basic of economics MCQs – Page 9

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

421. Cost of production plus a fixed rate of profit is called ?
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A. Cost effective

B. Consumer price

C. cost plus

D. End price

422. What is called that executive who is brought in to turn a company around and make it profitable ?
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A. Super manager

B. Company doctor

C. Manager doctor

D. Savior

423. Crop grown for sale is called?
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A. Business Crop

B. Earning Crop

C. Cash crop

D. Money Crop

424. Name the organization in which people are associated together for a common purpose under a common name. This organization is recognized and created by law ?
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A. Cooperative

B. Corporation

C. Limited Company

D. Company

425. The term Remittance refers to_______________?
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A. Sending of money to someone at distance

B. The sum of money sent

C. Both of them

D. None of them

426. In which capacity does a person stand to gain from deflation ?
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A. As a pensioner

B. As a debtor

C. As an entrepreneur

D. As an equity-holder

427. The amount that is paid for carriage of goods by chips, railways, airways etc is called ?
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A. Rent

B. Freight

C. Hire and Fire

D. Transportation Changes

428. Which of the following is called a wholly or partially owned company what is the part of the large corporation?
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A. Small holding

B. Baby company

C. Subsidiary

D. Child company
429. Which of the following payment instruments introduced by the banks is known as plastic money ?
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A. Demand Drafts

B. Bearer cheques

C. Credit Cards

D. Gift Cheques

430. Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?
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A. a more youthful population

B. an ageing population

C. a fall in living standards

D. an increase in population

431. Forex stands for ?
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A. For examine

B. Foreign exports

C. None of these

D. Foreign exchange
432. By Which scale the value of all economic activity produced by a nation during a given period is measured ?
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A. Gross National output

B. Gross National Product (GNP)

C. Gross National output (GNO)

D. Gross Domestic Product (GOP)

433. What is referred by interest ?
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A. payment made for the use of banks money

B. Share in profit

C. Payment made for the use of another persons money

D. Devaluation in the currency

434. What is called the result of a states borrowing from its population, from foreign governments or from international institutions ?
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A. National debt

B. Public debt

C. Both of them

D. None of them

435. Which country is the chief exporter of coffee?
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A. Brazil

B. USA

C. Mexico

D. Australia

436. What is mortgage______________?
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A. Guarantee for debt

B. Conveyance of company security for debt

C. Assurance of debt repayment

D. Conveyance of property as security for debt
437. Pakistan follows the policy of_______________?
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A. controlled exchange rate

B. Fixed exchange rate

C. Flexible exchange rate

D. Increasing exchange rate

438. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?
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A. Multinational Bank

B. Foreign bank

C. International Bank

D. Eurobank