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Economy

Macro Economics Concepts MCQ
Economy

[ Best 25+ ] Macro Economics Concepts MCQ

by Mr. DJ 18/02/2022
written by Mr. DJ

Macro Economics Concepts MCQ

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Macro Economics Concepts MCQ

Macro Economics Concepts MCQ

1. Macroeconomics as a separate branch came to be studied after the contributions of which
economist?

A. Adam Smith

B. John Maynard Keynes

C. F. Hayek

D. Samuelson

Answer:-

B. John Maynard Keynes

2. When did the Great Depression hit the United States?

A. 2007

B. 1929

C. 1936

D. 2001

Answer:-

B. 1929

3. Consider the following statements:
1. In a Capitalist economy there is private ownership of means of production 2. In a communist nation, the means of production are owned by the State 3. In a free-market economy there is minimum role of the Government Which of the above 3 statement is/are true?

A. Only 1 and 3

B. Only 2 and 3

C. Only 3

D. All are true

Answer:-

D. All are true

4. Macroeconomics is a study of economics that deals with which 4 major factors:

A. households, firms, government, and demand-supply

B. households, firms, government and external sector

C. firms, government, free-market, and regulations

D. none of the above

Answer:-

B. households, firms, government and external sector

5. What are consumption goods?

A. Goods used for consumption in the production process

B. Goods such as tools, machinery, etc which are used to create final consumption goods

C. Goods and services that are consumed fully when purchased by the consumers

D. None of the above

Answer:-

C. Goods and services that are consumed fully when purchased by the consumers

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6. What are Capital goods?

A. Goods used for consumption in the production process

B. Goods such as tools, machinery, etc which are used to create final consumer goods

C. Goods and services that are consumed fully when purchased by the consumers

D. None of the above

Answer:-

B. Goods such as tools, machinery, etc which are used to create final consumer goods

7. Intermediate goods are not included to calculate the final output because:

A. they do not have value

B. they have unknown value

C. their value is included in final goods so they are not added to avoid the problem of double counting

D. none of the above

Answer:-

C. their value is included in final goods so they are not added to avoid the problem of double counting

8. What does the term Gross investment mean while denoting a nation’s economy?

A. Gross investment= Net investment + Depreciation

B. Gross investment= Net investment – Depreciation

C. Gross investment= Depreciation – Net investment

D. None of the above

Answer:-

A. Gross investment= Net investment + Depreciation

9. What does the term free-market denote in terms of economy?

A. Minimal government intervention in trade and minimum regulations

B. Maximum government intervention in trade and maximum regulations

C. Means of production owned by the state

D. None of the above

Answer:-

A. Minimal government intervention in trade and minimum regulations

10. ___________economics can study the problem of Inflation in the country.

A. Micro

B. Macro

C. Static

D. Dynamic

Answer:-

B. Macro

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Theories of Output and Employment MCQ
Economy

( Best 30+ ) Theories of Output and Employment MCQ

by Mr. DJ 29/01/2022
written by Mr. DJ

Theories of Output and Employment MCQ

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Theories of Output and Employment MCQ

Theories of Output and Employment MCQ

1. Excess demand for money, according to Say’s law in the Economy:

A. Is greater

B. Is very less

C. Is equal to zero

D. There is no relationship between excess demand for money and Say’s Law

Answer: –

D. There is no relationship between excess demand for money and Say’s Law

2. Which of the following is not an assumption of classical theory?

A. Price flexibility

B. Unemployment

C. Say’s law

D. Neutrality of money

Answer: –

B. Unemployment

3. In classical theory the equality between saving and investment is brought about by:

A. Rate of interest

B. Income

C. Consumption

D. Multiplier

Answer: –

A. Rate of interest

4. The normal condition of a capitalist economy in classical theory is:

A. Underemployment

B. Full employment

C. General unemployment

D. Frictional unemployment

Answer: –

B. Full employment

5. In classical theory of employment, there is the possibility of:

A. Voluntary unemployment

B. No unemployment

C. Involuntary unemployment

D. Disguised unemployment

Answer: –

A. Voluntary unemployment

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6. “Supply creates its own demand “is a law of:

A. Investment

B. Inflation

C. Consumption

D. Market

Answer: –

D. Market

7. According to classical economists, variations in savings are due to:

A. Level of investment

B. Rate of interest

C. Level of employment

D. None of the above

Answer: –

B. Rate of interest

8. Supply creates its own demand is the Basis of:

A. Classical economics

B. Keynesian economics

C. Monetarism

D. None of these

Answer: –

A. Classical economics

9. Which policy is effective in the Keynesian range?

A. Monetary policy

B. Fiscal policy

C. Incomes policy

D. None of these

Answer: –

B. Fiscal policy

10. When output exceeds spending:

A. There is unsold output, and level of output will fall

B. There is unsold output, and level of output will rise

C. There is unsold output, and level of spending will rise

D. There is no unsold output since the level of spending will rise

Answer: –

A. There is unsold output, and level of output will fallAlso Read :-

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Digital Business MCQ
Economy

