1. In which circumstance will an increase in the public sector deficit not lead to an increase in the money supply other things being equal?

The deficit is financed by an increase in government borrowing from private individuals

The rate of interest is held constant

There is large-scale unemployment

Commercial bank lending to the private sector is held constant

2. The founder of the Grameen Bank is--

Lutfur Rahman Sarker

Professor Mohammad Yunus

Fazle Hossain Abed

Professor Muzaffar Ahmed

3. Money can be easily acquired and disposed of without high costs and with relative certainty as to its value.

acceptability

durability

liquidity

purchasing power

4. How many schedule banks in bangladesh at present?

48

47

47

49

5. What is the most abundant form of money (measured by value) in a developed economy?

bank deposits

cash

cheques

credit card

6. Other things remaining unchanged, what is likely to be a consequence of an increase in net cash withdrawals from the commercial banks?

an inflationary spiral

an increase in the cash reserves of the commercial banks to lend

an increase in the liquidity of the commercial banks

a restriction in the ability of the commercial banks to lend

7. A 'bear market' means, that share price are--

falling

rising

going

static

8. In a closed economy, if the income velocity of circulation of money remains constant,what will be the result of an increase in the money supply?

a proportionate increase in the level of money income

a proportionate increase in the level of output

a proportionate increase in the rate of growth of money income

a proportionate increase in the rate of growth of output

9. The first private sector bank in bangladesh is--

National Bank Ltd

Trust Bank Ltd.

Agrani Bank Ltd.

AB Bank Ltd.

10. What will result in an increase in the transaction demand for money?

an increase in interest rates

an increase in the proportion of workers paid monthly, rather than weekly

a reduction in the level of real income

a reduction in the price level