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Basic of Economics

Practice MCQs under Basic of Economics. 428 available Open paginated MCQ list →

Questions

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Correct options are highlighted when revealed.

1.What term describes a price that matches the nominal value of a financial instrument?

EquilibratedMarket ValueAt ParNo Correct OptionFace Price

2.What does the term 'Working Capital' signify in a business context?

Resources owned by the company that are used in its daily operationsThe surplus of current assets over current liabilitiesBoth of the above definitionsNeither of the above

3.Which of the following best defines the role of an underwriter?

To accept financial risk on behalf of the grantee in case of defaultTo sign an agreement taking on liability for certain specified lossesTo ensure the sale by agreeing to purchase any remaining shares at a predetermined time and priceAll of the above

4.What is the name of the government borrowing method where a promissory note is issued, promising repayment to the holder after a specified number of days?

DebentureTreasury billFixed-term loanGovernment securitiesCertificate of deposit

5.What does the term 'trade name' refer to?

A name used to distinguish a product or service in the marketThe designation by which a product, service, or process is recognized in commerceThe official name under which a company conducts its businessAll of the above

6.What is the name of a bank deposit that cannot be withdrawn until the predetermined maturity date?

Bond investmentTerm depositTimed depositFixed assetLocked savings

7.What is the name of the tax imposed by the government on goods that are imported or exported?

Customs dutyExcise taxTariffShipping chargeValue-added tax

8.Which economic theory emphasizes boosting production by lowering taxes?

Classical liberalismMarket-driven economicsSupply-side economicsRegulated market systemKeynesian economics

9.A subsidy is defined as financial aid provided by the government to an individual or group to support an activity considered beneficial to the public. Which of the following best represents an example of a subsidy?

Monetary support offered by a government or individual to another partyFunds given specifically to economically disadvantaged individualsFinancial help provided to elderly citizensCapital assistance granted to small-scale businesses

10.What is the term for participating in a high-risk venture with the goal of earning substantial profits quickly?

OptimismGambling blindlySpeculationRisk mitigationSafe investment

11.What best describes the social security program offered by the government?

Financial support given through social securityMonetary aid for individuals experiencing unemployment, disability, or old age, funded by contributions from both employers and employeesBoth A and BNeither A nor B

12.What is the term for a nation's stock of officially approved payment instruments?

AssetsReservesForeign exchangeWealthCapital

13.How is the exchange rate defined?

The ability to purchase foreign currencyPossession of foreign moneyThe proportion at which one nation's currency unit is traded for another nation's currency unitNone of the above

14.Which entities are included within the public sector?

Government-owned corporationsLocal and central government bodiesIndustries that have been nationalizedAll of the above

15.What term describes the practice of shielding local manufacturers by restricting or controlling the entry of imported foreign products and services?

DomesticationProtectionismLocalizationNational interest

16.What do you call a written commitment to repay a certain amount of money either on demand or at a specified date?

Promissory NoteNote of HandEither of the aboveNeither of these

17.What does the term 'price support' refer to?

Artificially raising the priceSustaining prices via government aid or public subsidiesBoosting the price valueKeeping the price fixed at a certain point

18.Which of the following best describes the concept of price fixing?

Illegal pact among producers to establish and uphold a fixed price for usually rival productsGovernment-imposed artificial pricing of goodsBoth of the aboveNeither of the above

19.What defines a planned economic system?

An economy where economists oversee production activitiesA system where the government manages the production and allocation of resourcesAn economy controlled by technical experts in production decisionsA system where the government regulates the distribution of goods

20.What term describes the principle of equal trading opportunities without granting exclusive privileges or monopolies to any single nation?

Open door marketOpen door countryOpen sky marketFree economy

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