Question # 1

A bank has Rs. 5 million in cash The minimum reserve ratio is 20% What is maximum potential increase in total deposite.

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25 m

10 m

5 m

0 m

Which source a private company cannot use?

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A Bank loan

Tax

Selling new shares in stock exchange

Detail finance

Which one is investment in economics

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Building a factory

Buyig shares in stock exchange

Depositing money in bank

Deposting money wiht housing society

This will cause decrease in natioal income.

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Rise in exports

Rise in saving

Increas in taxese

B and C above

Mobility of labour

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Increases efficiency of labour

Spolic labour

Incrresases division of labour

a and c above

Standard of living of worker depends upon their

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Nominal wages

Real wages

Average product

Govt. Policy

Visible imports include.

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Remittance

Machinery

Computer Software

Transport cost

Demand deposite mean

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Saving account

Chequeable deposits

Profit loss account

Time deposits

Acting as lender of last resort a cenral bank lend to.

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Money market

Stock exchange

Commercial Bank

Does not lend

Credit money is created by

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Central bank

Commercial Bank

Government

All of the above

They are NOT much affected by rising prices.

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Salaried persons

Business

Debtors

Importers

Gross nationa product includes

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A loan from one's parents

A loan from a domestic bank

A loan from other countries

None of theabove

Pursching power of money during defiation is.

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Increased

Reduced

Constant

Fluctuating

Drung inflation

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Lenders lose borrowers gain

Borrowers and lenders both ose

Borrows lose lenders gain

All sections of the society gain

Exports of goods is called trade in

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Visible good

Invisibel goods

Basic goods

None real goods

Value of money and supply of money are related.

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Inversely

Directly

Govt.Law

Are not related

This is not a Principal of taxation

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Principal of equality

Pricipal of secracy

Principal of adequacy

Principal of convenience

Which measure has the larger value .

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NNP

GNP

GDP

NI

It is NOT an instrument of monetary policy

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Bank rate

Open market operations

Change in resere rato

Issure notes

Visible goods are recorded int his part of balance of payments account

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Current account

Capital account

Govt account

Official Account

The equation of exchange PT =MV was given by

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Fisher

Crowther

Kuznet

Keynes

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