Call Money Rate in Bangladesh

Topics: Monetary policy, Inflation, Macroeconomics Pages: 3 (424 words) Published: July 28, 2013

MONETARY ECONOMICS

1. “Inflation is always and everywhere a monetary phenomenon.” Who said this? – a) John Maynard Keynes;
b) James Tobin;
c) Milton Friedman;
d) Irving Fisher.

1. The relationship between wage-price inflation and the level of economic activity is known as – a) GNP-inflation effect;
b) Demand-supply effect;
c) Phillips curve;
d) None of the above.

2. Monetary policy stance of the central bank in Bangladesh can be found in which of the following publications? – a) Economic Review of the Ministry of Finance;
b) Bangladesh Bank Bulletin
c) Economic Trends (Bangladesh Bank);
d) Monetary Policy Statement (Bangladesh Bank).

3. In the IS-LM framework, what does LM stand for? –
a) Liquidity management;
b) The supply of nominal quantity of money;
c) The demand for money;
d) None of the above.
4. For optimal macroeconomic effectiveness, monetary policy should be – a) Independently applied;
b) Coordinated with fiscal policy;
c) Coordinated with trade, fiscal and exchange rate policy; d) All of the above.

5. In conducting monetary policy, Bangladesh Bank pursues a strategy of – a) Inflation targeting;
b) Monetary targeting;
c) Both of the above;
d) None of the above.

6. An increase in the rate of interest would increase – a) The transactions demand for money;
b) The prices of bonds;
c) The asset demand for money;
d) The opportunity cost of holding money.

INTERNATIONAL ECONOMICS

1. “Dumping” in international trade means –
a) Forcing other countries to buy a country’s goods;
b) Charging a lower price for exported goods than the same goods sold domestically; c) Resorting to price discrimination;
d) Both (a) and (c).

2. The theory of...
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