MCQOPTIONS
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MCQOPTIONS
This section includes 452 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Which of the following is not a union tax? |
| A. | Taxes on railway freights and fares |
| B. | Stamp duties on financial documents |
| C. | Tolls |
| D. | A and b only |
| Answer» D. A and b only | |
| 52. |
Which one of the following economists introduced the principle of “Maximum Social Advantage”? |
| A. | Alfred Marshall |
| B. | John Maynard Keynes |
| C. | Karl Marx |
| D. | Hugh Dalton |
| Answer» E. | |
| 53. |
In the equation PY = MV showing quantity theory of money. Y represents: |
| A. | Year of measurement of national income |
| B. | National income |
| C. | Tax revenue of the govt |
| D. | (a) and (c) of above |
| Answer» C. Tax revenue of the govt | |
| 54. |
Which is NOT a desirable characteristic of money? |
| A. | Portable |
| B. | Uniform |
| C. | Easily recognized |
| D. | Easily duplicated |
| Answer» E. | |
| 55. |
It implements monetary policy of the country: |
| A. | Central bank |
| B. | Commercial banks |
| C. | Specialized bank |
| D. | Finance department |
| Answer» B. Commercial banks | |
| 56. |
Quantity Theory of Money explains that: |
| A. | Value of money depends upon quantity of money |
| B. | Rate of interest depends upon quantity of money |
| C. | Quantity of investment depends upon quantity of money |
| D. | Supply of money depends upon quantity of money |
| Answer» B. Rate of interest depends upon quantity of money | |
| 57. |
In the saving function S = -a + 1-b(Y), the term ‘b’ denotes |
| A. | Saving |
| B. | MPC |
| C. | MPS |
| D. | APS |
| Answer» C. MPS | |
| 58. |
A saving account in a bank represents the function of money: |
| A. | A measure of value |
| B. | A medium of exchange |
| C. | A standard for deferred payments |
| D. | Store of value |
| Answer» E. | |
| 59. |
For the economy, prices are beneficial: |
| A. | Falling slowly |
| B. | Rising slowly |
| C. | Rising fast |
| D. | Falling fast |
| Answer» C. Rising fast | |
| 60. |
If quantity of money increases 100%, other things remaining constant, value of money changes by: |
| A. | Increases by 100% |
| B. | Decreases by 100% |
| C. | Decreases by 200% |
| D. | Does not change |
| Answer» C. Decreases by 200% | |
| 61. |
It is included in kinds of money: |
| A. | Legal money |
| B. | Credit money |
| C. | Token money |
| D. | All of the above |
| Answer» E. | |
| 62. |
Which of the following is not true about final goods? |
| A. | Final gods satisfy wants of ultimate consumers and producers. |
| B. | Final goods have direct demand as they satisfy the wants directly. |
| C. | Final goods are subject to further transformation in the process of production. |
| D. | Final goods are neither used up as raw-material nor for resale in the same year. |
| Answer» D. Final goods are neither used up as raw-material nor for resale in the same year. | |
| 63. |
Which does NOT represent a method of payment? |
| A. | Cheque |
| B. | Saving certificate |
| C. | Currency note |
| D. | Bill of exchange |
| Answer» C. Currency note | |
| 64. |
Barter means: |
| A. | Trade through metallic money only |
| B. | Trade of goods only excluding services |
| C. | Trade of very low value goods |
| D. | Trade without use of money |
| Answer» E. | |
| 65. |
Old age pension is “National Old Age Pension Schemes”, “Interest payments”, “Subsidies”, “Unemployment allowances”, “Welfare benefits to weaker sections, etc.” By incurring such expenditure, the government does not get anything in return, but it adds to the welfare of the people, especially belong to the weaker sections of the society. Such expenditure basically results in redistribution of money incomes within the society. |
| A. | Non-Transfer Expenditure |
| B. | Transfer Expenditure or transfer payments |
| C. | Capital Expenditure |
| D. | Non-Distributive Expenditure |
| Answer» C. Capital Expenditure | |
| 66. |
Which of the following statement is INCORRECT with regard to the burden of public debt of a country? |
| A. | If the public debt is taken for productive purposes it will not be a burden on the economy. |
| B. | If the public debt is taken for unproductive purposes, it will impose both money burden and real burden on the economy. |
| C. | In case of Internal Debt, the direct money burden on the economy is huge as transfer of wealth happens within the community |
