Description : RBI check inflation by (a) Increasing bank rate ; (b) Increasing CRR ; (c) Both ; (d) None
Last Answer : ; (c) Both ;
Description : If the country is passing through recession, the RBI would (a) Buy bonds ; (b) Reduce CRR ; (c) Ease out bank rate ; (d) All or any of the above three
Last Answer : (d) All or any of the above three
Description : Manipulation in CRR enables the RBI to ……. (a) Influence the lending ability of the commercial banks ; (b) Check unemployment growth; (c) Check poverty ; (d) Increase GDP
Last Answer : (a) Influence the lending ability of the commercial banks ;
Description : CRR is used to (a) Combat inflation ; (b) Check black money ; (c) Check tax evasion ; (d) All the three
Last Answer : (a) Combat inflation ;
Description : Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices
Last Answer : (d) Impact of shortage of wheat production on wheat prices
Description : If the supply of a product remain same with the increase in price, the possible reasons can be (a) Apprehension of further price hike ; (b) Limited production facility; (c) Commodity being a rare commodity ; (d) All the three
Last Answer : (d) All the three
Description : CRR means (a) Cash Reserve Ratio ; (b) Current rate of return ; (c) Cumulative rate of return; (d) Current rate of Rupee
Last Answer : (a) Cash Reserve Ratio ;
Description : Cost push inflation arises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in price of precious metal
Last Answer : (a) Persistent rise in factor cost ;
Description : Demand pull inflation rises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in Price of precious metal
Last Answer : ; (b) Mismatch between demand and supply of commodities
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.
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
Description : Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth
Last Answer : (c) Increase in real rate of interest ;
Description : Supply of money refers to (a) Total money held by the public ; (b) Total money held by RBI ; (c) Total money with all the commercial banks and RBI ; (d) Total money in Government account
Last Answer : (a) Total money held by the public ;
Description : Which of these measures would not reduce natural rate of unemployment? (a) Creation of more jobs ; (b) Reducing the age of superannuation (c) Hike in unemployment allowance ; (d) Employment oriented education system
Last Answer : (c) Hike in unemployment allowance ;
Description : Which of the following is not helpful in controlling money supply? (1) Free market policy (2) CRR (3) Bank Rate (4) Change in margin requirement
Last Answer : (1) Free market policy Explanation: The Central Bank of a country regulates money supply with the help of open market operations, changing the reserve requirements (CRR) and changing discount rate ( ... In India, the Reserve Bank of India has recently been resorting more to open market operations.
Description : Which of the following is not helpful in controlling money supply ? (1) Free market policy (2) CRR (3) Bank Rate (4) Change in margin requirement
Last Answer : Free market policy
Description : Equilibrium state is achieved at ………………… (a) The peak point of supply curve ; (b) The bottom point of demand curve (c) The inflation point of demand curve ; (d) The intersection of demand and supply curve
Last Answer : (d) The intersection of demand and supply curve
Description : If supply and demand both shift outward, but demand shifts outward more than supply, the equilibrium price (a) will increase and quantity will increase ; (b) will increase and quantity will decrease; (c) will decrease and quantity will decrease ; (d) will decrease and quantity will increase
Last Answer : (a) will increase and quantity will increase ;
Description : Shift in supply curve is cause by (a) Change in citrus paribus conditions ; (b) Increase in price; (c) Decrease in price ; (d) Change in consumer income
Last Answer : (a) Change in citrus paribus conditions ;
Description : Change in cost of production of the concerned goods causes (a) The demand curve to shift ; (b) The supply curve to shift ; (c) Increase in quantity demanded; (d) Decrease in quantity supplied
Last Answer : (b) The supply curve to shift ;
Description : Curvature of PPF is due to……… (a) Increase in opportunity cost ; (b) Decrease in opportunity cost ; (c) Fall in demand; (d) Fall in supply
Last Answer : (a) Increase in opportunity cost ;
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
Description : Which of these terms are/is appropriate for RBI? (a) Banker’s Bank ; (b) Banker’s to the Government ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : EXIM Bank is authorized to raise loan from (a) RBI ; (b) Government of India ; (c) International market ; (d) Trading activities
Last Answer : (d) Trading activities
Description : Which is the apex bank for agricultural credit in India? (a) RBI ; (b) SIDBI ; (c) NABARD ; (d) IDBI
Last Answer : (c) NABARD ;
Description : By increasing the 'Bank Rate', the RBI can: a) provide incentives to commercial banks to lend more to public b) provide incentives to commercial banks to lend less to public c) increase the money supply in the market d) none of the above
Last Answer : b) provide incentives to commercial banks to lend less to public Bank rate is the rate at which commercial banks can borrow money from the RBI. If the rate is higher, then taking money from RBI becomes difficult, so the banks will lend less to public. And vice-versa.
