All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – II - Question Paper
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36. To increase the money supply, the Reserve Bank of India would
(a) Increase the reserve requirement and the discount rate, and sell bonds
(b) Increase the reserve requirement and the discount rate, and buy bonds
(c) reduce the reserve requirement and the discount rate, and sell bonds
(d) reduce the reserve requirement and the discount rate, and buy bonds
(e) Keep the reserve requirement constant. ( one mark)
37. Which of the subsequent is/are general economic indicator(s)?
I. GDP.
II. Inflation.
III. Interest rates.
(a) Only (I) above
(b) Only (II) above
(c) Both (I) and (II) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above. ( one mark)
38. Other things remaining constant, if the anticipated rate of inflation rises, we would expect the nominal interest rate to
(a) Remain unchanged
(b) reduce by the identical amount as the increase in the anticipated rate of inflation
(c) Increase, but by less than the anticipated increase in the rate of inflation
(d) Increase by the identical amount as the increase in the anticipated rate of inflation
(e) Increase, but by more than the anticipated increase in the rate of inflation. ( one mark)
39. Which of the subsequent is an example of expansionary fiscal policy?
(a) A reduce in infrastructural expenditure
(b) A purchase of government securities in the open market
(c) A reduce in the needed reserve ratio
(d) A reduce in expenditure on education
(e) A reduce in the corporate profit taxes. ( one mark)
40. Which of the subsequent does not affect the balance sheet of Reserve Bank of India?
(a) Central government’s borrowings from RBI
(b) Loan taken by 1 commercial bank from the other commercial bank
(c) Refinancing of NABARD loans
(d) Increase in reserves of commercial banks
(e) Increase in net foreign exchange assets. ( one mark)
| Earning: Approval pending. |
