color: #000!important; MULTIPLE-CHOICE QUESTIONS 1. answer choices . Marginal Standing Facility rate is generally lower than repo rate. Select the correct answer using the codes given below: Question 21 : Consider the following statements: Which of the statements given above is/are not correct? 6. #mc_embed_signup{background:#292929!important; clear:left; } Monetary Policy. #mc_embed_signup select#mce-group[21529] { Question 15 : Which of the following situations occurs during the period when borrowers and lenders expect inflation? TEST YOURSELF – TEN MULTIPLE CHOICE. } Keynesian Quiz Economic Measurements Quiz Macro - Money and Banking Quiz Phillips Best Cover Letters For Sales Positions Curve and Inflation Quiz Monetary Policy Quiz Money Market Quiz The Multipliers and Fiscal Policy Quiz. Real interest rates are usually defined as, c. If the rate of interest on bank loans is 10% and the expected rate of inflation is 3% and the economic growth rate is 4%, then the real rate of interest on bank loans is. Answer the following questions and then press 'Submit' to get your score. Get help with your Monetary policy homework. increase the demand for loanable funds decreasing interest rates. Multiple choice questions from monetary policy and fiscal policy with IS-LM model, Chapter 02 International Monetary System Multiple Choice Questions increase the supply of loanable funds increasing interest rates. Question 7 : Which one of the following is not an instrument of selective credit control in India? Levels: AS, A Level; Exam boards: AQA, Edexcel, OCR, IB; Print page. A possible explanation is that (a) the US interest rate has been lowered. A comprehensive database of fiscal policy quizzes online, test your knowledge with fiscal policy quiz questions. Refer to Figure 16-6.In the dynamic model of AD-AS in the figure above,if the economy is at point A in year 1 and is expected to go to point B in year 2,and no fiscal or monetary policy is pursued,then at point B A)the unemployment rate is very low. } the actual market rates available for households and business. 9. a. #mc_embed_signup .footer-6 .widget input#mce-EMAIL { Question 4 : The cost of bank credit is determined on the basis of base rate and all bank loans are given at a rate equal to or higher than the base rate. a) The nominal rate of interest exceeds the real rate of interest, b) The real rate of interest exceeds the nominal rate of interest, c) The nominal rate of interest equals the real rate of interest, d) Nominal and real rates of interest become zero, a) The cash issued under the authority of the central bank, b) The money whose real value exceeds its nominal value, c) The currency with public and deposits maintained by the commercial banks with the Reserve Bank of India. controlling the exchange rate and the inflation rate. Thanks very much for this help. Question: The Monetary And Fiscal Policy Actions Taken In Response To COVID-19 Were Primarily Designed To Multiple Choice Increase Aggregate Supply Decrease Aggregate Supply Decrease Aggregate Demand. nominal interest rates less the rate of UK inflation. Access the answers to hundreds of Monetary policy questions that are explained in a way that's easy for you to understand. The intent of contractionary fiscal policy is to Multiple Choice decrease aggregate supply. SC (Teacher), âVery helpful and concise.â Assume the aggregate supply curve is upward sloping and the economy is in a recession. An example of expansionary fiscal policy would be. color: #000!important; a. increase aggregate demand by cutting... 2. Real interest rates are usually defined as. A cut in unemployment compensation c. c) Average cost of lending is lower than marginal cost of lending, d) Marginal cost of lending has no effect on average cost of lending. the Budget deficit. B)firms are operating at below capacity. }, Increase in tax rates can reduce tax revenue, After Brexit we’re doing better than expected, Activity: Three Problems with the UK Labour Market, Article: Labour Elasticity and the Minimum Wage. d) The commercial banks will have more money to lend. b) The union government will have less money to lend. _____ is the difference between total receipts and total expenditure: administering both monetary policy and fiscal policy. decrease the supply of loanable funds decreasing interest rates. color: #000; #mc_embed_signup option { Question 24 : Broad money in India includes which of the following: Choose the correct answer using the codes given below: Question 25 : Consider the following statements regarding Reserve Bank of India : Which of the statements given above are correct? This ratio is called. a) The commercial banks will have less money to lend. (b) the eurozone interest rate has been lowered. Question 13 : Lending to which of the following sectors is not a part of priority sector lending? color:#000!important; According to the multiplier model, the best way to reduce inflation is to c) It is determined by market forces of supply and demand for credit. Question 17 : Sterilization by the RBI is carried through: d) Reduction in statutory liquidity ratio. Question 20 : Which of the following is/are the possible effects of introducing fresh currency? Monetary Policy is the use of interest rates by the FED to keep the economy stable. Multiple choice/ short answer questions on Monetary Policy 1. 7. }
Monetary Policy in the News. For AP, IB, or College Macroeconomics. a) Average cost of lending is higher than marginal cost of lending. Related A-Level, IB Economics Resources.#mc_embed_signup select { color: #000; the actual market rates available for households and business. D)income and profits are falling. ____ 1. #mc_embed_signup input#mce-EMAIL { automatic fiscal policy. If the government Chapter 11: Multiple choice questions. The supply of loanable funds will decrease increasing interest rates. active federal policy. B. monetary policy can only be effective if it is a long-term policy C. controlling one part of the money supply will merely result in that item becoming less important D. the money supply must only expand at the rate of growth of real national income Test your understanding of Monetary policy concepts with Study.com's quick multiple choice quizzes. Multiple Choice Quiz Questions, which are covered in this chapter, relate to the topic, Budget and Fiscal Deficits. controlling the cash rate and the exchange rate. When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is Multiple Choice discretionary fiscal policy. b. f. In the UK the most important economic policy used to stabilise the economy is. Explain what is meant by the term “automatic stabilizers”. b) Banks start lending at high rates to various types of borrowers. What is Fiscal Policy? Question 5 : Consider the following statements regarding relation between marginal cost and average cost of lending, which one of the following statements is correct? The demand for loanable funds will increase increasing interest rates. Which of the pairs given above is/are correctly matched? Download these monetary policy multiple choice and essay questions. Point out which of the following is not an instrument of fiscal policy: a. Question 23 : With reference to marginal standing facility (MSF), consider the following statements. Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of … The demand for loanable funds will decrease decreasing interest rates. Which one of the following policy instruments is under the control of the Monetary Policy Committee of the Bank of England? Multiple choice questions. i. color: #000; a) Rate on deposits given by commercial banks, b) Rate charged by banks on loans and advances, d) Rate at which the Reserve Bank of India discounts the bills of exchange. 1. Tools of Monetary Policy Multiple Choice 1) The Fed uses three policy tools to manipulate the money supply: _____, which affect reserves and the monetary base; changes in _____, which affect reserves and the monetary base by influencing the quantity of discount loans; and changes in _____, which affect the money multiplier.
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