Basic concepts of economics mcqs for test preparation of Economics subject test, Courses and Jobs test.
Basic Concepts of Economics MCQs
What is called the difference in the money value between exports and imports during the specific period of time ?
A. Balance of payment
B. Balance sheet
C. Terms of trade
D. Balance of trade
How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?
A. Bankruptcy
B. Default
C. Total loss
D. Crash
What is called the trade of goods or services without the exchange of money ?
A. Free exchange
B. Liberal Exchange
C. Barter
D. Bilateral Trade
A stock that sells at a high price because of public confidence in its long record of steady earnings is called ?
A. Blue chip
B. Blue Chipper
C. An extremely valuable asset or property
D. All of these
Which term is used for an addition to normal payment by a company or extra payment of gratuity to workers ?
A. Bonus
B. Overtime
C. Prize
D. Gift
How is termed the balance of investment and return; in which investment and return are exactly equal ?
A. Break even
B. Breakeven point
C. Both of them
D. None of them
Term the body of goods and monies from which future income can be derived ?
A. Net assets
B. Solid asset
C. Holdings
D. Capital
Which term is used for a bank account which can be operated at will ?
A. Saving Account
B. Fixed account
C. Current account
D. Fluctuated account
Depression is a drastic decline in a national or international economy. It’s characteristic is ______?
A. Decreasing business activity
B. Falling prices
C. Unemployment
D. All of these
What does mean by Deed _____?
A. legal instrument used to grand a right
B. Something done
C. legal instrument
D. none of the above
What is called a country’s total financial obligations to the rest of the world ?
A. Total dept
B. Debt burden
C. National liabilities
D. External debt
An act of altering of a written or printed document with intentions of deceiving anyone is called________?
A. Fraud
B. Cheating
C. Forgery
D. Fraudulent
The amount that is paid for carriage of goods by chips, railways, airways etc is called ?
A. Hire and Fire
B. Rent
C. Transportation Changes
D. Freight
What is called a group of countries that have removed all tariffs, quotas, and export subsidies on trade among themselves ?
A. Close-trade zone
B. Free trade zone
C. Both of them
D. None of them
Termed the written statement which expresses the intention of undersigned to enter into a formal agreement ?
A. Letter of intent
B. Letter of Credit
C. Letter of Expression
D. Papers of Landing
LIFO (last in, first out) means ?
A. to make queue
B. items are removed in inverse order
C. turn by turn
D. make space for new production
Name the company in which the liability of the shareholders is limited to the amount of their shares ?
A. Limited company
B. Incorporation
C. Cooperative
D. Corporation
The system under which a country’s currency is exchangeable for a fixed weight of gold on demand at central bank is called ?
A. God standard system
B. Gold based system
C. Bullion standard system
D. None of the above
By Which scale the value of all economic activity produced by a nation during a given period is measured ?
A. Gross Domestic Product (GOP)
B. Gross National output (GNO)
C. Gross National Product (GNP)
D. Gross National output
What is referred by interest ?
A. Payment made for the use of another person’s money
B. payment made for the use of bank’s money
C. Share in profit
D. Devaluation in the currency
Termed the written statement which expresses the intention of undersigned to enter into a formal agreement ?
A. Letter of intent
B. Letter of Credit
C. Letter of Expression
D. Papers of Landing
Name the company in which the liability of the shareholders is limited to the amount of their shares ?
A. Limited company
B. Incorporation
C. Cooperative
D. Corporation
The term Mark-up refers to _______?
A. Rise in the price of an item for sale
B. An amount added to cost price in calculating selling price
C. Both of them
D. All of them
Term the exclusive right of one or more persons to carry on some branch of trade of manufacture It is a sole power of dealing in something ?
A. Encroachment
B. Monotony
C. Unipolarity
D. Monopoly
What is mortgage ____?
A. Conveyance of property as security for debt
B. Conveyance of company security for debt
C. Guarantee for debt
D. Assurance of debt repayment
What is called the result of a state’s borrowing from its population, from foreign governments or from international institutions ?
A. National debt
B. Public debt
C. Both of them
D. None of them
What is called the amount of non-military foreign aid which a country received ?
A. Grands
B. Official Development Assistance (ODA)
C. Foreign aid
D. Friendly aid
Which term is used for the value imprinted on a security ?
A. Real value
B. Net value
C. Par value
D. Gross value
Which term is used for the period of competition in which each competitor tries to cut retail prices below the others ?
A. Price competition
B. Price support
C. Price war
D. Price battle
The term prospectus refers to ______?
A. Formal summary of proposed project
B. Document describing chief features
C. Both of them
D. None of them
How is termed the ability to buy?
A. Purchasing power
B. Income level
C. Gross purchasing power
D. Purchasing power parities (PPP)
A payment is made in return for some transference of privilege. What this payment is called ?
A. Royalty
B. Rent
C. Share
D. Intellectual royalty
A share or an interest in an enterprise, especially a financial share, is called ?
