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