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AIC SS2 Economics 2nd term exam
Contributed by: College
  • 1. GDP MEANS___
A) Great domestic price
B) Gross domestic product
C) Green determined product
D) Giant domestic product
  • 2. formula to calculate GNP IS
A) Per Capita income - disposable income
B) Personal income + real income
C) GDP- NATIONAL INCOME
D) GDP + NET INCOME
  • 3. NNP means
A) Net national product
B) New national price
C) Net 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) 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) Personal income
B) National income
C) Per Capita income
D) Real income
  • 6. One of the factors that determine national income of a country is
A) Smartness
B) Level of technology
C) Over population
D) Daily consumption
  • 7. International Trade is also known as
A) Foreign trade
B) Domestic trade
C) Local trade
D) Home trade
  • 8. Trading between two or more countries is
A) Monopolistic
B) Multilateral international trade
C) Bilateral international trade
D) Oligopolistic
  • 9. The exchange of goods and services among the people within a particular country is
A) Home trade
B) Free trade
C) Insurance
D) Stock exchange
  • 10. In _____, buyers and sellers use different currencies
A) Insurance company
B) Home trade
C) Foreign trade
D) Local bank
  • 11. All are differences that occurs in foreign trade except
A) System of weighing
B) Health
C) Culture
D) Languages
  • 12. One of the barriers of international trade is
A) Tarrif
B) Favourable government policy
C) Good technology
D) Same language
  • 13. The act of buying goods and services from other countries is known as
A) Home trade
B) Import trade
C) Export trade
D) Local trade
  • 14. All are examples of Visible imports except
A) Machinery
B) Electronics
C) Houses
D) Automobile
  • 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) Machine
B) Road
C) Banking
D) Houses
  • 17. Entrepot means
A) A country is banned from selling
B) A country sell to one country and re-exported to another country
C) A country sell to other country
D) Trading within the country
  • 18. One of the basis for international trade is
A) To be corrupt
B) To reduce the desire for locally made goods
C) To be able to inflate price
D) Desire to improve the standard of living
  • 19. When visible imports is equal to visible exports in monetary terms, it is called
A) Balance of Payment
B) Restrictions
C) Balance of trade
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 Trade
C) Balance of Payment
D) Insurance
  • 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) 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) Clearing agent process and complete all necessary documents
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) Revenue
B) Cheque
C) Shares
D) Tarrifs
  • 25. Tarrifs are impose to
A) To minimize purchase
B) To cause conflict
C) Protect infant industries
D) To make the country rich
  • 26. Who propounded the principle of comparative cost advantage
A) David Ricardo
B) Lord luggard
C) Adams smith
D) David adeleke
  • 27. The principle of comparative advantage support that each country specializes in producing those commodities
A) In which it has high price tag
B) In which it has large storage facilities for
C) In which it has a comparative advantage over other
D) In which it has low tarrifs imposed on it
  • 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) No exchange of goods
B) Non restrictions on international trade
C) Restrictions on local trade
D) Restrictions on international trade
  • 30. Infant industries means
A) Old industries
B) Private industries
C) Newly established industries
D) Big industries
  • 31. One of the following is not among the non-banking financial institutions
A) Building societies
B) Insurance companies
C) Commercial bank
D) Hire purchase companies
  • 32. A_________ is a commercial institution which perform various financial activities
A) Shop
B) Bank
C) Office
D) Market
  • 33. All are procedure to open current account except
A) A lawyer will be presented
B) Passport photograph will be submitted
C) Application form will be filled
D) Guarantors must be recommended
  • 34. One of the following is not a type of bank account
A) Real account
B) Savings account
C) Fixed account
D) Current account
  • 35. Loan is
A) Machine bought for production
B) Money saved for a long period of time
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) 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) Lending of money
B) Provision of financial advise
C) Issuance of bank statement
D) Debit customers without their intentions
  • 38. All are factors to consider before granting loan
A) Marital status
B) Purpose of loan
C) Sources of income
D) Financial position of the customer's account
  • 39. One of these is not a type of cheque
A) Order cheque
B) Purchase cheque
C) Open cheque
D) Bearer cheque
  • 40. ____ is the bankers bank
A) Monument bank
B) Mortgage bank
C) Central bank
D) First bank
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