1.
One of the following is not a financial saving
The part of the income thathas been saved constitutes savings in aneconomy.Savings flow to the capital market. From thecapital market, these flow to the firm sectorin the form of loans and borrowings. Firmsmake use of this money to purchase capitalgoods like machinery, buildings, equipment,tools, etc. Capital goods help in furtherproduction of goods and services.Expenditure on capital goods constitutesinvestment in an economy.The expenditure on purchase of financialassets like equity, units, deposits, etc., doesnot constitute investment.Thus, investment represents that part of totalproduction (and thus that part of total incomegenerated) in an economy which is used forthe purchase of capital goods.The arithmetic equation in this context,which is always true, is:I = S
2.
An open economy does not mean
No sovereign governmentallows any type of intervention.
3.
Which one of the following does not constitute saving in physical assets?
All others are physical asset. Acash deposits with a bank is financial asset.
4.
Which one of the following does not constitute investment expenditure in an economy?
Only these expenses whichcreate or generate a new object or asset arecalled investment.
Support rate of exchangechanges from $1 = Rs. 60 to Rs 62, we willsay rupee has weakened.
6.
Purchase of gold is considered:
It is consumption if used asjewellery. It is investment if this used inproduction of some other good.
It is a company incorporatedin China.
8.
International Water Day is observed on
International Water Day isobserved on March 22.
9.
Subrata Roy, head of Sahara Group, failedto click the deal with a party that wouldhave helped him to secure bail The part inquestion is
Corporates deal only whenthey sense some monetary gain.
