Public Finance & the Money Market — Practice

Question 1

A public good is characterised by

Accepted Answer

B

Question 2

Fiscal deficit equals

Accepted Answer

C

Question 3

The repo rate is the rate at which

Accepted Answer

B

Question 4

A factory discharging effluent into a river is an example of

Accepted Answer

B

Question 5

An insured person driving less carefully because they are covered is an example of

Accepted Answer

B

Question 6

Repayment of a loan by the government is

Accepted Answer

B

Question 7

The speculative demand for money varies

Accepted Answer

B

Question 8

Which is the correct description of M1?

Accepted Answer

A

Question 9

If the cash reserve ratio is 10%, an initial deposit of 1,000 can create total deposits of

Accepted Answer

B

Question 10

The Statutory Liquidity Ratio differs from the Cash Reserve Ratio in that SLR is

Accepted Answer

B

Question 11

An indirect tax on necessities is generally regarded as

Accepted Answer

C

Question 12

Government provision of free primary education is primarily an exercise of the

Accepted Answer

A

Question 13

Cost-push inflation is best addressed by

Accepted Answer

B

Question 14

An economy has a large fiscal deficit but a primary deficit close to zero. This indicates that

Accepted Answer

B

Question 15

To combat a recession, the appropriate combination of policies is

Accepted Answer

A

Practice — Public Finance & the Money Market