PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	There are ______ methods of measuring GDP	A. Three B. Four C. Five D. None
2	A major advantage of monetary over fiscal policy is that monetary policty.	A. Can be put into effect more quickly B. Affects all sectors of the economy equally C. Authorities are quicker to see the need for policy D. Has a more direct and predictable impact on spending.
3	"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans". How would the central bank manages these excess reserves.	A. By buying bonds B. By selling bonds C. By changing reserve requirements D. All of the above
4	Knowledge of the money supply can lead to good predications of nominal GDP only	A. If the price level is stable B. If the money supply is stable C. Over very short periods of time D. If the determinants of velocity are known
5	If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to.	A. fall ; fall B. fall ; rise C. rise ; fall D. rise ; rise
6	The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.	A. Fiscal drag B. The Laffer curve C. Bracket creep D. Debt burden
7	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
8	If the central Bank wished to Tighten money is would.	A. Lower the discount rate B. Sell government securities C. Lower the legal reserve ratio D. Lower the tax rate
9	Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.	A. Left ward ; LM B. Right ; LM C. Left ward ; IS D. Left ward ; AD
10	As the required reserve ratio is decreased the money multiplier.	A. Could either increase or decrease B. Remains the same as long as banks hold no excess reserves C. Increase D. Decreases

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

PPSC Economics Topic 4 Monetary & Fiscal Policy

"Rising productivity does not in itself spell the end of inflation. With enough______ it would still be possible to whip prices into a froth the blank is best filled with.

an asset that can easily be exchanged for goods and services is called a.

Over time the wealth of society increases and payments technologies get more efficient What is the effect on money demand of these two changes.

The purpose of financial intermediaries is.

The money multiple tells us teh ultimate increase in.

If the original money supply is MSo and the original demand for money is MDo then

Under system fixed exchange rates which of the following policies promotes internal balance for a nation.

A good that is used as a medium of exchange as well as being a consumption good is called.

During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____

A sale of bonds by the central bank should cause.

Commercial banks

Fiscal policy refers to the manipulation of government income and expenditure to.

Fiscal policy is purposeful movements in _____designed to direct an economy

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

A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the

Why would corporations want to achieve zero balances in their checking accounts.

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

A Political problem with discretionary fiscal policy is the.

To move from point E to point E1 is consistent with.

"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.

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

PPSC Economics Chapter 4 Important MCQ's

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During the early years of the Great depression there was a significant decrees n the the money supply that causes. the __ to shift