Economics Page-3

21) "Portfolio management" means an effort to:
(A) Minimize tax liability
(B) Maximize yield with safety of financial investments
(C) Raise loans in accordance with needs of the borrowing company
(D) Raising loans at least possible interest cost

22) Which of the following pairs of commodities is an example of substitute goods?
(A) Pen and Ink
(B) Left shoe and right shoe
(C) Mustard oil and Coconut oil
(D) Gold and Water

23) Which one of the following could best be regarded as an 'entrepreneur'?
(A) A bank manager
(B) A football club manager
(C) A sales girl in a dress shop
(D) A grain merchant

24) The price system ensures:
(A) Efficiency in production
(B) Equity in distribution
(C) Allocation of goods to those who can pay for it
(D) Optimum utilization of resources

25) Fiscal deficit can be defined as:
(A) Total revenue receipts plus capital receipts (only recoveries of loans and other receipts) minus total expenditure (plan and non-plan)
(B) Total receipt minus total expenditure
(C) Total revenue receipt plus total capital receipts minus total expenditure
(D) Total revenue receipts plus total capital receipts minus total revenue expenditure

26) Saving is a function of:
(A) Income
(B) Improvement in productivity
(C) Investment
(D) Export

27) Bank Rate means:
(A) The official rate of interest charged by the Central Bank of a country
(B) Interest rate charged by money lenders
(C) Interest rate charged by the Scheduled Banks
(D) Rate of profit of the Banking Institutions

28) Division of labor is promoted by:
(A) Extended market
(B) Limited market
(C) Perfect market
(D) Price discrimination

29) Deficit financing is spending:
(A) By borrowing from abroad
(B) In excess of revenue
(C) Less than what is needed
(D) By getting foreign aid

30) Monetary policy is regulated by:
(A) Government policy
(B) Central Bank
(C) Money lenders
(D) Private entrepreneurs

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