Macro PYQ — Page 6

...... links the currencies of different countries and enables comparison of international costs and prices.

Suppose, in a hypothetical economy, the cash reserve ratio is 20% and initial deposits are Rs.100. The value of money which a bank can use to give as a loan in the first round would be

Rahul buys $90 \text{ kg}$ of sugar and $5$ pairs of shoes in a year. In the year $2000$, the price of a $\text{kg}$ of sugar was $\text{Rs } 10$ and a pair of shoes was $\text{Rs } 100$. Now suppose the prices of a $\text{kg}$ of sugar and a pair of shoes have gone up to $\text{Rs } 15$ and $\text{Rs } 120$ in the year $2005$. What is the Consumer Price Index?

Identify the assumptions of the two - sector economy's circular flow of income. (A) There is no trade with other countries. (B) Households do not spend all their income. (C) There is no government. (D) Households do not save. Choose the correct answer from the options given below:

Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country? (A) Repurchase agreement. (B) Moral suasion. (C) Open market operations. (D) Margin requirements. Choose the correct answer from the options given below:

In modern economies, countries interact through various channels, Which market is not an example of these linkages?

Effective demand principle situation occurs when _________

If ₹150 is required to buy 2 Dollar, instead of ₹100 earlier, then: (A) Domestic currency has depreciated. (B) Domestic currency has appreciated. (C) The rupee value of the import bill will increase. (D) Selling foreign exchange from its reserves by the reserve bank of India. Choose the correct answer from the options given below:

Identify the flow variable from the following:

Consider the following data: Nominal GDP : 1900 Real GDP : 1300 What is the GDP deflator in the above conditions ?

A capitalist economy can be defined as an economy in which most of the economic activities have the following characteristics. (A) Sale and purchase of labour services at their own price. (B) Sale and purchase of labour services at the wage rate. (C) Production takes place for selling. (D) Authorities may intervene to achieve an equitable distribution of the final mix of goods and services. Choose the correct answer from the options given below:

This is the index of prices of a given basket of commodities which are bought by the representative customer. Two years under consideration are kept – one is the base year, the other is the current year. First, the cost of purchase of a given basket of commodities in the base year is calculated. Then the cost of purchase of the same basket in the current year is calculated. Then we express the latter as a percentage of the former. This index is called : 1. Customer Index Pricing 2. Consumer Index Pricing 3. Consumer Price Index 4. Customer Price Index

What government planned for different economic activities is an application of which of the following?

The value that marginal rate of propensity can take in consumption function.

Arrange the following components as per the sample of Balance of Payments for India. (A) Trade Balance. (B) Net Invisibles. (C) Current Account Balance. (D) Errors and Omissions. Choose the correct answer from the options given below:

When consumer consumes a part of change in income, which of the following is true?

Let us say a firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. Calculate the Gross value added.

Which of the following is the correct pair of narrow money?

If the marginal propensity to consume is 0.6. Then what will be the value of tax multiplier?

Which system requires double coincidence of wants?

If the reserve ratio is 20%, what is the money multiplier?

The government policy affecting the personal disposable income of households by making transfers and collecting taxes is known by...........

NNP at market prices – (Indirect taxes – Subsidies) = .............

"Government of India has recently implemented various measures (like cash transfers to senior citizens and widows)". The government is trying to achieve the objective of _______ using such measures.