MCQs for NTS/FTS/ATS/PTS Test

General Knowledge MCQs

ECONOMICS MCQs

  1. The Balance of payment is understood as:

(a) The balance of amount after paying debt

(b) The balance of income and expenditure in the annual budget

(c) The balance between a nation's expenditure on imports and its receipts from exports.

(d) None of the above

  1. Pinpoint the main objectives of World Trade Organization (WTO):

(a) Fix a quota for each member country trading in International Market

(b) To eliminate quota system and promote free competition in trade.

(c) To secure Third World markets for American and European goods

(d) To abolish completely custom duties on items of trade within member countries

  1. The number of family welfare centres in Punjab are:

(a) 560 (b) 940

(c) 1230 (d) 1503

  1. Which of the following statement is not true?

(a) The World Bank has to affiliates, the International Development Association and the International Finance Corporation.

(b) The membership of the IMF is the principal condition for membership of the World Bank.

(c) The World Bank provides loans to such countries whose balance of payments condition is not favourable

(d) The World Bank finance all kinds of capital infrastructure such as roads and railways, telecommunications, seaports and power facilities in the developing countries.

 

  1. Identify the main functions of IMF:

(a) To provide loans to the members of UNO for  development of Industrial infra structure

(b) To make foreign exchange resources available for those countries that want to import essential items of food

(c) To make foreign exchange resources available for those countries facing balance of payments difficulties

(d) None of the above

  1. The United Nations celebrated “International Year of

Shelter for the Homeless” in:

(a) 1985 (b) 1987

(c) 1990 (d) 1992

  1. The Islamic Development Bank would provide half a billion US dollars in Capital to create--

(a) Private Pan Islamic Bank

(b) International Islamic Foundation for Science and Technology

(c) Refugees Rehabilitation Fund

(d) None of the above

  1. The domestic production of crude oil in the country is  approximately (per day)

(a) 44,300 Barrels (b) 57,700 Barrels

(c) 65,200 Barrels (d) 70,000 Barrels

  1. The regulations of World Trade Organization (WTO) shall be enforced from:

(a) 1 January 2002 (b) 1 January 2003

(c) 1 July 2004 (d) 1 January 2005

  1. The biggest market of Pakistani exports is:

(a) France (b) Saudi Arabia

(c) U.S.A (d) U.K.

  1. The biggest market of Pakistani Imports is:

(a) USA (b) U.K.

(c) Russia (d) Japan

  1. The Government has reduced the rate of profit on National Saving Schemes primarily for the reason of:

(a) Enhancing the level of saving rate  

(b) Discouraging the blockage of money in such schemes

(c) To encourage the investors to invest their capital in

active business ventures

(d) To bridge the gap between their profit rate and Bank's mark up rate on loans

  1. Pakistan’s domestic demand for petroleum products in growing annually with the percentage of:

(a) 3 percent (b) 5 percent

(c) 8 percent (d) 15 percent

  1. The Women’s Division was created in the Federal Government in January:

(a) 1974 (b) 1977

(c) 1979 (d) 1981

  1. The first “World Population Conference” under the United Nations was held in 1975 at:

(a) Kampala (b) Bucharest

(c) Nairobi (d) Ankara

  1. Difference between a countrys exports and imports is:

(a) Trade Balance (b) Trade Deficit

(c) Trade Surplus (d) Volume of Trade

  1. Cash crop is the crop:

(a) Which gives high profit to the farmers

(b) Which is grown only for sale

(c) Which is grown after taking Cash loan from Banks

(d) None of the above one

  1. The lowering of the value of a currency in the international market or against specific other currencies, which makes exports cheaper and imports expensive is called:

(a) Devaluation (b) Revolution

(c) Inflation (d) Deflation

  1. The value of the output of all goods and services produced within a nation's borders, normally given as a total for the year. It thus includes the production of foreign owned firms within the country, but excludes the income from domestically owned firms located abroad, is called:

