Question Details of Subject:QUIZ-HET-251: University Information System - by - ERP Division

Question Details of Subject :QUIZ-HET-251
Page 1 of 93
Unit Code Group 1 Group 2 Group 3 Unit Wise Total Total Questions : 572
1 123 70 0 193
2 122 71 3 196
3 93 78 12 183
Group Wise Total 338 219 15
QNo Question Id Question Description

1 1241086 If value of output is 1200, value of intermediate goods is 1000, then value added is:
Unit : 1, Group : 1 1.200 (Right)

2.400
3.600
4.800
2 864307 mountain and rivers are
Unit : 1, Group : 1 1.national capital

2.national wealth (Right)
3.real capital
4.
3 871598 NDP = NNP when,
Unit : 1, Group : 1 1.NFIA is Zero (Right)

2.depreciation is nil
3.none of these
4.
4 1240946 Operating Surplus includes:
Unit : 1, Group : 1 1.rent

2.interest
3.profit
4.all of above (Right)
5 1241137 an economy which has economic relations to other countries in known as:
Unit : 1, Group : 1 1.open economy (Right)

2.closed economy
3.self- reliant economy
4.
University Information System - By - ERP Division Sunday, April 14, 2019 1:31:45 AM
Page 2 of 93
6 1241239 What does the term free-market denote in terms of economy?
Unit : 1, Group : 1
a) Minimal government intervention in trade and minimum regulations
b) Maximum government intervention in trade and maximum regulations
c) Means of production owned by the state
d) None of the above
1.a (Right)
2.b
3.c
4.d
7 1241280 Which of the following explains the term economic development?
Unit : 1, Group : 1
a. Improvement in the technology involved
b. Improvement in production
c. Improvement in distribution system
d. All the above
1.a
2.b
3.c
4.d (Right)
8 1240952 Windfall gains like lotteries and capital gains are/are not included in N.I
Unit : 1, Group : 1 1.cant say

2.are
3.are not (Right)
4.
9 1241088 Gross value added by ----------------sector within the domestic territory of a country during the period of one year is called GDP at M.P
Unit : 1, Group : 1 1.Primary

2.Secondary
3.Tertiary
Page 3 of 93
10 1241102 Imputed rent of owner occupied houses is/is not included in N.I.
Unit : 1, Group : 1 1.is (Right)

2.is not
3.cant say
4.none
11 1241241 The difference between the Gross value added and Net value added is:
Unit : 1, Group : 1
a) Investment
b) Value added
c) Production flow
d) Depreciation
1.a
2.b
3.c
4.d (Right)
12 1241242 What is the sum total of gross value added of all the firms in the country minus the depreciation?
Unit : 1, Group : 1
a) Gross Domestic Product
b) Gross National Product
c) Net Domestic Product
d) Net National product
1.a
2.b
3.c (Right)
4.d
13 874749 national income = domestic factor income + .........
Unit : 1, Group : 1 1.net factor income from abroad (Right)

2.net indirect taxes
3.disposable income
4.
14 1240951 Sale proceeds of shares and bonds are/are not included in N.I.
Unit : 1, Group : 1 1.are

2.are not (Right)
3.cant say
4.
Page 4 of 93
15 1240953 Expenditure method of calculating N.I is also known as......................method
Unit : 1, Group : 1 1.Income-disposal (Right)

2.Income-earned
3.Income genration
4.none
16 1241100 Value of intermediate goods is/is not included in N.I
Unit : 1, Group : 1 1.is

2.is not (Right)
3.cant say
4.
17 1241251 Das Kapital, published in German in 1867, was authored by:
Unit : 1, Group : 1
a) Karl Marx
b) John Maynard Keynes
c) F. Hayek
d) Samuelson
1.a (Right)
2.b
3.c
4.d
18 1241283
Unit : 1, Group : 1 Which of the following denotes an underdeveloped economy?
a. High level of inequalities

b. Low level of capital productivity
c. A relatively closed economy
d. All the above
1.a
2.b
3.c
4.d (Right)
19 868434 GDP = NDP + ....
Unit : 1, Group : 1 1.NFIA

2.depreciation (Right)
3.personal disposable income
4.
Page 5 of 93
20 1241097 BSNL stands for (a) British Sanchar Nigam Lt(d) ; (b) Bidesh Sanchar Nigam Lt(d) ; (c) Bharat Sanchar Nigam Lt(d) (d) Bhartiya Swadeshi Nigam Lt
(d)
Unit : 1, Group : 1
1.British Sanchar Nigam Lt(d
2.Bidesh Sanchar Nigam Lt(d)
3.Bharat Sanchar Nigam Lt(d) (Right)
4.Bhartiya Swadeshi Nigam Lt(d)
21 1241104 Services for self-consumption are/are-not included in N.I
Unit : 1, Group : 1 1.are

2.are not (Right)
3.cant say
4.
22 1241136 flow of goods and services between firms and households are:
Unit : 1, Group : 1 1.real flow (Right)

2.money flow
3.flow of capital
4.flow of stock
23 1241090 NDP at M.P - .................= NDP at F.C
Unit : 1, Group : 1 1.Indirect taxes

2.subsidies
3.net indirect taxes (Right)
4.none
24 864312 total monetary value of all goods and services produced during the year is
Unit : 1, Group : 1 1.GDP (Right)

2.NDP
3.national income
4.
25 1241278 Which of the following explains the term economic growth?
Unit : 1, Group : 1
a. Increase in per capita production
b. Increase in per capita real income
c. structural change in the economy
d. all the above are right
1.a
2.b
3.c
4.d (Right)
Page 6 of 93
26 868062 Net indirect tax = indirect taxes - .........
Unit : 1, Group : 1 1.subsidies (Right)

2.depreciation
3.NFIA
4.
27 871487 Operating Surplus = rent + interest + Royalty+............
Unit : 1, Group : 1 1.profit (Right)

2.loss
3.corporate taxes
4.
28 1240948 Mixed income refers to the income of ------------------
Unit : 1, Group : 1 1.self-employed persons (Right)

2.employees
3.labourers
4.all of above
29 1240965 Private income = Income from domestic product accruing to Private sector + NFYA + Current transfers from ROW + Current transfers from Govt. +
---------------------
Unit : 1, Group : 1
1.Interest on national debt (Right)
2.Income from domestic product accruing to Govt sector
4.NFYA
5.Depriciation
30 868089 personal income = personal disposable income + .............
Unit : 1, Group : 1 1.personal taxes + miscellaneous receipts of the govt. administrative department (Right)
2.personal taxes
3.disposable income
4.
31 1241245 Friedrich Hayek was a proponent of :
Unit : 1, Group : 1
a) Keynesian economics
b) Communism
c) Classical Liberalism
d) Socialism
1.a
2.b
3.c (Right)
4.d
Page 7 of 93
32 1240942 Factor-incomes are ......................incomes.
Unit : 1, Group : 1 1.earned (Right)

2.unearned
3.both a and b
4.none
33 1240955 Expenditure on final goods and services by individuals, households and non-profit organizations is called:
Unit : 1, Group : 1 1.Private final consumption exp (Right)

2.Govt final consumption exp
3.Household consumption exp
4.none
34 874549 national capital is man- made?
Unit : 1, Group : 1 1.true (Right)

2.false
3.either true or false
4.
35 1241230
Who is credited with bringing the term "the invisible hand" in economics?
Unit : 1, Group : 1
1.Adam Smith (Right)

2.Keynes
3.Samuelson
4.none of these
36 871471 transfer income is included in private income

2.false
3.don't know
4.none of these
37 1240949 NDP at F.C includes:
Unit : 1, Group : 1 1.compensation of employees

2.operating surplus
3.mixed income
38 1241083 If value of output is 600, vale of intermediate goods is 200, what is value added?
Unit : 1, Group : 1 1.200

2.400 (Right)
3.600
4.800
39 1241093 What is the formula for National Income?
Unit : 1, Group : 1 1.NDP at F.C

2.NNP at F.C (Right)
3.NNP at M.P
4.none
Page 8 of 93
40 868423 national income at factor cost = national income at market price -.............
Unit : 1, Group : 1 1.net indirect taxes (Right)

2.NFIA
3.Personal taxes
4.none of these
41 1240954 Final expenditure method of N.I includes:
Unit : 1, Group : 1 1.Private final consumption expenditure

2.Govt final consumption expenditure
3.Investment expenditure
4.Net exports
42 1241236 What are Capital goods?
Unit : 1, Group : 1
a) Goods used for consumption in the production process
b) Goods such as tools, machinery, etc which are used to create final consumer goods
c) Goods and services that are consumed fully when purchased by the consumers
1.a
2.b (Right)
3.c
4.d
43 1241247 What is the global rank of India in terms of its nominal GDP?
Unit : 1, Group : 1
a) 3rd
b) 5th
c) 10th
d) 17th
1.a
2.b
3.c (Right)
4.d
Page 9 of 93
44 1241279 Economic development is characterized by
Unit : 1, Group : 1
a. Structural change in the economy
b. Change in the occupational structure
c. Both a and b
d. None of the above
1.a
2.b
3.c (Right)
4.d
45 868069 NDP at MP = GDP at MP - ........
Unit : 1, Group : 1 1.Depreciation (Right)

2.subsidies
3.NFIA
4.
46 871478 GNP at MP -............ = GNP at FC
Unit : 1, Group : 1 1.net indirect taxes (Right)

2.NFIA
3.depreciation
4.
47 874718 domestic territory and political frontiers are same.
Unit : 1, Group : 1 1.yes

2.no (Right)
3.none of these
4.
48 874736 financial capital does not help in production

2.false
3.
4.
49 1240958 Net exports:
Unit : 1, Group : 1 1.exports-imports (Right)

2.imports-exports
3.
4.
Page 10 of 93
50 1241243 What is the sum total of gross value added of all the firms in the country added with the net factor
Unit : 1, Group : 1 income from abroad?
1.a
2.b (Right)
3.c
4.d
51 868077 depreciation = GNP at MP - .........
Unit : 1, Group : 1 1.NNP at MP (Right)

2.NNP at FC
3.NFIA
4.
52 1241084 If value of output is 800 and value of intermediate goods is 600, then value added is:

2.400
3.600
4.800
Page 11 of 93
53 1241233 Consider the following statements:
Unit : 1, Group : 1
1. In a Capitalist economy there is private ownership of means of production
2. In a communist nation, the means of production are owned by the State
3. In a free-market economy there is minimum role of the Government
Which of the following is/are true?
1.only 1
2.only 2
3.2 and 3 both
4.1 and 2 both
5.1 and 3 both
6.all of the above (Right)
54 1241282 Scarcity of capital , technological backwardness and unemployment are generally found in
Unit : 1, Group : 1
a. Developed countries
b. Underdeveloped countries
c. Both
d. None of the above
1.a
2.b (Right)
3.c
4.d
55 864313 indirect taxes are not included in the national income because
Unit : 1, Group : 1 1.it is not a factor income (Right)

2.it affects the price of goods
3.all the above
4.
56 1240938 Value of final output = .....................-Value of intermediate goods
Unit : 1, Group : 1 1.Value of output (Right)

2.Value of input
3.Value of income
4.none
Page 12 of 93
57 1241263 What among the following is NOT an example of 'private goods'?
Unit : 1, Group : 1
a) Clothes
b) Cars
c) Military
d) Food items
1.a
2.b
3.d
4.c (Right)
58 864310 an economy which has economic relations to other countries is known as
Unit : 1, Group : 1 1.closed economy

2.open economy (Right)
3.self reliant economy
4.
59 874538 an economy which has economic relations to other countries is known as.............
Unit : 1, Group : 1 1.closed economy

2.flow economy
3.open economy (Right)
4.none of these
60 1241106 Value added in Govt sector is equal to---------------
Unit : 1, Group : 1 1.compensation of employees (Right)

2.mixed income
3.both
4.none
61 1241096 Commission earned on sale and purchase of second hand goods is/is not included in N.I
Unit : 1, Group : 1 1.is not

2.cant say
3.is (Right)
4.
Page 13 of 93
62 1241253 Laissez-faire economics refers to:
Unit : 1, Group : 1 a) a term denoting economic transactions carried out by the State/government
b) economic transactions in private parties where there is no intervention by the State/government
c) a branch of socialism focusing on welfare economics
1.b (Right)
2.c
3.d
4.a
63 851062 the business cycle has changed lately in that
Unit : 1, Group : 1 1.recovery from the through has been sluggish (Right)
2.the peaks of the cycles occur more often
3.the cycles last longer but the troughs are deeper
4.
64 1241098 Goods produced for self-consumption by the producer are/are not included in N.I
Unit : 1, Group : 1 1.are (Right)

2.are not
3.cant say
4.
65 1241232 When did the Great Depression hit the United States?
Unit : 1, Group : 1
1.1929 (Right)
2.1947
3.1950
4.1992
Page 14 of 93
66 1241234
Unit : 1, Group : 1
Macroeconomics is a study of economics that deals with which 4 major factors:
a) households, firms, government, and demand-supply

b) households, firms, government and external sector
c) firms, government, free-market, and regulations
d) none of the above
1.a
2.b (Right)
3.c
4.d
67 874745 GNP Deflator = Nominal GNP/ ........ * 100
Unit : 1, Group : 1 1.real GNP (Right)

2.real GDP
3.NNP
4.
68 1241281 An underdeveloped economy is characterized by
Unit : 1, Group : 1
a. High per capita real income
b. Large proportion of labor force in the tertiary sector
c. State of deprivation of large proportion of population
d. All the above
1.a
2.b
3.c (Right)
4.d
69 864311 consumption of fixed capital is known as
Unit : 1, Group : 1 1.capital formation

3.investment
4.all the above
Page 15 of 93
70 871474 NDP at FC = NNP at FC - ...............
Unit : 1, Group : 1 1.NFIA (Right)

2.Net indirect taxes
3.depretiation
4.
71 1240936 Problem of double counting leads to -------------------of value of goods and services.
Unit : 1, Group : 1 1.over-estimation (Right)

2.under-estimation
3.
4.
72 1241254 Which among the following is considered to be the most liquid asset?
Unit : 1, Group : 1
a) Machinery
b) Money
c) Land
1.a
2.b (Right)
3.c
4.
73 1240940 Income method is that method which measures N.I in the form of payments made in the form of ..................
Unit : 1, Group : 1 1.rent

2.wages
3.interest
4.profit
Page 16 of 93
74 1241240 What is the term in economics for the consumption of fixed capital?
Unit : 1, Group : 1
a) Investment
b) Value added
c) Production flow
d) Depreciation
1.a
2.b
3.c
4.d (Right)
75 871455 .......... is deducted from GNP at market price to fine out GDP at MP.
Unit : 1, Group : 1 1.depreciation

2.net income from abroad (Right)
4.
76 874731 stock means the quantity, measured at a point of time.

