Explore topic-wise MCQs in Economics Mcqs.

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

The way in which government spending is supposed to reduce investment is by increasing ?

Each point on the IS curve represents the equilibrium point in the ?

If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?

The idea the government spending causes a reduction in private investment is called ?

If the investment demand curve is vertical ?

The interest rate is determined in ?

An example of an expansionary monetary policy is ?

The equilibrium level of aggregate output is determined in ?

The demand for money represents the idea that there is ?

Which one of the following is not true ?

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

Each point on the LM curve represents the equilibrium point in the ?

If there is a general shortage of liquidity in the money market then ?

Which of the following statements about money is not true ?

Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent ?

A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

The chain of events that results from an expansionary monetary policy is ?

Central banks prefer to fix the ____ and accept the resulting _____?

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

M4 is a __________ measure of money and includes deposits at both __________ and _________?

If the keep some money available in case I see a bargain this is an example of ?

An increase in the money supply aimed at increasing aggregate output is referred to as ?

If banks and the private sector decide to hold less cash the money multiplier will be ?

Banks create money by ?

The interest rate ?

According to the simple Keynesian view the aggregate supply curve is ?

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

Commodity money ?

In terms of the demand for money the interest rate represents ?

Which of the following events will lead to an increase in the demand for money ?

The opportunity cost of holding money is determined by ?

The main reason that people hold money to buy things is referred to as the ?

If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?

The primary function of bank is to ?

A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

The difference between a bank’s actual reserves and its required reserves is its?

A checking deposit in a bank in considered _________ of that bank?

Money that a government has required has required to be accepted in settlement of debts is ?

Which of the following policy actions by a central bank is likely to increase the money supply ?

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?

The three main tools of monetary policy are ?

Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates ?

Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B. If both banks operate with a reserve ratio of 10 percent What is the potential change in money supply as a result of Gerard’s action ?

A fall in investment demand can result from ?

Which of the following is not a function of money ?

Three variables affect the demand for money they are _______ and __________?

One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?