Economics MCQs

Page No. 287

fiscal incentives to attract businesses from abroad include ?


atax holidays

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baccelerated depreciation

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cimport duty relief

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dA , B and C

✓


View Answer A , B and C

If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?


aprogressive

✓


bregressive

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cvalue added taxes (VAT)

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dexcise taxes

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View Answer progressive

The Bank of England and the Federal Reserve ?


aare central banks

✓


bare branches of commercial banks

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cuse fiscal policy to influence GDP

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d loan money to most of LDC commercial banks

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View Answer are central banks

Monetary policy effects the _________ and __________?


areserve, unemployment

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b money supply, interest rate

✓


ctaxes, exchange rate

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d stock price, minimum wage

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A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?


areduction, increase

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b reduction, reduction

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cincrease, reduction

✓


d increase , increase

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View Answer increase, reduction

Central banks prefer to fix the ____ and accept the resulting _____?


ademand for money, interest rate

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binterest rate equilibrium money supply

✓


c demand for money equilibrium money supply

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d interest rate, demand for money

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


alender of less resort

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b financial intermediation

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cOpen Market operations

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dFinancial regulation

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M4 is a __________ measure of money and includes deposits at both __________ and _________?


anarrow, banks, building societies

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bwide, banks insurance companies

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cNarrow, banks insurance companies

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dWide, banks building societies

✓



When interest rate rise, other things equal, we can expect the quantity of real money holding to ?


a fall

✓


b increase

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c not change

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dNone of these

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View Answer fall

If the keep some money available in case I see a bargain this is an example of ?


aasset demand for money

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btransactions demand for money

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ctoken demand for money

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dprecautionary demand for money

✓



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