2.false
3.
4.
77 876180 what will happen to the level of circular flow of income in the following situation
S=I
Unit : 1, Group : 1
1.level of income falls
2.equilibrium in the economy (Right)
3.level of income increases
4.all the above
78 1241135 capital stock is equal to:
Unit : 1, Group : 1 1.capital stock produced during the year

2.opening balance of capital + increase in capital stock during the year (Right)
3.capital stock produced during the previous year
4.
Page 17 of 93
79 1241237 Intermediate goods are not included to calculate the final output because:
Unit : 1, Group : 1
a) they do not have value
b) they have unknown value
c) their value is included in final goods so they are not added to avoid the problem of double counting
1.a
2.b
3.c (Right)
4.d
80 1241246 Which Indian state has the highest GDP for 2012-13?
Unit : 1, Group : 1
a) Gujarat
b) Uttar Pradesh
c) Madhya Pradesh
d) Maharashtra
1.a
2.b
3.c
4.d (Right)
81 871602 GDP= NDP if
Unit : 1, Group : 1 1.NFIA is Zero

2.Depreciation is nil (Right)
3.Depreciation is one
4.all the above
S>I
Unit : 1, Group : 1
1.level of income falls (Right)
2.level of income increases
3.constant income
4.
Page 18 of 93
83 1241248 Which Indian city is known as its trade and financial capital?
Unit : 1, Group : 1
a) Mumbai
b) Delhi
c) Bangalore
d) Gurgaon
1.a (Right)
2.b
3.c
4.d
84 1240995 Personal income = ........................-corporate taxes-corporate savings
Unit : 1, Group : 1 1.Private income (Right)

2.NDP at M.P
3.NNP at F.C
4.GDP at M.P
85 1241238 What does the term Gross investment mean while denoting a nation's economy?
Unit : 1, Group : 1
a) Gross investment= Net investment + Depreciation
b) Gross investment= Net investment - Depreciation
c) Gross investment= Depreciation - Net investment
1.a (Right)
2.b
3.c
4.d
I> S
Unit : 1, Group : 1
1.level of income increases (Right)
2.equilibrium level in economy
3.level of income falls
4.
Page 19 of 93
87 1241274 What does the term ceteris paribus mean?
Unit : 1, Group : 1
a) things are different
b) other things remaining equal
c) with the view that
d) in reference to
1.a
2.b (Right)
3.c
4.d
88 1241255 The number of times a unit of money exchanges hands during a unit period of time is known as:
Unit : 1, Group : 1
a) velocity of circulation of money
b) time of money
c)time value of money
d) count of circulation of money
1.b
2.c
3.d
4.a (Right)
89 1241134 Mountains and rivers are:
Unit : 1, Group : 1 1.national capital

2.real capital
3.national wealth (Right)
4.international capital
90 874739 what are the stages of capital flow of income?
Unit : 1, Group : 1 1.production

2.income
3.expenditure
4.all the above (Right)
5.none of these
6.A and B
Page 20 of 93
91 1240961 Income from domestic product accruing to Private sector=..................-NDP at F.C accruing to Govt. sector
Unit : 1, Group : 1 1.NDP at M.P

2.NDP at F.C (Right)
3.NNP at F.C
4.NNP at M.P
92 1240968 If we add«««««to national income we get NDP
Unit : 1, Group : 1 1.Depreciation

2.Net foreign factor income (Right)
3.Indirect-tax
4.Transfer payment
93 1241089 GDP at M.P - ..................= NDP at M.P
Unit : 1, Group : 1 1.taxes

2.depriciation (Right)
3.subsidies
4.none
94 1241139 total monetary value of all goods and services produced during the year is:
Unit : 1, Group : 1 1.GDP

2.NDP (Right)
3.national income
4.personal income
95 1241140 ........... is deducted from GNP at market price to find out GDP at MP.
Unit : 1, Group : 1 1.depreciation

2.net income from abroad (Right)
4.
96 1241257 What is 'Bank rate'?
Unit : 1, Group : 1
a) The rate at which commercial banks borrow money from RBI
b) The rate at which commercial banks lend money to customers
c) The rate at which commercial banks lend money to RBI
1.a (Right)
2.b
3.c
4.d
Page 21 of 93
97 874742 national capital is both reproducible and irreproducible.
Unit : 1, Group : 1 1.false (Right)

2.true
3.not decided
4.
98 1240944 Transfer incomes are ............incomes
Unit : 1, Group : 1 1.earned

2.unearned (Right)
3.both
4.none
99 1241235 What are consumption goods?
Unit : 1, Group : 1 a) Goods used for consumption in the production process
b) Goods such as tools, machinery, etc which are used to create final consumption goods
c) Goods and services that are consumed fully when purchased by the consumers
1.a
2.b
3.c (Right)
4.d
100 1241244 What is the Gross National Product minus the depreciation?
Unit : 1, Group : 1
1.a
2.b
3.c
4.d (Right)
Page 22 of 93
101 1240950 Income from illegal activities is/is not included in N.I.
Unit : 1, Group : 1 1.is

2.is not (Right)
3.cant say
4.
102 1241082 Value of output = Sales + ...................
Unit : 1, Group : 1 1.closing stock

2.opening stock
3.change in stock (Right)
4.none
103 1241231 Who is called as the 'founding father of modern economics'?
Unit : 1, Group : 1
1.Adam Smith
2.Keynes (Right)
3.Samuelson
4.none
104 1241250 A market in which there are only 2 sellers of a good is known as:
Unit : 1, Group : 1
a) monopoly
b) monopsony
c) duopoly
d) perfectly competitive
1.a
2.b
3.c (Right)
4.d
105 868414 GNP = NNP + .........
Unit : 1, Group : 1 1.depreciation (Right)

2.NFIA
3.NNP at FC
4.
106 1240945 Compensation of employees includes:
Unit : 1, Group : 1 1.wages and salaries in cash

2.payment in kind
3.employees contribution to social security
4.pension on retirement
Page 23 of 93
107 1241138 consumption of fixed capital is also known as:

3.investment
4.all the above
108 1241252 What is India's rank in ease of doing business index for 2014, as developed by the World Bank Group?
Unit : 1, Group : 1
a) 3rd
b) 52nd
c) 134th
d) 178th
1.a
2.b
3.c (Right)
4.d
109 864309 flows of goods and services between firms and households are......
Unit : 1, Group : 1 1.real flow (Right)

2.money flow
3.flow of stock
4.
110 1240956 Expenditure on final goods and services by Govt. is known as:
Unit : 1, Group : 1 1.Private final consumption exp

2.Govt final consumption exp (Right)
3.Public goods exp
4.none
111 1241091 Net Indirect Taxes = .......................
Unit : 1, Group : 1 1.Indirect taxes * subsidies

2.none
3.Indirect taxes + subsides
4.Indirect taxes - subsidies (Right)
112 1241092 NDP at F.C + ...................=NNP at F.C
Unit : 1, Group : 1 1.Net indirect taxes

2.NFYA (Right)
3.both
4.none
Page 24 of 93
113 1241141 indirect taxes are not included in the national income because:
Unit : 1, Group : 1 1.it is not a factor income (Right)

2.it is an income of lesser value
3.it affects the price of goods
4.
114 1241142 net exports will be negative if......
Unit : 1, Group : 1 1.exports exceed import

2.imports exceed exports (Right)
3.exports and imports are equal
4.
115 849949 if goods and services are valued at the prevailing price of the year, it will be a valuation at....
Unit : 1, Group : 1 1.constant price

2.current price (Right)
3.cost price
4.
116 867763 net factor income from abroad = GNPFC -
Unit : 1, Group : 1
1.GDP at FC (Right)
2.personal tax
3.NNP at MP
4.
117 871607 GNP at FC = GNP at market price - Indirect taxes +................
Unit : 1, Group : 1 1.subsidies (Right)

2.depreciation
3.NFIA
4.
118 1241085 IF value of output is 1000, value of intermediate goods is 800, then value added is:

2.400
3.600
4.800
119 1241087 If value of output is 3600, value of intermediate goods is 2600, what is value added?

2.2000
3.3000
4.4000
Page 25 of 93
120 1241262 What among the following is NOT an example of 'public goods'?
Unit : 1, Group : 1 a) National defense
b) Roads
c) Cars
d) National Forests
1.a
2.b
3.c (Right)
4.d
121 874526 consumption of fixed capital is also known as...............

3.investment
4.all the above
122 1240947 "Profit" for calculating Operating Surplus includes:
Unit : 1, Group : 1 1.Dividend

2.corporation tax
3.saving of enterprise or undistributed profits
123 1241249 A market in which there is only one seller of a good is known as:
Unit : 1, Group : 1
a) monopoly
b) monopsony
c) duopoly
d) perfectly competitive
1.a (Right)
2.b
3.c
4.d
124 1241166 Which of the following is a Direct Tax?
Unit : 1, Group : 2
1.Sales tax
2.Income tax (Right)
3.
4.
Page 26 of 93
125 1241168 Which of the following is a Revenue Receipt?
Unit : 1, Group : 2
1.Loan from the IMF
2.Grant Received from the world Bank
3.Borrowing from the Public (Right)
4.
126 1241334 Which of the following is/ are not an economic resource
Unit : 1, Group : 2 1.land

2.capital
3.labour
4.air (Right)
127 1241349 Economics cannot be considered a perfect science because
Unit : 1, Group : 2 1.Human behaviour is unpredictable (Right)

2.It is difficult to make correct prediction of economic variables
3.
4.
128 1241221 In which case is total expenditure in an economy not equal to total income?
Unit : 1, Group : 2
1. If total saving is larger than total investment (Right)

2. If net exports are not zero
3. None of the above--they are always equal
4.
129 1241328
A higher GDP per capita may not mean that the quality of life has really improved because:
Unit : 1, Group : 2
1.It measures wealth not income

2.It measures Gross Domestic Product
3.It does not measure the quality of the items produced (Right)
4.It is only measured every five years
130 1241173 Pick the Odd one out from the following
Unit : 1, Group : 2
1.Borrowing from the public
2. Borrowing from the International Financial Organisations
3.Borrowing from the RB

4. Recovery of Loans (Right)
Page 27 of 93
131 1241323
Which of the following statements is true about the circular flow?
Unit : 1, Group : 2
1.Output is greater than income

2.Income is more than expenditure
3.Income is more than expenditure
4.Output equals income equals expenditure (Right)
132 1240970 Which of these is/are not included in net domestic product at factor cost.
Unit : 1, Group : 2 1.Wages or compensation of employees

2.Rent, interest, profits or operating surplus
3. Mixed income
4.None (Right)
133 1241345 Scarcity of resources leads to
Unit : 1, Group : 2 1. Unsatisfaction of human wants

2.Evaluation of alternative uses of scarce resources (Right)
3.
4.
134 1241165 Which of the following is not Capital Expenditure:
Unit : 1, Group : 2
1.Salary paid to the government employees (Right)
2.Purchase of a machine from Korea
3.
4.
135 1241182 Macroeconomics as a separate branch came to be studied after the contributions of which economist?
Unit : 1, Group : 2
1.Adam Smith
2.John Maynard Keynes (Right)
3.
4.
136 1241333 Economic resources are
Unit : 1, Group : 2 1.Unlimited

2.Limited in supply and use
3.Limited in supply but have alternative uses (Right)
4.Unproductive
137 1241325
To adjust GDP from market prices to factor cost:
Unit : 1, Group : 2
1.Add indirect taxes

2.Subtract subsidies
3.Deduct indirect taxes and deduct subsidies
4.Deduct indirect taxes and add subsidies (Right)
Page 28 of 93
138 1241322
Real national income measures:
Unit : 1, Group : 2
1.Nominal national income adjusted for population change

2.Nominal national income adjusted for unemployment
3.Nominal national income adjusted for inflation (Right)
4. Nominal national income adjusted for exchange rates
139 1241383 Personal income includes all of the following except
Unit : 1, Group : 2 1. Transfer payments

2.Undistributed corporate profits
3.Personal income taxes (Right)
4. Dividend payments
140 1241159 NDP does not include
Unit : 1, Group : 2 1.Payments made for income taxes

2.Depreciation allowances (Right)
3.
4.
141 1241320
Net National Product equals:
Unit : 1, Group : 2
1.Gross National Product adjusted for inflation

2.Gross Domestic Product adjusted for inflation
3.Gross Domestic Product plus net property income from abroad
4.Gross National Product minus depreciation (Right)
142 1241184 6) Macroeconomics is a study of economics that deals with which 4 major factors:
Unit : 1, Group : 2
1.households, firms, government, and demand-supply

2. households, firms, government and external sector (Right)
3.
4.
143 1241216 In macroeconomics, equilibrium is defined as that point at which
Unit : 1, Group : 2
1. planned aggregate expenditure equals aggregate output. (Right)
2.planned aggregate expenditure equals consumption.
3.
4.
144 1241169 Identify the Capital Receipts
Unit : 1, Group : 2
1. Penalty
2. Sale of a Public Sector Undertaking (Right)
3.
4.
Page 29 of 93
145 1241154 The terms Micro economic and Macro economics were coined by
Unit : 1, Group : 2 1.Professor A Samulson

