Economics MCQs

Page No. 395

Commercial policy means_______________?


aPolicy about markets


bPolicy about money supply


cPolicy about imports and exports


dPolicy of controlling of prices of goods



Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?


aFrankfurt


b Bonn


cBerlin


d Stuttgart


View Answer Bonn

Balance of payments of a country includes ?


aBalance of trade


b Capital receipts and payments


cSavings and investment account


dA and B of above


View Answer A and B of above

Which of the following is not a function of a commercial bank?


aAccepting public deposits


bGranting loan and advances


cUndertaking agency functions


dBanker to the government



The bank established for loans to very small enterprises in Pakistan is called_______________?


aMicro Finance Bank


b Moderba Bank


cSME- Bank


dFirst MINI Bank


View Answer Micro Finance Bank

Treasury bill is used for_________________?


aGetting short term loan


bGetting long term loans


cTreasury bill in not credit instrument


dTreasury bill is a govt. tax bill



When the State Bank wants to decrease money supply in the country, it _______________?


aBuys govt. securities in stock market


bSells govt. securities


c Lowers discount rate


d B and C of above



When a commercial bank creates credit its immediate effect is that it raises__________________?


aThe exchange rates


b The interest rates


cThe money supplies


dThe real national income


View Answer The money supplies

The Liquidity Trap condition occurs at a_______________?


aLow rate of interest


bVery low rate of interest


cHigh rate of interest


dVery high rate of interest



The power of a bank to create credit is affected by ?


aThe cash reserve requirement


bThe amount of cash available


c The number of branches of a bank


dA and B of above


View Answer A and B of above

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