A. Share holding
B. Stake
C. Partnership
D. None of these
Which of the following is referred by the phrase trade balance ?
A. Income from export
B. Difference between imports and exports
C. Income from imports
D. All of them
The mark is imposed on goods or wrappers to show that the articles bearing this mark belong to a particular trader. What is this mark called ?
A. Insignia
B. Patent mark
C. Trade Mark
D. Identification mark
Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ?
A. Value addition
B. Excise
C. Value added
D. Tax on stage
What is artificial currency ?
A. A currency substitutes
B. Coins
C. De-valued currency
D. Silver
What is called the price that a potential buyer is willing to pay for a security ?
A. Bid
B. Offer price
C. Quote price
D. None of these
Which of the following are bonds that are not registered on the books of the issuer ?
A. Open bond
B. Blank bond
C. Term bond
D. Bearer bond
Shareholders of a corporation elect individuals to carry out certain tasks that are establishment in the charter. What these individuals are called ?
A. Management
B. Board of Governor
C. Top brass
D. Board of Directors
Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ?
A. Short-positioning
B. Buyback
C. Drawback
D. None of them
Name the price at which the issuer of a bond may retire part of the pond at a specified call date ?
A. Call price
B. Bid price
C. Term Price
D. Future Price
The French term Bourse refers to _______?
A. A big company
B. Stock market
C. Joint-stock
D. A multinational company
From the sale of capital assets tax is levied on profits. What this tax is called ?
A. Profit tax
B. Capital gains tax
C. Excise duty
D. Capital tax
Which of the following is Price of the last transaction of a particular stock completed during a day’s trading session on an exchange ?
A. Night Price
B. Closing Price
C. End price
D. Final price
What is called that executive who is brought in to turn a company around and make it profitable ?
A. Savior
B. Company doctor
C. Super manager
D. Manager doctor
Term a film that is engaged in two or more unrelated businesses ?
A. Conglomerate
B. Multinational
C. giant
D. Incorporation
What is referred a group of companies that cooperate and share resources in order to achieve a common objective ?
A. Consortium
B. Pool
C. Incorporation
D. Conglomerate
What is called interest payments plus repayments of principal to creditors ?
A. Debt retirement
B. Debt relief
C. Debt service
D. Payback
What is called when government spending overwhelms government revenue resulting in government borrowing ?
A. Budget deficit
B. Deficient financing
C. Unbalanced spending
D. Deficit spending
Term a tax or duty rebate on imported goods that are exported at a later date ?
A. Duty
B. Custom
C. Rebut
D. Drawback
What is called degree of buyer’s responsiveness to price changes ?
A. Production & Supply
B. Demand push Supply
C. Demand & Supply
D. Demand pull supply
Investment funds are established for the supports of institutions such as hospitals investment is called ?
A. Charity funds
B. Attached funds
C. Endowment funds
D. Investment fund
A firm owns long-lived property that is used by a firm in the Production of its income. What this property is called ?
A. Unmovable asset
B. Fixed property
C. Production line
D. Fixed asset
What is called a country’s decision to allow its currency value to change freely?
A. Pegged exchange rate
B. Floating exchange rate
C. Liberal exchanged rate
D. Open exchange rate
Mention a mutual fund that is invested primarily in stocks with a history of and future potential for capital gains ?
A. Common fund
B. Stock fund
C. Growth fund
D. Capital growth fund
A company’s first sale of stock to the public is called ?
A. Public Offering
B. First Public Offering
C. Initial Public Offering (IPO)
D. Going Public
A seller of goods or services writes a bill that is submitted to a purchaser for payment. What this bill is called?
A. Demand draft
B. Draft
C. Invoice
D. Bill of Intent
In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?
A. kickback
B. Commission
C. Bribe
D. Graft
Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities are known as ______?
A. Liquid asset
B. Solid asset
C. Hard asset
D. None of these
Name a gold, silver, or platinum coin than usually traded at slightly more than its current bullion value ?
A. Hard Leaf
B. Maple Leaf
C. Green Leaf
D. Gold Leaf
Possibility of negative events or changes in the business climate of country is called?
A. Domestic risk
B. Political risk
C. National risk
D. Country risk
A piece of land and whatever physical property is on it is called?
A. Solid asset
B. Unmovable property
C. Real estate
D. Property
What is called bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts?
A. Liquidator
B. Solicitor
C. Receiver
D. Agen
Name the money of county that is expected to drop in value relative to other currencies?
A. Local currency
B. Cold currency
C. Lime currency
D. Soft currency
Which of the following is called a wholly or partially owned company what is the part of the large corporation?
A. Baby company
B. Child company
C. Small holding
D. Subsidiary
What is write-Off?
A. Charging an asset amount to expense of loss
B. To forget
C. To withdraw
D. None of these
What is measured by Gross domestic product (GDP)?
A. Value of all economic activity within nation’s border
B. Economic output of a country
C. Economic activity of government
D. None of these
Which country is the chief exporter Aluminum?
