To plan a new unit or expansion of a new unit, To plan a long term financial requirements, Europe (remember Italy, French, UK, and Germany are 4 world’s power). Symbolically: Fixed cost/ Contribution margin per unit. 165. Define what is advertisement elasticity of demand? In this period, a very long time is available to adjust the supply to changes in demand. In order to raise the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves, pushing the rate closer to the target rate. A monopoly exists when a firm or individual produces and sells the entire output of some commodity. 191. If the Fed lowers the discount rate at the same time it conducts an open market sale, it follows that. Define what is an iso-quant? Then click 'Next Question' to answer the next question. Define what is the name given to the fish cultivation? Four-fifths of the goods traffic in India is carried by which agency? 125. Here is how an open market sale works: A commercial bank __________ government securities to (from) the Fed, which lowers the bank's deposits at the __________ and __________ the bank's __________. Define what are the major Kharif crops? In stock exchange Define what is the name given to the trader who tries to lower the value of shares? To decrease the money supply, the Fed may, 76. Hurricane Katrina Destroyed A Large Portion Of The Infrastructure In The Gulf South Of United States. 50. In 1975, 122. 128. This implies that the forecasting made should hold good over a period. 1952, 57. The corridor is the ________________ section of the ______________________ curve of reserves in the federal funds market. The Test Banks for Macroeconomics offer over 7,500 multiple-choice questions and answers that can be used to create homework assignments, quizzes, and tests. Tools, Machinery, etc. Rice, millet, maize, and cotton, 109. 1966-69, 41. Mixed Economy, 25. Define what is zone pricing? The discount rate is sometimes also known as the primary credit rate. A wealth of Nations, 23. The members of the Board of Governors of the Federal Reserve are. 200. C. Economics is the study of profit and loss. 119. Economics is the study of how goods and services produced and how they are distributed. 169. Define what is term demand? Define what is a perfect competition? When the Federal Open Market Committee (FOMC) votes on policy, they do so, 147. 168. 159. If the Fed _____________________, the money supply will ultimately __________. 68. Define what is the full form of EXIM? 166. Which of the following has never been a monetary policy tool of the Fed? Define what is endowment? A Federal Reserve Bank is located in which of the following cities? The president of the Federal Reserve District Bank of New York holds a permanent seat on the Federal Open Market Committee. Questions Macroeconomics (with answers) 6 Aggregate Demand (Keynesian Model) This exercise is based on the following source: Stephen Dobson and Susan Palfreman: Introduction to Economics, Oxford University Press, Oxford / New York 1999, ISBN 978-0-19-877565-2, pp. The text also includes â¦ The banking system currently holds $20 billion in required reserves and zero excess reserves. 198. ‘Black gold’ stands for Define what? 105. Janatha party government terminated the fifth five-year plan in which year? Define what is the rate of return pricing? 118. C)could be either a reward or a penalty. Bihar, 147. The demand for reserves curve in the federal funds market is. Define what is the full form of NLM? Kochi E.P.Z. When are the Rabi crops sown and reaped in India? 166. Suppose that the Fed undertakes an open market purchase of $5 million worth of securities from a bank. If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio, it follows that banks will now have __________, which they can use to extend loans and create new __________. A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of. 2. The word marginal means additional. Silviculture, 103. If Bank A borrows from the Fed, reserves in the banking system __________. 117. 154. 137. 116. Define what is the full form of RFLP? Increase of Milk production, 96. Hawala transaction, 114. Economics Interview Questions with Answers:-1. Fourteen banks, 71. The discounting principle is a concept developed from the opportunity cost concept. If the Fed wants to increase the money supply, it can __________ the required reserve ratio, conduct an open market __________, or __________the discount rate. 144. 92. It deals with the analysis of small units of the economy, such as individual consumers, firms, individual prices, individual industries, etc.. 6. The Federal Reserve Bank of Minneapolis once chartered a small airplane to deliver money to a commercial bank that was experiencing a "mad run" on the bank. Vegetables, Flowers, etc. Break-Even Point may be explained as that level of sales at which total revenues equal total cost and the net income is equal to zero. Into how many branches the area of economic theory is divided into? A required reserve ratio of 12 percent gives rise to a simple deposit multiplier of, 148. Define what is the full form of DWCRA? If the required reserve ratio is 12%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves? Free Economy, 26. A Federal Reserve Bank is located in which of the following cities? 1974-79, 44. Goods whose demand decrease when consumers income increases are known as inferior goods. Introduction to Demand and Supply; 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services; 3.2 Shifts in Demand and Supply for Goods and Services; 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process; 3.4 Price Ceilings and Price Floors; 3.5 Demand, Supply, and Efficiency; Key Terms; Key Concepts and Summary; Self-Check Questions; Review Questions 1) The interest rate that the Fed pays on reserves acts as a ceiling on the federal funds rate. Which is the oldest industry in India? The discount rate is the interest rate, 90. demand for tires produced by all tire companies in India is the Indian tires industry demand. 