MACRO ECONOMICS ISSUES & POLICIES - February 2015 MCQS

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SEMESTER - 4

MACRO ECONOMICS ISSUES & POLICIES

(MEIP)

MCQS - February, 2015

1) High-powered money include which of the following

a) Currency with public 

b) Reserve with IMF

c) Demand deposit 

d) None of above

2) If deposit money of the public is rs.400, the currency wit public is rs.1000, post office saving is rs. 300 and the deposit with commercial bank is rs.200, then m3 will be

a) Rs.1600 

b) Rs.1900 

c) Rs.1300 

d) Rs.1700

3) Central bank was also known as

a) Bank of issue 

b) Imperial bank 

c) RBI

d) None of above

4) Which of the following is included in all the RBI’s measure of money

a) Demand deposit 

b) Time deposit

c) Other deposit with RBI 

d) Postal savings

5) Open market purchase of bound by RBI will have the tendency to ...

a) Increase liquidity 

b) Reduce liquidity

c) Increases interest rates 

d) All of above

6) During depression, the appropriate policy of the central bank will be to ...

a) Increase CRR 

b) Sell government securities

c) Increase SLR 

d) Reduce bank rate

7) Multiple credit creation will depended upon ____

a) Primary deposit 

b) CRR 

c) Banking habit of people 

d) All of the above

8) Which of the following is a modern weapon of credit control

a) Reserve ratio 

b) OMO 

c) Bank rate policy 

d) Margin requirement

9. The following is not objective of the monetary policy...

a) To maintain price stability 

b) To promote growth

c) To increase employment 

d) To reduce walfare

10) M2 also includes...

a) Excess reserve 

b) Time deposit

c) Foreign exchange reserve 

d) Deposit in post office savings

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