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Indian Economy Mcq Questions

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

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