A. USA
B. Britain
C. France
D. Germany
Barter is the trade of goods or services with ?
A. free exchange of money
B. exchange of services
C. exchange of goods and services
D. None of them
Goods and monies from which future income can be derived is called ?
A. Net assets
B. Assets
C. Holdings
D. Capital
Crop grown for sale is called?
A. Business Crop
B. Cash crop
C. Money Crop
D. Earning Crop
What are called goods that satisfy human wants through their direct use ?
A. cash goods
B. consumer items
C. consumer goods
D. cash items
Term the sole legal right to print or publish anything that belongs to the author ?
A. property right
B. Sole right
C. Copyright
D. rights
What is Debt Service ?
A. Interest payments on external debts
B. repayments of external debt
C. none of these
D. Both of them
What is called the reduction in the rate of a currency
A. Devolution
B. Devaluation
C. Price cap
D. Cut-rate
Which kind of Tax is Federal subject ?
A. Excise Tax
B. Property Tax
C. Zakat
D. General Sales Tax
Downsizing is ?
A. to make in a smaller size
B. to make in actual size
C. To make in half size
D. None of these
Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?
A. Embargo
B. Contraband
C. Ban
D. Restriction
Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?
A. Floor price
B. Fixed price
C. Bid Price
D. Basic Price
Group of Singapore, Hong, Kong, Taiwan, and south Korea is called?
A. Four Dragons
B. Little Tigers
C. Four Tigers
D. All of these
What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?
A. Open trade
B. Free trade
C. Open sky trade
D. Easy trade
Term the group of countries that have removed all restrictions on trade among themselves?
A. Close-Trade zone
B. Free-trade zone
C. Both of them
D. None of them
Market in which forces of demand and supply are not in the control of government is called ?
A. Market Economy
B. Free Market
C. Both of them
D. None of them
In Planned economy’ Production and distribution of Wealth is under control of ___?
A. Private sector
B. Government
C. Bank
D. None of the above
What is called protection of domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest
What is Remittance ______?
A. Sending of money to someone at distance
B. The sum of money sent
C. Both of them
D. None of them
Economic system in which the government owns and controls the means of production to benefit all the people is called ?
A. Dictatorship
B. Socialism
C. Capitalism
D. Authoritarianism
What is Tariff ?
A. tax that government levy on imports
B. tax that government levy on exports
C. Both of them
D. None of them
Term the rules and particles that govern the management of an organization ?
A. Internal laws
B. By laws
C. Character
D. Memorandum of articles
What is Debt retirement _____?
A. To write off debt
B. To reschedule debt
C. To repay debt in easy installments
D. The complete repayment of debt
What is called a Tax on imports, exports ?
A. Drawback
B. Duty
C. Custom
D. Excise
What do you understand by Laissez faire ?
A. Active intervention
B. Sound commercial affairs
C. Interference by the state in law and order
D. None of these
Which is the oldest stock exchange of the world ?
A. New York stock exchange
B. Tokyo stock exchange
C. London stock exchange
D. None of them
Inflation means ?
A. Rise in budget deficit
B. Rise in money supply
C. Rise in general price index
D. Reflection
The term ‘real wage’ means the money wage” ?
A. after tax
B. allowing for change in prices.
C. Plus, benefits in kind
D. plus, overtime payments.
Which measures. taken by a government would be intended to raise the price of imports ?
A. Embargoes
B. Foreign exchange controls
C. Quotas
D. Tariffs
An essential attribute of inflation is ?
A. Fall in production
B. Increase in prices
C. Stagflation
D. None of these
A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
A. Inflation
B. Hyper-inflation
C. Deflation
D. Disinflation
Monetary policy is regulated by ?
A. Money lenders
B. Central Bank
C. Private entrepreneurs
D. Government policy
Who among the following is most benefited from inflation ?
A. Government pensioners
B. Creditors
C. Savings Bank Account holders
D. Debtors
Which economics term describes the takeover of one textile manufactures by another ?
A. Diversification
B. horizontal integration
C. monopoly
D. vertical integration
Which is the best measure of economic growth of a country ?
A. GNP
B. GDP
C. Net revenue
D. None of the above
Which of the following payment instruments introduced by the banks is known as plastic money ?
A. Bearer cheques
B. Credit Cards
C. Demand Drafts
D. Gift Cheques
Which of the following is not rated by credit rating agencies ?
A. Shares
B. Debentures and bonds
C. Commercial paper
D. Government securities
The smallest unit of ownership of a company is ________?
A. A share
B. A debenture
C. Invest
D. Capital
Debenture holders of a company are its ______?
A. Shareholders
B. Creditors
C. Debtors
D. Directors
Rate of growth of an economy is measured in terms of ____?
A. Per capita income
B. Industrial development
C. Number of people who have been lifted above the poverty line
D. National income
Which of the following is not required while computing Gross National Product (GNP) ?
A. Net foreign investment
B. Private investment
C. Per capita income of citizens
D. None of the above
Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?
