M.A. (Semester IV) (CBCS) Examination Mar/Apr-2018
Economics
MONETARY ECONOMICS
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Figures to the right indicate full marks.
Q.1
Choose the correct option:
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Which among the following is considered to be the most liquid asset?
Gold
Money
Land
Treasury bonds
The primary function of bank is to
Control the money supply
Make the profit
Provide a cheque clearing system
None of these
The speculative demand for money depends on
Interest rate
Income
Profit
Output
IS curve stands
Income-saving curve
Investment-saving curve
Independent saving curve
None of these
Consumption is the function
Saving
Interest rate
Income
All of the above
The marginal propensity to consume
Shows how much income changes when consumption falls
Is always greater than one
Will be equal to one if the MPS is equal to one.
Shows the proportion of an extra income that is spent on consumption
When prices rise slowly and predictably, we can that
Galloping inflation
Low inflation
Hyperinflation
Deflation
Q.2
Write short notes. (Any four)
14
Function of money.
Transaction demand for money.
Investment-saving curve
Trade cycle.
Determinants of rate of interest.
Q.3
Short answer types questions. (Any two)
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What is currency-deposit ratio and reserves-deposits ratio?
Objectives of monetary policy.
What is consumption function?
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SLR-HZ-19
Q.4
Descriptive types questions with internal choice. (Any one)
14
What is meant by liquidity preference? Explain various motives of liquidity preference.
OR
What is investment function? Explain the MPI and API.
Q.5
What is multiplier? What are possible leakages in the multiplier mechanism?
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