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