3rd term Economics exam

The process of exchanging goods without using money is called:

• Inflation

• Barter system

• Banking

• Credit transaction

Which institution is responsible for issuing currency in a country?

• Commercial banks

• Central bank

• Stock exchange

• Ministry of Finance

What type of money is issued by the government and has no intrinsic value?

• Barter money

• Representative

• Commodity money

• Fiat money

Which of the following is NOT a function of money?

• Store of value

• Unit of account

• Medium of exchange

• Means of enjoyment

The partnership agreement is also known as ---

• Deed of contract

• Memorandum of association

• Articles of association

• Partnership deeds

The maximum number of people that can establish a partnership business is --

• 7

• 10

• 2

• 20

-- is also refers to as one man business

• Public limited liability company

• Sole proprietorship

• Partnership

• All of the above

Which of the following is a major source of capital for a public limited company?

• Private loans

• Issuing shares and bonds

• Donations from shareholders

• Profits from one-time sales

What happens when a public limited company becomes insolvent?

• The shareholders lose only their investment

• The directors pay all debts personally

• The company continues to operate as usual

• The government automatically takes over

Which of the following is a disadvantage of a public limited company?

• Limited liability for shareholders

• High regulatory requirements

• Ability to raise large capital

• Perpetual succession