Account and Finance Practice Question and Answer
8 Q: What is the upper limit of annual household income for microfinance borrowers in rural areas?
474 06441220732185cce374b418d
6441220732185cce374b418d- 1₹1.5 lakhfalse
- 2₹1 lakhfalse
- 3₹1.25 lakhtrue
- 4₹2 lakhfalse
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Answer : 3. "₹1.25 lakh"
Q: Which one of the following statements is true in contrast to the General Budget?
467 061b75e407fd9195ddf2d774e
61b75e407fd9195ddf2d774e- 1It is first presented in the Upper House.false
- 2It is first introduced in the Lok Sabha.true
- 3It can be introduced in either House which is in immediate session.false
- 4It is presented in a joint session of Parliament.false
- 5None of thesefalse
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Answer : 2. "It is first introduced in the Lok Sabha."
Q: Which commission in India in 1926 AD. Explaining the need for reforms in the prevailing monetary and credit system, suggested the establishment of a central bank?
466 061b761137fd9195ddf2d7d3a
61b761137fd9195ddf2d7d3a- 1Butler Commissionfalse
- 2Simon Commissionfalse
- 3Hilton Young Commissiontrue
- 4Jonathan Commissionfalse
- 5None of thesefalse
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Answer : 3. "Hilton Young Commission"
Q: Match the characteristics with their market structure:
(a) Price > MC in both short and long run
(b) Faces highly elastic demand
460 062de6fc9dc73b0303fb4f418
62de6fc9dc73b0303fb4f418- 1(a) Monopolistic competition, (b) Pure competitionfalse
- 2(a) Pure Monopoly, (b) Monopolistic competitiontrue
- 3(a) Pure competition, (b) Monopolistic competitionfalse
- 4(a) Oligopoly, (b) Pure competitionfalse
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Answer : 2. "(a) Pure Monopoly, (b) Monopolistic competition"
Q: Which of the following was the first mutual fund listed on the new mutual fund platform launched on the National Stock Exchange?
456 061b7609c993630653cf4e56e
61b7609c993630653cf4e56e- 1UTI Mutual Fundtrue
- 2SBI Mutual Fundfalse
- 3LIC Mutual Fundfalse
- 4Bank of Baroda Mutual Fundfalse
- 5None of the abovefalse
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Answer : 1. "UTI Mutual Fund"
Q: Form of public expenditure
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61b32c1c8b0b930f5301c652- 1Reconnaissance Expensesfalse
- 2Compensatory expenditurefalse
- 3Personal expenditurefalse
- 4Both 1 and 2true
- 5All thesefalse
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Answer : 4. "Both 1 and 2"
Q: Which one of the following is not included while estimating National Income through income method?
396 06513d88ccb11fc5036eb8cf5
6513d88ccb11fc5036eb8cf5- 1Rentfalse
- 2Mixed Incomefalse
- 3Pensionfalse
- 4Undistributed Profitstrue
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Answer : 4. "Undistributed Profits"
Explanation :
Income method measures National Income from the side of payments made to the primary factor of production for their productive services in an accounting year.
The components of factor income are (i) Employee’s Compensation, (ii) Profit, (iii) Rent, (iv) Interest, (v) Mixed income and (vi) Royalty.
Profit, rent, interest and other mixed income are jointly known as operating surplus.
Q: While computing National Income estimates, which of the following is required to be observed?
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6513d92c56a7b2508cb93ecf- 1The value of exports to be added and the value of imports to be subtractedtrue
- 2The value of exports to be subtracted and the value of imports to be addedfalse
- 3The value of both exports and imports to be addedfalse
- 4Thevalue of both exports and imports to be subtractedfalse
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Answer : 1. "The value of exports to be added and the value of imports to be subtracted"
Explanation :
National Income of a country can be defined as the total market value of all final goods and services produced in the economy in a year. In expenditure method, the National Income is measured by adding up the four flows, - namely C, I, G, X and M.
Thus, Y = C+1+G + (X-M) + (X- M) Where,
C = Total consumption expenditure
I = Total investment expenditure
G = Total government expenditure
X = Export,
M = Import