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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.

Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?

A assets

B deposits

C loans

D government bonds

Review Detailed Answer

Correct Answer: deposits

If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?

A 4

B 20

C 25

D 5

Review Detailed Answer

Correct Answer: 5

Which of the following statements about money is not true ?

A A debit card is not really money because it is only a means of transferring money between accounts

B All the wealth that people hold, in whatever form, should be considered as money

C Wealth held in the current account you hold with your bank is almost as convenient for buying things as wealth held in your wallet so the wealth in current accounts should be included in measures of money

D In a complex economy it is not easy to draw a clear dividing line between assets that should be considered as money and those that should not

Review Detailed Answer

Correct Answer: All the wealth that people hold, in whatever form, should be considered as money

An example of fiat money is ?

A Paper euros

B gold

C Silver coins

D cigarettes

Review Detailed Answer

Correct Answer: Paper euros

Money is ?

A The value of all coins and currency in circulation at any time

B Anything that is generally accepted as a medium of exchange

C The same as income

D All of the above

Review Detailed Answer

Correct Answer: Anything that is generally accepted as a medium of exchange

A reduction in interest rates, causes an increases in the monetary base that results in an _ in the availability of consumer credit and a in the cost of consumer credit?

A reduction, increase

B reduction, reduction

C increase, reduction

D increase , increase

Review Detailed Answer

Correct Answer: increase, reduction

Central banks prefer to fix the and accept the resulting _?

A demand for money, interest rate

B interest rate equilibrium money supply

C demand for money equilibrium money supply

D interest rate, demand for money

Review Detailed Answer

Correct Answer: interest rate equilibrium money supply

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

A lender of less resort

B financial intermediation

C Open Market operations

D Financial regulation

Review Detailed Answer

Correct Answer: Open Market operations

M4 is a measure of money and includes deposits at both and _?

A narrow, banks, building societies

B wide, banks insurance companies

C Narrow, banks insurance companies

D Wide, banks building societies

Review Detailed Answer

Correct Answer: Wide, banks building societies

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

A fall

B increase

C not change

D None of these

Review Detailed Answer

Correct Answer: fall

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?

If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?

Which of the following statements about money is not true ?

An example of fiat money is ?

Money is ?

A reduction in interest rates, causes an increases in the monetary base that results in an _ in the availability of consumer credit and a in the cost of consumer credit?

Central banks prefer to fix the and accept the resulting _?

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

M4 is a measure of money and includes deposits at both and _?

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of them ?

If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?

Which of the following statements about money is not true ?

An example of fiat money is ?

Money is ?

A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

Central banks prefer to fix the ____ and accept the resulting _____?

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

M4 is a __________ measure of money and includes deposits at both __________ and _________?

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

A reduction in interest rates, causes an increases in the monetary base that results in an _ in the availability of consumer credit and a in the cost of consumer credit?

Central banks prefer to fix the and accept the resulting _?

M4 is a measure of money and includes deposits at both and _?