Open market Operation is ?

Related Mcqs:

1. What is called an arrangement of workers machines, and equipment in which the product being assembled passes consecutively from operation to operation or the process in which finished products are turned out in a mechanically efficient, though impersonal, manner ?

   A. Assembly line
   B. Production line
   C. Both of them
   D. None of them

2. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

3. When entering a building, Asim diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of:

   A. irrational behavior
   B. a lazy person
   C. marginal benefit-marginal cost analysis
   D. programmed learning

   Submitted by: Mansoor Ul Haque

4. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

5. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?

   A. downward sloping
   B. perfectly inelastic
   C. upward sloping
   D. perfectly elastic

6. The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ?

   A. Open value
   B. Book value
   C. Real value
   D. Artificial value

7. If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

   A. lender of less resort
   B. financial intermediation
   C. Open Market operations
   D. Financial regulation

8. Open Market Operations occur when the government ?

   A. Reduces the interest rate
   B. Buys and sells bonds and securities
   C. Increases taxation
   D. Increase the exchange rate

9. Mention an electronic quotation system in USA that provides price quotations to market participants about more actively traded common stock issues in OTC market ?

   A. National Association of Securities Dealers Automatic Quotation system (Nasdaq)
   B. New York Stock Exchange
   C. Wall Street
   D. Nikkei Stock Average

10. Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ?

    A. Oligopoly
    B. Grey market
    C. Oligopsony
    D. Green market