1 - If government increases taxes, private savings:
1 - If government increases taxes, private savings:
Decrease
2 - If C = 200 and I = 40 then Y will equal to:
2 - If C = 200 and I = 40 then Y will equal to:
240
3 - Corporate tax is levied on:
3 - Corporate tax is levied on:
Joint stock companies
4 - If we deduct direct taxes from personal income, we get
4 - If we deduct direct taxes from personal income, we get
Disposable income
5 - The largest part of national income goes to:
5 - The largest part of national income goes to:
Consumption
6 - We measure national income by this method:
6 - We measure national income by this method:
Any of the above
7 - Transfer payments mean:
7 - Transfer payments mean:
The payment without work
8 - Direct taxes are not included in:
8 - Direct taxes are not included in:
DPI
9 - When national income is estimated by expenditure method, we include:
9 - When national income is estimated by expenditure method, we include:
All of the above
10 - Which statement is true?
10 - Which statement is true?
Nationl Expenditure = National income
11 - Which statement is true?
11 - Which statement is true?
NI = NNP - indirect taxes
12 - There are methods of measuring national income:
12 - There are methods of measuring national income:
3
13 - If we compare GDP and GNP, then:
13 - If we compare GDP and GNP, then:
GNP = GDP + net income from abroad
14 - It is deducted from GNP to get NNP:
14 - It is deducted from GNP to get NNP:
Depreciation
15 - It is added to GDP to get GNP
15 - It is added to GDP to get GNP
Net income from abroad
16 - Select the correct statement:
16 - Select the correct statement:
Depreciation allowance is a part of GNP
17 - Which is the largest figure:
17 - Which is the largest figure:
GNP
18 - Which is a flow concept:
18 - Which is a flow concept:
My monthly income
19 - To avoid double counting when GDP is estimated, economists:
19 - To avoid double counting when GDP is estimated, economists:
Calculte value added at each stage of production
20 - A TV set purchased from a retail store is an example of:
20 - A TV set purchased from a retail store is an example of:
Final good
21 - Undistributed profits are considered:
21 - Undistributed profits are considered:
Income earned but not received
22 - Total value of all final goods and services produced in a country during one year is:
22 - Total value of all final goods and services produced in a country during one year is:
GDP
23 - Which measure has the larger value (for Pakistan):
23 - Which measure has the larger value (for Pakistan):
GNP
24 - In equilibrium position of national income:
24 - In equilibrium position of national income:
S = 1
25 - Personal income includes:
25 - Personal income includes:
Direct taxes
26 - Personal income includes:
26 - Personal income includes:
Transfer payments
27 - If savings exceed investment then:
27 - If savings exceed investment then:
National income falls
28 - If we include it, national income will be over-estimated:
28 - If we include it, national income will be over-estimated:
Transfer payment
29 - It is avoided to make correct estimate of national income:
29 - It is avoided to make correct estimate of national income:
Double counting
30 - Rupee is a coin:
30 - Rupee is a coin:
Token money
31 - Cash cannot be directly drawn from a bank against:
31 - Cash cannot be directly drawn from a bank against:
Cross cheque
32 - Money material should be:
32 - Money material should be:
Scarce
33 - In Pakistan money of account is:
33 - In Pakistan money of account is:
Rupee
34 - If no money is used to exchange goods, it is called:
34 - If no money is used to exchange goods, it is called:
Barter
35 - Which is not the function of money:
35 - Which is not the function of money:
Make demand and supply equal
36 - Which is money:
36 - Which is money:
Currency
37 - Convertible money means:
37 - Convertible money means:
Govt. can give gold against it
38 - Barter has the defect:
38 - Barter has the defect:
Lack of common measure of value
39 - Legal money is called so because:
39 - Legal money is called so because:
It is official medium of exchange
40 - It is the medium of exchange:
40 - It is the medium of exchange:
Currency
41 - The govt. can control inflation by:
41 - The govt. can control inflation by:
Increasing supply of goods
42 - Government of Pakistan issues currency on the basis of:
42 - Government of Pakistan issues currency on the basis of:
Demand for money in the country
43 - Quantity of money has relation with value of money:
43 - Quantity of money has relation with value of money:
Inverse
44 - Commercial banks create:
44 - Commercial banks create:
Credit money
45 - Cheque is:
45 - Cheque is:
Not money
46 - The most important feature of money:
46 - The most important feature of money:
General acceptability
47 - It can change money supply:
47 - It can change money supply:
State Bank
48 - Which of the following increases money supply in the country?
