Define what are they? Each question identifies the topic being tested and the level of difficulty. 1949, 62. Define what do you mean by income elasticity of demand? Define what is an iso-quant? Six banks, 73. They show the combination of the factors of production yielding the same level of output. The lower the required reserve ratio. Break-Even Point may be explained as that level of sales at which total revenues equal total cost and the net income is equal to zero. Define what is meant by historical costs? Smt. The Federal Open Market Committee (FOMC) is composed of the seven members of the Board of Governors. 1966-69, 41. Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank, which raises the bank's deposits at the __________ and increases the bank's __________. Janatha party government terminated the fifth five-year plan in which year? When was Jawahar Rozgar Yojana launched? To decrease the money supply, the Fed may sell government securities or lower taxes. Which was the period of the first five-year plan of India? 162. Which of the following will increase the money supply? Define ‘bank rate’. 10. Define what is the branch dealing with flower cultivation? All orders are safe, secure and confidential. William Jennings Bryan, Secretary of State at the time of the passage of the Federal Reserve Act, argued in favor of having ______ district banks. 68. Surat E.P.Z. Rs 11000/annum/family of 5 members at 1991-92 prices, 52. Oh no! 1961-66, 40. Define what is income elasticity of demand? Adam Smith, 22. Which is the biggest enterprise of the Govt. If the Fed lowers the discount rate (relative to the federal funds rate), banks will (likely) borrow __________ from the Fed, which will __________ reserves in the banking system, and eventually __________ the money supply. 1. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Each of the governors of the Federal Reserve System is appointed for a term of __________ years. Become a part of our community of millions and ask any question that you do not find in our Macroeconomics Q&A library. 169. Green Revolution, 93. Who is the father of Indian agriculture? The __________ rate is the interest rate one bank pays another bank for a loan. Historical cost is the original cost of an asset. Two. Varanasi, 148. Washington. 12. The money is given for a specific purpose; in insurance, a fixed sum to be paid at the end of a certain period is called endowment. Black Money, 86. Integrated Child Development Service, 126. 180. The Board of Governors is comprised of _____________ members and the FOMC is comprised of __________ members. 188. In its current execution of monetary policy, the Fed does not usually have a specific _____________ target, but rather it tries to target a specific ________________. When was the Family planning Programme started in India? 151. Chapter 1; Chapter 2; Which of the following Fed actions will increase the money supply? Define what is zone pricing? Industrial Development Bank of India, 81. This is because as the federal funds rate moves down, it becomes _______________ for banks to hold reserves, encouraging banks to hold ____________ in reserves to guard against checkable deposit withdrawals. Which is the oldest industry in India? When a bank obtains a loan from the Fed, it follows that the, 79. Oligopoly is a market in which there are few firms selling particular products. 106. Blue Chip, 113. 98. biz/ed Economics Question Bank Define what is skim pricing? 130. Define what is the name given to the condition when talented men leaving their own country for lack of opportunities and facilities and going to other countries for better conditions? 94. Bihar, 147. 1) 198. A focus on wants or desires describes a market situation, while a focus on essentials or needs allows an explanation of choices to begin. Ten Principles of Economics. Define what is Break-Even Point (BEP)? The word ‘micro’ derived from which language? Define what is the branch dealing with the development of forests? In this period, a very long time is available to adjust the supply to changes in demand. Macroeconomics Questions and Answers in English and Hindi – Objective and Multiple Choice (MCQ) for UPSC, UPPSC, SSC CGL and Competitive Exams. 1978. When was the oil and Natural Gas Commission set up in India? 116. Macroeconomics does not try to answer the question of: a. why some countries experience rapid growth. (Scenario: Aggregate Consumption Equation) If disposable income is $500, aggregate consumption is: Define what is derived demand? Define what are they? Because most of the rich countries are in the northern hemisphere and poor countries in the southern hemisphere of the globe, 89. A decrease in the required reserve ratio __________ the money supply; an open market purchase __________ the money supply. In the field of stock exchange Define what is the name given to one who tries to increase the value of shares? 75. With open market operations, the Fed purchases ______________________________. Important Questions from previous year examinations are compiled in Quiz for Practice Mock Test. Hawala transaction, 114. Practice Questions for Students 2010. Agricultural Scientist, 95. Start studying Chapter 13 Test Bank Economics. Define what is the name given to the money accumulated by way of illegal transactions without declaring it for tax purposes? 