Basic Of Economics MCQs

Option A: Deficit Budget

Option B: Reduction in taxation

Option C: Increase in public expenditure

Option D: Reverse of inflation

Correct Answer: Reverse of inflation ✔

Option A: Cost ratios are different

Option B: Tariff rates are different

Option C: Price ratios are different

Option D: A and C of above

Correct Answer: A and C of above ✔

Option A: Promissory note

Option B: Currency note

Option C: Exchange rate

Option D: Bank cheque

Correct Answer: Currency note ✔

Option A: Feudal System

Option B: Capitalist System

Option C: Fascist System

Option D: Communist System

Correct Answer: Communist System ✔

Option A: Gold currency

Option B: Hard currency

Option C: Silver currency

Option D: Soft currency

Correct Answer: Soft currency ✔

Option A: Brl

Option B: Bel

Option C: Bbl

Option D: Obl

Correct Answer: Bbl ✔

Option A: Policy about markets

Option B: Policy about money supply

Option C: Policy about imports and exports

Option D: Policy of controlling of prices of goods

Correct Answer: Policy about imports and exports ✔

Option A: Frankfurt

Option B: Bonn

Option C: Berlin

Option D: Stuttgart

Correct Answer: Bonn ✔

Option A: Balance of trade

Option B: Capital receipts and payments

Option C: Savings and investment account

Option D: A and B of above

Correct Answer: A and B of above ✔

Option A: Accepting public deposits

Option B: Granting loan and advances

Option C: Undertaking agency functions

Option D: Banker to the government

Correct Answer: Banker to the government ✔

Option A: Micro Finance Bank

Option B: Moderba Bank

Option C: SME- Bank

Option D: First MINI Bank

Correct Answer: Micro Finance Bank ✔

Option A: Getting short term loans

Option B: Getting long term loans

Option C: Treasury bill in not credit instrument

Option D: Treasury bill is a govt. tax bill

Correct Answer: Getting short term loans ✔

Option A: Buys govt. securities in stock market

Option B: Sells govt. securities

Option C: Lowers discount rate

Option D: B and C of above

Correct Answer: Sells govt. securities ✔

Option A: The exchange rates

Option B: The interest rates

Option C: The money supplies

Option D: The real national income

Correct Answer: The money supplies ✔

Option A: Low rate of interest

Option B: Very low rate of interest

Option C: High rate of interest

Option D: Very high rate of interest

Correct Answer: Very low rate of interest ✔

Option A: The cash reserve requirement

Option B: The amount of cash available

Option C: The number of branches of a bank

Option D: A and B of above

Correct Answer: A and B of above ✔

Option A: 1st September

Option B: 1st January

Option C: 1st April

Option D: 1st July

Correct Answer: 1st July ✔

Option A: Increase the volume of trade

Option B: Reduces the volume of trade

Option C: Has no effect on volume of trade?

