Government of Pakistan issues currency on the basis of__________________?
Correct answer: C. Demand for money in the country
- A. Availability of gold in the country
- B. Availability of dollars in the country
- C. Demand for money in the country
- D. Tax collection
Explanation
In a modern monetary system, currency issuance is linked mainly to the economy’s demand for money and monetary policy rather than to gold, dollars, or tax receipts. The State Bank issues currency within the monetary framework set for the economy.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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