Review Bangladesh Bank Asst. Director (Research) 2011 Exam | |||
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1. Which of the following could not bring about a shift in the demand for commodity X from to as shown in the diagram? | |||
A successful advertising campaign to promote | |||
An increase in the real income of the population of the country | |||
A fall in the price of X | |||
An increase in the price of a close substitute for X | |||
Ans. | |||
2. Which of the following is not considered in calculating GDP? | |||
A grant to the poor student | |||
A shareholders dividend | |||
A doctor's fees | |||
A landlord's rent | |||
Ans. | |||
3. What are appropriate value in the blank space | |||
1, 2, 3 | |||
3, 2, 1 | |||
1, 3,1 | |||
2, 3, 1 | |||
Ans. | |||
4. The Isoquant curve is | |||
Concave to the origin | |||
Convex to the origin | |||
Straight line | |||
U shaped | |||
Ans. | |||
5. Keeping other factors constant, total revenue of the producer from product from product X falls with the increase i price which suggest. | |||
The cross elasticity of demand for X with regard to Y is negative | |||
Income elasticity of demand for X is greater than 1 | |||
Price elasticity of demand for X is greater than 1 | |||
None of the above | |||
Ans. | |||
Direction: Choose the correct answer. | |||
6. The LM curve shifts rightward if | |||
Nominal interest rates decrease | |||
Money demand increases | |||
Money supply increases | |||
Aggregate output increases | |||
Ans. | |||
7. For the standard normal distribution, the z value gives the distribution, the z value gives the distance between | |||
The mean and a point in terms of the mean | |||
The mean and a point in terms of the standard deviation | |||
The mean and a point in terms of the variance | |||
The mean and a point in terms of the enter of the curve | |||
Ans. | |||
8. An increase in the rate of interest would increase | |||
The transactions demand for money | |||
The prices of bonds | |||
The asset demand for money | |||
The opportunity cost of holding money | |||
Ans. | |||
9. "Managed Floating" of the exchange rate allows a central bank to | |||
Control volatility of the exchange rate | |||
Control money supply but at the cost of greater exchange rate instability | |||
Both of the above | |||
None of the above | |||
Ans. | |||
10. In a BOP statement, outflow of dividend on Portfolio Investment is | |||
Import of services | |||
Export of services | |||
Unilateral | |||
Capital inflows | |||
Ans. | |||
11. Shifting long run aggregate supply curve to the right | |||
Raises potential output or capacity | |||
Reduces potential output or capacity | |||
reduces long run output | |||
None of the above | |||
Ans. | |||
12. Price-Specie-Flow mechanism is related to | |||
Bretton-Woods system | |||
Flexible exchange rate regime | |||
Bi-metallism | |||
None of them above | |||
Ans. | |||
13. Which of the following is not part of aggregate demand? | |||
Government spending | |||
Exchange rate | |||
Net exports | |||
Investment | |||
Ans. | |||
14. The relationship between wage-price inflation and the level of economic activity is known as | |||
GNP - inflation effect | |||
Demand-supply effect | |||
Phillips curve | |||
Irving Fisher | |||
Ans. | |||
15. For optimal macroeconomic effectiveness, monetary policy should be | |||
Independently applied | |||
Coordinated with fiscal policy | |||
coordinated with trade, fiscal and exchange rate policy | |||
All of the above | |||
Ans. | |||
16. Negative externalities can be internalized through | |||
Taxes | |||
Subsidies | |||
Taxes and subsidies | |||
Taxes or subsidies | |||
Ans. | |||
17. The theory of "Purchasing Power Parity" holds that | |||
All countries price levels are equal, when measured in terms of the same currency | |||
Price levels are equal, ignoring transportation cost | |||
Both (a) and (b) | |||
None of the above | |||
Ans. | |||
18. Cross elasticity of demand is positive if the goods are | |||
Substitutes | |||
Complements | |||
Inferior | |||
Normal | |||
Ans. | |||
19. Consumer surplus means | |||
Total price paid to purchase a basket of goods | |||
Difference between what consumer wants to pay and actual price | |||
What consumer wants to pay | |||
What consumer actually paid | |||
Ans. | |||
20. A binomial distribution may be approximated by a Poisson distribution (where n = number of trails and p = probability of success in each trail) if | |||
n is large and p is small | |||
n is small and p is large | |||
n is small and p is small | |||
(a) and (b) but not (c) | |||
Ans. | |||
21. The number of imported automobiles in a year is an example of what type data? | |||
Nominal | |||
Qualitative | |||
Discrete | |||
Continuous | |||
Ans. | |||
22. Decrease in the general level of prices is known as | |||
Inflation | |||
Deflation | |||
Depreciation | |||
Hyperinflation | |||
Ans. | |||
23. Short run AC of firm is U shaped because the production process | |||
