Banking & Financial Awareness MCQ Set-2

Find out the most important Financial Awareness MCQ for IBPS PO, SBI PO, IBPS RRB, Insurance examinations and various other competitive examinations of BFSI sector in India.

Q.1 When the goods and services produced by the residents of a county are valued at a fixed prices of the base year, the National Income is called as:

A. National Income at Current Price

B. National Income at Constant Price

C. National Income at Fixed Price

D. None of these

Answer: B. National Income at Constant Price

Note: Similarly, if the prices of the goods and services are valued at the current prices, then the National Income is called as National Income at Current Price.

Q.2 Consider the following statements

I. X lives in India and his total income for the FY 2020-2021 in Rs. 2000000.00

B. Y lives in India but Y is a American Citizen and his income for the FY 2020-2021 is Rs. 500000000.00

C. Z lives in America and Z is an Indian citizen and his income for the FY 2020-201 is Rs. 100000000000.00

Based on the above statements, whose income will be counted for calculating the GDP of India for the FY 2020-2021?

A. Only X

B. Both X & Y

C. Both X & X

D. X, Y and Z all

Answer: B. Both X & Y

Note: For calculating GDP, income generated by foreigners living in a country is included but income generated by nationals of a county, outside the country is not included.

Q.3 Consider the statements mentioned in the Question 2 again.

Based on the statements, whose income will be counted for calculating the Gross National Product (GNP) of India for the FY 2020-2021?

A. Only X

B. Both X and Y

C. Only Z

D. Both X and X

Answer: A. Only X

Note: Gross National Product (GNP) is the monetary value of all final goods and services produced by the residents of a country in a year.

Q.4 Which of the following is the CORRECT formula for calculating Gross Domestic Product (GDP) of a country?

A. GDP = Total consumption expenditure + Total Investment Expenditure + Total Government Expenditure + (Export – Import)

B. GDP = Total consumption expenditure + Total Investment Expenditure  + (Export – Import)

C. GDP = Total consumption expenditure + Total Investment Expenditure + Total Government Expenditure + (Import – Export)

D. None of these

Answer: A. GDP = Total consumption expenditure + Total Investment Expenditure + Total Government Expenditure + (Export – Import)

Q.5 Which of the following is the CORRECT formula of Net Domestic Product (NDP)?

A. NDP = GDP- Taxes

B. NDP = GDP – Depreciation

C. NDP = GDP + Depreciation

D. None of these

Answer: B. NDP = GDP – Depreciation

Q.6 Which of the following is the CORRECT formula of National Income (NI)?

A. National Income = Net National Product – Indirect Taxes + Subsidies

B. National Income = Gross Domestic Product – Indirect Taxes + Subsidies

C. National Income = Gross National Product – Indirect Taxes + Subsidies

D. None of these

Answer: A. National Income = Net National Product – Indirect Taxes + Subsidies

Note: Net National Product = Gross National Product – Depreciation

Q.7 Which among the following is excluded while calculating the “Factor Cost”?

A. Government grants

B. Subsidies

C. Indirect Tax

D. None of these

Answer: C. Indirect Tax

Note: Factor cost is the total cost for producing goods or services including government grants and subsidies but excludes indirect tax.

Q.8 Which among the following is excluded while calculating the “Market Price”?

A. Excise duty

B. GST

C. Custom duty

D. Government Subsidies

Answer: D. Government Subsidies

Note: Market price refers to the actual transacted price and it includes excise duty, custom duty, GST but it excludes government subsidies.

Q.9 How many methods are present to measure the National Income?

A. 2

B. 3

C. 4

D. 5

Answer: B. 3

Note: National Income can be measured through 3 methods viz Production Method, Income Method and Consumption of Expenditure method.

Q.10 Human Development Index is NOT based on which of the following index?

A. Life Expectancy Index

B. Standard of Living Index

C. Educational Attainment Index

D. Global Hunger Index

Answer: D. Global Hunger Index

Note: Human Development Index (HDI) is based on three indices and these are Life Expectancy Index (LEI), Educational Attainment Index (EAI) and Standard of Living Index (SLI).

List of Banking & Financial Awareness MCQ sets from GKLead.com

Tags: , , , ,