Account and Finance Practice Question and Answer

Q:

A rising per Capita Income will indicate a better welfare if it is accompanied by –

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  • 1
    Unchanged Income distribution overall.
    Correct
    Wrong
  • 2
    Changed Income distribution in favour of rich.
    Correct
    Wrong
  • 3
    Changed Income distribution in favour of poor.
    Correct
    Wrong
  • 4
    Changed Income distribution in favour of Industrial Labour.
    Correct
    Wrong
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Answer : 3. "Changed Income distribution in favour of poor."
Explanation :

A rising per Capita Income will indicate a better welfare if it is accompanied by changed Income distribution in favour of Poor.

Q:

Other name of Net National Product at market price?

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  • 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:

If a country produces consumer goods only and nothing else, then-

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  • 1
    Standard of living will be highest
    Correct
    Wrong
  • 2
    The country have certain amount of good
    Correct
    Wrong
  • 3
    The country will soon become poor if external trade will not happen
    Correct
    Wrong
  • 4
    The country will gradually become rich if external trade will not happen
    Correct
    Wrong
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Answer : 3. "The country will soon become poor if external trade will not happen"
Explanation :

If any country will produce only consumer good, then gradually the country will become poor as there will be no exchange of other goods and the economy of that country will highly be affected.

Q:

The Income of Indians working abroad is-

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  • 1
    Domestic Income of India
    Correct
    Wrong
  • 2
    Income earned from abroad
    Correct
    Wrong
  • 3
    Net domestic product of India
    Correct
    Wrong
  • 4
    Grave domestic product of India.
    Correct
    Wrong
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Answer : 2. "Income earned from abroad"
Explanation :

Expl:- NDPmp + NFIA = NNPmp

GDPmp + NFIA + GNPmp

Q:

Forced saving refers to-

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  • 1
    Compulsory deposits imposed on income tax payers
    Correct
    Wrong
  • 2
    Provident fund contribution of private sector employees
    Correct
    Wrong
  • 3
    Reduction of consumption consequent to a rise in price
    Correct
    Wrong
  • 4
    Taxes on individual income and wealth
    Correct
    Wrong
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Answer : 3. "Reduction of consumption consequent to a rise in price"
Explanation :

According to Nobel Prize winner Frederick Wan, Forced Saving in an economic situation in which consumer spend less than their disposable income, not because they want to save but because the goods they seek are not avoidable or because goods are too expensive.

Q:

Compared to rich the poors saving is–

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  • 1
    A larger part of their income
    Correct
    Wrong
  • 2
    An equal part of their income
    Correct
    Wrong
  • 3
    A small part of their income
    Correct
    Wrong
  • 4
    All of their incomes
    Correct
    Wrong
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Answer : 3. "A small part of their income"
Explanation :

 A necessary level of consumption produces differences in income and saving. This implies that the poor household have lower saving rates because they cannot “afford to save” after buying the necessities.

Q:

GDP at factor cost equals–

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  • 1
    GDP – Indirect Tax + Subsidy
    Correct
    Wrong
  • 2
    GNP – depreciation
    Correct
    Wrong
  • 3
    NNP + depreciation
    Correct
    Wrong
  • 4
    GDP – subsidy + indirect tax.
    Correct
    Wrong
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Answer : 1. "GDP – Indirect Tax + Subsidy"

Q:

GDP is what percent of Fiscal deficit?

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  • 1
    7
    Correct
    Wrong
  • 2
    4
    Correct
    Wrong
  • 3
    8
    Correct
    Wrong
  • 4
    1
    Correct
    Wrong
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Answer : 2. "4"
Explanation :

Expl:- In budget 2014-15 the percent of G.D.P was 4.1 of fiscal deficit. But in 2015-16 its percent becomes 3.9% of fiscal deficit.

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