A. a fall in living standards
B. a more youthful population
C. an ageing population
D. an increase in population
What can a government do to increase demand in its economy ?
A. Budget for a surplus
B. Cut taxes
C. Encourage savings
D. Reduce its expenditure
GNP includes ?
A. A loan from a bank
B. A loan from one’s parents
C. Gifts and donations
D. A broker’s commission
Market value of all final goods and services produced in a country during a year is definition of ?
A. NI
B. NNP
C. GNP
D. Consumption
Which of the following would increase national income ?
A. Increase in taxation
B. Increase in savings
C. Increase in govt spending
D. Decrease in consumption spending
Which is most likely to cause a more even distribution of income ?
A. An increase in indirect taxes
B. An increase in managers salaries
C. An increase in progressive taxation
D. An increase in the rate of inflation
The sum of total income received for the services of labor, land or capital in a country is called?
A. Gross domestic product
B. National income
C. Gross domestic income
D. Gross national income
‘Forex’ stands for ?
A. For examine
B. Foreign exchange
C. Foreign exports
D. None of these
Pakistan follows the policy of ________?
A. Fixed exchange rate
B. Flexible exchange rate
C. controlled exchange rate
D. Increasing exchange rate
What could a government do to correct the current account deficit ?
A. Reduce the deficit on the balance of trade
B. Reduce the repayment of loans
C. Reduce the surplus on the capital account
D. Reduce the volume of exports
When stock market is falling it is ______?
A. Bearish
B. Bullish
C. Crash
D. Fall down
The govt. can control inflation by ______?
A. Increasing demand for goods
B. Increasing supply of goods
C. Increasing money supply
D. Decreasing taxes
Which property the paper money does not process ?
A. Acceptability
B. Divisibility
C. Durability
D. Portability
Trade between two countries can be useful if cost ratios of goods are ?
A. Equal
B. Different
C. Undetermined
D. Decreasing
Which of the following would cause income to become more unequal ?
A. Increased employment
B. Increased unemployment allowance
C. More progressive taxes
D. More regressive taxes
When banks prepare their balance sheets. They show the money lent in ?
A. Liability
B. Assets
C. Both assets and liabilities
D. None
Which of the following is not an instrument of monetary policy ?
A. Taxation
B. Bank rate
C. Open-market operations
D. Credit rationing
In which capacity does a person stand to gain from deflation ?
A. As a pensioner
B. As a debtor
C. As an entrepreneur
D. As an equity-holder
Which is the most widely used tool of monetary policy ?
A. Clearing house
B. Open-market operations
C. Discount rate
D. Issuing of notes
Central bank’s rate of lending to commercial banks is called ?
A. Interest rate
B. Discount rate
C. Money rate
D. Control rate
Open market Operation is ?
A. Buying and selling bills of exchange
B. Buying and Selling govt. securities
C. Buying and selling shares of companies
D. Buying and selling foreign exchanges
Theory of comparative advantages was presented by ?
A. Adam Smith
B. Ricardo
C. Hicks
D. Barron
The branch banking system is in vogue in most countries of the world. In which country was it first developed?
A. South Africa
B. UK
C. Canada
D. Australia
If GNP of Pakistan rises. it will encourage ?
A. Exports
B. Imports
C. Both
D. None
Which of the following must always balance ?
A. Balance of visible trade
B. Balance of invisible trade
C. Balance on the current account
D. Balance of payments
Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ?
A. Less than one
B. Greater than one
C. Equal to one
D. Zero
What term is given to unemployment caused by a downturn in the business cycle ?
A. Underemployment
B. Disguised unemployment
C. Temporary unemployment
D. Cyclical unemployment
Which of the following terms refers to income that is saved and not invested ?
A. Capital
B. Deposit
C. Hoarding
D. Profit
Development means economics growth plus ?
A. Inflation
B. Deflation
C. Social change
D. Price stability
Government policy about exports and imports is called ?
A. Monetary policy
B. Fiscal policy
C. Commercial policy
D. Finance policy
Bearer cheque is ?
A. Payable to anyone
B. payable to person holding it
C. payable through account only
D. payable after specific period
Term the written order which directs that a specified sum of money be paid to a specified person ?
A. Bill of Exchange BE
B. Bill of Lading
C. Bearer Cheque
D. None of them
Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?
A. Certificates
B. Sureties
C. Security bonds
D. Bond
The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ?
A. Open value
B. Book value
C. Real value
D. Artificial value
The intermediary agent in the purchase and sale of any good is known as ?
A. Dealer
B. Broker
C. Agent
D. Commission agent
What is called the rules of laws which governs the internal affairs of an organization ?
A. Corporate Laws
B. Secondary Laws
C. By laws
D. Internal Laws
A long-term asset, such as land or building is termed as ?
A. capital asset
B. solid asset
C. solid capital
D. Future asset
What is called the crop which is grown for sale rather than the farmer’s own use ?
A. Business Crop
B. Cash crop
C. Money Crop
D. Earning Crop
Which of the following is the Pakistan’s central bank ?
