MCQ Finance Knowledge Quiz

Online Practice Finance Questions / Answers:

Ques. Which of the following is/are the objective(s) of Free Trade Agreement, a country sign with other countries ?1. To provide support to entrepreneurs for setting up new projects in tiny/SSI sector.

2. For undertaking expansion of business.

3. To support technology up-gradation.

(a) Only 1 and 2

(b) Only 2 and 3

(c) All 1,2 and 3

(d) All 1,2 and 3

Ans. (c)

Ques. Surplus earned by a factor other than land in the short period is referred to as—

(a) Economic rent

(b) Quasi-rent

(c) Net rent

(d) Super-normal rent

Ans. (b)

Ques. Under the diminishing balance method, depreciation is calculated on

(a) The Scrap Value

(b) The Original Cost

(c) Book Value

(d) Sale Price Correct

Ans. (c)

Ques. Which one one of the following is not a quantitative credit con­trol techniques?

(a) Bank Rate

(b) Cash Reserve Ratio

(c) Statutory Liquidity Ratio

(d) Increase of interest rate on saving deposit

Ans. (d)

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Ques. The excess of price a person is to pay rather than forego the consumption of the commodity is called—

(a) Price

(b) Profit

(c) Producers’ surplus

(d) Consumers’ surplus

Ans. (c)

Ques. The availability of cash and other cash-like marketable instruments that are useful in purchases and investments are commonly known as

(a) Cash crunch

(b) Liquidity

(c) Credit

(d) Marketability

Ans. (b)

Ques. What is a ‘limited company’ ?

(a) In which shareholders possess the ownership limited to their paid up capital

(b) In which shares are issued

(c) A company of Government ownership

(d) A Registered company

Ans. (a)

Ques. What “Trade Gap” means?

(a) Gap between total GDP and total consumption

(b) Gap between total imports and total exports

(c) Gap between available liquidity and expected demand in next five months

(d) Gap between budgeted revenue collection and actual collection of the same

Ans. (b)

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Ques. What is a cross Border Exchange ?

(a) Trading in foreign currency in India

(b) Trading in Indian rupee in exchange of other currencies/ goods

(c) Hawala transactions in Indian Rupee

(d) Unauthorized remittance of Indian Rupee

Ans. (a)

Ques. What is the full form of the term NAV n context of “Equity Scheme”?

(a) Nil Accounting Variation

(b) Net Accounting Venture

(c) Net Asset Value

(d) New Asset Venture

Ans. (c)

Ques. What is ‘financial inclusion’ ?

1. Easy access to bank accounts for safe parking of savings

2. Availability of cheap credits through appropriately designed loans for poor and low income households and small entrepreneurs

3. Availability of basic financial products like insurance

(a) Only 1

(b) Only 2

(c) Only 3

(d) Both 1 and 2

Ans. (b)

Ques. What is the full form of FATCA?

(a) Forex Account Tax Compliance Act

(b) Foreign Account Tax Compliance Act

(c) Forex Account Total Compliance Act

(d) Foreign Account Total Compliance Act

Ans. (b)

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Ques. Which of the following organizations issue the rules of global trade?

(a) World Bank

(b) World Trade Organisation

(c) Foreign Exchange Dealers’ Association

(d) Directorate General and Foreign Trade

Ans. (b)

Ques. In PAN Card, If the fourth letter is G, then it denotes

(a) Company

(b) Firm

(c) General

(d) Government

Ans. (d)

Ques. Gross Domestic Product is defined as the value of all ___

(a) Goods produced in an econo-my in a year.

(b) Goods and Services produced in an economy in a year.

(c) Final goods produced in an economy in a year.

(d) Final goods and services pro-duced in an economy every year.

Ans. (d)

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Ques. Full convertibility of a rupee means

(a) Purchase of foreign exchange for rupee freely.

(b) Payment for imports in terms of rupees.

(c) Repayment of imports in terms of rupees

(d) Determination of rate of ex-change between rupee and foreign currencies freely by the market forces of demand and supply

Ans. (d)

Ques. Which of the following terms is NOT used in finance industry?

(a) Public Debt

(b) Plasma

(c) Joint Venture

(d) Treasury Bill

Ans. (b)

Ques. The per capita income in India is estimated by:

(a) Census Commission

(b) Central Bank

(c) RBI

(d) Central Statistical Organisation

Ans. (d)

Ques. Which of the following refers to financial services conducted among banks and fi­nancial services companies?

(a) Merchant banking

(b) Retail banking

(c) Commercial banking

(d) Wholesale banking

Ans. (d)

Ques. Compared to the rich the poor save

(a) a large part of their income

(b) an equal part of their income

(c) a smaller part of their income

(d) all of their incomes

Ans. (c)

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Ques. What type of book are accounts usually written in?

(a) Biography

(b) Encyclopedia

(c) Ledger

(d) Lexicon

Ans. (c)

Ques. Opportunity cost of production of a commodity is—

(a) The cost that the firm could have incurred when a different technique was adopted

(b) The cost that the firm could have incurred under a different method of production

(c) The actual cost incurred

(d) The next best alternative output sacrificed

Ans. (d)

Ques. What is GATT stands for?

(a) General Agreement on Tariff and Trade

(b) General Agency for Trade and Tax

(c) Global Agency for Tariff and Trade

(d) Global Agreement on Tax and Trade

Ans. (a)

Ques. What is Gross Domestic Product ?

(a) It is the market value of all final goods and services made within the borders of a country in a year

(b) It is the market value of all final goods and services made in the country

(c) It is the cost of services made within the borders of a country in a year

(d) It is the cost of production of all final goods and services made in the country

Ans. (a)

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Ques. What does “QE” stand for in a national or international finance system?

(a) Quantitative easing

(b) Qualitative easing

(c) Quantity-revised economy

(d) Quantum economy

Ans. (a)

Ques. What does the letter ‘M’ depict in the term SME as used in the financial world ?

(a) Maximum

(b) Medium

(c) Mercantile

(d) Ministry

Ans. (b)

Ques. What is “Dow Jones” ?

(a) Share Market Index of New York Stock Exchange

(b) Gold Price Index of World Gold Council

(c) Share Market Index of USA

(d) Share Market Index of Bombay Stock Exchange

Ans. (c)

Ques. __ Is a financial asset

(a) Gold

(b) Share

(c) Land

(d) Car

Ans. (b)

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Ques. Money is a

(a) flow variable

(b) includes checkable deposits with banks

(c) includes gold and silver

(d) all of these

Ans. (a)