Review Bangladesh Bank Asst. Director (Research) 2011 Exam
1. What are appropriate value in the blank space
1, 2, 3
3, 2, 1
1, 3,1
2, 3, 1
Ans.
2. Which of the following could not bring about a shift in the demand for commodity X from D1 to D2 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.
3. 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.
4. The Isoquant curve is
Concave to the origin
Convex to the origin
Straight line
U shaped
Ans.
5. 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.
Direction: Choose the correct answer.
6. 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.
7. 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.
8. "Inflation is always and everywhere a monetary phenomenon." Who said this?
John Maynard Keynes
James Tobin
Milton Friedman
Irving Fisher
Ans.
9. In a BOP statement, outflow of dividend on Portfolio Investment is
Import of services
Export of services
Unilateral
Capital inflows
Ans.
10. Short run MC cuts AC
At its maximum point
At its minimum
At any point
Either a or b
Ans.
11. 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.
12. In the oligopolistic market, firms sell
Homogenous product
Differentiated product
Homogenous or differentiated product
None of the above
Ans.
13. '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.
14. 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.
15. 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.
16. Cross elasticity of demand is positive if the goods are
Substitutes
Complements
Inferior
Normal
Ans.
17. Decrease in the general level of prices is known as
Inflation
Deflation
Depreciation
Hyperinflation
Ans.
18. 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.
19. Monetary policy deals with
Interest rate
Money Supply
Depreciation
Hyperinflation
Ans.
20. What is not included in narrow money (M1)
Currency
Demand deposits
Other Checkable deposits
Time deposits
Ans.
21. 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.
22. Price-Specie-Flow mechanism is related to
Bretton-Woods system
Flexible exchange rate regime
Bi-metallism
None of them above
Ans.
23. Negative externalities can be internalized through
Taxes
Subsidies
Taxes and subsidies
Taxes or subsidies
Ans.
24. 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.
25. 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.
26. "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.
27. 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.
28. 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.
29. Which one does not directly affect the value of money multiplier?
Required reserve ration
Currency deposit ratio
Excess reserve ratio
Credit - deposit
Ans.
30. 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.
31. 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.
32. 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.
33. 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.
34. In the long run, a monopoly firm ears/incurs
Zero Profit
Supernormal profit
Loss
All of the above
Ans.
35. The number of imported automobiles in a year is an example of what type data?
Nominal
Qualitative
Discrete
Continuous
Ans.
36. Money supply is controlled by central bank through
Open market Operation
Changing reserve requirement
Changing discount rate
All of the above
Ans.
37. 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.
38. Scarcity is the imbalance between
Demand and supply
Limited resources and limited wants
Limited resources and unlimited wants
None of the above
Ans.
39. Which of the following is not part of aggregate demand?
Government spending
Exchange rate
Net exports
Investment
Ans.
40. 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.
41. The LM curve shifts rightward if
Nominal interest rates decrease
Money demand increases
Money supply increases
Aggregate output increases
Ans.
42. Excess capacity is absent in
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Ans.
43. Demand curve for a perfectly competitive industry is
Horizontal
Downward sloping
Upward sloping
Perfectly inelastic
Ans.
44. 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.
45. In conducting monetary policy, Bangladesh Bank pursues a strategy of
Inflation targeting
Monetary targeting
Both of the above
None of the above
Ans.
46. 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.
Total Question : 46
Total Hit : 0
Correct : 0
Wrong/Cheat : 0