Economics MCQs

Page No. 287

fiscal incentives to attract businesses from abroad include ?


atax holidays


baccelerated depreciation


cimport duty relief


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


cvalue added taxes (VAT)


dexcise taxes


View Answer progressive

The Bank of England and the Federal Reserve ?


aare central banks


bare branches of commercial banks


cuse fiscal policy to influence GDP


d loan money to most of LDC commercial banks


View Answer are central banks

Monetary policy effects the _________ and __________?


areserve, unemployment


b money supply, interest rate


ctaxes, exchange rate


d stock price, minimum wage



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


b reduction, reduction


cincrease, reduction


d increase , increase


View Answer increase, reduction

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


ademand for money, interest rate


binterest rate equilibrium money supply


c demand for money equilibrium money supply


d interest rate, demand for money



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


b financial intermediation


cOpen Market operations


dFinancial regulation



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


anarrow, banks, building societies


bwide, banks insurance companies


cNarrow, banks insurance companies


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


c not change


dNone of these


View Answer fall

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


aasset demand for money


btransactions demand for money


ctoken demand for money


dprecautionary demand for money



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