Question:

Governments may pursue inflationary monetary policies

A.

to promote high employment.

B.

to accommodate demands of workers for higher wages.

C.

to finance a persistent budget deficit.

D.

for all the above reasons.

Answer» d. for all the above reasons.

Question:

The objective of Monetary Policy is :

A.

to print notes of desired denominations

B.

to control cost and supply of money

C.

to provide loan to government

D.

none of these

Answer» a. to print notes of desired denominations

Question:

The relationship between income and interest in the IS curve is:

A.

direct

B.

indirect

C.

no relation

D.

none

Answer» b. indirect

Question:

A business cycle has:

A.

three phases

B.

four phases

C.

five phases

D.

six phases

Answer» b. four phases

Question:

Fiscal policy in India is formulated by

A.

reserve bank of india

B.

planning commission

C.

finance ministry

D.

securities and exchange board of india

Answer» c. finance ministry