2.Giffen
3.Prof. Ragner Frisch (Right)
4.Eagle
146 1241351 The basic assumption of an economic analysis is/ are
Unit : 1, Group : 2 1.BOTH

2.NONE
3.Cetris paribus
4.Rational behavior (Right)
147 1241389 The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is
Unit : 1, Group : 2 1.Excess of subsidies over indirect taxes

2.Depreciation
3. Net foreign income from abroad (Right)
4.Excess of indirect taxes over subsidies
148 1241391 National income is
Unit : 1, Group : 2 1.NDP AT MARKET PRICE

2.NDP AT FACTOR COST
3.NNP AT FACTOR COST (Right)
4.GNP AT MARKET PRICE
149 1241167 Which of the following is an Indirect Tax?
Unit : 1, Group : 2
1. Income Tax
2.Entertainment Tax (Right)
3.
4.
150 1241326
To adjust from Net National Product to Gross National Product:
Unit : 1, Group : 2
1.Deduct indirect taxes

2.Add depreciation
3.Add subsidies
4. Add inflation (Right)
151 1241190 Aggregate supply is the total amount
Unit : 1, Group : 2
1.of products produced by a given industry.
2.of goods and services produced in the economy (Right)
3.
4.
Page 30 of 93
152 1241022 Which of these is/are the feature of an underdeveloped economy?
Unit : 1, Group : 2 1.Greater inequalities

2.High incidence of unemployment
3.Orthodox means of production ;
4.All the three (Right)
153 1241376 Personal income equals personal disposable income (Yd) plus
Unit : 1, Group : 2 1.personal savings

2.dividend payments (Right)
3.
4.
154 1241329
In a mixed economy which sector(s) is/ are found
Unit : 1, Group : 2
1.private
2.public
3.none (Right)
4.both
155 1241172 Which of the following is a Capital Receipt?
Unit : 1, Group : 2
1.Profit Tax
2.Borrowing from the public (Right)
3.
4.
156 1241332 Cetris Paribus means
Unit : 1, Group : 2 1.Holding demand constant (Right)

2.Holding supply constant
3.Price being constant;
4.Other things being constant
157 1241162 In the Union Budget, profits from public sector undertakings are taken under
Unit : 1, Group : 2 1.Capital receipts

2.Revenue receipts (Right)
3.
4.
158 1241194 Involuntary unemployment means that
Unit : 1, Group : 2
1.at the going wage rate, there are people who want to work but cannot find work. (Right)
2.people are not willing to work at the going wage rate.
3.
4.
Page 31 of 93
159 1241319
Gross National Product equals:
Unit : 1, Group : 2
1.Net National Product adjusted for inflation

2.Gross Domestic Product adjusted for inflation
3.Gross Domestic Product plus net property income from abroad (Right)
4.Net National Product plus net property income from abroad
160 1241321
The standard of living is often measured by:
Unit : 1, Group : 2
1.Real GDP per capita (Right)

2.Real GDP
3.Real GDP * population
4.Real GDP plus depreciation
161 1240987 In economic goods includes material things which«««
Unit : 1, Group : 2 1.Can be transferred

2.Can be exchanged for one another
3.Both (Right)
4.None
162 1241310 . Firms react to unplanned increases in inventories by
Unit : 1, Group : 2 1. reducing output (Right)

2.increasing output.
4. increasing consumption.
163 1241324
GDP measures:
Unit : 1, Group : 2
1.A country's income (Right)

2.A country's wealth
3.Consumer spending
4.Net trade income
164 1241342 Capital in economics means
Unit : 1, Group : 2 1.Factor of production

2.Fund brought in by the entrepreneur
3.nvestment in shares, bank deposits (Right)
4.All the above
Page 32 of 93
165 1241360 Which of the following methods is/are used for measuring national income? (a) Output method ; (b) Expenditure method ; (c) Income method ; (d) All
of (a), (b) and (c) above.
Unit : 1, Group : 2
1.heights
2.output method
3.expenditure method
4.sharpness
5.income method
6.intensity
166 1241163 In the Union Budget, profits from public sector undertakings are taken as
Unit : 1, Group : 2 1.Capital receipts

2.Revenue receipts (Right)
3.
4.
167 1241170 Identify the Revenue Expenditure
Unit : 1, Group : 2
1.Subsidies (Right)
2.Construction of a school building
3.
4.
168 1241202 Aggregate demand refers to the total demand for all domestically produced goods and services in an economy generated from
Unit : 1, Group : 2
1.all sectors except the rest of the world.
2. all sectors including the rest of the world (Right)
3.
4.
169 1241220
Unit : 1, Group : 2 To offset the downsizing in the business cycle, the government announces a major increase in public expenditure.
16.Which school of economic thought suggested that one possible cause of inflation was a 'push' from the cost side?
1. New classical economists.

2. Monetarists.
3. Marxists.
4. Keynesian
1.Demand Deficient Unemployment (Right)

2.Real Wage Unemployment
3.
4.
Page 33 of 93
170 1240990 Which of these is a secondary sector
Unit : 1, Group : 2
1.Manufacturing sector (Right)
2.Transport
3.Forestry
4.Animal husbandry
171 1241158 The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is
Unit : 1, Group : 2 1.Excess of subsidies over indirect taxes

2.Net foreign income from abroad (Right)
3.
4.
172 1241189 A study of how increases in the minimum wage rate will affect the national unemployment rate is an example of
Unit : 1, Group : 2
1. descriptive economics.
2.macro economics (Right)
3.
4.
173 1241393 On the basis of the Keynesian model of output determination, a multiplier of 3 implies that
Unit : 1, Group : 2 1.An increase in consumption by `3 will result in an increase in investment by Re. 1
2. An increase in investment by Re. 1 will result in an increase in consumption by `3 (Right)
3.An increase in investment by Re. 1 will result in an increase in consumption by `2
4. An increase in investment by Re. 1 will result in an increase in consumption by Re. 1
174 1241336 Which of the following is/ are an economic resource

2.labour
3.capital
4.all oft hree (Right)
175 1241164 Which one of the following is not the form of Tax Revenue?
Unit : 1, Group : 2
1.Income Tax
2.Sales Tax
3. License Fee (Right)
4.
176 1241181 Who is called as the 'founding father of modern economics'?
Unit : 1, Group : 2
1.john Maynard Keynes

3.
4.
Page 34 of 93
177 1241366 Net factor income from abroad is equal to
Unit : 1, Group : 2 1.NNP at market price ±NDP at market price

2.NDP at market prices ±Indirect taxes + Subsidies (Right)
3.NNP at market prices + Depreciation
4.NDP at factor cost + Depreciation
178 1241155 Personal income equals personal disposable income plus
Unit : 1, Group : 2 1.Personal income taxes (Right)

2.Dividend payments
3.Personal saving
4.Transfers from government
179 1241160 National income
Unit : 1, Group : 2 1.NDP at market prices

2.NDP at factor cost
3.NNP at factor cost (Right)
4.
180 1241223
The increase in the Public Sector Borrowing Requirement (PSBR) to almost £50 billion this year will automatically lead to:
Unit : 1, Group : 2
3. The increase in the Public Sector Borrowing Requirement (PSBR) to almost £50 billion this year will automatically lead to:
1. A higher rate of inflation

2. A fall in the rate of unemployment
3. An increase in the National Debt
4. A deterioration in the Balance of Payments
1.higher rate of inflation

2.An increase in the National Debt (Right)
3.
4.
181 1241392 The difference between personal disposable income and personal income is
Unit : 1, Group : 2 1.Indirect taxes

2.Subsidies (Right)
3.Transfer payments
4.Personal taxes
182 1241156 Nominal GDP is
Unit : 1, Group : 2 1.The total value of goods and services net of exports
2.The total value of goods and services produced during periods of low unemployment
3. The total value of goods and services measured at current prices (Right)
4.
Page 35 of 93
183 1241327
The Gini coefficient measures:
Unit : 1, Group : 2
1.Income inequality (Right)

2.Unemployment
3. Inflation
4. Economic growth
184 1241171 Which of the following is Capital Expenditure:
Unit : 1, Group : 2
1.Salary paid to the government employees
2.Purchase of a machine from Korea (Right)
3.
4.
185 1241180 Who is credited with brining the term "the invisible hand" in economics?
Unit : 1, Group : 2

2.John Maynard Keynes
3.
4.
186 1240969 «««««««is the personal income minus personal income tax and miscellaneous receipts of Government administrative departments.
Unit : 1, Group : 2 1.Surplus income

2. Disposal income (Right)
3.Expendable income
4.Residual income
187 1240967 If we add«««««to net domestic production we get GDP
Unit : 1, Group : 2 1.Depreciation

2.Direct tax (Right)
3.Interest payment
4.Indirect tax
188 1240989 Which of the following is not an economic activity?
Unit : 1, Group : 2 1.Painting for self use (Right)

2.Maintenance of Public Park by Local administration
3.Painting for commercial use
4.Running an Academic school
189 1241157 GDP at factor cost exceeds GDP at market price
Unit : 1, Group : 2 1.When the factor income from abroad is negative

2.When subsidies exceeds indirect taxes. (Right)
3.
4.
Page 36 of 93
190 1241161 The net factor income earned within the domestic territory of a country must be equal to
Unit : 1, Group : 2 1. Net Domestic Product at factor cost (Right)

2.Net Domestic Product at market price
3.
4.
191 1241379 Macroeconomics is concerned with
Unit : 1, Group : 2 1.The level of output of goods and services

2. The general level of prices (Right)
3.The growth of real output
4.All of the above
192 1240993 Which of these is primary sector.
Unit : 1, Group : 2 1.Communication

2.Banking
3.Construction
4.Poultry firming (Right)
193 1241222 Identify the three motives of money demand:
Unit : 1, Group : 2
1.Accumulative, speculative, precautionary
2.Precautionary special, transaction
3.Speculative, transaction, precautionary (Right)
4.
194 1241286 ----------------investment is profit/income elastic
Unit : 2, Group : 1 1.Induced (Right)

2.ex-post
3.both a and b
4.none
195 1241297 What are the determinants of Induced Investment?
Unit : 2, Group : 1 1.MEC

2.Rate of interest
3.both a and b (Right)
4.none
196 851075 which of the following would not shift the aggregate demand curve?
Unit : 2, Group : 1 1.a change in the price level (Right)

2.depreciation of the international value of the dollar
3.an increase in personal income tax rates
4.
197 1241361 If change in income is 100, change in consumption is 40, MPC is:
Unit : 2, Group : 1 1.0.5

2.0.4 (Right)
3.0.7
4.0.9
Page 37 of 93
198 1241276 What is "mps" or the 'marginal propensity to save'?
Unit : 2, Group : 1
a) the proportion of total additional planned savings to total additional income
b) the proportion of total additional income to total additional planned savings
c) the fraction of total additional income that is used for consumption
1.a (Right)
2.b
3.c
4.d
199 1241076 If investment increases by Rs 400 crore and multiplier is 2, what is the increase in income?
Unit : 2, Group : 1 1.400

2.800 (Right)
3.1600
4.none
200 1241031 The larger the .................., the larger is the multiplier.
Unit : 2, Group : 1 1.MPC (Right)

2.MPS
3.both
4.none
201 858215 the marginal propensity to consume is computed as the change in
Unit : 2, Group : 1 1.consumption divided by the change in savings

2.consumption divided by the change in disposable income
3.consumption divided by the change in GDP
4.none of these (Right)
202 1241284 Investment refers to the ------------ of capital equipment
Unit : 2, Group : 1 1.decrease

2.increment (Right)
3.both a and b
4.none
203 1241384 -----------------unemployment is caused by change in technique of production
Unit : 2, Group : 1 1.Technical (Right)

2.Frictional
3.voluntary
4.none
Page 38 of 93
204 854947 consider the keynesian consumption function. if disposable income is greater than the break even level of disposable income, then households will be
Unit : 2, Group : 1 1.investing

2.dissaving
3.saving (Right)
4.borrowing
205 1241346 If income is zero, consumption is 10.....from where do people spend?
Unit : 2, Group : 1 1.past savings

2.borrowings
4.cant say
206 1241077 If investment increases by 300 crore and multiplier is 2, then increase in income is:
Unit : 2, Group : 1 1.300

2.400
3.600 (Right)
4.900
207 858286 if the MPC= 0.75 the spending multiplier is

2.1.33
3.1.20
4.5
208 858275 the formula to compute the spending multiplier
Unit : 2, Group : 1 1.1/(MPC+ MPS)

2.1/(1-MPC) (Right)
3.1/(1- MPS)
4.1/ (C= I)
209 1241023 If increase in investment by 5 crore leads to Rs 25 crore in income, what is multiplier?
Unit : 2, Group : 1 1.4

2.5 (Right)
3.6
4.7
210 1241291 The total expenditure incurred on capital goods at any given time is known as:
Unit : 2, Group : 1 1.Gross Investment (Right)

2.Net Investment
3.both a and b
4.none
211 1241341 If income is 200, consumption is 170, saving would be:
Unit : 2, Group : 1 1.20

2.30 (Right)
3.40
4.50
Page 39 of 93
212 1241359 Change in income is 100, change in consumption is 30, MPC is:
Unit : 2, Group : 1 1.0.4

2.0.4
3.0.3 (Right)
4.0.2
213 1241021 If by increasing investment by Rs 5 crore, ultimate increase in income is Rs 20 crores, then multiplier is:
Unit : 2, Group : 1 1.2

2.3
3.4 (Right)
4.6
214 1241028 Investment multiplier is the ratio of increase in --------------to ratio of increase in investment.
Unit : 2, Group : 1 1.income (Right)

2.saving
3.consumption
4.none
215 858269 an increase in the price level, other things remaining the same, may be expected to result in.......... the consumption function
Unit : 2, Group : 1 1.a downward shift of (Right)

2.a movement along
3.an upward shift in
4.no effect on
216 864296
Employment tends to _______ when aggregate output ______
Unit : 2, Group : 1
1.rise, falls
2.rise, rise (Right)
3.falls , rise
4.
217 858284 if the value of the MPC is 0.90, the value of the spending multiplier is

