer : (A) Increase

A boat carrying a number of large stones is floating in a water tank. If the stones are unloaded into the water, the level of water in the tank (a) Will remain unchanged (b) Will rise (c) Will fall (d) Will rise till half the number of stones are unloaded and then will begin to fall

Description : A boat carrying a number of large stones is floating in a water tank. If the stones are unloaded into the water, the level of water in the tank (a) Will remain unchanged (b) Will rise (c) Will fall (d) Will rise till half the number of stones are unloaded and then will begin to fall

Last Answer : Ans:(c)

When an alternator connected to the bus-bar is shut down the bus-bar voltage will (a) fall (b) rise (c) remain unchanged (d) none of the above

Description : When an alternator connected to the bus-bar is shut down the bus-bar voltage will (a) fall (b) rise (c) remain unchanged (d) none of the above

Last Answer : (c) remain unchanged

Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.

Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.

Last Answer : (b) Price and quantity move in the opposite direction

At constant temperature, the thermal conductivities of gases__________ with rise in pressure.(A) Decrease(B) Increase(C) Remain unchanged(D) May increase or decrease; depends on the pressure

Description : At constant temperature, the thermal conductivities of gases__________ with rise in pressure. (A) Decrease (B) Increase (C) Remain unchanged (D) May increase or decrease; depends on the pressure

Last Answer : (A) Decrease

With an increase in size of tube, the rise or depression of liquid in the tube due to surface tension will (A) Decrease (B) Increase (C) Remain unchanged (D) Depend upon the characteristics of liquid

Description : With an increase in size of tube, the rise or depression of liquid in the tube due to surface tension will (A) Decrease (B) Increase (C) Remain unchanged (D) Depend upon the characteristics of liquid

Last Answer : Answer: Option A

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall B. U.S. imports tend to rise and exports tend to fall C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Description : Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall ... C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Last Answer : B. U.S. imports tend to rise and exports tend to fall

The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness

If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Description : If consumer’s income increases, the demand for normal product X (a) will remain unchanged (b)will necessarily increase © will necessarily decrease (d) may increase or decrease

Last Answer : (b)will necessarily increase

According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or fall in demand c) at a certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above

Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand

If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer : (1) lower cash reserve ratio Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to ... the amount of Bank deposits and they will lend more as they have more amount as their reserve.

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Description : If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should (1) lower cash reserve ratio (2) raise discount rates (3) sell government securities (4) All of the above

Last Answer :  lower cash reserve ratio

A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity

Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.

A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Description : A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity

Last Answer : decreases the price of that commodity

During periods of inflation, tax rates should - (1) increase (2) decrease (3) remain constant (4) fluctuate

Description : During periods of inflation, tax rates should - (1) increase (2) decrease (3) remain constant (4) fluctuate

Last Answer : (1) increase Explanation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. In other words, inflation means continuously ... To control inflation there should be an increase in the tax rate and increase in the interest rate.

During periods of inflation, tax rates should (1) increase (2) decrease (3) remain constant (4) fluctuate

Description : During periods of inflation, tax rates should (1) increase (2) decrease (3) remain constant (4) fluctuate

Last Answer : increase

A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Description : A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Last Answer : C. A loan asset on which interest and/or instalments remain unchanged. Explanation: A nonperforming asset (NPA) refers to a classification for loans on the books of financial institutions that are in ... is classified as nonperforming when loan payments have not been made for a period of 90 days.

Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Description : Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Last Answer : (c) reduce the rate of interest

.An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Description : .An increases in investment is most likely to be caused by (a) Lower interest rates (b) Expectations of lower national incomes © A decrease in the marginal propensity to consume (d) An increase in withdrawals.

Last Answer : (a) Lower interest rates

An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.

Description : An increase in interest rates (a) is likely to reduce savings (b) is likely to reduce external value of currency © Leads to a shift in the MEC schedule (d) Leads to a movement along MEC schedule.

Last Answer : (d) Leads to a movement along MEC schedule

An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Description : An increase in investment is caused by (a) Lower interest rates (b) Expectations of lower national income © A decrease in the marginal propensity to consume (d) An increase in withdrawals

Last Answer : (a) Lower interest rates

Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Description : Lower interest rates are likely to (a) Decrease consumption. (b) Increase cost of borrowing. © Encourage saving. (d) Increase borrowing and spending.

Last Answer : (d) Increase borrowing and spending.