( Best 200+ ) Basics of Economics MCQ

by Mr. DJ 23/01/2022
written by Mr. DJ

Basics of Economics MCQ

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Basics of Economics MCQ

Basics of Economics MCQ

1. The economic problem arises since

A. wants are unlimited

B. resources are limited

C. resources are capable of alternative uses

D. all of the above

Answer: –

D. all of the above

2. Economic problem arises in

A. planned economies

B. free market economies

C. mixed economies

D. all of the above

Answer: –

D. all of the above

3. The resources are :

A. limited

B. unlimited

C. not only limited but are capable of alternative uses

D. none of the above

Answer: –

C. not only limited but are capable of alternative uses

4. —– is not an example of free good

A. sunlight

B. car

C. petrol

D. computer

Answer: –

A. sunlight

5. The term production refers to:

A. producing things which are capable of satisfying human wants

B. creation or addition of utilities

C. transformation of inputs into output

D. all of the above

Answer: –

D. all of the above

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6. The problem of allocation of resources is concerned with:

A. what to produce

B. how to produce

C. for whom to produce

D. all of the above

Answer: –

A. what to produce

7. The distribution of national product among the members of the society
is the problem of:

A. what to produce

B. how to produce

C. for whom to produce

D. all of the above

Answer: –

C. for whom to produce

8. Which one of the following come under macro economics:

A. per capita income

B. study of a firm

C. individual income

D. theory of factor pricing

Answer: –

A. per capita income

9. Which one of the following is not come under macro economics

A. national income

B. per capita income

C. disposable income

D. individual income

Answer: –

D. individual income

10. Partial equilibrium analysis come under:

A. micro economics

B. macro economics

C. welfare economics

D. international economics

Answer: –

A. micro economicsAlso Read :-

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Value of Money MCQ
Economy

( Best 30+ ) Value of Money MCQ

by Mr. DJ 23/01/2022
written by Mr. DJ

Value of Money MCQ

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Value of Money MCQ

Value of Money MCQ

1. Speculative demand for money depends upon:

A. Income

B. Investment

C. Rate of interest

D. Central bank

Answer:-

C. Rate of interest

2. If money supply in a country decrease:

A. Prices will rise

B. Prices will fall

C. Rate of interest falls

D. (b) and (c) of above

Answer:-

B. Prices will fall

3. In the equation MV = PY, V represents:

A. Value of money

B. Velocity of circulation of money

C. Variation of nation income

D. All of the above

Answer:-

B. Velocity of circulation of money

4. In the equation MV = PY, M represents:

A. Money supply

B. Money demand

C. Maximum output

D. Minimum output

Answer:-

A. Money supply

5. According to Keynes, motives for holding money are:

A. Two

B. Three

C. Four

D. Five

Answer:-

B. Three

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6. Quantity Theory of Money explains that:

A. Value of money depends upon quantity of money

B. Rate of interest depends upon quantity of money

C. Quantity of investment depends upon quantity of money

D. Supply of money depends upon quantity of money

Answer:-

A. Value of money depends upon quantity of money

7. Cross cheque has a cross sign (X) in the:

A. Right side upper corner

B. Right side lower corner

C. Left side upper corner

D. It does not have cross sign (X)

Answer:-

D. It does not have cross sign (X)

8. Cross cheque means:

A. It has been cancelled

B. Cash cannot be directly drawn from the bank

C. It has two lines drawn in left upper corner

D. (b) and (c) of above

Answer:-

D. (b) and (c) of above

9. Purchasing power of money during deflation is:

A. Reduced

B. Increased

C. Constant

D. Fluctuating

Answer:-

B. Increased

10. Velocity of circulation of money means the number of times a unit of money

A. Changes hands daily

B. Changes hands monthly

C. Changes hands annually

D. Changes purchasing power

Answer:-

C. Changes hands annually

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National Income MCQ
EconomyGeneralUncategorized

( Best 60+ ) National Income MCQ

by Mr. DJ 17/01/2022
written by Mr. DJ

National Income MCQ

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National Income MCQ

National Income MCQ

1. The average income of a country is called

A. Per capita income

B. Disposable income

C. Inflation rate

D. Real national income

Answer: –

A. Per capita income

2. The value of NNP at production point is called

A. NNP at factor cost

B. NNP at market price

C. GNP at market price

D. GNP at factor cost

Answer: –

A. NNP at factor cost

3. The value of NNP at consumer point is called the

A. NNP at factor cost

B. NNP at market price

C. GNP at market price

D. GNP at factor cost

Answer: –

B. NNP at market price

4. When depreciation is deducted from GNP, the net value is

A. Net national product (NNP)

B. Net domestic product

C. Gross national product

D. Disposable income

Answer: –

A. Net national product (NNP)

5. Consider the following statements and identify the right ones.
i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account

A. I only

B. ii only

C. both

D. none

Answer: –

B. ii only

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6. What is the net value of GDP after deducting depreciation from GDP(Gross domestic product)?