2.1.1
3.100
4.90
218 1241081 If investment increases by 800 crore and multiplier is 2, what is the increase in income?
Unit : 2, Group : 1 1.800

2.1600 (Right)
3.2400
4.3200
219 1241285 -----------------investment is governed by income and amount of profit
Unit : 2, Group : 1 1.Induced (Right)

2.ex-post
3.both a and b
4.none
Page 40 of 93
220 1241298 MEC depends on:
Unit : 2, Group : 1 1.Prospective Yield

2.Supply Price
4.none
221 1241036 MPS and multiplier are ------------------- related.
Unit : 2, Group : 1 1.directly

2.none
3.both
4.inversely (Right)
222 1241043 With increase in investment, multiplier increases many times more, it is called.......................action of multiplier
Unit : 2, Group : 1 1.forward (Right)

2.backward
3.both
4.none
223 858256 the MPS is
Unit : 2, Group : 1 1.the change in saving induced by a change in consumption

2.A (Right)
3.1-MPC (Right)
4.B
5.1- MPC/ MPC
6.C

2.20
3.30
4.40
225 1241375 If income is 2000, consumption is 1700, saving is:
Unit : 2, Group : 1 1.200

2.300 (Right)
3.400
4.500
226 1241390 -----------------------rejected the Classical theory considering it as unrealistic.
Unit : 2, Group : 1 1.Adam Smith

2.Keynes (Right)
3.none
4.cant say
227 851065 the aggregate demand curve is.....
Unit : 2, Group : 1 1.vertical if full employment exists

2.down sloping because of the interest- rate, wealth or real balances,and foreign purchases effects (Right)
3.horizontal when there is considerable unemployment in the economy
4.
Page 41 of 93
228 864201 in the vertical segment of the aggregate supply curve
Unit : 2, Group : 1 1.full employment is achieved (Right)

2.more worker at lower wages
3.different level of GDP
4.
229 1241335 The amount of money that people spend out of National Income on purchase of goods and services for direct satisfaction of wants is known
as....................
Unit : 2, Group : 1
1.investment expenditure
2.consumption expenditure (Right)
3.both a and b
4.none

2.50
3.60
4.70

2.300
3.400
4.500
232 1241380 .......................is a situation in which all those who want to work at the existing wage-rate get work.
Unit : 2, Group : 1 1.Full employment (Right)

2.Partial employment
3.both a and b
4.none
233 1241338
The ratio between aggregate consumption and aggregate income is known as:
Unit : 2, Group : 1
1.Propensity to save
2.Propensity to invest
3.Propensity to consume (Right)
4.none
234 1241352 If national income is 1000 crore, consumption exp is 700 crore..What is propensity to consume?
Unit : 2, Group : 1 1.0.4

2.0.7 (Right)
3.0.8
4.0.9
235 864170 the full employment level of real GDP can represents on an aggregate supply and demand
Unit : 2, Group : 1 1.vertical line (Right)

2.upward sloping line
3.horizontal line
4.
Page 42 of 93
236 1241277 What is "mpc" or the 'marginal propensity to consume'?
Unit : 2, Group : 1
a) the proportion of total additional planned savings to total additional income
b) the proportion of total additional income to total additional planned savings
c) the fraction of total additional income that is used for consumption
1.a
2.b
3.c (Right)
4.d
237 1241288 --------------investment is made by private sector
Unit : 2, Group : 1 1.Public investment

2.Private investment (Right)
3.both a and b
4.none
238 1241295 Investment made in plant and equipment, construction of public utilities is known as:
Unit : 2, Group : 1 1.Financial investment

2.Real investment (Right)
3.both a and b
4.none

2.20
3.30
4.40
240 854950 a movement along the consumption function is caused by a change in
Unit : 2, Group : 1 1.the price level

2.autonomous consumption
3.stock of durable goods
4.real disposable income (Right)
241 1241292 When the entrepreneurs make investment according to a definite plan, it is known as:
Unit : 2, Group : 1 1.Ex-ante investment (Right)

2.Ex-post investment
3.both a and b
4.none
Page 43 of 93
242 851060 the natural rate of unemployment is....
Unit : 2, Group : 1 1.the rate that produces worker revolutions

2.zero unemployment
3.the rate at which there are no inflationary pressures on the economy (Right)
4.
243 1241294 Investment made in buying shares, bonds, securities etc is known as:
Unit : 2, Group : 1 1.Financial Investment (Right)

2.Real Investment
3.both a and b
4.none
Unit : 2, Group : 1 1.100

2.200
3.300
4.400 (Right)
245 858250 the MPS is computed as the change
Unit : 2, Group : 1 1.saving divided by the change in saving

2.saving divided by the change in disposable income (Right)
3.saving divided by change in GDP
4.none of these
246 1241354 If income is 1000 crore, consumption exp is 900 crore. What is propensity to consume?
Unit : 2, Group : 1 1.0.8

2.0.9 (Right)
3.0.10
4.0.2
247 1241275 The "planned" value of the variables like consumption, investment, output, etc, is known as:
Unit : 2, Group : 1
a) ex post measures
b) ex ante measures
c) ex pre measures
1.a (Right)
2.b
3.c
4.d
Page 44 of 93
248 1241358 Change in Income is 100, change in consumption is 40, MPC is:
Unit : 2, Group : 1 1.0.5

2.0.4 (Right)
3.0.6
4.0.2
249 1241026 If increase in investment by Rs 40 crore leads to Rs 80 crore increase in income. What is multiplier?
Unit : 2, Group : 1 1.1

2.2 (Right)
3.3
4.4
250 1241040 IF MPC is 3/4, multiplier is:
Unit : 2, Group : 1 1.2

2.3
3.4 (Right)
4.6
251 858277 if MPC is 0.05, the value of spending multiplier
Unit : 2, Group : 1 1.5

2.2 (Right)
3.1
4.7

2.40
3.50
4.60
253 1241348 What are the kinds of Propensity to consume?
Unit : 2, Group : 1 1.Marginal propensity to consume

2.Average propensity to consume
3.MArginal propensity to save
254 1241365 MPS is the ratio of change in saving to change in .................
Unit : 2, Group : 1 1.income (Right)

2.investment
3.expenditure
4.none
Unit : 2, Group : 1 1.10

2.20 (Right)
3.30
4.40
Page 45 of 93
256 854967 the consumption function shows the relationship between consumption and
Unit : 2, Group : 1 1.interest rates

2.disposable income (Right)
3.savings
4.price level
257 1241042 If MPC is 1, multiplier is:
Unit : 2, Group : 1 1.200

2.300
3.400
4.infinity (Right)
258 1240991 The concept that results in change in income as a result of change in investment is known as..................
Unit : 2, Group : 1 1.none

2.multiplier (Right)
3.multitask
4.propensity to invest
Unit : 2, Group : 1 1.40

2.50 (Right)
3.60
4.40
260 1241388 Level of employment is determined by equilibrium of demand and supply for .....................
Unit : 2, Group : 1 1.labour (Right)

2.land
3.both a and b
4.none
261 851084 the aggregate supply curve
Unit : 2, Group : 1 1.shows various amounts of real output which business will produce at each price level (Right)
2.is explained by interest rate, wealth, and foreign purchases effects
3.is down ward sloping
4.
262 1241045 If investment increases by Rs 100 crore and multiplier is 2, then what is the increase in income?
Unit : 2, Group : 1 1.100

2.200 (Right)
3.300
4.400
263 854961 the relationship between consumer expenditures and disposable income is the
Unit : 2, Group : 1 1.savings function

2.the tax rate function
3.consumption function (Right)
4.
Page 46 of 93
264 864160 which of the following is not a component of the aggregate demand curve?
Unit : 2, Group : 1 1.govt. expenditure

2.consumption
3.net exports
4.savings (Right)
265 1241034 MPC and multiplier are ---------------- related.
Unit : 2, Group : 1 1.directly (Right)

2.inversely
3.both
4.none
266 854974 at the point where the disposable income line intersects the consumption function. saving
Unit : 2, Group : 1 1.equals consumptio

2.equals disposable income
3.is less than zero
4.is equal to zero (Right)
267 854976 that part of disposable income not spent on consumption is defined as
Unit : 2, Group : 1 1.transitory disposable income

2.saving (Right)
3.permanent disposable income
4.disposable income
268 864181 lower taxes on business will shift the aggregate
Unit : 2, Group : 1 1.supply curve rightward (Right)

2.supply curve leftward
3.supply curve downward
4.demand curve rightward
269 1241079 If investment increases by 200 crore and multiplier is 5, then increase in income is:
Unit : 2, Group : 1 1.200

2.500
3.1000 (Right)
4.1500
270 1241386 Acc to Classical theory, ....................is only a medium of exchange
Unit : 2, Group : 1 1.money (Right)

2.technology
3.paper
4.none
271 1241025 If increase in investment by 10 crore leads to 30 crore increase in income. What is multiplier?
Unit : 2, Group : 1 1.1

2.2
3.3 (Right)
4.4
Page 47 of 93
272 876172 APC + _______ = 1
Unit : 2, Group : 1 1.MPS

2.APS (Right)
3.MPC
4.none of these
273 889008 income Multiplier = change in income / change in ________
Unit : 2, Group : 1 1.investment (Right)

2.MEC
3.rate of interest
4.consumption
274 1241339 If income is zero, consumption is 10, saving will be.............
Unit : 2, Group : 1 1.-20

2.-10 (Right)
3.-30
4.-40
275 1241044 With decrease in investment, multiplier decreases many times more, it is known as....................action of multiplier.
Unit : 2, Group : 1 1.forward

2.backward (Right)
3.both
4.none
Unit : 2, Group : 1 1.100

2.200
3.300 (Right)
4.400
277 1241033 The smaller the--------------, the larger is the multiplier.
Unit : 2, Group : 1 1.MPC

2.MPS (Right)
3.both
4.none
278 1241356 The marginal propensity to consume is the ratio between ...........in consumption to ................in income
Unit : 2, Group : 1 1.increase, decrease

2.increase, increase
3.change, change (Right)
4.decrease, decrease
279 1241363 Average propensity to save is the ratio of Saving to ...................
Unit : 2, Group : 1 1.investment

2.income (Right)
3.cant say
4.both a and b
Page 48 of 93
Unit : 2, Group : 1 1.50

2.60
3.70 (Right)
4.80
281 1241381 When laboureres are not willing to work at the existing wage-rate, it is called ........................
Unit : 2, Group : 1 1.voluntary unemployment (Right)

2.involuntary unemployment
3.Frictional unemployment
4.none
282 1241038 If MPC is 1/2, then value of multiplier is:
Unit : 2, Group : 1 1.1

2.2 (Right)
3.3
4.4
283 858225 the slope of consumption function is called the
Unit : 2, Group : 1 1.autonomous consumption rate

2.marginal consumption function
3.marginal propensity to consume (Right)
4.
284 858243 the MPC measures the ratio of the
Unit : 2, Group : 1 1.average amount of our disposable income that we spend

2.change in consumer spending to a change in disposable income (Right)
3.average amount of our savings that we spend
4.
285 1240992 Multiplier is the ratio of change in income due to change in-------------
Unit : 2, Group : 1 1.consumption

2.saving
3.investment (Right)
4.none
286 1241041 If MPC is 4/5, multiplier is:
Unit : 2, Group : 1 1.6

2.8
3.4
4.5 (Right)
287 1241385 Who is a rational man?
Unit : 2, Group : 1 1.one who desires maximum satisfaction (Right)

2.one who desires minimum satisfaction
3.cant say
4.both
Page 49 of 93
288 1241300 If MEC<rate of interest
Unit : 2, Group : 1 1.Investment will be made

2.Investment will not be made (Right)
3.
4.
289 1241368 MPC + MPS = .............

2.2
3.100
4.200
290 858218 the MPC is the slope of the
Unit : 2, Group : 1 1.GDP curve

2.disposable income curve
4.autonomous consumption curve
291 858235 the MPC is
Unit : 2, Group : 1 1.the change in disposable income divided by change in consumption

2.the change in consumption divided by the change in disposable income (Right)
3.disposable income divided by consumption expenditure
4.none of these
292 854972 if the interest rate increases, then the
Unit : 2, Group : 1 1.economy will move to a new point

2.consumption function will shift to downward (Right)
3.consumption function will shift to upward
4.
293 858280 if MPS is 0.25, the value of the spending multiplier is
Unit : 2, Group : 1 1.1

2.2
3.9
4.4 (Right)
294 1241362 What are kinds of Propensity to save?
Unit : 2, Group : 1 1.Average propensity to save

2.Marginal propensity to save
3.Average propensity to consume
295 1241387 In short-period, capital, production technique and ................... are constant.

2.labour
4.cant say
Page 50 of 93

2.200
3.300
4.500
297 854969 the relationship between consumption and disposable income is the
Unit : 2, Group : 1 1.spending function

3.autonomous consumption
4.
298 1241225 The per-worker production function relates:
Unit : 2, Group : 1
1.Output per worker to capital per worker (Right)
2.Production per worker to the size of the work force.
3.
4.
299 1241290 -----------------is the investment made by Govt. sector
Unit : 2, Group : 1 1.Public (Right)

2.Private
3.both a and b
4.none
300 1241293 Unplanned investment is known as:
Unit : 2, Group : 1 1.Ex-ante

2.Ex-post (Right)
3.both a and b
4.none
301 1241350 Suppose National Income is 1000 crore, consumption exp is 80 crore. What is propensity to consume?
Unit : 2, Group : 1 1.0.4

2.0.5
3.0.7
4.0.8 (Right)
302 1241367 APC + APS = ............
Unit : 2, Group : 1 1.200

2.100
3.2
4.1 (Right)
303 1241382 ----------------------unemployment arises on account of shortage of raw-material etc
Unit : 2, Group : 1 1.voluntary

2.frictional (Right)
3.both a and b
4.none
Page 51 of 93
304 851080 all else equal, an increase in imports will shift the aggregate expenditure curve
Unit : 2, Group : 1 1.upward and the aggregate demand curve rightward

2.upward and the aggregate demand curve leftward
3.downward and the aggregate demand curve rightward
4.downward and the aggregate demand curve leftward (Right)
305 1241299 If MEC>rate of interest,
Unit : 2, Group : 1 1.Investment will be made (Right)

2.No investment to be made
3.
4.

