Question : Which of the following statement are true?

Sale of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.

Deficiency in demand has no effect on the country’s output and price.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Question

Question : Which of the following statement are true?

Sale of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.
Deficiency in demand has no effect on the country’s output and price.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Both are false.

Solution : To check depression, the central bank should purchase government securities from the open market
Deficiency in demand leads to fall in the country’s output and price.
Hence, Option B is correct.

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Question : Which of the following statement are true?

Grants received from World Bank is the revenue receipt.

Sale of public sector undertaking is a capital receipt.

Question : Which of the following statement are true?

Sale of securities through open market operations reduces the reserves of commercial banks.

Purchase of securities by central bank increase the the reserves and raises the banks ability to give

Question : Which of the following are true?

Generation and distribution are the two phases in circular flow of income.

There are no exports in a closed economy.

Question : Which of the following are true?

Domestic territory is also known as economy territory.

Printer purchased by lawyer is an intermediate good.

Question : Which of the following statement are true?

During excess demand, aggregate demand is insufficient to eliminate in voluntary unemployment.

To correct the inflationary gap money supply should be increased.