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Economics Mcqs

Trade between two countries can be useful if cost ratios of goods are ?

A. Equal
B. Different
C. Undetermined
D. Decreasing

Categories Basic of Economics, Economics Mcqs Leave a comment

Which of the following would cause income to become more unequal ?

A. Increased employment
B. Increased unemployment allowance
C. More progressive taxes
D. More regressive taxes

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When banks prepare their balance sheets. They show the money lent in ?

A. Liability
B. Assets
C. Both assets and liabilities
D. None

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Which of the following is not an instrument of monetary policy ?

A. Taxation
B. Bank rate
C. Open-market operations
D. Credit rationing

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In which capacity does a person stand to gain from deflation ?

A. As a pensioner
B. As a debtor
C. As an entrepreneur
D. As an equity-holder

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Which is the most widely used tool of monetary policy ?

A. Clearing house
B. Open-market operations
C. Discount rate
D. Issuing of notes

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Central bank’s rate of lending to commercial banks is called ?

A. Interest rate
B. Discount rate
C. Money rate
D. Control rate

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Open market Operation is ?

A. Buying and selling bills of exchange
B. Buying and Selling govt. securities
C. Buying and selling shares of companies
D. Buying and selling foreign exchanges

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Theory of comparative advantages was presented by ?

A. Adam Smith
B. Ricardo
C. Hicks
D. Barron

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The branch banking system is in vogue in most countries of the world. In which country was it first developed?

A. South Africa
B. UK
C. Canada
D. Australia

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