basic of economics Mcqs
101. National Income is essentially composed of ?
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A. Income derived from taxes by the central government

B. All income of the people on a year

C. All wealth of a nation

D. Annual Income of the central government

102. Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?
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A. IMF Drawing Rights (SDR)

B. Sure, Drawing Rights (SDR)

C. International Drawing Right (IDR)

D. Special Drawing Right (SDR)
104. Devaluation means ?
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A. Converting rupee into gold

B. Lowering of the value of one currency in comparison of some foreign currency

C. Making rupee dearer in comparison to some foreign currency

D. None of these

105. Which of the following must always balance ?
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A. Balance of invisible trade

B. Balance on the current account

C. Balance of visible trade

D. Balance of payments

106. When the stock market is rising it is ?
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A. Hottest

B. Bullish

C. Bearish

D. Rising up

107. India is the chief exporter of ?
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A. Mica

B. Gold

C. Silver

D. Rubber

109. How I measured the change in the cost of basic goods and services in comparison with a fixed base period ?
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A. Human Development Index (HDI)

B. Comparative Price Index (CPI)

C. Complete Price Index (CPI)

D. Consumer Price Index (CPI)

110. Estimated income and plane for expenditure is called Budget. What is Budget deficit ?
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A. Less Public spending than amount of revenue corporation

B. None of them

C. More public spending than amount of revenue

D. Balance between public spending and amount of revenue

112. What does mean by Emerging Markets ?
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A. Financial markets of Asian economies

B. Financial markets of East Europes economies

C. Financial markets of developing economies

D. Financial markets of Latin America

114. Term a countrys decision to tie the value of its currency to another countrys currency gold or a basket of currencies ?
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A. Relative exchange rate

B. Pagged exchanged rate

C. Knotted exchange rate

D. Fixed exchange rate
116. USA is the chief exporter of ?
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A. Coal

B. All of these

C. Copper

D. Cotton

117. Which of the following is a valid currency______________?
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A. Promissory note

B. Currency note

C. Exchange rate

D. Bank cheque

119. What is referred by the hard currency ?
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A. Any currency backed by gold or silver bullion rather than credit

B. Stable currency value of which does not fluctuate greatly

C. Both of them

D. None of them

120. What is the meaning of the term stagflation ?
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A. None of these

B. Fall in employment due to declining production

C. Fall in prices due to less circulation of currency

D. High inflation rate combined with high unemployment and unchanged consume demand
121. What is public sector ?
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A. All of them

B. Central and local government

C. Nationalized Industries

D. Public corporations

122. Balance of sheet is understood as ?
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A. Accurate economic position

B. Performance of a company

C. Statements of accounts that shows debit and credit accounts under the broad heads

D. Profit in a year

123. A tariff______________?
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A. A and C of above

B. Reduces the volume of trade

C. Increase the volume of trade

D. Has no effect on volume of trade?

125. Bearer cheque is ?
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A. payable through account only

B. payable to person holding it

C. payable after specific period

D. Payable to anyone

126. The most industrialized country in Asia is ?
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A. Taiwan

B. South Korea

C. Malaysia

D. Japan
127. According to the law of demand. When ?
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A. Price increase demand decreases

B. Price decreases demand decreases

C. Price increased demand increases

D. None of these

131. What is deflation________________?
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A. Increase in public expenditure

B. Reverse of inflation

C. Deficit Budget

D. Reduction in taxation

133. A company or corporation which was subsidiaries, investments or operation in more than one country is known as ?
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A. Multinational corporation

B. Multinational company

C. Both of them

D. None of them

134. What would cause a countrys exchange rate to fall ?
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A. An increases demand for its exports

B. None of the above

C. Increased demand for its imports

D. An increased inflow of capital

135. What is comprised by public sector ?
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A. All of them

B. Public corporations

C. Nationalized industries

D. Central and local government.

136. Inflation is ?
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A. Lowering of purchasing power

B. None of the above

C. Decrease in the amount of circulation money

D. Increase in the amount of circulating money
137. Trade name is ?
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A. By which commodity service or process is known to trade

B. All of them

C. Used to identify a commercial product or service

D. Under which a business firm operates

138. What is called that company which make loans to individuals, while not receiving deposits like a bank ?
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A. Finance corporation

B. Limited company

C. Cooperative company

D. Finance company

141. Which of the following groups suffer the most from inflation ?
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A. Debtors

B. Creditors

C. Business class

D. None of these

145. The period of high inflation and low economic growth is termed as ?
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A. Take-off stage in economy

B. Stagflation

C. Stagnation

D. None of these

146. What is referred by the term Portfolio ?
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A. Total unmovable assets of a company

B. A collection of investments, real or financial

C. Total profit of company in a year

D. Net assets of a company

150. The balance of payment is ?
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A. Balance between a nations expenditure on imports and its receipts from exports

B. Total sum a state owned

C. Total liabilities of a nation

D. Shortfall in budget