Econ 50 Questions PDF

Q.1:- ………is the total value of a country’s final output of all new goods and services produced during the year: A)Gross national product B)National Income C)Gross national Income D)Gross domestic product Correct Option: B Q.2:- Which of the following statement is true? A)Personal income refer...

Q.1:- ………is the total value of a country’s final output of all new goods and services produced during the year: A)Gross national product B)National Income C)Gross national Income D)Gross domestic product Correct Option: B Q.2:- Which of the following statement is true? A)Personal income refers to the income of individuals of a country. B)The income at their disposal after paying direct taxes is called disposable income C)Both (a) and (b) D)None of the above Correct Option: C Q.3:- Which sector has the maximum share in National Income in India? Local Sector Public Sector Private Sector None of the above Correct Option: A Q.4:- Which of the following is not required while calculating Gross National Product (GNP)? Per Capital Income of Citizens Private Investments Net Foreign Investments Purchase of Goods and Services Correct Option: A Q.5:- Which of the following is associated with the term deflation in economy? Decrease in the supply of coins and currency notes Decrease in the money relating to the supply of goods and services Decrease in the supply of goods and services Decrease in the import of goods and services Correct Option: B Q.6:- The national output is measured at: Market Prices Wholesale Prices Cost Prices Production Prices Correct Option: A Q.7:- Most important source of capital formation in India has been: Public sector savings Household savings Government revenue surpluses Corporate savings Check Answer: B Q.8:- Which of the following actions taken by a RBI is expansionary? Decrease its policy rate Increasing its policy rate Increasing the reserve requirement The purchase of government bonds Correct Option: C Q.9:- The difference between total expenditure and total receipts except loans and other liabilities is called…… Revenue deficit Primary deficit Fiscal deficit Budget deficit Correct Option: C Q.10:- Who is responsible for presenting the Union Budget before the Parliament? Prime Minister RBI Governor Finance Minister None of the above Correct Option: C Q.11:- During depression and unemployment which type of budget is recommended? Balanced Budget Surplus Budget Deficit Budget Unbalanced budget Correct Option: C Q.12:- Inflation relates to which of the following? price level falls - money value falls price level rises - money value rises Price level rises - money value falls price level falls - money value rises Correct Option: C Q.13:- When deficit financing increases, what actions will RBI take on CRR and SLR? Decrease It No Change Increase It None of these Correct Option: C Q.14:- The market in which loans of money can be obtained is called: Exchange market Institutional market Reserve market Money market Correct Option: D Q.15:- Which of the following statements correctly define the meaning of reverse repo rate? The rate at which the apex bank RBI borrows money from commercial banks The rate at which apex bank RBI allows finance to commercial banks The rate at which apex bank RBI lends money to commercial banks The amount of funds that the commercial banks have to keep with the RBI Correct Option: A Q.16:- Which of the following best describes the goal of Monetary Policy? Stopping inflation Controlling the money supply Controlling taxes Controlling the national debt Correct Option: B Q.17:- Open market operations: Is an activity by the bank to purchase its own equity? is an activity by corporates to raise equity. Is an activity by a Central bank to give (or take) liquidity in its currency to (or from) a bank or group of banks Is an activity by central government to raise tax? Correct Option: C Q.18:- The trough of a business cycle occurs when ________hits its lowest point: The money supply Inflation Aggregate economic activity The unemployment rate Correct Option: B Q.19:- The period of the business cycle in which real GDP is Increasing is called the: Recession Expansion Stagflation Peak Correct Option: B Q.20:- During business cycles the opposite of a trough is: A Peak A hyperinflation A trend An inflation Correct Option: A Q.21:- What is the business cycle? Is the artificial fall and rise of the economic growth that occurs over time Is the business rise and fall of the economic growth that occurs over time Is the natural rise and fall of the economic growth that occurs over time Is the natural fall and rise of the economic growth that occurs over time Correct Option: C Q.22:- Which of the following describes the phase of a business cycle that occurs after a trough and before a peak: Lag Expansion Consolidation Contraction Correct Option: B Q.23:- A short-term variation in relation to calendar or time of a day: Random variation Cyclical Seasonal Trend Correct Option: C Q.24:- Which among the following is a qualitative tool of monetary policy? Credit Rationing Cash Reserve Ratio Credit