2.200
3.300
4.400
307 1241037 If MPC is zero, what is the value of multiplier?

2.2
3.3
4.4
Unit : 2, Group : 1 1.40

2.50
3.60
4.30 (Right)
309 854964 economists refer to the simple relationship between consumption and disposable income as
Unit : 2, Group : 1 1.autonomous consumption

3.marginal propensity to consume
4.disposable income
310 851070 the determinants of aggregate demand
Unit : 2, Group : 1 1.explain why the aggregate demand curve is down sloping.
2.explain shifts in the aggregate demand curve (Right)
3.include input prices and resource productivity
4.
311 854963 which of the following statements is true concerning the consumption function?
Unit : 2, Group : 1 1.it slopes upward

2.its slope equals the MPC
3.it represents the direct relationship between consumption spending and the level of real disposable income
Page 52 of 93
312 1241030 The size of multiplier depends on:

2.MPS
4.none
313 1241287 -------------------investmernt is independent of level of income or profit
Unit : 2, Group : 1 1.Induced

2.Autonomous (Right)
3.bpth a and b
4.none
314 1241289 Investment depends on certain factors, namely:
Unit : 2, Group : 1 1.MEC

2.Rate of Interest
4.none
315 1241296 Propensity to invest is the ratio between Aggregate Investment and Aggregate ...............
Unit : 2, Group : 1 1.expenditure

2.income (Right)
3.consumption
4.none
316 1241153
Which Five-Year Plan had adopted µRemoval of Poverty¶as its foremost objective?
Unit : 2, Group : 2
1. Second
2.Third
3.Fourth
4.Sixth (Right)
317 1241215 As the MPS increases, the multiplier will
Unit : 2, Group : 2
1.decrease.
(Right)
2.either increase or decrease depending on the size of the change in investment.
3.
4.
Page 53 of 93
318 1241149
When was the Decimal currency system introduced in India?
Unit : 2, Group : 2
1.January 1955
2.April 1955
3.April 1951
4.April 1957 (Right)
319 1241151
Which industry provides the largest employment in India?
Unit : 2, Group : 2
1.Chemicals
2.Textiles (Right)
3.Iron and steel
4.Jute
320 1241024 In an agricultural family all the family members are working the farmland of the family. Due to addition of two more person in the family they are also
working in the farmland of the family with no additional increase in farm output. This type of unemployment is known as
Unit : 2, Group : 2
1.Seasonal unemployment
2.Frictional unemployment
3.Cyclical unemployment
4.Disguised unemployment (Right)
321 1240988 «««««States that rapid growth of per capita income will be associated with a reduction in poverty.
Unit : 2, Group : 2 1. The trickle down theory (Right)

2.Multiplier theory
3. Malthus population theory
4. None
322 1241120 ' Induced Investment' is related to-
Unit : 2, Group : 2 1.MPS

2.MPC
3.GOVT
4.MEC (Right)
323 1241127 Which certification indicates a guarantee of quality for agricultural food products like ghee, honey, etc.?
Unit : 2, Group : 2 1.ISI

2.AGMARK (Right)
3.BIS
4.ALL OF ABOVE
324 1241080 Sarvya Siksha Abhiyan policy was declared in
Unit : 2, Group : 2 1.2004

2.2001 (Right)
3.1999
4.2003
Page 54 of 93
325 1241205 The economists who emphasised wage-flexibility as a solution for unemployment were
Unit : 2, Group : 2
1.Classical economists. (Right)
2. Keynesians.
3.
4.
326 1241035 Labour cost consists of
Unit : 2, Group : 2 1.All people officially employed or unemployed (Right)

2.All people over the age of 18 but less than 58 years of age
3.All youth having passed matriculate examination
4. All the three
327 1241131
The Indian rupee is a legal tender in two other countries. One is Nepal. The other is
Unit : 2, Group : 2
1.Pakistan
2.Sri Lanka
3.Bhutan (Right)
4.Afghanistan
328 1241133
Which period did the First Five-year Plan cover?
Unit : 2, Group : 2
1.1947-52
2.1951-56 (Right)
3.1950-55
4.1952-57
329 1241125 Marginal propensity to consumer is
Unit : 2, Group : 2 1.ratio of change in income to a charge in consumption over a period of time
2.ratio of change in consumption to a change in income over a period of time. (Right)
3.
4.
330 1241207 Monetarism became popular because it was able to, unlike Classical or Keynesian economics, explain
Unit : 2, Group : 2
1. stagflation in the late 1970s. (Right)
2.demand-pull inflation in the 1960s.
3.
4.
Page 55 of 93
331 1241129
Which of the following taxes is the largest source of revenue for the Government of India?
Unit : 2, Group : 2
1.Excise (Right)
2.Customs
3.Income tax
4.Corporation tax
332 1241330 In economic theory the term ³means´refers to
Unit : 2, Group : 2 1.RESOURCE

2.ARITHEMATIC MEAN (Right)
3.CHARACTERISTIC
4.NONE
333 1241353 . ----------is known as father of economics
Unit : 2, Group : 2 1.ADAM SMITH

2.A SAMULSON
3.R HICKS (Right)
4.MARSHALL
334 1241185 What are consumption goods?
Unit : 2, Group : 2
1.Goods and services that are consumed fully when purchased by the consumers (Right)
2.Goods such as tools, machinery, etc which are used to create final consumption goods
3.
4.
335 1241196 Macroeconomic theory that emphasised the theories of Keynes and de-emphasised the Classical theory developed as the result of the failure of
Unit : 2, Group : 2
1. the Classical model to explain the prolonged existence of high unemployment during the Great Depression (Right)
2. the economy to grow at a rapid rate during the 1950s.
3.
4.
336 1241032 The type of unemployment that includes those persons who are unemployed for an intervening period of change over in job for better job is known as
Unit : 2, Group : 2 1. Voluntary unemployment

2.Frictional unemployment (Right)
3.Technical unemployment
337 1241191 The total demand for goods and services in an economy is known as
Unit : 2, Group : 2
1.aggregate demand (Right)
2.national demand
3.
4.
Page 56 of 93
338 1241059 The relationship between aggregate consumption expenditure and aggregate income of household sector is known as
Unit : 2, Group : 2 1.Consumption (Right)

2.Saving
3.Expenditure
4.Income
339 1241188 What does the term Gross investment mean while denoting a nation's economy?
Unit : 2, Group : 2
1. Gross investment= Net investment + Depreciation (Right)

2.Gross investment= Net investment - Depreciation
3.
4.
340 1240971 Which is the apex bank for agricultural credit in India?
Unit : 2, Group : 2 1.RBI

2.SIDBI
3.NABARD (Right)
4.IDBI
341 1241039 Which of the following is not a cause of unemployment in India?
Unit : 2, Group : 2 1.Growing population

2.Lack of employment opportunity
3.Inappropriate education system
4. Liberalization (Right)
342 1241128 The National Stock Exchange (NSE) is located at
Unit : 2, Group : 2
1.Mumbai (Right)
2.New Delhi
3.Madras
4.Calcutta
343 1241130
Kerala¶s shores are famous for the deposits of
Unit : 2, Group : 2
1.Copper
2.Coal
3.Thorium (Right)
4.Iron ore
344 1241055 The relationship between aggregate consumption expenditure and aggregate income of household sector is known as «««««««««function.
Unit : 2, Group : 2 1.Consumption (Right)

2.Saving
3.Expenditure
4.Income
Page 57 of 93
345 1241152
The economic liberalization was introduced in
Unit : 2, Group : 2
1.1991 (Right)
2.1990
3.1985
4.1988
346 1241195 A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are
called:
Unit : 2, Group : 2
1. New-Keynesians. (Right)
2. Keynesians.
3.
4.
347 1241002 By definition, the marginal propensity to consume
Unit : 2, Group : 2 1. Equals ?C/?Yd

2. Is the behavioral coefficient c in the equation C = a + cYd;
3.Is the slope of the consumption function
4. All the above (Right)
348 1241395 Full employment exists when there is
Unit : 2, Group : 2 1.Zero unemployment (Right)

2.Natural rate of unemployment
3. Least demand for labor
4. Least supply of labor
349 1241212 Say¶s law states that:
Unit : 2, Group : 2
1. Supply creates its own demand. (Right)
2. Demand creates its own supply.
3.
4.
350 1241101 Green revolution is also known as
Unit : 2, Group : 2 1.Wheat revolution (Right)

2.Milk revolution
3.Grain revolution
4.Chipko movement
Page 58 of 93
351 1241150
Who finally approves the Five-Year Plan?
Unit : 2, Group : 2
a) The President
b) The Prime Minister
c) The National Development Council
d) The National Development Council
1.The President
2.The Prime Minister
3.The National Development Council (Right)
4.The Planning Commission
352 1241347 Who defined economics as ³Science which deals with wealth´
Unit : 2, Group : 2 1.J.B SAY

2.PIGOU
3.MARSHALL (Right)
4.ROBBINS
353 1241304 If an individual who cannot find a job because his or her job skills have become obsolete this is an example of
Unit : 2, Group : 2 1.frictional unemployment

2. structural unemployment (Right)
3. seasonal unemployment.
4.Cyclical unemployement
354 1241132
The highest denomination banknote being in circulation in India is
Unit : 2, Group : 2
1.500 rupee note

2.1000 rupee note (Right)
3.5000 rupee note
4.2000 rupee note
355 1241217 The ratio of the change in the equilibrium level of output to a change in some autonomous component of aggregate demand is the
Unit : 2, Group : 2
1. multiplier. (Right)
2.marginal propensity of the autonomous variable
3.
4.
356 1241394 In which sector of Indian economy will we find a high rate of disguised unemployment?
Unit : 2, Group : 2 1.Service

2.Agriculture (Right)
3.Manufacture
4.Mining
Page 59 of 93
357 1241094 Regulatory framework for Telecom sector is provided by
Unit : 2, Group : 2 1.MTNL

2.VANL
3.BSNL
4.TRAI (Right)
358 1241019 In a closed economy savings are equal to ««««««at the equilibrium level of income.
Unit : 2, Group : 2 1.Investments (Right)

2.Wages
3.Income-Investments
4. Wages ±Consumption
359 1241309 . As the economy nears full capacity, the short-run aggregate supply curve
Unit : 2, Group : 2 1. becomes flatter.

2.becomes steeper. (Right)
3.shifts to the right
4.shifts to the left.
360 1241124 What will be the value of multiplier if MPC is 0.5 ?
Unit : 2, Group : 2 1.0.5

2.1
3.2 (Right)
4.5
361 1241331 Market equilibrium of a commodity is determined by
Unit : 2, Group : 2 1.Balancing of demand and supply position (Right)

2.Aggregate demand
3.Aggregate supply
4.Government intervention
362 1241095 TRAI stands for
Unit : 2, Group : 2 1.Trans Communication Regulatory Authority of India

2.Telecom Regulatory Authority of India (Right)
3.Telegraphic Regulatory Authority of India
4.Traffic Regulatory Authority of India
363 1241213 Which is the most volatile component of aggregate demand
Unit : 2, Group : 2
1.
investment
(Right)
2. government spending
3.
4.
Page 60 of 93
364 1241078 Structural unemployment is mainly due to
Unit : 2, Group : 2 1.Structural changes in the economy (Right)

2.Technological development
3.Growth in GDP
4.Population explosion
365 1241316 The ratio of the change in the equilibrium level of income to a change in some autonomous increase in spending is the
Unit : 2, Group : 2 1.elasticity coefficient.

2. multiplier. (Right)
3.automatic stabilizer.
4.marginal propensity of the autonomous variable.
366 1241126
The Indian economy is
Unit : 2, Group : 2
1.Capitalist
2.Socialistic
3.Mixed (Right)
4.Federal
367 1241061 Output level in the classical model can be affected by
Unit : 2, Group : 2 1.technological improvements.

(Right)
2.tax changes
3.money supply changes
4.
368 1241122 Which can be negative from the following?

2.APC
3.MPS (Right)
4.APS
369 1241186 What are Capital goods?
Unit : 2, Group : 2
1.Goods used for consumption in the production process

2.Goods such as tools, machinery, etc which are used to create final consumer goods (Right)
3.
4.
370 1241197 Keynes believed falling wages were not a solution to persistent unemployment because
Unit : 2, Group : 2
1.this would reduce the purchasing power of labourers as consumers. This in turn would bleaken firms¶prospects of selling more goods,
hence inducing them to cut their investment (and hence labour) demand. (Right)
2.wages would fall more than required to clear the labour market.
3.
4.
Page 61 of 93
371 1241183 When did the Great Depression hit the United States?
Unit : 2, Group : 2
1.1929 (Right)
2.1936
3.
4.
372 1241200 According to the Classical model, unemployment
Unit : 2, Group : 2
1. could not persist because wages would fall to eliminate the excess supply of labour. (Right)
2.could persist for long periods of time because wages are not flexible.
3.
4.
373 1241121 When K = 1, then
Unit : 2, Group : 2 1.MPC > 0

2.MPC < 1
3.MPC = 1
4.MPC = 0 (Right)
374 1241187 Intermediate goods are not included to calculate the final output because:
Unit : 2, Group : 2
1.their value is included in final goods so they are not added to avoid the problem of double counting (Right)
2.they have unknown value
3.
4.
375 1241123 Economy is at under employment equilibrium. What should Central Bank do?
Unit : 2, Group : 2 1.Increase Bank Rate

2.Increase CRR
3.Increase SLR
4.None of the above (Right)
376 1241206 According to the Classical economists, the economy
Unit : 2, Group : 2
1. is self correcting. (Right)
2. requires fine tuning to reach full employment.
3.
4.
377 1241027 Unemployment due to mismatch between skill possessed and present available jobs
Unit : 2, Group : 2 1.Cyclical unemployment

2.Structural unemployment (Right)
3.Frictional unemployment;
Page 62 of 93
378 1241302 The aggregate demand (AE) curve would shift down if
Unit : 2, Group : 2 1.government spending were increased.

