basic of economics Mcqs
152. Term the written order which directs that a specified sum of money be paid to a specified person ?
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A. Bearer Cheque

B. Bill of Exchange BE

C. None of them

D. Bill of Lading

154. What is Dumping ?
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A. Sale of goods in large quantities and at a low price

B. Sale of goods in large quantities with low quality

C. Sale of goods in large quantities with high quality

D. Sale of goods in large quantities with high price

156. Which of the following is rate of interest the major international banks charge each other for borrowings ?
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A. London Interbank Offered Rate (LIBOR)

B. international Interbank Offered Rates (IOBOR)

C. New York Interbank Offered Rates (NIBOR)

D. USA Interbank Offered Rate (UIBOR)

157. What would reduce the role of central planning in a economy ?
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A. Increasing government spending

B. Increasing the role of markets

C. Removing the profit motive

D. Increasing public ownership of firms

158. The power of a bank to create credit is affected by ?
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A. The cash reserve requirement

B. A and B of above

C. The number of branches of a bank

D. The amount of cash available

159. When the stock market is down falling it is called ?
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A. Crashing

B. Bullish

C. Bearish

D. Falling

160. From each according to his ability to each according to his need is the theoretical slogan of ?
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A. Feudal System

B. Fascist System

C. Capitalist System

D. Communist System
161. The economics system planned economy is ?
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A. In which production and distribution of wealth is under governments control

B. In which technocrats control production

C. In which economists control production

D. In which government controls distribution

162. Currency that is expected to drop in value relative to other currencies is called ?
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A. Local currency

B. Lime currency

C. Cold currency

D. Soft currency
165. What is referred by the by economic theory Liberalism ?
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A. Laissez faire

B. Gold standard

C. The free market

D. All of these
166. What is the period called 12-months plan of a country to use its funds ?
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A. Fiscal year (FY)

B. Year unit

C. Fiscal period

D. Calendar year

167. A market in which prices are in an upward trend is known as ?
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A. Beamish market

B. Bull market

C. Hot market

D. Upward market

170. What is National debt or public debt ?
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A. States borrowing from its population

B. All of these

C. States borrowing from foreign government

D. states borrowing from international institution

171. What is the rate of exchange or exchange rate ?
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A. None of them

B. Foreign currency holding

C. Ratio at which unit of one countrys currency is exchanged for unit of another country currency

D. Power to buy foreign currency

172. Which country is the chief exporter of jute ?
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A. Bangladesh

B. India

C. Both of them

D. None of them

173. Governmental non-interference in commerce is called ?
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A. Open market economy

B. Free market economy

C. Liberal market economy

D. Laissez faire also Laisser faire
174. A government program, social security is ?
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A. Economics assistance provided by social security

B. Economic assistance to persons who faced unemployment, disability of agedness, financed by assessment of employers and employees

C. Both a & b

D. Nor a nor b

175. What is price support ?
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A. To increase price artificially

B. Maintenance of price through public subsidy or government intervention

C. To maintain price at specific level

D. To enhance price

176. What is inflation ?
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A. Increase in the amount of circulating money

B. Decrease in the amount of circulation money

C. None of these

D. Lowering of purchasing power

177. What is referred by the Working capital ?
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A. Assets of business that can be applied to its operation

B. Amount of current assets that exceeds current liabilities

C. Both of them

D. None of them

179. Two countries can gain from foreign trade if ?
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A. Cost ratios are different

B. Price ratios are different

C. Tariff rates are different

D. A and C of above
183. P2P is business slang. What does it refer ?
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A. To startups or internet startup

B. Path to profitability

C. Both of them

D. None of them

184. What is Black Money ?
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A. None of these

B. Illegally earned money

C. Income on which payment of tax is usually evaded

D. Money earned through underhand deals

185. Gross National income is always more than Net National income because it includes ?
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A. Capital consumption allowance

B. Foreign income

C. Indirect taxes

D. Direct taxes

186. Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?
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A. Ultra-country economic risk

B. Outcome risk

C. Country economic risk

D. International economic risk

187. What can a central bank increase in order to reduce consumer borrowing ?
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A. interest rates

B. None of these

C. government bank deposits

D. commercial bank deposits

E. government spending

192. What is referred by cost push inflation ?
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A. increased production costs drive prices down

B. Decreased production costs drive prices up

C. increased production costs drive prices up

D. Decreased production costs drive prices down

194. Government policy about exports and imports is called ?
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A. Fiscal policy

B. Monetary policy

C. Commercial policy

D. Finance policy

195. What does price elasticity of demand measure ?
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A. Changes in price caused by changes in demand

B. The rate of change of sales

C. The responsiveness of demand to price changes

D. The value of sales at a given price

197. An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called ?
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A. Free adjustment

B. Cost of living adjustment

C. Comparative adjustment

D. Cost effective adjustment

198. Which theory of economic management focuses on encouraging product through tax reduction ?
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A. Supply-side economics

B. Supervised market

C. Liberalism

D. Free market economics

199. Which form of business organization falls between a corporation and partnership ?
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A. Joint stock company

B. Limited joint company

C. joint company

D. Limited Company

200. Balance of payments of a country includes ?
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A. Balance of trade

B. A and B of above

C. Capital receipts and payments

D. Savings and investment account