Determining bank problem
Which of the given is a bank? a) Post office saving banks (b) LIC (c) UTI (d) IDBI.
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Post office saving banks is not bank in the logic that even though they accept deposits from public however do not advance loans to the others.
LIC, UTI and IDBI are also not banks in the logic that even though they do not accept chequeable deposits however advance loans to others.
Why the repayment of loan is a capital expenditure? Answer: Repayment of loan is taken as a capital expenditure since it diminishes the liabilities of Government.
The fact that most of the necessities for life like water are priced much lower than the frivolities like diamonds is addressed by the: (1) Utilitarian enigma. (2) Law of diminishing marginal utility. (3) Rational ignorance of hypothesis. (4) Paradox of the value. (5)
The country’s balance of trade is Rs.500 crores. The value of exports of goods is Rs. 650 crores. What is the value of imports of goods?
Does full employment take place if AD = AS or S = I?
How can governments seek to control their national economies through fiscal and monetary policies?
A change in tax rate changes the IS equation, LM equation remaining the same. Let same, let us suppose that the government raises the tax rate from 20 percent to 25 percent<
When speculators are right, their actions: (1) Cause already depressed prices to drop/fall further. (2) Raise the risks to another firm of doing business. (3) Prevent price refuses from their peaks. (4) Reduce both the phase of prices and their volatility across time.
Explain the main features of Harrod - Domar Growth model. How does the Harrod Domar model explain the occurrence of trade cycles?
What are the “powers of the Federal Reserve
What happens when AD > AS past to full employment level of employment?
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