Top 250+ Solved Business Economics MCQ Questions Answer
Q. The variable that connect the market of money and the market of goods via investment spending is:
a. the mpc
b. the interest rate
c. the mps
d. the cpi
Q. Point out the monetary policy instrument:
a. an increase in direct taxes
b. open-market operations
c. freezing pensions
d. a cut in government purchase of goods and services
Q. Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls thesupply of money, availability of bank credit and cost of money that is the rate of interest:
a. central bank (rbi)
b. sbi
c. iba
d. none of these
Q. _______controls the supply of money and bank credit:
a. rbi
b. indian banking association
c. sebi
d. none of these
Q. The main objective of monetary policy in India is_______:
a. growth with stability
b. reduce poverty and achieve stability
c. overall monetary stability
d. none of these
Q. The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every______bank has to keep certain minimum cash reserves with RBI:
a. public bank
b. commercial bank
c. industrial and agricultural banks
d. none of these
Q. If RBI wants to increase the credit flow it buys ______:
a. government securities
b. shares and debentures
c. other local and short-term securities
d. none of these
Q. Trade between two countries is called
a. Internal trade
b. Intra-Country trade
c. Intra-State Trade
d. International Trade
Q. According to Classical economists, _ is the reason for a country to specialie in the production of a commodity
a. Internalisation
b. Cost differences
c. International Division of labor
d. Special Commodities
Q. International trade is the result of an advantage country possesses in producing a particular commodity at a _
a. Lower Cost
b. Equal cost
c. Higher cost
d. Constant Cost
Q. Absolute difference in Cost is explained by
a. David Ricardo
b. Adam Smith
c. J.S.Mill
d. Alfred Marshall
Q. According to Adam Smith, international trade is advantageous for all participating countries only if they enjoy _ difference in cost of production
a. Comparative
b. Equal
c. Absolute
d. Unequal
Q. Who aid the following, " The esence of international trade is not the absolute difference in cost but a comparative difference in cost."
a. Adam Smith
b. David Ricardo
c. J.S.Mill
d. Alfred Marshall
Q. Which of the following is NOT an assumption of Comparative Cost Advantage Theory?
a. Perfect Competition
b. Increasing return to scale
c. Perfect Mobility of labor within countries
d. Homogenoeus labor