Basic Concepts of Economics MCQs

In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?

A. Spreadsheet
B. Splinter
C. Family growth
D. Butterfly

Rules and Particles that govern the management of an organization are called ?

A. Internal laws
B. By laws
C. Character
D. Memorandum of articles

What is called a check that is returned by a bank because it is not payable, usually because of insufficient funds ?

A. Bounce
B. Return
C. Grossed
D. Refused

A market in which prices are in an upward trend is known as ?

A. Bull market
B. Beamish market
C. Upward market
D. Hot market

Mention the market for trading long-term debt instruments ?

A. Stock market
B. Open market
C. Capital market
D. International market

Common market is an agreement between two or more countries. What this agreement permits ?

A. Free movement of capital and labor
B. Free movement of goods and services
C. Both of them
D. None of them

What is called interest that is paid previously earned interest as well as on the principal ?

A. Gross interest
B. Simple interest
C. Total interest
D. Compound interest

Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?

A. Efficient Account
B. Cost Accounting
C. Ultra-country economic risk
D. Outcome risk

Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?

A. International economic risk
B. Country economic risk
C. Ultra-country economic risk
D. Outcome risk

An evaluation of an individual’s or company’s ability to obligations or its likelihood of not defaulting is known as ?

A. Credibility
B. Credit risk
C. Credit credibility
D. Credit rating

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