PPSC Economics Topic 4 MCQS Test Preparation

Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

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

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

  • Total Questions20

  • Time Allowed20

Start Test Download PDF

PPSC Economics Topic 4 Monetary & Fiscal Policy

00:00
Question # 1

A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

Question # 2

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 _______

Question # 3

Which of the following is not an important variable in growth accounting calculations.

Question # 4

A decrease in the legal reserve ratio from 25% to 20% will

Question # 5

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

Question # 6

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

Question # 7

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.

Question # 8

The opportunity cost of holding currency decreases when.

Question # 9

The equilibrium level of income is.

Question # 10

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

Question # 11

Which policies are expenditure changing policies.

Question # 12

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

Question # 13

The investment demand curve shows the relationship between the levels of.

Question # 14

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

Question # 15

A sale of bonds by the central bank should cause.

Question # 16

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

Question # 17

A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.

Question # 18

The aggregate demand curve is downward sloping because a higher price level.

Question # 19

Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.

Question # 20

Disposable income is obtained by subtracting ________ taxes from personal income

Submit

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


Topic Test

00:00
Submit

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

  • S
    Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
  • K
    khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
  • S
    Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
  • A
    Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
  • T
    Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
  • F
    Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
  • S
    sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
  • A
    Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
  • H
    Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
  • S
    Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
  • A
    Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
  • S
    Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
  • D
    DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
  • Z
    zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
  • M
    Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 How do the banks gain from this corporate behavior.
A. More loans can be made
B. Tax free profits can be made
C. Interest rates can be increased
D. By circumvent banking regulations
2 Fiscal policy is purposeful movements in _____designed to direct an economy
A. Interest rate
B. Legal structures
C. Government regulations
D. D Government spending and taxes
3 How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.
A. Rs.1 billion
B. Rs.2 billion
C. Rs.0.9 billion
D. Rs.0.5 billion
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 Weighted monetary aggregates
A. Ignore the fact that some assets are more money like than others.
B. Are constructed by simply adding up the outstanding amounts of various types of asssets
C. Give greater weight to currency than to savings deposits
D. Value coins more than currency.
6 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.
A. rise ; rise
B. rise ; fall
C. fall ; rise
D. fall ; fall
7 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
8 A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.
A. Demand ; right
B. demand ; left
C. supply ; right
D. supply ; left
9 The ____ lag for fiscal policy is generally _____ than it is for monetary policy.
A. Recognition ; shorter
B. Recognition ; longer
C. Implementation ; shorter
D. Implementation ; longer
10 A monetary expansion is characterized by
A. Rising output and interest rates
B. Rising output and falling interest rates.
C. Constant output and falling interest rates
D. Falling output and interest rates

Test Questions

Share your comments & questions here

Guest

  • No comments yet. Be the first to comment!