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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 12
Q1 | Open market operations refer to the sale and purchase by the RBI of :
- Gold
- Foreign exchange
- Government securities
- All the above
Q2 | Which of the following is not an objective of monetary policy?
- Price stability
- Balance of Payments equilibrium
- Economic growth
- Reduction in export
Q3 | Which of the following is not an element of high Powered money?
- Currency
- Repos
- Required Reserves
- Excess reserves
Q4 | The ratio of money supply to high powered money is:
- SLR
- CRR
- Money Multiplier
- Bank rate
Q5 | Fiscal Policy is a policy of the
- Central bank
- Government
- Finance commission
- Finance minister
Q6 | Fiscal Policy includes:
- Expenditure policy
- Tax policy
- both a and b
- neither a nor b.
Q7 | The objective of Monetary Policy is :
- to print notes of desired denominations
- to control cost and supply of money
- to provide loan to government
- none of these
Q8 | Fiscal Policy refers to policy towards:
- Public revenue
- public expenditure
- public debt
- all of the above
Q9 | In a closed economy which of the following is not a macroeconomic objective?
- National income growth
- price level stability
- BOP stability
- employment
Q10 | A business cycle is composed of ----- phases:
- 2 Phase
- 3 Phase
- 4 Phase
- No Phase
Q11 | The percentage of deposits of commercial banks statutorily kept with the RBI is :
- Cash Reserve Ratio
- Statutory Liquidity Ratio
- Repo Rate
- None of these
Q12 | Peak is the --- turning point of the business cycle.
- Upper turning point
- Lower turning point
- Middle turning point
- None of these
Q13 | Wage control is an instrument of ---- policy
- Fiscal policy
- Monetary policy
- Incomes policy
- None of these
Q14 | The trough of a business cycle occurs when hits its lowest point.
- Inflation
- the money supply
- aggregate economic activity
- the unemployment rate
Q15 | The lowest point in the business cycle is referred to as the:
- Expansion.
- Boom.
- Trough.
- Peak.
Q16 | When aggregate economic activity is increasing, the economy is said to be in:
- an expansion.
- a contraction.
- a peak.
- a turning point.
Q17 | When aggregate economic activity is declining, the economy is said to be in:
- a contraction.
- an expansion.
- a trough.
- a turning point.
Q18 | Economists use the term shocks to mean:
- unexpected government actions that affect the economy
- typically unpredictable forces that have major impacts on the economy
- sudden rises in oil prices
- the business cycle.
Q19 | Wars, new inventions, harvest failures, and changes in government policy are examplesof:
- the business cycle.
- economic models.
- shocks.
- opportunity costs.
Q20 | Peaks and troughs of the business cycle are known collectively as:
- Volatility.
- Turning points.
- Equilibrium points.
- Real business cycle events.
Q21 | ISLM model was basically…………sector model:
- Two
- One
- Three
- Four
Q22 | Original IS-LM model is a ……..model.
- Open
- Closed
- Both
- None
Q23 | ISLM is used to determine:
- income
- interest
- Both
- All
Q24 | The steepness of the IS curve depends on:
- change in interest
- Size of the multiplier
- both
- None
Q25 | Who develop the ISLM open economy model?
- Mundell
- Fleming
- Both
- None