Explanation

Capital structure refers to the mix of debt and equity financing that a company uses to fund its operations and growth.

It is the combination of liabilities (debt) and shareholders' equity (equity) that makes up a company's capitalization.

Explanation

Deficit financing occurs when a government spends more than its revenue.

It often does so by borrowing or printing additional currency to cover the gap.

This is typically done to stimulate the economy.

Explanation

The three main economic growth indicators are the Consumer Price Index (CPI), Gross Domestic Product (GDP), and Unemployment Figures.

These indicators measure inflation, overall economic output, and job market health, respectively.

Explanation

Deficit financing occurs when a government's expenditures surpass its revenues.

It leading to borrowing or using reserves to cover the shortfall.

This approach is often used to stimulate economic growth or fund large projects.

Explanation

Gross Domestic Product (GDP) is the most commonly used measure of economic activity in a country.

It reflecting the total value of goods and services produced within its borders.

It helps assess the economic health and growth of a nation.

Explanation

• Free trade means goods move between countries without tariffs or trade barriers.
• It encourages international trade and economic cooperation.
• Consumers benefit from lower prices and more product choices.

Last updated 18-07-2026 by NA

Explanation

A custom is a tax imposed on goods that are imported into or exported out of a country.

This tax is primarily used to regulate trade, protect domestic industries, and generate revenue for the government.

Explanation

When the State Bank wants to decrease the money supply, it sells government securities.

This action takes money out of circulation as buyers pay for the securities.

This thereby reducing the amount of money available in the economy.

Explanation

A "multinational" refers to a company that operates in multiple countries.

It managing production or delivering services across national borders.

This allows the company to have a global presence.

Explanation

Sugarcane needs the maximum water per hectare among these crops.

It requires extensive irrigation due to its high water demand for growth and development.