Chapter 6 - Public Policies (Tutorial Quiz) Group K18

In Malaysia, highest contributor to a government is __________

• direct tax

• Indirect tax

• non-tax revenue

• non-revenue receipt

Which are the 2 tools of Fiscal policy ?

• Consumption and Import

• Government expenditure and taxation

• Government expenditure and Money supply

• Interest rate and Taxation

The effects of expansionary monetary policy is a(n)​ (a)   ​

• decrease in interest rate

• increase in interest rate

• increase in government expenditure

• decrease in government expenditure

All the following are examples of direct tax, except

• Personal income tax

• Company tax

• Stamp duties

• Services tax

Which of the following is the most appropriate fiscal policy for recession?

• Decreases in government expenditures and increases tax rate

• Increases tax rate and interest rate

• Decreases tax rate and increases government expenditures

• Decreases interest rate and increases money supply

The government will _______, if the aggregate demand shift to the left

• buy bonds in the open market operation.

• sell bonds in the open market operations

• Decrease the discount rate.

• Decrease the reserve ratio.

What is the legal cash reserve requirement

• maximum amount of cash required by all commercial banks to be lent out to the public.

• minimum amount of cash required by BNM to be kept in commerical bank.

• maximum amount of cash required by all commercial banks to be kept in central bank

• minimum amount of cash required by all commercial banks to be kept in BNM.

Decreasing the minimum legal cash reserve ratio results in________

• reduce credit creation by central bank.

• reduce cash reserves and this will restrain credit creation.

• excess cash reserves and this become available for credit creation.

• reduce the money supply

If the central bank increases its bank rate ,the interes rate on borrowing become more ________, this will lead to a _________in the demand for loans.

• cheaper, increase

• expensive, decrease

• cheaper, decrease

• expensive, increase

All the following are monetary policy instruments, except

• Legal cash requirement

• Open market operation

• Bank or discount rate

• Level of taxation