McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 401. |
If we add……………. to national income we get NDP |
| A. | Depreciation |
| B. | Net foreign factor income |
| C. | Indirect-tax |
| D. | Transfer payment |
| Answer» B. Net foreign factor income | |
| 402. |
………………… is the personal income minus personal income tax and miscellaneous receipts of Government administrative departments. |
| A. | Surplus income |
| B. | Disposal income |
| C. | Expendable income |
| D. | Residual income |
| Answer» B. Disposal income | |
| 403. |
Which of these is/are not included in net domestic product at factor cost. |
| A. | Wages or compensation of employees |
| B. | Rent, interest, profits or operating surplus |
| C. | Mixed income |
| D. | None |
| Answer» D. None | |
| 404. |
Which is the apex bank for agricultural credit in India? |
| A. | RBI |
| B. | SIDBI |
| C. | NABARD |
| D. | IDBI |
| Answer» C. NABARD | |
| 405. |
SIDBI is a subsidiary bank of |
| A. | IDBI |
| B. | SBI |
| C. | HDFC |
| D. | ICICI |
| Answer» A. IDBI | |
| 406. |
RBI check inflation by |
| A. | Increasing bank rate |
| B. | Increasing CRR |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 407. |
Which of the following is near money? |
| A. | Bill of exchange |
| B. | Saving bonds |
| C. | Gilt edged securities |
| D. | All the three |
| Answer» D. All the three | |
| 408. |
Which of the following is the oldest system of money? |
| A. | Barter |
| B. | Plastic money |
| C. | Credit money |
| D. | Gold |
| Answer» A. Barter | |
| 409. |
Optional money is a |
| A. | Legal tender money |
| B. | Non-legal tender money |
| C. | Limited legal tender money |
| D. | Full bodied money |
| Answer» B. Non-legal tender money | |
| 410. |
Which of these is not a function of money? |
| A. | Means of exchange |
| B. | Store value |
| C. | Power indicator |
| D. | Measurement of value |
| Answer» C. Power indicator | |
| 411. |
Which of the following function does money serve when used to measure the prices of different goods and services? |
| A. | Store of value |
| B. | Medium of exchange |
| C. | Standard of value |
| D. | Display of power |
| Answer» C. Standard of value | |
| 412. |
Which of the following function does money serve when used to purchase or sell different goods and services? |
| A. | Store of value |
| B. | Medium of exchange |
| C. | Standard of value |
| D. | Display of power |
| Answer» B. Medium of exchange | |
| 413. |
If RBI wants to decrease the money supply in order to check inflation it will |
| A. | Sell bonds |
| B. | Increase CRR |
| C. | Hike bank rate |
| D. | All or any of the above three |
| Answer» D. All or any of the above three | |
| 414. |
If the country is passing through recession, the RBI would |
| A. | Buy bonds |
| B. | Reduce CRR |
| C. | Ease out bank rate |
| D. | All or any of the above three |
| Answer» D. All or any of the above three | |
| 415. |
If RBI sucks excess money into circulation this will effect |
| A. | M1 |
| B. | M2 |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 416. |
Manipulation in CRR enables the RBI to ……. |
| A. | Influence the lending ability of the commercial banks |
| B. | Check unemployment growth |
| C. | Check poverty |
| D. | Increase GDP |
| Answer» A. Influence the lending ability of the commercial banks | |
| 417. |
How does a commercial bank create money |
| A. | By printing money |
| B. | By lending a part of its deposits |
| C. | By issuing ATM cards |
| D. | Accepting deposits |
| Answer» B. By lending a part of its deposits | |
| 418. |
Which of these affects the demand for money? |
| A. | Real income |
| B. | Price level |
| C. | Rate of interest |
| D. | All the three |
| Answer» D. All the three | |
| 419. |
If someone keeps some money for bad days, this demand for money is known by ……. motive of money |
| A. | Speculative |
| B. | Transaction |
| C. | Precautionary |
| D. | Store |
| Answer» C. Precautionary | |
| 420. |
Which of these would lead to fall in demand for money? |
| A. | Inflation |
| B. | Increase in real income |
| C. | Increase in real rate of interest |
| D. | Increase in wealth |