122, 21. Who is the father of Modern Economics? Economics is the study of money. In questions where it is appropriate, show your work, if you want partial credit for an incorrect answer. 14. Define what is meant by the expression of the marginal product? Economics is the study of how goods and services produced and how they are distributed. When was the Reserve Bank of India nationalized? Both open market purchases and quantitative easing are directed at increasing reserves in the banking system and increasing the money supply. A Lead Routers Initiative. In 1989. Agriculture, 132. (D) Wages, interest, salaries, and income. Test bank may contains the following types of questions: multiple choice, true/false, fill in the blank, matching, essay/short answer, and free-response questions. For example goods like cigarettes, pan, etc. Q. Define what is the branch dealing with the development of worms used for disintegrating organic waste? Economics Interview Questions with Answers:-1. Fourteen banks, 71. Questions Macroeconomics (with answers) 1 Gross domestic product (GDP) and living standard 01 Gross domestic product 1 Are these activities part of GDP? When was the new bank of India merged with the Punjab National Bank? If reserves increase by $4 million and the required reserve ratio is 8%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves? Federal Reserve Notes held by the Fed are considered part of the, 103. 97. The National Development Council, 33. Who is the chairman of the National Development Council? When commercial banks need more Federal Reserve Notes. Which bank is known as the Banker’s Bank? Wheat, gram linseed and mustard, 108. 28. Who wrote the famous book on Economics “Planned Economy of India” 172. With quantitative easing, the Fed purchases _____________________. Introduction to Demand and Supply; 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services; 3.2 Shifts in Demand and Supply for Goods and Services; 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process; 3.4 Price Ceilings and Price Floors; 3.5 Demand, Supply, and Efficiency; Key Terms; Key Concepts and Summary; Self-Check Questions; Review Questions Suppose that the Fed undertakes an open market sale, selling $1 million worth of securities to a bank. The Federal Reserve System began operations in, The Board of Governors of the Federal Reserve is comprised of. 192. 139. 110. 126. Norman Borland, 94. Pensioners do community work for free. If the required reserve ratio is 9%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves? Reserve price is the price below which a seller is not prepared to sell. If the Fed wants to increase the money supply, it can __________ the required reserve ratio, conduct an open market __________, or __________the discount rate. Vermiculture, 104. When the demand for a commodity is entirely independent of demand for any other commodities it is autonomous demand. 184. 163. Define what is the normal price? Tools, Machinery, etc. Two. The short term demand may be referred to as the demand for a product where adjustment takes place in response to change in the short term factors like price changes, income changes, etc. Why does the president of the Federal Reserve Bank of New York hold a permanent seat on the FOMC? Greek; it means small. The demand for a thing produced and its sales depend upon some factors. Which was the period of the eighth five-year plan? On which basis the Planning Commission defined the poverty line? Define what is going rate pricing? Economics teaches us how to avoid choices. IDBI, 82. Which of the following will cause the money supply to decline? Theory of Laissez Faire, 24. Define what are perishable goods? View Answer. Hurricane Katrina Destroyed A Large Portion Of The Infrastructure In The Gulf South Of United States. Nehru Rozgar Yojana. To deal with the financial crisis of 2007-2009, the Fed extended its lender of last resort function to include institutions other than banks. Define what is term demand? Define what is fixed cost or supplementary cost? Demand for a commodity is said to be perfectly elastic when a slight change in price cause infinite change in quantity demanded. Which of the following is not a responsibility of the Fed? Rabi and Kharif, 105. Which of the following statements is false? Economics Multiple Choice Questions and Answers MCQ quiz on Economics multiple choice questions and answers on Economics MCQ questions quiz on Economics objectives questions with answer test pdf. Suppose that the Fed undertakes an open market purchase of $5 million worth of securities from a bank. Choose your answer to the question and click 'Continue' to see how you did. If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio, it follows that banks will now have __________, which they can use to extend loans and create new __________. 1951-56, 36. 1956, 140. Define what is product differentiation? 74. C) analysis of how firms attempt to maximize their profits. Define what does micro-economics deal with? Symbolically: Fixed cost/ Contribution margin per unit. Macroeconomics Exam 1, Spring 11. In the case of inferior goods, people buy more of such good when their price rises. 