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