Indian Economy MCQ Quiz: GKFix - Bridge of Knowledge

Question 1

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In which of the following sequences does the change in quantity of money lead to change in price level in the Keynesian model?

Change in quantity of money - change in investment - change in employment and output - change in rate of interest - change in price level
Change in quantity of money - change in employment and output - change in investment - change in the rate of interest - change in price level
Change in quantity of money - change in investment - change in rate of interest - change in employment and output - change in price level
Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level

Question 2

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Deficit financing means

printing new currency notes
replacing new currency with worn out currency
public expenditure in excess of public revenue
public revenue in excess of public expenditure

Question 3

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The term 'crowding out effect' refers to

increase in exports due to currency depreciation
reduction in private investment due to increased government borrowing
growth of informal sector
decline in savings

Question 4

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The term 'fiscal deficit' refers to

difference between revenue receipts and expenditure
government borrowing requirement
trade imbalance
foreign exchange shortfall

Question 5

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The World Bank provides loans mainly for

short-term trade finance
industrial expansion
poverty reduction and development projects
currency stabilization