MACRO ECONOMICS ISSUES & POLICIES (MCQS)

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SEMESTER - 4

MID SEMESTER EXAMINATION

MACRO ECONOMICS ISSUES & POLICIES

(MEIP)

MCQS - 2014

(1) Give the money multiplier supply of money will depend on

(A) Excess reserves

(B) Total reserves

(C) Legal reserves

(D) None of the above

(2) If 1000 is withdrawn from a savings account, then this transaction wil

(A) Increase money supply

(B) Not change money supply

(C) Decreases money supply

(D) AIl of the above

(3) An important function of money is its quality to provide a standard for

(A) Consumer choice

(B) Satisfaction

(C) Deferred payments

(D) Marginal revenue

(4) The measure of money in terms of M4, M3, M2 and M1 are

(A) In descending order of liquiaity 

(B) Not related to liquidity

(C) Having the same liquidity

(D) In ascending order of liquidity

(5) High pawered money is made up of

(A) Other denosits of RBI

(B) Near money assets

(C) Currency with public

(D) Gold stock

(6) During inflation, the appropriate policy of the central bank win be to

(A) Increase CRR

(B) Sell government securities

(C) Increase investment

(D) Raduce taxes

(7) Bank create money out of

(A) Their total assets

(B) Their goodwill

(C) Their cash deposits

(D) Their securities

(8) Commercial banks credit creation will be equal to

(A) Actual deposit times ratio of cash reserves / 100

(B) Actual deposit times 100 / ratio of cash reserves

(C) Actual deposit + 100 / r

(D) Actual deposits - r / 100

(9) The following is an objective of monetary policy

(A) To maintain price stability

(B) To expand trade

(C) To coritrol growth

(D) Reduce welfare

(10) M1 also includes

(A) Post office savings

(B) Deposit in savings accounts

(C) Foreign exchange reserves

(D) Investment in shares

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