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 Indian Economy Questions

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Q:

Working capital is a measure of

A) liquidity B) consistency
C) profitability D) solvency
 
Answer & Explanation Answer: A) liquidity

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Q:

Which of the following best describes monetary policy?

A) Managing the economy by controlling the money supply B) Determining the design printed on the national currency
C) Regulating transactions in the currency exchange market D) Raising and lowering the foreign exchange rate
 
Answer & Explanation Answer: A) Managing the economy by controlling the money supply

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Q:

The _________ of a firm is a relationship between inputs used and output produced by the firm.

A) Marginal product B) Production function
C) Total product D) Average product
 
Answer & Explanation Answer: B) Production function

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Q:

Calculate a country's GDP if for the year, consumer spending is $400 million, government spending is $150 million, investment by businesses is $80 million, exports are $35 million and imports are $40 million.

A) $625 million B) $465 million
C) $475 million D) $635 million
 
Answer & Explanation Answer: A) $625 million

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Q:

In India, which of the following is regulated by the Forward Markets Commission?

A) Currency Futures Trading B) Commodities Futures Trading
C) Equity Futures Trading D) Both Commodities Futures and Financial Futures Trading
 
Answer & Explanation Answer: B) Commodities Futures Trading

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Q:

The goal of expansionary fiscal policy is to increase

A) Unemployment B) The price level
C) Aggregate supply D) Real GDP
 
Answer & Explanation Answer: D) Real GDP

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Q:

Purchase of fixed assets on credit is originally recorded in

A) Purchases book B) Journal Proper
C) Cash book D) Ledger
 
Answer & Explanation Answer: B) Journal Proper

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Q:

What does the term 'Call Money' refer to?

A) A loan made for a very short period of a few days or aweek B) Student loans to help cover the cost of highereducation
C) Loans to allow consumers to buy homes they can'tpay for upfront D) Personal loans for any personal expenses which don'thave a designated purpose
 
Answer & Explanation Answer: A) A loan made for a very short period of a few days or aweek

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