basic of economics MCQs – Page 21

Practise focused basic of economics questions with marked answers for exam preparation and subject revision.

basic of economics Mcqs
401. Which is the most widely used tool of monetary policy ?
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A. Discount rate

B. Issuing of notes

C. Open-market operations

D. Clearing house

402. What is called the reduction in the rate of a currency
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A. Price cap

B. Devolution

C. Cut-rate

D. Devaluation
403. Inflation means ?
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A. Rise in budget deficit

B. Rise in money supply

C. Reflection

D. Rise in general price index
404. What is measured by Gross domestic product (GDP)?
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A. None of these

B. Economic activity of federal government

C. Economic output of a country

D. Value of all economic activity within nations border
405. What is called a place of work where all workers within a section must belong to a single official recognized trade union ?
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A. Monopolized market

B. Closed shop

C. Monopolized shop

D. Monopolized area

406. Name the money of county that is expected to drop in value relative to other currencies?
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A. Cold currency

B. Local currency

C. Lime currency

D. Soft currency
407. Who among the following is most benefited from inflation ?
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A. Government pensioners

B. Creditors

C. Debtors

D. Savings Bank Account holders

408. Which of the following is not rated by credit rating agencies ?
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A. Government securities

B. Debentures and bonds

C. Shares

D. Commercial paper

409. What does mean by Deed________________?
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A. none of the above

B. legal instrument used to grand a right

C. legal instrument

D. Something done

410. Which market is called Bear market ?
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A. Market with upward and stock prices.

B. Market with a prolonged period of falling stock prices

C. A very big market

D. A very big industrial market

411. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
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A. Grey market

B. Open market

C. Over-the counter (OTC)

D. Back market

412. Which property the paper money does not process ?
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A. Acceptability

B. Divisibility

C. Durability

D. Portability

413. Which measures. taken by a government would be intended to raise the price of imports ?
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A. Embargoes

B. Quotas

C. Tariffs

D. Foreign exchange controls

414. An outside professional conducts an examination of companys accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?
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A. Accounting

B. Audit

C. Checking

D. Stock-taking

415. GNP includes ?
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A. A loan from ones parents

B. A brokers commission

C. Gifts and donations

D. A loan from a bank

416. The term prospectus refers to______________?
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A. Formal summary of proposed project

B. Document describing chief features of something for participants

C. Both of them

D. None of them

417. In Planned economy Production and distribution of Wealth is under control of_____________?
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A. Government

B. Private sector

C. Bank

D. None of the above

418. What is meant by excise?
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A. A tax levied on certain articles produced and consumed in a country

B. A licensing charge or a fee levied for certain privileges

C. Both of them

D. None of them

419. During a given period how the economic activity of a nation is measured?
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A. Gross National product (GNP)

B. Gross National output (GNO)

C. Gross National Output

D. Gross Domestic Product (GOP)

420. Name a market that is characterized by a small number of producers who often act together to control the supply of a particular good and its market price ?
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A. Oligopsony

B. Grey market

C. Oligopoly

D. Monopoly