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Basic of Economics – MCQs
428 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
What is the term for the part of a company's earnings distributed to its common and preferred shareholders?
Total Revenue
Earnings Distribution
Dividend
Rights Issue
Capital Gain
2.
What term describes a market condition where the quantity supplied exceeds the demand?
Contracted market
Depressed market
Downtrend market
Sluggish market
Oversupplied market
3.
Which statistical measure is applied to adjust current currency values for changes in purchasing power due to inflation?
Deflector
Purchasing power parity
Inflator
Deflation
4.
What term describes the situation when a borrower does not pay interest or principal on a debt security on time or violates the terms of the bond agreement?
Extended debt
Non-performing loan
Debt restructuring
Default
Delinquency
5.
What does the term 'Debt retirement' specifically mean?
Canceling the debt completely
Adjusting the debt payment schedule
Paying off debt through small, manageable payments
Fully settling the entire debt amount
6.
Which type of debt instrument is supported solely by the borrower's creditworthiness without any collateral?
Debenture
Investment securities
Credit score
Not applicable
7.
What term describes the assessment of a person’s or organization's capacity to meet financial commitments or the chance of default?
Trustworthiness
Credit risk
Creditworthiness
Credit score
Financial reliability
8.
What term describes the impact that changes in a nation's economy have on the results of an international financial deal?
Global economic uncertainty
Country economic risk
Cross-border economic hazard
Transaction outcome risk
International market volatility
9.
Which type of accounting delivers data to assist company management in assessing production expenses and operational efficiency?
Performance Accounting
Cost Accounting
International Economic Risk
Result Risk
Financial Reporting
10.
What term describes the interest calculated on both the initial principal and the interest accumulated from previous periods?
Total interest
Simple interest
Gross interest
Compound interest
Accrued interest
11.
What does a common market agreement between multiple countries allow?
Unrestricted movement of financial assets and workforce
Unhindered exchange of products and services
Both unrestricted movement of capital and labor, and free trade of goods and services
Neither of these
12.
Which market is primarily used for buying and selling long-term debt securities?
Equity market
Secondary market
Capital market
Global market
Commodity market
13.
What term describes a market characterized by rising prices over a period of time?
Bull market
Beamish market
Ascending market
Active market
14.
What term is used for a check that a bank refuses to honor due to insufficient funds in the account?
Bounce
Return
Grossed
Refused
15.
What are the regulations and guidelines that control the operation of an organization known as?
Internal regulations
Bylaws
Personality traits
Articles of association
Constitution
16.
In the equity market, what term describes a company with two segments that might separate into two distinct entities, granting existing shareholders two new shares for each share they previously owned?
Data Matrix
Fragment
Corporate Expansion
Butterfly
Dual Split
17.
In the realm of common stocks, what does the term 'blue chip company' signify?
An international corporation
A well-established and financially reliable firm
A diversified business group
An alliance of multiple companies
18.
What term describes the highest price a buyer is prepared to pay for a security?
Asking price
Bid price
Quoted price
Current market value
Sale price
19.
What term describes an international trade strategy where a country deliberately devalues its currency and raises trade barriers to benefit itself at the cost of other nations?
Policy based on nationalism
Internal economic policy
Trade protection strategy
Beggar-thy-neighbor policy
Free trade approach
20.
Which term describes an online approach focused on transactions between businesses instead of individual consumers?
Business-to-Business (B2B)
Indirect interaction
Gradual process
Downward flow
None of the above
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