A. State Bank
B. National Bank
C. Both of them
D. None of them
A borrower gives to creditor a security to grantee repayment of a loan. What is this security called ?
A. Pledge
B. Assurance
C. Collateral
D. Guaranty
How I measured the change in the cost of basic goods and services in comparison with a fixed base period ?
A. Human Development Index (HDI)
B. Consumer Price Index (CPI)
C. Complete Price Index (CPI)
D. Comparative Price Index (CPI)
The sole legal right to print or publish anything which belongs to the author or his assignees is called ?
A. Property right
B. Sole right
C. Copyright
D. Right
Amount of money needed to purchase the goods and services required to maintain a certain standard of living called ?
A. Cost of living
B. Basic requirement
C. Cost of life
D. None of the above
Interest payments and any principal repayments which are due on a country’s external debt are known as ?
A. Debt Payment
B. Service Charges
C. Debt Charges
D. Debt service
What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
A. Demand push
B. Demand pulls
C. Cost pull
D. Demand supply
Mention the term for an official act of reducing the rate in which one currency is exchanged for another in international currency markets ?
A. Devolution
B. Devaluation
C. Price cap
D. Cut-rate
Which term is used for fine that is payable for failing to clear goods from a storehouse with in a specific period of time ?
A. Demurrage
B. Penalty
C. Charges
D. Fine
Term the shared of profits of a joint stock company ?
A. Share
B. Profit-share
C. Dividend
D. Margin
Name the scale for measuring the average share price and percentage change of 30 major US industrial companies ?
A. Nikki Index
B. NASDAQ
C. Dow Jones Index
D. Major Index
An organization plans the use of its fund during a 12-month period. What is this period called ?
A. Fiscal period
B. Calendar year
C. Year unit
D. Fiscal year (FY)
Mention the penalty by which a person loses title of his property, that is a result of some illegal act ?
A. Confiscation
B. Bankruptcy
C. Forfeiture
D. Debenture
Which of the following is known as foreign exchange ?
A. Transaction of International monetary business
B. Negotiable bills drawn in one country to be paid in another country
C. Both of them
D. None of them
How is termed the group which consists of Singapore, Hong kong, Taiwan, and south Korea ?
A. Four Dragons
B. Little Tigers
C. Four Tigers
D. All of these
Term the interchange of commodities across political frontiers without restriction such as tariffs, quotas, or foreign exchange controls ?
A. Open trade
B. Free trade
C. Open sky trade
D. Easy trade
There are certain products which are sold without brand name or trademark What these products are called ?
A. Generic
B. Forged goods
C. Contraband
D. Clean goods
Unlike a black market, what is called a system of secretly selling or trading commodities which is not necessarily illegal ?
A. Grey market
B. White market
C. Red market
D. Open market
Because of the decrease in the value of money, there comes exaggerated increase in incomes and prices. How is termed this system ?
A. Hyperinflation
B. Ultra-inflation
C. A cute inflation
D. Super inflation
Inflation is ?
A. Increase in the amount of circulating money
B. Lowering of purchasing power
C. Decrease in the amount of circulation money
D. None of the above
Total number of adults currently employed or actively seeking work in all economic sectors is known as ?
A. Labor force
B. Labor potential
C. Work force
D. All of them
Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?
A. letter of Credit
B. Letter of expression
C. Demand draft
D. Letter of intent
What is referred by the by economic theory “Liberalism” ?
A. The free market
B. Gold standard
C. Laissez faire
D. All of these
What is called the overall study of aspects and working of a national economy ?
A. Macroeconomics
B. Gross economics
C. Mega economics
D. Micro economics
What is called the market in which forces of demand and supply are not in the control of government ?
A. Market Economy
B. Free Market
C. Both of them
D. None of them
Monoculture is ?
A. Farming practice of growing a single crop
B. Homogeneous Nations
C. Homogeneous market
D. Homogeneous business
A company or corporation which was subsidiaries, investments or operation in more than one country is known as ?
A. Multinational corporation
B. Multinational company
C. Both of them
D. None of them
Which term is used for the total net value of all goods and services produced in a country in specified period of time ?
A. National income
B. Public income
C. Local income
D. Gross income
How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?
A. Open door market
B. Open door country
C. Open sky market
D. Free economy
How is termed a written promise to pay back a specified sum of money at a stated time or on demand ?
A. Promissory Note (PN)
B. Note of hand
C. Both of them
D. None of them
What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest
What is comprised by public sector ?
A. Public corporations
B. Central and local government.
C. Nationalized industries
D. All of them
Which term is used for a country’s holdings of intentionally acceptable means of payment ?
A. Holdings
B. Reserves
C. Foreign currency
D. Treasure
Which term is used for an engagement in risky business with the idea of making a large profit in short time ?
A. Idealism
B. Blind game
C. Speculation
D. Risk covering
Which theory of economic management focuses on encouraging product through tax reduction ?