(a) Gross National Product

(b) Gross Home Products

(c) Gross Domestic Product

(d) General Domestic Production

  1. Dow Jones index' is the scale:

(a) For measuring Industrial profit in a year

(b) For measuring the average share price of leading Japanese companies

(c) For measuring the average share price of major US industrial companies

(d) None of the above

  1. Embargoes are designed to:

(a) Promote trade of prohibited goods

(b) Restrict trade of particular commodities

(c) Restrict trade of drugs

(d) None of the above

  1. When a group of countries have removed all tariffs quotas and export subsidies on trade among themselves – that is called:

(a) Laissez faire (b) Liberal Trade region

(c) Free Trade zone (d) All of the above one

  1. Which one among the following statements is truly explain the `Laissez Faire' theory?

(a) State should refrain from all intervention in economic affairs

(b) State should manage every field of economic activities for the benefit of the public

(c) There should be fair distribution of wealth in the society

(d) None of the above one

  1. The lowest number of people living below the poverty line among the SAARC Countries are in:

(a) Bangladesh (b) Pakistan

(c) Nepal (d) Sri Lanka

  1. Family Planning in rural areas hampered mainly due to:

(a) Deficiency in planning

(b) Lack of knowledge

(c) Psychological and Social Orthodoxy

(d) Non-availability of devices

  1. Both-way trade between two countries is also known as:

(a) Government Expenditure

(b) Fiscal Revenue

(c) Volume of Trade

(d) Terms of Trade

  1. Trade by exchange of Commodities is called:

(a) International Trade (b) Foreign Exchange

(c) Line of Credit (d) Barter Trade

  1. Tax on a Commodity according to its volume is:

(a) Real tax (b) Direct Tax

(c) Indirect Tax (d) Ad Valorem Tax

  1. Who is the first Tax Mohtasib of Pakistan?

(a) Justice (R) Saleem Kazmi

(b) Justice (R) Allah Nawaz

(c) Justice (R) Ijaz Nisar

(d) Justice (R) Saleem Akhtar

  1. Safety stock of grains held by the government is:

(a) Surplus stock (b) Overhead stock

(c) Buffer stock (d) Overall stock

  1. The lowest price below which a thing will not be sold is called its:

(a) Floor price (b) Ceiling price

(c) Real price (d) Average price

  1. When no tariffs are imposed on exports and imports, it is called:

(a) Two way trade (b) Exchange trade

(c) Free trade (d) Selective trade

  1. An economy when private and government enterprises both operates, is:

(a) Free economy (b) Closed economy

(c) Joint economy (d) Mixed economy

6

  1. Agreement between two countries is:

(a) Multi lateral agreement (b) Bilateral agreement

(c) Single agreement (d) Special agreement

  1. Family Planning Programme was started in Pakistan in:

(a) 1952 (b) 1955

(c) 1957 (d) 1959

  1. What percentage of population in Pakistan is under the age of 15?

(a) 38% (b) 40%

(c) 45% (d) 50%

  1. A free port is the port where:

(a) Less duties are paid

(b) No duties and no restrictions

(c) Selective duties are paid

(d) Restrictions on imports but not on exports

  1. Which country has maximum foreign project investments in Pakistan?

(a) USA (b) U.K

(c) China (d) Japan

  1. What do you understand by the term "Kerb" in foreign currency dealings:

(a) The exchange rate of currencies in the open market

(b) The exchange rate of currencies determined by the State Bank of Pakistan

(c) All sort of Monetary dealings in foreign currencies within the stock exchange

(d) None of the above one

  1. Financial year of USA starts from:

(a) 1st January (b) 1st March

(c) 1st July (d) 1st April

  1. In the budget 2001-2002, the government has decided to wind-up one of the following privilege of the new employees:

(a) House rent (b) Benevolent fund

(c) Pension (d) None of the above

  1. In the budget 2001-2002, the largest sector of current expenditure is allocated on:

(a) Defence

(b) Subsidies

(c) Running of civil government

(d) Debt servicing

  1. In the budget 2001, 2002, what amount the government has allocated to undertake new water projects in the country:

(a) Rs. 2 billion (b) Rs. 4 billion

(c) Rs. 5 billion (d) Rs. 3 billion

  1. General Sales Tax, under the constitution 1973 is a:

(a) Federal Subject (b) Provincial Subject

(c) Concurrent subject (d) None of the above one

  1. Which of the following country will provide financial aid for the construction of Gwadar Port and Makran Coastal highway in Balochistan?

