| 101 |
Money supply in an economy is a: |
Economics/Business Economics
Supply and creation of money |
Easy |
| 102 |
M1 consists of: |
Economics/Business Economics
Supply and creation of money |
Easy |
| 103 |
If banks must keep 20% of deposits as reserves, what is the money multiplier? |
Economics/Business Economics
Supply and creation of money |
Medium |
| 104 |
A new deposit of ₹200 crore enters the banking system and the reserve ratio is 10%. What is the maximum total… |
Economics/Business Economics
Supply and creation of money |
Medium |
| 105 |
If the reserve ratio is raised from 10% to 20%, what happens to the maximum deposits that can be created from… |
Economics/Business Economics
Supply and creation of money |
Hard |
| 106 |
The rate at which the RBI lends short-term funds to commercial banks is called the: |
Economics/Business Economics
Central bank |
Easy |
| 107 |
When a commercial bank in difficulty gets emergency funds from the RBI, the RBI is acting as: |
Economics/Business Economics
Central bank |
Easy |
| 108 |
To control inflation, the RBI is most likely to: |
Economics/Business Economics
Central bank |
Medium |
| 109 |
How does a cut in the cash reserve ratio affect bank credit? |
Economics/Business Economics
Central bank |
Medium |
| 110 |
The economy is in a recession with falling demand and output. Which combination of RBI steps is consistent wi… |
Economics/Business Economics
Central bank |
Hard |
| 111 |
If MPC is 0.75, what is MPS? |
Economics/Business Economics
Aggregate demand and its components |
Easy |
| 112 |
In the consumption function C = c̄ + bY, the term c̄ represents: |
Economics/Business Economics
Aggregate demand and its components |
Easy |
| 113 |
A household's income is ₹1,000 and its consumption is ₹800. What is its average propensity to save? |
Economics/Business Economics
Aggregate demand and its components |
Medium |
| 114 |
When income rises from ₹500 crore to ₹600 crore, consumption rises from ₹420 crore to ₹500 crore. What is the… |
Economics/Business Economics
Aggregate demand and its components |
Medium |
| 115 |
At a low income level, a family's average propensity to consume is 1.1. What does this mean? |
Economics/Business Economics
Aggregate demand and its components |
Hard |
| 116 |
In the Keynesian two-sector model, equilibrium income is reached where: |
Economics/Business Economics
Income determination |
Easy |
| 117 |
In the income determination diagram, the 45° line shows: |
Economics/Business Economics
Income determination |
Easy |
| 118 |
In an economy C = 100 + 0.75Y and planned investment is 50. What is equilibrium income? |
Economics/Business Economics
Income determination |
Medium |
| 119 |
At the current output level, firms find that unsold goods are piling up beyond what they had planned. What wi… |
Economics/Business Economics
Income determination |
Medium |
| 120 |
Equilibrium income is 600 with C = 100 + 0.75Y and investment 50. If the full-employment income is 800, which… |
Economics/Business Economics
Income determination |
Hard |
| 121 |
If MPC is 0.8, what is the value of the investment multiplier? |
Economics/Business Economics
Multiplier |
Easy |
| 122 |
The value of the investment multiplier will be larger when: |
Economics/Business Economics
Multiplier |
Easy |
| 123 |
MPS in an economy is 0.25. Investment rises by ₹50 crore. By how much will equilibrium income rise? |
Economics/Business Economics
Multiplier |
Medium |
| 124 |
The government wants income to rise by ₹500 crore and the MPC is 0.8. How much extra investment is needed? |
Economics/Business Economics
Multiplier |
Medium |
| 125 |
An increase in investment of ₹40 crore raises income by ₹160 crore. What is the MPC? |
Economics/Business Economics
Multiplier |
Hard |
| 126 |
Excess demand at full employment mainly leads to: |
Economics/Business Economics
Excess and deficient demand |
Easy |
| 127 |
Which fiscal measure would help to correct deficient demand? |
Economics/Business Economics
Excess and deficient demand |
Easy |
| 128 |
At full-employment output of ₹1,000 crore, aggregate demand is ₹1,100 crore. What is the situation? |
Economics/Business Economics
Excess and deficient demand |
Medium |
| 129 |
Which monetary measure is appropriate when the economy faces an inflationary gap? |
Economics/Business Economics
Excess and deficient demand |
Medium |
| 130 |
Equilibrium income is ₹800 crore but full-employment income is ₹1,000 crore. If the MPC is 0.75, by how much … |
Economics/Business Economics
Excess and deficient demand |
Hard |
| 131 |
The government budget is a statement of estimated receipts and expenditure for: |
Economics/Business Economics
Government budget |
Easy |
| 132 |
Street lighting is supplied by the government rather than by the market mainly because it is: |
Economics/Business Economics
Government budget |
Easy |
| 133 |
The government raises income tax rates for the highest income group and spends the money on free health care … |
Economics/Business Economics
Government budget |
Medium |
| 134 |
During a sharp rise in prices, the government cuts its own spending and raises indirect taxes. Which objectiv… |
Economics/Business Economics
Government budget |
Medium |
| 135 |
Why does a private firm find it hard to supply national defence profitably? |
Economics/Business Economics
Government budget |
Hard |
| 136 |
Which of the following is a capital receipt? |
Economics/Business Economics
Receipts and expenditure |
Easy |
| 137 |
Interest paid by the government on its past loans is: |
Economics/Business Economics
Receipts and expenditure |
Easy |
| 138 |
The government sells part of its shares in a public sector company. How is this classified? |
Economics/Business Economics
Receipts and expenditure |
Medium |
| 139 |
Which item is capital expenditure of the government? |
Economics/Business Economics
Receipts and expenditure |
Medium |
| 140 |
Which pair is correctly matched? |
Economics/Business Economics
Receipts and expenditure |
Hard |
| 141 |
Fiscal deficit of the government is equal to its: |
Economics/Business Economics
Budget deficits |
Easy |
| 142 |
A budget in which estimated receipts exceed estimated expenditure is a: |
Economics/Business Economics
Budget deficits |
Easy |
| 143 |
Fiscal deficit is ₹500 crore and interest payments are ₹200 crore. What is the primary deficit? |
Economics/Business Economics
Budget deficits |
Medium |
| 144 |
Total expenditure is ₹1,500 crore, revenue receipts ₹1,000 crore and non-debt capital receipts ₹100 crore. Wh… |
Economics/Business Economics
Budget deficits |
Medium |
| 145 |
In a budget the primary deficit is zero. What does this indicate? |
Economics/Business Economics
Budget deficits |
Hard |
| 146 |
Balance of trade refers to the difference between: |
Economics/Business Economics
Balance of payments |
Easy |
| 147 |
Money sent home by Indian workers employed abroad is recorded in the: |
Economics/Business Economics
Balance of payments |
Easy |
| 148 |
A country exports goods worth ₹300 crore and imports goods worth ₹450 crore. Its net receipts from services, … |
Economics/Business Economics
Balance of payments |
Medium |
| 149 |
A foreign company buys a factory in India. In India's BoP, this is: |
Economics/Business Economics
Balance of payments |
Medium |
| 150 |
Which transaction is accommodating rather than autonomous? |
Economics/Business Economics
Balance of payments |
Hard |