Indian Economy Mcq Questions

Indian Economy Mcq Questions

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Q1. Equilibrium interest rate decreases and economic conditions increases then supply curve must shift to
A. up and to left
B. up and to right
C. down and to right
D. down and to left

Q2. Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include
A. tax-ability
B. covert ability
C. call ability
D. inflation premium D

Q3. Loan-able funds theory is used to determine
A. interest rate
B. savings
C. future value
D. present value

Q4. Loans for education and medical is classified as loans for
A. equilibrium goods
B. non-equilibrium goods
C. non-durable goods
D. durable goods

Q5. Interest rate equilibrium is increased and supply curve of funds shifts to left or upward is result of
A. increase in future value
B. decrease in future value
C. increase in total wealth
D. decrease in total wealth

Q6. According to demand for funds curve, demand curve shifts to right if there is increase in
A. equilibrium demand
B. equilibrium supply
C. equilibrium interest rate
D. equilibrium savings

Q7. For other non price conditions, decrease in equilibrium interest rate leads to
A. increase restrictiveness
B. increase restrictiveness
C. zero restrictiveness
D. negative restriction A

Q8. Factors that can affect nominal interest rates in financial transactions includes
A. special provisions
B. liquidity and default risk
C. inflation and real interest arte
D. all of above

Q9. Interest rate equilibrium is decreased and supply curve of funds shifts to right is result of
A. decrease in total wealth
B. increase in total wealth
C. increase in future value
D. decrease in future value

Q10. Suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of
A. financial markets
B. setting compounding rate
C. setting interest rate
D. setting savings rate

ANSWERS:

1. C
2. D
3. A
4. C
5. D
6. C
7. B
8. D
9. B
10. A

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