(a) China (b) Canada

(c) USA (d) Russia

  1. The world's most Powerful super computer is called:

(a) ASCI White (b) ASCI Red

(c) ASCI Pink (d) None of the above

  1. The outflow of the best and brightest students from developing countries is called:

(a) Migration of intellectual

(b) Shift of Brain

(c) Brain drain

(d) Transfer of mind

  1. Which five year plan of Pakistan is yet to be implemented?

(a) 7th (b) 8th

(c) 9th (d) 10th

  1. The per capita income of Pakistan is approximately:

(a) 350 US Dollars (b) 408 US Dollars

(c) 483 US Dollars (d) 503 US Dollars

  1. Which province has the highest literacy rate?

(a) N.W.F.P. (b) Balochistan

(c) Punjab (d) Sindh

  1. According to a recent report of International Labour Organization (ILO) the number of people in the World living on two dollars or less a day are:

(a) 2 billion (b) 3 billion

(c) 3.5 billion (d) 4 billion

  1. Pinpoint the source, through which budgetary gap is financed in Pakistan?

(a) External borrowing

(b) Domestic non-Bank borrowing

(c) Borrowing from to banking system

(d) All the above sources

  1. If a country wants to achieve rapid rate of economic development, it must save at least:

(a) 25% Gross National Products each year

(b) 30% Gross National Products each year

(c) 35% Gross National Products each year

(d) 40% Gross National Products each year

  1. Identify the main reason of 'deficit financing' in Pakistan-

(a) Low savings

(b) Rapid growth of Population

(c) Inadequate banking facilities

(d) All the above one

  1. Pakistan's domestic saving rate of GNP is:

(a) 7% (b) 9%

(c) 11% (d) 14%

  1. Which is the single largest component of GDP of Pakistan?

(a) Industry (b) Agriculture

(c) Foreign remittances (d) None of the above

  1. Which of the following sector is the main source of foreign exchange earnings in Pakistan?

(a) Industry (b) Agriculture

(c) Both the above (d) None of the above one

  1. Identify the duration of the First five year plan of Pakistan:

(a) 1948 - 52 (b) 1955 – 60

(c) 1960 - 65 (d) 1962 - 67

  1. What is the share of wheat crop in total cropped area of

Pakistan?

