ECONOMY KNOWLEDGE FOR COMPETITIVE EXAMS

 Economy knowledge

 

1. What is a Bill Market?

A.    Market for long period loan.

B.     Short-dated bills are bought  and sold.

C.     A market where shares are bought and sold.

D.    A market for debenture –holders.

2.The size of market depends on:

A.    Demand

B.     Supply

C.     Income of people.

D.    None of these.

3.Which of the following is known as Borrowed capital?

A.    Debentures

B.     Equity share.

C.     Preference shares

D.    None of these.

4.Socialist economy must be:

A.    Planned economy

B.     Market economy

C.     Closed economy

D.    Open economy.

5.Debentures are:

A.    Non-transferable

B.     Transferable

C.     Transferable on the basis of some restrictions

D.    None of these.

6.War-time price controls lead to

1.     Inflation gap

2.     Deflation

3.     Suppressed inflation

4.     Recession.

7. VAT is imposed

A.    Directly on customer.

B.     On final stage of production

C.     On first stage of production.

D.    On all stage between production and final sale.

8.Economics is a

A.    Positive science

B.     Normative science

C.     Both positive and normative science.

D.    General science.

9.The basic problems of a mixed economy can be solved through:

A.    Planning.

B.     Price mechanism

C.     Both(a) and (b)

D.    None of these.

10.Socialist economic must be:

A.    Market economy

B.     Planned economy

C.     Open economy

D.    Closed economy.

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KEY ANSWER

1.     B

2.     A

3.     A

4.     A

5.     B

6.     C

7.     D

8.     D

9.     C

10.    B