Economics MCQs

Page No. 405

Where ‘Nikkei Stock average’ applies ?


aMainly to Korean equities


b Mainly to international equities


cMainly to Japanese equities


dMainly to US equities



Percentage of total industry sales that a particular company controls is called ?


aLion’s share


b Market share


cNet share


d Holding share


View Answer Market share

Which of the following is rate of interest the major international banks charge each other for borrowings ?


a New York Interbank Offered Rates (NIBOR)


binternational Interbank Offered Rates (IOBOR)


cLondon Interbank Offered Rate (LIBOR)


dUSA Interbank Offered Rate (UIBOR)



What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?


a. Solvency


b Crash


cBankruptcy


d Liquidation


View Answer Liquidation

Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?


aA free market is necessary for economic growth and stability


bRegulation is necessary for economic growth and stability


cActive government intervention is necessary to ensure economic growth and stability


dGovernment intervention is not necessary to ensure economic growth and stability



Which form of business organization falls between a corporation and partnership ?


a joint company


bJoint stock company


cLimited joint company


d Limited Company


View Answer Joint stock company

Who is insolvent_______________? A firm that is unable to pay debts


a A firm that is unable to pay debts


b. A firm that is liquidated


c A firm that is for sale


dA firm that has more liabilities than assets



Which money is called Hot money ?


aThat moves across country borders in response to interest rate differences


b That moves away when the interest rate differential


cBoth of them


dNone of them


View Answer Both of them

What is called that legal process through which a company receives a charter and state in which it is based allows it to operate as corporation ?


aGoing legal


bBook corporation


c Chartered corporation


dIncorporation


View Answer Incorporation

What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?


a Bonus


bUp level


c Goodwill


d Upgradation


View Answer Goodwill

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