Bihar Board 12th Business Economics Objective Important Questions Part 4

BSEB Bihar Board 12th Business Economics Important Questions Objective Type Part 4 are the best resource for students which helps in revision.

Bihar Board 12th Business Economics Objective Important Questions Part 4

Question 1.
Which one is included in the primary function of money?
(a) Medium of Exchange
(b) Measure of value
(c) Both (a) and (b)
(d) Store of value
Answer:
(c) Both (a) and (b)

Question 2.
Which one is included in the secondary function of money?
(a) Transfer of value
(b) Store of value
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 3.
The functions of money includes:
(a) Value determination
(b) Store of value
(c) Medium of exchange
(d) All of these
Answer:
(d) All of these

Question 4.
Which one is not the function of money?
(a) Measure of value
(b) Transfer of value
(c) Store of value
(d) Stabilization of value
Answer:
(d) Stabilization of value

Question 5.
India’s largest bank is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India
Answer:
(d) Bank of India

Question 6.
In India currency note is issued by:
(a) Ministry of Finance
(b) Finance Secretary
(c) State Bank of India
(d) Reserve Bank of India
Answer:
(d) Reserve Bank of India

Question 7.
Reserve Bank of India was established in:
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer:
(b) 1935

Question 8.
APC + APS = ?
(a) 0
(b) 1
(c) ∞
(d) None of the above
Answer:
(b) 1

Question 9.
Monetary policy is related with:
(a) Public expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations
Answer:
(d) Open market operations

Question 10.
What is Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Answer:
(a) Commercial Bank

Question 11.
Value of MPC is:
(a) 1
(b) 0
(c) greater than 0, less than 1
(d) ∞
Answer:
(c) greater than 0, less than 1

Question 12.
NNPmp = ?
(a) GNP mp – Depreciation
(b) GNP mp + Depreciation
(c) GNP mp + Indirect tax
(d) None of these
Answer:
(a) GNP mp – Depreciation

Question 13.
Who is known as the ‘Father of Economics’?
(a) Marshall
(b) Malthus
(c) Adam Smith
(d) John Robinson
Answer:
(c) Adam Smith

Question 14.
Which of the following is the agent of Production?
(a) Land
(b) Capital
(c) Labour
(d) All the above
Answer:
(d) All the above

Question 15.
Direct tax is:
(a) Income tax
(b) Gift tax
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 16.
Which of the following is an indirect tax?
(a) Income tax
(b) Gift tax
(c) Sales tax
(d) None of these
Answer:
(c) Sales tax

Question 17.
Study of national income is related to ………..:
(a) Micro economics
(b) Macro economics
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer:
(b) Macro economics

Question 18.
The General Theory of Employment, Interest and Money was Written by ………..:
(a) Marshall
(b) Ranger
(c) Keynes
(d) Ricardo
Answer:
(c) Keynes

Question 19.
Mountain and rivers are ………..:
(a) National Capital
(b) National wealth
(c) Real Capital
(d) International Capital
Answer:
(b) National wealth

Question 20.
An economy which has economic relations to other countries is known as ………..:
(a) Closed economy
(b) Open economy
(c) Self-reliant economy
(d) None of these
Answer:
(b) Open economy

Question 21.
Consumption of fixed capital is also known as ………..:
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All the above
Answer:
(b) Depreciation

Question 22.
National income is calculated through ………..:
(a) Income method
(b) Output method
(c) Expenditure method
(d) All the above
Answer:
(d) All the above

Question 23.
The Great Depression of the world took place in ………..:
(a) 1920
(b) 1925
(c) 1930
(d) 1935
Answer:
(c) 1930

Question 24.
Keynes assumed the situation of ………..:
(a) full employment
(b) involuntary unemployment
(c) underemployment
(d) marginal unemployment
Answer:
(c) underemployment

Question 25.
Multiplier is equal to ………..:
(a) Changes in income/Changes in investment
(b) Change in income
(c) Changes in investment
(d) None of these
Answer:
(a) Changes in income/Changes in investment

