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#QuestionSubject and topicDifficulty
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