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

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PPSC Economics Topic 4 Monetary & Fiscal Policy

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Question # 1

Factor that cause the IS curve to shift include.

Question # 2

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

Question # 3

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

Question # 4

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

Question # 5

In economics money refers to

Question # 6

Knowledge of the money supply can lead to good predications of nominal GDP only

Question # 7

An increase in government spending causes the equilibrium level of aggregate output to_______ at any given interest rate and shifts the ____ curve to the

Question # 8

The rate of which central bank lends to commercial banks is known as

Question # 9

Weighted monetary aggregates

Question # 10

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

Question # 11

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

Question # 12

The near term effect of an unexpected sale of bonds by the central bank is.

Question # 13

An item designed as money that is intrinsically worthless could the.

Question # 14

Suppose a new law imposes a tax on all trades of bonds and stock What is the likely effect on money demand.

Question # 15

Disposable income is obtained by subtracting ________ taxes from personal income

Question # 16

The government performs its redistribution function mainly through.

Question # 17

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.

Question # 18

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

Question # 19

The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.

Question # 20

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.

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 Money or paper currency serves at least _______ functions.
A. Three
B. Four
C. Five
D. Seven
2 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
3 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
4 The IMF is an agency charged with providing.
A. Technical assistance to stock market and financial market problems.
B. Loans for post World War II reconstruction
C. Short term credit for international balance of payments deficits
D. Bonds denominated in U.S. dollars as a loan to LDCs
5 The board pumps money out of the economy by
A. Buying bonds
B. Selling bond
C. Creating cash
D. Lowering the reserve requirements.
6 An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____
A. A movement along the AS curve cost push inflation
B. A leftward shift int he AS curve demand pull inflation.
C. A right ward shift in the AS Curve cost push inflation
D. a left ward shift in the AS curve cost push inflation
7 A decrease in fully autonomous investment other things equal shifts the ______ curve to the
A. IS ; right
B. IS ; Left
C. LM ; Left
D. LM ; right
8 The market price of bonds can fluctuate depending on
A. How many bonds were sold
B. Who bought the bonds
C. The amount of the coupon
D. The interest rate
9 A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the.
A. Increases ; increases ; right
B. Increases ; decreases ; left
C. decreases ; increases ; left
D. decreases ; decreases ; right
10 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

Test Questions

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