Top 150+ Solved General Economics 2 MCQ Questions Answer
Q. Demand for money arises from
a. Money acts as a medium of exchange
b. Money acts as a store of value
c. Both A and B
d. Neither A nor B
Q. People are said to be suffered from “money illusion” since:
a. People merely consider with nominal money holdings
b. People consider the real money balances
c. Both A and B
d. None of the above
Q. In the Quantity Theory of Money, Fischer states that while other things remains the same:
a. Price level varies directly with the quantity of money
b. Price level varies inversely with the quantity of money
c. Value of money varies directly with the quantity of money
d. None of the above
Q. Inflation is a situation where
a. Prices are falling
b. Value of money is falling
c. Value of money is rising
d. All of the above
Q. ‘Stagflation’ is a situation where the economy faces:
a. Inflation
b. Inflation as well as stagnation
c. Stagnation
d. None of the above
Q. Cost – push inflation arises due to:
a. Rise in wages
b. Rise in the prices of raw materials
c. Rise in profit
d. All of the above
Q. Which of the following is not a function of a commercial bank:
a. Accepting deposits
b. Advancing loans
c. Issuing currency
d. Credit creation
Q. Which of the following represents the major functions of the central bank?
a. Note issuing agency
b. Controller of credit
c. Banker to the governmen
d. All of the above
Q. Find the odd man out:
a. Bank rate policy
b. Taxation
c. Open market operation
d. Variable reserve ratio
Q. Open market operation influences:
a. The reserves of commercial banks
b. The market rate of interest
c. Both A and B
d. None of the above
Q. Which of the following is not a measure of selective credit control?
a. Variable reserve ratio
b. Regulation of consumer credit
c. Regulation of margin requirements
d. Rationing of credit