Question 1

The working group in India include in the age:

Accepted Answer

A)  14 to 55
B)  15 to 59
C)  20 and above
D)  25 and above B

Question 2

Open market operations refer to the sale and purchase by the RBI of:

Accepted Answer

A)  gold
B)  foreign exchange
C)  government securities
D)  all the above C

Question 3

The objective of Monetary Policy is :

Accepted Answer

A)  to print notes of desired denominations
B)  to control cost and supply of money
C)  to provide loan to government
D)  none of these A

Question 4

Main reason for frictional unemployment is :

Accepted Answer

A)  lack of opportunities
B)  low wage
C)  high cost
D)  market imperfection

Question 5

Okun's law related with :

Accepted Answer

A)  unemployment and growth rate
B)  inflation and growth rate
C)  wage lose
D)  none

Question 6

In business cycle, depression is followed by:

Accepted Answer

A)   boom
B)  recovery
C)  recession
D)  none of the above

Question 7

The term Stagflation is coined by:

Accepted Answer

A)  samuelson
B)  iain macleod
C)  keynes
D)  none

Question 8

The percentage of deposits of commercial banks statutorily kept with the RBI is :

Accepted Answer

A)  cash reserve ratio
B)  statutory liquidity ratio
C)  repo rate
D)  none of these

Question 9

Fiscal Policy is a policy of the

Accepted Answer

A)  central bank
B)  government
C)  finance commission
D)  finance minister

Question 10

The headline inflation in India is measured in:

Accepted Answer

A)  wpi
B)  cpi
C)  gdp deflator
D)  all

Question 11

Long run Phillips Curve is :

Accepted Answer

A)  parallel
B)  horizontal
C)  vertical
D)  kinked

Question 12

Fiscal Policy refers to policy towards:

Accepted Answer

A)  public revenue
B)  public expenditure
C)  public debt
D)  all of the above

Question 13

Fiscal Policy includes:

Accepted Answer

A)  expenditure policy
B)  tax policy
C)  both a and b
D)  neither a nor b.

Question 14

A business cycle has:

Accepted Answer

A)  three phases
B)  four phases
C)  five phases
D)  six phases

Question 15

The main type of unemployment referred by the Keynesian:

Accepted Answer

A)  voluntary
B)  involuntary
C)  both
D)  none

Question 16

The main type of unemployment referred by the Post-Keynesians:

Accepted Answer

A)  voluntary
B)  involuntary
C)  natural rate
D)  none

Question 17

Peak is the --- turning point of the business cycle.

Accepted Answer

A)  upper turning point
B)  lower turning point
C)  middle turning point
D)  none of these

Question 18

The ratio of money supply to high powered money is:

Accepted Answer

A)  slr
B)  crr
C)  money multiplier
D)  bank rate

Question 19

Which of the following is not an objective of monetary policy?

Accepted Answer

A)  price stability
B)  balance of payments equilibrium
C)  economic growth
D)  reduction in export

Question 20

Which of the following is not an element of high Powered money?

Accepted Answer

A)  currency
B)  repos
C)  required reserves
D)  excess reserves

Exam 1: Macroeconomic Policy and Business Cycles