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)


b Exchange Rate Equilibrium


cExchange Rate Balance


dNone of the above



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


bForeign bank


cInternational Bank


dMultinational Bank


View Answer Foreign bank

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


aCharity funds


bAttached funds


cEndowment funds


dInvestment fund


View Answer Endowment funds

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


a Production & Supply


b Production & Supply


cDemand & Supply


dDemand pull supply


View Answer Demand & Supply

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


aDuty


bCustom


cRebut


dDrawback


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


b Lead to a more efficient marketplace


c Both of them


dNone of them


View Answer Both of them

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


a Demand curve theory


b Cost-push inflation


c Demand-pull inflation


d Demand push inflation



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


aBudget deficit


b Deficient financing


c Unbalanced spending


d Deficit spending


View Answer Deficit spending

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


a Debt retirement


bDebt relief


c Debt service


d. Payback


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


b Debt bomb


c Bad debt


dNone of them


View Answer Debt bomb

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