The money supply has been increasing at an annual rate of 10%. What is the problem in the economy

The money supply has been increasing at an annual rate of 10%. What is the problem in the economy
by

1 Answer

Answer :

The governement keeps printing more money with nothing to back it up. Can you see the problem here?
by

Related questions

The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Description : The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is (A) 15% (B) 10% (C) 1.5% (D) 150%

Last Answer : (C) 1.5%

If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent. (A) 10 (B) 20 (C) > 20 (D) < 20

Description : If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent. (A) 10 (B) 20 (C) > 20 (D) < 20

Last Answer : (C) > 20

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196

Description : A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years ... method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196

Last Answer : D) 60,196

Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost (C) Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Description : Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate ... chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Last Answer : (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time. b. pay within the discount period and recognize a savings. c. pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill. d. recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Description : If a company is given credit terms of 2/10, n/30, it should a. hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during ... desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.

Last Answer : b. pay within the discount period and recognize a savings.

With reference to factors affecting the rate of photosynthesis, which of the following statements is not correct? (a) Increasing atmospheric CO2 concentration up to 0.05% can enhance CO2 fixation rate.(b) C3 plants respond to higher temperature with enhanced photosynthesis while C4 plants have much lower temperature optimum. (c) Tomato is a greenhouse crop which can be grown in CO2-enriched atmosphere for higher yield. (d) Light saturation for CO2 fixation occurs at 10% of full sunlight.

Description : With reference to factors affecting the rate of photosynthesis, which of the following statements is not correct? (a) Increasing atmospheric CO2 concentration up to 0.05% can enhance CO2 fixation rate. ( ... for higher yield. (d) Light saturation for CO2 fixation occurs at 10% of full sunlight.

Last Answer : (b) C3 plants respond to higher temperature with enhanced photosynthesis while C4 plants have much lower temperature optimum

With reference to factors affecting the rate of photosynthesis, which of the following statements is not correct ? (1) Increasing atmospheric CO 2 concentration up to 0.05% can enhance CO 2 fixation rate (2) C 3 plants respond to higher temperatures with enhanced photosynthesis while C 4 plants have much lower temperature optimum (3) Tomato is a greenhouse crop which can be grown in CO 2 - enriched atmosphere for higher yield (4) Light saturation for CO 2 fixation occurs at 10% of full sunlight

Description : With reference to factors affecting the rate of photosynthesis, which of the following statements is not correct ? (1) Increasing atmospheric CO 2 concentration up to 0.05% can enhance CO 2 fixation ... for higher yield (4) Light saturation for CO 2 fixation occurs at 10% of full sunlight

Last Answer : (2) C 3 plants respond to higher temperatures with enhanced photosynthesis while C 4 plants have much lower temperature optimum

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

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.

In addition to three Central problem of economy, the additional problem(s) raised by the Modern economists is / are (a) Are the resources fully utilized or not ; (b) How efficient is the production and distribution system; (c) Whether the capacity to produce or grow is increasing or is static ; (d) All the three

Description : In addition to three Central problem of economy, the additional problem(s) raised by the Modern economists is / are (a) Are the resources fully utilized or not ; (b) How efficient is the production and ... (c) Whether the capacity to produce or grow is increasing or is static ; (d) All the three

Last Answer : (d) All the three

Dry weather flow is: A. Average daily rate of flow B. Average monthly rate of flow C. Average annual rate of flow D. Water supply allowance per capita

Description : Dry weather flow is: A. Average daily rate of flow B. Average monthly rate of flow C. Average annual rate of flow D. Water supply allowance per capita

Last Answer : ANS: D

Is there a relatively safe way to have a 10% return on invested money in this economy?

Description : Is there a relatively safe way to have a 10% return on invested money in this economy?

Last Answer : eden2eve: I suggest an investment in pine-trees. They take about 45 years to mature but the return is pretty close to 10% over the life of the investment and they are relatively safe. You can lose ... to develop a good relationship with a forester to show you the ropes, mark trees for thinning, etc.

8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000

Description : 8. If the monetary base is increased by $1,000 and the reserve requirement is 10% (1/10), by how much will the money supply be increased? a. $100 b. $1,000 c. $5,000 d. $10,000

Last Answer : d. $10,000

The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

Description : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

Last Answer : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.

Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual inc

Description : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual inc

Last Answer : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find ... investment, also find the number of shares he bought.

