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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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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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	Commercial banks	A. Are financial intermediaries that offer demand deposits. B. Are owned by the Federal Reserve C. Are non profit banking institutions D. Are overseen by the Federal savings and loan insurance corporation.
2	Large difference is inflation rates among countries are almost always the result of large difference in.	A. Productivity B. Real income growth C. The growth rates of real money demand D. The growth rates of nominal money supplies
3	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
4	Fiscal policy refers to the manipulation of government income and expenditure to.	A. control the volume and price of money B. Limit the rate of increaes in incomes C. Effect the value of the dollar on world financial market. D. Affect the level of total expenditure output and employment
5	In economics money refers to	A. Income B. Wealth C. Assets use and accepted an payment D. Currency
6	In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to	A. increase ; increase B. Increase ; decrease C. decrease ; decrease D. decrease ; increase
7	A bonds becomes a riskier asset the demand for money_______ and all else constant, the equilibrium interest rate	A. Rises ; rises B. rises ; falls C. falls ; rises D. falls ; falls
8	A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______	A. rise ; LM ;right B. rise ; IS ; right C. Fall ; LM ; left D. rise ;IS; right
9	Factors that cause the IS curve to shift include.	A. Changes in autonomous consumer spending B. Changes in government spending C. Changes in investment spending related to business confidence D. All of the above
10	The ratio of debt to GDP will be larger	A. The lower the real interest rate B. The lower the growth rate of output C. The lower the in initial debt ratio D. The lower the ratio of the primary deficit to GDP

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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

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

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

A business cycle refers to.

in the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift _____the equilibrium level of aggregate output to fall and the IS curve to shift to the.

In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.

Employment tends to _______ whwn aggregate output.

Monetary policy is concerned with influencing.

How do the banks gain from this corporate behavior.

A 15% VAT is a.

The opportunity cost of holding currency decreases when.

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

A major advantage of monetary over fiscal policy is that monetary policy

When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.

Aggregate output and the interest rate are ______ related to government spending and are ___ related to taxes.

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.

An increase in money demand other thing equal shifts the ____ curve to the___

A sale of bonds by the central bank should cause.

Disposable income is obtained by subtracting ________ taxes from personal income

In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to.

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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Aggregate output and the interest rate are ____ related to government spending and are _ related to taxes.

An increase in money demand other thing equal shifts the __ curve to the_