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	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
2	During period of inflation	A. Those people who have fixed incomes benefit B. Every one's real income falls C. those people who enter long term wage agreements benefit D. Those people whose real income rises faster than the general price level benefit
3	When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.	A. more ; iincreases B. less ; increases C. more ; decreases D. more ; increases
4	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
5	an asset that can easily be exchanged for goods and services is called a.	A. Financial asset B. Barter like asset C. Illegitimate asset D. Liquid asset
6	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
7	The quantity of money demanded varies	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
8	If firms paying employees monthly began paying them weakly then the demand for money would.	A. Rise and income would rise B. Rise and income would fall C. Fall and income would rise D. Fall and income would fall
9	Automatic stabilizers	A. Counter balance fluctuations in economic activity. B. Reinforce fluctuations in economic activity C. Do not occur when the economy falls into recession D. Reduces the size of the deflationary gap
10	Those who favor setting the target rate of inflation at about 3% believe.	A. The cost of moderate inflation can be minimized by indexing the tax system and bonds B. that the cost of going to 0% is very low C. That moderate inflation increases money illusion D. Believe that moderate inflation aggravates the time inconsistency problem

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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

The money multiple tells us teh ultimate increase in.

By controlling the monetary base economists mean

"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 increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

A checking deposit held at a commercial bank is considered ______ of that bank.

What happens to the money supply if the deficit is financed by selling bonds to the central bank.

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

If the central bank prints more 10 billion and spends them then as a direct result of this action.

"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.

As the required reserve ratio is decreased the money multiplier.

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

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

If the State bank of Pakistan wished to pursue a light monetary policy it would.

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

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 _______

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.

The purpose of financial intermediaries is.

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

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

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

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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

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.

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