24-Fisher’s ideal index number is:
a.
Arithmetic mean of Laspeyre’s
and Paasche’s index
b.
Harmonic mean of Laspeyre’s
and Paasche’s index
c. Geometric mean of Laspeyre’s
and Paasche’s index
d.
None of the above
(Ans: c)
25-Which among the following is NOT a correct
statement?
a.
Welfare economics is based on
value judgements.
b.
Welfare economics is also
called ‘economics with a heart’.
c.
Welfare economics focuses on
questions about equity as well as efficiency.
d.
The founder of Welfare
economics was Alfred Marshall.
(Ans: d)
26-Who is the ‘lender
of the last resort’ in the banking structure of India?
a.
State Bank of India
b.
Reserve Bank of India
c.
EXIM Bank of India
d.
Union Bank of India
(Ans: b)
27- ____ is the official minimum rate at which the
Central Bank of a country is prepared to rediscount approved bills held by the
commercial banks.
a.
Repo rate
b.
Bank rate
c.
Prime lending rate
d.
Reverse repo rate
(Ans: b)
28-In order to control credit, Reserve Bank of
India should:
a.
Increase CRR and decrease Bank
rate
b.
Decrease CRR and reduce Bank
rate
c.
Increase CRR and increase Bank
rate
d.
Reduce CRR and increase Bank
rate
(Ans: c)
29-Which among the following is a function of the
Reserve Bank of India?
a.
Bank issues the letters of
credit to their customers certifying their creditability
b.
Collecting and compilation of
statistical information relating to banking & other financial sectors
c.
Banks under write the
securities issued by public or private organizations
d.
Accepting deposits from the
public
(Ans: b)
30-Credit creation power of the commercial banks
gets limited by which of the following?
a.
Banking habits of the people
b.
Cash reserve ratio
c.
Credit policy of the central
bank
d.
All of the above
(Ans: d)
31-Number of times a unit of money changes hands in
the course of a year is called_______
a.
Supply of money
b.
Purchasing power of money
c.
Velocity of money
d.
Value of money
(Ans: c)
32-_____ is the difference between total receipts
and total expenditure.
a.
Capital deficit
b.
Budget deficit
c.
Fiscal deficit
d.
Revenue deficit
(Ans: b)
33-What is meant by Autarky in international trade?
a.
Monopoly in international
trade
b.
Imposition of restrictions in
international trade
c.
Removal of all restrictions
from international trade
d.
The idea of self sufficiency
and no international trade by a country
(Ans: d)
34-The following is the direct tax among:
a.
House tax
b.
Entertainment tax
c.
Service tax
d.
Value Added tax
(Ans: a)
35-Which among the following is a cause of
inflation?
a.
Deficit financing
b.
Rise in external loans
c.
Unfavourable balance of
payment
d.
A hike in the CRR by the central
bank of the country
(Ans: a)
36-Cost push inflation occurs because of:
a.
Wage push
b.
Profit push
c.
Both A and B
d.
Ineffective policies of the
government
(Ans: c)
37-Which among the following is NOT correct?
a.
During inflation lenders
suffer and borrowers benefit out’
b.
Rising inflation indicates
rising aggregate demand and indicates comparatively lower supply and higher
purchasing capacity among the consumers’
c.
With rising inflation the
currency of the economy depreciates provided it follows the flexible currency
regime.
d.
Inflation decreases the
nominal (face) value of the wages while the real value increases.
(Ans:d)
38-The capital that is consumed by an economy or a
firm in the production process is known as:
a.
Capital loss
b.
Production cost
c.
Dead-weight loss
d.
Depreciation
(Ans: d)
39-Who propounded the opportunity cost Theory of international trade?
a.
Ricardo
b.
Marshall
c.
Heckscher & Ohlin
d.
Haberler
(Ans: d)
40-Which among the following is NOT correct?
a.
Floating exchange rate system
works on the market mechanism
b.
Floating exchange rate breeds
uncertainties and speculation
c.
Economic and political factors
and value judgments influence the choice of the exchange rate system
d.
The system of floating
exchange rate requires comprehensive government intervention
(Ans: d)
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