General Economics MCQs and Notes

M

Mr. Dubey • 52.30K Points
Coach

Q 1. Which of the following is not a measure of selective credit control?

(A) Variable reserve ratio

(B) Regulation of consumer credit

(C) Regulation of margin requirements

(D) Rationing of credit

M

Mr. Dubey • 52.30K Points
Coach

Q 2. Which of the following is an anti‐deflationary monetary policy?

(A) Purchase of government securities from commercial banks and from the public

(B) Sale of government securities from commercial banks and from the public

(C) Raising the cash reserve ratio

(D) All of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 3. Open market operation influences:

(A) The reserves of commercial banks

(B) The market rate of interest

(C) Both A and B

(D) None of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 4. Bank rate refers to:

(A) Discount rate

(B) Rediscount rate

(C) Market rate

(D) None of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 5. Find the odd man out:

(A) Bank rate policy

(B) Taxation

(C) Open market operation

(D) Variable reserve ratio

M

Mr. Dubey • 52.30K Points
Coach

Q 6. Which of the following represents the major functions of the central bank?

(A) Note issuing agency

(B) Controller of credit

(C) Banker to the governmen

(D) All of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 7. Which of the following is not a function of a commercial bank:

(A) Accepting deposits

(B) Advancing loans

(C) Issuing currency

(D) Credit creation

M

Mr. Dubey • 52.30K Points
Coach

Q 8. Cost – push inflation arises due to:

(A) Rise in wages

(B) Rise in the prices of raw materials

(C) Rise in profit

(D) All of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 9. ‘Stagflation’ is a situation where the economy faces:

(A) Inflation

(B) Inflation as well as stagnation

(C) Stagnation

(D) None of the above

M

Mr. Dubey • 52.30K Points
Coach

Q 10. Inflation is a situation where

(A) Prices are falling

(B) Value of money is falling

(C) Value of money is rising

(D) All of the above