Economics MCQs

1) Which of the following accounts for Cost-Push Inflation?
(A) Increase in money supply
(B) Increase in indirect taxation
(C) Increase in population
(D) Increase in non-plan expenditure

2) 'Devaluation' means:
(A) Converting rupee into gold
(B) Lowering of the value of one currency in comparison of some foreign currency
(C) Making rupee dearer in comparison to some foreign currency
(D) None of these

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

4) Black money is:
(A) Counterfeit currency
(B) Illegally earned money
(C) Money earned through underhand deals
(D) Income on which payment of tax is usually evaded

5) Devaluation of currency by a country is meant to lead to: 1. Expansion of import trade 2. Promotion of import substitution 3. Expansion of export trade
(A) 1 only
(B) 2 and 3
(C) 1 and 2
(D) 1 and 4

6) Hard Currency is defined as currency:
(A) Which can be hardly be used for international transactions
(B) Which is used in times of war
(C) Which loses its value very fast
(D) Traded in foreign exchange market for which demand is persistently relative to the supply

7) That the World Trade Organization (WTO) is a force or a flop will depend not on its merits or demerits as a viable effective structure but on:
(A) Educating public opinion in member countries
(B) Introduction of the idea of sustainable development in relation to the optimal use of world's resource
(C) Securing a better share of growth in international trade for developing countries
(D) The political will of the member nations

8) Debenture is a:
(A) certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period
(B) certificate for the investment in shares
(C) certificate for the preference share
(D) dividend warrant

9) Which of the following is regarded as a factor of production?
(A) capital
(B) interest
(C) profit
(D) rent

10) Which source of finance cannot be used by a private company?
(A) a bank loan
(B) a bank overdraft
(C) an issue of shares on the Stock Exchange
(D) retained profits


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