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Revision Plan Day 7- Economics

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Questions Day 7- Economics

1. The concept of small banks has been in news recently. What does the “small” in small banks imply?

  1. Focus areas are small and less creditworthy customers
  2. The limited branches for operation.
  3. Limitation in the number of services offered when compared to commercial banks.
  4. Ceiling on deposits that can be received from their consumers

2Consider the statements regarding Public accounts committee:

  1. It is for the first time constituted under the Government of India Act, 1919.
  2. It is constituted by the Parliament every two years for parliamentary oversight over finances of the government.
  3. It is the largest parliamentary committee existing today.
  4. The committee is empowered to call witnesses to give evidence and produce documents required by the committees.

which of the following statements is/are correct?

  1. 4 only
  2. 1 and 4
  3. 1, 2 and 4
  4. 1, 2,3 and 4

3. Which of the following measures could be taken by RBI during an inflationary situation in India

  1. Increasing the repo rate.
  2. Increasing the statutory liquidity ratio (SLR)
  3. Lowering the cash reserve ratio (CRR).
  4. Conducting sterilisation operations

Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 1, 3 and 4 only
  3. 1, 2 and 4 only
  4. All of the above

4Consider the following statements regarding inflation:

  1. Inflation increases the burden of indirect taxes and reduces the burden of direct taxes.
  2. Inflation will cause an increase in the nominal value of gross tax revenue whereas the real value of tax collection need not increase.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

5. Which of the following best defines the concept of insurance penetration?

  1. The ratio of premium underwritten in a given year to the total population (per capita premium).
  2. The percentage of insurance premium underwritten in a given year to Gross Domestic Product (GDP).
  3. The average number of people insured in a family of four.
  4. The ratio of the total number of premium underwritten in a given year to that in the previous year.

6. Consider the statement regarding Green Bond Initiative:

  1. The Climate Bonds Initiative is an international, investor focused not-for-profit organization.
  2. It’s the only organisation working to mobilise $100 trillion bond market for climate change solutions.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 and 2

7. Consider the following statements about Marginal Standing Facility

  1. The scheme has been introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system.
  2. As it is a short-term credit facility for banks once they exhaust all borrowing options there is no lower limit for borrowing

Which of the above statements is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. None

8. Which of the following listed below are the objectives of IMF?

  1. Foster global monetary cooperation and securing financial stability.
  2. Facilitate international trade.
  3. Promote high employment and sustainable economic growth.
  4. Reduce poverty around the world.

Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 1, 2 and 3 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4

  9. Consider the following statements regarding quantitative easing:

  1. Quantitative easing is an unconventional fiscal policy measure adopted by the government to increase the money supply in the market.
  2. Printing of new banknotes is a method often used in quantitative easing.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

10. Consider the statements regarding National Investment Fund:

  1. It is funded from disinvestment of the CPSEs in the country.
  2. 75% of the income of the NIF is used in social sector schemes such as those that promote education, health and employment.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 and 2

11. Consider the following statements regarding zero-coupon bonds:

  1. A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity.
  2. In zero-coupon bonds, the investor has an option to receive interest rates semi-annually or annually.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

12. Consider the statements regarding Banking Cash Transaction Tax(BCTT):

  1. BCTT is a type of tax that was levied on cash transactions above a specified limit by an individual or HUF from any non-saving account of a scheduled bank in a single day
  2. It has never been implemented in India.
  3. The Committee of Chief Ministers on Digital Payments has recommended bringing back BCTT (Banking Cash Transaction Tax) in order to promote digital payments.

Which of the above statements is/are true?

  1. 3 only
  2. 1 and 3
  3. 2 and 3
  4. All the above

13. Which of the following bodies represents the highest form of economic integration:

  1. European Economic Community
  2. European Union
  3. The European Monetary Union
  4. ASEAN

14. The decision on withdrawal of legal tender status of a currency (demonetization) is taken by:

  1. Governor of RBI as recommended by Board of Directors.
  2. Union Finance Minister as recommended by RBI governor
  3. Union Government with the permission of Parliament.
  4. Government after the recommendation by the Central Board of Directors of the RBI

15. Which of the statements is/are true regarding Trade Receivables Discounting systems (TReDS)?

  1. It aims to Create Electronic Bill Factoring Exchanges that could electronically accept and settle bills.
  2. The TReDS will facilitate the discounting of both invoices as well as bills of exchange.

Select the correct answer using the code given below.

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 and 2

16. Which among the following are the functions of the Financial Stability and Development Council?

  1. Macro-prudential supervision of the economy,
  2. Inter-regulatory coordination
  3. Financial literacy
  4. Financial inclusion

Select the correct answer using the codes given below.

  1. 1 and 4
  2. 1 and 2
  3. 2, 3 and 4
  4. 1, 2, 3 and 4

17. Consider the following statements

  1. Both Angel investors and Venture capitalists does seed funding
  2. Venture capital can be from anyone where angel investors are friends or from family circle’s only
  3. The foreign angel investors are not taxed on their seed funding
  4. Angel investors are individuals where Venture capital is a company or business rather than an individual

Which of the above statements are correct?

  1. 1 and 4
  2. 2 and 3
  3. 3 and 4
  4. 1, 2, 3 and 4

18. A currency is said to be freely convertible if:

  1. The currency cannot be exchanged for another currency because of foreign exchange regulations.
  2. The currency can be converted for another at the rates determined by International Monetary Fund
  3. The currency can be converted for another at market determined exchange rates
  4. The currency can be converted for another at rates determined by the central bank of the country.

19. Consider the statements regarding Global Investment Agreement:

  1. It is mooted by India and other major developing countries in WTO.
  2. It focusses on Investor-State Dispute Settlement (ISDS) mechanism.

Which of the above statements is/are true?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 and 2

20The term swiss formula is associated with which of the following?

  1. Method of tariff calculation in WTO
  2. Infrastructure PPP funding method
  3. Formula for calculation of GDP
  4. None of the above.

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