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	A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______	A. rise; Lm ; RIGHT B. RISE ; is; right C. fall ; IS; Left D. rise ; LM; left
2	If the Central Bank wanted to decrease the quantity of money held by the public it would.	A. Sell government securities B. Buy government securities C. Lower the legal reserve requirement D. Raise taxes
3	Which of the following events will lead to a decrease in the demand for money.	A. An increase in the level of aggregate output. B. A decrease in the supply of money C. A decrease in the interest rate D. a decrease in the price level
4	The equilibrium level of saving is.	A. Rs.120 B. Rs.75 C. Rs.40 D. Rs.80
5	The central bank and the government are working against each other if as the government cuts taxes the central bank	A. Sells government bonds B. Lowers the discount rate C. Increase the money supply D. Decrease the legal reserve requirements
6	A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the	A. right ; left B. right ; right C. left ; left D. left ; right
7	The function of money do not include.	A. an exchange of purchasing power B. A unit of account C. A medium of exchange D. A store of value
8	A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.	A. decreases ; rise B. decreases ; fall C. increases ; rise D. increases ; fall
9	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.
10	What happens to the money supply if the deficit is financed by selling bonds to the central bank.	A. The money supply increases B. The money supply decreases C. The money supply is unaffected D. We cannot tell what will happen to the money supply

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

PPSC Economics Topic 4 Monetary & Fiscal Policy

a contractionary monetary policy

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the.

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

When there is no change in central banking holding of international reserve balances a country's

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

A bank has excess liquidity reserves to lend but is unable to find a willing borrower these will_______ the size of the money multiplier.

The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are.

What is the significance of underestimating transactions money.

Money or paper currency serves at least _______ functions.

The main role of the Federal Reserve is to

Net taxes are.

There are _______ major instrument of monetary policy.

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.

The central bank and the government are working against each other if as the government cuts taxes the central bank

A state of government bonds by the central bank should cause

Which school of economic thought suggested that one possible cause of inflation was a push from the cost side.

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

The rate of which central bank lends to commercial banks is known as

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

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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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When the value of the Rupee rises Pakistan goods become ___ expensive relative to foreign goods which _ exports.

In the money market a condition of excess supply of money cna be eliminated by a _______ in aggregate output or a in the interest rate , both of which increase the quantity of money demanded.