S.Y B.COM
SEMESTER - 4
MID SEMESTER EXAMINATION
MACRO ECONOMICS ISSUES & POLICIES
(MEIP)
MCQS - 2018
(1) Which method of credit control refers to the sale and purchase of a securities, bills and bonds of a government as well as private Financial Institution by central bank?
(A) Bank rete
(B) Discount rate
(C) Open market operation
(D) Variable reserve ratio
(2) According which approach, time deposit with commercial bank is included in the measurement of money supply.
(A) Chicago
(B) Conventional
(C) Gurley - Shaw
(D) Central Bank
(3) Minimum down payment and maximum period of a repayment are to devices used in _______ method of selective credit control.
(A) Moral suasion
(B) Rationing of credit
(C) Direct action
(D) Regulation of consumer credit
(4) Which among the following doesn't come under the merit of regulation of margin requirement?
(A) It is a simple and easy to administer
(B) It is a discriminatory between borrowed and lender
(C) It is equally applicable to commercial bank and NBFI
(D) It is very effective anti - inflationary device.
(5) What is the currency deposit ratio?
(A) Ratio of money held by public in bank deposits to that of money held by public in currency
(B) Ratio of money held by the public in currency to that of money held in bank deposits.
(C) Ratio of money held in demand drafts to that of money held in treasury bonds.
(D) None of the above
(6) Credit creation capacity of commercial banks
(A) Reduce the supply of money
(B) Increase supply for money
(C) Does not make any change in money supply
(D) It reduces liabilities of banks
(7) The success of commercial banks portfolio management depends on
(A) Maintenance case reserve ratio
(B) Lending loans and advances, bills discounted and investment on government securities
(C) Ability to get money at call and short notice
(D) All of the above
(8) Bank rate is
(A) Bank reserves
(B) Rate of interest of commercial
(C) Market rate of interest
(D) The rate at which the central bank of a country is willing to discount bills
(9) An index number is used to:
(A) To measure changes in the quantity
(B) To measure changes in a demand
(C) To measure changes in the price
(D) To measure changes in the value of a variable over time.
(10) The term open market operation precisely means.
(A) Buying other bank instruments
(B) Purchase or sale by a central bank of any kind of paper in which it deals
(C) Purchase of bills
(D) Sale of securities
(11) High Power money means which of following ?
(A) Issued by commercial bank
(B) High value of money
(C) Higher currency notes
(D) Backed by reserve and value guaranteed by the government
(I) Deposit multiplier is the inverse of The reserve requirement ratio
(II) Money supplied by banks is called credit money.
(A) II Only
(B) I only
(C) Both
(C) None
(13) According to whom the central bank is considered as the 'lender of the last resort.'
(A) Colin clark
(B) Hawtrey
(C) Samuelson
(D) Vera smith
(14) In the face of inflation, which monetary measure of price control would the central bank adopt?
(A) Buy government to securities
(B) Increase in CRR
(C) Decrease bank rate
(D) Decrease SLR
(15) Which of the following is found most effective in calculating price index number?
(A) Arithmetic mean
(B) Harmonic mean
(C) Time series
(D) Index numbers
(16) The amount of total derivative deposits created by bank does not dependent on
(A) Spending habits of a people
(B) Demand for bank loans
(C) Primary deposits
(D) Efficiency of banking systems
(17) The sale of securities by Central Bank leads to
(A) Expansion of credit
(B) Contraction of credit
(C) No change in money supply
(D) Inflation in the economy
(18) Increase in bank rate leads to
(A) No change in money supply
(B) Fall in rate of interest
(C) Borrowing will be discouraged
(D) Borrowing will be encouraged
(19) In the terminology of economics and money demand, the terms M1 and M2 are also known as:
(A) Broad money
(B) Short money
(C) Long money
(D) Narrow money
(20) If a commercial bank has Rs. 100cr as deposit and 10% is the required reserve ratio, then it will create credit to the extent of Rs.900cr. when the central bank raises the required reserve ratio to 20% then banks power to create credit will be.......
(A) 800 Cr
(B) 1000 Cr
(C) 400 Cr
(D) 1200 Cr
(21) Stagflation means
(A) Decrease in inflation
(B) Increase in inflation
(C) Stagnant economy and a persisting inflation
(D) Non inflationary economy with Stagnation
(22) The ratio of a new price to the base year price is called the:
(A) Price Absolute
(B) Price decrease
(C) Price increase
(D) Price relative
(23) Number of times a unit of a money changes hands in the courses of a year is called _______
(A) Value of money
(B) Velocity of money
(C) Purchasing power of money
(D) Supply of money
(24) When Mr. "A" and "B" exchange under barter system where double co - incidence exist.
(A) A agrees the product with B exchanges and B agrees the product which "A" exchanges.
(B) Both "A" and "B" refuses to each other product
(C) The market for their products determine their exchange
(D) "A" agrees to accept "B" s product but "A" not ready to give his product
(25) "Anything" which is widely accepted in payment for goods or in discharge of other kind of business obligation", this definition of money is given by.......
(A) D.H. Roberston
(B) Walker
(C) Milton Friedman
(D) G.D.H. cole
(26) Which of these is the high power money?
(A) H = R + DD
(B) H = C + DD
(C) H = C + R
(D) H = C + DD + OD
(27) Consider the following statement and identify the correct ones:
(I) Money decelerates the pace of production & growth
(II) Money works as a store of a value
(A) II Only
(B) I Only
(C) Both
(D) None
(28) Asset portfolio management of commercial bank have the objectives.
(A) Take care of both the liquidity and profitability
(B) Take care of a liquidity
(C) Maximising profitability
(D) Maintenance of its liabilities
(29) Value of money is calculated with the help of ______
(A) Weights of representative goods
(B) Price of current year
(C) Prive index number
(D) Price of base year
(30) RBI issues currency notes of rupees - 10, 20, 50, 100, & 2000 denominations and calls it _______
(A) Narrow money
(B) Reserve money
(C) Credit money
(D) All of the above
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