48 - Which of the following increases money supply in the country?
Purchase of bonds by State Bank
49 - Paper money came into use:
49 - Paper money came into use:
200 years ago
50 - Which property the paper money does not possess:
50 - Which property the paper money does not possess:
Duability
51 - A saving account in a bank represents the function of money:
51 - A saving account in a bank represents the function of money:
Store of value
52 - A student records her income and spending for past month, she uses the funtion of money
52 - A student records her income and spending for past month, she uses the funtion of money
Unit of account
53 - It implements monetary policy of the country:
53 - It implements monetary policy of the country:
Central bank
54 - Which property paper money does NOT Possess
54 - Which property paper money does NOT Possess
Durability
55 - Anything used as money must be:
55 - Anything used as money must be:
Readily acceptable
56 - What will promote savings?
56 - What will promote savings?
Increase in personal incomes
57 - Treasury Bill is a document used for:
57 - Treasury Bill is a document used for:
A short-term loan to the government
58 - Which does NOT represent a method of payment?
58 - Which does NOT represent a method of payment?
Saving certificate
59 - Which is NOT a desirable characteristic of money?
59 - Which is NOT a desirable characteristic of money?
Easily duplicated
60 - Speculative demand for money depends upon:
60 - Speculative demand for money depends upon:
Rate of interest
61 - If money supply in a country decreases:
61 - If money supply in a country decreases:
Prices will fall
62 - In the equation MV = PY, V represents:
62 - In the equation MV = PY, V represents:
Velocity of circulation of money
63 - In the equation MV = PY, M represents:
63 - In the equation MV = PY, M represents:
Money supply
64 - Accourding to Keynes, motives for holding money are:
64 - Accourding to Keynes, motives for holding money are:
Three
65 - Quantity Theory of Money explains that:
65 - Quantity Theory of Money explains that:
Value of money depends upon quantity of money
66 - Cross cheque has a cross sign (X) in the:
66 - Cross cheque has a cross sign (X) in the:
It does not have cross sign (X)
67 - Cross cheque means:
67 - Cross cheque means:
(b) and (c) of above
68 - It is true to say about kinds of inflation:
68 - It is true to say about kinds of inflation:
Demand pull and cost push inflation
69 - Liquidity of a monetary asset means:
69 - Liquidity of a monetary asset means:
Ready acceptability of monetary asset
70 - Barter means:
70 - Barter means:
Trade without use of money
71 - With reference to currency system of a country token money means:
71 - With reference to currency system of a country token money means:
The money which has higher face value
72 - Ten-rupee note is:
72 - Ten-rupee note is:
(a) and (c) of above
73 - Paper money in Pakistan is:
73 - Paper money in Pakistan is:
Inconvertible
74 - Government securities:
74 - Government securities:
(b) and (c) of above
75 - Which is the characteristic of a good money:
75 - Which is the characteristic of a good money:
Is readily accepted by people
76 - This is NOT money
76 - This is NOT money
Prize bond
77 - Cross cheque:
77 - Cross cheque:
None of the above
78 - This is a characteristic of good money:
78 - This is a characteristic of good money:
Liquidity
79 - This is a characteristic of good money:
79 - This is a characteristic of good money:
General acceptability
80 - It is a kind of money:
80 - It is a kind of money:
Credit money
81 - It is included in kinds of money:
81 - It is included in kinds of money:
All of the above
82 - In payment of debt, people can use this kind of money:
82 - In payment of debt, people can use this kind of money:
(a) and (b) of the above
83 - Purchasing power of money during deflation is:
83 - Purchasing power of money during deflation is:
Increased
84 - Velocity of circulation of money means the number of times a unit of money
84 - Velocity of circulation of money means the number of times a unit of money
Changes hands annually
85 - The equation of exchange PT = MV was given by:
85 - The equation of exchange PT = MV was given by:
Fisher
86 - Value of money in Pakistan is determined by:
86 - Value of money in Pakistan is determined by:
General price level
87 - When value of money falls, they benefit more:
87 - When value of money falls, they benefit more:
Debtors
88 - When the nation's money supply is Rs. 1200 billion and GDP is Rs. 4800 billion, velocity of circulation money is:
88 - When the nation's money supply is Rs. 1200 billion and GDP is Rs. 4800 billion, velocity of circulation money is:
4
89 - Which one is equation of exchange?
