Read Bangladesh Bank Asst. Director (Research) 2011 Exam
1. What are appropriate value in the blank space
(a) 1, 2, 3
(b) 3, 2, 1
(c) 1, 3,1
(d) 2, 3, 1
Ans. a
2. Which of the following is not considered in calculating GDP?
(a) A grant to the poor student
(b) A shareholders dividend
(c) A doctor's fees
(d) A landlord's rent
Ans. a
3. Which of the following could not bring about a shift in the demand for commodity X from D1 to D2 as shown in the diagram?
(a) A successful advertising campaign to promote
(b) An increase in the real income of the population of the country
(c) A fall in the price of X
(d) An increase in the price of a close substitute for X
Ans. c
4. The Isoquant curve is
(a) Concave to the origin
(b) Convex to the origin
(c) Straight line
(d) U shaped
Ans. b
5. Keeping other factors constant, total revenue of the producer from product from product X falls with the increase i price which suggest.
(a) The cross elasticity of demand for X with regard to Y is negative
(b) Income elasticity of demand for X is greater than 1
(c) Price elasticity of demand for X is greater than 1
(d) None of the above
Ans. c
Direction: Choose the correct answer.
6. Supply side policy is related with the
(a) Supply side improvement on real output
(b) Supply side improvement on price level and real output
(c) Demand for real output
(d) Demand and supply of real output
Ans. a
7. Negative externalities can be internalized through
(a) Taxes
(b) Subsidies
(c) Taxes and subsidies
(d) Taxes or subsidies
Ans. b
8. The number of imported automobiles in a year is an example of what type data?
(a) Nominal
(b) Qualitative
(c) Discrete
(d) Continuous
Ans. c
9. Price-Specie-Flow mechanism is related to
(a) Bretton-Woods system
(b) Flexible exchange rate regime
(c) Bi-metallism
(d) None of them above
Ans. b
10. Effect of Business cycle includes
(a) Fluctuation in the level of output
(b) Fluctuation in the level of employment
(c) Fluctuation in the price level
(d) All of the above
Ans. d
11. Which of the following is not part of aggregate demand?
(a) Government spending
(b) Exchange rate
(c) Net exports
(d) Investment
Ans. b
12. Decrease in the general level of prices is known as
(a) Inflation
(b) Deflation
(c) Depreciation
(d) Hyperinflation
Ans. b
13. Short run AC of firm is U shaped because the production process
(a) Follows law of diminishing marginal utility
(b) Follows law of diminishing marginal product
(c) Follows returns to scale
(d) Does not follow any law
Ans. b
14. Money supply is controlled by central bank through
(a) Open market Operation
(b) Changing reserve requirement
(c) Changing discount rate
(d) All of the above
Ans. d
15. Presence of Heteroscedasticity in a Classical Linear Regression Model indicates
(a) Disturbances appear in the population regression are Homoscedastic
(b) Variance for variables considered in the model are same
(c) Standard deviations for all variable of the model are different
(d) The error term of the model has unequal variance
Ans. c
16. In the oligopolistic market, firms sell
(a) Homogenous product
(b) Differentiated product
(c) Homogenous or differentiated product
(d) None of the above
Ans. c
17. A discount bond
(a) Pays the bondholder the same amount every period until the maturity date
(b) At the maturity date pays the bondholder the face value of the bond plus an interest payment
(c) Pays the bondholder a fixed interest payment every period and repays the face value at the maturity date
(d) Pays the bondholder face value at the maturity date
Ans. a
18. Which one does not directly affect the value of money multiplier?
(a) Required reserve ration
(b) Currency deposit ratio
(c) Excess reserve ratio
(d) Credit - deposit
Ans. b
19. Causes of Multicollinearity in an Econometric model is/are due to
(a) Improper use of dummy variable
(b) Presence of correlation among the explanatory variables
(c) Inclusion of less number explanatory variables
(d) Both a and b
Ans. b
20. "Managed Floating" of the exchange rate allows a central bank to
(a) Control volatility of the exchange rate
(b) Control money supply but at the cost of greater exchange rate instability
(c) Both of the above
(d) None of the above
Ans. a
21. "Inflation is always and everywhere a monetary phenomenon." Who said this?
