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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.

The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

A Transactions motive

B precautionary motive

C profit motive

D speculation motive

Review Detailed Answer

Correct Answer: speculation motive

Which of the following events will lead to a decrease in the equilibrium interest rate ?

A A sale of government securities by the central bank

B An increase in the level of aggregate output

C An increase in the discount rate

D A decrease in the price level

Review Detailed Answer

Correct Answer: A decrease in the price level

When economies speak of the demand for money which of the following are they asking ?

A How much cash do you wish you could have?

B How much wealth would you like?

C How much income would you like to earn?

D What proportion of your financial assets do you want to hold in non-interest-bearing forms

Review Detailed Answer

Correct Answer: What proportion of your financial assets do you want to hold in non-interest-bearing forms

Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?

A increase the money supply because it is now cheaper for banks to borrow from the central bank

B decrease the money supply because it will now be more expensive for business firms and consumers to borrow money

C Not change the money supply because banks already have excess reserves they cannot lend

D Decrease the money supply because it is now cheaper for banks to borrow from the central bank instead instead of buying government securities

Review Detailed Answer

Correct Answer: Not change the money supply because banks already have excess reserves they cannot lend

As the required reserve ratio is decreased the money multiplier ?

A decreases

B remain the same, as long as banks hold no excess reserves

C could either increase or decrease

D increases

Review Detailed Answer

Correct Answer: increases

Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?

A Assisting Banks that are in a difficult financial position

B Auditing the various agencies and department of the government

C Loaning money to other countries that are friendly to the UK.

D Issuing new bonds to finance the PSBR.

Review Detailed Answer

Correct Answer: Assisting Banks that are in a difficult financial position

The density of population in K.P.K is ?

A 196 per sq. Km

B 235 per sq. Km

C 270 per sq. Km

D 291 per sq. Km

Review Detailed Answer

Correct Answer: 235 per sq. Km

The density of population in Punjab is ?

A 211 per sq. Km

B 270 per sq. Km

C 305 per sq. Km

D 353 per sq. Km

Review Detailed Answer

Correct Answer: 353 per sq. Km

Which is the second densely populated province of Pakistan ?

A Punjab

B K.P.K

C Baluchistan

D Sindh

Review Detailed Answer

Correct Answer: Sindh

How much of the total potential labour force is unemployed ?

A 2.42 million

B 2.82 million

C 2.76 million

D 2.65 million

Review Detailed Answer

Correct Answer: 2.42 million

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

Which of the following events will lead to a decrease in the equilibrium interest rate ?

When economies speak of the demand for money which of the following are they asking ?

Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to ?

As the required reserve ratio is decreased the money multiplier ?

Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?

The density of population in K.P.K is ?

The density of population in Punjab is ?

Which is the second densely populated province of Pakistan ?

How much of the total potential labour force is unemployed ?