(a) 18.05% (b) 28.07%

(c) 37.01% (d) 48.01%

  1. The total area of Pakistan is 80 million hectares, out of which area under forests is:

(a) 3.5% (b) 4.8%

(c) 7.3% (d) 9.3%

  1. OPEC's largest oil producing country is:

(a) Kuwait (b) Iran

(c) Saudi Arabia (d) U.A.E

  1. The Aid to Pakistan Consortium now renamed as:

(a) IMF

(b) World Bank

(c) Assistance to Pakistan Forum

(d) Pakistan Development Forum

  1. The ratio of males and females population of Pakistan is equal in:

(a) Quetta (b) Peshawar

(c) Lahore (d) Rawalpindi

  1. United Nations World Food Programme commenced its operation in Pakistan during:

(a) 1963 (b) 1965

(c) 1968 (d) 1972

  1. The country with highest ratio of urban population in South Asia is:

(a) India (b) Sri Lanka

(c) Pakistan (d) Nepal

  1. The Government of Pakistan has given certain incentives to farmers for growing black tea on experimental basis at:

(a) Peshawar (b) Mardan

(c) Mansehra (d) D.G. Khan

  1. In which of the following country, population growth rate is lowest?

(a) Japan (b) India

(c) Sri Lanka (d) Indonesia

  1. In which of the following country, the population growth rate is lowest?

(a) Pakistan (b) China

(c) Indonesia (d) Bangladesh

  1. The largest population density is in:

(a) Pakistan (b) Bangladesh

(c) India (d) Sri Lanka

  1. The World's population has now reached on:

(a) 6 billion (b) 8 billion

(c) 9 billion (d) 10 billion

  1. The study of science of population is called :

(a) Geography (b) Demography

(c) Plutocracy (d) Sociology

  1. The 5th national census recorded the total population of Punjab with annual growth rate of :

(a) 47.292 million -2.51% (b) 72.585 million -2.01%

(c) 73.585 million -2.61% (d) 63.433 million -3.01%

  1. The population growth rate in the country is:

(a) 2.01% (b) 2.61%

(c) 3.01% (d) 3.61%

  1. Identify the total percentage of population in the country, having access to safe and clean water supply.

(a) 40% (b) 52%

(c) 59% (d) 68%

  1. The population density in Punjab per square kilometer is approximately : (persons)

(a) 353 (b) 480

(c) 590 (d) 882

  1. Identify the member of G-8 organization, which will provide 300 million US dollars to Pakistan in 1999 for certain development projects?

(a) America (b) United Kingdom

(c) Germany (d) Japan

  1. In the total population of Pakistan, the percentage of income tax payers is only :

(a) 1.05% (b) 1.75%

(c) 2.01% (d) 3.4%

  1. What do you understand by the term "deflation"?

(a) Excess circulation of money, causing dearness of goods

(b) Increase in interest rates diverts money into savings and reduce circulation of money causing prices to fall.

(c) Devaluation of local currency to the larger extend.

(d) Decline in remittances from abroad, causing economic hardships for the Government

  1. The maximum number of persons populated in one square kilometer of area are in:

(a) Punjab (b) Sindh

(c) N.W.F.P. (d) Islamabad

  1. The minimum number of persons populated in one square kilometer of area are in:

(a) Islamabad (b) FATA

(c) Balochistan (d) N.W.F.P.

  1. In the total population of Pakistan, the share of Punjab province is approximately :

(a) 50% (b) 55%

(c) 60% (d) 62%

  1. In the total population of Pakistan, the share of Balochistan is approximately :

(a) 3% (b) 5%

(c) 7% (d) 9%

  1. Hydel power Stations of `WAPDA' are generating electricity approximately:

(a) 3500 mw (b) 4250 mw

(c) 4880 mw (d) 5200 mw

  1. The total demand of power (electricity) in the country at present is approximately:

(a) 7000 mw (b) 9000 mw

(c) 12000 mw (d) 14000 mw

  1. In which of the following districts, the government of Pakistan has given incentives package to farmers for growing black tea on experimental basis?

(a) Rawalpindi (b) Mardan

(c) Mansehra (d) Noshki

  1. UNESCO required one country must spend at least one percent of its GDP on Science and Technology but Pakistan is spending only:

(a) 0.02% (d) 0.05%

(c) 0.07% (d) 0.08%

  1. In which division of Punjab, the ratio of males and females is equal?

(a) Bahawalpur (b) Faislabad

(c) Lahore (d) Rawalpindi

  1. Which of the continents has the lowest population growth rate?

(a) Asia (b) Australia

(c) North America (d) Europe

  1. With the present population growth rate, Pakistan would  become world’s 3rd most populated country by the year:

(a) 2020 (b) 2025

(c) 2030 (d) 2050

  1. In which Division of Punjab, the ratio of females in population is 10% more than males?

(a) Multan (b) D.G. Khan

(c) Gujranwala (d) Lahore

  1. Which is the most urbanized division of Punjab?

(a) Multan (b) Rawalpindi

(c) Sargodah (d) Lahore

  1. In the ten (10) most populated cities of Pakistan, Sialkot is on number :

(a) Four (b) Six

(c) Seven (d) Nine

  1. In the ten most populated cities of Pakistan, Rawalpindi is on number:

(a) Three (b) Four

(c) Five (d) Six

  1. Which region of Punjab is free from water-logging Problem?

(a) Gujranwala (b) Lahore

(c) Rawalpindi (d) Multan

  1. What is the main reason of the flour crisis in the country?

(a) Wheat sowing area has been replaced with sugar cane crop by the farmers.

(b) A large portion of wheat Crop has been damaged by pests.

(c) Smuggling of wheat flour to other country

(d) None of the above

  1. Identify the length of Islamabad-Peshawar section of Motorway:

(a) 96 km (b) 133 km

(c) 144 km (d) 154 km

  1. Which Division of Punjab produces maximum wheat crop?

(a) Bahawalpur Division (b) Faislabad Division

(c) Lahore Division (d) Multan Division

  1. "Rawal" and "Hajveri" are the two varities of one of the following crops.

