(A) The exchange rate
(B) The interest rate
(C) The money supply
(D) The real national income
Tag: Economics Mcqs With Answers
The bank has Rs. 5 billion in cash the minimum reserve ratio is 20% what is maximum potential increases in total deposits:
(A) 0
(B) 5 m
(C) 10 m
(D) 25 m
The power of a bank to credit is affected by:
(A) The cash reserve requirements
(B) The amount of cash available
(C) The number of branches of a bank
(D) Both A and B
When banks prepare their balance sheets they show the money lent in:
(A) Liabilities
(B) Assets
(C) Both Assets and Liabilities
(D) None
If quantity of money increases 100% other things remaining constant value of money changes by:
(A) Increases by 100%
(B) Decreases by 100%
(C) Decreases by 200%
(D) Does not change
Which people are most likely to gain inflation:
(A) Those living on pension
(B) Those living on their savings
(C) Those who are repaing borrowed money
(D) Those who have lent money
According to Keynes demand for money is affected by:
(A) Income
(B) Rate of interest
(C) Literacy rate
(D) A and B both
If quantity of money is doubled then according to Quantity Theory The value of money is:
(A) Remains constnt
(B) Double
(C) Half
(D) None of the above