a)  It is fixed by the Reserve Bank of India, b) It is determined by the Ministry of Finance. An increase in the ratio decreases the money multiplier effect. Instructions. Download these monetary policy multiple choice and essay questions. Question 7 : Which one of the following is not an instrument of selective credit control in India? b. The supply of loanable funds will increase decreasing interest rates. Marginal Standing Facility rate is generally lower than repo rate. c) The demand for credit increases on account of rise in bank rate. }, Increase in tax rates can reduce tax revenue, After Brexit we’re doing better than expected, Activity: Three Problems with the UK Labour Market, Article: Labour Elasticity and the Minimum Wage. a) The nominal rate of interest exceeds the real rate of interest, b) The real rate of interest exceeds the nominal rate of interest, c) The nominal rate of interest equals the real rate of interest, d) Nominal and real rates of interest become zero, a) The cash issued under the authority of the central bank, b) The money whose real value exceeds its nominal value, c) The currency with public and deposits maintained by the commercial banks with the Reserve Bank of India. Topic 2: Inflation & Unemployment - Fiscal Policy Fiscal Policy Multiple Choice. It manages the money supply in the economy, It acts as a custodian of foreign exchange reserves of India, It handles the borrowing programme of the Government of India. It is an excellent basis for my revision." Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of … Multiple Choice Quiz Questions, which are covered in this chapter, relate to the topic, Budget and Fiscal Deficits. controlling the exchange rate and the inflation rate. b) The government has to return the sum to the RBI within a fixed period of time, c) Public borrowing does not affect the money supply in the market. The government spending multiplier is as higher as: a. the official cash rate determined by the Bank of England. administering both monetary policy and fiscal policy. a) Rate on deposits given by commercial banks, b) Rate charged by banks on loans and advances, d) Rate at which the Reserve Bank of India discounts the bills of exchange. the actual market rates available for households and business. 9. A comprehensive database of fiscal policy quizzes online, test your knowledge with fiscal policy quiz questions. Question 15 : Which of the following situations occurs during the period when borrowers and lenders expect inflation? #mc_embed_signup select#mce-group[21529] { This quiz tests your knowledge on various aspects of fiscal policy - feedback is provided on your score for each question. b) Banks start lending at high rates to various types of borrowers. automatic fiscal policy. Question 8 : Which agency has the foremost role in regulation of banking sector in India? These revision MCQs test knowledge and understanding of monetary and fiscal policy Increase Aggregate Demand < Prevc 32 Of 50 Next > Keynesian Quiz Economic Measurements Quiz Macro - Money and Banking Quiz Phillips Best Cover Letters For Sales Positions Curve and Inflation Quiz Monetary Policy Quiz Money Market Quiz The Multipliers and Fiscal Policy Quiz. 6. a. f. In the UK the most important economic policy used to stabilise the economy is. d. What effect will an increase in household saving have on the market for loanable funds? answer choices . 10. Sam (Student), "Wow! Question 10 : The banks are required to maintain a certain ratio between their liquid assets and total deposits. MULTIPLE‐CHOICE QUESTIONS (4 points) Correct answer: 0.2 Incorrect answer: (0.2)/3 No answer: 0 1. nominal interest rates less the overseas rate. #mc_embed_signup .footer-6 .widget option { Test your understanding of Monetary policy concepts with Study.com's quick multiple choice quizzes. } #mc_embed_signup{background:#292929!important; clear:left; } color: #000!important; a) Rate of interest charged by the RBI is higher. #mc_embed_signup .footer-6 .widget input#mce-EMAIL { Answer the following questions and then press 'Submit' to get your score. Real interest rates are usually defined as. decrease the supply of loanable funds decreasing interest rates. the cash rate. Question 24 : Broad money in India includes which of the following: Choose the correct answer using the codes given below: Question 25 : Consider the following statements regarding Reserve Bank of India : Which of the statements given above are correct? Monetary Policy in the News. Question 28 : With reference to currency deposit ratio, consider the following statements: Question 29 : Which of the following measures can be used to reduce inflation? Question 17 : Sterilization by the RBI is carried through: d) Reduction in statutory liquidity ratio. controlling the cash rate and the exchange rate. Which of the statements given above is/are correct? d) It is determined by the bank concerned. Question 31 : Priority-section lending by banks in India constitutes lending to which of the following sectors? Question 22 : Which of the following measures would result in an increase in the money supply in the economy? #mc_embed_signup select#mce-group[21529] { Increase in statutory liquidity ratio (SLR). D)income and profits are falling. Question 9 : Which of the following guidelines by the RBI does not hamper the profitability of commercial banks in India? Answers to Multiple Choice Quiz Questions are available at the end of the last question. It is the ratio of money held by the public in currency to that they hold in bank deposits. Point out which of the following is not an instrument of fiscal policy: a. 1. increase the demand for loanable funds decreasing interest rates. administering monetary policy and maintaining financial stability. the reserve requirement. Caroline (Parent of Student), /* footer mailchimp */ Susie (Student), "We have found your website and the people we have contacted to be incredibly helpful and it is very much appreciated." color: #000; }. the Budget deficit. Get help with your Monetary policy homework. 7. a) The interest rate. The intent of contractionary fiscal policy is to Multiple Choice decrease aggregate supply. Question: The Monetary And Fiscal Policy Actions Taken In Response To COVID-19 Were Primarily Designed To Multiple Choice Increase Aggregate Supply Decrease Aggregate Supply Decrease Aggregate Demand. If the government Real interest rates are usually defined as, c. If the rate of interest on bank loans is 10% and the expected rate of inflation is 3% and the economic growth rate is 4%, then the real rate of interest on bank loans is. SC (Teacher), “Very helpful and concise.” What can be the best reason for this? The demand for loanable funds will increase increasing interest rates. Explain what is meant by the term “automatic stabilizers”. Select the correct answer using the codes given below: Question 21 : Consider the following statements: Which of the statements given above is/are not correct? b) The union government will have less money to lend. Question 26 : Consider the following statements. Question 5 : Consider the following statements regarding relation between marginal cost and average cost of lending, which one of the following statements is correct? Multiple choice questions. } 8 . b) ... debt would make it difficult for the government to respond to any future downturns in its economy with expansionary fiscal policy.
Woodland Meadows Apartments Post Falls Idaho, How To Get Groudon In Pokemon Sword, Cartoon Living Room, Nurses Award 2020 Nsw, Schecter Guitar Research David Schecter, Brocade Fabric Suppliers, Presonus Eris E5 Price, What Is Script Font In Word, Nursing Jobs In Australia Requirements, Calligraphy Border Fonts,