Economics MCQs

Page No. 395

Commercial policy means_______________?


aPolicy about markets

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bPolicy about money supply

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cPolicy about imports and exports

✓


dPolicy of controlling of prices of goods

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


aFrankfurt

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b Bonn

✓


cBerlin

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d Stuttgart

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View Answer Bonn

Balance of payments of a country includes ?


aBalance of trade

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b Capital receipts and payments

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cSavings and investment account

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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

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bGranting loan and advances

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cUndertaking agency functions

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dBanker to the government

✓



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


aMicro Finance Bank

✓


b Moderba Bank

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cSME- Bank

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dFirst MINI Bank

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View Answer Micro Finance Bank

Treasury bill is used for_________________?


aGetting short term loan

✓


bGetting long term loans

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cTreasury bill in not credit instrument

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dTreasury bill is a govt. tax bill

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


aBuys govt. securities in stock market

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bSells govt. securities

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c Lowers discount rate

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d B and C of above

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


aThe exchange rates

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b The interest rates

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cThe money supplies

✓


dThe real national income

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View Answer The money supplies

The Liquidity Trap condition occurs at a_______________?


aLow rate of interest

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bVery low rate of interest

✓


cHigh rate of interest

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dVery high rate of interest

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


aThe cash reserve requirement

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bThe amount of cash available

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c The number of branches of a bank

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dA and B of above

✓


View Answer A and B of above

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