G.K. QUIZ - Related to Banking Awareness

1.     A growing country is one with –

(1) rising GNP at constant price

(2) rising GNP at current price

(3) constant GNP at constant price

(4) rising GNP at current price

(5)None of these

2.     Devaluation of currency leads to –

(1) fall in domestic prices

(2) increase in domestic prices

(3) No impact on domestic prices

(4) erratic fluctuation in domestic prices

(5) None of these

3.     Economic development has been retarded mainly due to –

(1) poor infrastructural facilities

(2) Preponderances of small scale in duties –

(3) slow capital accumulation

(4) All of above

(5) None of the above

4.     MOD vat is related to-

(1) sales tax                         (2) wealth tax

(3) Income tax                     (4) excise duty

(5) all of above

5.     Net export are negative when –

(1) export are more than import

(2) Import are more than export

(3) Net investment is positive

(4) Both (2),(3)

(5) None of above

6.     NNP is equal to-

(1) GNP+depreciation

(2) GNP - depreciation

(3) GNP+export

(4) GNP-export

(5) None of the above

7.     Payment such as unemployment insurance , food stamps , welfare payments are a part-

(1) social security contribution

(2) Provident fund

(3) Transfer payment

(4) subsidy payment

(5) All of the above

8.     The balance of payment –

(1) is also affected by capital movement

(2) Is never affected by capital movement

(3) Nothing can be side in this regard

(4) The balance is not concerned with capital movement.

(5) None of the above

9.     The balance of trade is also known as –

(1) capital t transfer

(2) Grain for trade

(3) Visible balance

(4) Actual balance

(5) None   

10.  Short-term finance is usually a  period ranging up to-

(1) 5month              (2) 10 month

(3) 12 month            (4) 6month

(5) 15month

Answers:

1. (1)           2. (2)     3. (2)       4. (4)     5. (3)

6. (2)           7. (3)     8. (1)       9. (3)   10. (4)

Explanation of Ques. 6

 Net national product(NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period ( GNP - Depreciation)

The Gross National Product (GNP) is the value of all the goods and services produced in an economy, plus the value of the goods and services imported, less the goods and services exported.

Depreciation(also known as consumption of fixed capital) measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.

Net national product (NNP) also equals total compensation of employees + net indirect tax paid on current production + operating surplus.