The govt. can control inflation by ______?
A. Increasing demand for goods
B. Increasing supply of goods
C. Increasing money supply
D. Decreasing taxes
Which property the paper money does not process ?
A. Acceptability
B. Divisibility
C. Durability
D. Portability
Trade between two countries can be useful if cost ratios of goods are ?
A. Equal
B. Different
C. Undetermined
D. Decreasing
Which of the following would cause income to become more unequal ?
A. Increased employment
B. Increased unemployment allowance
C. More progressive taxes
D. More regressive taxes
When banks prepare their balance sheets. They show the money lent in ?
A. Liability
B. Assets
C. Both assets and liabilities
D. None
Which of the following is not an instrument of monetary policy ?
A. Taxation
B. Bank rate
C. Open-market operations
D. Credit rationing
In which capacity does a person stand to gain from deflation ?
A. As a pensioner
B. As a debtor
C. As an entrepreneur
D. As an equity-holder
Which is the most widely used tool of monetary policy ?
A. Clearing house
B. Open-market operations
C. Discount rate
D. Issuing of notes
Central bank’s rate of lending to commercial banks is called ?
A. Interest rate
B. Discount rate
C. Money rate
D. Control rate
Open market Operation is ?
A. Buying and selling bills of exchange
B. Buying and Selling govt. securities
C. Buying and selling shares of companies
D. Buying and selling foreign exchanges
