Economics MCQs

Page No. 417

Theory of comparative advantages was presented by ?


aAdam Smith


b Ricardo


c Hicks


dBarron


View Answer Ricardo

Open market Operation is ?


aBuying and selling bills of exchange


bBuying and Selling govt. securities


cBuying and selling shares of companies


dBuying and selling foreign exchanges



Central bank’s rate of lending to commercial banks is called ?


aInterest rate


b Discount rate


cMoney rate


dControl rate


View Answer Control rate

Which is the most widely used tool of monetary policy ?


aClearing house


bOpen-market operations


cDiscount rate


dIssuing of notes



In which capacity does a person stand to gain from deflation ?


a As a pensioner


bAs a debtor


cAs an entrepreneur


dAs an equity-holder


View Answer As a pensioner

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


aTaxation


bBank rate


cOpen-market operations


d Credit rationing


View Answer Taxation

When banks prepare their balance sheets. They show the money len


aLiability


bAssets


c Both assets and liabilities


dNone of these


View Answer Assets

Which of the following would cause income to become more unequal ?


aIncreased employment


b. Increased unemployment allowance


cMore progressive taxes


d More regressive taxes



Trade between two countries can be useful if cost ratios of goods are ?


a Equal


b Different


cUndetermined


dDecreasing


View Answer Different

Which property the paper money does not process ?


aAcceptability


bDivisibility


cDurability


dPortability


View Answer Durability

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