Economics MCQs

Page No. 291

A fall in investment demand can result from ?


a higher interest rates

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blower expected future profits

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cmore expensive capital goods

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dAll of the above

✓


View Answer All of the above

One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?


arise; increase, increase

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brise, falls, increase

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c rise, increase, falls

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drise, falls, falls

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View Answer rise, falls, falls

Equilibrium in the Money market will change if there is ?


aa change in the real money supply

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b a change in real income

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ca change in competition in the banking industry

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dany of the above

✓


View Answer any of the above

The monetary base is ________ and _________?


a bank deposits, building society deposits

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b Currency in circulation, banks cash reserves

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cretail sight deposits building society deposits

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dretail deposits, wholesale deposits

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When real income increases other things equal we can expect the demand for real money holdings to ?


afall

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bnot change

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cincrease

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dNone of these

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View Answer increase

Three variables affect the demand for money they are _______ and __________?


abank opening hours, the proportion of weekly paid employee’s interest rates

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b the price level interest rates real income

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cThe time of year bank opening hours the price level

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dThe proportion of weekly paid employees the time of year real income

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The money supply is ?


a State Bank of Pakistan Issue Department

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b Money + bank cards + credit cards

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cCheques + money + bank cards + credit cards

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dCurrency in circulation plus bank deposits

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The primary function of bank is to ?


a Control the money supply

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b Provide notes and coins for trade

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cMake a profit

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dProvide a cheque clearing system

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View 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

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b flat; flat

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csteep; flat

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dsteep; steep

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View Answer flat; steep

When the money supply increase ?


athe economy moves up the LM curve

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b The LM curves shifts to the left

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c The economy moves down the LM curve

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dThe LM curve shift to the right

✓



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