Description : Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%
Last Answer : (b) 3% ;
Description : Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%
Last Answer : (a) 12% ;
Description : If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden
Last Answer : (b) Rate of inflation ;
Description : If RBI sucks excess money into circulation this will effect (a) M1 ; (b) M2 ; (c) Both ; (d) None
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : Which of the following is near money? (a) Bill of exchange ; (b) Saving bonds ; (c) Gilt edged securities ; (d) All the three
Description : The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High ... rates of inflation (d) High inflation rates are associated with small increases in money wage rates.
Last Answer : (c) High unemployment rates are associated with low rates of inflation
Description : Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.
Description : Inflation is caused by - (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : (1) increase in money supply and decrease in production Explanation: Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of ... few goods. The increase in money supply is not matched by the equivalent production of goods.
Description : Inflation is caused by (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : increase in money supply and decrease in production
Description : Which of the following can be used for checking inflation temporarily ? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : Decrease in money supply
Description : Shift in Demand curve or change in Demand curve occurs due to (a) Increase in price ; (b) Decrease in cost of production ; (c) Change in Cetris paribus conditions ; (d) All the three
Last Answer : (c) Change in Cetris paribus conditions ;
Description : Which of these costs will increase or decrease with increase in production (a) Marginal cost ; (b) Financial costs ; (c) Fixed costs ; (d) All the three
Last Answer : (a) Marginal cost ;
Description : What is the Cash Reserve Ratio (CRR)? a) the fraction of the deposits that commercial banks lend to the customers b) the fraction of the deposits that RBI must keep with commercial banks c) the fraction of the deposits that commercial banks must keep with RBI d) none of the above
Last Answer : c) the fraction of the deposits that commercial banks must keep with RBI
Description : Exchange Control and Management is done by (a) RBI ; (b) As per Defence of India Act ; (c) SBI ; (d) IDBI
Last Answer : (a) RBI ;
Description : RBI was nationalized in (a) June 1947 ; (b) Jan. 1949 ; (c) March 1954 ; (d) April 1936
Last Answer : (b) Jan. 1949 ;
Description : Repo transactions are allowed in (a) Government securities / Treasury bills of all maturity ; (b) State Government securities (c) PSU bonds/Private corporate bonds ; (d) All the three
Description : Macroeconomics is the study of (a) Inflation ; (b) Unemployment ; (c) Growth ; (d) All of (a), (b) and (c) above.
Last Answer : ; (d) All of (a), (b) and (c) above.
Description : As a certain type of clothing becomes more fashionable, we would expect its equilibrium price (a) to decrease and quantity will remain constant ; (b) and quantity will decrease; (c) to increase and quantity to decrease ; (d) and quantity to increase
Last Answer : ; (d) and quantity to increase
Description : The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will (a) increase ; (b) decrease ; (c) decrease then increase ; (d) increase then decrease
Last Answer : (a) increase ;
Description : What will happen if a firm in perfect competitive market, increase its output by 50% (a)Total sales revenue will also increase by 50% ; (b) (b)Selling price will come down by 50%; (c)Total sales revenue will decrease by 50% ; (d)Profit will increase by 25%
Last Answer : (a)Total sales revenue will also increase by 50% ;
Description : Simultaneous increase in demand and quantity supplied will (a) Increase in equilibrium price and quantity ; (b) Decrease equilibrium price and quantity (c) Increase equilibrium price but decrease quantity ; (d) Decrease equilibrium price but increase quantity
Last Answer : (a) Increase in equilibrium price and quantity ;
Description : If there is simultaneous fall in consumers disposal income as well number of suppliers of a product in the market, the (a) Equilibrium quantity will decrease ; (b) Equilibrium price will decrease ; (c) Equilibrium price will go up ; (d) Equilibrium quantity will increase
Last Answer : (a) Equilibrium quantity will decrease ;
Description : If price of Choco bar decreases we except (a) The quantity demanded to increase ; (b) Quantity demanded to decrease; (c) Demand curve to shift left ; (d) No change in quantity demanded
Last Answer : (a) The quantity demanded to increase ;