Question # 1

Commercial banks are able to create money by

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Making loans

Printing Money

Moral suasion Selling government loans

Printing money

The have a functional relation

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Consumption and national income

Consumption and saving

Consumption and investment

All of the above

In circular flow model

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Govt. owns productive resources

Firms own productive resources

Households own productive resorces

Rent of land is not included

Whis is the most widely used tool of monetary policy

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Open market operation

Clearing house

Discount rate

Issuing of the note

Net Exports are

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Total Exports plus total imports

Total exports minus total imports

Total exports divided by total imports

Total imports minus total exports

It is NOT an instrument of moneatry policy

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Discount Rate

Open market operation

Change in reserve ratio

Issue notes

Demand depostis are.

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Money

Banks notes

Legal money

Considerd and near money

Governmet finance is called.

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National finance

Public finance

Private finance

a and b above

It is considred as transfer payments

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Salaries of govet emplyees

Bonus of bank employees

Inemployment allowance paid by govt

Free medical are to offers.

National Bank of Pakistan is

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Industrial Bank

Commercial Bank

Central Bank

Investment Bank

The countribution of industrial section our GDP is.

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10%

20%

30%

40%

Foreign Trade

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Increses employment opportunites

Increases international mobility of labour

Increases competition

All of the above

Govt.taxing and spending policies are called.

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Fiscal policy

Public policy

Monetary Policy

Economic policy

Marginal propensity to consume MPC is.

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Total income spent on consumption

Ratio of additionalincome consumed

Ratio of total income consumed

Consumption divided by saving

Whcih is the mot widely used tool of monetary policy

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Open market operations

Issuing of notes

Discount rate

Cleaning house

Threre are methods of measurieng natinal income

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5

4

2

3

Speculative demand for money depends upon

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Income

Investment

Rate of Interest

Central bank

Commercial Bank create

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Credit money

Token money

Legal Money

Do not create money

A country does not trade with othr contries is called an economy

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Open

Closed

Independent

None

They are NOT much affected by rising prices.

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Salaried persons

Business

Debtors

Importers

It is not included in estimation of national incoe

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Illegal income

Services of house wife

Imports

All are not included

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