122. A Federal Reserve Bank is located in which of the following cities? b. what is the rate of return on education. Define what is a perfect competition? When the Federal Open Market Committee (FOMC) votes on policy, they do so, 147. 13. The test bank contains multiple choice, short answer, and essay questions for each chapter of the textbook. Controlling the nation's money supply is the most important duty of the Federal Reserve. Lowering the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply. Define what is the full form of ICDS? The larger the simple deposit multiplier, The word that best describes the relationship between the required reserve ratio and the money supply is, A commercial bank can receive a loan from another commercial bank in the. Define what is the full form of EXIM? Macroeconomics Questions and Answers Test your understanding with practice problems and step-by-step solutions. Cheap foodstuff is an example of Giffen goods. The corridor is the ________________ section of the ______________________ curve of reserves in the federal funds market. Durable goods are those goods which last for a longer period or durable goods are those goods which are not exhausted in a single use. 155. Define what are inferior goods? 155. 11. The State Bank of India. One of the Fed's functions is to be the government's banker. 113. Define what is the name given to the sudden increase of agriculture output? The questions in a test can be viewed one at a time or all at once. Table of Contents. There is an inverse relationship between the required reserve ratio and the money supply. Statistics, mathematics and operations research. If the Fed _____________________, the money supply will ultimately __________. When a new product is introduced in the market, it is priced at a relatively high level with the intention of skimming the cream from the market. The discounting principle is a concept developed from the opportunity cost concept. Horticulture, 100. Define what was the objective of the fourth five-year plan? Suppose that the current federal funds rate is below the federal funds target rate. Define what is the full form of TRYSEM? Iso-quant shows the combination of two variable inputs that given the same level output. Define what is the full form of COFEPOSA? The order of questions, and items within a question, is randomised each time you take a quiz. Which was the period of the third five-year plan of India? Define what is the full form of IDBI? All versions of the test have the same questions in same order, but the answers are scrambled. In which industry the largest number of workers are employed in India? 4) We measure national income by this method. If Bank A borrows from the Fed, reserves in the banking system __________. 182. If banks are currently holding zero excess reserves and the Fed lowers the required reserve ratio, which of the following will happen? 173. Goods whose demand increases with increase in income are known as superior goods or normal goods. The major policy-making group within the Fed is the __________ Committee. 1952, 59. 53. Define what is the full form of NRY? 5. E.g. Define what is advertisement elasticity of demand? Define what is cross elasticity? 178. In the case of such goods, demand does not contract very much even if the price rises. 169. Define what is a Monopoly? 153. 4. To limit political influence on Fed policy, the terms of the Fed Board of Governors are staggered so that one new appointment is made every four years to coincide with the presidential elections. Does Europe the USA or China have the largest economy? If the Fed purchases government securities from Bank A, __________ in the banking system __________ and the money supply __________. Define what is long term demand? 108. 173. Which of the following actions is most likely to lead to an increase in the money supply? 153. 159. The operations research is a specialized approach to investigate the particular problem of the firm. These factors include such diverse elements as price, buyers income, availability and price of substitutes or competing products, etc. Open market purchases of government securities. A Bear, 112. 29. In the criteria of a good forecasting method, Define what is durability? Indira Gandhi, 70. Where is the headquarters of the World Bank? How many export Processing Zones are there in India? Rise. Chapter 2. 1959, 32. Define what was the priority given to the first five-year plan? Development of Women and Children in Rural Areas, 125. Which is the most populous state in India? 73. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply. According to this method, the firm fixes a pre-determined target rate of return on capital invested. In October and April, 106. Suppose that the current federal funds rate is above the federal funds target rate. When the Fed purchases securities from a bank, it __________ reserves and ____________ the money supply. Define what is invisible imports and exports? “Garibi Hatato” – Remove poverty. If the required reserve ratio is 12%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves? Goods which will not last long are called perishable goods. Define what is the name given to the statistical study of the human population? 112. 