Question 26.
Fiscal policy is also called ………..:
(a) Monetary policy
(b) Budgetary policy
(c) Economic policy
(d) None of these
Answer:
(b) Budgetary policy

Question 27.
In case of monetary policy excess and deficient demand is possible through ………..:
(a) Bank rate policy
(b) Credit control
(c) (a) and (b)
(d) None of these
Answer:
(c) (a) and (b)

Question 28.
Number of central bank in a country is ………..:
(a) Two
(b) One
(c) Three
(d) None of these
Answer:
(b) One

Question 29.
Central bank grants loan to ………..:
(a) General Public
(b) Private Companies
(c) Commercial Bank
(d) All the above
Answer:
(c) Commercial Bank

Question 30.
Credit creation is controlled by ………..:
(a) Government
(b) Central Bank
(c) Commercial Bank
(d) None of these
Answer:
(b) Central Bank

Question 31.
Which one of the following is the tax revenue of the government?
(a) Excise
(b) Wealth tax
(c) Entertainment tax
(d) All of these
Answer:
(d) All of these

Question 32.
Balance of payment deficit can be corrected by ………..:
(a) Import substitution
(b) Export promotion
(c) Increase in production
(d) All the above
Answer:
(d) All the above

Question 33.
……….. is the short form of export-import:
(a) EI
(b) EXI
(c) EXIM
(d) EIM
Answer:
(c) EXIM

Question 34.
Which deposit pay more interest?
(a) Saving account
(b) Current account
(c) Fixed account
(d) All three
Answer:
(c) Fixed account

Question 35.
Who has the right to issue the paper note in India?
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) None of the above
Answer:
(c) Reserve Bank of India

Question 36.
The name of Central Bank in India is:
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Punjab National Bank
Answer:
(c) Reserve Bank of India

Question 37.
14 Banks of India were nationalized in:
(a) 1960
(b) 1969
(c) 1980
(d) 1985
Answer:
(b) 1969

Question 38.
Which economist has given the transaction approach of money?
(a) Marshall
(b) Pigou
(c) Fischer
(d) Robertson
Answer:
(c) Fischer

Question 39.
State Bank was established in:
(a) 1951
(b) 1955
(c) 1957
(d) 1966
Answer:
(b) 1955

Question 40.
Imperial Bank of India was transformed in:
(a) Reserve Bank
(b) Central Bank
(c) State Bank
(d) Punjab National Bank
Answer:
(c) State Bank

Question 41.
Keynes theory is associated with:
(a) Effective demand
(b) Propensity to consume
(c) Propensity to save
(d) All the above
Answer:
(d) All the above

Question 42.
On which of the following Keynesian theory of employment depends upon?
(a) Effective demand
(b) Supply
(c) Production efficiency
(d) None of these
Answer:
(a) Effective demand

Question 43.
If MPC = 0.5, then multiplier (k) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0
Answer:
(c) 2

Question 44.
Which factor affects Keynesian multiplier?
(a) Marginal propensity to save
(b) Marginal propensity to consume
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 45.
Keynes derived investment multiplier from Kahn’s:
(a) Income multiplier
(b) Consumption multiplier
(c) Employment multiplier
(d) None of these
Answer:
(c) Employment multiplier

Question 46.
In the situation of deflationary gap?
(a) Demand increases rapidly
(b) Supply increases rapidly
(c) Both demand and Supply are equal
(d) None of these
Answer:
(b) Supply increases rapidly

Question 47.
Which items are included in Balance of payment?
(a) Visible items
(b) Invisible items
(c) Capital transfers
(d) All the above
Answer:
(d) All the above

Question 48.
Which one is the item of capital account?
(a) Govt, transactions
(b) Private transactions
(c) Foreign direct investment
(d) All the above
Answer:
(d) All the above

Question 49.
Which one is the item of current account?
(a) Import of visible items
(b) Expenses of Tourists
(c) Export of visible items
(d) All the above
Answer:
(d) All the above

Question 50.
The components of Balance of payment are:
(a) Current account
(b) Capital account
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)