C++ | MCQs

Explanation

• The term "crowding out" refers to the decrease in private investment that occurs when government borrowing increases.
• When the government borrows more money from the financial markets to finance its spending, it increases the demand for loanable funds, leading to higher interest rates.
• Higher interest rates make borrowing more expensive for businesses and individuals, reducing their willingness to invest and borrow for private investment projects.
• This phenomenon is known as "crowding out" because government borrowing "crowds out" private investment by competing for available funds in the financial markets.
  

Explanation

• The term "lender of last resort" refers to a central bank providing loans to commercial banks during times of financial crisis.
• This action helps stabilize the financial system by providing liquidity to banks facing liquidity shortages, thereby preventing widespread bank failures and systemic collapse.

Explanation

• To find the marginal cost (MC), you need to take the derivative of the cost function with respect to quantity (Q).
• Given cost function: C(Q) = 2Q^2 + 10Q + 50

Take the derivative of C(Q) with respect to Q:

• MC(Q) = dC/dd = 4Q + 10

Now, plug in the value Q = 5:

• MC(5) = 4(5) + 10 = 20 + 10 = $30.

Explanation

The biggest challenge for Pakistan's economy in 2022-23 was the rising inflation, which can significantly impact the purchasing power of citizens and overall economic stability.

Explanation

• According to the classical money theory, money is purely nominal. That is, changes in money supply will have only affect the price levels, but not the real output. Specifically, according to the quantity theory of money, we have:
• real output * price level = money supply * money velocity
• Holding money velocity constant, a reduction in money supply will reduce the price level proportionately, but has no effect on real output.
• Quantity Theory of Money: The quantity theory of money states that the product of real output and price level is equal to the product of money supply and money velocity. This theory is based on a simple equilibrium condition for the money market.

Explanation

The services sector typically contributes the largest share to Pakistan's GDP.

Explanation

The primary objective of a central bank's monetary policy is achieving price stability and controlling inflation.

Explanation

1. USA: $ 20.5 Trillion
2. China: $ 3.6 Trillion
3. Japan: $ 4.9 Trillion
4. Germany $ 3.9 trillion
5. India: $ 2.94 Trillion

Explanation

Gautam Budha was born in 623 BC.

Language of discourse/lectures of Budhha was: Pali 

Gautam Budha was the founder of Buddhism.

Gautam Budha was born in Lumbini, Nepal.

Explanation

The Jewish place of worship is called the synagogue.

It is also a place of meeting for Jews.