On what basis does the Government of Pakistan issue its currency?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

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The amount of gold reserves held by the countryThe quantity of foreign currency, such as dollars, available domesticallyThe public's requirement and demand for money within the countryThe total revenue collected through taxesThe country's overall export earnings

Explanation

The Government of Pakistan issues currency primarily based on the demand for money within the country, rather than gold reserves, foreign currency availability, or tax revenues.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

On what basis does the Government of Pakistan issue its currency?

Explanation

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