McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 51. |
If factor cost is greater than marker price, it means that |
| A. | Indirect taxes < subsidies (Subsidy> indirect taxes) |
| B. | Indirect taxes > subsidies |
| C. | I.T = subsidies |
| D. | None |
| Answer» A. Indirect taxes < subsidies (Subsidy> indirect taxes) | |
| 52. |
An Indian farmer produces wheat without incurring cost of inputs alll sells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» A. 1,600 | |
| 53. |
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» C. Final goods are subject to further transformation in the process of production. | |
| 54. |
Following is an example of final good: |
| A. | Flour used by a banker in making biscuits |
| B. | Unsold stock of goods lying with the sellers |
| C. | Tyres purchased by a transport company |
| D. | Mobile sets purchased by a mobile dealer |
| Answer» B. Unsold stock of goods lying with the sellers | |
| 55. |
Which out of the following is not included in estimation of NI? |
| A. | Subsidized Lunch |
| B. | Old-age Pension |
| C. | Free Medical facilities |
| D. | Construction of a house |
| Answer» B. Old-age Pension | |
| 56. |
Which of the following is a synonym of “Undistributed Profits”? |
| A. | Savings of private corporate sector |
| B. | Reserves and Surplus |
| C. | Retained Earnings |
| D. | All of these |
| Answer» D. All of these | |
| 57. |
Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income? |
| A. | It will be included in the national income, but not in the domestic income. |
| B. | It will be included in the domestic income, but not in the national income. |
| C. | It will be included in domestic income as well as national income. |
| D. | It will neither be included in the domestic income nor in the national income. |
| Answer» D. It will neither be included in the domestic income nor in the national income. | |
| 58. |
Subsidy implies Selling the product |
| A. | To the government at higher prices |
| B. | Below the cost of production. |
| C. | Selling the product at loss. |
| D. | Selling the product at cost plus indirect taxes. |
| Answer» B. Below the cost of production. | |
| 59. |
Which of the following is correct? |
| A. | If national income rises, per capita income must also rise. |
| B. | If population rises, per capita income must fall. |
| C. | If national income rises, welfare of the people must rise. |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 60. |
Goods which are not used in the production of other goods are called: |
| A. | Capital goods |
| B. | Consumption goods |
| C. | Producer goods |
| D. | Intermediate goods |
| Answer» B. Consumption goods | |
| 61. |
Depreciation is the: |
| A. | Loss of vale of fixed assets in use due to normal wear and tear |
| B. | Loss of value of fixed assets in use due to normal rate of accidental damages |
| C. | Loss of value of fixed assets in the due to foreseen obsolescence |
| D. | All of these |
| Answer» D. All of these | |
| 62. |
Which of following is not included in national income? |
| A. | Factor income |
| B. | Rent |
| C. | Operating surplus |
| D. | Transfer income |
| Answer» D. Transfer income | |
| 63. |
Which of following is not a capital good? |
| A. | Use of Machine tools |
| B. | Raw Material |
| C. | Advocate’s Services |
| D. | Heavy Machinery |
| Answer» C. Advocate’s Services | |
| 64. |
Which of following is not an intermediate goods? |
| A. | Wheat |
| B. | Gold |
| C. | Service of Doctor |
| D. | Sand and Bricks |
| Answer» C. Service of Doctor | |
| 65. |
Which of following is not a final good? |
| A. | Machinery purchased by dealer |
| B. | Machinery purchased by a factory |
| C. | Use of petrol |
| D. | Washing machine |
| Answer» A. Machinery purchased by dealer | |
| 66. |
Which of following is not a part of national income? |
| A. | Depreciation |
| B. | Net factor income from abroad |
| C. | Operating surplus |
| D. | Mixed income |
| Answer» A. Depreciation | |
| 67. |
Product method of calculating national income is also known as: |
| A. | Income method |
| B. | Value added method |
| C. | Expenditure method |
| D. | Distribution method |
| Answer» B. Value added method | |
| 68. |
Transfer payments refer to payments, which are made: |
| A. | Without any exchange of goods and services |
| B. | To workers on transfer from one job to another |
| C. | As compensation to employees |
| D. | None |
| Answer» A. Without any exchange of goods and services | |
| 69. |
National Income differs from Net National Product at market price by the amount of: |
| A. | Current transfers from rest of the world |
| B. | Net Indirect Taxes (difference between Indirect tax and subsidy) |
| C. | National debt interest |
| D. | it does not differ |
| Answer» B. Net Indirect Taxes (difference between Indirect tax and subsidy) | |
| 70. |
Net national product at factor cost is also known as: |
| A. | Net Domestic product |
| B. | Gross National product |
| C. | National Income |
| D. | Personal Income |
| Answer» C. National Income | |
| 71. |
In GNP calculation which of the following should be excluded? |
| A. | Rental incomes |
