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Fiscal And Monetary Policyeconomics-mcqs › fiscal-and-monetary-policy
Published
1 Jun 2019
Last updated
28 May 2026

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What does over-funding mean in the context of the State Bank of Pakistan's actions?

Multiple choice question for Fiscal And Monetary Policy. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Over-funding occurs when the State Bank of Pakistan issues a greater amount of government bonds than what is required to finance the Public Sector Borrowing Requirement (PSBR), leading to excess funds beyond the borrowing needs.

Practice related questions from the same subject.

  1. 1.Why might a government impose taxes on certain goods or services?
  2. 2.Which statement accurately describes a regressive tax system?
  3. 3.What is the automatic effect on the government's budget balance when the economy experiences growth?
  4. 4.If the marginal tax rate is 40% and an individual's income rises from Rs 10,000 to Rs 12,000, what will be the total tax amount paid?
  5. 5.Which of the following actions aligns with a reflationary (expansionary) fiscal policy?

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