Account and Finance Practice Question and Answer

Q:

GDP is what percent of Fiscal deficit?

249 0

  • 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.

Q:

When increase in income the increase in ratio between income & expenditure changes–

240 0

  • 1
    In same ratio
    Correct
    Wrong
  • 2
    Ratio less than 1
    Correct
    Wrong
  • 3
    Ratio more than one
    Correct
    Wrong
  • 4
    None
    Correct
    Wrong
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Answer : 2. "Ratio less than 1"
Explanation :

Expl:- When increase in income the increase in ratio between income & expenditure changes Ratio less than 1

Q:

The Income of Indians working abroad is-

265 0

  • 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:

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

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  • 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:

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

264 0

  • 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 Expenditure on advertisement and public relation by an enterprise is a part of its-

237 0

  • 1
    Consumption of fined capital
    Correct
    Wrong
  • 2
    Final consumption Expenditure
    Correct
    Wrong
  • 3
    Intermediate Consumption
    Correct
    Wrong
  • 4
    Fined Capital
    Correct
    Wrong
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Answer : 3. "Intermediate Consumption"
Explanation :

The Advertisement and public relations of selling expenses are part of intermediate consumption.

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:

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

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  • 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"

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