1) The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ? a. Open value b. Book value c. Real value d. Artificial value
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2) Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ? a. Certificates b. Sureties c. Security bonds d. Bond
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3) Term the written order which directs that a specified sum of money be paid to a specified person ? a. Bill of Exchange BE b. Bill of Lading c. Bearer Cheque d. None of them
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4) Bearer cheque is ? a. Payable to anyone b. payable to person holding it c. payable through account only d. payable after specific period
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5) Balance of sheet is understood as ? a. Profit in a year b. Statements of accounts that shows debit and credit accounts under the broad heads c. Performance of a company d. Accurate economic position
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6) The balance of payment is ? a. Balance between a nation’s expenditure on imports and its receipts from exports b. Total sum a state owned c. Total liabilities of a nation d. Shortfall in budget
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7) What is called an arrangement of workers machines, and equipment in which the product being assembled passes consecutively from operation to operation or the process in which finished products are turned out in a mechanically efficient, though impersonal, manner ? a. Assembly line b. Production line c. Both of them d. None of them
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8) National Income is essentially composed of ? a. All wealth of a nation b. Annual Income of the central government c. All income of the people on a year d. Income derived from taxes by the central government
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9) Government policy about exports and imports is called ? a. Monetary policy b. Fiscal policy c. Commercial policy d. Finance policy
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10) When aggregate supply exceeds aggregate demand ? a. Business inventory accumulate b. Unemployment exists c. Price of consumer goods rise d. People save more than they intended to save
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11) Development means economics growth plus ? a. Inflation b. Deflation c. Social change d. Price stability
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12) Which of the following terms refers to income that is saved and not invested ? a. Capital b. Deposit c. Hoarding d. Profit
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13) What term is given to unemployment caused by a downturn in the business cycle ? a. Underemployment b. Disguised unemployment c. Temporary unemployment d. Cyclical unemployment
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14) Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ? a. Less than one b. Greater than one c. Equal to one d. Zero
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15) Which of the following must always balance ? a. Balance of visible trade b. Balance of invisible trade c. Balance on the current account d. Balance of payments
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16) If GNP of Pakistan rises. it will encourage ? a. Exports b. Imports c. Both d. None
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17) The branch banking system is in vogue in most countries of the world. In which country was it first developed? a. South Africa b. UK c. Canada d. Australia
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18) Theory of comparative advantages was presented by ? a. Adam Smith b. Ricardo c. Hicks d. Barron
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19) Open market Operation is ? a. Buying and selling bills of exchange b. Buying and Selling govt. securities c. Buying and selling shares of companies d. Buying and selling foreign exchanges
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20) Central bank’s rate of lending to commercial banks is called ? a. Interest rate b. Discount rate c. Money rate d. Control rate
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21) Which is the most widely used tool of monetary policy ? a. Clearing house b. Open-market operations c. Discount rate d. Issuing of notes
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22) In which capacity does a person stand to gain from deflation ? a. As a pensioner b. As a debtor c. As an entrepreneur d. As an equity-holder
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23) Which of the following is not an instrument of monetary policy ? a. Taxation b. Bank rate c. Open-market operations d. Credit rationing
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24) When banks prepare their balance sheets. They show the money lent in ? a. Liability b. Assets c. Both assets and liabilities d. None
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25) Which of the following would cause income to become more unequal ? a. Increased employment b. Increased unemployment allowance c. More progressive taxes d. More regressive taxes
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26) Trade between two countries can be useful if cost ratios of goods are ? a. Equal b. Different c. Undetermined d. Decreasing
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27) Which property the paper money does not process ? a. Acceptability b. Divisibility c. Durability d. Portability
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28) The govt. can control inflation by______________? a. Increasing demand for goods b. Increasing supply of goods c. Increasing money supply d. Decreasing taxes
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29) When stock market is falling it is_______________? a. Bearish b. Bullish c. Crash d. Fall down
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30) What could a government do to correct the current account deficit ? a. Reduce the deficit on the balance of trade b. Reduce the repayment of loans c. Reduce the surplus on the capital account d. Reduce the volume of exports
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