Economics MCQs

Page No. 428

Name the methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries ?


a Exchange Rate Mechanism (ERM)

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b Exchange Rate Equilibrium

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cExchange Rate Balance

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dNone of the above

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What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?


a Eurobank

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bForeign bank

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cInternational Bank

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dMultinational Bank

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View Answer Foreign bank

Investment funds are established for the supports of institutions such as hospitals investment is called ?


aCharity funds

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bAttached funds

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cEndowment funds

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dInvestment fund

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View Answer Endowment funds

What is called degree of buyer’s responsiveness to price changes ?


a Production & Supply

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b Production & Supply

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cDemand & Supply

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dDemand pull supply

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View Answer Demand & Supply

Term a tax or duty rebate on imported goods that are exported at a later date ?


aDuty

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bCustom

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cRebut

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dDrawback

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View Answer Drawback

Deregulation is the reduction of government’s role in controlling markets. Which of the following is result(s) of deregulation ?


aLead to freer market

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b Lead to a more efficient marketplace

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c Both of them

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dNone of them

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View Answer Both of them

Mention the theory of inflation or price increase that results from so-called excess demand ?


a Demand curve theory

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b Cost-push inflation

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c Demand-pull inflation

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d Demand push inflation

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


aBudget deficit

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b Deficient financing

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c Unbalanced spending

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d Deficit spending

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View Answer Deficit spending

What is called interest payments plus repayments of principal to creditors ?


a Debt retirement

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bDebt relief

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c Debt service

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d. Payback

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View Answer Debt service

Name a default on debt and obligations by a major financial institution that disrupts the stability of the economic system ?


a Debt blast

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b Debt bomb

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c Bad debt

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dNone of them

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View Answer Debt bomb

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