89 - Which one is equation of exchange?
PT = MV
90 - If quantity of money is doubled, then according to Quantity Theory, value of money is:
90 - If quantity of money is doubled, then according to Quantity Theory, value of money is:
C
91 - Inflation can be controlled by applying:
91 - Inflation can be controlled by applying:
Monetary and fiscal policies
92 - Inflation is a situation when :
92 - Inflation is a situation when :
General price level rises continuously
93 - Under normal circumstances, the velocity of circulation of money in a country is:
93 - Under normal circumstances, the velocity of circulation of money in a country is:
Less than 10
94 - In Pakistan, in the year 2007-08, money supply was about
94 - In Pakistan, in the year 2007-08, money supply was about
Rs. 3400 million
95 - Banks discount it and advance loans:
95 - Banks discount it and advance loans:
Bill of exchange
96 - Paper money is called fiat money because
96 - Paper money is called fiat money because
It is issued with authority of government
97 - According to Keynes, demand for money is affected by:
97 - According to Keynes, demand for money is affected by:
Both (a) & (b)
98 - During inflation:
98 - During inflation:
Lenders lose, borrowers gain
99 - The quantity demanded of money rises:
99 - The quantity demanded of money rises:
As the interest rate falls
100 - Which people are most likely to gain during inflation?
100 - Which people are most likely to gain during inflation?
Those who are repaying borrowed money
101 - If quantity of money increases 100%, other things remaining constant, value of money changes by:
101 - If quantity of money increases 100%, other things remaining constant, value of money changes by:
Decreases by 100%
102 - For the economy, prices are beneficial:
102 - For the economy, prices are beneficial:
Rising slowly
103 - According to Keynes people demand money for purposes (motives):
103 - According to Keynes people demand money for purposes (motives):
3
104 - Value of money means:
104 - Value of money means:
General purchasing power of money
105 - Value of money and supply of money are related:
105 - Value of money and supply of money are related:
Inversely
106 - They are not affected badly by rising prices:
106 - They are not affected badly by rising prices:
Businessmen
107 - Inflation:
107 - Inflation:
Makes distribution of income unequal
108 - It is assumption of quantity theory of money:
108 - It is assumption of quantity theory of money:
Velocity of circulation of money constant
109 - If we put this letter in the blank space, we get quantity theory of money PY = M
109 - If we put this letter in the blank space, we get quantity theory of money PY = M
V
110 - In the equation PY = MV showing quantity theory of money. Y represents:
110 - In the equation PY = MV showing quantity theory of money. Y represents:
National income
111 - Profit and loss-sharing is an element of this system:
111 - Profit and loss-sharing is an element of this system:
Islamic
112 - Cash cannot be obtained from bank against:
112 - Cash cannot be obtained from bank against:
Cross cheque
113 - Commercial banks accept deposits and provide:
113 - Commercial banks accept deposits and provide:
Loans
114 - The banks can give loans:
114 - The banks can give loans:
More than deposits
115 - Banks discount it and advance loans:
115 - Banks discount it and advance loans:
Bill of exchange
116 - Banks prepare their balance sheet:
116 - Banks prepare their balance sheet:
Weekly
117 - Balance sheet of a bank has two parts:
117 - Balance sheet of a bank has two parts:
Assets and liabilities
118 - When banks prepare their balance sheets, they show the money lent in:
118 - When banks prepare their balance sheets, they show the money lent in:
Assets
119 - The power of a bank to create credit is affected by:
119 - The power of a bank to create credit is affected by:
Both (a) & (b)
120 - Demand deposits are:
120 - Demand deposits are:
Money (they can be used to make payments)
121 - An asset is liquid when it is:
121 - An asset is liquid when it is:
Is money or easily converted into money
