1. Which of these is not a monetary policy tool?
A. Discount rate
B. Open market operations
C. Balance account
D. Reserve requirements
2. Inflation is a sustained increase in the level of?
A. Profit
B. Income
C. Accounts
D. Prices
3. Monetary policy refers to what the Reserve Bank of India does to influence the amount of __________ and __________ in the Indian economy.
A. Taxes and Revenue
B. Currency and Gold reserves
C. Money and credit
D. Interest and debt
4. The goals of monetary policy do NOT include the promotion of _________________.
A. Maximum employment
B. Stable price
C. Moderate long-term interst rates
D. Low taxes
5. Expansionary monetary policy is most effective when
A. The economy has spare capacity
B. The economy is in a liquidity trap
C. The economy is close to full capacity
D. The economy has a positive output gap
6. Who was the first Indian Governor of the Reserve Bank of India?
7. Can you guess the name of this economist?
Email your answers with your name and roll number to
profKMody@gmail.com by 22 August 2015