Option D: A and C of above

Correct Answer: Reduces the volume of trade ✔

Option A: The number of times a unit of money changes hands daily

Option B: The number of times as unit of money changes hands monthly

Option C: The number of times a unit of money changes hands annually

Option D: The number of times a unit of money changes value

Correct Answer: The number of times a unit of money changes hands annually ✔

Option A: Availability of gold in the country

Option B: Availability of dollars in the country

Option C: Demand for money in the country

Option D: Tax collection

Correct Answer: Demand for money in the country ✔

Option A: Increase in nominal GNP

Option B: Increase in real GNP

Option C: Increase in personal income

Option D: Increase in government revenue

Correct Answer: Increase in real GNP ✔

Option A: Bearish

Option B: Bullish

Option C: Hottest

Option D: Rising up

Correct Answer: Bullish ✔

Option A: An increases demand for its exports

Option B: Increased demand for its imports

Option C: An increased inflow of capital

Option D: None of the above

Correct Answer: Increased demand for its imports ✔

Option A: Increase in money supply

Option B: Fall in production

Option C: Increase in money supply and fall in production

Option D: Decrease in money supply and fall in production

Correct Answer: Increase in money supply ✔

Option A: Price increase demand decreases

Option B: Price decreases demand decreases

Option C: Price increased demand increases

Option D: None of these

Correct Answer: Price increase demand decreases ✔

Option A: Foreign income

Option B: Capital consumption allowance

Option C: Indirect taxes

Option D: Direct taxes

Correct Answer: Capital consumption allowance ✔

Option A: Total expenditure is more than total revenue

Option B: Current expenditure is more than current revenue

Option C: Capital expenditure is more than capital revenue

Option D: Total expenditure is more than current revenue

Correct Answer: Total expenditure is more than total revenue ✔

Option A: An increase in indirect taxes

Option B: An increase in managers salaries

Option C: An increase in progressive taxation

Option D: An increase in the rate of inflation

Correct Answer: An increase in progressive taxation ✔

Option A: Is the same as economic growth

Option B: Means improvement in lifestyle

Option C: Exists when there is equal distribution of income

Option D: All of the above

Correct Answer: Means improvement in lifestyle ✔

Option A: Investment

Option B: Subsidies

Option C: Taxation

Option D: Consumption

Correct Answer: Taxation ✔

Option A: Household’s purchases of food

Option B: Households’ purchase of a car

Option C: Household’s payment of rent for an apartment

Option D: Household’s purchase of stock in any XYZ corporation

Correct Answer: D. Household’s purchase of stock in any XYZ corporation ✔

Option A: Gross investment minus household investment

Option B: Gross investment minus govt. Investment

Option C: Gross investment minus capital consumption allowance

Option D: None of the above

Correct Answer: Gross investment minus capital consumption allowance ✔

Option A: Total sales in the economy

Option B: Total monetary transactions in an economy

Option C: The market value of all goods and services produced in an economy

Option D: Total spending in an economy

Correct Answer: The market value of all goods and services produced in an economy ✔

Option A: Expenditure method

Option B: Income method

Option C: Product method

Option D: All of the above

Correct Answer: All of the above ✔

Option A: Fall in prices due to less circulation of currency

Option B: Fall in employment due to declining production

Option C: High inflation rate combined with high unemployment and unchanged consume demand

Option D: None of these

Correct Answer: High inflation rate combined with high unemployment and unchanged consume demand ✔

Option A: Changes in price caused by changes in demand

Option B: The rate of change of sales

Option C: The responsiveness of demand to price changes

Option D: The value of sales at a given price

Correct Answer: The responsiveness of demand to price changes ✔

Option A: Increasing government spending

Option B: Increasing public ownership of firms

Option C: Increasing the role of markets

Option D: Removing the profit motive

Correct Answer: Increasing the role of markets ✔

Option A: Bank loans

Option B: The payment without work

Option C: Tax payments

Option D: Payments made to all factors of production

Correct Answer: The payment without work ✔

Option A: National income

Option B: Per capita income

Option C: Poverty ratio

Option D: None of these

Correct Answer: Per capita income ✔

Option A: Local tax

Option B: Indirect tax

Option C: Direct tax

Option D: Rate

Correct Answer: Direct tax ✔

Option A: A new investor

Option B: A old investor

Option C: A member of the stock exchange who cannot meet his obligations

Option D: None of the above

Correct Answer: A member of the stock exchange who cannot meet his obligations ✔

Option A: Reliance Industries Ltd.

