Account and Finance Practice Question and Answer
8 Q: Forced saving refers to-
763 06511558410a18f5082fb144e
6511558410a18f5082fb144e- 1Compulsory deposits imposed on income tax payersfalse
- 2Provident fund contribution of private sector employeesfalse
- 3Reduction of consumption consequent to a rise in pricetrue
- 4Taxes on individual income and wealthfalse
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Answer : 3. "Reduction of consumption consequent to a rise in price"
Explanation :
According to Nobel Prize winner Frederick Wan, Forced Saving in an economic situation in which consumer spend less than their disposable income, not because they want to save but because the goods they seek are not avoidable or because goods are too expensive.
Q: Income and consumption are–
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6512a20310a18f5082ff294c- 1Inversely Relatedfalse
- 2Directly Relatedtrue
- 3Partially Relatedfalse
- 4Unrelatedfalse
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Answer : 2. "Directly Related"
Explanation :
Consumption and income are directly or positively related. An increase in income results in increase in consumption and vice-versa.
Q: GDP is what percent of Fiscal deficit?
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6511597ccb11fc5036e368e9- 17false
- 24true
- 38false
- 41false
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Answer : 2. "4"
Explanation :
Expl:- In budget 2014-15 the percent of G.D.P was 4.1 of fiscal deficit. But in 2015-16 its percent becomes 3.9% of fiscal deficit.
Q: GDP at factor cost equals–
748 0651293bb56a7b2508cb4db19
651293bb56a7b2508cb4db19- 1GDP – Indirect Tax + Subsidytrue
- 2GNP – depreciationfalse
- 3NNP + depreciationfalse
- 4GDP – subsidy + indirect tax.false
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Answer : 1. "GDP – Indirect Tax + Subsidy"
Q: Other name of Net National Product at market price?
744 0651164d99c491b8125b988a8
651164d99c491b8125b988a8- 1National Incometrue
- 2Gross Domestic Productionfalse
- 3Personal Incomefalse
- 4Per Capital Incomefalse
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Answer : 1. "National Income "
Explanation :
NNPMP = GNPMP – depreciation
Q: If a country produces consumer goods only and nothing else, then-
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6511572f10a18f5082fb1afd- 1Standard of living will be highestfalse
- 2The country have certain amount of goodfalse
- 3The country will soon become poor if external trade will not happentrue
- 4The country will gradually become rich if external trade will not happenfalse
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Answer : 3. "The country will soon become poor if external trade will not happen"
Explanation :
If any country will produce only consumer good, then gradually the country will become poor as there will be no exchange of other goods and the economy of that country will highly be affected.
Q: The Income of Indians working abroad is-
734 06511585710a18f5082fb1e12
6511585710a18f5082fb1e12- 1Domestic Income of Indiafalse
- 2Income earned from abroadtrue
- 3Net domestic product of Indiafalse
- 4Grave domestic product of India.false
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Answer : 2. "Income earned from abroad"
Explanation :
Expl:- NDPmp + NFIA = NNPmp
GDPmp + NFIA + GNPmp
Q: Gross Profit means–
705 06512a7a7af64a2609c622020
6512a7a7af64a2609c622020- 1Total investment over total savingsfalse
- 2Changes in methods of productionfalse
- 3Changes in the form of business organisationfalse
- 4Total receipts over total expenditure.true
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Answer : 4. "Total receipts over total expenditure."
Explanation :
Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure)
In other words it is the total receipt over total cost.

