Bihar Board 12th Business Economics Objective Important Questions Part 5
Bihar Board 12th Business Economics Objective Important Questions Part 5
Question 1.
Trade balance means:
(a) Capital transaction
(b) Import and export of goods
(c) Total debit and credit
(d) All the above
Answer:
(b) Import and export of goods
Question 2.
Which one is the visible item of Balance of payment?
(a) Machine
(b) Cloth
(c) Cement
(d) All the above
Answer:
(d) All the above
Question 3.
Which one is the invisible item of Balance of payment?
(a) Banking
(b) Shipping
(c) Communication
(d) All the above
Answer:
(d) All the above
Question 4.
The reason of imbalance in Balance of payment is:
(a) Natural reasons
(b) Economic reasons
(c) Political reasons
(d) All the above
Answer:
(d) All the above
Question 5.
Which one is a kind of exchange rate?
(a) Fixed Exchange Rate
(b) Flexible Exchange Rate
(c) Both (a) and (b)
(d) None of these
Answer:
(d) None of these
Question 6.
Foreign Exchange Rate is determined by:
(a) Government
(b) Bargaining
(c) World Bank
(d) Demand and supply forces
Answer:
(b) Bargaining
Question 7.
Which method Central Bank adopts for controlling quantity of credit?
(a) Bank rate
(b) Open market operation
(c) Change in cash reserve ratio
(d) All the above
Answer:
(d) All the above
Question 8.
Which is a component of Budget?
(a) Budget Receipts
(b) Budget Expenditure
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)
Question 9.
Which is a component of Budget receipt?
(a) Revenue receipt
(b) Capital receipt
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)
Question 10.
Tax revenue of the govt. includes:
(a) Income tax
(b) Carporate tax
(c) Excise duty
(d) All the above
Answer:
(d) All the above
Question 11.
Which of the following is included in fiscal policy?
(a) Public Expenditure
(b) Tax
(c) Publifc Debenture
(d) All the above
Answer:
(d) All the above
Question 12.
Inflationary gap is a measure of:
(a) Excess demand
(b) Excess supply
(c) Short demand
(d) None of these
Answer:
(a) Excess demand
Question 13.
Which one is a feature of monopolistic competition?
(a) Differentiated product
(b) Selling cost
(c) Imperfect knowledge of the market
(d) All of these
Answer:
(d) All of these
Question 14.
Which is a reason of change in demand?
(a) Change in consumer’s Income
(b) Change in price of related goods
(c) population increase
(d) All of these
Answer:
(d) All of these
Question 15.
Net National Income at factor cost is called
(a) National Income
(b) Gross Investment
(c) Income
(d) None of these
Answer:
(c) Income
Question 16.
Depreciation expenses are included in
(a) GNPMP
(b) NNPMP
(c) NNPPC
(d) None of these
Answer:
(a) GNPMP
Question 17.
Which method is adopted in measuring National Income
(a) Production method
(b) Income Method
(c) Expenditure Method
(d) All of these
Answer:
(d) All of these
Question 18.
“Money is what money does” who said it?
(a) Howtrey
(b) Keynes
(c) Hartley Withers
(d) All of these
Answer:
(d) All of these
Question 19.
Which is the primary function of commercial banks?
(a) Accepting deposits
(b) Advancing loans
(c) Credit Creation
(d) All of these
Answer:
(d) All of these
Question 20.
The full form of ATM is
(a) Any Time Money
(b) All Time money
(c) Automated Teller Machine
(d) (a) and (b) both
Answer:
(c) Automated Teller Machine
Question 21.
Reserve Bank of India was established in
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer:
(b) 1935
Question 22.
How many types of elasticity of demand in there?
(a) Three
(b) Five
(c) Six
(d) Seven
Answer:
(b) Five
Question 23.
Which money is issued by central bank?
(a) Currency
(b) Credit money
(c) Coins
(d) All of these
Answer:
(a) Currency
Question 24.
Banking Sector Reforms in India began in
(a) 1969
(b) 1981
(c) 1991
(d) 2001
Answer:
(b) 1981
Question 25.
Which is included in indirect Tax?
(a) Income tax
(b) Wealth tax
(c) Excise duty
(d) Gift tax
Answer:
(d) Gift tax
Question 26.
The Great Depression came in which year?
(a) 1949
(b) 1939
(c) 1929
(d) 1919
Answer:
(c) 1929
Question 27.
Macro economics sees an economy as a combination sectors?
(a) Family
(b) Firm
(c) Government and external sector
(d) All of the above
Answer:
(d) All of the above
Question 28.
GNPMP = ?
(a) GDPMP – Depreciation
(b) GDPMP + net factor income from abroad
(c) Both of the above
(d) None of the above
Answer:
(b) GDPMP + net factor income from abroad
Question 29.
