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 : Repo Market means (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument (b) A money market ... instrument which helps in collateral short term borrowing through sale and purchase operation in debt instrument
Last Answer : (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument
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 : What is the implication of the Central Government granting "Special Status" to a State? (1) Substantially large percentage of the central assistance will be as grantsin-aid (2) The extent of loan as a ... account budgetary deficit will be bridged by the Central Government (4) Both (1) and (2) above
Last Answer : (4) Both (1) and (2) above Explanation: The Special category states category is meant for a specific category such as a hilly terrain and geographically difficult area where supply of public services is ... -special ones get 70 per cent of the resources as loan and remaining 30 per cent as grant.
Description : When there is a difference between all receipts and expenditure of the Govt. of India, both capital and revenue it is called _______ A. Income Deficit B. Fiscal Deficit C. Budgetary Deficit D. None of the Above
Last Answer : C. Budgetary Deficit Explanation: A budget deficit occurs whenever a government spends more than it makes, which is nearly every year.Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.
Description : When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem
Last Answer : B. Budgetary Deficit Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government ... leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Description : If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then (a) It is a case of BoP surplus ; (b) It is a case of BoP surplus where the official reserve account is in surplus; (c) It is a case of BoP deficit ; (d) It is case of BoP disequilibrium
Last Answer : (c) It is a case of BoP deficit ;
Description : How does a commercial bank create money (a) By printing money ; (b) By lending a part of its deposits ; (c) By issuing ATM cards (d) Accepting deposits
Last Answer : (b) By lending a part of its deposits ;
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 : Gresham’s law is related to (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing
Last Answer : Circulation of money
Description : Cash flow from financing activities include payment of interest on borrowing and___ to share holders a) Dividend b) Interest c) Bonus d) Bonus shares
Last Answer : a) Dividend
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 : 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 : 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 : 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 : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above
Last Answer : a) Price rise
Description : Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation
Last Answer : A. Deficit financing
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 : 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
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 : Debt Servicing
Description : Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : inflation
Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : fiscal policy
Description : Which of these is not a function of money? (a) Means of exchange ; (b) Store value ; (c) Power indicator ; (d) Measurement of value
Last Answer : (c) Power indicator ;
Description : Scarcity of resources means (a) Limited resources ; (b) Non – esxistence of resources ; (c) Both ; (d) None
Last Answer : (a) Limited resources ;
Description : Which of these is/are the feature of an underdeveloped economy? (a) Greater inequalities ; (b) High incidence of unemployment ; (c) Orthodox means of production ; (d) All the three
Description : Reverse Repo transaction means (a) Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date (b) Sale or purchase of securities by the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate
Last Answer : (b) Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date
Description : Repo transaction means (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. (b) Sale of securities by the holder to the ... of securities by the holder to the investor with the agreement to purchase them at market driven rate.
Last Answer : (a) Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date.
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 : The supply of goods means …………… (a) Quantity offered for sale at a given price and time ; (b) Quantity produced by the manufacturer ; (c) Quantity available with the supplier (d) Consumers disposal income
Last Answer : (a) Quantity offered for sale at a given price and time ;
Description : A supply curve parallel to X axis means the product supply is (a) Limited ; (b) Unlimited ; (c) Not available ; (d) None
Last Answer : ; (b) Unlimited ;
Description : Disguised unemployment means (a) Unemployment in agriculture ; (b) Unemployment due to recession ;(c) Unemployment due to downturn in business activity ; (d) Marginal Productivity of Labor (MPL) is zero.
Last Answer : ;(c) Unemployment due to downturn in business activity ;
Description : Economic efficiency means (a) Production of goods of mass consumption at lower cost; (b) Production of goods and services for those who have purchasing power; (c) Getting greatest satisfaction from available resources ; (d) Full employment of working force
Last Answer : (c) Getting greatest satisfaction from available resources
Description : The term “ Micro” is derived from the …….word which means…….. (a) Latin, small ; (b) Greek, small ; (c) English, tiny ; (d) Roman, small
Last Answer : ; (b) Greek, small
Description : Capital in economics means (a) Factor of production ; (b) Fund brought in by the entrepreneur; (c) Investment in shares, bank deposits ; (d) All the above
Last Answer : (a) Factor of production ;
Description : Cetris Paribus means (a) Holding demand constant ; (b) Holding supply constant ; (c) Price being constant; (d) Other things being constant
Last Answer : (d) Other things being constant
Description : In economic theory the term “means” refers to (a) Resources ; (b) Arithmetic mean ; (c) A characteristic ; (d) None
Last Answer : (a) Resources ;
Description : How much of the stimulus package will be from a printing of new dollars put into circulation? and how much of the package will be from other forms of financing not involving the printing of new dollars?
Last Answer : None.
Description : If RBI sucks excess money into circulation this will effect (a) M1 ; (b) M2 ; (c) Both ; (d) None
Last Answer : ; (c) Both ;
Description : A desire culminates into demand or effective desire only when it is backed by (a) Purchasing power ; (b) Willingness of spend money ; (c) Both ; (d) None
Last Answer : (c) Both ;
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.
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 : 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 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 : If someone keeps some money for bad days, this demand for money is known by ……. motive of money (a) Speculative ; (b) Transaction ; (c) Precautionary ; (d) Store
Last Answer : (c) Precautionary ;
Description : Which of these affects the demand for money? (a) Real income ; (b) Price level ; (c) Rate of interest ; (d) All the three
Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three
Last Answer : ; (d) All or any of the above three
Description : Which of the following function does money serve when used to purchase or sell different goods and services? (a) Store of value ; (b) Medium of exchange ; (c) Standard of value ; (d) Display of power
Last Answer : (b) Medium of exchange ;
Description : Which of the following function does money serve when used to measure the prices of different goods and services? (a) Store of value ; (b) Medium of exchange ; (c) Standard of value ; (d) Display of power
Last Answer : (c) Standard of value ;
Description : Optional money is a (a) Legal tender money ; (b) Non-legal tender money ; (c) Limited legal tender money; (d) Full bodied money
Last Answer : (b) Non-legal tender money ;