AIC SS2 Economics 2nd term exam
  • 1. GDP MEANS___
A) Gross domestic product
B) Green determined product
C) Great domestic price
D) Giant domestic product
  • 2. formula to calculate GNP IS
A) Personal income + real income
B) GDP- NATIONAL INCOME
C) GDP + NET INCOME
D) Per Capita income - disposable income
  • 3. NNP means
A) New national price
B) Net national price
C) Net national population
D) Net national product
  • 4. The total of all the incomes obtained from economics activities during a specific period of time after allowance has been made for Capital consumption is
A) Personal income
B) Real income
C) Total income
D) National income
  • 5. The amount earned by individual for taking part in the production of goods and services either by him or his property is
A) Per Capita income
B) Real income
C) Personal income
D) National income
  • 6. One of the factors that determine national income of a country is
A) Daily consumption
B) Level of technology
C) Smartness
D) Over population
  • 7. International Trade is also known as
A) Domestic trade
B) Local trade
C) Foreign trade
D) Home trade
  • 8. Trading between two or more countries is
A) Oligopolistic
B) Bilateral international trade
C) Multilateral international trade
D) Monopolistic
  • 9. The exchange of goods and services among the people within a particular country is
A) Home trade
B) Free trade
C) Stock exchange
D) Insurance
  • 10. In _____, buyers and sellers use different currencies
A) Local bank
B) Insurance company
C) Foreign trade
D) Home trade
  • 11. All are differences that occurs in foreign trade except
A) Health
B) System of weighing
C) Languages
D) Culture
  • 12. One of the barriers of international trade is
A) Same language
B) Favourable government policy
C) Tarrif
D) Good technology
  • 13. The act of buying goods and services from other countries is known as
A) Import trade
B) Export trade
C) Home trade
D) Local trade
  • 14. All are examples of Visible imports except
A) Houses
B) Automobile
C) Electronics
D) Machinery
  • 15. Invisible imports consist of services that
A) Cannot be seen
B) Can be carried
C) Can be beautify
D) Does not have value
  • 16. Example of invisible exports is
A) Houses
B) Machine
C) Road
D) Banking
  • 17. Entrepot means
A) Trading within the country
B) A country sell to one country and re-exported to another country
C) A country is banned from selling
D) A country sell to other country
  • 18. One of the basis for international trade is
A) To be able to inflate price
B) Desire to improve the standard of living
C) To be corrupt
D) To reduce the desire for locally made goods
  • 19. When visible imports is equal to visible exports in monetary terms, it is called
A) Balance of trade
B) Tarrif
C) Restrictions
D) Balance of Payment
  • 20. _____ is the statement or record showing the relationship between a country's total payments to other countries and it's total receipts from them in a year
A) Insurance
B) Balance of Payment
C) Balance of Trade
D) Stock exchange
  • 21. The account that shows how the balance of both current and capital accounts are settled is
A) Monetary movement account
B) Visible account
C) Fixed account
D) Opay account
  • 22. If a country is exporting more in monetary terms than it is importing, is is said to be
A) Favourable balance of payments
B) Unfavourable balance of Payment
C) Negative balance of trade
D) Positive balance of trade
  • 23. All are procedure for international trade except
A) Clearing agent process and complete all necessary documents
B) Buyers pay without seeing the product
C) Producer send quotation to the buyer
D) Payment arrangements is made
  • 24. The taxes or duties imposed on imports and exports by the government of a country is called
A) Cheque
B) Shares
C) Revenue
D) Tarrifs
  • 25. Tarrifs are impose to
A) To make the country rich
B) To minimize purchase
C) Protect infant industries
D) To cause conflict
  • 26. Who propounded the principle of comparative cost advantage
A) Adams smith
B) Lord luggard
C) David adeleke
D) David Ricardo
  • 27. The principle of comparative advantage support that each country specializes in producing those commodities
A) In which it has a comparative advantage over other
B) In which it has low tarrifs imposed on it
C) In which it has large storage facilities for
D) In which it has high price tag
  • 28. The principle of comparative advantage is based on the assumption that if there are
A) many countries
B) No country
C) Only one country
D) Only two countries
  • 29. Free trade means
A) Restrictions on local trade
B) Non restrictions on international trade
C) Restrictions on international trade
D) No exchange of goods
  • 30. Infant industries means
A) Private industries
B) Old industries
C) Newly established industries
D) Big industries
  • 31. One of the following is not among the non-banking financial institutions
A) Hire purchase companies
B) Commercial bank
C) Building societies
D) Insurance companies
  • 32. A_________ is a commercial institution which perform various financial activities
A) Shop
B) Bank
C) Market
D) Office
  • 33. All are procedure to open current account except
A) Guarantors must be recommended
B) A lawyer will be presented
C) Passport photograph will be submitted
D) Application form will be filled
  • 34. One of the following is not a type of bank account
A) Current account
B) Savings account
C) Real account
D) Fixed account
  • 35. Loan is
A) Money lent out to customers at an agreed rate of interest for a specific period of time
B) Money collected through cheque
C) Money saved for a long period of time
D) Machine bought for production
  • 36. One of the feature of savings account is
A) Anybody can withdraw from the account
B) Only the holder can withdraw from the account
C) Withdraw can be done anytime
D) No interest is given
  • 37. Commercial bank have the following functions except
A) Debit customers without their intentions
B) Issuance of bank statement
C) Provision of financial advise
D) Lending of money
  • 38. All are factors to consider before granting loan
A) Financial position of the customer's account
B) Marital status
C) Sources of income
D) Purpose of loan
  • 39. One of these is not a type of cheque
A) Order cheque
B) Open cheque
C) Purchase cheque
D) Bearer cheque
  • 40. ____ is the bankers bank
A) Monument bank
B) Mortgage bank
C) First bank
D) Central bank
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