122 - A bank has Rs. 5 million in cash. The minimum reserve ratio is 20%. What is maximum potential increase in total deposits:
122 - A bank has Rs. 5 million in cash. The minimum reserve ratio is 20%. What is maximum potential increase in total deposits:
25 m
123 - The following is not a bank liability:
123 - The following is not a bank liability:
Loans
124 - When a commercial bank creates credit, it immediately raises:
124 - When a commercial bank creates credit, it immediately raises:
(a) and (b) of above
125 - Which is the source of interest for a bank:
125 - Which is the source of interest for a bank:
All of the above
126 - Commercial banks are able to create money by:
126 - Commercial banks are able to create money by:
Making loans
127 - Which is a function of a commercial bank:
127 - Which is a function of a commercial bank:
Making loans
128 - When a commercial bank creates credit, its immediate effect is that it raises:
128 - When a commercial bank creates credit, its immediate effect is that it raises:
The money supply
129 - Total number of bank branches in Pakistan is:
129 - Total number of bank branches in Pakistan is:
More than 5000 but less than 10,000
130 - Demand deposits mean:
130 - Demand deposits mean:
Chequeable deposits
131 - Which is considered liability by a bank:
131 - Which is considered liability by a bank:
Time deposit
132 - Demand deposits are money because:
132 - Demand deposits are money because:
They can be used to make payments
133 - Credit money is created by:
133 - Credit money is created by:
Commercial bank
134 - Credit money is created by:
134 - Credit money is created by:
Commercial bank
135 - Select the correct statement:
135 - Select the correct statement:
Both legal money and credit money are equally useful
136 - Select the correct statement:
136 - Select the correct statement:
Central bank creates legal money
137 - Select the correct statement:
137 - Select the correct statement:
None of the above is true
138 - Which type of cheque is more safe for transfer of money
138 - Which type of cheque is more safe for transfer of money
Cross cheque
139 - Which type of cheque is least safe for transfer of money:
139 - Which type of cheque is least safe for transfer of money:
Bearer cheque
140 - If a person is more interested to earn income, he should deposit his money in:
140 - If a person is more interested to earn income, he should deposit his money in:
Time deposit
141 - If a person is interested that his amount should be readily available as soon as he needs he should deposit his money in:
141 - If a person is interested that his amount should be readily available as soon as he needs he should deposit his money in:
Demand deposit
142 - Which type of card is not issued by commercial banks:
142 - Which type of card is not issued by commercial banks:
Green card
143 - Which type of card is not issued by central banks:
143 - Which type of card is not issued by central banks:
None is issued y it
144 - Market rate of interest is:
144 - Market rate of interest is:
Always higher than discount rate
145 - Most important source of income of commercial banks is:
145 - Most important source of income of commercial banks is:
Interest charged on loans
146 - Select the true statement:
146 - Select the true statement:
None is true
147 - If you borrow from a bank the amount which the bank charges is called:
147 - If you borrow from a bank the amount which the bank charges is called:
Interest rate
148 - The rate charged by a central bank on loans is called:
148 - The rate charged by a central bank on loans is called:
Discount rate
149 - Changes in discount rate are brought about by State Bank to:
149 - Changes in discount rate are brought about by State Bank to:
(a) and (b) of above
150 - Short term loans can be obtained in:
150 - Short term loans can be obtained in:
Money market
151 - Long term loans can be obtained in:
151 - Long term loans can be obtained in:
Capital market
152 - Functions of commercial bank are:
152 - Functions of commercial bank are:
Accept deposit, create deposit money and provide loans
153 - This is a difficulty of barter:
153 - This is a difficulty of barter:
