Who is regarded as the ‘Father of Modern Macro Economics’?
a.
Ragnar Frisch
b.
Adam Smith
c.
Karl Marx
d.
J.M. Keynes
Correct Answer
Step-by-Step AI Explanation
Verified Method
J.M. Keynes is regarded as the ‘Father of Modern Macro Economics’ because he developed the modern theory of income, output, employment, and aggregate demand. Ragnar Frisch was a pioneer in econometrics, Adam Smith is the Father of Economics, and Karl Marx is associated with socialist economic thought.
Q2mcq1 mark
Identify the flow variable.
a.
Income
Correct Answer
b.
Money supply
c.
Foreign Exchange reserves
d.
Assets
Step-by-Step AI Explanation
Verified Method
Income is a flow variable because it is measured over a period of time, such as per month or per year. Money supply, foreign exchange reserves, and assets are stock variables because they are measured at a point of time.
Q3mcq1 mark
Expansion for NNP is :
a.
National Net Provident
b.
Net National Product
Correct Answer
c.
Net National Provident
d.
National Net Product
Step-by-Step AI Explanation
Verified Method
NNP stands for Net National Product. It is obtained by deducting depreciation from Gross National Product.
Q4mcq1 mark
The sum of MPC and MPS is __________.
a.
0.1
b.
1
Correct Answer
c.
1.1
d.
2
Step-by-Step AI Explanation
Verified Method
The sum of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) is always 1, because every additional unit of income is either consumed or saved.
Q5mcq1 mark
Keynes theory emphasized on __________ equilibrium.
a.
Very long run
b.
Very short run
c.
Long run
d.
Short run
Correct Answer
Step-by-Step AI Explanation
Verified Method
Keynes’ theory emphasized short-run equilibrium. He analyzed how national income, output, and employment are determined in the short period, especially during unemployment and underemployment.
Q6mcq1 mark
The RBI Headquarters is located at __________.
a.
Mumbai
Correct Answer
b.
Delhi
c.
Bengaluru
d.
Chennai
Step-by-Step AI Explanation
Verified Method
The headquarters of the Reserve Bank of India (RBI) is located in Mumbai.
Q7mcq1 mark
Irving Fisher’s Quantity Theory of Money was popularized in __________.
a.
1911
Correct Answer
b.
1908
c.
1914
d.
1910
Step-by-Step AI Explanation
Verified Method
Irving Fisher’s Quantity Theory of Money was popularized in 1911 through his famous work on the purchasing power of money.
Q8mcq1 mark
Central Bank is __________ authority of any country.
a.
Wage
b.
Monetary
Correct Answer
c.
National income
d.
Fiscal
Step-by-Step AI Explanation
Verified Method
A Central Bank is the monetary authority of any country. It regulates the money supply, credit, and banking system of the nation.
Q9mcq1 mark
Once the borrower fails to make Interest or Principal payments for _________ days the loan is considered to be a Non-Performing Asset.
a.
60
b.
30
c.
180
d.
90
Correct Answer
Step-by-Step AI Explanation
Verified Method
A loan is classified as a Non-Performing Asset (NPA) when the borrower does not pay interest or principal for 90 days or more. Therefore, (d) 90 is correct. The other options are incorrect because the standard NPA norm is not 30, 60, or 180 days.
Q10mcq1 mark
In which sector Foreign Direct Investments is not permitted in India?
a.
Pharmaceutical
b.
Banking
c.
Insurance
d.
Atomic Energy
Correct Answer
Step-by-Step AI Explanation
Verified Method
Foreign Direct Investment (FDI) is not permitted in Atomic Energy in India. This sector is reserved for the government due to strategic and security reasons. Hence, (d) Atomic Energy is the correct answer. FDI is permitted, subject to limits and regulations, in sectors like pharmaceutical, banking, and insurance.
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Age of cars in years (X) 3 6 8 9 10 6
Cost of Annual Maintenance (in 000 `) 1 7 4 6 8 4
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(b)Explain the objectives of ASEAN.
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