A. Net national product

B. Net domestic product

C. Gross national product

D. Disposable income

Answer: –

B. Net domestic product

7. Consider the following statements and identify the right ones.
i. National income is the monetary value of all final goods and services produced. ii. Depreciation is deducted from gross value to get the net value

A. I only

B. ii only

C. both

D. none

Answer: –

C. both

8. Which of the following is considered as financial year in India?

A. April 1 to March 31

B. January 1 to December 31

C. March 1 to April 30

D. March 16 to March 15

Answer: –

A. April 1 to March 31

9. Which is not added in the calculation of national income of India?

A. The value of goods and services

B. The sold value of the old fridge

C. Services rendered by the housewives

D. Both [B] & [C]

Answer: –

D. Both [B] & [C]

10. Which sector contributes the most to India’s economy in terms of GDP?

A. Service sector

B. Manufacturing sector

C. Agricultural sector

D. Small scale industries

Answer: –

A. Service sector

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EconomyMBA Corner

( Best 50+ ) Security analysis and portfolio management MCQ

by Mr. DJ 24/09/2021
written by Mr. DJ

Security analysis and portfolio management MCQ

Security analysis and portfolio management MCQ

Security analysis and portfolio management MCQ

Q1. ___ is putting money at risk by betting on an uncertain outcome with the hope that you might win money.
(a) Investment
(b) Gambling
(c) Financing
(d) Portfolio
Ans. B

Q2. ___ is a method used to evaluate the worth of security by studying the financial data of the issues.
(a) Security Analysis
(b) Fundamental analysis
(c) Performance Analysis
(d) None of the Above
Ans. B

Q3. IPO stands for:
(a) Internal Public Office
(b) Initial Public Office
(c) Initial Public Offer
(d) Internal Police Office
Ans. C

Q4. The primary market is one in which a borrower issues new securities in exchange for cash from an investor.
(a) True
(b) False
Ans. A

Q5. Which of the following are common errors in investment management?
(a) Not Having a Clearly Defined Investment Plan
(b) Investor often overdose themselves on Information
(c) Both A&B
(d) None A&B
Ans. C

Q6. Which of the following is the quality of a smart investor required.
(a) Smart Investor Invest Consistency.
(b) Smart Investor Are Important
(c) Smart Investors Are Emotionally Tied To Their Investment Position.
(d) All of the Above.
Ans. A

Q7. ___ is the variability in a security’s returns resulting from fluctuations in the aggregate market.
(a) Market Risk
(b) Inflation risk
(c) Credit Risk
(d) Intend rate risk
Ans. A

Q8. Money Market Transactions can be executed directly or an intermediary.
(a) True
(b) False
Ans. A

Q9. OTC stands for:
(a) Offer To The Centre
(b) Over The counter
(c) Over TO Corporation
(d) None of the Above.
Ans. B

Q10. ___ are the short-term unsecured promissory notes issued by a company to raise short-term cash.
(a) CD
(b) CP
(c) Treasury bills
(d) All of the Above
Ans. B

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EconomicsEconomy

( Best ) FERA And FEMA, Meaning, Act and Diffrence

by Mr. DJ 10/08/2021
written by Mr. DJ

FERA And FEMA

FEMA stands for Foreign Exchange Management Act which was introduced in the year 1999 and it acts as a replacement for the FERA (Foreign Exchange Regulation Act). FEMA was enforced on June 1, 2000. This Act aims to make all the offenses relating to foreign exchange from criminal to civil offenses. The main purpose behind the Foreign Exchange Control Act (1999) is to consolidate and amend the foreign exchange legislation with the aim of facilitating foreign trade and payments. FEMA was also formulated to maintain foreign exchange market in India and to promote the orderly development of the same. FEMA applies to all parts of India. The law also applies to all branches, offices, and agencies outside India owned or controlled by a person who is a resident of India.

FERA And FEMA 

Features of FERA:

(1) This Act may be called the Foreign Exchange Regulation Act, 1973.

(2) It extends to the whole of India.

(3) It applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate, registered or incorporated in India.

