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.
Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency
The hypothetical information in the following table shows what the economic situation will be in 2015 if the Fed does not use monetary policy: Year Potential GDP Real GDP Price Level 2014 $15.2 trillion $15.2 trillion 110.0 2015 $15.6 trillion $15.8 trillion
People will purchase goods when their demand prices equivalent or surpass: (i) Transaction costs. (ii) Subjective prices. (iii) Price indexes. (iv) Market prices. (v) Wholesale prices. Please someone suggest me the right answer.
Describe any two measures by which a Central Bank can attempt to decrease the gap. Answer: Central bank can decrease this gap by adopting two measures illustrated b
Let suppose NDPFC is Rs. 1,000 crores, and NFA is Rs. (--) 5crores, then what will be national income (NNPFC)? Answer: NNPFC = NDPFC+NFA = 1000 + (-5) = Rs. 995 crores.
Examples of command economies are: a) the United States and Japan b) Sweden and Norway c) Mexico and Brazil d) Cuba and North Korea
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Reallocation of resources: In case, the market economy fails or does not attain the desired social objectives, the government has to interfere via budget and reallocate resources accordingly. Through its budgetary
For the firm, the major goal of profit sharing plans is to:
Predictions which restricting international trade to protect specific industries and “infant” firms would (a) inefficiently decrease aggregate output and employment, (b) raise the market power of the protected firms and their workers, and
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