If present A.D.T. is 5000 vehicles and annual increase is 10%, the average future flow after 5 years will be (A) 6050 vehicles (B) 7050 vehicles (C) 8050 vehicles (D) 9050 vehicles

Description : If present A.D.T. is 5000 vehicles and annual increase is 10%, the average future flow after 5 years will be (A) 6050 vehicles (B) 7050 vehicles (C) 8050 vehicles (D) 9050 vehicles

Last Answer : Answer: Option C

From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10 Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk. (a) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Description : From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10  Carrying cost per unit per annum: = Rs. 10  Purchase price per unit = Rs. ... ) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Last Answer : (d) Rs. 2,990

Hydraulic intensifier is used for increasing the (A) Rate of velocity of liquid supply (B) Rate of flow through delivery pipeline of a pump (C) Intensity of pressure of the liquid (D) Momentum rate through delivery pipe

Description : Hydraulic intensifier is used for increasing the (A) Rate of velocity of liquid supply (B) Rate of flow through delivery pipeline of a pump (C) Intensity of pressure of the liquid (D) Momentum rate through delivery pipe

Last Answer : (C) Intensity of pressure of the liquid

the inflation rate over the last year has been less than 1%, what is the problem in the economy

Description : the inflation rate over the last year has been less than 1%, what is the problem in the economy

Last Answer : Vote republican. The dems don't care about inflation or lack of jobs.

The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.

The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.

The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : makes the monetary policies less effective

In the manufacture of H2SO4 , vanadium catalyst as compared to platinum catalyst (A) Gives higher conversion efficiency (B) Has a longer life and is not poisoned by arsenic (C) Handles lower SO2 content gas (7 -10% SO2 ), thus increasing the capital cost of the plant (D) All (A), (B) and (C)

Description : In the manufacture of H2SO4 , vanadium catalyst as compared to platinum catalyst (A) Gives higher conversion efficiency (B) Has a longer life and is not poisoned by arsenic (C) Handles lower SO2 content gas (7 -10% SO2 ), thus increasing the capital cost of the plant (D) All (A), (B) and (C)

Last Answer : (D) All (A), (B) and (C)

Pick up the correct statement from the following: (A) Adding 5% to 6% of moisture content by weight, increases the volume of dry sand from 18% to 38% (B) The bulking of fine sand is more than that of coarse sand (C) If the percentage content of moisture exceeds 10%, increase in bulk of sand starts increasing (D) All the above

Description : Pick up the correct statement from the following: (A) Adding 5% to 6% of moisture content by weight, increases the volume of dry sand from 18% to 38% (B) The bulking of fine sand is ... the percentage content of moisture exceeds 10%, increase in bulk of sand starts increasing (D) All the above

Last Answer : Answer: Option D

Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.

Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Last Answer : decreasing money supply

Money supply in Indian national economy is regulated by

Description : Money supply in Indian national economy is regulated by

Last Answer : Ans. RBI

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.

When a segment’s product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose? a. 5% b. 10% c. 15% d. 20% e. 0%

Description : When a segment’s product supply exceeds demand, how much appeal, to the customer, will a product priced $1 above or below the segment price range lose? a. 5% b. 10% c. 15% d. 20% e. 0%

Last Answer : d. 20%

What happens to a product priced at $1 above or below the segment guideline when a segment’s product supply outstrips demand? a. It loses 25% of its appeal. b. It loses 10% of its appeal. c. It loses 20% of its appeal. d. It loses 15% of its appeal. e. None of the above.

Description : What happens to a product priced at $1 above or below the segment guideline when a segment’s product supply outstrips demand? a. It loses 25% of its appeal. b. It loses 10% of its appeal. c. It loses 20% of its appeal. d. It loses 15% of its appeal. e. None of the above.

Last Answer : c. It loses 20% of its appeal.

When the supply voltage to an induction motor is reduced by 10%, the maximum torque will decrease by

Description : When the supply voltage to an induction motor is reduced by 10%, the maximum torque will decrease by about  A) 5% B) 10% C) 20% D) 40%

Last Answer : When the supply voltage to an induction motor is reduced by 10%, the maximum torque will decrease by about 20%

Reduction in supply voltage by 10% will change the torque of an induction motor by

Description : Reduction in supply voltage by 10% will change the torque of an induction motor by   (a) 38% (b) 19% (c) 9.5% (d) No change 

Last Answer : Answer is (b)

the natural rate of unemployment is considered to be 4.0%, what is the problem in the economy

Description : the natural rate of unemployment is considered to be 4.0%, what is the problem in the economy

Last Answer : Simple answer. Obama and his lack of interest in creating jobs for the blue collar worker. Good luck with your homework.

A sum was invested for 4 yr at a certain rate of simple interest. If it had been invested at 2% more annual rate of interest, then Rs. 64 more would have been obtained. What is the sum? (a) Rs.600 (b) Rs.700 (c) Rs.800 (d) Rs.900

Description : A sum was invested for 4 yr at a certain rate of simple interest. If it had been invested at 2% more annual rate of interest, then Rs. 64 more would have been obtained. What is the sum? (a) Rs.600 (b) Rs.700 (c) Rs.800 (d) Rs.900

Last Answer : (c) Rs.800

Are car insurance costs increasing or decreasing in this economy?

Description : Are car insurance costs increasing or decreasing in this economy?

Last Answer : Car insurance is increasing at a rate of 1.4% as of 2009.

The present demographic transition of India is indicative of: [IAS 2004] (a) High population growth potential but low actual growth (b) High population growth potential and high actual growth (c) Partial industrialised economy (d) Typically increasing urbanization

Description : The present demographic transition of India is indicative of: [IAS 2004] (a) High population growth potential but low actual growth (b) High population growth potential and high actual growth (c) Partial industrialised economy (d) Typically increasing urbanization

Last Answer : Ans: (d)

State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.

