Micro Economics 2 Set 11

Bachelor of Arts in Economics (BA Economics)

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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 11

Q1 | ‘Stagflation’ is a situation where the economy faces
  • Inflation
  • Stagnation
  • Inflation as well as stagnation
  • None of the above
Answer: Stagnation
Q2 | Which of the following is not a function of a commercial bank
  • Accepting deposits
  • Issuing currency
  • Advancing loans
  • Credit creation
Answer: Advancing loans
Q3 | The RBI set up in the year
  • 1921
  • 1935
  • 1947
  • 1951
Answer: 1935
Q4 | Which of the following represents the major functions of the central bank
  • Note issuing agency
  • Controller of credit
  • Banker to the government
  • All of the above
Answer: All of the above
Q5 | Find the odd man out
  • Bank rate policy
  • Taxation
  • Open market operation
  • Variable reserve ratio
Answer: Open market operation
Q6 | Bank rate refers to
  • Discount rate
  • Market rate
  • Rediscount rate
  • None of the above
Answer: Market rate
Q7 | Open market operation influences
  • The reserves of commercial banks
  • The market rate of interest
  • Both A and B
  • None of the above
Answer: Both A and B
Q8 | Which of the following is an anti-deflationary monetary policy
  • Purchase of government securities from commercial banks and from the public
  • Sale of government securities from commercial banks and from the public
  • Raising the cash reserve ratio
  • All of the above
Answer: Purchase of government securities from commercial banks and from the public
Q9 | Let the cash reserve ratio is 12%. Then the value of credit multiplier will be
  • 8.0
  • 8.3
  • 10
  • 12
Answer: 8.3
Q10 | Inflation represents:
  • fall in price level
  • increase value of money
  • decrease value of money
  • None
Answer: decrease value of money
Q11 | Who told Inflation is too much of money chasing too few goods:
  • Coulbourn
  • Keynes
  • Friedman
  • Samuelsson
Answer: Coulbourn
Q12 | Among the following which is not a feature of inflation?
  • long term process
  • state of disequilibrium
  • dynamic in nature
  • non monetary phenomenon.
Answer: non monetary phenomenon.
Q13 | Deflation means:
  • falling price level
  • rise in price level
  • increase value of money
  • None
Answer: falling price level
Q14 | Only Money Matters is Propounded by:
  • Keynesians
  • Monetarists
  • Classicals
  • Neo-Classicals
Answer: Monetarists
Q15 | Sacrifice ratio measures :
  • Output lose
  • profit lose
  • Income lose
  • None
Answer: Output lose
Q16 | When prices of only few commodities rise
  • Sporadic Inflation
  • suppressed inflation
  • open inflation
  • creeping inflation
Answer: Sporadic Inflation
Q17 | Which is the slowest inflation?
  • Walking inflation
  • running inflation
  • Creeping inflation
  • moderate inflation
Answer: Creeping inflation
Q18 | The rate of inflation in walking inflation is:
  • between 3to 10 %
  • below 3 %
  • More than 10%
  • More than 3%
Answer: between 3to 10 %
Q19 | Price rise in every second is referred as
  • Running inflation
  • Galloping inflation
  • Walking inflation
  • Hyper inflation
Answer: Hyper inflation
Q20 | Inflation due to hording
  • Credit inflation
  • Scarcity inflation
  • Profit inflation
  • None
Answer: Scarcity inflation
Q21 | Long run Phillips Curve is :
  • Parallel
  • Horizontal
  • Vertical
  • Kinked
Answer: Vertical
Q22 | In business cycle, depression is followed by:
  • . Boom
  • Recovery
  • Recession
  • None of the above
Answer: Recovery
Q23 | The Working Group for the Revision of Wholesale Price Index Number headed by :
  • Prof. Abhijit Sen
  • Kelkar
  • Ahluwalia
  • Tarapore
Answer: Prof. Abhijit Sen
Q24 | The headline inflation in India is measured in:
  • WPI
  • CPI
  • GDP Deflator
  • All
Answer: WPI
Q25 | The working group in India include in the age:
  • 14 to 55
  • 15 to 59
  • 20 and above
  • 25 and above
Answer: 15 to 59
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