SSC CGL Tier II Economics Quiz for the post of AAO

Q1. Which of the following is an example of cash less purchase?
I.  Internet Banking
II. Credit Card
III.Debit Card
(a) Only I
(b) Only II
(c) Only I and II
(d) All of the above

Q2. In the case of an inferior good, the income elasticity of demand is:
(a) positive.
(b) zero.
(c) negative.
(d) infinite.

Q3. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
(a) remain the same.
(b) increase.
(c) decrease.
(d) any of these.

Q4. If regardless of changes in its price, the quantity demanded of a good remains unchanged, then the demand curve for the good will be:
(a) horizontal.
(b) vertical.
(c) positively sloped.
(d) negatively sloped.

Q5. Suppose the price of Pepsi increases, we will expect the demand curve of Coca Cola to:
(a) shift towards left.
(b) shift towards right.
(c) initially shift towards left and then to right.
(d) remain at the same level.

Q6. All of the following are determinants of demand except:
(a) price of related goods.
(b) income.
(c) quantity supplied.
(d) tastes and preferences.

Q7. In India, which of the following has the highest share in the disbursement of credit to agriculture and allied activities?
(a) Commercial Banks
(b) Co-operative Banks
(c) Regional Rural Banks
(d) Microfinance Institutionsa

Q8. The term “Balance of Trade” means?
(a) A point where the values of imports and exports are equal
(b) the term is used with reference to bilateral trade agreements with countries of CIS Block
(c) the difference between the value of the imports and exports of a country
(d) the difference between the total of transactions with foreign countries in trade, services and capital

Q9. Identify the factor which generally keeps the price-elasticity of demand for a good low:
(a) Variety of uses for that good.
(b) Its low price.
(c) Close substitutes for that good.
(d) High proportion of the consumer’s income spent on it.

Q10.The Government of India earns maximum revenue from
(a) Income tax
(b) Union excise duty
(c) Customs duty
(d) Corporation tax

Q11. Euro Bond is an instrument?
(a) Issued in the European market
(b) Issued in Euro currency
(c) Is a bond denominated in a currency not native to the issuer’s home country
 (d) All of the above

Q12. Currency Swap is an instrument to manage?
(a) Currency risk
(b) Interest rate risk
(c) Currency and interest rate risk
(d) Cash flows in different currency

Q13. Which of the following Indian Act has been replaced by the enactment of FEMA in 1999?
(a) FERA
(b) Indian Copyright Act
(c) Indian Patent Act
(d) Both (b) and (C)

Q14. VAT is imposed on………?
(a) Directly on consumer
(b) On all stages between production and final stage
 (c) On first stage of production
(d) On final stage of production

Q15. Increase in net RBI credit for Central Government represents?
(a) Monetised Deficit
(b) Fiscal Deficit
(c) Revenue Deficit
(d) Budgetary Deficit

S1. Ans.(d)

S2. Ans.(c)

S3. Ans.(b)

S4. Ans.(b)

S5. Ans.(b)

S6. Ans.(c)

S7. Ans.(a)

S8. Ans.(c)

S9. Ans.(a)

S10. Ans.(d)

S11. Ans.(c)

S12. Ans.(d)

S13. Ans.(a)

S14. Ans.(b)

S15. Ans.(a)


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