State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy

Last Answer : the extent of inflation in the prices of consumer goods

Under increasing returns the supply curve is - (1) positively sloped from is to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis

Description : Under increasing returns the supply curve is - (1) positively sloped from is to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis

Last Answer : (1) positively sloped from is to right Explanation: Supply curve, in economics, is a graphic representation of the relationship between product price and quantity of product that a seller is willing and ... i.e as the price of a commodity increases in the market, the amount supplied increases).

How can a dairy farmer reduce fodder consumption by his cattle and also increase milk production? (1) By increasing the supply of feed concentrate (2) By stall feeding (3) By allowing the cattle to graze in the fields (4) By administering hormones

Description : How can a dairy farmer reduce fodder consumption by his cattle and also increase milk production? (1) By increasing the supply of feed concentrate (2) By stall feeding (3) By allowing the cattle to graze in the fields (4) By administering hormones

Last Answer : (3) By allowing the cattle to graze in the fields Explanation: Like dry fodder is used to fill the empty space in the stomach of cattle, green fodder can also achieve the same result. Fat ... to milk. Green fodder can nicely substitute dry fodder and at the same time keeping the cattle satisfied.

A shift outward in supply curve will result in equilibrium price (a) increasing and quantity increasing ; (b) increasing and quantity decreasing ; (c) decreasing and quantity increasing ; (d) decreasing and quantity decreasing

Description : A shift outward in supply curve will result in equilibrium price (a) increasing and quantity increasing ; (b) increasing and quantity decreasing ; (c) decreasing and quantity increasing ; (d) decreasing and quantity decreasing

Last Answer : (c) decreasing and quantity increasing ;

Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line

Description : Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line 

Last Answer : (b) Upward sloping line; 

Any point beyond PPF curve can be attained by (a) Increasing supply of factor inputs ; (b) Technological innovation ; (c) Both ; (d) None

Description : Any point beyond PPF curve can be attained by (a) Increasing supply of factor inputs ; (b) Technological innovation ; (c) Both ; (d) None

Last Answer : ; (c) Both ;

Under increasing returns the supply curve is (1) positively sloped from left to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis

Description : Under increasing returns the supply curve is (1) positively sloped from left to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis

Last Answer : positively sloped from left to right

If things become more automated how do you supply jobs? What are the consequences to the economy and social aspects?

Description : If things become more automated how do you supply jobs? What are the consequences to the economy and social aspects?

Last Answer : answer:This question was really a hot topic when I was young. I'm in my 40's. Robotics were being implemented in many factories. I went to the Kohler factory last year, they make kitchen and bath ... intensive jobs that wear on the body. All that is good to some extent, but also has its downside.

The supply of labour in the economy depends on - (1) Population (2) National income (3) Per capita income (4) Natural resources

Description : The supply of labour in the economy depends on - (1) Population (2) National income (3) Per capita income (4) Natural resources

Last Answer : (1) Population Explanation: The supply curve for labor depends on variables such as population, wage rates, etc. in developing countries, the vast population base explains the relatively lower wage ... accessibility to labour supply. This is just the opposite in the case of developed countries.

The supply-side economics lays greater emphasis on - (1) Producer (2) Global economy (3) Consumer (4) Middle Man

Description : The supply-side economics lays greater emphasis on - (1) Producer (2) Global economy (3) Consumer (4) Middle Man

Last Answer : (1) Producer Explanation: Supply-side economics emphasizes economic growth achieved by tax and fiscal policy that creates incentives to produce goods and service. It lays great emphasis on entrepreneurs, investors and producers who are treated the prime movers on which the economy depends.

In a Capitalistic Economy, the prices are determined by : (1) Demand and Supply (2) Government Authorities (3) Buyers in the Market (4) Sellers in the Market

Description : In a Capitalistic Economy, the prices are determined by : (1) Demand and Supply (2) Government Authorities (3) Buyers in the Market (4) Sellers in the Market

Last Answer : (1) Demand and Supply Explanation: Capitalism generally refers to economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the ... and services lead to higher prices and lower demand for certain goods lead to lower prices.

Inflation is caused by certain factors 1. Those causing an increase in demand 2. Those a short, fall in supply 3. Structural rigidities in the economy 4. All of these 5. None of these

Description : Inflation is caused by certain factors 1. Those causing an increase in demand 2. Those a short, fall in supply 3. Structural rigidities in the economy 4. All of these 5. None of these

Last Answer : Those causing an increase in demand

In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve

Description : In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve

Last Answer : (a) Point of interaction of aggregate demand and aggregate supply curve;

The supply-side economics lays greater emphasis on (1) Producer (2) Global economy (3) Consumer (4) Middle Man

Description : The supply-side economics lays greater emphasis on (1) Producer (2) Global economy (3) Consumer (4) Middle Man

Last Answer : Producer