The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : (4) increase in demand accompanied by a decrease in supply. Explanation: Price of a commodity is always determined by the forces of demand and supply in the market. The price at which ... equilibrium price definitely increases when there is an increase in demand combined with the decrease in supply.

The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Description : The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.

Last Answer : increase in demand accompanied by a decrease in supply.

The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy 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 over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Description : Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Last Answer : (3) Hot Money Explanation: Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a ... hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig

Description : Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig

Last Answer : (1) Low rates of interest Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. ... funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.

Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Description : Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Last Answer : Hot Money

A patient on oral anticoagulant therapy is commenced on sulfamethoxazoletrimethoprim, double-strength twice daily. One may expect to see the international normalized ratio (a) Increase (b) Decrease (c) Remain unchanged

Description : A patient on oral anticoagulant therapy is commenced on sulfamethoxazoletrimethoprim, double-strength twice daily. One may expect to see the international normalized ratio (a) Increase (b) Decrease (c) Remain unchanged

Last Answer : Ans: A

If the temperature inside a room is increased, the relative humidity will ______? (1) increase (2) decrease (3) remain unchanged (4) none of these

Description : If the temperature inside a room is increased, the relative humidity will ______? (1) increase (2) decrease (3) remain unchanged (4) none of these

Last Answer : (2) decrease Explanation: This is because temperatures in the home can be much different than the temperature outside. This is because of that important relationship between temperature and how much maximum moisture can be in the air.

Which of the following will happen to the alternator frequency if the load is removed from a turbogenerator, whose governor has a 3% speed droop? A. It will remain unchanged. B. It will decrease by approximately 3%. C. It will become variable. D. It will increase.

Description : Which of the following will happen to the alternator frequency if the load is removed from a turbogenerator, whose governor has a 3% speed droop? A. It will remain unchanged. B. It will decrease by approximately 3%. C. It will become variable. D. It will increase.

Last Answer : Answer: D

The feed to fractionating column is changed from saturated vapour to saturated liquid. If the separation and reflux ratio remains unchanged, the number of ideal stages will (A) Increase (B) Decrease (C) Remain same (D) Depend on saturated boiling point; may increase or decrease

Description : The feed to fractionating column is changed from saturated vapour to saturated liquid. If the separation and reflux ratio remains unchanged, the number of ideal stages will (A) Increase (B) Decrease (C) Remain same (D) Depend on saturated boiling point; may increase or decrease

Last Answer : (A) Increase

At constant pressure, with increase of temperature, the dew point will (A) Increase (B) Decrease (C) Remain unchanged (D) Increase/decrease; depends on the temperature

Description : At constant pressure, with increase of temperature, the dew point will (A) Increase (B) Decrease (C) Remain unchanged (D) Increase/decrease; depends on the temperature

Last Answer : (A) Increase

As the reflux ratio, in a continuous counter-current extraction is increased, the number of stages (A) Increase (B) Decrease (C) Remain unchanged

Description :  As the reflux ratio, in a continuous counter-current extraction is increased, the number of stages (A) Increase (B) Decrease (C) Remain unchanged

Last Answer : (B) Decrease

. If a single tube pass heat exchanger is converted to two pass, then for the same flow rate, the pressure drop per unit length in tube side will (A) Increase by 1.8 times (B) Decrease by 2 2 (C) Increase by 2 16 (D) Remain unchanged

Description : . If a single tube pass heat exchanger is converted to two pass, then for the same flow rate, the pressure drop per unit length in tube side will (A) Increase by 1.8 times (B) Decrease by 2 2 (C) Increase by 2 16 (D) Remain unchanged

Last Answer : (C) Increase by 2 16

In a co-current double pipe heat exchanger used for condensing saturated steam over the inner tube, if the entrance and exit conditions of the coolant are interchanged, then the rate of condensation will (A) Increase (B) Decrease (C) Remain unchanged (D) Either increase or decrease; depends on the coolant flow rate

Description : In a co-current double pipe heat exchanger used for condensing saturated steam over the inner tube, if the entrance and exit conditions of the coolant are interchanged, then the rate of condensation ... Decrease (C) Remain unchanged (D) Either increase or decrease; depends on the coolant flow rate

Last Answer : (C) Remain unchanged

If the spring mass system with m and spring stiffness k is taken to very high altitude, the natural frequency of longitudinal vibrations * 1 point (A) increases (B) decreases (C) remain unchanged (D) may increase or decrease depending upon the value of the mass

