Economics Practice MCQ Page 29

Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1718   One concerned raised by the government 's building of surpluses in the Social Security fund is
  1. fiscal drag.
  2. excessive consumption spending.
  3. the possibility of a trade deficit.
  4. bracket creep.
Question: 1719   The budget process of the federal government includes all of the following expect
  1. executive formulation review.
  2. line-item executive review.
  3. congressional action.
  4. budget execution and control.
Question: 1721   All of the following are financial intermediaries except
  1. a commercial bank .
  2. a savings -and loan association.
  3. a department store's credit-card division .
  4. a credit union.
  5. an insurance company.
Question: 1724   Which of the following is not a social benefit resulting financial intermediation?
  1. Pooling of risks.
  2. Shorter terms of loans for borrowers.
  3. An economical concentration of information.
  4. Improved liquidity for lenders.
  5. Reduced information costs for borrowers and lenders.
Question: 1726   Most of the profits of banks come from
  1. service charges on checking accounts.
  2. subsidies from the Federal Reserve.
  3. lending at higher interest rates than they pay on deposits.
  4. feeds charged to customers for transactions and services .
  5. stealing the deposits of customers.
Question: 1730   The assets of commercial banks include all of the following expect
  1. government bonds.
  2. saving accounts.
  3. loans to firms .
  4. vault cash.
  5. deposits at the Fed.
Question: 1731   A bank's reserves include
  1. only vault cash.
  2. vault cash and deposits at the Fed.
  3. vault cash and loans due within thirty days.
  4. only deposits at the Fed.
  5. vault cash ,deposits at the Fed , and deposits at other banks.
Question: 1733   After the collapse of central planning in Russia,
  1. state run banks continued to hold their monopoly over banking .
  2. the government's Inkombank failed.
  3. a private banking system had to be created .
  4. the new government simply asked foreign banks to manage the ruble.
Question: 1739   The "too -big-to-fail" doctrine was created to
  1. make it easier for the Treasury to sell bonds.
  2. limit losses should a relatively large bank fail.
  3. guarantee major loans made by U.S.banks to other countries.
  4. provide extra deposit insurance for all nonprofit charitable banks.
Question: 1741   The required -reserve ratio specifies the ratio of reserves to
  1. currency.
  2. vault cash.
  3. the total money supply.
  4. loans.
  5. deposits.
Question: 1744   The discount rate is the
  1. reduced interest rate banks give to their largest customers.
  2. interest rate that banks pay on deposits.
  3. interest rate that Fed pays on the deposits of banks.
  4. interest that the Fed charge on loans to banks.
  5. interest rate that banks charge one another for loans.
Question: 1747   Government deposit insurance cut the link between the ability of a bank to attract deposits and
  1. the money supply .
  2. interest rates.
  3. the real estate market.
  4. bank performance.

Answers to the questions of Economics on this page

Following list gives the correct choice for the answer of the Economics mcqs.
1718 . A       1719 . B       1721 . C       1724 . B       1726 . C       1730 . B       1731 . B       1733 . C       1739 . B       1741 . E       1744 . D       1747 . D      

Select Page Number

Economics Page 1Economics Page 2Economics Page 3Economics Page 4Economics Page 5Economics Page 6Economics Page 7Economics Page 8Economics Page 9Economics Page 10Economics Page 11Economics Page 12Economics Page 13Economics Page 14Economics Page 15Economics Page 16Economics Page 17Economics Page 18Economics Page 19Economics Page 20Economics Page 21Economics Page 22Economics Page 23Economics Page 24Economics Page 25Economics Page 26Economics Page 27Economics Page 28Economics Page 29Economics Page 30Economics Page 31Economics Page 32Economics Page 33Economics Page 34Economics Page 35Economics Page 36Economics Page 37Economics Page 38Economics Page 39Economics Page 40Economics Page 41Economics Page 42Economics Page 43Economics Page 44Economics Page 45Economics Page 46Economics Page 47Economics Page 48Economics Page 49Economics Page 50Economics Page 51

MCQ for Practicing Subject Tests

Biology Chemistry Computer Sciences Management Physics Other Subjects
USA College Scholarships Computer Sciences MCQ Management Sciences MCQ Physics MCQ Chemistry MCQ Biology MCQ

----------------------