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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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	Credit constitutes.	A. Saving made available to borrowers B. A form of liquid asset C. bank loans converted into commodity money D. Money used as a standard of deferred payment.
2	A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate	A. right ; fall B. right ; rises C. left ; falls D. left ; rises
3	A checking deposit held at a commercial bank is considered ______ of that bank.	A. An asset B. Net worth C. a liability D. Capital
4	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	A. up ; right B. up ; left C. down ;left D. down ; right
5	The relation between M2 and inflation is tighter than the relation between M1 and inflation because.	A. M1 is larger than M2 B. The demand for M2 is more stable C. M1 includes more liquid assets the M2 D. None of the above answers is correct.
6	The purpose of financial intermediaries is.	A. To allow more saving than investment B. To discourage consumption spending C. To collect income taxes for the government D. To serve are middlemen between savers and borrowers.
7	The parable of Riding a Switchback suggests that stabilizing policy.	A. Is not sufficiently stimulating or contra citing the economy at any time B. Is desirable C. Is effective D. Is stimulating or contracting the economy at the wrong times.
8	The implementation lag for monetary policy is generally	A. Much longer than it is for fiscal policy B. Unrelated to central bank action C. The same as it is for fiscal policy D. Much shorter than it is for fiscal policy.
9	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.	A. store of value B. Unit of account C. Medium of exchange D. Standard of deferred payment
10	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.

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

PPSC Economics Topic 4 Monetary & Fiscal Policy

"Far better for central bankers to get out of the fine tuning business instead they should d try to keep.

An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports.

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.

A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___

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

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

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

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

Net taxes are.

Disposable income is obtained by subtracting ________ taxes from personal income

The market price of bonds can fluctuate depending on

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

Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

Commercial banks

Money or paper currency serves at least _______ functions.

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

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.

During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.

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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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An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _ relative to foreign goods and results in a in net exports.

A decline in the money supply shifts the LM curve to the left causing the interest rate to ______ and output to_

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

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.