Description : If the spring mass system with m and spring stiffness k is taken to very high altitude, the natural frequency of longitudinal vibrations * 1 point (A) increases (B) decreases (C) remain unchanged (D) may increase or decrease depending upon the value of the mass

Last Answer : (C) remain unchanged

If the spring mass system with m and spring stiffness k is taken to very high altitude , the natural frequency of longitudinal vibrations A) Increases B) Decreases C) Remain unchanged D) May be increase or decrease depending upon the value of the mass

Description : If the spring mass system with m and spring stiffness k is taken to very high altitude , the natural frequency of longitudinal vibrations A) Increases B) Decreases C) Remain unchanged D) May be increase or decrease depending upon the value of the mass

Last Answer : C) Remain unchanged

With increase in calorific value of fuels, their adiabatic flame temperatures (A) Increase (B) Decrease (C) Remain unchanged (D) May increase or decrease; depends on the quantity of products of combustion

Description : With increase in calorific value of fuels, their adiabatic flame temperatures (A) Increase (B) Decrease (C) Remain unchanged (D) May increase or decrease; depends on the quantity of products of combustion

Last Answer : (D) May increase or decrease; depends on the quantity of products of combustion

Friction factor for a hydraulically smooth pipe at NRe = 2100 is f1 . If the pipe is further smoothened (i.e., roughness is reduced), the friction factor at the same value of NRe , will (A) Increase (B) Decrease (C) Remain unchanged (D) Increase or decrease depending on the pipe material

Description : Friction factor for a hydraulically smooth pipe at NRe = 2100 is f1 . If the pipe is further smoothened (i.e., roughness is reduced), the friction factor at the same value of NRe , will (A) Increase (B) Decrease (C) Remain unchanged (D) Increase or decrease depending on the pipe material

Last Answer : (A) Increase

Two fluids are flowing through two similar pipes of the same diameter. The Reynold's number is same. For the same flow rate if the viscosity of a fluid is reduced to half the value of the first fluid, the pressure drop will (A) Increase (B) Decrease (C) Remain unchanged (D) Data insufficient to predict relative pressure drop

Description : Two fluids are flowing through two similar pipes of the same diameter. The Reynold's number is same. For the same flow rate if the viscosity of a fluid is reduced to half the value of the ... (A) Increase (B) Decrease (C) Remain unchanged (D) Data insufficient to predict relative pressure drop

Last Answer : (B) Decrease

An isothermal irreversible reaction is being carried out in an ideal tubular flow reactor. The conversion in this case will __________ with decrease in space time. (A) Increase (B) Increase exponentially (C) Decrease (D) Remain unchanged

Description : An isothermal irreversible reaction is being carried out in an ideal tubular flow reactor. The conversion in this case will __________ with decrease in space time. (A) Increase (B) Increase exponentially (C) Decrease (D) Remain unchanged

Last Answer : (C) Decrease

The melting points of aldehydes and ketones tend to : (a) decrease with increasing molecular weight. (b) increase with increasing molecular weight. (c) remain unchanged with increasing molecular weight. (d) be unpredictable due to resonance

Description : The melting points of aldehydes and ketones tend to : (a) decrease with increasing molecular weight. (b) increase with increasing molecular weight. (c) remain unchanged with increasing molecular weight. (d) be unpredictable due to resonance

Last Answer : increase with increasing molecular weight.

In a Rankine cycle, with the maximum steam temperature being fixed from metallurgical considerations, as the boiler pressure increases (a) The condenser load will increase [IES-1997] (b) The quality of turbine exhaust will decrease (c) The quality of turbine exhaust will increase (d) The quality of turbine exhaust will remain unchanged

Description : In a Rankine cycle, with the maximum steam temperature being fixed from metallurgical considerations, as the boiler pressure increases (a) The condenser load will increase [IES-1997] (b) The ... The quality of turbine exhaust will increase (d) The quality of turbine exhaust will remain unchanged

Last Answer : (b) The quality of turbine exhaust will decrease 

The ideal efficiency of a Brayton cycle with regeneration, with increase in pressure ratio will  (a) increase  (b) decrease  (c) remain unchanged  (d) increase/decrease depending on ap-plication  (e) unpredictable. “

Description : The ideal efficiency of a Brayton cycle with regeneration, with increase in pressure ratio will  (a) increase  (b) decrease  (c) remain unchanged  (d) increase/decrease depending on ap-plication  (e) unpredictable. “

Last Answer : Answer : b