(4) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

According to these guidelines, the principal rule was that all branches of foreign companies operating in India should convert themselves into Indian companies with at least 60 per cent local equity participation. Furthermore all subsidiaries of foreign should bring down the foreign equity share to 40% or less.  The actual impact of this act was completely negative on the economic development of the country, because it tied the hands of big corporate houses to expand their business, so it was felt by the policy makers that there should be some relaxation in the act so that the economic development through industrialization can be speed up in the country.

Features of the FEMA

The following are some of the important features of Foreign Exchange Management Act:

a. It is consistent with full current account convertibility and contains provisions for progressive liberalisation of capital account transactions.

b. It is more transparent in its application as it lays down the areas requiring specific permissions of the Reserve Bank/Government of India on acquisition/holding of foreign exchange.

c. It classified the foreign exchange transactions in two categories, viz. capital account and current account transactions.

d. It provides power to the Reserve Bank for specifying, in , consultation with the central government, the classes of capital account transactions and limits to which exchange is admissible for such transactions.

e. It gives full freedom to a person resident in India, who was earlier resident outside India, to hold/own/transfer any foreign security/immovable property situated outside India and acquired when s/he was resident.

f. This act is a civil law and the contraventions of the Act provide for arrest only in exceptional cases.

g. FEMA does not apply to Indian citizen’s resident outside India.

Read More Than 100+ MCQ on FEMA and FERA

Differences between FERA and FEMA

Sr. No DIFFERENCES FERA FEMA
1 PROVISIONS FERA consisted of 81 sections, and was more complex FEMA is much simple, and consist of only 49 sections.
2 FEATURES Presumption of negative intention ( Mens Rea ) and joining hands in offence (abatement) existed in FEMA These presumptions of Mens Rea and abatement have been excluded in FEMA
3 NEW TERMS IN FEMA Terms like Capital Account Transaction, current Account Transaction, person, service etc. were not defined in FERA. Terms like Capital Account Transaction, current account Transaction person, service etc., have been defined in detail in FEMA
4 DEFINITION OF AUTHORIZED PERSON Definition of ” Authorized Person” in FERA was a narrow one ( 2(b) The definition of Authorized person has been widened to include banks, money changes, off shore banking Units etc. (2 ( c )
5 MEANING OF “RESIDENT” AS COMPARED WITH INCOME TAX ACT. There was a big difference in the definition of “Resident”, under FERA, and Income Tax Act The provision of FEMA, are in consistent with income Tax Act, in respect to the definition of term ” Resident “. Now the criteria of “In India for 182 days” to make a person resident has been brought under FEMA. Therefore a person who qualifies to be a non-resident under the income Tax Act, 1961 will also be considered a non-resident for the purposes of application of FEMA, but a person who is considered to be non-resident under FEMA may not necessarily be a non-resident under the Income Tax Act, for instance a business man going abroad and staying therefore a period of 182 days or more in a financial year will become a non-resident under FEMA.
6 PUNISHMENT Any offence under FERA, was a criminal offence , punishable with imprisonment as per code of criminal procedure, 1973 Here, the offence is considered to be a civil offence only punishable with some amount of money as a penalty. Imprisonment is prescribed only when one fails to pay the penalty.
7 QUANTUM OF PENALTY. The monetary penalty payable under FERA, was nearly the five times the amount involved. Under FEMA the quantum of penalty has been considerably decreased to three times the amount involved.
8 APPEAL An appeal against the order of “Adjudicating office”, before ” Foreign Exchange Regulation Appellate Board went before High Court The appellate authority under FEMA is the special Director ( Appeals ) Appeal against the order of Adjudicating Authorities and special Director (appeals) lies before “Appellate Tribunal for Foreign Exchange.” An appeal from an order of Appellate Tribunal would lie to the High Court. (sec 17,18,35)
9 RIGHT OF ASSISTANCE DURING LEGAL PROCEEDINGS. FERA did not contain any express provision on the right of on impleaded person to take legal assistance FEMA expressly recognizes the right of appellant to take assistance of legal practitioner or chartered accountant (32)
10 POWER OF SEARCH AND SEIZE FERA conferred wide powers on a police officer not below the rank of a Deputy Superintendent of Police to make a search The scope and power of search and seizure has been curtailed to a great extent

Withdrawal of Foreign Exchange

Now, the restrictions on withdrawal of Foreign Exchange for the purpose of current Account Transactions, has been removed. However, the Central Government may, in public interest in consultation with the Reserve Bank impose such reasonable restrictions for current account transactions as may be prescribed.

FEMA has also by and large removed the restrictions on transactions in foreign Exchange on account of trade in goods, services except for retaining certain enabling provisions for the Central Government to impose reasonable restriction in public interest.