A. Liberalism
B. Free market economics
C. Supply-side economics
D. Supervised market
Government levy tax on imports and exports What this tax is called ?
A. Custom
B. Exercise Duty
C. Tariff
D. Freight
A bank deposit, that cannot be withdrawn before the date which is specified at the time of deposit, is called
A. Bond deposit
B. term deposit
C. time deposit
D. Fixed investment
What is referred by the Working capital ?
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
Which of the following is a price that is equal to the face value of a security?
A. Balanced
B. At Equilibrium
C. At Par
D. None of them
What is called an internet strategy of dealing directly with business rather than consumer ?
A. B2B
B. Indirect contact
C. Step by step
D. Trickle down
Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?
A. Nationalist policy
B. Domestic policy
C. Protectionist policy
D. Beggar-thy-beighbour
Quoted bid or highest price on inventor in willing to pay to buy a security is called ?
A. Offer price
B. Bid price
C. Quote price
D. Market price
Blue chip company is used in the context of general equities. What does it refer ?
A. A multinational company
B. Large and creditworthy company
C. A conglomerate company
D. A consortium of companies
In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?
A. Spreadsheet
B. Splinter
C. Family growth
D. Butterfly
Rules and Particles that govern the management of an organization are called ?
A. Internal laws
B. By laws
C. Character
D. Memorandum of articles
What is called a check that is returned by a bank because it is not payable, usually because of insufficient funds ?
A. Bounce
B. Return
C. Grossed
D. Refused
A market in which prices are in an upward trend is known as ?
A. Bull market
B. Beamish market
C. Upward market
D. Hot market
Mention the market for trading long-term debt instruments ?
A. Stock market
B. Open market
C. Capital market
D. International market
Common market is an agreement between two or more countries. What this agreement permits ?
A. Free movement of capital and labor
B. Free movement of goods and services
C. Both of them
D. None of them
What is called interest that is paid previously earned interest as well as on the principal ?
A. Gross interest
B. Simple interest
C. Total interest
D. Compound interest
Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?
A. Efficient Account
B. Cost Accounting
C. Ultra-country economic risk
D. Outcome risk
Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?
A. International economic risk
B. Country economic risk
C. Ultra-country economic risk
D. Outcome risk
An evaluation of an individual’s or company’s ability to obligations or its likelihood of not defaulting is known as ?
A. Credibility
B. Credit risk
C. Credit credibility
D. Credit rating
What is called that debt obligation backed strictly by the borrower’s integrity ?
A. Debenture
B. Securities
C. Credit rating
D. None of them
What is called that market in which supply overwhelms demand ?
A. Deflated market
B. Depressed market
C. Bearish market
D. Weak market
Portion of a company’s profit paid to common and preferred shareholders is called ?
A. Gross Profit
B. Profit share
C. Dividend
D. Right share
A tax on imports exports, or consumption goods is called ?
A. Drawback
B. Duty
C. Custom
D. Excise
What is called that company which make loans to individuals, while not receiving deposits like a bank ?
A. Cooperative company
B. Finance corporation
C. Limited company
D. Finance company
Which exchange rate system is characterized by the absence of government intervention ?
A. Free float
B. Clean float
C. Both of them
D. None of them
What is called when a private company first offers shares to the public market and investors ?
A. Public offering
B. Public floating
C. going public
D. Coming public
What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?
A. Bonus
B. Up level
C. Goodwill
D. Upgradation
Which money is called Hot money ?
A. That moves across country borders
B. That moves away when the interest rate differential
C. Both of them
D. None of them
Who is insolvent _____?
A. A firm that is unable to pay debts
B. A firm that is liquidated
C. A firm that is for sale
D. A firm that has more liabilities than assets
Which form of business organization falls between a corporation and partnership ?
A. joint company
B. Joint stock company
C. Limited joint company
D. Limited Company
What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?
A. Solvency
B. Crash
C. Bankruptcy
D. Liquidation
Percentage of total industry sales that a particular company controls is called ?
A. Lion’s share
B. Market share
C. Net share
D. Holding share
Where ‘Nikkei Stock average’ applies ?
A. Mainly to Korean equities
B. Mainly to international equities
C. Mainly to Japanese equities
D. Mainly to US equities
Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ?
A. Oligopoly
B. Grey market
C. Oligopsony
D. Green market
P2P is business slang. What does it refer ?
A. To start-ups or internet start-up
B. Path to profitability
C. Both of them
D. None of them
Term the authorization whether written or electronic, that shareholders’ votes may be cast by others ?
A. Proxy vote
B. Absentia vote
C. Remote vote
D. Casting vote
what is called an evaluation of credit quality of a company’s debt issued by Moody’s S&P and Fitch investors services ?
A. Credit worthiness
B. Credit Worth
C. Credit line
D. Ratings
Interest that is calculated as a simple percentage of the original principal amount is called ?
A. Market interest
B. Easy interest
C. Compound interest
D. Simple interest
What is called an additional levy added to some charge ?
