Economics explores how resources are utilized and their value maximized under specific conditions. It entails a thorough examination of the production, distribution, and consumption of goods and services. GuruMCQs.com provides all updated Economics MCQs. The most frequently repeated economics MCQs section is encountered in Inspector, ASI, Sub-inspector, Constable, FPSC, PPSC, ETEA, FIA, Police, Army, Navy, Airforce, IB, MOFA, ASF, LHC, Educators, and various other competitive exams, as well as government and private job assessments. MCQs on Economics cover topics like Basic Economic MCQs, Indirect Tax and Economic Welfare, Analysis of Interest Rate Changes, Carbon Trading, Changing Market Price, and much more. Also, check Auditing MCQs with answers here.
**Question 121: Pakistan’s fiscal year starts from?**
A. 1st September
B. 1st January
C. 1st April
**D. 1st July**
**Question 122: The power of a bank to create credit is affected by?**
A. The cash reserve requirement
B. The amount of cash available
C. The number of branches of a bank
**D. A and B of above**
**Question 123: The Liquidity Trap condition occurs at a_______________?**
A. Low rate of interest
**B. Very low rate of interest**
C. High rate of interest
D. Very high rate of interest
**Question 124: When a commercial bank creates credit, its immediate effect is that it raises__________________?**
A. The exchange rates
**B. The interest rates**
C. The money supplies
D. The real national income
**Question 125: When the State Bank wants to decrease money supply in the country, it _______________?**
**A. Sells government securities**
B. Buys government securities in the stock market
C. Lowers discount rate
D. B and C of above
**Question 126: Treasury bill is used for_________________?**
A. Getting short term loans
B. Getting long term loans
**C. Treasury bill in not a credit instrument**
D. Treasury bill is a government tax bill
**Question 127: The bank established for loans to very small enterprises in Pakistan is called_______________?**
**A. Micro Finance Bank**
B. Moderba Bank
C. SME-Bank
D. First MINI Bank
**Question 128: Which of the following is not a function of a commercial bank?**
A. Accepting public deposits
B. Granting loan and advances
C. Undertaking agency functions
**D. Banker to the government**
**Question 129: Balance of payments of a country includes?**
A. Balance of trade
B. Capital receipts and payments
C. Savings and investment account
**D. A and B of above**
**Question 130: Which city in Germany has the distinction of housing the first car manufacturing plant in the world?**
A. Frankfurt
B. Bonn
C. Berlin
**D. Stuttgart**