PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 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	The opportunity cost of holding currency decreases when.	A. Income decreases B. The interest rate on bonds decrease C. Buying newly issued government bonds directly from the central bank D. Buying newly issued government bonds directly to the central bank.
2	Disposable income is obtained by subtracting ________ taxes from personal income	A. Indirect taxes B. Direct taxes C. Subsidies D. None
3	The situation in which the imports are greater than exports is termed as.	A. Trade surplus B. Trade deficit C. Budget surplus D. None
4	A 15% VAT is a.	A. Proportional income tax B. Fixed excise duty C. Ad valorem indirect tax D. None of the above
5	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.
6	The board pumps money out of the economy by	A. Buying bonds B. Selling bond C. Creating cash D. Lowering the reserve requirements.
7	Which of the following causes M1 demand to decrease.	A. A fall in the tax rate B. An increase in income C. A fall in the interest rate D. An increase in the use of credit cards
8	Tax incidence is the	A. Ultimate distribution of a tax's burden B. Measure of the inpat the tax has on employment and output C. Behavior of shifting the tax to another party D. Structure of the tax
9	During the early years of the Great depression there was a significant decrees n the the money supply that causes. the ______ to shift____	A. LM ; rightward B. IS ; rightwards C. LM ; Leftward D. IS ; Leftward
10	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

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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

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

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

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

in The Liquidity trap region

Which policies are expenditure changing policies.

The parable of Riding a Switchback suggests that stabilizing policy.

A sale of bonds by the central bank should cause.

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

How do the banks gain from this corporate behavior.

When a government prints money to finance its expenditures it is likely to cause

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 ______l and the IS curve Curve to shift to the.

The main role of the Federal Reserve is to

There are _______ major instrument of monetary policy.

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

"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.

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

Which of the following measures is the best measure of money as a medium of exchange.

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

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

As the interest sensitivity of investment spending increase.

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

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Set 6

Set 7

Set 8

Set 9

Set 10

Set 11

Set 12

Set 13

Set 14

Topic Test

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

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

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 __l and the IS curve Curve to shift to the.