Free Macroeconomics MCQs with Answers
1,499 Macroeconomics MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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1421. "Term bond" are bonds whose principle is payable at maturity. What does mean by Term certificate?
- A. A bond with a longer time to maturity
- B. A certificate of deposit whose principal is payable at maturity
- C. A certificate of deposit with a shorter time to maturity
- D. certificate of deposit with a longer time to maturity
Explanation: A term certificate is a certificate of deposit held for a fixed period, with its principal repaid when it matures.
Correct answer: A certificate of deposit whose principal is payable at maturity- A. Local currency
- B. Cold currency
- C. Lime currency
- D. Soft currency
Explanation: A soft currency is expected to lose value against other currencies, often because of weak economic conditions or limited demand.
Correct answer: Soft currency- A. Reserve currency
- B. Hot currency
- C. Pegged currency
- D. Hard currency
Explanation: Foreign currency held by a central bank for intervention and international settlements is called reserve currency.
Correct answer: Reserve currency- A. Infrastructure
- B. Basic structure
- C. Fundamentals
- D. Basic infrastructure
Explanation: Infrastructure is the basic physical framework that supports an economy, including transport, communication, energy and related…
Correct answer: Infrastructure- A. Fixed Direct Investment
- B. Foreign Direct Investment (FDI)
- C. Foreign Investment
- D. Remote Foreign Investment
Explanation: Foreign direct investment occurs when an investor acquires assets in another country and retains managerial or operating control through…
Correct answer: Foreign Direct Investment (FDI)- A. Pegged exchange rate
- B. Floating exchange rate
- C. Liberal exchanged rate
- D. Open exchange rate
Explanation: Under a floating exchange rate, the currency’s value is determined mainly by market demand and supply rather than being fixed by the…
Correct answer: Floating exchange rate- A. Exchange Rate Mechanism (ERM)
- B. Exchange Rate Equilibrium
- C. Exchange Rate Balance
- D. None of the above
Explanation: The Exchange Rate Mechanism, or ERM, was the system through which European Monetary System members kept their currencies within agreed…
Correct answer: Exchange Rate Mechanism (ERM)- A. Duty
- B. Custom
- C. Rebut
- D. Drawback
Explanation: A drawback is a refund or rebate of customs duty paid on imported goods when those goods are later exported, often after processing.
Correct answer: Drawback- A. Demand curve theory
- B. Cost-push inflation
- C. Demand-pull inflation
- D. Demand push inflation
Explanation: Demand-pull inflation occurs when aggregate demand exceeds the economy's ability to produce goods and services, pushing prices upward.
Correct answer: Demand-pull inflation- A. Debt blast
- B. Debt bomb
- C. Bad debt
- D. None of them
Explanation: A debt bomb is a large debt-related failure or default capable of spreading financial instability through the wider economy.
Correct answer: Debt bomb- A. National economic risk
- B. Country economic risk
- C. Country finance risk
- D. Foreign exchange riskEconomics
Explanation: Country financial risk concerns whether a national economy can generate enough foreign exchange and income to meet interest and principal…
Correct answer: Country finance risk- A. A currency substitutes
- B. Coins
- C. De-valued currency
- D. Silver
Explanation: Artificial currency refers to a currency substitute used in place of official money, such as tokens or other substitute instruments.
Correct answer: A currency substitutes- A. Income from export
- B. Difference between imports and exports
- C. Income from imports
- D. All of them
Explanation: The trade balance measures the difference between the value of a country’s exports and imports, usually expressed as exports minus…
Correct answer: Difference between imports and exports- A. Application of science to achieve a commercial or industrial objective
- B. Application of modern science in the country
- C. Science based know low
- D. All of thesePolitical Science Mcqs
Explanation: Technology is the practical application of scientific knowledge and know-how to achieve useful commercial or industrial results.
Correct answer: Application of science to achieve a commercial or industrial objective- A. Prudent development
- B. Sustainable development
- C. Managed economy
- D. None of these
Explanation: Sustainable development meets present needs while preserving resources and opportunities for future generations.
Correct answer: Sustainable development- A. Sending of money to someone at distance
- B. The sum of money sent
- C. Both of them
- D. None of them
Explanation: Remittance can mean both the act of sending money and the money sent, especially funds transferred by workers to people in another place…
Correct answer: Both of them- A. Price index
- B. Price indexing
- C. Price fixing
- D. Price choosing
Explanation: A price index compares the prices of a selected group of goods with their prices in a chosen base period, usually setting the base at 100.
Correct answer: Price index- A. Market Economy
- B. Harvard Group
- C. Keynesian
- D. London Group
Explanation: Keynesian economics derives from the work of John Maynard Keynes and supports using fiscal and monetary policies to influence demand and…
Correct answer: Keynesian- A. Gross Domestic Product (GOP)
- B. Gross National output (GNO)
- C. Gross National Product (GNP)
- D. Gross National output
Explanation: Gross National Product measures the value of final goods and services produced by a country's nationals during a period, including net…
Correct answer: Gross National Product (GNP)- A. God standard system
- B. Gold based system
- C. Bullion standard system
- D. None of the above
Explanation: Under the gold standard, currency is convertible into a specified quantity of gold at a fixed rate on demand.
Correct answer: God standard system