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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.

All Topics  4423

Treasury bill is used for_________________?
A Getting short term loans
B Getting long term loans
C Treasury bill in not credit instrument
D Treasury bill is a govt. tax bill
Correct Answer: Getting short term loans
When the State Bank wants to decrease money supply in the country, it _______________?
A Buys govt. securities in stock market
B Sells govt. securities
C Lowers discount rate
D B and C of above
Correct Answer: Sells govt. securities
When a commercial bank creates credit its immediate effect is that it raises__________________?
A The exchange rates
B The interest rates
C The money supplies
D The real national income
Correct Answer: The money supplies
The Liquidity Trap condition occurs at a_______________?
A Low rate of interest
B Very low rate of interest
C High rate of interest
D Very high rate of interest
Correct Answer: Very low rate of interest
The power of a bank to create credit is affected by ?
A The cash reserve requirement
B The amount of cash available
C The number of branches of a bank
D A and B of above
Correct Answer: A and B of above
Pakistan’s fiscal years starts from?
A 1st September
B 1st January
C 1st April
D 1st July
Correct Answer: 1st July
A tariff______________?
A Increase the volume of trade
B Reduces the volume of trade
C Has no effect on volume of trade?
D A and C of above
Correct Answer: Reduces the volume of trade
Velocity of circulation of money means ?
A The number of times a unit of money changes hands daily
B The number of times as unit of money changes hands monthly
C The number of times a unit of money changes hands annually
D The number of times a unit of money changes value
Correct Answer: The number of times a unit of money changes hands annually
Government of Pakistan issues currency on the basis of__________________?
A Availability of gold in the country
B Availability of dollars in the country
C Demand for money in the country
D Tax collection
Correct Answer: Demand for money in the country
Economic development is measured on the basis of ?
A Increase in nominal GNP
B Increase in real GNP
C Increase in personal income
D Increase in government revenue
Correct Answer: Increase in real GNP
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