Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Which of the following is a component of economic environment?

A) Volume of imports and exports of different items
B) Birth and death rates
C) Money supply in the economy
D) Educational system and literacy rates
E) Planned outlay in private and public sectors
F) Balance of payments and changes in foreign exchange reserves

Choose the correct answer from the options given below.

Options:

A, C, E & F

A, B and D only

A, D and E only

A, C and E only

Correct Answer:

A, C, E & F

Explanation:

The correct answer is option 1- A, C, E & F

A) Volume of imports and exports of different items - Economic factor
B) Birth and death rates - Social factor
C) Money supply in the economy - Economic factor
D) Educational system and literacy rates- Social factor
E) Planned outlay in private and public sectors -Economic factor
F) Balance of payments and changes in foreign exchange reserves - Economic factor

Some Components of Economic Environment are as follows-

* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.