| D. | In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community |
| Answer» D. In the case of External debt, the amount of repayment of interest and principal represents the direct money burden on the community | |
| 67. |
Government securities: |
| A. | Mean currency |
| B. | Are near money |
| C. | Are bought and sold on stock exchange market |
| D. | (b) and (c) of above |
| Answer» E. | |
| 68. |
Consider the following statements and identify the right ones.i. National income is the monetary value of all final goods and services produced. ii. Depreciation is deducted from gross value to get the net value |
| A. | I only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» D. none | |
| 69. |
which of the following is true for Cross cheque? |
| A. | Is issued only by a business firm |
| B. | Is not accepted by banks |
| C. | Ensures immediate payment of cash to the holder |
| D. | None of the above |
| Answer» E. | |
| 70. |
When value of money falls, they benefit more: |
| A. | Farmers |
| B. | Industrialist |
| C. | Lenders |
| D. | Debtors |
| Answer» E. | |
| 71. |
If money supply in a country decrease: |
| A. | Prices will rise |
| B. | Prices will fall |
| C. | Rate of interest falls |
| D. | (b) and (c) of above |
| Answer» C. Rate of interest falls | |
| 72. |
They are not affected badly by rising prices: |
| A. | Salaried persons |
| B. | Businessmen |
| C. | Debtors |
| D. | Importers |
| Answer» C. Debtors | |
| 73. |
Which property paper money does NOT Possess? |
| A. | Acceptability |
| B. | Divisibility |
| C. | Durability |
| D. | Portability |
| Answer» D. Portability | |
| 74. |
The tax levied by the union government on income of individuals is known as |
| A. | Personal income tax |
| B. | Interest tax |
| C. | Wealth tax |
| D. | Corporation tax |
| Answer» B. Interest tax | |
| 75. |
Expenditure incurred by the Government on building durable assets, like highways, multipurpose dams,irrigation projects are in the nature of |
| A. | Capital Expenditure |
| B. | Revenue Expenditure |
| C. | Transfer Expenditure |
| D. | Unproductive Expenditure |
| Answer» B. Revenue Expenditure | |
| 76. |
Taxes are levied to |
| A. | Provide general benefits to the People |
| B. | Encourage people on unnecessary spending |
| C. | Accumulate funds for the Government for future use |
| D. | All of the above |
| Answer» B. Encourage people on unnecessary spending | |
| 77. |
Maximum Social Advantage is achieved, |
| A. | at the point where the marginal social benefit of public expenditure and the marginal social sacrifice of taxation are equated |
| B. | at the point where the marginal social benefit of public expenditure is higher than the marginal social sacrifice of taxation |
| C. | at the point where the marginal social benefit of public expenditure is lower than the marginal social sacrifice of taxation |
| D. | at the point where the marginal social benefit of public expenditure and the marginal social sacrifice of taxation are zero |
| Answer» B. at the point where the marginal social benefit of public expenditure is higher than the marginal social sacrifice of taxation | |
| 78. |
The tax on net income of companies is |
| A. | Personal income tax |
| B. | Interest tax |
| C. | Wealth tax |
| D. | Corporate tax |
| Answer» E. | |
| 79. |
Statistics such as GDP, the unemployment rate, the rate of inflation and the trade balance are: |
| A. | Macro, since they tell us something about the entire economy |
| B. | Neither macro nor micro, but properly in the realm of political science |
| C. | Both micro and macro |
| D. | Micro, since they affect individual households and firms |
| Answer» B. Neither macro nor micro, but properly in the realm of political science | |
| 80. |
Which of the following describes the situation where revenues and expenditures are equal during a givenperiod? |
| A. | Public Debt |
| B. | Budget Surplus |
| C. | Balanced Budget |
| D. | Budget Deficit |
| Answer» D. Budget Deficit | |
| 81. |
Expenditures incurred on civil administration, defence forces is in the nature of |
| A. | Capital Expenditure |
| B. | Revenue Expenditure |
| C. | Transfer Expenditure |
| D. | Productive Expenditure |
| Answer» C. Transfer Expenditure | |
| 82. |
Business cycles are |
| A. | each unique, but all have a single cause. |
| B. | each unique and they can have many causes. |
