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Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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What is the name of the government borrowing method where a promissory note is issued, promising repayment to the holder after a specified number of days?

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

Choose the correct answer

Explanation

The government raises funds by issuing promissory notes called Treasury bills, which are short-term instruments promising repayment to the bearer after a set period. Unlike bonds or debentures, Treasury bills do not pay periodic interest but are issued at a discount and redeemed at face value.

Practice related questions from the same subject.

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

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