Equilibrium in the Money market will change if there is ?

a change in the real money supply

a change in competition in the banking industry

The monetary base is ________ and _________?

retail sight deposits building society deposits

bank deposits, building society deposits

Currency in circulation, banks cash reserves

retail sight deposits building society deposits

retail deposits, wholesale deposits

The money supply is ?

State Bank of Pakistan Issue Department

Money + bank cards + credit cards

Cheques + money + bank cards + credit cards

Currency in circulation plus bank deposits

When the money supply increase ?

the economy moves up the LM curve

The LM curves shifts to the left

The economy moves down the LM curve

The LM curve shift to the right

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

A sale of government securities by the central bank

An increase in the level of aggregate output

An increase in the discount rate

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

Auditing the various agencies and department of the government

Assisting Banks that are in a difficult financial position

Auditing the various agencies and department of the government

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

Issuing new bonds to finance the PSBR.

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

How much cash do you wish you could have?

How much wealth would you like?

How much income would you like to earn?

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 ?

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

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

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

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

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

Which of the following is included in broad money, but not included in narrow money ?

Automatic-transfer savings accounts

The refinancing rate is ?

He interests rate banks pay on the public’s deposits

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

The interest rate the European Central Bank pays on reserves

The interest rates the public pays when borrowing from banks

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

He interests rate banks pay on the public’s deposits

The value of all coins and currency in circulation at any time

Anything that is generally accepted as a medium of exchange

Money has 3 main function they are __________ and __________?

IOU , inflation hedge store of value

Medium of exchange inflation hedge store of value

Medium of exchange unit of account IOU

Medium of exchange unit of account store of value

72 + Mcqs in Money in Economics Mcqs Page 2 McqOptions

51.	Equilibrium in the Money market will change if there is ?
A.	a change in the real money supply
B.	a change in real income
C.	a change in competition in the banking industry
D.	any of the above
Answer» E.

Discussion

52.	An item designated as money that is intrinsically worthless is ?
A.	precious metals
B.	commodity money
C.	fiat money
D.	barter items
Answer» D. barter items

Discussion

53.	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
Answer» D. None of these

Discussion

54.	The monetary base is ________ and _________?
A.	bank deposits, building society deposits
B.	Currency in circulation, banks cash reserves
C.	retail sight deposits building society deposits
D.	retail deposits, wholesale deposits
Answer» C. retail sight deposits building society deposits

Discussion

55.	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
Answer» E.

Discussion

56.	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
Answer» E.

Discussion

57.	Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
A.	flat; steep
B.	flat; flat
C.	steep; flat
D.	steep; steep
Answer» B. flat; flat

Discussion

58.	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
Answer» C. aggregate demand curve

Discussion

59.	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
Answer» E.

Discussion

60.	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
Answer» E.

Discussion

61.	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
Answer» E.

Discussion

62.	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.
Answer» B. Auditing the various agencies and department of the government

Discussion

63.	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
Answer» E.

Discussion

64.	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
Answer» D. Decrease the money supply because it is now cheaper for banks to borrow from the central bank instead instead of buying government securities

Discussion

65.	Which of the following is included in broad money, but not included in narrow money ?
A.	savings accounts
B.	Travelers checks
C.	Currency held outside banks
D.	Automatic-transfer savings accounts
Answer» B. Travelers checks

Discussion

66.	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
E.	He interests rate banks pay on the public’s deposits
Answer» E. He interests rate banks pay on the public’s deposits

Discussion

67.	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
Answer» C. The same as income

Discussion

68.	Government Securities with terms of more than one year are called ?
A.	bills of exchanges
B.	government bonds
C.	Treasury bills
D.	Capital bills
Answer» C. Treasury bills

Discussion

69.	Money has 3 main function they are __________ and __________?
A.	IOU , inflation hedge store of value
B.	Medium of exchange inflation hedge store of value
C.	Medium of exchange unit of account IOU
D.	Medium of exchange unit of account store of value
E.	Medium of exchange unit of account store of value
Answer» F.

Discussion

70.	An example of fiat money is ?
A.	Paper euros
B.	gold
C.	Silver coins
D.	cigarettes
Answer» B. gold

Discussion

71.	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
Answer» C. loans

Discussion

72.	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
Answer» E.

Discussion

Explore topic-wise MCQs in Economics Mcqs.

Equilibrium in the Money market will change if there is ?

An item designated as money that is intrinsically worthless is ?

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

The monetary base is and _?

The money supply is ?

When the money supply increase ?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be and the LM curve must be ?

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

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

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

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

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 ?

Which of the following is included in broad money, but not included in narrow money ?

The refinancing rate is ?

Money is ?

Government Securities with terms of more than one year are called ?

Money has 3 main function they are and ?

An example of fiat money 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 ?

Explore topic-wise MCQs in Economics Mcqs.

Equilibrium in the Money market will change if there is ?

An item designated as money that is intrinsically worthless is ?

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

The monetary base is ________ and _________?

The money supply is ?

When the money supply increase ?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?

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

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

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

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

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 ?

Which of the following is included in broad money, but not included in narrow money ?

The refinancing rate is ?

Money is ?

Government Securities with terms of more than one year are called ?

Money has 3 main function they are __________ and __________?

An example of fiat money 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 ?

The monetary base is and _?

Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be and the LM curve must be ?

Money has 3 main function they are and ?