EDUCATION CIRCLE

Important points :- 1. THE REVENUE RAISED THROUGH THE PRINTING  OF MONEY IS CALLED  SEIGNI ORAGE. 2. PRINTING MONEY TO RAISE REVENUE IS  THEREFORE LIKE IMPOSING A TAX WHICH IS  CALLED- INFLATION TAX 3. THE TRADEOFF BETWEEN INFLATION &  UNEMPLOYMENT IS CALLED THE PHILLIPS CURVE. 4. “TOO MUCH MONEY CHASING AFTER TOO FEW  GOODS” IS RELATED TO DEMAND PULL INFLATION. 5. HEADLINE INFLATION CONSIDERS THE PRICES  OF ALL THE GOODS & SERVICES. 6. CORE INFLATION CONSIDERS THE PRICES OF ALL  GOODS AND SERVICES EXCEPT COMMODITY PRICES  (LIKE PRICES OF VEGETABLES, FRUITS, FUEL ITEMS.) 7. WPI- PUBLISHED BY OFFICE OF ECONOMIC  ADVISER (MINISTRY OF COMMERCE & INDUSTRY). 8. CPI- PUBLISHED BY CENTRAL STATISTICS OFFICE (MINISTRY OF STATISTICS & PROGRAMME  IMPLEMENTATION) 9. THE TERM CORE INFLATION WAS COINED BY  EcKstein (1981). 10. MANUFACTURED PRODUCTS HAS MAXIMUM  WEIGHT IN WHOLE SALE PRICE INDEX IN INDIA. 11. THE RATE OF INFLATION IN INDIA IS MEASURED  IN RESPE

       1.The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows: a. Unemployment is not possible in the short run. b. Demand and supply are never equal. c. Supply creates its own demand.✔ d. Demand creates its own supply. 2. The classical economists argued that the production of goods and services (supply) generates an equal amount of total income and, in turn, total spen-ding. This theory is called: a. Keynes' General Theory. b. Say's Law.✔ c. The "animal spirits" theory. d. The law of autonomous consumption. 3. Which of the following statements is true about Say's law? a.It states that supply creates its own demand.✔ b.It states that demand creates its own supply. c.It states that total output will always exceed total spending. d.It states that consumption spending is the most volatile component of  aggregate expenditures. 4. The school o

                         1. The Holidays for the Banks are declared as per........?  A RBI act  B Banking Regulation Act C Negotiable Instruments Act  D Companies Act  Ans- C  2. Interest below which a bank is not expected to lend to customers is known as ...?  A Deposit Rate  B Base Rate C Prime Lending Rate  D bank Rate  Ans- B  3. What does the letter"C" denotes in the term CBS as used in Banking operations?  A Central  B Core  C Commercial  D Capital  Ans- B  4. The Term FTZ stand for......?  A Free trade Zone  B Food trade Zone  C Foriegn Trade one  D Fiscal Trade Zone  Ans- A  5. Excise duty is the tax levied on?  A Production of goods  B Import of goods  C Profits on sale of oods  D None of these  Ans- A  6. A money deposited at a bank that cannot be withdrawn for a period fixed period of time is  known as a ......?  A Term Deposit B Checking Account  C Savings bank deposits  D Current Deposit