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M.C.Q (1 Marks)

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10 questions · timed · auto-graded

MCQ 11 Mark
The equilibrium exchange rate is determined at the point where the
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  • A
    Demand for and Supply of foreign exchange has maximum gap
  • B
    Demand for and Supply of foreign exchange has normal gap
  • C
    Demand for and Supply of foreign exchange has minimum gap
  • D
    Demand for and Supply of foreign exchange is equal
Answer
(d) Demand for and Supply of foreign exchange is equal
Explanation : At this point, the market for foreign exchange gets cleared
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MCQ 21 Mark
The creation of ________ is called credit creation.
  • A
    Demand deposit
  • B
    Secondary deposits
  • C
    Primary deposits
  • D
    Time deposits
Answer
(b) Secondary deposits
Explanation: Secondary deposits
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MCQ 31 Mark
Which of the following is an example of intermediate goods?
  • A
    All of these
  • B
    Carpurchased by a dealer of second hand car
  • C
    Fertilizers purchased by a farmer
  • D
    Steel and cement used to construct a flyover
Answer
(a) All of these
Explanation: All of these because all the given options have resale value.
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MCQ 41 Mark
When income is zero, savings will be ________.
  • A
    infinity
  • B
    negative
  • C
    zero
  • D
    positive
Answer
(b) negative
Explanation: When income is 0, savings will be negative.
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MCQ 51 Mark
Issue of new currency notes is a method of
  • A
    revenue policy
  • B
    deficit financing
  • C
    expenditure policy
  • D
    monetary policy
Answer
(b) deficit financing
Explanation: deficit financing
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MCQ 61 Mark
If C = 100 + 0.75 Y, then the corresponding Savings Function will be expressed as
  • A
    S = 100 + 0.25Y
  • B
    S = 75 + 0.25Y
  • C
    S = -100 + 0.75Y
  • D
    S = -100 + 0.25Y
Answer
(d) S = -100 + 0.25Y
Explanation: S = -100 + 0.25Y
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MCQ 71 Mark
If there is increase in income in the home country, the domestic currency will be ________.
  • A
    Increasing
  • B
    Appreciating
  • C
    Depreciating
  • D
    Decreasing
Answer
(c) Depreciating
Explanation: Depreciating
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MCQ 81 Mark
Consumption function is the functional relationship between ________ and ________.
  • A
    Consumption, National Income
  • B
    Aggregate Demand, Aggregate Supply
  • C
    Consumption, Aggregate demand
  • D
    National Income, Private Income
Answer
(a) Consumption, National Income
Explanation: Consumption, National Income
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MCQ 91 Mark
The broad definition of money is based on:
  • A
    Medium of payment function
  • B
    Transferability of money
  • C
    Store of the value function
  • D
    Broad money is most liquid
Answer
(c) Store of the value function
Explanation:
Broad money is less liquid. So, based on the store of the value function.
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MCQ 101 Mark
Statement I: Any international transaction which leads to inflow of foreign exchange is recorded on the credit side in the balance of payments accounts (the current account or the capital account).
Statement II: While FDI involves foreign investors taking a controlling and lasting stake in productive enterprises, portfolio investments represent holdings of minor equity (without management control) or debt through the stock markets by foreign investors for the purpose of earning return on investment.
  • A
    Statement II is true and statement I is false.
  • B
    Statement I is true and statement II is false.
  • C
    Both the statements are true.
  • D
    Both the statements are false.
Answer
(c) Both the statements are true.
Explanation: Both the statements are true.
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M.C.Q (1 Marks) - Economics STD 12 Commerce Questions - Vidyadip