All of the above
154 - Velocity of circulation of money means:
154 - Velocity of circulation of money means:
The average number of times a unit of money changes hands
155 - Nationalisation of banks ws done in:
155 - Nationalisation of banks ws done in:
1974
156 - National Bank of Pakistan is:
156 - National Bank of Pakistan is:
Commercial bank
157 - Total number of branches of Pakistani banks is approximately:
157 - Total number of branches of Pakistani banks is approximately:
9000
158 - National Bank of Pakistan was established in:
158 - National Bank of Pakistan was established in:
1949
159 - The bank established for loans to very small enterprises is called:
159 - The bank established for loans to very small enterprises is called:
Micro Finance Bank
160 - Pakistan has a banking system:
160 - Pakistan has a banking system:
Developed
161 - Commercial banks in Pakistan are supervised by:
161 - Commercial banks in Pakistan are supervised by:
State Bank
162 - National Bank is a:
162 - National Bank is a:
Public sector bank
163 - First Women bank is:
163 - First Women bank is:
Govt. Bank
164 - Bank rate in Pakistan is:
164 - Bank rate in Pakistan is:
0.13
165 - State Bank was established in:
165 - State Bank was established in:
1948
166 - 10-rupee note is issued by:
166 - 10-rupee note is issued by:
State Bank
167 - Acting as lender of last resort, a central bank lends to:
167 - Acting as lender of last resort, a central bank lends to:
Commercial banks
168 - Which statement is true of the relationship between bond prices and bond yields?
168 - Which statement is true of the relationship between bond prices and bond yields?
They vary inversely
169 - Which is the most widely used of monetary policy:
169 - Which is the most widely used of monetary policy:
Open-market operations
170 - When the State Bank wants to decrease money supply in the country, it:
170 - When the State Bank wants to decrease money supply in the country, it:
(b) and (c) of above
171 - Monetary policy consists of:
171 - Monetary policy consists of:
Changing total money supply
172 - State Bank of Pakistan has departments:
172 - State Bank of Pakistan has departments:
Issue, research and banking department
173 - Central bank's rate of lending to commercial banks is called
173 - Central bank's rate of lending to commercial banks is called
Discount rate
174 - When a central bank wants to increase money supply in circulation:
174 - When a central bank wants to increase money supply in circulation:
(a) and (b) of above
175 - State Bank of Pakistan is run by:
175 - State Bank of Pakistan is run by:
Board of directors
176 - Credit money is controlled by:
176 - Credit money is controlled by:
Central bank
177 - Every country establishes central bank to:
177 - Every country establishes central bank to:
(a) and (b) of above
178 - It is NOT an instrument of monetary policy:
178 - It is NOT an instrument of monetary policy:
Issue notes
179 - It creates credit:
179 - It creates credit:
Commercial bank
180 - Which is a monetary measure to increase employment:
180 - Which is a monetary measure to increase employment:
Reducing interest rate
181 - In order to reduce consumer borrowing this is raised:
181 - In order to reduce consumer borrowing this is raised:
Interest rate
182 - Treasury bill is used for:
182 - Treasury bill is used for:
Getting short term loans
183 - Out of the following the only recognised legal tender is:
183 - Out of the following the only recognised legal tender is:
Bank notes
184 - Open Market Operation is:
184 - Open Market Operation is:
Buying and selling govt. securities
185 - Discount rate of State Bank of Pakistan is:
185 - Discount rate of State Bank of Pakistan is:
More than 5% but not more than 15%
186 - State Bank was established in:
186 - State Bank was established in:
1948
187 - 10-rupees note is issued by:
187 - 10-rupees note is issued by:
State Bank
188 - Acting as lender of last resort, a central bank lends to:
188 - Acting as lender of last resort, a central bank lends to:
Commercial banks
189 - Which statement is true of the relationship between bond prices and bond yields?
