Account and Finance Questions Practice Question and Answer

Q:

Which one of the following is the most appropriate reason for inequalities in income?

332 0

  • 1
    Racial factors
    Correct
    Wrong
  • 2
    Lack of opportunities
    Correct
    Wrong
  • 3
    Inheritance from family environment
    Correct
    Wrong
  • 4
    Differences in ability
    Correct
    Wrong
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Answer : 2. "Lack of opportunities"
Explanation :

In India, on the one hand, Per Capita Income is low and on the other hand, there is large inequality in the distribution of wealth and income, according to Human Development Reports. Lack of opportunity means that its most valuable assets its people is not being fully used. It is appropriate reason of income gap.

Q:

Which of the following is one of the Open Market Operations by the Reserve Bank of India?

327 0

  • 1
    Buying and selling of bonds issued by the Government in the open market
    Correct
    Wrong
  • 2
    Only selling of bonds issued by the Government in the open market
    Correct
    Wrong
  • 3
    Only buying of bonds issued by the Government in the open market
    Correct
    Wrong
  • 4
    Buying and selling of bonds issued by commercial banks in the open market
    Correct
    Wrong
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Answer : 1. "Buying and selling of bonds issued by the Government in the open market"

Q:

A ‘Transfer Income’ is as –

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  • 1
    Income which is not produced by as production process.
    Correct
    Wrong
  • 2
    Income taken away from one person given over to another.
    Correct
    Wrong
  • 3
    Unearned Income
    Correct
    Wrong
  • 4
    Earned Income
    Correct
    Wrong
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Answer : 1. "Income which is not produced by as production process."
Explanation :

Transfer paymentOne-way payment of money for which no money, good, or  service is received in exchange. Governments use such payments as means of income  redistribution by giving out money under social welfare  programs such as social security, old age or disability pensions,  student grants, unemployment compensation, etc. Subsidies  paid to exporters, farmers, manufacturers, however, are not  considered transfer payments. Transfer payments are excluded  in computing gross national product.

Q:

The Central Statistical Organisation (CSO) provides data under a new revised series in which the base year is taken as–

280 0

  • 1
    1960-61
    Correct
    Wrong
  • 2
    1970-71
    Correct
    Wrong
  • 3
    2011-12
    Correct
    Wrong
  • 4
    1990-91
    Correct
    Wrong
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Answer : 3. "2011-12 "
Explanation :

The CSO provides data under a new revised series in which the base year is taken as 2011–12.

Q:

Income and consumption are–

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  • 1
    Inversely Related
    Correct
    Wrong
  • 2
    Directly Related
    Correct
    Wrong
  • 3
    Partially Related
    Correct
    Wrong
  • 4
    Unrelated
    Correct
    Wrong
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Answer : 2. "Directly Related"
Explanation :

Consumption and income are directly or positively  related. An increase in income results in increase in consumption  and vice-versa.


Q:

Which of the following represents the saving of the Private Corporate Sector?

251 0

  • 1
    Undistributed profits
    Correct
    Wrong
  • 2
    Excess of income over expenditure
    Correct
    Wrong
  • 3
    Dividends paid to shareholders
    Correct
    Wrong
  • 4
    Total profit of a company
    Correct
    Wrong
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Answer : 1. "Undistributed profits"
Explanation :

For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as net saving

Q:

Other name of Net National Product at market price?

248 0

  • 1
    National Income
    Correct
    Wrong
  • 2
    Gross Domestic Production
    Correct
    Wrong
  • 3
    Personal Income
    Correct
    Wrong
  • 4
    Per Capital Income
    Correct
    Wrong
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Answer : 1. "National Income "
Explanation :

NNPMP = GNPMP – depreciation

Q:

Gross Profit means–

247 0

  • 1
    Total investment over total savings
    Correct
    Wrong
  • 2
    Changes in methods of production
    Correct
    Wrong
  • 3
    Changes in the form of business organisation
    Correct
    Wrong
  • 4
    Total receipts over total expenditure.
    Correct
    Wrong
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Answer : 4. "Total receipts over total expenditure."
Explanation :

Gross profit = Net sales (total receipts) - Cost of goods  sold (total expenditure)

In other words it is the total receipt over total cost.

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