2.taxes were increased. (Right)
3. the money supply were increased.
4.the interest rate decreased.
379 1241337 Which of these resources would be called as land in economics
Unit : 2, Group : 2 1.Coal mines of Bihar

2.Water resources of Uttaranchal
3.Mineral deposits of Jharkhand (Right)
4.All the three
380 1241001 If someone keeps some money for bad days, this demand for money is known by ««motive of money
Unit : 2, Group : 2 1. Speculative

2.Transaction
3.Precautionary (Right)
4. Store
381 1241399 The investment demand curve shows the relationship between the levels of:
Unit : 2, Group : 2
1.Investment and Consumption

2. Investment and Interest Rate (Right)
3.
4.
382 1241201 To get the economy out of a slump, Keynes believed that the government should
Unit : 2, Group : 2
1.decrease taxes and/or increase government spending.
(Right)
2.cut both taxes and government spending
3.
4.
383 1241318 The natural rate of unemployment is generally thought of as the
Unit : 2, Group : 2 1. ratio of the frictional unemployment rate to the cyclical unemployment rate.
2. sum of structural unemployment and cyclical unemployment.
3. sum of frictional unemployment and cyclical unemployment
4.sum of frictional unemployment and structural unemployment. (Right)
384 1241048 Which of the following is a cause of frictional unemployment?
Unit : 2, Group : 2 1.Non-availability of work due to strike and lock-out.

2.Temporary unemployment due to change over in job
3.Both (Right)
4.None
Page 63 of 93
385 1241211 group of modern economists who believe that markets clear very rapidly and that expanding the money supply will always increase prices rather than
employment are the
Unit : 2, Group : 2
1. New-Keynesians.
2.Keynesians
3. Monetarists. (Right)
4.
386 1241029 Which of these measures would not reduce natural rate of unemployment?
Unit : 2, Group : 2 1.Creation of more jobs

2.Reducing the age of superannuation
3.Hike in unemployment allowance (Right)
4. Employment oriented education system
387 1240978 How does a commercial bank create money
Unit : 2, Group : 3 1. By issuing ATM cards

2.By printing money
3.By lending a part of its deposits (Right)
4. Accepting deposits
388 1241114 Keynes theory of income and employment is of_____
Unit : 2, Group : 3 1.Short run (Right)

2.Long run
3.None of these
4.
389 1241113 Income multiplier is also know as
Unit : 2, Group : 3 1.Investment multiplier (Right)

2.Employment multiplier
3.Money multiplier
4.
390 862316 Easy monetary policy is known as
Unit : 3, Group : 1 1.contractionary policy

2.expansionary policy (Right)
3.commendatory policy
4.
391 1241073 Borrowings by Govt from abroad is known as......................
Unit : 3, Group : 1 1.internal debt

2.external debt (Right)
3.
4.
392 1241074 A..................occurs when Govt. spending exceeds Govt. revenue
Unit : 3, Group : 1 1.budget deficit (Right)

2.budget surplus
3.deficit financing
4.none
Page 64 of 93
393 851120 the amount of reserves which a commercial bank is required to hold is equal to
Unit : 3, Group : 1 1.the amount of its demand deposit

2.the sum of its demand deposits and time deposits.
3.its demand deposits multiplied by required reserve ratio. (Right)
4.
394 1241051 A certain percentage of bank deposits which banks are required to keep with RBI is called...................
Unit : 3, Group : 1 1.SLR

2.CRR (Right)
3.Repo rate
4.none
395 851085 when a bank loan is repaid the supply of money
Unit : 3, Group : 1 1.is constant

2.is decreased (Right)
3.is increased
4.none of these
396 851733 required reserves are calculated as
Unit : 3, Group : 1 1.(1/rd)D

2.rdD (Right)
3.(rd+(ER/D))D
4.
397 1241016 Which of these are quantitative credit control instruments of monetary policy?
a)bank rate policy
Unit : 3, Group : 1 b)cash reserve ratio
c)moral suasion
d)open market operations
1.a,b,c
2.a,b,d (Right)
3.b,c,d
4.a,b,c,d
398 1241067 When govt. expenditure is fully funded by tax revenue, it is known as.......................fiscal policy

2.expansionary
3.neutral (Right)
4.contractionary
Page 65 of 93
399 1241265 The Government Budget consists of which main component/s?
Unit : 3, Group : 1
a) Revenue Budget and Capital Budget
b) Capital Budget only
c) Revenue Budget only
1.a (Right)
2.b
3.c
4.d
400 1241003 ........................controls the entire banking system of country.
Unit : 3, Group : 1 1.SEBI

2.RBI (Right)
3.commercial banks
4.SBI
401 1241261 The process by which RBI or any Central bank protects the economy against adverse economic
Unit : 3, Group : 1 shocks is known as :
a) CRR
b) liberalization
c) statutory ratio
d) sterilization
1.a
2.b
3.c
4.d (Right)
402 864236 the money multiplier is negatively related to
Unit : 3, Group : 1 1.the currency check-able deposit ratio

2.the required reserve ration
3.both A and B (Right)
4.none of these
Page 66 of 93
403 1241004 ---------------------is the sole agency of note issuing int he country
Unit : 3, Group : 1 1.SBI

2.all of above
3.RBI (Right)
4.SEBI
404 1241011 Who formulates monetary policy in the country?

2.RBI (Right)
3.PNB
4.none
405 1241058 The RBI increases SLR to ----------------money suply in the economy.
Unit : 3, Group : 1 1.cant say

2.reduce (Right)
3.increase
4.
406 1241118 Which of these are secondary functions of money?
a) medium of exchange
Unit : 3, Group : 1 b) store of value
c) standard of deferred payments
1.a,b
2.b.c (Right)
3.a,c
4.a,b,c
407 1241068 When govt. spending exceeds tax revenue, it is known as.......................fiscal policy
Unit : 3, Group : 1 1.neutral

2.expansionary (Right)
3.contractionary
4.none
408 1241005 -----------------serves as a banker to the Govt and controls money supply in the country.

2.RBI (Right)
3.SEBI
4.all of above
409 1241012 Which of these are objectives of monetary policy?
Unit : 3, Group : 1 1.Full employment

2.economic growth
3.Price stability
Page 67 of 93
410 1241269 Which among the following could be said to be an 'Open Economy'?
Unit : 3, Group : 1
a) A nation that follows the Government regulations
b) A nation that trades with other nations in goods and services and financial assets
c) An economy that operates under government intervention
1.a
2.b (Right)
3.c
4.d
411 1241069 When govt. expenditure is less than tax revenue, it is known as.......................fiscal policy
Unit : 3, Group : 1 1.neutral

2.expansionary
3.contractionary (Right)
4.none
412 1241267 Whenever the government spends more than it collects through revenue, the resulting imbalance is
Unit : 3, Group : 1 known as :
a) Public deficit
b) Market deficit
c) Government deficit
d) Budget deficit
1.a
2.b
3.c
4.d (Right)
Page 68 of 93
a)bank rate policy
c)moral suasion
d)Statutory Liquidity Ratio
e)Credit ceiling
1.a,b,c
2.a,b,d (Right)
3.c,d,e
4.a,b,d,e
5.b,c,d,e
6.a,b,c,d,e
414 886555 Fiscal policy is regulated by..........
Unit : 3, Group : 1 1.Central bank

2.Govt. Of the country (Right)
3.Both a and b
4.None of these
415 1241052 If RBI increases CRR, money supply in the economy will...................
Unit : 3, Group : 1 1.increase

2.decrease (Right)
3.cant say
4.
416 864223 the money multiplier is smaller than the simple deposit multiplier when
Unit : 3, Group : 1 1.the excess reserves ration is greater than Zero

2.the excess reserves ration is Zero
3.the currency deposit ratio is greater than Zero
4.both A and C (Right)
417 1241056 Every bank is required to maintain a certain percentage of liquid assets with themselves at any point of time, which is a certain percentage of time and
demand deposits. It is known as..................
Unit : 3, Group : 1
1.repo rate
2.SLR (Right)
3.none
4.CRR
418 1241115 Money is an instrument that serves as a:
Unit : 3, Group : 1 1.medium of exchange

2.measure of value
3.store of value
419 886560 Total number of commercial banks in India are
Unit : 3, Group : 1 1.28

2.27
3.19
4.39
5.None of these (Right)
Page 69 of 93
420 1241264 The function of a government by which it seeks to seek a balance of employment, demand-supply, and
Unit : 3, Group : 1 inflation, is known as:
a) Distribution function
b) Allocation function
c) Stabilization
d) Protection
1.a
2.b
3.d
4.c (Right)
421 1241053 If RBI decreases CRR, money supply in the economy will...................
Unit : 3, Group : 1 1.increase (Right)

2.decrease
3.cant say
4.
422 1241119 Which of these are secondary functions of money?
c) transfer of value
1.a,b
2.b,c (Right)
3.a,b,c
4.
423 876212 full employment is a situation when
Unit : 3, Group : 1 1.involuntary unemployment is zero (Right)

2.voluntary unemployment is zero
3.both A and B
4.none of these
424 1241010 Who performs the Clearing House function?
Unit : 3, Group : 1 1.RBI (Right)

2.SEBI
3.SBI
4.PNB
425 1241071 The taxes which are directly paid to the Govt. by the taxpayer are known as....................
Unit : 3, Group : 1 1.direct taxes (Right)

2.indirect taxes
3.cant say
4.
Page 70 of 93
426 1241050 Decrease in bank rate by RBI.................credit volume by banks.
Unit : 3, Group : 1 1.increases (Right)

2.decreases
3.cant say
4.
427 1241116 Which of these are primary functions of money?
c) measure of value
1.a,b
2.b,c
3.a,c (Right)
4.a,b,c
428 886559 Public debt is monitorise under ________
Unit : 3, Group : 1 1.Fiscal policy

2.Monetary policy
3.Both A and B (Right)
4.None of these
429 886557 Public debt is the loan taken by govt. From its own ____________
Unit : 3, Group : 1 1.Public

2.Banks
3.From foreign countries
4.All the above (Right)
5.None of these
430 851121 which of the following would reduce the money supply?
Unit : 3, Group : 1 1.commercial banks loan out excess reserves

2.commercial banks sell government bonds to the public (Right)
3.a check clears from Bank A to Bank B
4.
431 851739 the money multiplier is
Unit : 3, Group : 1 1.(1+(C/D))/(rd+ER/D+(C/D)) (Right)

2.(1+(C/D))/(rd+ER/D*(C/D))
3.(1-(C/D))/(rd+ER/D+(C/D))
4.
432 858209 deposit multiplier is also known as
Unit : 3, Group : 1 1.credit multiplier (Right)

2.money multiplier
3.investment multiplier
4.
Page 71 of 93
433 1241007 Which of these is known as Banker's Bank?

2.PNB
3.RBI (Right)
4.SBI
434 1241057 The RBI reduces SLR to .....................money supply in the economy.

2.decrease
3.cant say
4.
435 851495 OPEN- MARKET operation refers to
Unit : 3, Group : 1 1.purchases of stocks in the exchange

2.the purchase or sale of govt. securities by the central bank (Right)
3.central bank lending to commercial banks
4.
a)bank rate policy
c)moral suasion
1.a,b,c
2.only a
3.only b
4.a&b (Right)
5.b&c
6.a&c
437 1241006 RBI is the .....................bank of all banks in the country.

2.apex (Right)
3.secondary
4.foremost
438 1241259 The RBI can decrease the money supply in the market by:
Unit : 3, Group : 1
a) selling government securities
b) buying government securities
c) borrowing money from commercial banks
d)none
1.a (Right)
2.b
3.c
4.d
Page 72 of 93
439 1241273 An increase in foreign income generally leads to:
Unit : 3, Group : 1
a) increased exports, increased domestic output
b) decreased exports, increased domestic output
c) decreased exports, decreased domestic output
d) increased exports, decreased domestic output
1.a (Right)
2.b
3.c
4.d
440 1241260 By increasing the 'Bank Rate', the RBI can:
Unit : 3, Group : 1
a) provide incentives to commercial banks to lend more to public
b) provide incentives to commercial banks to lend less to public
c) increase the money supply in the market
1.a
2.b (Right)
3.c
4.d
441 876196 High powered money, H = Cp + ___________
Unit : 3, Group : 1 1.cash reserve of currency with the banks (Right)

2.currency held by public
3.currency with public
4.
Page 73 of 93
442 1241272 Which among the following is taken as the real measure of a country's international competitiveness?
Unit : 3, Group : 1
a) Real exchange rate
b) Nominal exchange rate
c) Superfluous exchange rate
1.a (Right)
2.b
3.c
4.d
443 864286
If the aggregate supply curve is vertical in the long-run, _______ has (have) an effect on the aggregate output in the long run
Unit : 3, Group : 1
1.sometimes monetary and/or fiscal policy

2.monetary policy does but fiscal policy does not
3.monetary policy does not but fiscal policy does
4.neither monetary policy nor fiscal policy (Right)
444 1241018 Which of these are qualitative credit control instruments of monetary policy?
a)bank rate policy
Unit : 3, Group : 1 b)credit authorisation scheme
c)moral suasion
1.a,c
2.b.c.a
3.a,b
4.b,c (Right)
445 1241008 If a commercial bank fails to get loan from anywhere, it may approach the Central Bank (RBI) as .................
Unit : 3, Group : 1 1.Lender of last resort (Right)

2.Banker's Bank
3.monopolist over note issue
4.all of above
446 1241075 A..................occurs when Govt. revenue exceeds Govt. spenidng
Unit : 3, Group : 1 1.budget deficit

2.budget surplus (Right)
3.none
4.
447 1241065 ------------------is the rate at which RBI borrows from commercial banks.
Unit : 3, Group : 1 1.repo rate

