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