Economy Questions Of Civil Services Pre 2020
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?
- Not depending on short-term foreign borrowings
- Opening up to more foreign banks
- Maintaining full capital account convertibility
Select the correct answer using the code given below:
a) 1 only
b) 1 and 2 only
c) 3 only
d) 1, 2 and 3
Answer. (a)
If you withdraw ₹ 1,00,000 in cash from you Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be
a) to reduce in by ₹ 1,00,000
b) to increase it by ₹ 1,00,000
c) to increase it by more than ₹ 1,00,000
d) to leave it unchanged
Answer. (d.) Aggregate money supply means M3 (i.e Broad Money) which is equal to coin or currency with public + Demand Deposits + Time Deposits . so here money is transferred to Demand Deposit to Currency with public , means M3 remains unchanged.
“Gold Tranche” (Reserve Tranche) refers to
a) a loan system of the World Bank
b) one of the operations of a Central Bank
c) a credit system granted by WTO to ito members
d) a credit system granted by IMF to its members
Answers. (d)
What is the importance of the term “Interest coverage Ratio” of a firm in India?
- It helps in understanding the present risk of a firm that a bank is going to give loan to
- It helps in evaluating the emerging risk of a firm that a bank is going to give loan to
- The higher a borrowing firms’s level of Interest Coverage Ration, the worse is its ability to service its debt.
Select the correct answer using the code given below:
a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1,2 and 3
Answer . A) 1 and 2 Only
Consider the following statements:
- The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI)
- The WPI does not capture changes in the prices of services, which CPI does
- Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct:
a) 1 and 2only
b) 2 only
c) 3 only
d) 1,2 and 3
Answer. a
With reference to the Indian economy, consider the following statements :
- Commercial Paper is a short-term unsecured promissory note.
- ‘Certificate of Deposit is a long-term of India to a corporation.
- ‘Call Money’ is a short-term finance used for interbank transactions.
- “Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 4 only
(c) 1 and 3 only
(a) 2, 3 and 4 only
Answer. c
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
a) It is the investment through capital instruments essentially in a listed company.
b) It is a largely non-debt creating capital flow.
c) It is the investment which involves debt-servicing
d) It is the investment made by foreign institutional investors in the Government securities.
Answer. B)
With reference to the international trade of India at present, which of the following statements is/are correct?
1. India’s merchandise exports are less than its merchandise imports.
2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
3. India’s exports of services are more than its imports of services.
4. India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:
a) 1 and 2 only
b) 2 and 4 only
c). 3 only
d) 1, 3 and 4 only
Answer. (d)
In the context of the Indian economy, non-financial debt includes which of the following ?
1. Housing loans owed by households
2. Amounts outstanding on credit cards
3. Treasury bills
Select the correct answer using the code given below : a) 1 only (b) 1 and 2 only (c) 3 only (d) 1, 2 and 3
Answer .c)
With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?
1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment
Select the correct answer using the code given below: a) 1 and 2 only b) 2 only c) 1 and 3 only d) 1, 2 and 3
Answer. c)
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?
1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below: a) 1 and 2 only b) 2 only c) 1 and 3 only d) 1, 2 and 3
Answer. b
With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (₹ per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct? a) 1 and 2 only b) 3 and 4 only c) 3 only d) 1, 2 and 4 only
Answer. b
Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2
Answer. B
In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits ?
1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer
2. Cost of a new computer if some miscreant wilfully damages it, if proved so
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
4. Cost of defence in the Court of Law if any third party files a suit
Select the correct answer using the code given below: a) 1, 2 and 4 only b) 1.3 and 4 only c) 2 and 3 only d) 1, 2, 3and4
Answer. (b)
Also refer :
- Download the pdf of Important MCQs From the History Of Ancient India
- List Of Important Inscriptions In India
- Geography Study Materials : click here.