Option B: British Gas

Option C: General Motors

Option D: State Bank

Correct Answer: Reliance Industries Ltd. ✔

Option A: National income

Option B: Saving

Option C: Imports at lower cost

Option D: Exports

Correct Answer: Exports ✔

Option A: Fall

Option B: Rise

Option C: Fluctuate

Option D: Remain constant

Correct Answer: Remain constant ✔

Option A: Acting as bankers to the government

Option B: Advising the government on monetary policy

Option C: Dealing in foreign exchange

Option D: Fixing the main interest rate

Correct Answer: Dealing in foreign exchange ✔

Option A: Income on which payment of tax is usually evaded

Option B: Illegally earned money

Option C: Money earned through underhand deals

Option D: None of these

Correct Answer: Income on which payment of tax is usually evaded ✔

Option A: Japan

Option B: South Korea

Option C: Taiwan

Option D: Malaysia

Correct Answer: Japan ✔

Option A: commercial bank deposits

Option B: government bank deposits

Option C: government spending

Option D: interest rates

Correct Answer: interest rates ✔

Option A: increasing bank lending

Option B: increasing import duties

Option C: reducing government expenditure

Option D: None of these

Correct Answer: reducing government expenditure ✔

Option A: Debtors

Option B: Creditors

Option C: Business class

Option D: None of these

Correct Answer: Creditors ✔

Option A: Milton Friedman

Option B: Adam smith

Option C: Alfred Marshal

Option D: Karl Marx

Correct Answer: Milton Friedman ✔

Option A: Converting rupee into gold

Option B: Lowering of the value of one currency in comparison of some foreign currency

Option C: Making rupee dearer in comparison to some foreign currency

Option D: None of these

Correct Answer: Lowering of the value of one currency in comparison of some foreign currency ✔

Option A: Stagnation

Option B: Take-off stage in economy

Option C: Stagflation

Option D: None of these

Correct Answer: Stagflation ✔

Option A: increase in wages

Option B: Decrease in money supply

Option C: Decrease in tax

Option D: None of these

Correct Answer: Decrease in tax ✔

Option A: The balance of visible trade

Option B: The balance of invisible trade

Option C: The balance on the current account

Option D: The balance of payments

Correct Answer: The balance of payments ✔

Option A: interest

Option B: Profit

Option C: rent

Option D: wages

Correct Answer: Profit ✔

Option A: Capital

Option B: Interest

Option C: Profit

Option D: None of these

Correct Answer: Capital ✔

Option A: Hyperinflation

Option B: Reflection

Option C: Stagflation

Option D: Galloping

Correct Answer: Stagflation ✔

Option A: Bullish

Option B: Bearish

Option C: Falling

Option D: Crashing

Correct Answer: Bearish ✔

Option A: Golden bonus

Option B: Golden shake hand

Option C: Friendly handshake

Option D: Golden handshake

Correct Answer: Golden handshake ✔

Option A: Deposit outside one’s home country but in the home country currency

Option B: European currency unit, introduced on Jan, 1 1999

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Controlling Banks

Option B: Controlling cooperation

Option C: Controlling markets

Option D: None of them

Correct Answer: Controlling markets ✔

Option A: A big company

Option B: Stock Exchange

Option C: Joint stock

Option D: A multinational company

Correct Answer: Stock Exchange ✔

Option A: National income

Option B: Domestic income

Option C: Protection Income

Option D: Per capita Income

Correct Answer: Per capita Income ✔

Option A: Local currency

Option B: Cold currency

Option C: Lime currency

Option D: Soft currency

Correct Answer: Soft currency ✔

Option A: Sales Tax

Option B: General Tax

Option C: Local Tax

Option D: Gross Tax

Correct Answer: Sales Tax ✔

Option A: Public corporations

Option B: Central and local government

Option C: Nationalized Industries

Option D: All of them

Correct Answer: All of them ✔

Option A: Poverty level

Option B: Poverty line

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: State’s borrowing from its population

Option B: State’s borrowing from foreign government

Option C: state’s borrowing from international institution

Option D: All of these

Correct Answer: All of these ✔

Option A: Free market economy

Option B: Laissez faire also Laisser faire

Option C: Open market economy

Option D: Liberal market economy

Correct Answer: Laissez faire also Laisser faire ✔

Option A: Increase in the amount of circulating money

Option B: Lowering of purchasing power

Option C: Decrease in the amount of circulation money

Option D: None of these

Correct Answer: Increase in the amount of circulating money ✔

Option A: Where no export duties are levied

Option B: Where no import duties are levied

Option C: Where no export or import duties are levied

Option D: Where everything can be import or export

Correct Answer: Where no export or import duties are levied ✔

Option A: Total debt

Option B: Debt burden

Option C: National liabilities

Option D: External debt

Correct Answer: External debt ✔

Option A: Fiscal period

Option B: Calendar year

Option C: Year unit

Option D: Fiscal year (FY)