91. Define what is Economics? Statistical techniques are now widely used to Define what? 21. 195. Define what is the name given to the trade by exchanging one commodity for another? Define what is short term demand? To expand the money supply the Fed could lower the required reserve ratio, lower the discount rate, or purchase government securities. Define what is commodities of habit? To decrease the money supply, the Fed may, 76. 121. 177. When the Fed increases the required reserve ratio, a bank's, 81. Patients, hurt in a car accident, are treated in a hospital. . In stock exchange Define what is the name given to the trader who tries to lower the value of shares? 174. 164. 129. If reserves increase by $5 million, what is the difference in the resulting change in checkable deposits when the required reserve ratio is 12.5 percent compared to when it is 10 percent? Which is the least populated state in India? Chapter 1 What is Economics? If the Fed purchases government securities from a commercial bank, which of the following will happen? 68. 1975, 141. Which is the largest public sector bank in India? Marginal cost is the net addition made to the total cost of production by producing one more unit of the commodity. Which of the following has never been a monetary policy tool of the Fed? 190. Browse from thousands of Macroeconomics questions and answers (Q&A). Define what is the full form of NABARD? The Fed can change the federal funds rate by issuing an order, but it cannot change the discount rate this way. In order to raise the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves, pushing the rate closer to the target rate. Some nations prefer to produce one thing while others produce another *b. 196. Ans. Company demand denotes the demand for the product of a particular firm or company. The interest rate that a commercial bank pays when it borrows from the Fed is the __________ rate. Economics is usually defined as the problem of how best to distribute limited resources, limited because wants are characterized as unlimited, but common sense tells us that rather than limited resources, there is an abundance of resources. Every time the Fed buys or sells on the open market, the __________ changes. 123. Under free banking, banks are regulated by the Federal Reserve. Which type of people is coming under the poverty line? Cotton Textile Industry, 83. Operation Flood, 97. How many members are there in the exclusive group of Third World Countries? How many banks were nationalized in the second nationalization of 1980? Define what is the branch dealing with honey production? . Under zone pricing, the seller divides the country into zones and regions and charges the same delivered price within each zone, but different prices between different zones. Central Rural Sanitation Programme, 128. 175. Rate of return pricing is simply a refined extension of the full cost pricing. Define what is perfectly elastic demand? Dalal Street, Mumbai, 118. 34. Sericulture, 101. The price mechanism as expressed through the market behavior of individual households and firms is the central point of microeconomic theory. 115. 172. Answer: Option B. A bank is less likely to borrow from the Fed when the __________ falls relative to the __________. This is a price control device under which product is sold at two different prices. Define what is a discounting principle? Define what is the full form of SEBO? Uttar Pradesh, 133. Reserve Bank of India, 63. A depreciation of a nation’s currency usually causes Define what to the internal/domestic prices? 55. Which is the famous book on Economics written by Dadabjao Naoroji? The Federal Reserve System came into existence with the Federal Reserve Act of. Integrated Rural Energy Programme, 129. B)could be a reward but could not be a penalty. 120. 1980, 72. 119. It means the cost for fixed factor units used in production. When was the community Development Programme launched in India? It is a common notion that the present value of money available after a few years is less than the present value of money available today, 8. Mixed Economy, 25. Economics 102: Macroeconomics Final Free Practice Test Instructions. E.g. Define what is the name given to the profit from debenture? In 2007, the Fed began using an additional monetary policy tool called the term auction facility program. Television set, Refrigerator. 197. Dividend, 90. When Bank A obtains a loan from the Fed, the, 80. 89. When was the National productivity Council started? Here is how an open market sale works: A commercial bank __________ government securities to (from) the Fed, which lowers the bank's deposits at the __________ and __________ the bank's __________. Commodities whose consumption has become a habit of the convention have inelastic demand. 2. . 96. Define what is the full form of RFLP? Define what is the aim of the White Revolution? Securities and Exchange Board of India, 117. 2. It can be defined as the application of mathematical techniques in solving the business problem. An increase in income is randomised each time you take a quiz copy, or purchase government securities on... Modern economics test, with answer key time it conducts an open market sale, it that... 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