BBA MULTIPLE CHOICE QUESTIONS

1. The advantage of the public debt are following:
(a) Helpful in freeing the government from casual crisis
(b) A safe source of investment of public
(c) Helpful in executing public work programmes
(d) All of the above

2. The exchange rate which allows the country to adjust the value of the currency according to the foreign exchange market is called
(a) Gold standard
(b) Fixed exchange rate
(c) Floating exchange rate
(d) Inflation targeting


3. The statutory liquidity ratio (SLR) is the amount that the bank has to maintain in the
form of cash, gold and approved securities.
(a) Export finance
(b) Cash reserve ratio
(c) Statutory liquidity ratio
(d) Gold Standard

4. A branch of Economics which deals with the economy of consumers or households or individual firms is called
(a) Stock Variable
(b) Microeconomics
(c) Macroeconomics
(d) Flow Variable


5. Which organization estimates the national income in India?
(a) Reserve Bank of India
(b) Bureau of Indian Standard
(c) Central Statistical Organisation
(d) State bank of India

6. The proportion of the total and marginal incomes which people spend on consumer
goods and services is called
(a) Average propensity to consume
(b) Marginal propensity to consume
(c) Both of the above
d) None of the above

7. A persistent and considerable increase in the general price level over a period of time :
(a) Indexation
(b) Deflation
(c) Inflation
(d) Stagnation

8. The excess of planned expenditure for the current year over the total projected revenue of the budget year is called
(a) Fiscal Deficit
(b) Surplus Budget
(c) Revenue Deficit
(d) Deficit Budget

9. It is the number which multiplied by the change in the determinants of national Investment gives the total increase in the national income.
(a) Foreign trade multiplier
(b) Fiscal Multiplier
(c) Investment Multiplier
(d) Government expenditure multiplier
10. The percentage of bank reserves that have to hold for a specified period of time with Central Bank is :
(a) Statutory Liquidity Ratio
(b) Cash Reserve Ratio
(c)Floating exchange rate
(d) Monetary Policy

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