MCQs: Business Cycle, Policies, National Income

MCQs: Business Cycle, Policies, National Income

MCQs: Business Cycles

Characteristics of a Business Cycle

1. Which of the following is NOT a characteristic of a business cycle?

Regular and predictable pattern Involves expansion and contraction Affects all sectors equally Recurrent in nature

Phases of a Business Cycle

2. The phase of business cycle which is characterized by rising employment and income is:

Recession Recovery Trough Depression

MCQs: Monetary & Fiscal Policy

Tools of Monetary Policy

3. Which is NOT a tool of monetary policy?

CRR SLR Government spending Repo rate

Monetary Policy Response to Global Financial Crisis

4. During the 2008 global financial crisis, the Reserve Bank of India:

Increased interest rates Cut interest rates and infused liquidity Imposed capital controls Focused on exchange rate management

Fiscal Policy & FRBM Act

5. The FRBM Act aims to:

Increase fiscal deficit Ensure revenue deficit Promote fiscal discipline Increase government borrowing

MCQs: National Income and GDP

National Income Concepts

6. Which of the following is included in the calculation of national income?

Transfer payments Sale of old goods Rent from property Black market transactions

Computation Methods

7. GDP at market prices is equal to:

GDP at factor cost + Net indirect taxes GNP - Depreciation NNP at FC + Subsidies GNP at MP - Imports

Utility

8. Utility in economics refers to:

Usefulness in production Satisfaction derived from consumption Capacity to generate income Demand for a product

Types of Business Cycles

9. The Kitchin cycle lasts for approximately:

3–5 years 7–11 years 15–25 years 40–60 years

Business Cycle Indicators

10. Which of the following is a leading indicator of business cycles?

Industrial production Stock market returns Unemployment rate Inflation rate

Objectives of Monetary Policy

11. One of the major objectives of India's monetary policy is:

Increasing fiscal deficit Stabilizing the rupee-dollar exchange rate Promoting price stability and growth Managing government revenues

Monetary Policy Tools

12. What does an increase in CRR by RBI lead to?

Increase in money supply Decrease in money supply No impact on liquidity Increase in credit availability

Fiscal Deficit

13. Fiscal deficit is calculated as:

Revenue receipts – capital expenditure Total expenditure – total revenue (excluding borrowings) Capital receipts – total expenditure Revenue deficit – interest payments

FRBM Act

14. FRBM Act was enacted in the year:

2000 2003 2005 2010

GDP and GNP

15. GNP is equal to:

GDP + Net Factor Income from Abroad GDP – Indirect Taxes GDP – Net Exports GDP + Depreciation

Per Capita Income

16. Per capita income is calculated by:

National Income × Population National Income ÷ Total Population GDP ÷ Working Population NNP ÷ Labor Force

Nominal vs Real GDP

17. The difference between nominal and real GDP is due to:

Fiscal policy impact Inflation/deflation Government spending Trade surplus

National Income Aggregates

18. Which of the following is not a national income aggregate?

NNP at FC GDP at MP Personal Income Wholesale Price Index

---

Chapter Number	PAPER I – INDIAN ECONOMY & INDIAN FINANCIAL SYSTEM MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING
1.	MODULE B: ECONOMIC CONCEPTS RELATED TO BANKING Fundamentals of Economics, Microeconomics, Macroeconomics, Types of Economies, and Supply & Demand
2.	Money Supply and Inflation
3.	Theories of Interest - Explained with Examples
4.	Business Cycles and Economic Policies - Explained with Examples
5.	National Income, GDP and Union Budget - Explained with Examples
QandAs/MCQs 8	MCQs: Economics Fundamentals, Micro and Macro Concepts
QandAs/MCQs 9	MCQs on Money, Money Supply, and Inflation
QandAs/MCQs 10	MCQs on Theories of Interest - IS-LM, Classical & Keynesian Theory
QandAs/MCQs 11	MCQs: Business Cycle, Policies, National Income
QandAs/MCQs 12	MCQs: Monetary & Fiscal Policy | National Income | Union Budget
MODULE C: INDIAN FINANCIAL ARCHITECTURE
MODULE D: FINANCIAL PRODUCTS AND SERVICES
MODULE A: INDIAN ECONOMIC ARCHITECTURE