Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. When there is an official change in the exchange rate of domestic currency, then it is called
a. Appreciation
b. Depreciation
c. Revaluation
d. Deflation
Q. Inflation redistributes income and wealth in favour of :
a. Pensioners
b. Poor
c. Middle class
d. Rich
Q. Money market is a market for -
a. Short term fund
b. Long term fund
c. Negotiable instruments
d. Sale of shares
Q. MUDRA Bank has been launched to help -
a. Small business
b. Marginal farmers
c. Poor women
d. Rural sector
Q. Industrial exit policy means -
a. forcing foreign companies to leave India
b. forcing business units to move out of congested localities
c. allowing manufacturers to shift their line of products
d. allowing business units to close down
Q. Capital formation in an economy depends on -
a. Total Income
b. Tot al demand
c. Total savings
d. Total production
Q. If the tax rate increases with the higher level of income, it shall be called -
a. Proportional tax
b. Progressive tax
c. Lump sum tax
d. Regressive tax
Q. New capital issue is placed in -
a. Secondary market
b. Grey market
c. Primary market
d. Black market
Q. If a country devalues its currency, its -(1)
a. Exports become cheaper and imports become costlier
b. (2) Exports become costlier and imports become cheaper.
c. Exports value is equivalent to imports value
d. No effect on exports and imports
Q. 'Residex' is associated with -
a. Share prices
b. Price inflation
c. Mutual fund prices
d. Land prices
Q. Which one of the following is not a function of the central bank in an economy?
a. Dealing with foreign exchange
b. Controlling monetary policy
c. Controlling government spending
d. Acting as a banker's bank
Q. In a period of inflation and price rises the supply of money remains -
a. the same
b. increases
c. decreases
d. increases or decreases pro-portionately.
Q. Which of the following groups suffer the most from inflation?
a. Debtros
b. Creditors
c. Business class
d. Holders of real assets
Q. What is "narrow money"?
a. The sum of currency in circulation and the demand deposits in banks
b. The sum of MI money and the time deposits
c. The sum of currency in circulation with the public and the cash reserves held by banks
d. The market value of the stocks held by all the holders excluding the promoters
Q. Legal Tender Money is -
a. accepted only by Government
b. accepted by people and Government as per the law
c. not accepted for business purposes by law
d. not accepted by Government