Conclusion

FEMA does not see the exchange rate flow as an evil Act but works to factor it in to manage the exchange rate process. The goal is to manage the exchange rate more efficiently, rather than retain it. It applies general asset management rules to foreign exchange management and aims to optimize it instead of maximizing it. It promotes a more liberal form of economy.

10/08/2021 0 comment
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Economy

(Best MCQ) NCERT : Class 9 Macro Economics MCQ(New)

by Mr. DJ 24/07/2021
written by Mr. DJ

(MCQ) NCERT : Class 9 Macro Economics MCQ(New)

1. As a result of the Great Depression of 1929, the unemployment rate in USA rose from 3 percent to 25 percent. Unemployment rate is defined as:
a) Ratio of number of people who are not working and looking for jobs to the total population of the country
b) Ratio of number of people who are working to the number of people who are not working and looking for jobs
c) Ratio of number of people who are not working and looking for jobs to the number of people who are working
d) Ratio of the total population of the country to the number of people who are not working
Ans. C

2. Which of the following is/are characteristics of capitalist economy?
1. Private and Public ownership of means of production
2. Production takes place for selling the output in the market
3. There is a sale and purchase of labour services at a price called wage rate
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. C

3. Which among the following is/are an example of investment expenditure?
1. Part of the revenue paid out as rent for the services rendered by land
2. Part of the revenue paid to capital as interest
3. Part of the revenue paid to labourers as wages
4. Part of revenue used to buy new machinery or to build new factories to expand production
Code:
a) 1, 2 and 4 only
b) 3 and 4 only
c) 4 only
d) 1, 2 and 3 only
Ans. C

4. Consider the following statements:
1. Consumption goods or consumer goods does not include services
2. Capital goods are those, that are of durable character and are used in the production processes
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans. B

5. National Income in India measured in terms of
a) Gross National Product
b) Gross Domestic Product
c) Net National Product at Market Price
d) Net National Product at Factor Cost
Ans. D

6. Net National Product at factor cost is calculated by
a) GNP – Depreciation
b) NNP at market price – Indirect taxes
c) NNP at market price – Indirect taxes + Subsidies
d) GNP + Net factor Income from abroad
Ans. C

7. Which of the following is/are not included in the Personal Disposable Income (PI) earned by the households?
1. Undistributed profits
2. Corporate tax
3. Transfer payments by the governments
4. Income Tax
Code:
a) 1, 2 and 4 only
b) 1 and 2 only
c) 2, 3 and 4 only
d) 1, 2, 3 and 4
Ans. A

8. Consider the following statements about real GDP:
1. It is calculated in such a way that the goods and services are evaluated at some constant set of prices
2. It is calculated in such a way that the goods and services are evaluated at current prices
3. An increase in the value of real GDP indicates an increase in the volume of production
4. An increase in the value of real GDP indicates an increase in the prices of goods and services
Which of the statements given above is/are correct?
a) 1 and 3 only
b) 2 and 4 only
c) 1 only
d) 2 only
Ans. A

9. Which of the following statement is NOT correct about Consumer Price Index (CPI)?
a) This is the index of prices of a given basket of commodities bought by the representative consumer
b) This is the index of prices of all the goods and services produced in the country
c) It is calculated in percentage terms
d) It is expressed as the percentage of the prices of commodities in the current year to the prices of commodities in the base year

Ans. B

10. GDP of a country is:
a) Sum total of value of goods and services created within the geographical boundary of a country in a particular year
b) Sum total of value of goods and services created by the nationals of a country within the geographical boundary of a country in a particular year
c) Sum total of value of goods and services created by the nationals of a country within or outside the country in a particular year
d) Sum total of value of goods only created within the geographical boundary of country in a particular year

Ans. A

11. GDP of a country cannot be taken as an index of the Welfare of the people of a country. Why?
1. Rise in the GDP may be concentrated in the hands of very few individuals or firms
2. Many activities in an economy are not evaluated in monetary terms
3. Other externalities which refers to the benefits or harms a firm or an individual causes to another for which they are not paid or penalised
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 3 only
d) 1, 2 and 3
Ans. D

12. Which of the following is/are the functions of Money?
1. It acts as a medium of exchange.
2. It acts as a convenient unit of account.
3. It acts as a store of value for individuals.
Code:
a) 1 only
b) 1 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Ans: D

13. Consider the following statements about bonds:
1. These are papers bearing the promise of a future stream of monetary returns over a certain period of time.
2. Bond papers are issued by Government only
3. These are tradable in the market.
Which of the statements given above is/are correct?
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Ans: B

