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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.

A checking deposit in a bank in considered _________ of that bank?

A an asset

B capital

C net worth

D a liability

Review Detailed Answer

Correct Answer: a liability

Money that a government has required has required to be accepted in settlement of debts is ?

A barter money

B currency value

C legal tender

D commodity money

Review Detailed Answer

Correct Answer: legal tender

Which one of the following is not true ?

A The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed as an annualized percentage of the selling price and this is called the refinancing rate

B Commercial banks may borrow from and lend to each other and the interest rate at which they do this is called the refinancing rate

C In the UK the refinancing rate is known as the repo rate and in the USA it is referred to as the discount rate.

D If the central bank has bought some assets from a commercial bank with an agreement that the commercial bank will buy them back at a later date, then this would be called a repo

Review Detailed Answer

Correct Answer: Commercial banks may borrow from and lend to each other and the interest rate at which they do this is called the refinancing rate

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A rise by an amount that depends on the bank’s reserve ratio

B rise by less than the amount of the deposit

C fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio

D fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio

Review Detailed Answer

Correct Answer: rise by an amount that depends on the bank’s reserve ratio

The refinancing rate is ?

A The interest rate at Which commercial banks lend to and borrow from each other

B The interest rate the European Central Bank pays on reserves

C The interest rates the public pays when borrowing from banks

D The interest rates the European Central Bank charges on loans to banks

Review Detailed Answer

Correct Answer: The interest rates the European Central Bank charges on loans to banks

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

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

A checking deposit in a bank in considered _________ of that bank?

Money that a government has required has required to be accepted in settlement of debts is ?

Which one of the following is not true ?

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

The refinancing rate is ?

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 ?