Ceiling Bank Rate Correct Option: A Q.25:- In a free economy, inequalities of income is due to: Private property and inheritance Free Competition Differences in the marginal productivity of labour. Private Property Only Correct Option: A Q.26:- What action should Government take on its overall expenditure to check inflationary forces? a. No change in Expenditure b. Reduce Expenditure c. Increase Expenditure d. None of these Correct Option: D Q.27:- A country’s gross domestic product can be calculated using the following formula: a. GDP = C + G + I - NX. b. GDP=C+G-I+NX. c. GDP=C+G+I+NX. d. GDP=C-G+I+NX. Correct Option: C Q.28:- Indian Economy is an example of: a. Closed Economy b. Mixed Economy c. Capitalist economy d. None of the above Correct Option: B Q.29:- Most pertinent problem while computing National Income is: a. Non-monetized Consumption b. Inflation c. Low Savings d. Under Employment Correct Option: A Q.30:- if an, economy is in equilibrium at the point where plans to save and to invest are equal, then Government expenditure must be a. Equal than Government Income b. Zero c. Negative d. Larger than Government Income Correct Option: A Q.31:- If we compare GDP and GNP, then: a. GNP = NNP - net income from abroad b. GNP = GDP - net income from abroad c. GNP = NNP + net income from a broad d. GNP = GDP + net income from abroad Correct Option: D Q.32:- The basis of the fiscal policy is to maintain a balance between: a. Private spending and tax rate b. Private spending and tax rate c. Public Spending and Tax Rates d. Public spending and private spending Correct Option: C Q.33:- The difference between fiscal deficit and interest payment during the year is called: a. Revenue deficit b. Primary deficit c. Fiscal deficit d. Budget deficit Correct Option: B Q.34:- Difference between revenue deficit and grants for creation of capital assets is called: a. Effective revenue deficit b. Budget deficit c. Primary deficit d. Fiscal deficit Correct Option: A Q.35:- As the level of interest rates in the economy falls, the demand for money, ceteris paribus: a. Will remain unchanged b. increase c. Could move in either direction depending on other factors d. Will fall more or less in line with the change in interest rates Correct Option: B Q.36:- The low point in the business cycle is referred to as the: a. Peak b. Trough c. Boom d. Expansion Correct Option: B Q.37:- Which of the following is a reason for inflation? a. Deficit financing b. Growth in per capita income c. Structural deficiencies d. All of the above Correct Option: D Q.38:- Along with Ministry of Finance, which other institution play an important role in monetary policy of India? a. AMFI b. SEBI c. CBI d. RBI Correct Option: D Q.39:- Revenue equals expenditure in a: a. Balanced budget b. Deficit budget c. Surplus budget d. None of the above Correct Option: A Q.40:- The immediate effect of credit-creation by banks is: a. Increase in money supply b. Reduction of poverty  c. Rise in prices d. Increase in real national income Correct Option: A Q.41:- What is the impact ori bank’s profitability when RBI increases CRR and SLR rates? a. Profitability of banks b. No impact on profits of banks c. Reduces profitability of banks d. None of these Correct Option: C Q.42:- If RBI adopts an expansionist open market policy, this means it will: a. Openly announces intention to expand credit b. Offer banks more credit in open market c. Buys securities from non-government holders d. Sell securities in the open market Correct Option: B Q.43:- Which of the following is the objective of Fiscal Policy? a. To maintain and achieve full employment. b. To stabilize the price level. c. To stabilize the growth rate of the economy. d. All of the above Correct Option: D Q.44:- If the economy is in an inflationary period, what action would Fiscal Policy most likely take? a. Increase taxes b. Increase spending c. Decrease the discount rate d. Decrease taxes Correct Option: A Q.45:- Measurement of domestic savings: a. Corporate sector b. Household sector c. Private sector d. All the above Correct Option: B Q.46:- To avoid double counting when GDP is estimated, economists: a. Use retail prices b. Use price of only intermediate goods c. Calculate value added at each stage of production d. Use GDP deflator. Correct Option: C Q.47:- Coincident indicators tend to reach their peaks and troughs at about the same time as: a. Leading indicators b. Real GDP c. Lagging indicators d. The budget deficit Correct Option: B Q.48:- Which of the following is the basis of determining the National Income? a. Production of Goods and Services b. Total Revenue of the State c. Both (a) and (b) d. Net Profit earned and expenditure incurred by the state Correct Option: A Q.49:- State which is not included while computing National Income of India: a. Wages of labour b. Production of raw cotton c. Unemployment allowance d. Income of Yoga Instructor Correct Option: C Q.50:- State the largest contribution in Gross Domestic Savings: a. Government Sector b. Household Sector c. D. Industrial Sector d. Both (a) and (b) Correct Option: B