Correct Answer: Fiscal year (FY) ✔

Option A: Value of all economic activity with in a nation’s border

Option B: Economics output of a country

Option C: Economic activities of federal government

Option D: None of these

Correct Answer: A. Value of all economic activity with in a nation’s border ✔

Option A: Sale of goods in large quantities with high quality

Option B: Sale of goods in large quantities with low quality

Option C: Sale of goods in large quantities and at a low price

Option D: Sale of goods in large quantities with high price

Correct Answer: Sale of goods in large quantities and at a low price ✔

Option A: Decreasing business activity

Option B: Falling prices

Option C: Unemployment

Option D: All of these

Correct Answer: All of these ✔

Option A: Nikki Index

Option B: NASDAQ

Option C: Dow Jones Index

Option D: Major Index

Correct Answer: Dow Jones Index ✔

Option A: deflation

Option B: inflation

Option C: cost effective

Option D: cost

Correct Answer: deflation ✔

Option A: Cost living

Option B: Basic requirement

Option C: Cost of life

Option D: None of these

Correct Answer: Basic requirement ✔

Option A: Limited Company

Option B: Society

Option C: Corporation

Option D: Cooperative

Correct Answer: Cooperative ✔

Option A: Adam smith

Option B: David Ricardo

Option C: David smith

Option D: Adam Ricardo

Correct Answer: Adam smith ✔

Option A: State Bank

Option B: National Bank

Option C: Both of them

Option D: None of them

Correct Answer: State Bank ✔

Option A: removal of individual and corporate investment

Option B: removal of capital drain

Option C: removal of income

Option D: All of these

Correct Answer: All of these ✔

Option A: Less Public spending than amount of revenue corporation

Option B: Balance between public spending and amount of revenue

Option C: More public spending than amount of revenue

Option D: None of them

Correct Answer: More public spending than amount of revenue ✔

Option A: Blue chip

Option B: Blue Chipper

Option C: An extremely valuable asset or property

Option D: All of these

Correct Answer: All of these ✔

Option A: Bankruptcy

Option B: Default

Option C: Total loss

Option D: Crash

Correct Answer: Bankruptcy ✔

Option A: Gold

Option B: Silver

Option C: Wheat

Option D: Sugar

Correct Answer: Sugar ✔

Option A: Jute

Option B: Diamond

Option C: Tin

Option D: Rubber

Correct Answer: Rubber ✔

Option A: Mica

Option B: Rubber

Option C: Silver

Option D: Gold

Correct Answer: Silver ✔

Option A: Bangladesh

Option B: India

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Coffee

Option B: Copper

Option C: Diamond

Option D: Gold

Correct Answer: Gold ✔

Option A: Coal

Option B: Copper

Option C: Cotton

Option D: All of these

Correct Answer: All of these ✔

Option A: Income tax

Option B: Sales tax

Option C: Custom duty

Option D: Tariff

Correct Answer: Sales tax ✔

Option A: Wall street

Option B: NASDAQ

Option C: Nikkei index

Option D: Yahoo index

Correct Answer: Wall street ✔

Option A: Trade deficit

Option B: Trade simples

Option C: Both a & b

Option D: Not a nor b

Correct Answer: Both a & b ✔

Option A: Fine

Option B: Surcharge

Option C: Additional Charged

Option D: Extra charges

Correct Answer: Extra charges ✔

Option A: Special Drawing Right (SDR)

Option B: IMF Drawing Rights (SDR)

Option C: International Drawing Right (IDR)

Option D: Sure, Drawing Rights (SDR)

Correct Answer: Special Drawing Right (SDR) ✔

Option A: Market interest

Option B: Easy interest

Option C: Compound interest

Option D: Simple interest

Correct Answer: Simple interest ✔

Option A: Rearranged loans

Option B: Rescheduled loans

Option C: Altered loans

Option D: None of these

Correct Answer: Rescheduled loans ✔