Table of Contents
Indian Economy Mcq Questions
1. Constituents of Gross interest are:
(A) Reward for risk
(B) Reward of Management
(C) Reward of Inconvenience
(D) All of the above
2. Rate of interest is determined by:
(a) Forces of demand of supply
(b) Forces of saving and investment
(c) Forces of income & consumption
(d) None of these
3. Savings occur when:
(a) Consumption > income
(b) Consumption < income
(c) Consumption = income
(d) Consumption ~ income
4. Demand for capital takes place when:-
(a) Interest > marginal productivity of capital
(b) Interest < marginal productivity of capital
(c) Interest = marginal productivity of capital
(d) None of these
5. Loanable funds theory considers ______ factor for interest determination.
(a) Real
(b) Monetary
(c) Real + Monetary
(d) None of these
6. The term “Reward for parting with liquidity” of interest is given by:
(a) Classical theory
(b) Loanable funds theory
(c) Liquidity preference theory
(d) Neo-classical theory
7. According to Liquidity Preference Theory, Money is demanded for:
(a) Transaction motive
(b) Precautionary motive
(c) Speculative motive
(d) All of the above
8. Rate of Interest is determined where:
(a) Demand = Supply
(b) Demand > Supply
(c) Demand < Supply
(d) Demand <= Supply
9. There is a _____ relationship between rate of Interest and Supply of money.
(a) Direct
(b) Inverse
(c) Equal
(d) All of the above
10. Saving is a function of :
(a) Interest
(b) Income
(c) Expenditure
(d) Demand
ANSWERS:
1. d
2. a
3. b
4. b
5. c
6. c
7. d
8. a
9. a
10. b
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: Indian Economy Mcq Questions