| Answer» C. Increase in real rate of interest | |
| 421. |
EXIM Bank was established in |
| A. | Jan. 1982 |
| B. | March 1984 |
| C. | Fe(b) 2001 |
| D. | August 1975 |
| Answer» A. Jan. 1982 | |
| 422. |
EXIM Bank is authorized to raise loan from |
| A. | RBI |
| B. | Government of India |
| C. | International market |
| D. | Trading activities |
| Answer» D. Trading activities | |
| 423. |
Which of these are not the duties of EXIM Bank? |
| A. | Lending/Guarantee |
| B. | Advisory |
| C. | Promotional |
| D. | Trading activities |
| Answer» D. Trading activities | |
| 424. |
RBI was nationalized in |
| A. | June 1947 |
| B. | Jan. 1949 |
| C. | March 1954 |
| D. | April 1936 |
| Answer» B. Jan. 1949 | |
| 425. |
Which of these terms are/is appropriate for RBI? |
| A. | Banker’s Bank |
| B. | Banker’s to the Government |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 426. |
Exchange Control and Management is done by |
| A. | RBI |
| B. | As per Defence of India Act |
| C. | SBI |
| D. | IDBI |
| Answer» A. RBI | |
| 427. |
FERA has been replaced by |
| A. | FINA |
| B. | FEMA |
| C. | FENA |
| D. | MRTP |
| Answer» B. FEMA | |
| 428. |
CRR means |
| A. | Cash Reserve Ratio |
| B. | Current rate of return |
| C. | Cumulative rate of return |
| D. | Current rate of Rupee |
| Answer» A. Cash Reserve Ratio | |
| 429. |
CRR is used to |
| A. | Combat inflation |
| B. | Check black money |
| C. | Check tax evasion |
| D. | All the three |
| Answer» A. Combat inflation | |
| 430. |
SLR stands for |
| A. | Short liquid rupee |
| B. | Statutory liquid ratio |
| C. | Statutory liquid Rupee |
| D. | Shorter long rung |
| Answer» B. Statutory liquid ratio | |
| 431. |
Nationalization of Banks took place in |
| A. | July 1969 |
| B. | February 1977 |
| C. | Jan. 1960 |
| D. | April 1989 |
| Answer» A. July 1969 | |
| 432. |
Repo Market means |
| A. | A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument |
| B. | A money market instrument which helps in collateral long term borrowing and lending through sale and purchase operation in debt instrument |
| C. | A money market instrument which helps in collateral short term lending through sale and purchase operation in debt instrument |
| D. | A money market instrument which helps in collateral short term borrowing through sale and purchase operation in debt instrument |
| Answer» A. A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument | |
| 433. |
Repo transaction means |
| A. | Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. |
| B. | Sale of securities by the holder to the investor with the agreement to resell them at a predetermined rate and date. |
| C. | Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date |
| D. | Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate. |
| Answer» A. Sale of securities by the bolder to the investor with the agreement to purchase them at a predetermined rate and date. | |
| 434. |
Reverse Repo transaction means |
| A. | Sale of securities by the holder to the investor with the agreement to purchase them at a predetermined rate and date |
| B. | Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date |
| C. | Sale and purchase of securities by the holder to the investor with the agreement to purchase them at the prevailing rate and date |
| D. | Sale of securities by the holder to the investor with the agreement to purchase them at market driven rate |
| Answer» B. Sale or purchase of securities by the holder to the investor with the commitment to sell or purchase them at a predetermined rate and date | |
| 435. |
Repo transactions are allowed in |
| A. | Government securities / Treasury bills of all maturity |
| B. | State Government securities |
| C. | PSU bonds/Private corporate bonds |
| D. | All the three |
| Answer» D. All the three | |
| 436. |
India is a recipient of loan from which of these agencies |
| A. | World Bank |
| B. | IMF |
| C. | IDA |
| D. | All the three |
| Answer» D. All the three | |
| 437. |
Demand pull inflation rises due to |
| A. | Persistent rise in factor cost |
| B. | Mismatch between demand and supply of commodities |
