Question:

Fiscal Policy is a policy of the

A.

central bank

B.

government

C.

finance commission

D.

finance minister

Answer» b. government

Question:

During the financial crisis of 2007-08, which financial instruments commonly came to be called “Toxic Assets”?

A.

treasury bill

B.

mortgaged backed securities

C.

s&p stokes

D.

government bonds

Answer» b. mortgaged backed securities

Question:

Cause of Inflation in India is / are:

A.

deficit financing

B.

erratic agriculture growth

C.

inadequate rise in industrial production

D.

all of the above

Answer» d. all of the above

Question:

Fall in the level of investments, fall in production, fall in employment, fall stock prices, etc.are found during phase of business cycle.

A.

expansion

B.

boom

C.

peak

D.

contraction

Answer» d. contraction

Question:

ISLM is used to determine:

A.

income

B.

interest

C.

both

D.

all

Answer» c. both

Question:

Which of the following is least likely to lead to inflationary monetary policy?

A.

rising unemployment

B.

expanding federal budget deficits

C.

declining oil prices

D.

conflict in the middle east

Answer» c. declining oil prices

Question:

IS curve represents the equilibrium of …………. sector.

A.

money

B.

goods

C.

government

D.

all

Answer» b. goods

Question:

A business cycle is composed of ——phases:

A.

2 phase

B.

3 phase

C.

4 phase

D.

no phase

Answer» c. 4 phase

Question:

In business cycle, depression is followed by:

A.

. boom

B.

recovery

C.

recession

D.

none of the above

Answer» b. recovery

Question:

Decrease in money supply shift the LM curve to the:

A.

right

B.

left

C.

no change

D.

any of these.

Answer» b. left