Open Market Operations occur when the government ?

Related Mcqs:

1. one of the tenets of the classical view of the labor market is that the wage adjustments that are necessary to clear the labor market occur ?

   A. quickly
   B. slowly
   C. very infrequently
   D. instantly

2. 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

3. 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

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. Speculative bubbles may occur in the shares market ?

   A. during periods of extreme pessimism because so many stocks become undervalued
   B. only when people are irrational
   C. when stocks are fairly valued
   D. because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date

7. Open market Operation is ?

   A. Buying and selling bills of exchange
   B. Buying and Selling govt. securities
   C. Buying and selling shares of companies
   D. Buying and selling foreign exchanges

8. 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

9. 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

10. What is called when government spending overwhelms government revenue resulting in government borrowing ?

    A. Budget deficit
    B. Deficient financing
    C. Unbalanced spending
    D. Deficit spending