All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Economics – II - Question Paper
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41. The relationship ranging from aggregate savings (S) and income (Y) is known as the
(a) Consumption function
(b) Saving function
(c) Aggregate supply function
(d) Aggregate demand function
(e) Income function. ( one mark)
42. During a recession
(a) Output and profits fall
(b) Output and profits rise
(c) Output rises, profits fall
(d) Output falls, profits rise
(e) Output and profits remain identical. ( one mark)
43. In a hypothetical economy, the high-powered money is 2,000 MUC and the money supply is 6,000MUC. Currency deposit ratio is
estimated to be 0.2. The Central Bank sells government securities worth 500 MUC in the open market. Even after the open market
sale, if the Central Bank wants to maintain the money supply at the identical level, the reserve ratio should be
(a) 0.20%
(b) 1.00%
43. In a hypothetical economy, the high-powered money is 2,000 MUC and the money supply is 6,000MUC. Currency deposit ratio is
estimated to be 0.2. The Central Bank sells government securities worth 500 MUC in the open market. Even after the open market
sale, if the Central Bank wants to maintain the money supply at the identical level, the reserve ratio should be
(a) 0.20%
(b) 1.00%
(c) 3.00%
(d) 10.00%
(e) 30.00%. ( two marks)
44. Which of the subsequent ratios is not an indicator of financial development of a country?
(a) Finance Ratio
(b) Financial Interrelations Ratio
(c) New problem Ratio
(d) Intermediation Ratio
(e) Cost Benefit Ratio. ( one mark)
45. The subsequent balances are taken from the balance sheet of the Central Bank of a country.
The amount of Government money is 125 MUC. The high-powered money in the economy would be
Particulars MUC
Financial Assets 24,000
Other Assets 100
Net worth 1,000
Other non-monetary liabilities 525
(a) 22,600 MUC
(b) 22,700 MUC
(c) 20,000 MUC
(d) 21,500 MUC
(e) 19,500 MUC. ( two marks)
46. The period in the business cycle from a trough to peak is called
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