(a) John Maynard Keynes
(b) James Tobin
(c) Milton Friedman
(d) Irving Fisher
Ans. c
22. The Doha Round of multilateral trade negotiations could not yet achieve its goal because of
(a) Disagreements over agricultural subsidy issues
(b) Disagreements over tariff issues
(c) Refusal to negotiate
(d) None of the above
Ans. a
23. Cross elasticity of demand is positive if the goods are
(a) Substitutes
(b) Complements
(c) Inferior
(d) Normal
Ans. a
24. The IMF Articles of Agreement encourages currency convertibility on
(a) Current account of the BOP
(b) Capital account of the BOP
(c) None of the above
(d) Both (a) and (b)
Ans. a
25. 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
Ans. b
26. Shifting long run aggregate supply curve to the right
(a) Raises potential output or capacity
(b) Reduces potential output or capacity
(c) reduces long run output
(d) None of the above
Ans. a
27. Scarcity is the imbalance between
(a) Demand and supply
(b) Limited resources and limited wants
(c) Limited resources and unlimited wants
(d) None of the above
Ans. c
28. '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) Charging a lower price for exported good than the same goods sold domestically
(d) Both (a) and (c)
Ans. b
29. Consumer surplus means
(a) Total price paid to purchase a basket of goods
(b) Difference between what consumer wants to pay and actual price
(c) What consumer wants to pay
(d) What consumer actually paid
Ans. b
30. In the simple Keynesian model, the magnitude of the multiplier depends on
(a) Marginal propensity to consume
(b) Real interest rate
(c) Growth in the real money supply
(d) Money multiplier
Ans. a
31. Which one is not included in the current account of balance of payment of a country?
(a) Transfer payments
(b) Foreign remittance
(c) Foreign direct investment
(d) Investment income
Ans. c
32. Monetary policy deals with
(a) Interest rate
(b) Money Supply
(c) Depreciation
(d) Hyperinflation
Ans. b
33. 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
Ans. d
34. 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
Ans. d
35. The LM curve shifts rightward if
(a) Nominal interest rates decrease
(b) Money demand increases
(c) Money supply increases
(d) Aggregate output increases
Ans. a
36. Excess capacity is absent in
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Ans. a
37. In a BOP statement, outflow of dividend on Portfolio Investment is
(a) Import of services
(b) Export of services
(c) Unilateral
(d) Capital inflows
Ans. d
38. 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) Irving Fisher
Ans. d
39. For the standard normal distribution, the z value gives the distribution, the z value gives the distance between
(a) The mean and a point in terms of the mean
(b) The mean and a point in terms of the standard deviation
(c) The mean and a point in terms of the variance
(d) The mean and a point in terms of the enter of the curve
Ans. d
40. Horizontal demand curve for a perfectly competitive firm indicates
(a) Demand is limited
(b) Demand id unresponsive
(c) Demand is unlimited to a single firm
(d) Demand is perfectly inelastic
Ans. c
41. The theory of "Purchasing Power Parity" holds that
(a) All countries price levels are equal, when measured in terms of the same currency
(b) Price levels are equal, ignoring transportation cost
(c) Both (a) and (b)
(d) None of the above
Ans. a
42. Demand curve for a perfectly competitive industry is
(a) Horizontal
(b) Downward sloping
(c) Upward sloping
(d) Perfectly inelastic
Ans. a
43. What is not included in narrow money (M1)
(a) Currency
(b) Demand deposits
(c) Other Checkable deposits
(d) Time deposits
Ans. d
44. In the long run, a monopoly firm ears/incurs
(a) Zero Profit
(b) Supernormal profit
(c) Loss
(d) All of the above
Ans. a
45. A binomial distribution may be approximated by a Poisson distribution (where n = number of trails and p = probability of success in each trail) if
(a) n is large and p is small
(b) n is small and p is large
(c) n is small and p is small
(d) (a) and (b) but not (c)
Ans. a
46. Short run MC cuts AC
(a) At its maximum point
(b) At its minimum
(c) At any point
(d) Either a or b
Ans. b