All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – II - Question Paper
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Government loans from abroad 20
Direct investments abroad 10
Foreign direct investment in the country 150
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Business Economics – II (MB1B4): October 2008
76. Balance of payments of a country for the year 2008 is provided below:
The balance of trade (BoT) for the year 2008 is
Particulars MUC
Merchandise imports 25,000
Merchandise exports 18,000
Software exports 16,000
Software imports 12,000
Earnings on loans and investments abroad 400
Earnings on loans and investments in the country by foreigners 1,000
Private remittances to abroad 200
Private remittances from abroad 150
Government loans to abroad 30
Government loans from abroad 20
Direct investments abroad 10
Foreign direct investment in the country 150
Short-term loans and investments abroad 200
Foreign short-term loans and investments in the country 40
(a) 7,000 MUC (deficit)
(b) 7,000 MUC (surplus)
(c) 2,000 MUC (surplus)
(d) 2,000 MUC (deficit)
(e) 1,950 MUC (surplus). ( two marks)
77. The subsequent info is available from the consolidated balance sheet of the banking sector:
Money supply in the economy is
Particulars Rs. billion
Net Bank Credit to the Government 2,000
Bank Credit to the Commercial Sector 3,000
Net Foreign Exchange Assets of the Banking Sector 2,200
Net Non-Monetary Liabilities of the Banking Sector 1,200
Government Currency Liabilities to the Public 500
(a) Rs. 200 billion
(b) Rs.6,200 billion
(c) Rs.6,500 billion
(d) Rs.7,400 billion
(e) Rs.7,600 billion. ( two marks)
ans cause
1. A Other thing remaining constant, if there is an increase in the cost of producing output, it outcomes in Increase in the price level and reduce
in real output.
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2. B A forest worker who is out of work because of low demand for wood is stated to be cyclically unemployed. < TOP >
3. C If the multiplier is four and the government wants to increase the level of income by Rs.30 billion, it should increase government spending by
30/4 = Rs.7.5 billion.
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4. D Keynesian economist favor an increase in government spending because it will outcome in more aggregate income than investment executed
due to multiplier effect.
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5. B A dollar on deposit can flow back into the banking system 1 or more times and that dollar can expand the money supply. This is best
| Earning: Approval pending. |
