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MGT 411 Money Banking Past Assignment MCQ'S: B. Intermediate Targets
MGT 411 Money Banking Past Assignment MCQ'S: B. Intermediate Targets
1) Instruments that are not directly under the control of the Central Bank are referred to as:
A. Operating instruments
B. Intermediate targets
C. Economic instruments
D. Social instruments
2) Every country with high inflation has ____________ money growth:
A. High
B. Low
C. Medium
D. Zero
3) Which of the following statement is true?
A. Nominal GDP = PY
B. Nominal GDP > PY
C. Nominal GDP < PY
D. Nominal GDP ≠ PY
4) According to Milton Friedman, Central Banks should set money
growth at a __________ rate:
A. Increasing rate
B. Decreasing rate
C. Constant rate
D. Zero rate
5) ____________ is one of the financial instruments that we can hold in our investment portfolios:
A. Bonds
B. Shares
C. Money
D. Term finance certificates (TFC)
6) Increases in price level will ____________ the purchasing power of money:
A. Increase
B. Decrease
C. No change
D. Balance
7) At long run real interest rate:
A. AD = Potential Output
B. AD > Potential Output
C. AD < Potential Output
D. None of the given options
8) __________ curve is downward sloping because higher inflation reduces real money balances:
A Aggregate Demand Curve
A. Aggregate Supply Curve
B. IS Curve
C. LM Curve
9) Increases in government purchases will ________ the aggregate demand:
A. Increase
B. Decrease
C. No change
D. Balance
10) A change in cost of producing output causes the ________ curve to shift:
1. According to which principle, people and companies concentrate on such activities for which their
opportunity cost is lower?
2. Nonprofit depository institutions that are owned by people with a common bond are known as:
A. Commercial banks
B. Central banks
C. Credit unions
D. Insurance companies
4. Securities are highly liquid and can be sold quickly if the bank needs cash, that’s why these are
also called:
A. Primary reserves
B. Secondary reserves
C. Excess reserves
D. None of the given options
A. It earns no interest
B. It earns less interest
C. It earns more interest
D. Both B & C
A. Bank capital
B. Bank liability
C. Bank assets
D. Bank profit
A. Return on assets
B. Return on equity
C. Return on bonds
D. None of the given options
8. If return on equity is higher for larger banks then it shows the existence of:
A. Economies of scope
B. Economies of scale
C. Diseconomies of scale
D. All of the given options