public finance fiscal & monetary policy section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

An initial public offering (IPO) or stock market launch is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time.

Through this process, a private company transforms into a public company. Initial public offerings are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises.

A company selling shares is never required to repay the capital to its public investors. After the IPO, when shares trade freely in the open market, money passes between public investors.

Answer: (d)

Answer: (a)

Capital receipts are the funds received into the businesses that are not part of the operating activities of the establishment. Capital receipts primarily include external assistance, market loans, small savings, principal investment in bonds, and Government provident funds.

A capital receipt is a receipt that is derived from the sale or purchase of capital assets like plant and machinery, furniture, investment (long term) etc., which shall not be occurring all the time.

Answer: (c)

As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes.

Here it is not possible to identify as to who are unemployed, as all “appear to be working.” Disguised unemployment is especially seen in the field of agriculture.

Most of the people are observed to be engaged in agriculture; however, in reality, a sufficient number of them are unemployed. Their contribution regarding production is negligible.

Answer: (d)

Operational research is a discipline that deals with the application of advanced analytical methods to help make better decisions.

Employing techniques from other mathematical sciences, such as mathematical modelling, statistical analysis, and mathematical optimization, operations research arrives at optimal or near-optimal solutions to complex decision-making problems.

In a nutshell, operations research (O.R.) is the discipline of applying advanced analytical methods to help make better decisions.