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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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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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	Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.	A. Panel a B. Panel d C. Panel b D. Panel e
2	Per Capita income is obtained by dividing National income by	A. Total labor Force in the country B. Unemployed Youth in the country C. Total population of that country D. None
3	An expansionary monetary policy	A. Reduces interest rates B. Increases real output C. Shifts the LM curve to the right D. All of the above
4	When there is no change in central banking holding of international reserve balances a country's	A. Trae balance always equals 0 B. Current account balance always equals 0 C. Capital account balance always equals 0 D. Balance of payments always equal 0
5	The near term effect of an unexpected sale of bonds by the central bank is.	A. An increase in interest rates, a risen investment and a rise in GDP B. An increase in interest rates a drop in investment and a drop in GDP C. A decrease in interest rtes a rise in investment and a rise in GDP D. A decrease in interesr rates a drop in investment and a drop in GDP
6	An increase in money demand other thing equal shifts the ____ curve to the___	A. IS ; right B. IS ; Left C. LM ; Left D. LM ; right
7	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
8	If the original money supply is MSo and the original demand for money is MDo then	A. The equilibrium interest rate and savings are 5% and 50 B. The money supply is 200 and equilibrium income is 500 C. The equilibrium interest rate and income are 5% and 600 D. The speculative demand is 25
9	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.
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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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

"Transactions" money is money used as a

What's the most common way for a central bank to reduce the money supply.

The government performs its redistribution function mainly through.

"Although he didn't say so, this may ultimately compet the central bank to resort increasingly to managing the money supply by managing banks excess cash reserves the stuff from which the banks create loans". How would the central bank manages these excess reserves.

The board pumps money out of the economy by

The intersection of the IS and LM curves captures.

The main role of the Federal Reserve is to

There are ______ methods of measuring GDP

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

As the required reserve ratio is decreased the money multiplier.

As the interest sensitivity of money demand increases

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

In the case of an expansionary ___ policy the interest rate rise while in the case of an expansionary _______ policy the interest rate falls.

"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.

Identify the three motives of money demand.

The Central Bank controls money and credit with the exception of.

An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve

Which of the following would qualify as an aggregate demand shocks.

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.

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

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

In the case of an expansionary _ policy the interest rate rise while in the case of an expansionary _____ policy the interest rate falls.

An increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _____ in net exports and a shift of the IS curve