Follows law of diminishing marginal utility | |||
Follows law of diminishing marginal product | |||
Follows returns to scale | |||
Does not follow any law | |||
Ans. | |||
24. Which one does not directly affect the value of money multiplier? | |||
Required reserve ration | |||
Currency deposit ratio | |||
Excess reserve ratio | |||
Credit - deposit | |||
Ans. | |||
25. Presence of Heteroscedasticity in a Classical Linear Regression Model indicates | |||
Disturbances appear in the population regression are Homoscedastic | |||
Variance for variables considered in the model are same | |||
Standard deviations for all variable of the model are different | |||
The error term of the model has unequal variance | |||
Ans. | |||
26. What is not included in narrow money () | |||
Currency | |||
Demand deposits | |||
Other Checkable deposits | |||
Time deposits | |||
Ans. | |||
27. Scarcity is the imbalance between | |||
Demand and supply | |||
Limited resources and limited wants | |||
Limited resources and unlimited wants | |||
None of the above | |||
Ans. | |||
28. Causes of Multicollinearity in an Econometric model is/are due to | |||
Improper use of dummy variable | |||
Presence of correlation among the explanatory variables | |||
Inclusion of less number explanatory variables | |||
Both a and b | |||
Ans. | |||
29. The Doha Round of multilateral trade negotiations could not yet achieve its goal because of | |||
Disagreements over agricultural subsidy issues | |||
Disagreements over tariff issues | |||
Refusal to negotiate | |||
None of the above | |||
Ans. | |||
30. Money supply is controlled by central bank through | |||
Open market Operation | |||
Changing reserve requirement | |||
Changing discount rate | |||
All of the above | |||
Ans. | |||
31. Supply side policy is related with the | |||
Supply side improvement on real output | |||
Supply side improvement on price level and real output | |||
Demand for real output | |||
Demand and supply of real output | |||
Ans. | |||
32. In conducting monetary policy, Bangladesh Bank pursues a strategy of | |||
Inflation targeting | |||
Monetary targeting | |||
Both of the above | |||
None of the above | |||
Ans. | |||
33. 'Dumping' in international trade means | |||
Forcing other countries to buy a country's goods | |||
Charging a lower price for exported goods than the same goods sold domestically | |||
Charging a lower price for exported good than the same goods sold domestically | |||
Both (a) and (c) | |||
Ans. | |||
34. In the long run, a monopoly firm ears/incurs | |||
Zero Profit | |||
Supernormal profit | |||
Loss | |||
All of the above | |||
Ans. | |||
35. Short run MC cuts AC | |||
At its maximum point | |||
At its minimum | |||
At any point | |||
Either a or b | |||
Ans. | |||
36. Monetary policy deals with | |||
Interest rate | |||
Money Supply | |||
Depreciation | |||
Hyperinflation | |||
Ans. | |||
37. Which one is not included in the current account of balance of payment of a country? | |||
Transfer payments | |||
Foreign remittance | |||
Foreign direct investment | |||
Investment income | |||
Ans. | |||
38. Effect of Business cycle includes | |||
Fluctuation in the level of output | |||
Fluctuation in the level of employment | |||
Fluctuation in the price level | |||
All of the above | |||
Ans. | |||
39. "Inflation is always and everywhere a monetary phenomenon." Who said this? | |||
John Maynard Keynes | |||
James Tobin | |||
Milton Friedman | |||
Irving Fisher | |||
Ans. | |||
40. A discount bond | |||
Pays the bondholder the same amount every period until the maturity date | |||
At the maturity date pays the bondholder the face value of the bond plus an interest payment | |||
Pays the bondholder a fixed interest payment every period and repays the face value at the maturity date | |||
Pays the bondholder face value at the maturity date | |||
Ans. | |||
41. In the simple Keynesian model, the magnitude of the multiplier depends on | |||
Marginal propensity to consume | |||
Real interest rate | |||
Growth in the real money supply | |||
Money multiplier | |||
Ans. | |||
42. The IMF Articles of Agreement encourages currency convertibility on | |||
Current account of the BOP | |||
Capital account of the BOP | |||
None of the above | |||
Both (a) and (b) | |||
Ans. | |||
43. Demand curve for a perfectly competitive industry is | |||
Horizontal | |||
Downward sloping | |||
Upward sloping | |||
Perfectly inelastic | |||
Ans. | |||
44. Excess capacity is absent in | |||
Perfect competition | |||
Monopoly | |||
Monopolistic competition | |||
Oligopoly | |||
Ans. | |||
45. In the oligopolistic market, firms sell | |||
Homogenous product | |||
Differentiated product | |||
Homogenous or differentiated product | |||
None of the above | |||
Ans. | |||
46. Horizontal demand curve for a perfectly competitive firm indicates | |||
Demand is limited | |||
Demand id unresponsive | |||
Demand is unlimited to a single firm | |||
Demand is perfectly inelastic | |||
Ans. |