Economics MCQs 45


The total sales revenue of a business is called:
(a) Flow
(b) Turnover-✔️
(c) Business
(d) None of the above

Variable costs are those that vary directly with the rate of output e.g., labour costs, fuel and power etc., These are also known as:
(a) Prime costs
(b) Direct costs
(c) Operating costs
(d) All of the above-✔️

The part of current assets financed from long term funds is called:
(a) Working Capital-✔️
(b) Investment
(c) Current Equity
(d) Working Equity

In economics, Gold Standard is the monetary system where in all form of legal tender may be converted on demand, into fixed quantities of gold. In 1816, the first country to go on the gold standard was:
(a) United States
(b) United Kingdom-✔️
(c) Spain
(d) France
[accordion] [item title="Description"]Gold Standard, in economics, monetary system wherein all forms of legal tender may be converted, on demand, into fixed quantities of fine gold, as defined by law. Until the 19th century, most countries of the world maintained a bimetallic monetary system. The widespread adoption of the gold standard during the second half of the 19th century was largely a result of the Industrial Revolution, which brought about a vast increase in the production of goods and widened the basis of world trade. The countries that adopted the gold standard had three principal aims: to facilitate the settlement of international commercial and financial transactions; to establish stability in foreign exchange rates; and to maintain domestic monetary stability. They believed these aims could best be accomplished by having a single standard of universal validity and relative stability; hence the gold standard is sometimes called the single gold standard. [/item] [/accordion]
 A type of association usually formed by banks or railroads as a central agency where members can settle accounts is known as:
(a) Clearing House-✔️
(b) Pawnbroking
(c) Credit Union
(d) All of the above

The type of currency issued by government as legal tender the value of which is based solely on decree or law rather than actual coin or precious metal reserves is termed as:
(a) Soft money
(b) Hard money
(c) Fiat money-✔️
(d) None of the above

Bimetallism is the monetary policy based on the use of two metals, as legal tender without limit and equalized by law in a fixed ratio. Which are these two metals?
(a) Platinum and Gold
(b) Gold and Silver-✔️
(c) Platinum and Silver
(d) All of the above

An association of individuals or corporations formed to conduct a specific financial transaction such as buying a business is known as:
(a) Merger
(b) Joint Venture
(c) Syndicate-✔️
(d) Franchise

The sixth Nobel Prize for Economics was introduced in 1969 in memory of Alfred Nobel. It is financed by
(a) Asian Development Bank
(b) Swedish National Bank-✔️
(c) World Bank
(d) International Monetary fund

An increase in the money supply will cause interest rates to
a. rise
(b) fall-✔️
c. remain unchanged
d. all of above

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