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.
Elucidate the concept of deflationary gap. Answer: Deflationary gap is the deficit in aggregate demand from the level needed to maintain full employment equilibrium
Macroeconomics is a study of: (1) the economy as an entire or in the aggregate. (2) worldwide economic problems of individual households. (3) interactions among firms and households in one exact market or industry. (4) the rising income inequality wit
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Describe cost-push inflation and its major source.
Tariffs: -are also called import quotas. -may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). -are per unit subsidies designed to promote exports. -are excise taxes on goods exported abroad.
Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average
Implications of fiscal deficit: (A) High fiscal deficit entails a big amount of borrowings in which the government takes more loans to pay back it. It raises the liability of government. Q : Fiscal and Monetary policies How can How can governments seek to control their national economies through fiscal and monetary policies?
How can governments seek to control their national economies through fiscal and monetary policies?
Elucidate the differences among the frictional, structural, and cyclical forms of unemployment.
Define bank rate policy? How does it operate as a technique of credit control? Answer: Bank rate is the rate at which the central bank provides loans to the commerc
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