GENERAL CONCEPT ON ECONOMY
This is the "GENERAL CONCEPT ON ECONOMY" section of GK. Here, we have different questions related to the economy where you can practice by selecting appropriate answer among given options and later can check for the correct answer.
1. National expenditure includes
A. Consumption expenditure
B. Investment expenditure
C. Government expenditure
D. All of the above
Answer
2. Deficit financing leads to inflation in general, but it can be checked if
A. Government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
B. Only aggregate demand is increased
C. All the expenditure is denoted national debt payment only
D. All of the above
Answer
3.If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
A. Zero
B. Equal to government income
C. Larger than government income
D. Negative
Answer
4.The budget deficit means
A. The excess of total expenditure, including loans, net of lending over revenue receipts
B. Difference between revenue receipts and revenue expenditure
C. Difference between all receipts and all the expenditure
D. Fiscal deficit less interest payments
Answer
5. In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?
A. Change in quantity of money – change in investment – change in employment and output – change in rate of interest – change in price level
B. Change in quantity of money – change in employment and output – change in investment – change in the rate of interest – change in price level
C. Change in quantity of money – change in investment – change in rate of interest – change in employment and output – change in price level
D. Change in quantity of money – change in rate of interest – change in investment – change in employment and output – change in price level
Answer
6. Which of the following is the most appropriate cause of exports surplus?
A. Country's exports promotion value
B. Country's stringent import policy
C. Developments in national and international markets
D. None of the above
Answer
7. Deficit financing implies
A. printing new currency notes
B. replacing new currency with worn out currency
C. public expenditure in excess of public revenue
D. public revenue in excess of public expenditure
Answer
8. Subsidies mean
A. payment by government for purchase of goods and services
B. payment made by business enterprises to factors of production
C. payment made by companies to shareholders
D. payment made by the government to business enterprises, without buying any goods and services
Answer
9. Excise duty is a tax levied on the
A. import of goods
B. export of goods
C. production of goods
D. sale of goods
Answer
10. Depreciation means
A. closure of a plant due to lock out
B. closure of a plant due to labour trouble
C. loss of equipment over time due to wear and tear
D. destruction of a plant in a fire accident
Answer
11. The currency convertibility concept in its original form originated in
A. Wells Agreement
B. Bretton Woods Agreement
C. Taylors Agreement
D. None of the above
Answer
12. Devaluation of currency leads to
A. fall in domestic prices
B. increase in domestic prices
C. no impact on domestic prices
D. erratic fluctuations in domestic prices
Answer
13. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits
A. will decrease
B. will increase
C. will neither increase nor decrease
D. None of the above
Answer
14. Devaluation of a currency means
A. reduction in the value of a currency vis-a-vis major internationally traded currencies
B. permitting the currency to seek its worth in the international market
C. fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
D. fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
Answer
15. Devaluation of currency will be more beneficial if
A. prices of domestic goods remain constant
B. prices of exports remain constant
C. prices of imports remains constant
D. prices of exports rise proportionately
Answer
16. If the cash reserve ratio is lowered by the NRB, its impact on credit creation will be to
A. increase it
B. decrease it
C. no impact
D. None of the above
Answer
17. Debenture holders of a company are its
A. Shareholders
B. Creditors
C. Debtors
D. Directors
Answer
18. Which of the following items would not appear in a company's balance sheet?
A. Value of stocks of raw materials held
B. Total issued capital
C. Revenue from sales of the company's products
D. Cash held at the bank
Answer
Thank you so much for sharing such a useful and importance matters to us.But i wanna more help from you ?Could you please provide us the latest updates about Nepalese economies based n above objective questions?
Thank you !
Very beneficial indeed …I hv much benefited from the pattern of questions and answer.
It would be good if more banking exam related topics would be discussed.
Provide the data of 2017 related to Nepalese economy.