Business Economics and Business and Commercial Knowledge - 8 mtp MTP

If the required reserve ratio is 20 percent, currency in circulation is ~ 800 billion, demand deposits are © 2000 billion, and excess reserves total © 2 billion, find the value of money multiplier (a) 2.50 (b) 2.90 (c) 2.60 (d) 2.40 Money Supply is directly proportional to: (a) Cash reserve ratio (r) (b) Monetary base (H) (c) currency deposit ratio (k) (d) Money Multiplier (m) A group of countries that have a free trade agreement between themselves and may…

1. Which of the following is NOT a function of public finance? (A) Allocation of resources for public goods (B) Income redistribution to achieve social equity (C) Providing tax relief to corporates to boost economic growth (D) Stabilization of the economy through fiscal measures

2. Which of the following is NOT a part of the money supply in an economy? (A) Currency held by the central bank (B) Demand deposits in commercial banks (C) Saving accounts in commercial banks (D) Time deposits in commercial banks 3. | Which of the following is NOT a typical tool of monetary policy used by a central bank? (A) Open market operations (B) Changing the reserve requirements of commercial banks (C) Adjusting the tax rates in the economy…