14. If the supply of money in the economy increases and people purchase bonds with this extra money, what will happen?
1. The bond prices will rise
2. Rate of interest will decline
Code:
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans: C

15. Which of the following statement given below is correct?
a) In India, currency notes and coins are issued by the Reserve Bank of India.
b) Currency notes are issued by Government of India while coins are issued by RBI.
c) Currency notes and coins are issued by Government of India.
d) Currency notes are issued by Reserve Bank of India, while coins are issued by Government of India.
Ans: D

16. Consider the following statements given below:
1. Currency notes and coins do not have intrinsic value like a gold or silver coin.
2. Currency notes and coins are called legal tenders as they cannot be refused by any citizen of the country for settlement of any kind of transaction.
3. Similar to currency notes and coins, cheques drawn on savings or current accounts can never be refused by anyone as a mode of payment.
Which of the statements given above is/are not correct?
a) 1 and 3 only
b) 3 only
c) 1 and 2 only
d) None of the above
Ans: B

17. RBI publishes figures of four alternative measures of money supply, viz. M1, M2, M3 and M4.
M3 is the most commonly used measure of money supply. It consists of:

a) Money held by the public and net demand deposits held by commercial banks.
b) Money held by the public and net demand as well as time deposits held by the commercial banks.
c) Money held by public + Net demand deposits with banks + Savings deposits with Post office
d) Money held by Public + Net time and term deposits with commercial banks + Total deposits with Post Office Savings Organisation.

Ans: B

18. Consider the following statements:
1. The Currency Deposit Ratio is the proportion of the total deposits commercial banks keep as reserves.
2. The Reserve Deposit Ratio is the money held by the public in currency to that they hold in bank deposits.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans: D

19. RBI uses various policy instruments to bring forth a healthy Reserve Deposit Ratio in commercial banks. Consider the following statements in this regard.
1. Cash Reserve Ratio is the fraction of their deposits that banks must keep with RBI.
2. Statutory Liquidity Ratio (SLR) requires the banks to maintain a given fraction of their demand deposits in the form of specified liquid assets.
Which of the statement given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans: A

20. Consider the following statements about Bank Rate and choose the correct ones.
1. The rate at which commercial banks borrow money from RBI when they run short of reserves is called Bank Rate.
2. The rate at which interest is given to the commercial banks on the money they deposit with RBI is called Bank Rate.
3. A high bank rate encourages the commercial banks to maintain a Healthy Reserve Deposit Ratio.
Code:
a) 1 only
b) 1 and 3 only
c) 2 and 3 only
d) 2 only
Ans: B

21. Consider the following statements about the activities of the Commercial Banks and choose the correct ones:
1. The rate of interest offered by the bank to deposit holders is called lending rate
2. The rate at which investors borrow money from commercial banks is called borrowing rate
3. The difference between the above two rates is called ‘spread’, which is the profit appropriated by banks
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 3 only
d) 1, 2 and 3
Ans. C

22. The total liability of the monetary authority of the country, RBI, is called the monetary base or high powered money. It consists of:
1. Currency notes and coins in circulation with the public
2. Vault cash of commercial banks
3. Deposits held by Government of India and Commercial banks with RBI
Code:
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. D

23. Consider the following statements:
1. RBI is known as the lender of last resort
2. RBI acts as a banker to the commercial banks, Government of India and also to the State Governments
3. Financing of budget deficits by the governments through Central Bank Borrowing is called Deficit Financing
Which of the statements given above is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. D

24. Open Market Operations (OMO) are done by RBI to:
1. Increase or decrease the money supply in the economy
2. Raise money for the Government from the market
3. To rein in the depreciation in the value of domestic currency
Code:
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. A

25. The government affects the personal disposable income of households by making transfer payments and collecting taxes and therefore, can alter the income distribution. This function of government is termed as:
a) Allocation function
b) Stabilisation
c) Distribution function
d) Sterilisation
Ans. C

26. Which of the following taxes appropriated by Government of India are termed as ‘Paper taxes’?
1. Wealth tax
2. Gift tax
3. Corporate tax
4. Custom duty
5. Excise duty
Code:
a) 1, 3 and 5 only
b) 1 and 2 only
c) 2 only
d) 1, 2, 4 and 5 only
Ans. B

27. Which of the following is/are included in the non-tax revenue of the central government.
1. Dividends
2. Profits on investment made by the government
3. Fees and other receipts for services rendered by the government
4. Cash grants-in-aid from foreign countries and international organisations
Code:
a) 1 only
b) 1, 2 and 3 only
c) 2, 3 and 4 only
d) 1, 2, 3 and 4
Ans. D

