S.Y B.COM
SEMESTER - 4
MACRO ECONOMICS ISSUES & POLICIES
(MEIP)
MCQS - February 2017
1. Objectives of Monetary Policy does not include
A) Economic Growth
B) Price Stability
C) Full Employment
D) Credit Rationing
2. The capacity of commercial banks of create credit does not depend upon
A) Cash Reserve Ratio
B) Primary Deposit
C) Amount withdrawn to settle old credit
D) Credit rating of commercial banks
3. In the face of inflation, which monetary measure would the central bank adopt?
A) Increase in CRR
B) Decrease SLR
C) Decrease Bank Rate
D) Buy Government securities
The public deposit Rs. 15500 Crores in the saving account of a bank “X”.At the same time Rs. 500 Crores is withdrawn from bank “Y”. The CRR is 14% , SLR is 6% and the repo rate is 4%. Considering the above
information answer questions 4 to 6.
4. The value of K is
A) 5
B) 6
C) 4
D) 3
5. The total deposit created is
A) Rs. 65000 Crores
B) Rs. 75000 Crores
C) Rs. 70000 Crores
D) Rs. 60000 Crores
6. The derivative deposit created is
A) Rs. 60000 Crores
B) Rs. 55000 Crores
C) Rs. 50000 Crores
D) None of the above
7. The measure of money in terms of Ml, M3, M2 and M4 are
A) In descending order of liquidity
B) In ascending order of liquidity
C) In the same order of liquidity
D) None of the above
8. As per the third working group of the RBI,M2 consists of
A) Time liabilities of Saving deposit
B) Currency in circulation
C) Certificates of deposit
D) All of the above
9. If we divide the total deposit created by the initial deposit than we get
A) Money multiplier
B) Deposit multiplier
C) Credit multiplier
D) All of the above
Given the following data, answer questions 10 & 11
|
Goods |
Price in the current year |
Price in the base year |
Weight |
|
A |
60 |
20 |
5 |
|
B |
90 |
30 |
4 |
|
C |
120 |
40 |
3 |
|
D |
12 |
2 |
2 |
10. The PIN in the current year is
A) 343
B) 340
C) 304
D) 243
11. The value of money has fallen by
A) 69%
B) 68%
C) 64%
D) None of the above
12. The effectiveness of monetary policy depends upon
A) Size of themonetized sector
B) Existence of NBFI
C) The time lag
D) All of the above
13. The monetary policy can be used to control
A) Real variables
B) Monetary Variables
C) Growth rate
D) BOP deficit
14. As money acts as an intermediate in the process of exchange, it is called
A) Medium of exchange
B) Exchange value
C) Use value
D) Value formoney
15. An index is used to measure the changes
A) In the value of a variable over time
B) In the quantity
C) In the price
D) In the quantity demanded
16. The central bank can increase the money supply by
A) Selling Government securities
B) Buying Government securities
C) Borrowing from Commercial Banks
D) Increasing the Bank rate
17. Milton Friedman is connected with which of the following approaches
A) Traditional
B) Conventional
C) Modern
D) Chicago
18. Which of the following is the main source of income for commercial banks
A) Interest on loans
B) Interest from advances
C) Interest differentials
D) Overdraft facilities
19. The monetary policy of the central bank can affect
A) Inflation only
B) Output only
C) Inflation & output
D) None of the above
20. H is measured as
A) C+R
B) C+OD
C) C+DD
D) R+DD
21. Which of the following is called narrow money
A) M1
B) M2
C) M3
D) M4
22. A policy which keeps the interest rate high is also known as
A) Dear money policy
B) Cheap money policy
C) Inflation policy
D) Investment policy
23. Which of the following can be considered to be the broadest measurement of money
A) Conventional
B) Chicago
C) Central bank
D) Gurley and Shaw
From the information given below answer questions 24 to 26
|
Particulars |
Rs. Crores |
|
Particulars |
Rs. Crores |
|
Demand Deposits with Banks |
5500 |
Post office Savings |
110 |
|
|
Currency with public |
10500 |
Bankers Deposit with RBI |
250 |
|
|
Time Deposits with Banks |
550 |
Other Deposits with RBI |
750 |
24. Mo is
A) 11500
B) 12500
C) 10550
D) 13500
25. M1 is
A) 15750
B) 16750
C) 17650
D) 14750
26. M3
A) 16300
B) 15300
C) 17300
D) 18300
27. The Reserves with central bank is Rs. 4500 Crores, the volume of demand deposit is Rs.18000 Crores and the reserve ratio is 25%. If the volume of demand deposit increases by Rs. 2000 Crores and the volume reserves is decreased by Rs. 500 crores, than the new ratio will be
A) 22%
B) 23%
C) 21%
D) 20%
28. The basic difference between M1 and M3 is that
A) M3 is greater than M1
B) M3 is lower than M1
C) M3 includes Post office savings also
D) Time deposit is included in M1
29. This definition of money, “ Money means anything which is commonly used and Generally accepted was given by
A) Cassel
B) Kent
C) Crowther
D) Samuelson
30. The CRR is used by the central bank to
A) Encourage savings in the economy
B) Influence cost Borrowing
C) To control volume of credit
D) All of the above
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