Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A MODEL MB0026 ECONOMICS SMU - Question Paper

31. Cash-reserve-ratio refers to
a. A ratio ranging from the liquid cash to be maintained by a commercial bank with that of total deposits of the bank
b. A ratio ranging from the total deposits with that of liquid cash maintained by a bank
c. The % of total deposits to the % of cash that must be invested by a bank as per instructions of the central bank of the country
d. The % of liquid cash to be maintained by a bank with that of its investment.

32. When national income of a country is computed in terms of constant prices, it is called as
a. Nominal GNP
b. GNP at current prices
c. GNP at constant prices
d. GDP at constant prices

33. Consumption function clearly reveals that over production and unemployment occur in a free enterprise economy and it is not self adjusting
.
a. Price control is needed.
b. Control on investment is essential.
c. Control on supply is needed.
d. State interference is a must.

34. The study of money supply, inflation, deflation, monetary policy, fiscal policy, physical control etc., come under
.
a. Micro economics.
b. Public economics.
c. Macro economics.
d. Growth economics.

35. Supply of money, interest rates and credit control measures together determine the nature of working of
a. Government policy.
b. Monetary policy.
c. Credit policy.
d. Financial policy.

36. Upswings and downswings in economic development have become a regular feature of a
a. Socialist economy
b. Mixed economy.
c. Democracy.
d. Capitalist economy
.

37. There are 2 main parts of a trade cycle. The expansion phase begins from revival and includes prosperity and boom. Contraction phase includes
a. Recession and depression.
b. Recession and trough.
c. Depression and trough.
d. Recession, depression and trough.

38. Out of the 4 government measures to solve the adverse effects of negative externalities which 1 is incorrect?
a. Introduction of emission standards
b. Prescribing emission fees
c. Indirect government regulations
d. Introduction of transferable emission permits

39. Public goods refers to
a. Goods supplied by public to people
b. Goods supplies by people to public

Earning:   Approval pending.