Which of the following is the most liquid asset?

A. Bank notes

B. Silver

C. Bank deposit

D. cheques

The situation in which there is persistent fall in the general price level is referred to as

A. devaluation

B. depreciation

C. deflation

D. inflation

Commercial banks settle their daily interbank indebtedness through the

A. money market

B. finance House

C. acceptance house

D. Clearing House

One disadvantage of inflation is that?

A. fixed income earners gain

B. fixed income eaners lose

C. businessmen lose

D. standard of living rises

Short-term loans can be sourced from

A. the central banks

B. development banks

C. Mortgage banks

D. commercial banks

If there is an increase in wages and salaries without corresponding increase in the supply of goods and services, the situation will lead to

A. a reduction in aggregate demand

B. inflation

C. depression

D. budget surplus

Public expenditure can be financed from all the following sources except the

A. borrowing

B. grant-in-aid

C. royalties and rent

D. mobilization fees

Which of the following is a direct tax

A. import duty

B. export duty

C. capital gain tax

D. sales tax

Tax evasion means

A. postponing paymeny of tax

B. tax payment according to ability to pay

C. making false declaration of taxable income

D. paying little amount of money as tax

A greater burden of tax on a product with high price elasticity of demand rests mainly on the

A. producer

B. teacher

C. civil servant

D. middlemen