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Economics Mcqs 4423 MCQs [All-Courses]

Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

A a nominal exchange rate, floated

B a real exchange rate, pegged

C a purchasing power parity, pegged

D a real exchange rate, floated

Review Detailed Answer

Correct Answer: a nominal exchange rate, floated

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

A appreciate

B depreciate

C revalue

D be in short supply

Review Detailed Answer

Correct Answer: depreciate

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A depreciation

B appreciation

C fall

D devaluation

Review Detailed Answer

Correct Answer: appreciation

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

A enhances

B undermines

C encourages

D facilitates

Review Detailed Answer

Correct Answer: undermines

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

A increased

B unaffected

C reduced

D None of these

Review Detailed Answer

Correct Answer: reduced

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

A current account

B interest rate

C tax

D price

Review Detailed Answer

Correct Answer: interest rate

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A increase

B reduce

C do nothing to

D None of the above

Review Detailed Answer

Correct Answer: reduce

A current account deficit means that a country may ?

A reduce its stock of foreign assets

B increase its stock of foreign assets

C increases its savings

D increases its foreign currency reserves

Review Detailed Answer

Correct Answer: reduce its stock of foreign assets

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

A rise

B fall

C not change

D fluctuate

Review Detailed Answer

Correct Answer: fall

If the economy is in the recessionary phase of the business cycle, aggregate demand _ unemployment inflation _ and the current account of the balance of payments is likely to move towards ____?

A falls; falls; falls; surplus

B is static; low; rises; deficit

C falls; rises; falls; surplus

D rises; falls; rises; deficit

Review Detailed Answer

Correct Answer: falls; rises; falls; surplus

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A current account deficit means that a country may ?

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

If the economy is in the recessionary phase of the business cycle, aggregate demand _ unemployment inflation _ and the current account of the balance of payments is likely to move towards ____?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A current account deficit means that a country may ?

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

If the economy is in the recessionary phase of the business cycle, aggregate demand _ unemployment inflation _ and the current account of the balance of payments is likely to move towards ____?