ObjectiveMcq
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Which cost is an example of a variable cost?
All of the above
raw materials
raw materials
labor
Variable costs are expenses that vary in proportion to the amount of goods or services that a business produces.
Demand is said to be inelastic when
Percentage change in demand is greater than the percentage change in price of the good
Percentage change in demand is equal to the percentage change in price of the good
None of the above
Percentage change in demand is less than the percentage change in price of the good
Demand is said to be inelastic, when the demand for the good doesn't change much or it is negotiable when the price of the good changed.
Insurance can help you to protect against
None of the above
illegal consent
Both A & B
unexpected accidents
Insurance can help you to protect your properties and assets like home, car, stocks,... against unexpected accidents.
RBI issued currency notes under which system
Maximum Fiduciary System
Fixed Minimum Reserve System
Fixed Fiduciary System
Proportional Reserve System
RBI issued currency notes under Fixed Minimum Reserve System.
Comprehensive income includes all of the following except
expenses
losses
extraordinary items
contributions by owners
Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses.
Diversification is important in investing because
It helps you to balance your risk across different types of investments.
It increases your overall risk, which guarantees that you will make more money.
It ensures that you only make low-risk investments.
It helps you gain the highest rate of return despite any risks.
No explanation provided
Financial management process deals with
Both A & B
Financing decisions
None of the above
Investments
Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management.
Someone who loans money is called
Borrower
Investor
Lender
Investee
Someone who receives money in exchange for a promise to pay it back later is called a borrower1, and the person making the loan is the lender.
What is true about personal financial planning?
A family's resources are unlimited
Personal financial planning is the process of creating and achieving financial goals
There are two means for achieving financial goals—you either need to increase your spending or reduce savings
Our financial decisions decrease once we reach adulthood
Personal financial planning is the process of creating and achieving financial goals.
Capitalism is characterized by which of the following?
All the above
Profits
Privately owned businesses
A market economy
Capitalism is an economic system followed by a country or a society which is characterized by Privately owned businesses, a market economy and profits.
Which payment type can help you stick to a budget?
Credit cards
Payday loans
Debit cards
Cash advances
There are two payment types that will help you stick to your budget.
Galloping inflation is also known as
Jumping inflation
Hyperinflation
None
Moderate inflation
Galloping inflation is also known as jumping inflation.
Which of the following investment choices is least risky?
Flipping
Bonds
Renting
CD's
CDs are the least risky investment choice when compared to flipping, renting and bonds.
