PPSC Economics Topic 4 Monetary & Fiscal Policy

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

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	"Money deposited for a term is not left in bank vaults but is loaned out by the banks This means that is dollar on deposit can flow back into the banking system one or more times and that dollar can expand the money supply What cnterminlogy do economists use to refer to the proses described in this clip.	A. The multiplier B. The money multiplier C. Required reserve ratio D. Open market operations
2	If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.	A. Increase the minimum reserve asset ratio B. Sell government securities on the open market C. Buy government securities on the open market D. Raise interest rates.
3	Why do people keep currency in their pockets when bank deposits pay interest.	A. Because banks might steal your money B. Because currency is more liquid C. Because bank deposits lose value due to inflation D. Because bank deposits lose value due to exchange in interest rates.
4	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.
5	The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.	A. Crowding out B. Recognition lag C. Public sector borrowing requirement D. Fiscal drag
6	Which of the following part of M1	A. Stock negotiating accounts B. Automatic transfer system accounts C. Negotiable orders of withdrawal accounts D. Demand deposits of mutual saving banks.
7	"Some economists criticized the central bank for not moving in the face of the waning recovery One who prefers anonymity stated the failure to move today leaves us with low inflation a weak economy and climbing jobless claims these are classic signs of an impending downturn The fed fiddles while the economy burns This economist would want to see.	A. A higher interests rate B. A higher reserve requirement C. a decrease in the money supply D. An increase in the money supply
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	The use of money is more efficient than barter because the introduction of money	A. Reduces the need for economic specialization B. Reduces the need to exchange goods C. Reduce the need for other stores of value D. Reduces transaction costs
10	The purpose of fiscal policy is to	A. Alter the direction of the economy B. Change people's attitudes toward governemnt C. Educate people as to the importance of economics D. Offer insight into the way thing work

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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

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

An expansionary monetary policy

One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

Fiscal policy refers to.

A Political problem with discretionary fiscal policy is the.

Monetary policy can affect output.

In economics money refers to

The Central Bank controls money and credit with the exception of.

A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

By controlling the monetary base economists mean

A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

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

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

Those who favor setting the target rate of inflation at about 3% believe.

The function of money do not include.

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

What major advantage of monetary policy over fiscal policy does this clipping underline.

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

Prepare Complete Set Wise PPSC Economics Topic 4 Monetary & Fiscal Policy MCQs Online With Answers

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Topic Test

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

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An autonomous rise in __ note causes by a change in the price level aggregate output of the interest shifts the _ curve to the

A reduction in government spending causes the equilibrium level of aggregate output to ___ at any given interest rate and shifts the curve to the.

A shift in tastes toward Pakistan goods net exports and causes the quantity of aggregate output demanded to

In the money market a condition of excess demand for money can be eliminated by a ______ in aggregate output or a in the interest rate both of which reduce the quantity of money demanded.