(a) Rice (b) Cotton

(c) Soyabean (d) Wheat

  1. The share of Cotton crop in the total cropped area of Punjab is approximately.

(a) 16.0% (b) 18.0%

(c) 25.0% (d) 39.0%

  1. Which division of the Punjab Produces maximum Sugarcane crop?

(a) Faisalabad (b) Bahawalpur

(c) Gujranwala (d) Multan

  1. Out of total wheat production in Pakistan, Punjab contributes around :

(a) 65% (b) 73%

(c) 79% (d) 83%

  1. The largest portion of saline area of land in Punjab is in:-

(a) Faisalabad Divisional (b) D.G. Khan Division

(c) Multan Division (d) Bahawalpur Division

  1. The total area Pakistan has under forestation is estimated at:

(a) 5,062 million acres (b) 8,095 million acres

(c) 9,900 million acres (d) 12,300 million acres

  1. National income is the sum of:

(a) Income of all the rich people of the country

(b) Income of all industrialists of the country

(c) Income of all the agriculturists in the country

(d) Income of all the people in the country during a year

  1. G.D.P. (Gross Domestic Product) is the value of all goods and services:

(a) Produced in the country with foreign resources during a year

(b) Produced within the geographical boundaries of a country during a year

(c) Produced by the factors belonging to the country working in or outside the country (d) None of the above

  1. G.N.P. (Gross National Product) is the total value of goods and services:

(a) Produced in a country with domestic or foreign factors

(b) Produced by the factors belonging to the country working in or out of the country

(c) Produced by the factors belonging to the country working abroad

(d) None of the above

  1. National income is essentially composed of:

(a) Annual income of Central Government

(b) Total wealth of a Nation

(c) Income derived from taxes by the Central Government

(d) Annual income of citizens of a country

  1. Which of the following of Punjab has the lowest population density?

(a) Rajanpur (b) Bahawalpur

(c) Layyah (d) D.G. Khan

  1. National income is essentially composed of:

(a) All wealth of a nation

(b) Annual income of the central government

(c) All incomes of the people of the country in a year

(d) Income derived from taxes by the central government

  1. The value of the vegetables a retired school teacher grows in his lawn is excluded from the calculation of national income because:

(a) Retired person's activities are not included in calculating national income

(b) The goods are not exchanged through the market mechanism

(c) It would involve double counting

(d) There is no way of imputing the value of such goods.

  1. Which of the following activity will be considered as investment?

(a) Construction of a new house

(b) Purchasing a newly floated share of a joint stock company

(c) Building a new factory

(d) All the above

  1. Real national income increases if:

(a) Volume of goods and services increases

(b) Prices of goods and services increase

(c) Consumer's real income decrease

(d) None of the above one

  1. Identity the false statement among the followings:

(a) If prices rise, real income also rises

(b) In calculating national income, retirement pension are excluded

(c) Stock of goods not sold by the producer, is excluded from GNP

(d) None of the above one

  1. Per capita income is:

(a) Average income of the working class

(b) Average income of the people of a country during a year

(c) Average income of labourers only

(d) None of the above one

  1. Which of the following is a real cause for low per capita income of Pakistan?

(a) There is lack of Natural resources

(b) These is over-population

(c) Unfavourable climatic conditions

(d) All of the above

  1. Economic development means:

(a) Increase in agricultural production of a country

(b) Increase in mineral resources of the country

(c) Increase in real national income and standard of the living of the people of country

(d) Increase in consumption expenditure of the country

  1. Which of the following statement is false?

(a) Economic development is a process whereby an economy real national income increases over a long period of time

(b) Economic development is measured by the rate of population increases

(c) As a result of economic development of a country, the share of industrial sector in the national income increases

(d) Per capita income is a better measure of economic development than the national income.