A. Fine
B. Surcharge
C. Additional Charged
D. Extra charges
What is called the difference in the value of a nation’s imports over exports or exports over imports ?
A. Trade deficit
B. Trade simples
C. Both a & b
D. Not a nor b
Pick out the generic term for the securities industry firms that buy sell and underwrite securities ?
A. Wall street
B. NASDAQ
C. Nikkei index
D. Yahoo index
Which of the following is not an indirect tax ?
A. Income tax
B. Sales tax
C. Custom duty
D. Tariff
USA is the chief exporter of ?
A. Coal
B. Copper
C. Cotton
D. All of these
South Africa is the chief exporter of ?
A. Coffee
B. Copper
C. Diamond
D. Gold
Which country is the chief exporter of jute ?
A. Bangladesh
B. India
C. Both of them
D. None of them
India is the chief exporter of ?
A. Mica
B. Rubber
C. Silver
D. Gold
Malaysia is the chief exporter of ?
A. Jute
B. Diamond
C. Tin
D. Rubber
What is called the situation in which a debtor remains unable to pay his creditors in full ?
A. Bankruptcy
B. Default
C. Total loss
D. Crash
What is called the stock that sells at a high price ?
A. Blue chip
B. Blue Chipper
C. An extremely valuable asset or property
D. All of these
Capital Flight from a country is called ?
A. removal of individual and corporate investment
B. removal of capital drain
C. removal of income
D. All of these
Central bank of Pakistan is _____?
A. State Bank
B. National Bank
C. Both of them
D. None of them
Who is called Father of Economics ?
A. Adam smith
B. David Ricardo
C. David smith
D. Adam Ricardo
Name the organization that is managed by those who use its facilities ?
A. Limited Company
B. Society
C. Corporation
D. Cooperative
What is called amount of money to purchase the goods and services to maintain life ?
A. Cost living
B. Basic requirement
C. Cost of life
D. None of these
Reduction in the circulation of money resulting from fall of prices is known as ?
A. deflation
B. inflation
C. cost effective
D. cost
Scale for measuring the average share price and percentage change of 30 major US industrial companies is called ?
A. Nikki Index
B. NASDAQ
C. Dow Jones Index
D. Major Index
Depression is a drastic decline in a national of international economy It’s characteristic is ?
A. Decreasing business activity
B. Falling prices
C. Unemployment
D. All of these
Gross Domestic Product (GDP) is __?
A. Value of all economic activity with in a nation’s border
B. Economics output of a country
C. Economic activities of federal government
D. None of these
What is the period called 12-months plan of a country to use its funds ?
A. Fiscal period
B. Calendar year
C. Year unit
D. Fiscal year (FY)
What is called a country’s total financial obligations to the rest of the world ?
A. Total debt
B. Debt burden
C. National liabilities
D. External debt
What is Free port ?
A. Where no export duties are levied
B. Where no import duties are levied
C. Where no export or import duties are levied
D. Where everything can be import or export
What is inflation ?
A. Increase in the amount of circulating money
B. Lowering of purchasing power
C. Decrease in the amount of circulation money
D. None of these
Governmental non-interference in commerce is called ?
A. Free market economy
B. Laissez faire also Laisser faire
C. Open market economy
D. Liberal market economy
What is National debt or public debt ?
A. State’s borrowing from its population
B. State’s borrowing from foreign government
C. state’s borrowing from international institution
D. All of these
Term the minimum income level below which a person is considered to be living in poverty ?
A. Poverty level
B. Poverty line
C. Both of them
D. None of them
What is public sector ?
A. Public corporations
B. Central and local government
C. Nationalized Industries
D. All of them
What is called the tax that is levied on retail price of merchandise collected by retailer ?
A. Sales Tax
B. General Tax
C. Local Tax
D. Gross Tax
Currency that is expected to drop in value relative to other currencies is called ?
A. Local currency
B. Cold currency
C. Lime currency
D. Soft currency
Term the average income of the people of a country during a year ?
A. National income
B. Domestic income
C. Protection Income
D. Per capita Income
Term the central market for buying and selling all kind of securities ?
A. A big company
B. Stock Exchange
C. Joint stock
D. A multinational company
Deregulation is the reduction of government’s role in ?
A. Controlling Banks
B. Controlling cooperation
C. Controlling markets
D. None of them
Large payment to senior employee who is forced into retirement is called ?
A. Golden bonus
B. Golden shake hand
C. Friendly handshake
D. Golden handshake
When the stock market is down falling it is called ?
A. Bullish
B. Bearish
C. Falling
D. Crashing
The situation with increasing unemployment and inflation is terms as ?
A. Hyperinflation
B. Reflection
C. Stagflation
D. Galloping
Which of the following is regarded as a factor of production ?
A. Capital
B. Interest
C. Profit
D. None of these
Which type of income is earned only the actor of production enterprise ?
A. interest
B. Profit
C. rent
D. wages
Which of the following must always balance ?
A. The balance of visible trade
B. The balance of invisible trade
C. The balance on the current account
D. The balance of payments
Which of the following can be used for check inflation temporarily ?
