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- Question 1 of 50
1. Question
The type of note issue system followed in India is:
Hint
The current system of Indian government to issue notes is ‘Minimum Reserve System’. Under this policy, the minimum reserves to be maintained in the form of gold and foreign exchange should consist of ₹200 crore. Out this reserve, the value of gold to be maintained is ₹115 crore.
- Question 2 of 50
2. Question
Inflation is caused by:
Hint
Inflation is a measure of the rate of rising prices of goods and services in an economy. Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods.
- Question 3 of 50
3. Question
The system of issuing and monitoring of money in the market is known as:
Hint
The system of issuing and monitoring of money in the market is known as minimum reserve ratio. Minimum reserves allow credit institutions to smooth out fluctuations in liquidity such as those caused by the demand for banknotes.
- Question 4 of 50
4. Question
During colonial period, British capital was mainly invested in:
Hint
During colonial period, British capital was mainly invested in Agriculture. This era saw the introduction and proliferation of many crops as cash crops such as Indigo, cotton, jute, tea, tobacco.
- Question 5 of 50
5. Question
Which among the following Indian State does not transact its business through the Reserve Bank of India?
Hint
State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except the Government of Sikkim.
- Question 6 of 50
6. Question
Devaluation of money means:
Hint
The internal value of money is the value of money when buying goods and services. The external value of money is what the currency is worth, as measured in foreign currency. This is the exchange rate. Devaluation is the deliberate downward adjustment of the value of a country’s money relative to another currency.
- Question 7 of 50
7. Question
Which among the following a unit of measurement is known as paper gold?
Hint
Special drawing rights (SDR) are known as paper gold. SDR are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). SDRs are units of account for the IMF and not a currency per se. They represent a claim to currency held by IMF member countries for which they may be exchanged.
- Question 8 of 50
8. Question
Demand of commodity mainly depends upon:
Hint
The demand for a good or service depends on two factors: (1) its utility to satisfy a want or need, and (2) the consumer’s ability to pay (Purchasing power) for the good or service.
- Question 9 of 50
9. Question
What are the main components of basic social infrastructure of an economy?
Hint
Social infrastructure includes the construction and maintenance of facilities that support social services. These can include healthcare, education and Civil amenities.
- Question 10 of 50
10. Question
A firm sells new shares worth ₹1000 directly to individuals. This transaction will cause:
Hint
Gross Domestic Product (GDP) measures the value of goods and services produced within a country’s borders, by citizens and non-citizens alike. Gross National Product (GNP) measures the value of goods and services produced by only a country’s citizens but both domestically and abroad. Hence, If the firm sells new shares directly to individuals it has no effect on the GDP or GNP.
- Question 11 of 50
11. Question
Basic infrastructure facilities in Economics are known as:
Hint
Social Overhead Capital (SOC) is the basic facilities and services needed for the communities and societies. The SOC term can be used as the economic overhead facilities and Basic infrastructure facilities.
- Question 12 of 50
12. Question
Which among the following subjects is not an aim of the monetary policy of the Reserve Bank of India?
Hint
The monetary policy states the use of financial instruments under the control of the Reserve Bank of India (RBI) to standardise magnitudes such as availability of credit, interest rates, and money supply to achieve the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934. Social justice is not an aim of the monetary policy of RBI.
- Question 13 of 50
13. Question
The Government of India made it obligatory on the part of all commercial banks that they should give some cash amount while purchasing Government bonds. What would you call this?
Hint
RBI buys and sells government securities or bonds to control the money supply and interest rates. To increase the money supply, the RBI will purchase bonds from banks, which injects money into the banking system. It will sell bonds to reduce the money supply. Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities.
- Question 14 of 50
14. Question
The receipts of which of the following taxes/duties are not shared with the States?
Hint
The Centre earns money through several taxes, such as corporate tax, income tax, goods and services tax, Union excise duty and customs duty. A part of the taxes is shared with state governments. The taxes, which are not shared with states include a surcharge on income tax, some cesses like education and road.
- Question 15 of 50
15. Question
Evaluating all the options to find out the most suitable solution to business problems is interdisciplinary activities. It is called:
Hint
It is called Operations research (OR). OR is an analytical method of problem-solving and decision-making that is useful in the management of organizations.
- Question 16 of 50
16. Question
The national income of a country is:
Hint
The national income of a country is total productive income. It can be defined as the total market value of all final goods and services produced in the economy in a year.
- Question 17 of 50
17. Question
A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as:
Hint
Using Defence Strategies a seller or buyer protects his business or holdings from changing prices and takes action against it.
- Question 18 of 50
18. Question
The incidence of Goods and Services Tax (GST) falls on:
Hint
Goods and Services Tax (GST) is an indirect tax used in India on the supply of goods and services. The GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.
- Question 19 of 50
19. Question
What is book-building?
Hint
Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered.
- Question 20 of 50
20. Question
The method of calculating the national income by the method is otherwise known as:
Hint
The product or value-added method is a way of computing the national income of a country. This system is also known as output or inventory method.
