Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. In the case of ‘creeping inflation’ prices are rising at
a. Less than 3% per month
b. Less than 3% per annum
c. Around 5% per month
d. Around 5% per annum
Q. ‘Stagflation’ is a situation where the economy faces
a. Inflation
b. Stagnation
c. Inflation as well as stagnation
d. None of the above
Q. Which of the following is not a function of a commercial bank
a. Accepting deposits
b. Issuing currency
c. Advancing loans
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 government
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 an anti-deflationary monetary policy
a. Purchase of government securities from commercial banks and from the public
b. Sale of government securities from commercial banks and from the public
c. Raising the cash reserve ratio
d. All of the above
Q. Let the cash reserve ratio is 12%. Then the value of credit multiplier will be
a. 8.0
b. 8.3
c. 10
d. 12
Q. Inflation represents:
a. fall in price level
b. increase value of money
c. decrease value of money
d. None
Q. Who told Inflation is too much of money chasing too few goods:
a. Coulbourn
b. Keynes
c. Friedman
d. Samuelsson
Q. Among the following which is not a feature of inflation?
a. long term process
b. state of disequilibrium
c. dynamic in nature
d. non monetary phenomenon.
Q. Deflation means:
a. falling price level
b. rise in price level
c. increase value of money
d. None
Q. Only Money Matters is Propounded by:
a. Keynesians
b. Monetarists
c. Classicals
d. Neo-Classicals