A. increase in wages
B. Decrease in money supply
C. Decrease in tax
D. None of these
The period of high inflation and low economic growth is termed as ?
A. Stagnation
B. Take-off stage in economy
C. Stagflation
D. None of these
With whom would you associate the following quote” The business of business is business” ?
A. Milton Friedman
B. Adam smith
C. Alfred Marshal
D. Karl Marx
Which of the following groups suffer the most from inflation ?
A. Debtors
B. Creditors
C. Business class
D. None of these
Which of the following is an example of government policy that could reduce inflation ?
A. increasing bank lending
B. increasing import duties
C. reducing government expenditure
D. None of these
What can a central bank increase in order to reduce consumer borrowing ?
A. commercial bank deposits
B. government bank deposits
C. government spending
D. interest rates
E. None of these
The most industrialized country in Asia is ?
A. Japan
B. South Korea
C. Taiwan
D. Malaysia
If saving exceeds investment the national income will ?
A. Fall
B. Rise
C. Fluctuate
D. Remain constant
Devaluation of currency helps to promote ?
A. National income
B. Saving
C. Imports at lower cost
D. Exports
Which company holds the world record for having the maximum number of shareholders ?
A. Reliance Industries Ltd.
B. British Gas
C. General Motors
D. State Bank
Who is a “Lame Duck” in a stock market ?
A. A new investor
B. A old investor
C. A member of the stock exchange who cannot meet his obligations
D. None of the above
A tax which is paid by the person on whom the tax is incident is called a ?
A. Local tax
B. Indirect tax
C. Direct tax
D. Rate
The standard of living in a country is represented by its ?
A. National income
B. Per capita income
C. Poverty ratio
D. None of these
Transfer payments means ?
A. Bank loans
B. The payment without work
C. Tax payments
D. Payments made to all factors of production
We measure national income by this method ?
A. Expenditure method
B. Income method
C. Product method
D. All of the above
Which of the following is a withdraw from the circular flow income stream ?
A. Investment
B. Subsidies
C. Taxation
D. Consumption
Economic development ?
A. Is the same as economic growth
B. Means improvement in lifestyle
C. Exists when there is equal distribution of income
D. All of the above
Gross National income is always more than Net National income because it includes ?
A. Foreign income
B. Capital consumption allowance
C. Indirect taxes
D. Direct taxes
According to the law of demand. When ?
A. Price increase demand decreases
B. Price decreases demand decreases
C. Price increased demand increases
D. None of these
When the stock market is rising it is ?
A. Bearish
B. Bullish
C. Hottest
D. Rising up
Economic development is measured on the basis of ?
A. Increase in nominal GNP
B. Increase in real GNP
C. Increase in personal income
D. Increase in government revenue
Pakistan’s fiscal years starts from?
A. 1st September
B. 1st January
C. 1st April
D. 1st July
The power of a bank to create credit is affected by ?
A. The cash reserve requirement
B. The amount of cash available
C. The number of branches of a bank
D. A and B of above
The Liquidity Trap condition occurs at a _____?
A. Low rate of interest
B. Very low rate of interest
C. High rate of interest
D. Very high rate of interest
When a commercial bank creates credit its immediate effect is that it raises ____?
A. The exchange rates
B. The interest rates
C. The money supplies
D. The real national income
Treasury bill is used for ______?
A. Getting short term loans
B. Getting long term loans
C. Treasury bill in not credit instrument
D. Treasury bill is a govt. tax bill
The bank established for loans to very small enterprises in Pakistan is called ______?
A. Micro Finance Bank
B. Moderba Bank
C. SME- Bank
D. First MINI Bank
Which of the following is not a function of a commercial bank?
A. Accepting public deposits
B. Granting loan and advances
C. Undertaking agency functions
D. Banker to the government
Balance of payments of a country includes ?
A. Balance of trade
B. Capital receipts and payments
C. Savings and investment account
D. A and B of above
Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?
A. Frankfurt
B. Bonn
C. Berlin
D. Stuttgart
Commercial policy means ____?
A. Policy about markets
B. Policy about money supply
C. Policy about imports and exports
D. Policy of controlling of prices of goods
Oil is measured in barrels. What is the abbreviation for barrels _____?
A. Brl
B. Bel
C. Bbl
D. Obl
Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?
A. Gold currency
B. Hard currency
C. Silver currency
D. Soft currency
From each according to his ability to each according to his need is the theoretical slogan of ?
A. Feudal System
B. Capitalist System
C. Fascist System
D. Communist System
Which of the following is a valid currency ____?
A. Promissory note
B. Currency note
C. Exchange rate
D. Bank cheque
Two countries can gain from foreign trade if ?
A. Cost ratios are different
B. Tariff rates are different
C. Price ratios are different
D. A and C of above
What is deflation ______?
A. Deficit Budget
B. Reduction in taxation
C. Increase in public expenditure
D. Reverse of inflation
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