2.reverse repo rate (Right)
3.bank rate
4.none
Page 74 of 93
448 876199 money multiplier is the degree to which money supply is expended as a result of the increase in __________
Unit : 3, Group : 1 1.high powered money (Right)

2.credit money
3.deposit money
4.
449 851746 which of the following will increase the money multiplier?
Unit : 3, Group : 1 1.a decrease in C/D

2.an increase in ER/D
3.an increase in rD (Right)
4.
450 864303
The ___________ lag for fiscal policy is generally ______ than it is for monetary policy.
Unit : 3, Group : 1
1.recognition; shorter
2.recognition; longer
3.implimantation; shorter
4.implimantation; longer (Right)
451 876220 economic stability requires cyclical fluctuations

2.false
3.not related with economic stability
4.
452 1241020 Increase in bank rates by RBI .........................cost of borrowing
Unit : 3, Group : 1 1.increases (Right)

2.decreases
3.sometimes increase, sometimes decrease
4.none
453 1241063 RBI raises the repo rate to ----------------- money supply in the economy.
Unit : 3, Group : 1 1.increase

2.reduce (Right)
3.cant say
4.
454 1241070 Which of these are objectives of fiscal policy?
Unit : 3, Group : 1 1.efficient allocation of financial resources

2.reduction in inequality of income and wealth
3.capital formation
Page 75 of 93
455 1241270 The records of exports and imports in goods and services and transfer payments is known as
Unit : 3, Group : 1
a) Current account
b) Budget surplus
c) Economic leakage
d) degree of openness
1.a (Right)
2.b
3.c
4.d
456 1241060 The RBI -----------------securities to contract the flow of credit in the economy.
Unit : 3, Group : 1 1.buys

2.sells (Right)
3.cant say
4.
457 1241062 The.........................is the minimum lending rate of Central Bank at which it rediscounts first class bills of exchange and govt. securities.
Unit : 3, Group : 1 1.repo rate (Right)

2.reverse repo rate
3.CRR
4.none
458 851126 if the reserve ratio were 100 percent, the value of the monetary multiplier would be
Unit : 3, Group : 1 1.0

2.1 (Right)
3.100
4.10
459 858205 monetary policy is also known as
Unit : 3, Group : 1 1.deposit policy

2.credit policy (Right)
3.new policy
4.all the above
460 889021 credit multiplier is reciprocal of ________
Unit : 3, Group : 1 1.required reserve ratio (Right)

2.volume of deposit
3.time deposit
4.
Page 76 of 93
461 1241268 The idea that government's fiscal policy can be used to stabilize the level of output and employment
Unit : 3, Group : 1 can be attributed to which of the following economists:
a) Frederich Hayek
b) Ludwig von Mises
c) Frederic Bastiat
d) John Maynard Keynes
1.b
2.c
3.d (Right)
4.a
462 1241064 Central bank lowers repo rate to ....................money supply in the economy.

2.reduce
3.cant say
4.
463 1241066 ----------------policy is concerned with raising of Govt revenue and incurring Govt expenditure
Unit : 3, Group : 1 1.Monetary

2.Fiscal (Right)
3.Govt.
4.none
464 1241117 Which of these are primary functions of money?
Unit : 3, Group : 1 b) transfer of value
c) measure of value
1.a,b
2.b,c
3.a,c (Right)
4.a,b,c
465 864251 the money multiplier is ...........
Unit : 3, Group : 1 1.negatively related to the currency- check-able deposit ratio (Right)
2.positively related to holdings of exchange reserve
3.all the above
4.
Page 77 of 93
a)bank rate policy
c)moral suasion
d)Credit authorisation scheme
1.a,b (Right)
2.c.d
3.a,b,c,d
4.b,c,d
467 1241017 Which of these are qualitative credit control instruments of monetary policy?
a)bank rate policy
c)moral suasion
d)credit authorisation scheme
1.a,b
2.c,d (Right)
3.a,b,c
4.b,c,d
468 851729 the money multiplier shows
Unit : 3, Group : 1 1.the change in the money supply from a Rs 1.00 change in savings accounts
2.the change in the money supply from a Rs 1.00 change in bank loans (Right)
3.the change in the money supply from a Rs 1.00 change in checking accounts
4.
469 1241054 The ratio of liquid assets to time and demand liabilitites is known as................
Unit : 3, Group : 1 1.CRR

2.SLR (Right)
3.repo rate
4.none
470 1241258 The RBI can increase the money supply in the market by:
Unit : 3, Group : 1
a) selling government securities
b) buying government securities
c) borrowing money from commercial banks
1.a
2.b (Right)
3.c
4.d
Page 78 of 93
471 851757 the consumption function shows the relation between consumer expenditure and
Unit : 3, Group : 1 1.the interest rate

2.the tax rate
3.savings
472 1241072 Govt. borrowings within the country is known as....................
Unit : 3, Group : 1 1.internal debt (Right)

2.external debt
3.
4.
473 1241271 The ratio of foreign rates to domestic rates measured in the 'same' currency is known as:
Unit : 3, Group : 1
a) Real exchange rate
b) Nominal exchange rate
c) Superfluous exchange rate
1.a (Right)
2.b
3.c
4.d
474 863233 credit control is known as
Unit : 3, Group : 1 1.regulatory policy of central bank (Right)

2.development act by central bank
3.promotional policy by central bank
4.function of commercial bank
475 889014 new deposit = 1/ RR * change in _________
Unit : 3, Group : 1 1.volume of deposit (Right)

2.volume of time deposit
3.volume of money
4.none of these
476 851127 the monetary authorities can change the money supply by
Unit : 3, Group : 1 1.changing bank reserves through the sale or purchase of govt. securities
2.changing the quantities of required and excess reserves by altering the legal reserve ratio
4.
Page 79 of 93
477 851752 according to keynes, what is the most important determinant of household's spending on goods and services?
Unit : 3, Group : 1 1.the price level

2.the interest rate
4.autonomous consumptio
478 1241009 Central Bank is the --------------------- of nation's foreign exchange.
Unit : 3, Group : 1 1.lender

2.custodian (Right)
3.last resort
4.none
479 1241256 What is the Cash Reserve Ratio (CRR)?
Unit : 3, Group : 1
a) the fraction of the deposits that commercial banks lend to the customers
b) the fraction of the deposits that RBI must keep with commercial banks
c) the fraction of the deposits that commercial banks must keep with RBI
1.a
2.b
3.c (Right)
4.d
480 851726 an increase in the money supply will
Unit : 3, Group : 1 1.lower interest rates and lower the equilibrium GDP
2.lower interest rates and increase the equilibrium GDP (Right)
3.ower interest rates and decrease the equilibrium GDP
4.none of these
481 1241266 Loans raised by the government from the public are known as:
Unit : 3, Group : 1
a) Corporate borrowings
b) Common borrowings
c) Market borrowings
d) Private borrowings
1.a
2.b
3.c (Right)
4.d
Page 80 of 93
482 1241049 Increase in bank rate by RBI.....................credit volume to banks.
Unit : 3, Group : 1 1.increases

2.decreases (Right)
3.cant say
4.
483 1241402 Imports for any economy are considered as:
Unit : 3, Group : 2
1.Leakages (Right)
2. Brain Drain
3.
4.
484 1240985 How does a commercial bank create money
Unit : 3, Group : 2 1.By printing money

2.By lending a part of its deposits (Right)
3.By issuing ATM cards
4.Accepting deposits
485 1240996 FERA has been replaced by
Unit : 3, Group : 2 1.FINA

2.FEMA (Right)
3.FENA
4.MRTP
486 1240973 Which of the following is near money?
Unit : 3, Group : 2 1.Bill of exchange

2. Saving bonds
3.Gilt edged securities
487 1241224 An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the:
Unit : 3, Group : 2
1.Revenue from Value Added Tax (Right)

2.Level of company profits
3.
4.
488 1241227 Which is high powered money?
Unit : 3, Group : 2
1.Mo (Right)
2.MI
3.M2
4.
Page 81 of 93
489 1240976 SIDBI is a subsidiary bank of

2.HDFC
3.ICICI
4.IDBI (Right)
490 1241312 If the quantity of money demanded is less than the quantity of money supplied, then the interest rate will
Unit : 3, Group : 2 1.decrease. (Right)

2. not change.
3. increase.
4.either increase or decrease, depending on the amount of excess demand.
491 1241203 Government policies that focus on increasing production rather than demand are called:
Unit : 3, Group : 2
1.fiscal policies.
2.supply-side policies. (Right)
3.
4.
492 1241210 Neo-Classical theories were an attempt to explain
Unit : 3, Group : 2
1.the stagflation of the 1970s. (Right)
2. why policy changes that are perceived as permanent have more of an impact on a person's behaviour than policy changes that are
viewed as temporary.
3.
4.
493 1241218 The index used most often to measure inflation is the
Unit : 3, Group : 2 1.consumer price index (Right)

2.wholesale price index.
3.
4.
494 1241099 Green revolution was successful because of use of ««Seeds
Unit : 3, Group : 2 1.HYV (Right)

2.IMPORTED
3.AUSTRALIAN
4.LOCAL SEEDS
495 1240999 RBI was nationalized in
Unit : 3, Group : 2 1.june 1947

2.jan 1949 (Right)
3.march 1954
4.april 1936
496 1240972 RBI check inflation by
Unit : 3, Group : 2 1.Increasing bank rate

2.Increasing CRR
3. Both (Right)
4.none
Page 82 of 93
497 1241193 A recession is
Unit : 3, Group : 2
1. a period of declining prices.
2.a period during which aggregate output declines (Right)
3.
4.
498 1241357 In a closed economy savings are equal to ««««««at the equilibrium level of income.
Unit : 3, Group : 2 1.Investments

2.wages (Right)
3.income investments
4.wages consumption
499 1241229 Disposable Income is obtained by subtracting _____________taxes from personal income:
Unit : 3, Group : 2
1. Disposable Income is obtained by subtracting _____________taxes from personal income:
1. Indirect Taxes
2. Direct Taxes
3. Subsidies
4. None
1. Disposable Income is obtained by subtracting _____________taxes from personal income:
1. Indirect Taxes
2. Direct Taxes
3. Subsidies
4. None
1.Indirect Taxes
2.Direct Taxes (Right)
3.
4.
500 1240966 In the Union Budget, profits from public sector undertakings are taken under
Unit : 3, Group : 2 1.Revenue receipts

2.Capital receipts
3.Monetized receipts (Right)
4.Planned expenditure
501 1240983 Which of the following function does money serve when used to purchase or sell different goods and services?
Unit : 3, Group : 2 1.Store of value

2.Medium of exchange (Right)
3.Standard of value
4.Display of power
Page 83 of 93
502 1241000 Which of these are not the duties of EXIM Bank?
Unit : 3, Group : 2 1.Lending/Guarantee

2.Advisory
3. Promotional
4.Trading activities (Right)
503 1240994 Repo Market means
Unit : 3, Group : 2 1.A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt
instrument (Right)
2.A money market instrument which helps in collateral long term borrowing and lending through sale and purchase operation in debt
instrument
3.
4.
504 1241228 There are _________major instruments of monetary policy:
Unit : 3, Group : 2
1.3
2.4 (Right)
3.5
4.6
505 1240977 RBI check inflation by
Unit : 3, Group : 2 1. Increasing bank rate

2.Increasing CRR
3.BOTH (Right)
4.NONE
506 1241174 Which one of the following is the difference between Narrow Money & Broad Money?
Unit : 3, Group : 2
1.DD
2.TD
3.POST OFFICE DEPOSITS (Right)
4.OD
507 1240941 Deflation is a state when
Unit : 3, Group : 2
1. Prices are falling (Right)
2.Consistent increase in prices
3.Collapse of sense
4.Fall in GDP
508 1241305 . If the economy is operating at potential GDP, an increase in the money supply will lead to
Unit : 3, Group : 2 1.structural inflation

2.demand-side inflation. (Right)
3.supply-side inflation
4.stagflation.
Page 84 of 93
509 1240984 Which of the following function does money serve when used to measure the prices of different goods and services?
Unit : 3, Group : 2 1.Store of value

2.Medium of exchange
3.Display of power
4.Standard of value (Right)
510 1240997 Exchange Control and Management is done by
Unit : 3, Group : 2 1.RBI (Right)

2.As per Defence of India Act
3.SBI
4.ADBI
511 1241226 The war in Iraq sent oil prices spiraling upwards, resulting in an increase in the overall price level. This is an example of which type of inflation?
Unit : 3, Group : 2
1.Cost-push (Right)
2.Demand-pull
3.
4.
512 1240975 Which of these is not a function of money?
Unit : 3, Group : 2 1.Means of exchange

2.Store value
3.Measurement of value
4.Power indicator (Right)
513 1241204 Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are
Unit : 3, Group : 2
1. sticky prices. (Right)
2. fixed prices.
3. regulatory prices.
4.
514 1241179 Which among the following is not the Legal Tender Money?
Unit : 3, Group : 2
1.Account Payables/Promissory Notes (Right)
2.Cheques
3.
4.
515 1241396 If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then
Unit : 3, Group : 2 1.If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative,
then
(a) It is a case of BoP surplus ;
(b) It is a case of BoP surplus where the official reserve account is in surplus;
It is a case of BoP deficit ; (d) It is case of BoP disequilibrium (Right)
2.It is a case of BoP surplus where the official reserve account is in surplus
3.It is a case of BoP deficit
4. It is case of BoP disequilibrium
Page 85 of 93
516 1241398 Per capita income is obtained by dividing National Income by:
Unit : 3, Group : 2 1.Total population of that country. (Right)

2.Total labor Force in the Country
3.
4.
517 1241198 The practice of using fiscal and monetary policy to stabilise the economy is known as
Unit : 3, Group : 2
1.fine tuning of demand (Right)
2.supply side economics
3.
4.
518 1241317 Expansionary monetary policy
Unit : 3, Group : 2 1.tends to lead to an appreciation of a nation's currency.