28. Consider the following statement about the Revenue Expenditure and choose the correct ones:
1. It is the expenditure incurred for purposes of creation of physical or financial assets of the Central Government
2. It includes the expenses incurred for the normal functioning of the government departments and various services, interest payments and grants given to state governments and other parties
Code:
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans. B

29. Service Tax in India was introduced in the year
a) 1994-95
b) 1995-96
c) 1998-99
d) 1999-2000
Ans. A

30. Budget documents classify total expenditure into plan and non-plan expenditure. Which of the following come under non-plan expenditure?
1. Interest payments
2. Defence services
3. Subsidies
4. Salaries and pensions
Code:
a) 1, 3 and 4 only
b) 1 and 3 only
c) 1, 2 and 3 only
d) 1, 2, 3 and 4
Ans. D

31. Consider the following statements and choose the correct ones:
1. All those receipts of the government which result in creation of physical or financial assets or reduction in financial liabilities are called Capital Receipts
2. Those expenditures of the government which create liability or reduce financial assets are termed as Capital Expenditure
3. Capital expenditure is also categorised as plan and non-plan in the budget documents
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 3 only
d) 1, 2 and 3
Ans. C

32. When a government spends more than it collects by way of revenue, it incurs a budget deficit. Consider the following statements in this regard:
1. Fiscal deficit is the difference between the government’s total expenditure and its total receipts including borrowing
2. The revenue deficit includes only such transactions that affect the current income and expenditure of the government
3. Primary deficit is calculated by reducing Net interest liabilities from Gross fiscal deficit

Which of the statement given above is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. C

33. Which of the following were the main features of FRBM Act, 2003
1. To reduce the fiscal deficit to not more than 3 percent of GDP
2. To reduce the revenue deficit to zero by March 2009
3. It required the reduction in fiscal deficit by 0.3 percent of GDP each year and the revenue deficit by 0.5 per cent
Code:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Ans. D

34. Consider the following statements and choose the correct ones:
1. The balance of payments (BoP) record the transactions in goods, services and assets between residents of a country with the rest of the world in a year
2. The current account records the import and exports of goods only
3. Trade in services is denoted as invisible trade
Code:
a) 1 only
b) 1 and 2 only
c) 1 and 3 only
d) 1, 2 and 3
Ans. C

35. Consider the following statements:
1. Nominal Effective Exchange Rate (NEER) is a multilateral rate representing the price of a representative basket of foreign currencies, each weighted by its importance to the domestic country in international trade
2. Nominal Exchange rate is often taken as a measure of a country’s international competitiveness
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Ans. A

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Macro Economics MCQ
EconomicsEconomyMBA Corner

( Best 200+ ) Macro Economics MCQ

by Mr. DJ 19/07/2021
written by Mr. DJ

Macro Economics MCQ

Macro Economics MCQ Meaning :- Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.

Macro Economics MCQ

1. The first National Income calculation on a scientific basis in India is in the year
A. 1947-48

B. 1951-52

C. 1931-32

D. 1990-91

Answer:- c

2. NNP means
A) GDP – depreciation

B. GDP + depreciation

C. NNP – depreciation

D. GNP – depreciation

Answer:- d

3. “Rest of the world” is the major element in
A. Two sector model

B. Three sector model

C. Four sector model

D. All the above

Answer .c

4. Cotton yarns purchased by handloom worker is
A. An intermediate good

B. A consumer good

C. A capital good

D. None of these

Answer:a

5. “ Inflation is always and everywhere a monetary phenomenon” these are the famous words of Milton Friedman B. Adam Smith C. David Ricardo  D. J M Keynes When the rise prices is very slow like that of a snail is called
A. Hyper inflation

B. Running inflation

C. Creeping inflation

D. Walking inflation

Answer:a

6.The concept of “ laissez-faire” was the contribution of
A. Classical economist

B. Neo Classical economist

C. Keynesian economist

D. Supply side economist

Answer:c

7.“ Supply creates its own demand” is the idea of
A. JB Say

B. Samuelson

C) JM Keynes

D) Milton Friedman

Answer:a

8.Which of the following is not an assumption of classical theory
A Neutrality of money

B Wage price flexibility

C. Involuntary unemployment

D. Long run

Answer:a

10. Defects in SNA include
A. Neglects depletion of natural capital

B. Neglects environmental pollution

C. Expenditure to defend the effects of pollution

D. All of the above

Answer:d

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Pollution Control Boards and Control Pollution Acts in India MCQ
Economy

( Best ) Pollution Control Boards and Control Pollution Acts in India MCQ

by Mr. DJ 17/07/2021
written by Mr. DJ

Pollution Control Boards and Control Pollution Acts in India MCQ

Pollution Control Boards and Control Pollution Acts in India

Pollution Control Boards and Control Pollution Acts in India MCQ

1. When did the Central Pollution Control Board established?
a) 1970
b) 1972
c) 1974
d) 1976
Answer: c
Clarification: The Central Pollution Control Board of India was established in 1974 under the Water Act. It is a statutory organization which comes under the Ministry of Environment, Forest and Climate Change.