  1. Which of the changes below is most likely to lead directly to an increase in the income growth rate?

(a) An increase in wages

(b) An increase in interest rates

(c) An increase in the balance of payments deficit

(d) An increase in capital investment

  1. Economic planning means:

(a) Planning family size by limiting the number of children

(b) Making decisions as to what is to be produced, how when and where it is to be produced and to whom it is to be allocated on the basis of comprehensive survey of the economic system as a whole

(c) Planning to increase agricultural and industrial production

(d) None of the above

  1. How much of GDP is spent on Agricultural Research in Pakistan?

(a) 0.02 percent (b) 0.6 percent

(c) 1.5 percent (d) 1.9 percent

  1. 11 July every year is being celebrated under United Nations as “World Population Day” since:

(a) 1985 (b) 1987

(c) 1989 (d) 1991

  1. The main reason why cheques can be regarded as money is that:

(a) They are accepted by most people

(b) They act as receipts

(c) They can be written for any amount

(d) They can be sent safely by post

  1. Of all methods of payment, the recognized legal tender is:-

(a) Cheques

(b) Bank notes/metalic coins

(c) Bills of exchange

(d) Promissory notes

  1. Token coins are:

(a) Not legal tender

(b) Valueless

(c) Worthless than the value of the metal they contain

(d) Worth more than the value of the metal they contain

  1. Who issues one-rupee coin in Pakistan?

(a) Government of Pakistan (b) State Bank of Pakistan

(c) Both of the above (d) None of the above

  1. Who issue two-rupee note in Pakistan?

(a) Government of Pakistan

(b) State Bank of Pakistan

(c) Both of the above

(d) None of the above

  1. Who issue ten-rupee note in Pakistan?

(a) Government of Pakistan

(b) State Bank of Pakistan

(c) Both of the above

(d) None of the above

  1. Which of the following statement is true?

(a) In barter system, goods are exchanged with goods

(b) Token money has its face value equal to the value of the metallic content

(c) One rupee note is convertible paper money

(d) Silver and gold full-bodied coins circulated these days.

  1. Which of the following statement is true?

(a) Only the person in whose favour a bearer cheque is written can cash this cheque

(b) Crossed cheque can be got cashed by any one

(c) Order cheque can be got cashed on identification

(d) If the money unit is not scarce, it ceases to be used as money.

  1. Which of the following statement is false?

(a) There is no difference in bearer and order cheque

(b) Payment of Bill of Exchange (sight) is made immediately

(c) Pakistan has a strong stock exchange market

(d) A cheque is a form of currency note

  1. By value of money is meant?

(a) Power of a good to command other things in exchange

(b) Power of money to command goods and services in exchange

(c) Power of a currency note to command coins in exchange

(d) Power of money to command foreign currency.

  1. According to "Tausing":

(a) Double the quantity of money and other things, being equal, the prices will be twice as high as before and value of money one half

(b) Double the quantity of money and value of money will double

(c) Double the quantity of money and other things remaining the same the prices will be half of what they were before and value of money will be double as before

(d) None of the above

  1. "Inflation" means that money:

(a) Rises in value

(b) Falls in value

(c) Become scarce

(d) becomes larger in denomination

  1. "Inflation" may be defined as:

(a) Rapidly increasing prices in a certain sector or industry

(b) A temporary increases in the prices of several goods

(c) A general and consistent increase in prices in an economy

(d) Too little money choosing too many goods

  1. Which of the following statement is true?

(a) Devaluation causes an increase in the value of money

(b) Fixed income groups are benefited by increase in prices

(c) A decrease in production brings a decrease in the value of money

(d) None of the above

  1. Which of the following groups is most likely to benefit from inflation?

(a) Exporters (b) Debtors

(c) Pensioners (d) Creditors

  1. Which of the following must be a result of inflation?

(a) Higher interest rates

(b) A rise in the exchange rate

(c) An increase in the value of money

(d) A reduction in the value of money

  1. Can money perform the following functions?

(a) To compare the value of goods

(b) To act as medium of exchange

(c) Both of the above

(d) None of the above

  1. Which of the following will be described as "cost push" inflation?

(a) An increase in imported oil prices

(b) An increase in money supply

(c) An increase in unemployment allowances

(d) A reduction in income tax.

