21.
What is/are the objective(s) of Fiscal Policy?
1) Boost growth
2) Control inflation
(A)
Neither 1 nor 2
(B)
Both 1 and 2
(C)
Only 2
(D)
Only 1
22.
The velocity of circulation of money will be higher when the ________ is less than the requirements of the economy.
(A)
velocity of money
(B)
elasticity of money
(C)
demand for money
(D)
supply of money
23.
What is the impact of proportional taxes?
(A)
Increases the marginal propensity to consume
(B)
Reduces the autonomous expenditure multiplier
(C)
Increases the induced expenditure multiplier
(D)
Increases the autonomous expenditure multiplier
24.
Intervention by the monetary authority of a country in the money market to keep money supply stable against exogenous or
sometimes external shocks is called _____.
(A)
sterilisation
(B)
capitalisation
(C)
conservation
(D)
neutralisation
25.
Which of the following refers to the purchase and sale of government securities?
(A)
Bank rate
(B)
Open market operations
(C)
Reserve ratio
(D)
High powered money
26.
Price control and rationing are direct control measures to check ________.
(A)
disinflation
(B)
deflation
(C)
inflation
(D)
reflation
27.
What is the use of Net National Product (NNP)?
(A)
To calculate per capita income
(B)
To calculate exports
(C)
To calculate balance of payments
(D)
To calculate imports
28.
Which cost is considered for calculating the national income in India?
(A)
Factor cost
(B)
Product cost
(C)
Market cost
(D)
Sunk cost
29.
In India, statutory liquidity ratio is fixed by _____.
(A)
India Brand Equity Foundation
(B)
State government
(C)
Commercial banks
(D)
Reserve Bank of India
30.
The Central Office of the Reserve Bank of India was initially established in which present city in 1935?
