Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Economics (CFA520): - Question Paper

the economy?
(2 marks)
(a) 52.5 MUC
(b) 55.5 MUC
(c) 62.5 MUC
(d) 500.0 MUC
(e) 100.0 MUC.
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50. Which of the subsequent is actual if the prices of factor inputs increase in an economy?
(1 mark)
(a) Aggregate supply curve shifts to the left
(b) Aggregate supply curve shifts to the right
(c) Aggregate demand curve shifts to the right
(d) Aggregate demand curve shifts to the left
(e) Both aggregate supply and demand curves remain constant.
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51. In the short run, if an economy emerges from a recession,
(1 mark)
(a) Aggregate demand shifts left, the price level reduces and real output reduces
(b) Aggregate demand shifts right, the price level increases and real output increases
(c) Aggregate supply shifts right, the price level reduces and real output increases
(d) Aggregate supply shifts left, the price level increases and real output reduces
(e) Aggregate supply shifts right, the price level increases and real output increases.
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52. The central bank’s monetary liabilities as on June 30, 2007 stood at 10,500 MUC and Government
money at 1,500 MUC. The currency deposit ratio is estimated to be 0.25. If the Central bank intends to
maintain the money supply at 48,000 MUC, what should be the reserve ratio specified by the Central
bank?
(2 marks)
(a) 6.25%
(b) 8.10%
(c) 9.10%
(d) 5.00%
(e) 4.25%.
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53. The subsequent are the excerpts from the balance sheet of the Central bank of a country:
If the government money is 225 MUC, the high powered money in the economy is
(2 marks)
Particulars MUC
Notes in circulation 900
Other deposits 450
Other non-monetary liabilities 900
Statutory and contingency reserves 3,780
Credit to Central Government 10,080
Shares & loans to financial institutions 4,950
Central bank claims on Commercial banks 3,150
Net foreign exchange assets 1,350
Other assets 450
(a) 14,850 MUC
(b) 15,750 MUC
(c) 16,425 MUC
(d) 16,650 MUC
(e) 15,525 MUC.
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54. As on March 31, 2007, monetary liabilities of the central bank are 1,200 MUC and government money

Earning:   Approval pending.