- Question 21 of 50
21. Question
Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issue is required to maintain assets worth not less than:
Hint
Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. Under the MRS, the RBI has to keep a minimum reserve of Rs 200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total Rs 200 crores, Rs 115 crore should be in the form of gold coins or gold bullion and the rest in the form of foreign currencies.
- Question 22 of 50
22. Question
Which amidst the following taxes collected by the Union is not mandated to be assigned to the States?
Hint
Article 246 of the Indian Constitution, distributes legislative powers including taxation, between the Parliament of India and the State Legislature. Taxes of Central government under constitutionally established scheme of taxation are: taxes on income other than agricultural income; duties of customs; corporation tax; taxes on capital value of assets, taxes on capital of companies, etc.
- Question 23 of 50
23. Question
Devaluation usually causes the internal prices to:
Hint
Devaluation is the deliberate downward adjustment of the value of a country’s money relative to another currency. It has effects on a country’s international trade by alluring traders but, usually, internal prices remain unchanged.
- Question 24 of 50
24. Question
One of the objectives of Industrial Licensing Policy in India was to ensure:
Hint
objectives of the Industrial Licensing Policy in India were to establishment, expansion and ownership of private industries according to priorities of five-year plans and to check the monopoly tendency in industries. It also had the objective of balanced industrial development across regions.
- Question 25 of 50
25. Question
Currency notes of ₹2 denomination and above are liabilities of:
Hint
The Reserve Bank has the sole authority to issue banknotes in India. The Currency notes of ₹2 and above denominations are banknotes and are issued with the signature of the Governor, Reserve Bank of India. The one rupee note is the only note bearing the signature of the Finance Secretary and not the Governor of the RBI.
- Question 26 of 50
26. Question
Reserve Bank of India keeps some securities against notes. These securities should not be less than the prescribed quantity/amount of:
Hint
Statutory Liquidity Ratio (SLR) is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities (or any bond). It is basically the reserve requirement that banks are expected to keep before offering credit to customers.
- Question 27 of 50
27. Question
Merchant Banking is an institution which provides finances to:
Hint
The term merchant bank refers to a financial institution that conducts underwriting, loan services, financial advising, fundraising services and finances to international trade for large corporations and high-net-worth individuals (HWNIs). Unlike retail or commercial banks, merchant banks do not provide financial services to the general public.
- Question 28 of 50
28. Question
Bank rate is that rate on which:
Hint
Bank rate (discount rate) is the rate of interest which a Central Bank of Country charges on its loans and advances to the commercial banks.
- Question 29 of 50
29. Question
Which from the following is not true when the interest rate in the economy goes up?
Hint
Because higher interest rates mean higher borrowing costs, people will eventually start spending less. The demand for goods and services will then drop, which will cause inflation to fall. Thus, higher borrowing costs will increase production costs and decrease return on capital.
- Question 30 of 50
30. Question
Which of the following is the biggest head of non-plan expenditure of the Government of India?
Hint
Non-Plan Expenditure is money that’s spent on sustaining the country like defense, postal deficit, subsidies, etc and Plan Expenditure is the money that is spent on improving the country like the money spent on dams, roads, etc. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies.
- Question 31 of 50
31. Question
Open market operation refers to
- Question 32 of 50
32. Question
Which is the first Public Sector Corporation of independent India?
- Question 33 of 50
33. Question
Which one of the following is not considered as an infrastructure Investment ? Investment in a
- Question 34 of 50
34. Question
According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes
- Question 35 of 50
35. Question
Who are the creditors of corporation ?
- Question 36 of 50
36. Question
When aggregate supply exceeds aggregate demand
- Question 37 of 50
37. Question
A country has sufficient international liquidity if it can cover any balance of payment deficit with enough of
- Question 38 of 50
38. Question
Equilibrium price means
- Question 39 of 50
39. Question
When marginal utility is zero, the total utility is
- Question 40 of 50
40. Question
Which one of the following taxes is collected and utilized by the State Governments ?
- Question 41 of 50
41. Question
Which of the following functions as a controller of credit in India?
- Question 42 of 50
42. Question
The ratio of a bank’s cash holdings to its total deposit liabilities is called the
- Question 43 of 50
43. Question
Investment is equal to
- Question 44 of 50
44. Question
In a business, raw materials, components, work in progress and finished goods are jointly regarded as
- Question 45 of 50
45. Question
The difference between the GNP and the NNP is equal to the
- Question 46 of 50
46. Question
Which Indian city has been chosen by the World Bank for setting up its back office operations?
- Question 47 of 50
47. Question
Which one of the following currencies has the highest value in terms of rupee ?
- Question 48 of 50
48. Question
What is known as the open market operation of the RBI ?
- Question 49 of 50
49. Question
Which amidst the following is not a credit rating agency ?
- Question 50 of 50
50. Question
Interest on public debt is part of