JAIIB Exam 2025 – IE&IFS Important Questions MCQs Quiz-18

15/02/2025

Table of Contents

JAIIB Exam 2025 IE&IFS Important Questions MCQs Quiz-18

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB IE&IFS MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB IE&IFS quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1. Which of the following statements about the System of National Accounts (SNA) is correct?
A) The SNA is an independent national framework developed separately by each country.
B) The SNA provides a standardized accounting framework for economic data collection and presentation.
C) The SNA discourages periodic revisions of the base year for macroeconomic indicators.
D) The latest edition of the SNA followed by all UN member nations is the 1993 SNA

Q.2 Which of the following is NOT a major component influencing the revision exercise under the 2008 SNA Framework?
A) Revising the base year to a more recent year for better structural analysis.
B) Reviewing and updating the database and methodology for macroeconomic estimates.
C) Ensuring full compliance with only the International Monetary Fund (IMF) guidelines.
D) Implementing international guidelines on national accounts compilation as per the 2008 SNA.

Q 3 Which of the following is NOT a method to compute GDP as per National Income Accounting?
A) Expenditure method, which calculates the total spending by all entities.
B) Income method, which calculates the total income received by factors of production.
C) Product method, which calculates the total production in the economy.
D) Inflation-adjusted method, which calculates GDP based on price level changes.

Q.4 Which of the following correctly represents the formula for GDP using the Expenditure Method?
A) GDP = Private Consumption + Private Investment + Government Consumption + Changes in Stock + (Exports – Imports)
B) GDP = Wages + Rent + Interest + Profit
C) GDP = Total Output – Depreciation
D) GDP = Money Supply × Velocity of Money

Q.5 If in a given year:
▪ Private Consumption (C) = ₹80 lakh
▪ Private Investment (I) = ₹40 lakh
▪ Government Consumption (G) = ₹30 lakh
▪ Changes in Stock = ₹10 lakh
▪ Exports (X) = ₹25 lakh
▪ Imports (M) = ₹15 lakh
What is the National Income using the Expenditure Method?
A) ₹170 lakh
B) ₹150 lakh
C) ₹160 lakh
D) ₹190 lakh

Q.6 In a given year, the following data is available:
▪ Wages & Rent = ₹50 lakh
▪ Interest = ₹20 lakh
▪ Dividend = ₹10 lakh
▪ Undistributed Profit (Operating Surplus) = ₹15 lakh
▪ Mixed Income from Self-Employed = ₹25 lakh
▪ Opening Stock of Public Enterprise = ₹5 lakh
▪ Direct Taxes Collected by Government = ₹8 lakh
▪ Net Factor Income from Abroad (NFIA) = ₹2 lakh
▪ Value of Production for Self-Consumption = ₹5 lakh
What is the National Income (NNP at Factor Cost) using the Income Method?
A) ₹135 lakh
B) ₹140 lakh
C) ₹145 lakh
D) ₹150 lakh

Q.7 Which of the following statements correctly differentiates between Real GDP and Nominal GDP?
A) Real GDP measures total output using base year prices, while Nominal GDP measures total output using current year prices.
B) Nominal GDP removes the effects of inflation, whereas Real GDP includes inflationary effects.
C) Real GDP is always higher than Nominal GDP in an economy experiencing inflation.
D) Nominal GDP is calculated using the Product Method, while Real GDP is calculated using the Expenditure Method.

Q.8 n a given year, the following data is available: ▪ GDP at Market Price (GDPmp) = ₹500 lakh
▪ Depreciation = ₹30 lakh
▪ Net Factor Income from Abroad (NFIA) = ₹10 lakh
▪ Indirect Taxes = ₹40 lakh
▪ Government Subsidies = ₹15 lakh
What is the National Income (NNP at Factor Cost) using the Product/Output Method?
A) ₹450 lakh
B) ₹455 lakh
C) ₹460 lakh
D) ₹465 lakh

Q.9 Which of the following best defines Factor Cost in economic terms?
A) The total market price paid by consumers for a good or service, including indirect taxes.
B) The total cost incurred by producers in paying for factors of production, excluding taxes and including subsidies.
C) The selling price of a product after adding both direct and indirect taxes imposed by the government.
D) The difference between the Gross Domestic Product at market price and the Net National Product at factor cost.