189 - Which statement is true of the relationship between bond prices and bond yields?
They vary inversely
190 - Which is the most widely used tool of monetary policy:
190 - Which is the most widely used tool of monetary policy:
Open-market operations
191 - When the State Bank wants to decrease money supply in the country, it:
191 - When the State Bank wants to decrease money supply in the country, it:
Sells govt. securities
192 - Monetary policy consists of:
192 - Monetary policy consists of:
Changing total money supply
193 - State Bank of Pakistan has departments:
193 - State Bank of Pakistan has departments:
Issue, research and banking department
194 - Central bank's rate of landing to commercial banks is called:
194 - Central bank's rate of landing to commercial banks is called:
Discount rate
195 - When a central bank wants to increase money supply in circulation:
195 - When a central bank wants to increase money supply in circulation:
(a) and (b) of above
196 - State Bank of Pakistan is run by:
196 - State Bank of Pakistan is run by:
Board of directors
197 - Credit money is controlled by:
197 - Credit money is controlled by:
Central bank
198 - Every country establishes central bank to:
198 - Every country establishes central bank to:
(a) and (b) of above
199 - It is NOT an instrument of monetary policy:
199 - It is NOT an instrument of monetary policy:
Issue notes
200 - It creates credit:
200 - It creates credit:
Commercial banks
201 - Which is a monetary measure to increase employment
201 - Which is a monetary measure to increase employment
Reducing interest rate
202 - In order to reduce consumer borrowing this is raised:
202 - In order to reduce consumer borrowing this is raised:
Interest rate
203 - Which organisation controls the banking system in most countries?
203 - Which organisation controls the banking system in most countries?
Central bank
204 - Treasury bill is used for
204 - Treasury bill is used for
Getting short term loans
205 - Out of the following the only recognised legal tender is:
205 - Out of the following the only recognised legal tender is:
Bank notes and coins
206 - Open market operations is:
206 - Open market operations is:
Buying and selling govt. securities
207 - Monetary policy has the objective:
207 - Monetary policy has the objective:
Decrease inflation rate
208 - Every country establishes central bank to:
208 - Every country establishes central bank to:
Issue currency
209 - It is a monetary employment:
209 - It is a monetary employment:
Reducing interest rate
210 - In order to reduce consumer borrowing:
210 - In order to reduce consumer borrowing:
Interest rate is increased
211 - Which organistion controls the banking system:
211 - Which organistion controls the banking system:
Central bank
212 - The money called legal tender includes:
212 - The money called legal tender includes:
Currency notes and coins
213 - Open market operations refer to:
213 - Open market operations refer to:
Buying and selling govt. securities
214 - If SLR (statutaory liquidity ratio) is 20% and a bank gets a new deposit of 10 million, the total increase in its deposits can rise up to:
214 - If SLR (statutaory liquidity ratio) is 20% and a bank gets a new deposit of 10 million, the total increase in its deposits can rise up to:
50 millions
215 - State Bank policy of regulating interest rate is called:
215 - State Bank policy of regulating interest rate is called:
Monetary policy
216 - Taxes are levied to:
216 - Taxes are levied to:
Provide general benefits for the people
217 - Whom of the following propounded principles of taxation:
217 - Whom of the following propounded principles of taxation:
Adam Smith
218 - Taxes on commodities are:
218 - Taxes on commodities are:
Indirect taxes
219 - Govt. prepares its budget:
219 - Govt. prepares its budget:
Annually
220 - One of the following is NOT a feature of private finance:
220 - One of the following is NOT a feature of private finance:
Publicity
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