Business Economics 2024

Monetary policy is designed by

• government

• central bank

• commercial bank

Which of the following are the right approaches used by Central Bank to influence money supply?

• Required Reserved Ratio

• Discount Rate

• Open-Market Operations

• Taxation

If Central Bank raised the required reserve ratio, it would

• limit money supply

• increase money supply

• money supply remain unchanged

If Central Bank lower the required reserve ratio, it would

• limit money supply

• increase money supply

• money supply remain unchanged

If Central Bank lower the discount rate, it would

• limit money supply

• increase money supply

• money supply remain unchanged

If Central Bank conducts open market sales, it will

• limit money supply

• increase money supply

• money supply remain unchanged

During inflationary period, central bank will use

• expansionary monetary policy

• contractionary monetary policy

• supply side policy

During recession, central bank will use

• expansionary monetary policy

• contractionary monetary policy

• supply side policy

Business will invest more if

• the interest rate on loan is low

• the interest rate on loan is high

• expected returns on investment is high

• expected returns on investment is low

What is the definition of production?

• The process of combining inputs to produce outputs
• The process of selling a firm's product
• The process of calculating revenue
• The process of determining costs