PPSC Economics Topic 4 Monetary & Fiscal Policy

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
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DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

Sr. #	Question	Answer
1	In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.	A. up ; rise B. up ; fall C.down ; rise D. down ; fall
2	There are _______ major instrument of monetary policy.	A. Three B. Four C.Five D. None
3	Net taxes are.	A. Government expenditures minus government revenues. B. Taxes paid by firms and households to the government minus the transfer payments made to firms and household. C.Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds. D. Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.
4	Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.	A. Milton Friedman B. Ronald Reagan C.Margaret Thatcher D. John Maynard Keynes
5	Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.	A. Positively ; positively B. Positively ; negatively C.negatively ; positively D. negatively ; negatively
6	Which of the following causes M1 demand is decrease.	A. A fall in the tax rate B. An increase in income C.A fall in the interest rate D. An increase in the use of credit cards
7	Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if	A. The IS curve shifts left ward B. The IS curve shifts right ward C.The money supply increase D. Taxes are cut
8	If the State bank of Pakistan wished to pursue a light monetary policy it would.	A. Lower the required reserve ratio and the statutory liquidity ratio. B. Lower interest rates C.Buy government securities on the open market D. Sell government securities on the open market
9	An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the	A. rise ; LM ;right B. rise ; IS ; right C.fall ; LM, Left D. rise ; IS ; Left
10	In the ISLM frame work an expansionary fiscal policy causes aggregate output to _________ and the interest rate to.	A. increases ; increase B. increases ; decrease C.decreases ; decreases D. decreases ; increses
11	In the Keynesian cross diagram, an increase in autonomous consumer function to shift _______ the equilibrium level of aggregate output to rise and the IS curve to shift to the.	A. up ; left B. up ; right C.down ; left D. down ; right
12	"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.	A. Taxes low B. Budgets balanced C.Money growth low D. Government spending in check
13	The quantity of money demanded increases with income Thus if income increases the opportunity cost of holding money demand and re establish equilibrium in the money market This relation is captured by.	A. An upward stopping LM curve B. A downward sloping L curve C.A downward sloping IS curve D. The circular flow of money in the economy.
14	The relation between M2 and inflation is tighter than the relation between M1 and inflation because.	A. M1 is larger than M2 B. The demand for M2 is more stable C.M1 includes more liquid assets the M2 D. None of the above answers is correct.
15	The limit of an economy's total productive capacity at any given time is set by	A. The amount of money in circulation B. Business demand for goods and services C.The level of government spending and taxation D. the quantity and quality of its productive resources
16	The money multiple tells us teh ultimate increase in.	A. The income level due to an increase in the money base B. The money supply due to an increase in the money base. C.The money supply due to an increase in the income level D. The income level due to an increase in the money supply
17	The largest source of tax revenue for the federal government is.	A. The personal income tax B. The social security tax C.The property tax D. The sales tax
18	"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.	A. Upward B. Down ward C.To be zero D. To match inflation
19	using money as a medium of exchange.	A. Requires people to math goods wanted with goods available. B. Reduces the range of feasible exchanges in the economy C.Inhibits economic transactions D. Reduces the need for barter in the economy.
20	Money is	A. An indicator of the scarcity of wants B. Anything that sellers accept i exchange for goods and services. C.A form of barter D. Anything that the government classifies as a trade commodity.

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PPSC Economics Topic 4 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

PPSC Economics Topic 4 Monetary & Fiscal Policy

If the Central Bank wanted to decrease the quantity of money held by the public it would.

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if

The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

The use of money is more efficient than barter because the introduction of money

The real money demand doubles while the nominal money supply is unchanged what happens to the price level.

An increase in spending those results from expansionary _______ policy cause the interest rate to.

A 15% VAT is a.

The IMF is an agency charged with providing.

Why do people keep currency in their pockets when bank deposits pay interest.

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

As the required reserve ratio is decreased the money multiplier.

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

Under a fixed exchange rate system an expansionary fiscal policy leads to a

A decrease iin money demand other thing equal shifts the _____ curve to the

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Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test

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A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.