[{"id":213984,"question":"An item designed as money that is intrinsically worthless could the.","choices":[{"text":"A currency note","value":"A"},{"text":"A silver coin","value":"B"},{"text":"A barter item","value":"C"},{"text":"Any tradeable commodity","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213983,"question":"If the State bank of Pakistan wished to pursue a light monetary policy it would.","choices":[{"text":"Lower the required reserve ratio and the statutory liquidity ratio.","value":"A"},{"text":"Lower interest rates","value":"B"},{"text":"Buy government securities on the open market","value":"C"},{"text":"Sell government securities on the open market","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213982,"question":"The increase in base money divided by the corresponding induced increasing commercial bank deposits is the.","choices":[{"text":"Bank's line of credit","value":"A"},{"text":"Reserve ratio","value":"B"},{"text":"Current ratio","value":"C"},{"text":"Money multipiler","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213981,"question":"The automatic stabilization function of fiscial policy ensures that government expenditures _________ and government revenues __ during recessions.","choices":[{"text":"decrease ; decrease","value":"A"},{"text":"decrease ; increase","value":"B"},{"text":"Increase ; decrease","value":"C"},{"text":"increase ; increase","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213980,"question":"The main source of interest profits for banks is.","choices":[{"text":"Checking account fees","value":"A"},{"text":"Loans","value":"B"},{"text":"Government securities","value":"C"},{"text":"Savigng accounts","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213979,"question":"The purpose of financial intermediaries is.","choices":[{"text":"To allow more saving than investment","value":"A"},{"text":"To discourage consumption spending","value":"B"},{"text":"To collect income taxes for the government","value":"C"},{"text":"To serve are middlemen between savers and borrowers.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213978,"question":"Commercial banks","choices":[{"text":"Are financial intermediaries that offer demand deposits.","value":"A"},{"text":"Are owned by the Federal Reserve","value":"B"},{"text":"Are non profit banking institutions","value":"C"},{"text":"Are overseen by the Federal savings and loan insurance corporation.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213977,"question":"Which of the following part of M1","choices":[{"text":"Stock negotiating accounts","value":"A"},{"text":"Automatic transfer system accounts","value":"B"},{"text":"Negotiable orders of withdrawal accounts","value":"C"},{"text":"Demand deposits of mutual saving banks.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213976,"question":"Credit constitutes.","choices":[{"text":"Saving made available to borrowers","value":"A"},{"text":"A form of liquid asset","value":"B"},{"text":"bank loans converted into commodity money","value":"C"},{"text":"Money used as a standard of deferred payment.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213975,"question":"When your grandmother keeps her savings hidden under her mattress she is using money as.","choices":[{"text":"a standard of deferred panyment","value":"A"},{"text":"A comfortable thing for sleeping","value":"B"},{"text":"A medium of exchange","value":"C"},{"text":"A store of value","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213974,"question":"using money as a medium of exchange.","choices":[{"text":"Requires people to math goods wanted with goods available.","value":"A"},{"text":"Reduces the range of feasible exchanges in the economy","value":"B"},{"text":"Inhibits economic transactions","value":"C"},{"text":"Reduces the need for barter in the economy.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213973,"question":"The function of money do not include.","choices":[{"text":"an exchange of purchasing power","value":"A"},{"text":"A unit of account","value":"B"},{"text":"A medium of exchange","value":"C"},{"text":"A store of value","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213972,"question":"an asset that can easily be exchanged for goods and services is called a.","choices":[{"text":"Financial asset","value":"A"},{"text":"Barter like asset","value":"B"},{"text":"Illegitimate asset","value":"C"},{"text":"Liquid asset","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213971,"question":"Money is","choices":[{"text":"An indicator of the scarcity of wants","value":"A"},{"text":"Anything that sellers accept i exchange for goods and services.","value":"B"},{"text":"A form of barter","value":"C"},{"text":"Anything that the government classifies as a trade commodity.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213970,"question":"Monetary policy is concerned with influencing.","choices":[{"text":"The general level of money wages","value":"A"},{"text":"The level of government expenditure","value":"B"},{"text":"The price and availability of money","value":"C"},{"text":"The level of shares on the stock market","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213969,"question":"The main role of the Federal Reserve is to","choices":[{"text":"Administer the government on the state of the economy","value":"A"},{"text":"Overses the operations of the financial system and monetary management.","value":"B"},{"text":"Establish the value of the dollar and official interest rates","value":"C"},{"text":"Provide advice to the government on the state of the economy.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213968,"question":"The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.","choices":[{"text":"Crowding out","value":"A"},{"text":"Recognition lag","value":"B"},{"text":"Public sector borrowing requirement","value":"C"},{"text":"Fiscal drag","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213967,"question":"Automatic stabilizers","choices":[{"text":"Counter balance fluctuations in economic activity.","value":"A"},{"text":"Reinforce fluctuations in economic activity","value":"B"},{"text":"Do not occur when the economy falls into recession","value":"C"},{"text":"Reduces the size of the deflationary gap","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213966,"question":"Fiscal policy refers to the manipulation of government income and expenditure to.","choices":[{"text":"control the volume and price of money","value":"A"},{"text":"Limit the rate of increaes in incomes","value":"B"},{"text":"Effect the value of the dollar on world financial market.","value":"C"},{"text":"Affect the level of total expenditure output and employment","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213965,"question":"The government performs its redistribution function mainly through.","choices":[{"text":"Trade practice legislation against anticipative behavior","value":"A"},{"text":"The provision of public goods","value":"B"},{"text":"Taxes and transfer payments","value":"C"},{"text":"Tariffs on imports","value":"D"},{"value":"E"}],"correctAnswer":3}]