Exercise 1

Question 16 :

Gross domestic capital formation is defined as

A). flow of expenditure devoted to increased or maintaining of the capital stock
B). expenditure incurred on physical assets only
C). production exceeding demand
D). net addition to stock after depreciation
Answer : Option D

Question 17 :

On July 12, 1982, the ARDC was merged into

C). EXIM Bank
D). None of the above
Answer : Option B

Question 18 :

Which of the following is the most appropriate cause of exports surplus?

A). Country's exports promotion value
B). Country's stringent import policy
C). Developments in national and international markets
D). None of the above
Answer : Option C

Question 19 :

If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to

A). increase it
B). decrease it
C). no impact
D). None of the above
Answer : Option A

Question 20 :

Which of the following items would not appear in a company's balance sheet?

A). Value of stocks of raw materials held
B). Total issued capital
C). Revenue from sales of the company's products
D). Cash held at the bank
Answer : Option C