M C Q s D r i v e

Economics Mcqs 4423 MCQs [All-Courses]

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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.

A fall in investment demand can result from ?
A higher interest rates
B lower expected future profits
C more expensive capital goods
D All of the above
Correct Answer: All of the above
One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
A rise; increase, increase
B rise, falls, increase
C rise, increase, falls
D rise, falls, falls
Correct Answer: rise, falls, falls
Equilibrium in the Money market will change if there is ?
A a change in the real money supply
B a change in real income
C a change in competition in the banking industry
D any of the above
Correct Answer: any of the above
The monetary base is ________ and _________?
A bank deposits, building society deposits
B Currency in circulation, banks cash reserves
C retail sight deposits building society deposits
D retail deposits, wholesale deposits
Correct Answer: Currency in circulation, banks cash reserves
When real income increases other things equal we can expect the demand for real money holdings to ?
A fall
B not change
C increase
D None of these
Correct Answer: increase
Three variables affect the demand for money they are _______ and __________?
A bank opening hours, the proportion of weekly paid employee’s interest rates
B the price level interest rates real income
C The time of year bank opening hours the price level
D The proportion of weekly paid employees the time of year real income
Correct Answer: the price level interest rates real income
The money supply is ?
A State Bank of Pakistan Issue Department
B Money + bank cards + credit cards
C Cheques + money + bank cards + credit cards
D Currency in circulation plus bank deposits
Correct Answer: Currency in circulation plus bank deposits
The primary function of bank is to ?
A Control the money supply
B Provide notes and coins for trade
C Make a profit
D Provide a cheque clearing system
Correct Answer: Make a profit
Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
A flat; steep
B flat; flat
C steep; flat
D steep; steep
Correct Answer: flat; steep
When the money supply increase ?
A the economy moves up the LM curve
B The LM curves shifts to the left
C The economy moves down the LM curve
D The LM curve shift to the right
Correct Answer: The LM curve shift to the right