2. usually has no effect on a currency's exchange value.
3.tends to lead to a depreciation of the currencies of other nations.
4. tends to lead to a depreciation of a nation's currency. (Right)
519 1241192 Deflation is
Unit : 3, Group : 2
1. a decrease in the overall level of economic activity.
2.a decrease in the overall pricelevel (Right)
3.
4.
520 1240974 . Which of the following is the oldest system of money?
Unit : 3, Group : 2 1.Barter (Right)

2.Plastic money
3.Credit money
4.gold
521 1240943 Cost push inflation arises due to
Unit : 3, Group : 2
1. Persistent rise in factor cost (Right)
2.Mismatch between demand and supply of commodities
3. Combine phenomena of demand pull and cost-push inflation.
4.Increase in price of precious metal
522 1241311 To lower interest rates, the Reserve bank of India could
Unit : 3, Group : 2 1.buy securities (Right)

2.decrease the chartered banks' reserves. c. decrease the money supply
3. raise the treasury bill rate.
4. raise the reserve requirement
Page 86 of 93
523 1241397 If the income elasticity of money demand and the Keynesian multiplier, both increase in an economy (ceteris paribus), how will the relative
effectiveness of monetary and fiscal policy change?
Unit : 3, Group : 2
1.Fiscal policy will become relatively less effective than monetary policy (Right)
2.Fiscal policy will become relatively more effective than monetary policy
3.
4.
524 1241199 according to Classical models, the level of employment is determined primarily by
Unit : 3, Group : 2
1. the level of aggregate supply in the economy
(Right)
2. the level of prices.
3.
4.
525 1241103 Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on
Unit : 3, Group : 2
1.Increase in GDP
2. Inflationary pressure (Right)
3.More equitable distribution of income and wealth
4. Greater employment opportunity
526 1240960 Repo transactions are allowed in
Unit : 3, Group : 2 1. Government securities / Treasury bills of all maturity

2. State Government securities
3.PSU bonds/Private corporate bonds
4.ALL OF THESE (Right)
527 1241355 Which of these are outside the domain of macro economics
Unit : 3, Group : 2 1. Balance of payment and trade

2.Economic growth
3.Consumer behaviour (Right)
4.National income
528 1241364 In a closed economy savings are equal to which of the following at the equilibrium level of income.
Unit : 3, Group : 2 1.Investments

2.wages (Right)
3.income -investments
4.wages- consumption
529 1240964 Nationalization of Banks took place in
Unit : 3, Group : 2 1.JULY 1969 (Right)

2.FEB 1977
3.
4.
Page 87 of 93
530 1240981 If the country is passing through recession, the RBI would
Unit : 3, Group : 2 1.buy bonds

2.reduce CRR
3.EASE OUT BANK RATE
4.ALL (Right)
531 1241306 Which of the following actions is an example of expansionary fiscal policy?
Unit : 3, Group : 2 1.a decrease in welfare payments

2. a purchase of government securities in the open market
3. a decrease in the Bank rate
4. a decrease in the corporate profits tax rates (Right)
532 1241177 Which of the following is a quantitative measure to control money supply in the country?
Unit : 3, Group : 2
1.Moral Suasion
2.Rationing of Credit (Right)
3.
4.
533 1241401 Fiscal policy is the government programme with respect to it¶s:
Unit : 3, Group : 2
1.Expenditure and Tax revenue (Right)
2.Unemployment Reduction
3.
4.
534 1240982 If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the
above three
Unit : 3, Group : 2
1.SELL BONDS
2.INCREASE CRR
3.HIKE BANK RATE
4.ALL (Right)
535 1241105 Inflationary conditions may co-exist with which of the following situation
Unit : 3, Group : 2 1.Increase in factor cos

2.Increase in employment opportunities
3.Growth in GDP and imports
536 1240937 Deficit financing means
Unit : 3, Group : 2 1.Financing budgetary deficit by borrowing

2.Financing budgetary deficit by printing money
3.both (Right)
4.none
537 1241314 A bank has excess reserves to lend but is unable to find anyone to borrow the money.
Unit : 3, Group : 2 1.reduce (Right)

2. increase
3.have no effect on
4.double 10
Page 88 of 93
538 1240979 Manipulation in CRR enables the RBI to ««
Unit : 3, Group : 2 1.Influence the lending ability of the commercial banks (Right)
2.Check unemployment growth
3. Check poverty
4.Increase GDP
539 1240986 Which of these affects the demand for money?
Unit : 3, Group : 2 1.Real income

2.Price level
3.Rate of interest
4.all (Right)
540 1240939 Which of these is one of the causes of inflation?
Unit : 3, Group : 2 1.increase in public expenditure

2.Deficit financing
3.Increase in administrative prices
4.All the three
(Right)
541 1241175 Which one of the following is not the function of Money.
Unit : 3, Group : 2
1.Medium of exchange
2.Store of value (Right)
3.Allocation of Resources
4.Money as a unit of Measurement
542 1241208 Keynes¶explanation for low firm investment during the Great Depression was
Unit : 3, Group : 2
1. high savings, which left consumers with less money to spend on goods and serviced produced by firms (Right)
2. permanent change in Europe¶s corporate ownership structures.
3.
4.
543 1241307 When economists refer to "tight" monetary policy, they mean that the Bank of Canada is taking actions that will
Unit : 3, Group : 2 1.increase the demand for money

2.decrease the demand for money
3.expand the supply of money
4.expand the supply of money (Right)
544 1240957 Demand pull inflation rises due to
Unit : 3, Group : 2 1.Persistent rise in factor cost

2.Mismatch between demand and supply of commodities (Right)
3.Combine phenomena of demand pull and cost-push inflation
4. Increase in Price of precious metal
Page 89 of 93
545 1241176 Which of the following Banks/ Institution acts as custodian of nation¶s foreign exchange reserve.
Unit : 3, Group : 2
1.SBI
2.RBI
3.IFCI (Right)
4.
546 1241308 Firms react to unplanned increases in inventories by
Unit : 3, Group : 2 1.reducing output (Right)

3.increasing planned investment.
4.increasing consumption.
547 1240980 If RBI sucks excess money into circulation this will effect
Unit : 3, Group : 2 1.BOTH (Right)

2.M2
3.M1
4.NONE
548 1241214
Unit : 3, Group : 2 Which of the following is not an obvious or direct determinant of a country¶s imports
8. Which of the following is not an obvious or direct determinant of a country¶s imports

A. real exchange rate
B. income
C. tariff rates
D. interest rate

B. income
C. tariff rates
D. interest rate

B. income
C. tariff rates
D. interest rate

B. income
C. tariff rates
D. interest rate
1. interest rate
(Right)
2. real exchange rate
3.
4.
Page 90 of 93
549 1241178 Pick up the odd one
Unit : 3, Group : 2
1.Bank rate
2.CRR
3.Open market opertions (Right)
4.Moral suasion
550 1241303 Which of the following actions is an example of expansionary fiscal policy?
Unit : 3, Group : 2 1.a decrease in welfare payments

2.a purchase of government securities in the open market
3.a decrease in the Bank rate
4.a decrease in the corporate profits tax rates (Right)
551 1241301 In stagflation
Unit : 3, Group : 2
1. potential output of the economy declines.

2.the inflation rate is increasing because of rising demand. (Right)
3.the output gap is negative.
4.
552 1240962 CRR is used to
Unit : 3, Group : 2 1.Combat inflation (Right)

2.Check black money
3.
4.
553 1241219 If the prices of all inputs seem to be rising, can you be absolutely sure that it is cost-push inflation?
Unit : 3, Group : 2 1.No, because such a situation can also be caused by particular demand pressures in the economy. (Right)
2.Yes, because this is exactly what happens in stagflation.
3.
4.
554 1241400 The situation in which the imports are greater than exports is termed as:
Unit : 3, Group : 2
1.Trade Deficit (Right)
2.Budget Surplus
3.
4.
555 1240998 Which of these terms are/is appropriate for RBI?
Unit : 3, Group : 2 1.Banker¶s Bank (Right)

2.Banker¶s to the Government
3.Both
4.None
Page 91 of 93
556 1241315 Banks can create money
Unit : 3, Group : 2 1.only by illegally printing additional dollar bills.

2. by paying interest to their depositors.
3.by making loans that result in additional deposits. (Right)
4.by offering financial services, such as stick market brokerage.
557 1240959 India is a recipient of loan from which of these agencies
Unit : 3, Group : 2 1.World bank

2.IMF (Right)
3.IDA
4.ALL OF THESE
558 1241209 Rapid increases in the price level during periods of recession or high unemployment are known as
Unit : 3, Group : 2
1. stagnation. (Right)
2. stagflation.
3.
4.
559 1240963 SLR stands for
Unit : 3, Group : 2 1.Short liquid rupee

2.Statutory liquid ratio (Right)
3.
4.
560 1241313 . If the interest rate falls, then
Unit : 3, Group : 2 1.bond prices will remain the same

2. bond prices will rise (Right)
3.bond prices will fall
4.
561 1241109 Deposit multiplier is also known as
Unit : 3, Group : 3 1.Money multiplier

2.Credit multiplier (Right)
3.Investment multiplier
4.
562 1241108 An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing
Unit : 3, Group : 3
1.a movement along the AS curve; cost-push inflation
2.a leftward shift in the AS curve; demand-pull inflation
3.a leftward shift in the AS curve; cost-push inflation (Right)
4.
563 1241144 according to .......... " Money is what money does".
Unit : 3, Group : 3 1.kent

2.keynes
3.robertson
4.prof. walker (Right)
Page 92 of 93
564 1241148 deposit multiplier is also known as....
Unit : 3, Group : 3 1.credit multiplier (Right)

2.money multiplier
3.investment multiplier
4.employment multiplier
565 1241112 Bank rate is same as market rate.
Unit : 3, Group : 3 1.True

2.False (Right)
3.
4.
566 1241146 deposit money is also known as ......
Unit : 3, Group : 3 1.digital money

2.credit money (Right)
3.paper money
4.
567 1241111 Credit creation is the ____________ function of commercial banks
Unit : 3, Group : 3 1.Regulatory (Right)

2.Promotional
3.Development
4.
568 1241143 credit creation process is done by...
Unit : 3, Group : 3 1.central bank

2.commercial bank (Right)
3.cooperative bank
4.development bank
569 1241147 what are the primary function of money?
Unit : 3, Group : 3 1.medium of exchange

2.measure of value
3.above two (Right)
4.none of these
570 1241107 a decrease in aggregate supply can lean to
Unit : 3, Group : 3 1.unemployment

2.demand pull inflation
3.cost push inflation (Right)
4.prosperity
571 1241110 Credit control is regulated by
Unit : 3, Group : 3 1.Govt of the country

2.Commercial banks
3.Central banks (Right)
4.
Page 93 of 93
572 1241145 which is the primitive form of money?
Unit : 3, Group : 3 1.paper money

2.commodity money (Right)
3.metallic money
4.

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Question Details of Subject :QUIZ-HET-251

QNo Question Id Question Description

Unit : 1, Group : 1 1.200 (Right)

Unit : 1, Group : 1 1.national capital

Unit : 1, Group : 1 1.NFIA is Zero (Right)

Unit : 1, Group : 1 1.rent

Unit : 1, Group : 1 1.open economy (Right)

Unit : 1, Group : 1 1.cant say

Unit : 1, Group : 1 1.Primary

Unit : 1, Group : 1 1.is (Right)

Unit : 1, Group : 1 1.net factor income from abroad (Right)

Unit : 1, Group : 1 1.are

Unit : 1, Group : 1 1.Income-disposal (Right)

Unit : 1, Group : 1 1.is

Unit : 1, Group : 1 Which of the following denotes an underdeveloped economy?

a. High level of inequalities

Unit : 1, Group : 1 1.NFIA

Unit : 1, Group : 1 1.are

Unit : 1, Group : 1 1.real flow (Right)

Unit : 1, Group : 1 1.Indirect taxes

Unit : 1, Group : 1 1.GDP (Right)

Unit : 1, Group : 1 1.subsidies (Right)

Unit : 1, Group : 1 1.profit (Right)

Unit : 1, Group : 1 1.self-employed persons (Right)

Unit : 1, Group : 1 1.earned (Right)

Unit : 1, Group : 1 1.Private final consumption exp (Right)

Unit : 1, Group : 1 1.true (Right)

1.Adam Smith (Right)

Unit : 1, Group : 1 1.true (Right)

Unit : 1, Group : 1 1.compensation of employees

Unit : 1, Group : 1 1.200

Unit : 1, Group : 1 1.NDP at F.C

Unit : 1, Group : 1 1.net indirect taxes (Right)

Unit : 1, Group : 1 1.Private final consumption expenditure

Unit : 1, Group : 1 1.Depreciation (Right)

Unit : 1, Group : 1 1.net indirect taxes (Right)

Unit : 1, Group : 1 1.yes

Unit : 1, Group : 1 1.true (Right)

Unit : 1, Group : 1 1.exports-imports (Right)

Unit : 1, Group : 1 1.NNP at MP (Right)

Unit : 1, Group : 1 1.200 (Right)

Which of the following is/are true?

Unit : 1, Group : 1 1.it is not a factor income (Right)

Unit : 1, Group : 1 1.Value of output (Right)

Unit : 1, Group : 1 1.closed economy

Unit : 1, Group : 1 1.closed economy

Unit : 1, Group : 1 1.compensation of employees (Right)

Unit : 1, Group : 1 1.is not

Unit : 1, Group : 1 1.are (Right)

a) households, firms, government, and demand-supply

Unit : 1, Group : 1 1.real GNP (Right)

Unit : 1, Group : 1 1.capital formation

Unit : 1, Group : 1 1.NFIA (Right)

Unit : 1, Group : 1 1.over-estimation (Right)

Unit : 1, Group : 1 1.rent

Unit : 1, Group : 1 1.depreciation

Unit : 1, Group : 1 1.true (Right)

Unit : 1, Group : 1 1.capital stock produced during the year

Unit : 1, Group : 1 1.NFIA is Zero

Unit : 1, Group : 1 1.Private income (Right)

Unit : 1, Group : 1 1.national capital

Unit : 1, Group : 1 1.production