Tag: economics

Questions Related to economics

Which city will get India's first 'freight village'?

economics the story of village palampur farming and non-farming activities in village non - economic activities economy of a village

  1. Varanasi

  2. Jaipur

  3. Bengaluru

  4. Kolkata

Show answer
Correct Option: A
Explanation:

A ‘Freight Village’ refers to a specialised industrial estate that attracts those companies which are in requirement of logistics services and can cluster to improve their competitiveness. In this connection, the city of Varanasi will get the country’s first ‘freight village’. It is spread over around 100 acres.
Thus, the correct answer is A.

For purchasing the seeds, fertilizers etc the loan distributed is called

economics the story of village palampur farming and non-farming activities in village non - economic activities economy of a village

  1. Short Term loan

  2. long term loan

  3. medium term loan

  4. none of these

Show answer
Correct Option: C
Explanation:

Medium-term loans are the type of loans with a repayment period that lasts between two and five years. These are given for the purpose of financing of professional equipment which is needed for production or service provision activities, thus including safety or environmental protection. Thus, for purchasing the seeds, fertilizers etc. The loan distributed is called medium-term loan.

Thus, the correct answer is C.

Choose the correct answers from the alternatives given.
In India, agriculture income is calculated by _______________.

economics the story of village palampur farming and non-farming activities in village non - economic activities economy of a village

  1. Output Method

  2. Input Method

  3. Expenditure Method

  4. Commodity flow method

Show answer
Correct Option: A
Explanation:

In India agriculture, forestry and logging, fishing mining and quarrying, registered manufacturing and construction units are included in category.A. The output method is applied to category A. The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output
Expenditure method- This method measures the National income sum total of final expenditure incurred by household, business firm. Govt. and Foreigners
Commodity flow method: This method is used to estimate the purchase of commodities by intermediate or final users. This method generally begins with an estimate of the total supply of a commodity available for domestic users.

What annual instalment will discharge a debt of Rs. $2710$ due in $4$ years at $7\%$ simple interest?

installments banking business and commercial activities economics maths

  1. Rs. $1000$

  2. Rs. $613$

  3. Rs. $225$

  4. Rs. $150$

Show answer
Correct Option: B
Explanation:

Let the annual installment be $x$

Now, $ x$ accumulates an interest of $7.1$ every year
$\implies$
$x$ deposited in first year becomes $1.21x$ in next $3$ years
$x$ deposited in second year becomes $1.11x$ in next $2$ years
$x$ deposited in first year becomes $1.07x$ in next $4$ years
$\implies1.21x+1.41x+1.07x+x=2710\ \implies 4.92x=2710\ \implies x=Rs.613$

Under the __________ scheme, the article will not be owned by the buyer until and unless he/she has paid the complete purchasing price of the article.

installments banking business and commercial activities economics maths

  1. Interest

  2. Hire Purchase

  3. Loan

  4. Finance

Show answer
Correct Option: B
Explanation:

$\Rightarrow$  Under the $Hire\, Purchase$ scheme, the article will not be owned by the buyer until and unless he\she has paid the complete purchasing price of the article.

$\Rightarrow$  Hire-purchase system is a special system of purchase and sale. When goods are purchased on hire purchase system, the purchaser pays the price in instalments, these instalments may be Monthly, Quarterly or yearly etc. 
$\Rightarrow$   Goods are delivered to the purchaser at the time of Hire Purchase Agreement but the purchaser will become the owner of goods only on payment of last instalments.
$\Rightarrow$  All instalments paid are treated a hire until the last instalment paid off.

What is hire purchase scheme?

installments banking business and commercial activities economics maths

  1. A method of buying goods through making instalment payments over time.

  2. A method of trading goods through making instalment payments over time.

  3. A method of buying goods through making interest payments over time.

  4. A method of buying goods through making money payments over time.

Show answer
Correct Option: A
Explanation:

A hire purchase is a method of buying goods through making instalment payments over time.

The interest scheme in which companies reduce the amount of the instalments to promote sales is called as __________.

installments banking business and commercial activities economics maths

  1. Discount Sale

  2. $100\%$ Finance

  3. $0\%$ Interest

  4. $50\%$ Finance

Show answer
Correct Option: A
Explanation:

$\Rightarrow$  The interest scheme in which companies reduce the amount of the installments to promote sales is called as $Discount\,Sale.$

$\Rightarrow$  Discounts  are reductions to a basic price of goods or services.
$\Rightarrow$  The purpose of discount sale is to increase short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer.

The instalment scheme in which companies take $4$ or $5$ instalments in advance is called as:

installments banking business and commercial activities economics maths

  1. $25\%$ Finance

  2. $75\%$ Finance

  3. $100\%$ Finance

  4. $0\%$ Interest

Show answer
Correct Option: D
Explanation:

The installment scheme in which companies take $4$ or $5$ installment in advance is called as : $0\%$ Interest

For $0$ percent loans, you pay no interest. That means you're borrowing money from a bank but paying no fee for the privilege of doing so. Essentially, $0$ percent interest gives you the chance to pay the same amount of money as a cash buyer, even though you're spreading your payments over a longer term.
It is the total cost of the article paid as loan to the buyer.
The interest collect $3-5$ months installments in advance.

A man buys an iPhone $6$ for Rs. $53{,}000$. He realizes that he cannot pay such a large amount of money right now, so he decides to pay Rs. $4{,}505$ monthly for $12$ months. This amount of Rs. $4{,}505$ is called as:

installments banking business and commercial activities economics maths

  1. Simple Interest

  2. Selling Price

  3. Principal Amount

  4. Instalment

Show answer
Correct Option: D
Explanation:

$\Rightarrow$  A man buys an iPhone $6$ for $Rs.53,000.$ He realize the he cannot pay such a large amount of money right now, so he decides to pay $Rs.4,505$ monthly for $12$ months. This amount of $Rs.4,505$ is called as : $Installment.$

$\Rightarrow$  The monthly or period payment in installment purchase is termed as installment.
$\Rightarrow$   In the case of installment purchase, the purchase happens as soon as the agreement between the buyer and financing Difference between Hire Purchase vs. Installment Purchase company is entered into.
$\Rightarrow$  In installment purchase, purchase and ownership take place before the complete payment.

A certain number of tennis balls were purchased for Rs 450. Five more balls could have been purchased in the same amount if each ball cheaper by Rs 15. The number of ball purchased was __________

installments banking business and commercial activities economics maths

  1. 10

  2. 15

  3. 20

  4. 25

Show answer
Correct Option: A
Explanation:

Let's take number of ball purchased=x  for Rs 450.
As per question, 
$\frac { 450 }{ x }=\frac { (450) }{ x+5 }+15 $
$\frac { 30 }{ x } =\frac { 30 }{ x+5 } +1$
$30x+{ x }^{ 2 }+5x=30x+150$
${ x }^{ 2 }+15x-150=0$
${ x }^{ 2 }+15x-10x-150=0$
${ x }(x+15)-10(x+15)=0$
$(x-10)(x+15)=0$
So, x=10, and x=-15(not possible)
Answer (A) 10