161. The National Development Council, 33. Who is the chairman of the National Development Council? Macroeconomics can best be described as the: A) analysis of how a consumer tries to spend income. 180. in private sector in India? Browse through all study tools. When one commercial bank borrows from another commercial bank, it pays the __________ rate. 110. The Board of Governors of the Federal Reserve serves on a larger policy-making group called the House Banking Committee. Going rate pricing in many cases results in “following the leader” without anyone knowing the identity of the price leader. How best to define economics? Define what is differential pricing? Define what is the name of the Economy where imports and exports are not allowed? All orders are safe, secure and confidential. Define what is meant by Reserve price? Define what is meant by the expression of the marginal product? Define what do you mean by the price elasticity of demand? Economics 102: Macroeconomics Final Free Practice Test Instructions. Which is the apex bank for industrial finance in India? The rate at which demand changes when price changes are known as elasticity of demand. 113. Define what is income elasticity of demand? . Six banks, 73. Define what is the name given to the money accumulated by way of illegal transactions without declaring it for tax purposes? 1975, 141. 187. Patients, hurt in a car accident, are treated in a hospital. Commodities whose consumption has become a habit of the convention have inelastic demand. c. why some countries have high rates of inflation. When the Fed increases the required reserve ratio, a bank's, 82. Below daily calorie intake of 2400 calories/person/day in rural areas and 2100 calories in urban areas. Which is the only E.P.Z in Kerala? Oh no! Green Revolution, 93. Who is the father of Indian agriculture? Theory of Laissez Faire, 24. Which of the following describes a change that the Federal Reserve made in response to the financial crisis of 2007-2009? A decrease in the required reserve ratio __________ the money supply; an open market purchase __________ the money supply. E.g. Suppose that the current federal funds rate is above the federal funds target rate. Define what is the normal price? The price fixed will cover the total cost and a target rate of return after tax. 177. 92. Advertisement elasticity also is known as “Promotional elasticity” measures the responsiveness of demand to changes in advertising or other promotional expenses. Training of Rural Youth for Self Employment, 121. Chapter 1; Chapter 2; Define what are perishable goods? Which body gives the final approval to planning in India? Wheat, gram linseed and mustard, 108. (i) Bank Rate Policy (ii) Open market operations and (iii) Varying Reserve Ratios . 151. Dumping. Microeconomics and macroeconomics. Chelliah, 150. Stock exchange, 110. In which year was the Consumer Protection Act Passed? This is a test bank for ECON 102 course (Macroeconomics) ââ Focus on the tables and last chapters. 54. June and January, 107. Integrated Rural Development Programme. 13. When was the national extension service started in India? It follows that when one bank borrows from __________, reserves in the banking system __________. 106. 146. 86. It might offset the effect of this on the money supply by, An "open market operation" is said to occur when the Fed, The Fed can change the money supply by changing. The smaller the required reserve ratio, the larger the simple deposit multiplier. The Government sells treasury bills to central bank for short term borrowings. When the demand for a commodity is entirely independent of demand for any other commodities it is autonomous demand. Suppose that the Fed undertakes an open market sale, selling $1 million worth of securities to a bank. E.g. Lowering the required reserve ratio raises the simple deposit multiplier. This is a system in which government exercise extensive control, 16. 168. Which of the following Fed actions will increase the money supply? B. Marginal cost is the net addition made to the total cost of production by producing one more unit of the commodity. Hence it is called price theory, 7. All round uplift of rural people, 58. Q. 156. 3. Goods which indirectly satisfy human wants by helping the production of consumer goods are called producers goods. 91. Which body represents India in the International Monetary Fund (I.M.F.)? 99. 129. 181. The __________ rate is the interest rate one bank pays another bank for a loan. . 156. Since many instructors use these questions in graded assignments, we ask that you not post these questions and the answers on any publicly available websites. Which of the following statements is false? Define what are they? D. Economics â¦ (B) Wages, rent, interest, and profits. This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply. Professionals, Teachers, Students and Kids Trivia Quizzes to test â¦ Coal, 138. Rise. 192. To expand the money supply the Fed could lower the required reserve ratio, lower the discount rate, or purchase government securities. 55. 139. Macroeconomics Questions and Answers Test your understanding with practice problems and step-by-step solutions. 162. Suppose that the Fed undertakes an open market purchase of $1 million worth of securities from a bank. Jawaharlal Nehru, 31. The long term demand for products is influenced by changes in long term factors such as changes in technology, the arrival of substitutions, influence in population, etc. When the Fed engages in quantitative easing, it alters ______________________ and when the Fed makes open market purchases it alters _______________________.