| B. | Interest payments |
| C. | Dividends |
| D. | Government transfer payment |
| Answer» D. Government transfer payment | |
| 72. |
National Income differs from Net National Product at market price by the amount of: |
| A. | Current transfers from rest of the world |
| B. | Net Indirect Taxes |
| C. | National debt interest |
| D. | it does not differ |
| Answer» B. Net Indirect Taxes | |
| 73. |
Which property the paper money does not possess: |
| A. | Acceptability |
| B. | Divisibility |
| C. | Durability |
| D. | Portability |
| Answer» C. Durability | |
| 74. |
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» D. Store of value | |
| 75. |
A student records her income and spending for past month, she uses the function of money |
| A. | Medium of exchange |
| B. | Standard of deferred payments |
| C. | Store of value |
| D. | Unit of account |
| Answer» D. Unit of account | |
| 76. |
It implements monetary policy of the country: |
| A. | Central bank |
| B. | Commercial banks |
| C. | Specialized bank |
| D. | Finance department |
| Answer» A. Central bank | |
| 77. |
Which property paper money does NOT Possess? |
| A. | Acceptability |
| B. | Divisibility |
| C. | Durability |
| D. | Portability |
| Answer» C. Durability | |
| 78. |
Anything used as money must be: |
| A. | Fixed in value |
| B. | Fixed in supply |
| C. | Legal tender |
| D. | Readily acceptable |
| Answer» D. Readily acceptable | |
| 79. |
What will promote savings? |
| A. | Increase in credit facilities |
| B. | Increase in taxation |
| C. | Increase in personal incomes |
| D. | Rising prices |
| Answer» C. Increase in personal incomes | |
| 80. |
Liquidity of a monetary asset means: |
| A. | Velocity of circulation of money |
| B. | Easy availability of money |
| C. | Ready acceptability of monetary asset |
| D. | The monetary asset has lost it value |
| Answer» C. Ready acceptability of monetary asset | |
| 81. |
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» D. Trade without use of money | |
| 82. |
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» D. (b) and (c) of above | |
| 83. |
Which is the characteristic of a good money: |
| A. | Has good design |
| B. | Has high value |
| C. | Has a fixed value in gold |
| D. | Is readily accepted by people |
| Answer» D. Is readily accepted by people | |
| 84. |
This is NOT money |
| A. | Currency |
| B. | Prize bond |
| C. | Demand deposit in a bank |
| D. | Coins |
| Answer» B. Prize bond | |
| 85. |
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» D. None of the above | |
| 86. |
This is a characteristic of good money: |
| A. | High intrinsic value |
| B. | Liquidity |
| C. | Attractive design |
| D. | Easy to duplicate |
| Answer» B. Liquidity | |
| 87. |
This is a characteristic of good money: |
| A. | High intrinsic value |
| B. | General acceptability |
| C. | Attractive design |
| D. | High purchasing power |
| Answer» B. General acceptability | |
| 88. |
It is a kind of money: |
| A. | Credit money |
| B. | Discredit money |
| C. | Trust money |
| D. | False money |
| Answer» A. Credit money | |
| 89. |
It is included in kinds of money: |
| A. | Legal money |
| B. | Credit money |
| C. | Token money |
| D. | All of the above |
| Answer» D. All of the above | |
| 90. |
Treasury Bill is a document used for: |
| A. | A short-term loan to the exporter |
| B. | A long-term loan to the government |
| C. | A short-term loan to the government |
| D. | A short-term loan to a govt. employee |
| Answer» C. A short-term loan to the government | |
| 91. |
Which does NOT represent a method of payment? |
| A. | Cheque |
| B. | Saving certificate |
| C. | Currency note |
| D. | Bill of exchange |
| Answer» B. Saving certificate | |
| 92. |
Which is NOT a desirable characteristic of money? |
| A. | Portable |
| B. | Uniform |
| C. | Easily recognized |
| D. | Easily duplicated |
| Answer» D. Easily duplicated | |
| 93. |
According to Keynes people demand money for purposes (motives): |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» C. 3 | |
| 94. |
Speculative demand for money depends upon: |
| A. | Income |
| B. | Investment |
| C. | Rate of interest |
| D. | Central bank |
| Answer» C. Rate of interest | |
| 95. |
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» B. Prices will fall | |
| 96. |
In the equation MV = PY, V represents: |
| A. | Value of money |
| B. | Velocity of circulation of money |
| C. | Variation of nation income |
| D. | All of the above |
| Answer» B. Velocity of circulation of money | |
| 97. |
In the equation MV = PY, M represents: |
| A. | Money supply |
| B. | Money demand |
| C. | Maximum output |
| D. | Minimum output |
| Answer» A. Money supply | |
| 98. |
According to Keynes, motives for holding money are: |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Five |
| Answer» B. Three | |
| 99. |
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» A. Value of money depends upon quantity of money | |
| 100. |
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» D. It does not have cross sign (X) | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.