Economics Mcqs

A. decreases
B. remain the same, as long as banks hold no excess reserves
C. could either increase or decrease
D. increases

A. Assisting Banks that are in a difficult financial position
B. Auditing the various agencies and department of the government
C. Loaning money to other countries that are friendly to the UK.
D. Issuing new bonds to finance the PSBR.

A. savings accounts
B. Travelers checks
C. Currency held outside banks
D. Automatic-transfer savings accounts

A. precious metals
B. commodity money
C. fiat money
D. barter items

A. bills of exchanges
B. government bonds
C. Treasury bills
D. Capital bills

A. The banks will increase their lending
B. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will fall and the central bank may be expected to reduce the supply of liquidity to the banks
C. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the long-term interest rate may be expected to rise as a result
D. the long-term interest rate in the economy will rise and the central bank will raise its interest rate in response
E. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the central bank may be expected to increase the supply of liquidity to the banks.

A. fiat, commodity and deposit money
B. Open-market operations reserve requirements and the refinancing rate
C. The money supply, government purchases and taxation
D. Government expenditures taxation and reserve requirements
E. Coin, currency and demand deposits

A. Rs 4,000
B. Rs 5,000
C. Rs 1,000
D. Rs 0

A. Increasing the refinancing rate
B. All of these will increase the money supply
C. Buying government bonds in open market operations
D. Increasing reserve requirements

A. Rs 10,00
B. Rs 1,000
C. Rs 9,000
D. Rs 0