In order to develop the banking habit of rural dwellers, the traditional money lenders should be
Proscribed
Legalized
Subsidized
Heavily taxed
Correct answer is C
In order to inculcate saving culture among rural dwellers, the activities of local money lenders in the area should be supported financially. The government or financial institutions can step in the gap and borne up some of the operational cost of the local lenders by granting credit facilities with little or no interest.
Demand pull inflation can aptly be described as
Inflation induced by rising costs of production
Reduction in government expenditure
Persistent rise in prices due to increase in expenditure
Massive importation of goods from a country with hyper inflation
Correct answer is C
Demand pull inflation is simply a rise in price as a result of a fall in supply. It is caused by increase in the costs of raw materials or labor that affect the supply of finished goods.
Which of the following is involved in the money market?
Building society
Development banks
Commercial banks
Stock exchange
Correct answer is C
Money market is a financial market for the sale and purchase of short term debt instruments.
The major participants in the money market are commercial banks, governments, corporations, government-sponsored enterprises, money market mutual funds, futures market exchanges, brokers and dealers, and the Federal Reserve.
A government that wants to get more revenue will increase the tax on commodities with a
High price elasticity of demand
Low price elasticity of demand
High income elasticity of demand
Low income elasticity of demand
Correct answer is B
Goods that have low price elasticity of demand are goods with little or no change in demand as their prices go up. Government can generate revenue by increasing taxes on such goods and the demand for it wont be affected. Example of such goods are luxurious goods.
The introduction of tariffs and quotas
Reduce the prices of imports
Increase the demand for locally made goods
Discourage domestic industries from becoming more efficient
Reduce the prices of locally made goods
Correct answer is B
One of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it.