Which is a monetary measure to increase employment?

1. 1. Increase in govt. expenditure
   2. Reduce govt. expenditure
   3. reducing interest rate
   4. Increase in interest rate

Treasury bill is used for _____.

1. 1. getting long term loans
   2. getting short term loans
   3. Treasury bill is not credit instrument
   4. Treasury bill is a govt. tax bill

Open Market Operations is _____.

1. 1. buying and selling govt. securities
   2. buying and selling bills of exchange
   3. buying and selling shares of companies
   4. buying and selling foreign exchange

Modern theory of international trade is based on the views of _____.

1. 1. Robbins and Ricardo
   2. Adam Smith and Marshall
   3. Heckcsher and Ohlin
   4. None of these

Trade between two countries can be useful if cost ratios of goods are _____.

1. 1. equal
   2. undetermined
   3. decreasing
   4. different

Theory of comparative advantage was presented by _____.

1. 1. Ricardo
   2. Adam Smith
   3. Arshad
   4. Hicks

If quantity of money increases 100%, other things remaining constant, value of money changes by:

1. 1. Increases by 100%
   2. Decreases by 200%
   3. Decreases by 100%
   4. Does not change

When banks prepare their balance sheets, they show the money lent in _____.

1. 1. Liability
   2. Assets
   3. Both assets and liabilities
   4. None of these

The power of a bank to create credit is affected by _____.

1. 1. The cash reserve requirement
   2. The amount of cash available
   3. The number of branches of a bank
   4. (a) and (b) above

Velocity of circulation of money means _____.

1. 1. The number of times a unit of money changes hands daily
   2. The number of times a unit of money changes hands monthly
   3. The number of times a unit of money changes value
   4. The number of times a unit of money changes hands annually