ICSE XII MCQ Quiz Hub

1. Which of the following is true?
Employment level declines due to decrease in demand
Price level falls due to deficient demand in the country
Production level falls deficient demand
All the above

2. The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as:
Inflationary Gap
Deflationary Gap
Both (a) and (b)
None of the above

3. Which of the following is a reason for surplus demand?
Increase in Public Expenditure
Increase in Money Supply
Fall in Taxes
All the above

4. In the situation of the deflationary gap:
Demand increases rapidly
Supply increase rapidly
Both demand and supply are equal
All of these

5. Which of the following causes the trade cycle?
Deflationary Conditions
Inflationary Conditions
Both (a) and (b)
None of these

6. Which one is the corrective measure for Deficient Demand?
Fiscal Measures
Monetary Measures
Both (a) & (b)
None of the above

7. Which measure is included in Fiscal Measures?
Public Expenditure
Taxation
Public Debt
All of these

8. Which fiscal measure should be adopted for correcting Deficient Demand?
Government should spend more on public works
Taxation should be reduced
Pubic debt should be reduced
All the above

9. With which component of Monetary Policy, Central Bank tries to attain economic stability in the country?
Supply of Money
Interest Rate
Availability of Money
All of these

10. Which method Central Bank adopts for controlling quantitative credit?
Bank Rate
Open Market Operations
Change in Cash Reserve Ratio
All the above

11. Which is a qualitative method of controlling credit?
Change in Margin Requirements of Loanee
Credit Rationing
Direct Action
All of these

12. Which monetary measure may be adopted to correct Deficient Demand?
Reduction in Bank Rate
Buying Securities in Open Markey
Reducing Cash Reserve Ratio
All the above