2. Who appoints the chairman of the Central Pollution Control Board?
a) Central Government
b) State Government
c) Governor of the State
d) President of India
Answer: a
Clarification: The Central Pollution Control Board is lead by its chairman, this chairman is appointed by the Central Government. The current acting chairman is Shri S. P. Singh Parihar. This entire board comes under Central Government.

3. Which one of the following is the apex organization in the country in the field of pollution control?
a) Water Pollution Control Board
b) State Pollution Control Board
c) Central Pollution Control Board
d) Air pollution Control Board
Answer: c
Clarification: The Central Pollution Control Board is the apex organization in the country in the field of pollution control. It is a technical wing of Ministry of Environment and Forest. It comes under Government of India.

4. How many officials can be nominated to the Central Pollution Control Board by the Central Government?
a) Five
b) Ten
c) Twenty
d) Twenty Five
Answer: a
Clarification: According to Section-3, the Central Pollution Control Board can have maximum five officials nominated by the Central Government and not more than five persons nominated by the Central Government from amongst the members of State Boards.

5. In State Pollution Control Boards, how many constitutions of committees can constitute?
a) One
b) Ten
c) Not constitute any committees
d) As many committees as necessary
Answer: d
Clarification: According to the constitution of committees, The State Pollution Control Board can constitute as many committees as necessary. The member of a committee shall be paid fees and allowances.

6. The Central Pollution Control Board plays an important role in abatement and control of pollution in the country.
a) True
b) False
Answer: a
Clarification: The Central Pollution Control Board plays an important role in abatement and control of pollution in the country by providing scientific information, generating relevant data, training and development of manpower, etc.

7. Where is the head office of the Central Pollution Control Board?
a) Mumbai
b) Raipur
c) Mysore
d) New Delhi
Answer: d
Clarification: The head office of the Central Pollution Control Board located in New Delhi. It consists of seven zonal offices and five laboratories. Here the board conducts environmental assessments and research.

8. Who decides the term of the Member Secretary in the Central Pollution Control Board?
a) Chairman of the Central Pollution Control Board
b) President of India
c) Prime Minister of India
d) Government of India
Answer: d
Clarification: Government of India decides the terms and services condition of the Member Secretary and also for the chairman of the Central Pollution Control Board. Rest of the members shall hold office for a term of three years.

9. What is the full form of NAMP?
a) National Air Quality Monitoring Program
b) National Air Quality Measuring Program
c) National Air Quantity Monitoring Program
d) National Air Quality Monitoring Protocol
Answer: a
Clarification: NAMP stand for National Air Quality Monitoring Program. The Central Pollution Control Board runs nationwide programs of ambient air quality monitoring which is known as National Air Quality Monitoring Program.

10. When did the Karnataka State Pollution Control Board for Prevention and Control of Water Pollution constituted?
a) 1974
b) 1978
c) 1982
d) 1985
Answer: a
Clarification: The Karnataka State Pollution Control Board for Prevention and Control of Water Pollution was constituted in 1974 by the Government of Karnataka in pursuance of the Water Prevention and Control Pollution Act, 1974.

11. In how many tier programs the inland water quality monitoring network is operating?
a) One
b) Two
c) Three
d) Four
Answer: c
Clarification: The inland water quality monitoring network is operating under a three tier program. The three tier programs are Global Environment Monitoring System, Monitoring of India National Aquatic Resources System and Yamuna Action Plan.

12. When did the National Green Tribunal Act constituted?
a) 2000
b) 2005
c) 2010
d) 2015
Answer: c
Clarification: The National Green Tribunal Act was constituted in 2010. It has been enacted with the objectives to provide for the establishment of a National Green Tribunal for the effective disposal of cases relating to environmental protection.

13. Which is the first country to pass the amendment in the parliament to safeguard the environment?
a) Brazil
b) Denmark
c) China
d) India
Answer: d
Clarification: In 1976, the Indian parliament passed the 42nd amendment to its constitution for safeguarding the environment. Thus India became the first country in the world to pass the amendment to safeguard the environment.

14. There are various pollution regulations are there.
a) True
b) False
Answer: a
Clarification: Various pollution regulations are, a) The Water Act, 1974, b) The Water Cess Act, 1974, c) The Air Act, 1981, d) The Environmental Protection Act, 1986, e) Hazardous Waste Rules, 1989, f) The Public Liability Insurance Act, 1991.

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