Economics Mcqs
Which is the most widely used tool of monetary policy ?

A. clearing house
B. open-market operations
C. discount rate
D. issuing of notes

Central bank’s rate of lending to commercial banks is called ?

A. Interest rate
B. Discount rate
C. Money rate
D. Control rate

When banks prepare their balance sheets. They show the money lent in ?

A. liability
B. assets
C. both assets and liabilities
D. none

Which of the following is not an instrument of monetary policy ?

A. taxation
B. bank rate
C. open-market operations
D. credit rationing

Trade between two countries can be useful if cost ratios of goods are ?

A. equal
B. different
C. undetermined
D. decreasing

Which of the following would cause income to become more unequal ?

A. increased employment
B. increased unemployment allowance
C. more progressive taxes
D. more regressive taxes

The govt. can control inflation by______________?

A. increasing demand for goods
B. increasing supply of goods
C. increasing money supply
D. decreasing taxes

Which property the paper money does not process ?

A. acceptability
B. divisibility
C. durability
D. portability

When stock market is falling it is_______________?

A. bearish
B. bullish
C. crash
D. fall down

Pakistan follows the policy of_______________?

A. fixed exchange rate
B. flexible exchange rate
C. controlled exchange rate
D. increasing exchange rate