Which is the correct sequence of money’s development?
(a) Commodity money, Paper money, Metal money
(b) Commodity money, Metal money, Paper money
(c) Credit money, Metal money, Paper money
(d) None of the above
Answer:
(b) Commodity money, Metal money, Paper money
Question 30.
Reserve Bank of India has presented four measures of money supply, namely M1, M2, M3 and M4, M1 includes
(a) C = currency held by public
(b) DD = net demand deposit of the bank
(c) OD = other deposits held with the RBI
(d) All of the above
Answer:
(a) C = currency held by public
Question 31.
Which is common man’s bank?
(a) Commercial Bank
(b) Central Bank
(c) (a) and (b) both
(d) None of the above
Answer:
(a) Commercial Bank
Question 32.
Credit multiplier is
(a)
(b)
(c) Cash × CRR
(d) None of the above
Answer:
(a)
Question 33.
Which of the following is Central Bank’s function?
(a) Right of issuing notes
(b) Government’s banker
(c) Custodian of Foreign Exchange Reserves
(d) All of the above
Answer:
(d) All of the above
Question 34.
Which currency is issued by Central Bank of the country?
(a) Money in circulation
(b) Credit money
(c) Coins
(d) All of the above
Answer:
(a) Money in circulation
Question 35.
It is an open economy which are the components of Aggregate Demand?
(a) Consumption
(b) Investment
(c) Consumption + government expenditure
(d) Consumption + Investment + Govt. expenditure + Net export
Answer:
(d) Consumption + Investment + Govt. expenditure + Net export
Question 36.
APC + APS =
(a) 0
(b) 1
(c) infinity
(d) None of the above
Answer:
(b) 1
Question 37.
What are the reasons of excess demand?
(a) Increase in public expenditure
(b) Increase in money supply
(c) Decrease in taxes
(d) All of the above
Answer:
(d) All of the above
Question 38.
Indian’s financial year is
(a) 1st April to 31st March
(b) 1st January to 31st March
(c) 1st July to 30th June
(d) None of the above
Answer:
(a) 1st April to 31st March
Question 39.
In direct taxes which one of the following is included?
(a) Income Tax
(b) Gift Tax
(c) (a) and (b) both
(d) None of the above
Answer:
(c) (a) and (b) both
Question 40.
In India who issues one rupee note?
(a) Reserve Bank of India
(b) Finance Ministry of Govt. of India
(c) State Bank of India
(d) None of the above
Answer:
(b) Finance Ministry of Govt. of India
Question 41.
Capital Budget includes
(a) Revenue receipts and revenue expenditure
(b) Capital receipts and capital expenditure
(c) Direct and Indirect taxes
(d) None of the above
Answer:
(b) Capital receipts and capital expenditure
Question 42.
Primary deficit is
(a) Fiscal Deficit – Interest Payment
(b) Fiscal Deficit + Interest Payment
(c) (a) and (b) both
(d) None of the above
Answer:
(b) Fiscal Deficit + Interest Payment
Question 43.
Budgets are of the following types
(a) Balance Budget
(b) Surplus budget
(c) Deficit Budget
(d) All of the above
Answer:
(d) All of the above
Question 44.
Exchange rate is of the following types
(a) Fixed exchange rate
(b) Flexible exchange rate
(c) (a) and (b) both
(d) None of the above
Answer:
(c) (a) and (b) both
Question 45.
During Bretton Woods System most countries had
(a) Fixed Exchange Rate
(b) Pegged Exchange rate
(c) (a) and (b) both
(d) None of the above
Answer:
(a) Fixed Exchange Rate
Question 46.
Fixed exchange rate has following merits
(a) Promotes Capital movements
(b) Prevents capital outflow
(c) Presents speculation
(d) All the above
Answer:
(d) All the above
Question 47.
Bretton Woods Conference of 1944 established
(a) International Monetary Fund
(b) World bank
(c) (a) and (b) both
(d) None of the above
Answer:
(a) International Monetary Fund
Question 48.
Demerits of flexible exchange rate are
(a) Instability and uncertainty
(b) Encourages speculation
(c) Discourage international trade and investment
(d) All of the above
Answer:
(d) All of the above
Question 49.
Balance of Trade = ?
(a) Export of visible items – Import of visible item
(b) Export is visible and invisible items – Import of visible and invisible items
(c) Import of visible items – Export of visible items.
(d) None of these
Answer:
(a) Export of visible items – Import of visible item
Question 50.
Components of Balance of Payments is
(a) Current Account
(b) Capital Account
(c) (a) and (b) both
(d) None of the above
Answer:
(c) (a) and (b) both