SS2 Third Term Commerce Past Questions And Answers

Here they are;

Question: In the context of financial markets, what is the role of a stock exchange?

 

A) Set interest rates

B) Facilitate the buying and selling of stocks and other securities

C) Control government spending

D) Regulate consumer prices

Answer: B) Facilitate the buying and selling of stocks and other securities

Question: What is the term for the process of converting raw materials into finished goods?

 

A) Distribution

B) Marketing

C) Production

D) Consumption

Answer: C) Production

Question: In international trade, what does the term “tariff” refer to?

 

A) Subsidies to domestic industries

B) Restrictions on exports

C) Taxes on imported goods

D) Quotas on production

Answer: C) Taxes on imported goods

Question: What is the primary goal of monetary policy?

 

A) Maximize government revenue

B) Control inflation and stabilize the currency

C) Regulate international trade

D) Manage fiscal deficits

Answer: B) Control inflation and stabilize the currency

Question: What is the role of a marketing plan in business?

 

A) Calculate production costs

B) Identify market trends

C) Develop strategies to promote and sell products

D) Monitor employee performance

Answer: C) Develop strategies to promote and sell products

Question: What does the term “diversification” mean in the context of investments?

 

A) Concentrating investments in a single asset class

B) Spreading investments across different asset classes to reduce risk

C) Eliminating all investment risks

D) Investing only in foreign markets

Answer: B) Spreading investments across different asset classes to reduce risk

Question: In accounting, what is the purpose of a cash flow statement?

 

A) Summarize the company’s assets and liabilities

B) Provide an overview of revenue and expenses

C) Analyze market trends

D) Show the cash inflows and outflows over a specific period

Answer: D) Show the cash inflows and outflows over a specific period

Question: What is the concept of “opportunity cost” in decision-making?

 

A) The total cost of production

B) The cost of the next best alternative forgone when a decision is made

C) The market price of a product

D) The cost of promotional activities

Answer: B) The cost of the next best alternative forgone when a decision is made

Question: In the context of supply and demand, what happens when there is a shortage of a good in the market?

 

A) Prices rise

B) Prices fall

C) Equilibrium is reached

D) Government intervention is required

Answer: A) Prices rise

Question: What is the significance of the term “invisible hand” in economic theory?

 

A) Refers to government intervention in markets

B) Describes the self-regulating nature of free markets

C) Represents labor unions’ influence on wages

D) Illustrates the impact of inflation on purchasing power

Answer: B) Describes the self-regulating nature of free markets

Question: What is the primary purpose of a marketing strategy?

 

A) Calculate production costs

B) Analyze competitor’s profits

C) Achieve the company’s marketing objectives

D) Monitor employee satisfaction

Answer: C) Achieve the company’s marketing objectives

Question: What is the term for a legal entity that is separate and distinct from its owners, providing limited liability to its shareholders?

 

A) Sole proprietorship

B) Partnership

C) Corporation

D) Cooperative

Answer: C) Corporation

Question: In macroeconomics, what does the term “fiscal policy” refer to?

 

A) Government regulation of interest rates

B) The use of government spending and taxation to influence the economy

C) Central bank control of money supply

D) Exchange rate management

Answer: B) The use of government spending and taxation to influence the economy

Question: What is the role of the Federal Reserve in the United States?

 

A) Regulate international trade

B) Control fiscal policy

C) Manage the money supply and implement monetary policy

D) Set corporate tax rates

Answer: C) Manage the money supply and implement monetary policy

Question: What does the term “monetary base” refer to in central banking?

 

A) Total money supply in the economy

B) The reserves held by commercial banks at the central bank

C) Interest rates set by the central bank

D) Government spending on infrastructure projects

Answer: B) The reserves held by commercial banks at the central bank

Question: What is the purpose of the World Intellectual Property Organization (WIPO)?

 

A) Regulate international trade

B) Protect and promote intellectual property rights globally

C) Set global interest rates

D) Facilitate diplomatic relations between nations

Answer: B) Protect and promote intellectual property rights globally

Question: In the context of financial markets, what is a derivative?

 

A) A financial instrument representing ownership in a company

B) An investment in precious metals

C) A contract whose value is derived from the performance of an underlying asset

D) A government bond

Answer: C) A contract whose value is derived from the performance of an underlying asset

Question: What is the significance of the term “elastic demand” in economics?

 

A) Quantity demanded is highly responsive to changes in price

B) Quantity demanded remains constant regardless of price changes

C) Quantity demanded is not affected by income changes

D) Quantity demanded is inversely related to supply

Answer: A) Quantity demanded is highly responsive to changes in price

Question: In international trade, what is the purpose of a trade deficit?

 

A) Achieve a surplus in the balance of payments

B) Import more goods and services than exporting

C) Stabilize exchange rates

D) Increase government revenue

Answer: B) Import more goods and services than exporting

Question: What is the role of a marketing channel in distribution?

 

A) Calculate production costs

B) Facilitate the move

ment of goods from producers to consumers

C) Analyze competitor’s profits

D) Monitor employee performance

Answer: B