Q.10 Which of the following best describes the concept of Basic Price?
A) The price paid by the final consumer, including indirect taxes and excluding subsidies.
B) The amount received by the producer after adding indirect taxes and excluding subsidies.
C) The amount receivable by the producer from the purchaser, excluding any tax payable and including any subsidy receivable.
D) The cost of production, including wages, rent, interest, and profit, but excluding subsidies and taxes.

Q.11 Which of the following correctly represents the relationship between Gross Value Added (GVA) and Gross Domestic Product (GDP)?
A) GDP at Market Prices = GVA at Factor Cost + Product Taxes – Product Subsidies
B) GVA at Basic Prices = GVA at Factor Cost + Product Taxes – Product Subsidies
C) GDP at Market Prices = GVA at Basic Prices + Product Taxes – Product Subsidies
D) GDP at Market Prices = GVA at Factor Cost + Production Taxes – Production Subsidies

Q.12 Which of the following statements correctly differentiates between Gross Value Added (GVA) and Gross Domestic Product (GDP)?
A) GVA measures economic activity from the demand side, while GDP measures it from the supply side.
B) GDP measures from demand side, while GVA reflects the income generated by all economic actors before accounting for taxes and subsidies.
C) GVA is always greater than GDP in an economy due to the inclusion of indirect taxes.
D) GDP excludes net exports, while GVA includes them.

Q.13 Which of the following correctly represents the formula for Gross National Income (GNI) at Market Prices?
A) GNI = GDP at Market Prices + Net Factor Income from Abroad (NFIA)
B) GNI = GDP at Market Prices + (Taxes – Subsidies on Production & Imports) + NFIA
C) GNI = GDP at Market Prices + Net Exports + Net Property Income from Abroad
D) GNI = GDP at Market Prices – Net Indirect Taxes + Net Compensation of Employees

Q.14 What does Green GDP primarily aim to measure?
A) The total economic output of a country, including environmental restoration costs.
B) The economic growth of a country after adjusting for environmental degradation and resource depletion.
C) The contribution of the renewable energy sector to a nation’s GDP.
D) The GDP growth rate of environmentally sustainable industries

Q.15 Which of the following statements best explains the limitation of GDP as a measure of economic well-being?
A) GDP measures the total income of a nation but does not indicate how that income is distributed among the population.
B) A higher GDP automatically ensures an equitable distribution of income across all sections of society.
C) Per capita income derived from GDP accurately represents the standard of living of every individual in a country.
D) A country with high GDP will always have a high Human Development Index (HDI).

Q.16 Which of the following best describes Personal Income in national income accounting?
A) The total income generated within a country, including undistributed corporate profits and taxes.
B) The total income actually received by individuals and households after adjusting for undistributed profits and corporate taxes.
C) The income earned by individuals before any deductions, including corporate earnings and retained profits of firms.
D) The sum of wages, rent, interest, and profits earned by individuals, excluding government transfers.

Q.17. Which of the following best defines Personal Disposable Income (PDI)?
A) The total income earned by individuals before paying taxes.
B) The portion of personal income available for individuals after deducting direct taxes and other obligatory payments.
C) The total private income received by individuals, including corporate retained earnings.
D) The sum of wages, interest, rent, and profits earned by individuals before government deductions.

Q.18 If in a given year:
▪ Private Consumption (C) = ₹80 lakh
▪ Private Investment (I) = ₹40 lakh
▪ Government Consumption (G) = ₹30 lakh
▪ Exports (X) = ₹25 lakh
▪ Imports (M) = ₹15 lakh
▪ NFIA =10 lakh
▪ Depreciation = 15 lakh
What is the National Income using the Expenditure Method?
A) ₹175 lakh
B) ₹155 lakh
C) ₹165 lakh
D) ₹190 lakh