| C. | similar, and they all have a single cause. |
| D. | similar, but they can have many causes. |
| Answer» E. | |
| 83. |
Cross cheque means: |
| A. | It has been cancelled |
| B. | Cash cannot be directly drawn from the bank |
| C. | It has two lines drawn in left upper corner |
| D. | (b) and (c) of above |
| Answer» E. | |
| 84. |
This is a characteristic of good money: |
| A. | High intrinsic value |
| B. | Liquidity |
| C. | Attractive design |
| D. | Easy to duplicate |
| Answer» C. Attractive design | |
| 85. |
Speculative demand for money depends upon: |
| A. | Income |
| B. | Investment |
| C. | Rate of interest |
| D. | Central bank |
| Answer» D. Central bank | |
| 86. |
Consider the following statements and identify the right ones.i. While calculating GNP, income generated by foreigners in a country is taken into consideration ii. While calculating GNP, income generated by nationals of a country outside the country is taken into account |
| A. | I only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» C. both | |
| 87. |
The practice by Governments in which a government spends more money than it receives as revenue isreferred to as: |
| A. | Piggy backing |
| B. | Direct Funding |
| C. | Deficit financing |
| D. | Pump Priming |
| Answer» D. Pump Priming | |
| 88. |
The equation of exchange PT = MV was given by: |
| A. | Fisher |
| B. | Crowther |
| C. | Kuznets |
| D. | Keynes |
| Answer» B. Crowther | |
| 89. |
This is NOT money |
| A. | Currency |
| B. | Prize bond |
| C. | Demand deposit in a bank |
| D. | Coins |
| Answer» C. Demand deposit in a bank | |
| 90. |
Which property the paper money does not possess: |
| A. | Acceptability |
| B. | Divisibility |
| C. | Durability |
| D. | Portability |
| Answer» D. Portability | |
| 91. |
The low point in the business cycle is referred to as the |
| A. | expansion. |
| B. | boom. |
| C. | trough. |
| D. | peak. |
| Answer» D. peak. | |
| 92. |
Cross cheque has a cross sign (X) in the: |
| A. | Right side upper corner |
| B. | Right side lower corner |
| C. | Left side upper corner |
| D. | It does not have cross sign (X) |
| Answer» E. | |
| 93. |
Which of the following is a union tax? |
| A. | Corporation tax |
| B. | Taxes on agricultural income |
| C. | Capitation taxes |
| D. | Land revenues |
| Answer» B. Taxes on agricultural income | |
| 94. |
It is a kind of money: |
| A. | Credit money |
| B. | Discredit money |
| C. | Trust money |
| D. | False money |
| Answer» B. Discredit money | |
| 95. |
Which one is equation of exchange? |
| A. | PT = MV |
| B. | PV = MT |
| C. | PM = TV |
| D. | None of these |
| Answer» B. PV = MT | |
| 96. |
Which of following is not included in national income? |
| A. | Factor income |
| B. | Rent |
| C. | Operating surplus |
| D. | Transfer income |
| Answer» E. | |
| 97. |
Consider the following statements:1. In a Capitalist economy there is private ownership of means of production 2. In a communist nation, the means of production are owned by the State 3. In a free-market economy there is minimum role of the Government Which of the above 3 statement is/are true? |
| A. | Only 1 and 3 |
| B. | Only 2 and 3 |
| C. | Only 3 |
| D. | All are true |
| Answer» E. | |
| 98. |
According to real business cycle theory, the primary causes of business cycles are |
| A. | shocks to aggregate demand. |
| B. | monetary factors. |
| C. | technology shocks. |
| D. | waves of self-fulfilling optimism and pessimism. |
| Answer» D. waves of self-fulfilling optimism and pessimism. | |
| 99. |
Developmental expenditure refers to |
| A. | Revenue Expenditure incurred for meeting current expenses of the Government |
| B. | Capital Expenditure incurred for creating long-term assets of the Government |
| C. | Expenditure which is incurred on activities directly related to economic development |
| D. | Expenditure which is incurred on running the normal government administration |
| Answer» D. Expenditure which is incurred on running the normal government administration | |
| 100. |
Public Debt has a secular tendency to go up in every country. Which of the following are reasons contributingto such a trend? |
| A. | Increase trend in Financing of Public works programs |
| B. | Increasing trend in Financing for Economic Development |
| C. | Undertaking of Welfare Schemes by the Government |
| D. | All of the above |
| Answer» E. | |