  1. Which of the following statement is false? 

(a) Inflation brings an increase in production

(b) Inflation makes savings increase

(c) The main cause of inflation in Pakistan is deficit financing and excessive increase in money supply

(d) None of the above

  1. Will the following benefit in real terms during a period of high and rising inflation:

(a) Someone who hoards money

(b) Someone whose income comes from securities with a fixed rate of interest

(c) Some one who owes money and is repaying the debt

(d) None of the above

  1. A stock exchange is:

(a) A central market for buying and selling all kind of goods

(b) A place where any businessman can borrow money from the members

(c) A place where a register is kept of all public and private limited companies

(d) A central market for buying and selling all kinds of securities

  1. Which one of the following is not a function of a commercial bank?

(a) Acting as banker to the state

(b) Managing government borrowings

(c) Controlling the money supply

(d) All of the above

  1. The World’s most populous city:

(a) Mexico (b) Beijing

(c) Kolcatta (d) Tokyo

  1. In Asia, the highest density of population (5516 persons per km.) was recorded in:

(a) Singapore (b) Bangladesh

(c) India (d) North Korea

  1. Which of the following is regarded as a liability by choosing banks?

(a) Overdrafts (b) Personal loans

(c) Money at call (d) Deposits of customers

  1. Which of the following policies would be most appropriate for the State Bank of Pakistan to follow if it wished to make it more difficult for the commercial banks to grant loans?

(a) Buying long-term securities in the open market

(b) Raise the percentage of special deposits required

(c) Reduce the liquidity ratio

(d) Borrow through treasury bills rather than long term bonds

  1. Which of the following items in the balance of payments accounts are invisible?

(a) Aviation

(b) Tourism

(c) Interest, profits and dividends

(d) All of the above

  1. "Free Trade" means:

(a) No restriction on the movement of goods from one part of the country to the other

(b) No ban on the import or export of a commodity between countries

(c) Goods exchange between countries with out any currency

(d) None of the above

  1. "Protection" means:

(a) Safeguard of goods and services of a country from being spoiled at the time of export

(b) Safeguard of assets of a country from being destroyed by military attack

(c) Policy of a country to discourage import of certain commodities so as to save the domestic industries from competition with foreign firms

(d) None of the above

  1. Which of the following is not true?

(a) Tariffs can help new industries to become established

(b) Tariffs may divert demand to home industry and so encourage employment

(c) Tariffs encourage home industries to become more efficient

(d) All of the above

  1. Which of the following is false statement?

(a) There is no difference between balance of payment and balance of trade

(b) Balance of trade is also known as balance of visible trade

(c) Balance of repayment consists of three accounts namely current account, capital account and monetary account

(d) All of the above

  1. A country's visible balance is the difference between the:

(a) Volume of goods imported and exported

(b) Value of capital goods exported and imported

(c) Volume of consumer goods imported and exported

(d) Value of goods imported and exported

  1. Which of the following items are not exports of Pakistan?

(a) Wheat (b) Sports goods

(c) Both of the above (d) None of the above

  1. Which of the following is not Pakistan's major imports?

(a) Petroleum (b) Machinery

(c) Surgical goods (d) Tea

  1. Which of the following statement is not false?

(a) Pakistan's balance of payments is mostly favourable

(b) Terms of trade of Pakistan are favourable

(c) Devaluation makes the exports to increase

(d) Pakistan imports cotton and exports wheat

  1. Which of the following statement is false?

(a) Public finance and private finance differ from each other in many respects

(b) In private finance, expenditure is first estimated and then resources are made available to meet this expenditure

(c) Budget period for the public finance is one year

(d) Resources in both public and private finance are limited in relation to demand for expenditure

  1. Which of the following is not correct?

(a) Tax is a general purpose compulsory contribution

(b) Tax payment is optional

(c) A tax payment cannot claim a direct service in lien of tax

(d) None of the above

  1. Taxes which may be shifted from the person upon whom they are originally imposed to another person are:

(a) Special taxes (b) Double taxes

(c) Proportional taxes (d) Indirect taxes

  1. "Sales Tax" is ultimately paid by:

(a) The shopkeepers (b) The producers

(c) The customers (d) The wholesalers

  1. An example of indirect tax is:

(a) Corporation tax (b) Income tax

(c) Rates (d) Tobacco tax





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