NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 99 of 122)
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- Which one of the following is correct under perfect competition?
- AR curve is a straight line and parallel to X-axis
- AR curve is a straight line and parallel to Y-axis
- AR curve is a convex to origin
- AR curve is a concave to origin
- the effectiveness of monetary policy in a recession will be reduced if
- The level of borrowing is highly responsive to small changes in the level of interest rate
- The security prices start to go up as soon as the cheap money policy is initiated.
- Money holders prefer to retain money rather then buy securities at any lower rate.
- The ‘asset demand’ or ‘liquidity demand’ for money is very low
- The essential difference between money and non-money assets is that
- Money is a means of payments whereas non-money assets are stores of value
- Money is a measure of value whereas non-money assets are stores of value, money is a generally accepted means of payment.
- Money yields non-pecuniary income whereas non-money assets yield pecuniary income
- Which one of the following functions of money helps it to become a link between the present and the future?
- measure of value
- Store of value
- medium of exchange
- Transfer of value
- Which one of the following functions of money can be categorised as its contingent functions?
- To act as a medium of exchange
- To work as a measure of value
- To work as a standard of deferred payment
- To help in equalising the marginal utility and marginal productivity
- Friend man asserts that the Quantity. Theory of Money is basically a theory of
- the demand for money
- The price level
- Money income
- the value of money
- ‘V’ in MV = PT and ‘K’ in M = KT P are
- The same
- not related
- interdependent
- The reciprocals of each other
- Monopolistic exploitation of labour occurs when
- wage is less than marginal revenue product
- both wage and marginal revenue product are equal
- wage is more than the marginal revenue product
- Wage is equal to marginal physical product.
- Under the Keynesian Liquidity trap conditions, an increase in money supply will
- reduce the rate of interest
- both wage and marginal revenue product are equal
- wage is more than the marginal revenue product
- Wage is equal to marginal physical product.
- Under the Keynesian Liquidity trap conditions, an increase in money supply will
- deposit mobilization in India
- branch expansion in various parts of the world
- financing India՚s foreign trade
- lending to weaker sections in India
- Excess reserves of member banks equal
- a total reserves minus required reserves minus bank borrowing from the Central Bank.
- required reserves minus member bank borrowing at the Central Bank
- Total reserves minus free reserves
- total reserve minus required reserves
- Which one of the following statements correctly defines the Balance Sheet of a commercial bank?
- It is index of its financial position
- It is an account of its profit and loss
- It is a statement of the volume of business done by the bank
- It is a statement of the foreign exchange business of the bank
- The following is a list of banks other than the Central Bank. Which one of them can create money?
- Commercial banks
- Industrial development banks
- Agricultural banks
- Exchange banks
- Which one of the following is not a function of commercial banks?
- Advancing loans
- Accepting deposits
- Issuing notes
- Discounting bills of exchange
- During inflation, a family with an unchanged real disposable income and an unchanged stock of fixed-rupee financial assets
- is likely to increase its real consumption expenditures
- finds the real value of its financial assets rising
- is likely to reduce its real consumption expenditures
- is in no way affected by inflation.