The primary function of bank is to ?

A. Control the money supply
B. Provide notes and coins for trade
C. Make a profit
D. Provide a cheque clearing system

The money supply is ?

A. State bank of pakistan issue department
B. Money + bank cards + credit cards
C. Cheques + money + bank cards + credit cards
D. Currency in circulation plus bank deposits

Three variables affect the demand for money they are _______ and __________?

A. Bank opening hours, the proportion of weekly paid employee’s interest rates
B. The price level interest rates real income
C. The time of year bank opening hours the price level
D. The proportion of weekly paid employees the time of year real income

When real income increases other things equal we can expect the demand for real money holdings to ?

A. Fall
B. Not change
C. Increase
D. None of these

According to the simple Keynesian view the aggregate supply curve is ?

A. Downward sloping over all levels of output
B. Upward sloping over all levels of output
C. Horizontal until it reaches full capacity and then becomes vertical
D. Vertical until it reaches full capacity and then becomes horizontal

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A. Suffer even more
B. Not be reduced as much as it would have been
C. Be replaced by foreign investment
D. Be replaced by consumer spending

If planned investment becomes more sensitive to interest rate changes the crowding out effect will ?

A. Be reduced
B. Not be affected
C. Fall to zero
D. Be increased

The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the ?

A. Aggregate supply curve
B. Lm curve
C. Aggregate demand curve
D. Is curve

When the money supply increase ?

A. The economy moves up the lm curve
B. The lm curves shifts to the left
C. The economy moves down the lm curve
D. The lm curve shift to the right

For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

A. Decrease the money supply
B. Increase the money supply
C. Increase the demand for money
D. Decrease the demand for money