| C. | Combine phenomena of demand pull and cost-push inflation. |
| D. | Increase in Price of precious metal |
| Answer» B. Mismatch between demand and supply of commodities | |
| 438. |
Cost push inflation arises due to |
| A. | Persistent rise in factor cost |
| B. | Mismatch between demand and supply of commodities |
| C. | Combine phenomena of demand pull and cost-push inflation. |
| D. | Increase in price of precious metal |
| Answer» A. Persistent rise in factor cost | |
| 439. |
Deflation is a state when |
| A. | Prices are falling |
| B. | Consistent increase in prices |
| C. | Fall in GDP |
| D. | Collapse of sensex |
| Answer» A. Prices are falling | |
| 440. |
Which of these is one of the causes of inflation? |
| A. | Increase in public expenditure |
| B. | Deficit financing |
| C. | Increase in administrative prices |
| D. | All the three |
| Answer» D. All the three | |
| 441. |
Deficit financing means |
| A. | Financing budgetary deficit by borrowing |
| B. | Financing budgetary deficit by printing money |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 442. |
Inflationary conditions may co-exist with which of the following situation |
| A. | Increase in factor cost |
| B. | Increase in employment opportunities |
| C. | Growth in GDP and imports |
| D. | All the three |
| Answer» D. All the three | |
| 443. |
Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on |
| A. | Increase in GDP |
| B. | Inflationary pressure |
| C. | Greater employment opportunity |
| D. | More equitable distribution of income and wealth |
| Answer» B. Inflationary pressure | |
| 444. |
Supply of money refers to |
| A. | Total money held by the public |
| B. | Total money held by RBI |
| C. | Total money with all the commercial banks and RBI |
| D. | Total money in Government account |
| Answer» A. Total money held by the public | |
| 445. |
Given a reserve ratio of 20% in initial deposit of `1000 in a banking system would create secondary deposit of `………….. |
| A. | `3,000 |
| B. | `5,000 |
| C. | `4,000 |
| D. | `6,000 |
| Answer» C. `4,000 | |
| 446. |
Given a reserve ratio of 20% for an initial deposit of `1000 create total supply of money |
| A. | `4,000 |
| B. | `5,000 |
| C. | `800 |
| D. | `160 |
| Answer» B. `5,000 | |
| 447. |
Which of these is not the function of IMF? |
| A. | It provides mechanism for orderly adjustment of exchange rate |
| B. | It provides mechanism for international consultation |
| C. | It provides forum for settlement of international trade disputes |
| D. | It is a reservoir of the currencies of all the member countries |
| Answer» C. It provides forum for settlement of international trade disputes | |
| 448. |
Which of these is not the function of World Bank? |
| A. | To arbitrate on international trade disputes. |
| B. | To help the member countries in the reconstruction and development of their countries. |
| C. | To encourage private foreign investment and credit by guaranteeing repayment. |
| D. | To promote long term balanced growth of international trade. |
| Answer» A. To arbitrate on international trade disputes. | |
| 449. |
Which of the following is not the function of World Trade Organization? |
| A. | To settle border disputes of member countries. |
| B. | To handle trade disputes. |
| C. | To provide technical assistance and training to developing countries. |
| D. | To provide forum for trade negotiation between the member countries. |
| Answer» A. To settle border disputes of member countries. | |
| 450. |
At a given time and in a given marketplace, the entire market demand curve indicates the |
| A. | quantity of a good consumers would be willing and able to purchase at a given price. |
| B. | quantity of a good consumers would be able to purchase at a series of prices. |
| C. | quantity of a good consumers want to purchase at a given price |
| D. | quantity of a good consumers have purchased at a series of prices over the year. |
| Answer» B. quantity of a good consumers would be able to purchase at a series of prices. | |
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