Subject General Knowledge
101. Which country is familiarly known as `The Horn of Africa’?
(a) Somalia
(b) Ethiopia
(c) Nigeria
(d) Burundi
(e) None of these
Ans. a
Direction: Choose the correct answer.
102. What is not included in narrow money (M1)
(a) Currency
(b) Demand deposits
(c) Other Checkable deposits
(d) Time deposits
Ans. d
103. Which one is not included in the current account of balance of payment of a country?
(a) Transfer payments
(b) Foreign remittance
(c) Foreign direct investment
(d) Investment income
Ans. c
104. The LM curve shifts rightward if
(a) Nominal interest rates decrease
(b) Money demand increases
(c) Money supply increases
(d) Aggregate output increases
Ans. a
105. In the simple Keynesian model, the magnitude of the multiplier depends on
(a) Marginal propensity to consume
(b) Real interest rate
(c) Growth in the real money supply
(d) Money multiplier
Ans. a
106. Which of the following is not part of aggregate demand?
(a) Government spending
(b) Exchange rate
(c) Net exports
(d) Investment
Ans. b
107. Cross elasticity of demand is positive if the goods are
(a) Substitutes
(b) Complements
(c) Inferior
(d) Normal
Ans. a
108. "Inflation is always and everywhere a monetary phenomenon." Who said this?
(a) John Maynard Keynes
(b) James Tobin
(c) Milton Friedman
(d) Irving Fisher
Ans. c
109. The relationship between wage-price inflation and the level of economic activity is known as
(a) GNP - inflation effect
(b) Demand-supply effect
(c) Phillips curve
(d) Irving Fisher
Ans. d
110. Which one does not directly affect the value of money multiplier?
(a) Required reserve ration
(b) Currency deposit ratio
(c) Excess reserve ratio
(d) Credit - deposit
Ans. b
111. In conducting monetary policy, Bangladesh Bank pursues a strategy of
(a) Inflation targeting
(b) Monetary targeting
(c) Both of the above
(d) None of the above
Ans. b
112. An increase in the rate of interest would increase
(a) The transactions demand for money
(b) The prices of bonds
(c) The asset demand for money
(d) The opportunity cost of holding money
Ans. d
113. Negative externalities can be internalized through
(a) Taxes
(b) Subsidies
(c) Taxes and subsidies
(d) Taxes or subsidies
Ans. b
114. Excess capacity is absent in
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Ans. a
115. Horizontal demand curve for a perfectly competitive firm indicates
(a) Demand is limited
(b) Demand id unresponsive
(c) Demand is unlimited to a single firm
(d) Demand is perfectly inelastic
Ans. c
116. Demand curve for a perfectly competitive industry is
(a) Horizontal
(b) Downward sloping
(c) Upward sloping
(d) Perfectly inelastic
Ans. a
117. In the long run, a monopoly firm ears/incurs
(a) Zero Profit
(b) Supernormal profit
(c) Loss
(d) All of the above
Ans. a
118. Short run MC cuts AC
(a) At its maximum point
(b) At its minimum
(c) At any point
(d) Either a or b
Ans. b
119. Decrease in the general level of prices is known as
(a) Inflation
(b) Deflation
(c) Depreciation
(d) Hyperinflation
Ans. b
120. Monetary policy deals with
(a) Interest rate
(b) Money Supply
(c) Depreciation
(d) Hyperinflation
Ans. b
121. Money supply is controlled by central bank through
(a) Open market Operation
(b) Changing reserve requirement
(c) Changing discount rate
(d) All of the above
Ans. d
122. Effect of Business cycle includes
(a) Fluctuation in the level of output
(b) Fluctuation in the level of employment
(c) Fluctuation in the price level
(d) All of the above
Ans. d
123. Shifting long run aggregate supply curve to the right
(a) Raises potential output or capacity
(b) Reduces potential output or capacity
(c) reduces long run output
(d) None of the above
Ans. a
124. In a BOP statement, outflow of dividend on Portfolio Investment is
(a) Import of services
(b) Export of services
(c) Unilateral
(d) Capital inflows
Ans. d
125. Price-Specie-Flow mechanism is related to
(a) Bretton-Woods system
(b) Flexible exchange rate regime
(c) Bi-metallism
(d) None of them above
Ans. b