Thursday, 6 October 2011

Numerical Questions for Economics


Internal Test – Set 1
SYBAF

If a country’s banking system starts with deposits of Rs.2,00,000/- and reserve ratio is 5% then -

Q.1         How much will be the amount of loans created in the economy?

a)      Rs. 4,00,000
b)      Rs. 40,00,000
c)       Rs. 8,00,000
d)      Rs. 4,00,000,000

Q.2         If the currency to deposit ratio is 20% and High-Powered money is Rs. 20,00,000; then what is the Money Supply in the economy?

a)      Rs.9,00,000
b)      Rs.9,60,000
c)       Rs.96,00,000
d)      Rs.96,00,000

Q.3         If the National Income is Rs. 48,00,00,000 then what is the Velocity of Money in Circulation?        a) 5
                b) 50
                c) 500
                d) 10

Q.4         If the government wants to reduce the money supply by half and other things are as they are, what should be the reserve ratio?

a)      0.5
b)      0.2
c)       0.4
d)      0.3

Q.5         How much will be the amount of credit if the initial deposits increase by 50% ?

a)      Rs.9,99,000
b)      Rs.12,00,000
c)       Rs.15,00,000
d)      Rs.9,00,000

The High-Powered Money in the economy is Rs.2 crores and currency to deposit ratio is 10%

Q.6         If the reserve ratio is 10%, find out the money supply in the economy -
               
a)      Rs. 11,00,00,000
b)      Rs. 10,00,00,00,000
c)       Rs. 5,00,00,000
d)      Rs.50,00,00,000

Q.7         If the money supply is to be reduced by half, what should be the High-Powered Money?
               
a)      Rs. 1,00,00,000
b)      Rs. 20,00,00,000
c)       Rs. 2,00,000
d)      Rs. 10,00,00,000

Q.8         If the reserve ratio becomes 20%, what will happen to Money Supply?

a)      Increase
b)      Decrease
c)       Remain same
d)      None of these

Q.9         If the reserve ratio becomes 5%, what will be Money Supply?

a)      Rs. 15,00,00,000
b)      Rs. 14,60,00,000
c)       Rs. 13,60,00,000
d)      Rs. 15,60,00,000

Q.10       What will be the amount of credit if the initial deposits are Rs. 10,00,000?
               
a)      Rs. 20,00,000
b)      Rs. 2,00,00,000
c)       Rs. 2,00,000
d)      Rs. 25,00,00,000

The High-Powered Money in the economy is Rs.2 crores and currency to deposit ratio is 10%

Q.1         If the reserve ratio is 10%, find out the money supply in the economy -
               
e)      Rs. 11,00,00,000
f)       Rs. 10,00,00,00,000
g)      Rs. 5,00,00,000
h)      Rs.50,00,00,000

Q.2         If the money supply is to be reduced by half, what should be the High-Powered Money?
               
e)      Rs. 1,00,00,000
f)       Rs. 20,00,00,000
g)      Rs. 2,00,000
h)      Rs. 10,00,00,000

Q.3         If the reserve ratio becomes 20%, what will happen to Money Supply?

e)      Increase
f)       Decrease
g)      Remain same
h)      None of these

Q.4         If the reserve ratio becomes 5%, what will be Money Supply?

e)      Rs. 15,00,00,000
f)       Rs. 14,60,00,000
g)      Rs. 13,60,00,000
h)      Rs. 15,60,00,000

Q.5         What will be the amount of credit if the initial deposits are Rs. 10,00,000?
               
e)      Rs. 20,00,000
f)       Rs. 2,00,00,000
g)      Rs. 2,00,000
h)      Rs. 25,00,00,000

If a country’s banking system starts with deposits of Rs.2,00,000/- and reserve ratio is 5% then -

Q.6         How much will be the amount of loans created in the economy?

e)      Rs. 4,00,000
f)       Rs. 40,00,000
g)      Rs. 8,00,000
h)      Rs. 4,00,000,000

Q.7         If the currency to deposit ratio is 20% and High-Powered money is Rs. 20,00,000; then what is the Money Supply in the economy?

e)      Rs.9,00,000
f)       Rs.9,60,000
g)      Rs.96,00,000
h)      Rs.96,00,000

Q.8         If the National Income is Rs. 48,00,00,000 then what is the Velocity of Money in Circulation?        a) 5
                b) 50
                c) 500
                d) 10

Q.9         If the government wants to reduce the money supply by half and other things are as they are, what should be the reserve ratio?

e)      0.5
f)       0.2
g)      0.4
h)      0.3

Q.10       How much will be the amount of credit if the initial deposits increase by 50% ?

e)      Rs.9,99,000
f)       Rs.12,00,000
g)      Rs.15,00,000
h)      Rs.9,00,000


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