WorksheetsFiscal Policy - Monetary Policy
Total questions: 25
Worksheet time: 1hrs 15mins
Fiscal policy are managed by
Government of a Country
Central Bank of a country
State Governments
The Government's overall approach to spending and taxes is called
Physical Policy
Fiscal Policy
вежба
Monetary Policy
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the Government should MOST likely follow is
decreasing taxes.
decreasing spending.
decreasing the money supply.
decreasing the reserve requirement.
Which is NOT one of government's role in the economy?
Protecting property rights
Maintaining competition
Protecting consumers, savers, and investors
Protecting monopolistic corporations
Monetary policy decisions are decided by:
Upper House
Prime Minister
The Central Bank
President
In context of Indian economy , ‘Open Market Operations’ refers to?
Borrowing by Scheduled banks from RBI.
Lending by commercial banks to industry and trade.
Purchase and sale of Govt securities by the RBI
None of the above.
When RBI reduces Statutory Liquidity Ratio by 50 basis points , which of the following is likely to happen?
India’s GDP growth rate increases drastically.
Foreign Institutional Investors may bring more capital in to our country.
Scheduled Commercial Banks may cut their lending rates.
It may drastically reduce the liquidity to the banking system.
With reference to Indian economy, consider the following:
1. Bank rate
2. Open Market Operations
3. Public debt
4. Public revenue
Which of the above is/are component(s) of Monetary Policy?
1 only
2,3 and 4
1 and 2
1, 3 and 4
Reverse Repo Rate is a tool used by RBI to?
Absorb liquidity
Inject liquidity
To keep liquidity at one level
None of these
Which of the following is not a function of Reserve Bank of India?
Regulation of credit.
Regulation of foreign exchange.
Management of fiscal deficit.
Banker to the government and commercial banks.
Which of the following is a qualitative credit control tool used by RBI?
Moral suasion.
Open market operations.
Repo rate.
Cash reserve requirement.
What is the full form of NITI Aayog?
National Institute to Transform India.
National Institute for Transforming India.
National Institution to Transform India.
National Institution for Transforming India.
Dear Money Policy implies
high interest rates
high price level
large money supply
large money supply
National Income in India is compiled by
Central Statistical Organisation
Finance Commission
NDC
Indian Statistical Institute
If aggregate supply is price inelastic an increase in demand mainly affects:
Output
Employment
Production
Prices
If the economy is in an inflationary period, what action would Fiscal Policy most likely take?
Decrease taxes
Decrease the discount rate
Increase taxes
Increase spending
If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using
Expansionary Fiscal Policy
Restrictive Fiscal Policy
Easy Money Policy
Tight Money Policy
If you are a classical economist, which statement would you support?
Let the economy work out its own problems
The more the government spends to improve the economy, the better
The government should be involved to help during recessions
Money matters and only money matters
Which of the following best describes the goal of Monetary Policy?
Controlling taxes
Controlling the national debt
Controlling the money supply
Stopping inflation
Who is the current Governor of RBI
Ajit Doval
Y V Reddy
Raghuram Rajan
Shaktikanta Das
Which of the following is true about the functions performed by RBI -
(i) It is the Bank of Issue
(ii) It acts as banker to the Government
(iii) It is the banker of other banks
(iv) It regulates the flow of credit
Both (i) and (ii)
Both (iii) and (iv)
All the Above
NOTA
