INDIAN ECONOMY QUIZ 12

Consider the following statements:

1. GNP is always higher than GDP.
2. GDP does not include the net factor income from abroad.

Which of the statements given above is/are incorrect?

Consider the following statements regarding the 'Benami Transactions Act 2016':

1. A transaction where a property is held by a person, but has been paid by another person is called a benami transaction.
2. Unaccounted cash deposited in others' account is benami transaction.

iii. Property transactions among the family members is benami transaction.

Which of the statements given above is/are incorrect?

The components of the Indian money market are .........?

1. Treasury bills
2. Call Money market

iii. Commercial Bills

1. Repo and Reverse repo markets
2. Mutual Funds

Consider the following economists:

1. Dandekar and Rath
2. P.K. Bardhan Who had made the study of poverty in the Indian context?

iii. B.S. Minhas

1. IJ. Ahluwalia

Consider the following statements:

1. A policy of low repo rate by the RBI decreases the money supply in the economy.
2. A policy of high repo rate by the RBI increases the money supply in the economy.

Which of the statements given above is/are correct?

Assertion (A): Investment companies have not been able to attract much public savings in India. Reason (R): Investment companies are pure financial intermediaries and they specialise in the mobilisation of public saving for investment in corporate securities.

Codes:

Consider the following cases in an economy:

1. Domestic currency heads for depreciation.
2. Exports become less competitive with imports getting costlier.

iii. Real cost of borrowing decreases.

Which of the above are consequences of inflation?

Consider the following problems faced by India:

1. Large scale poverty
2. High mortality rate of children of poor parents

iii. Prevalence of under-age marriages

1. Adverse sex-ratio

Which of the above socio-economic factors are responsible for high birth rate?

What were the expected outcomes of the Jan Dhan Yojana?

1. It Increased credit creation power of banks.
2. It decreased dependency on cash.

Assertion (A): In India, the traditional small scale industries have greater employment potential than the modern small scale industries.

Reason (R): The value of capital per worker in traditional small scale industries is small than the value of capital per worker in modern small scale industries.

Codes:

Consider the following:

1. Annual increment in salary.
2. Payment of bonus to employees.

iii. Interest payment on public debt.

1. Pension payment.

Which of the above is/are not transfer payments?

The Indian Railway budget has been merged with the Union budget from FY 2017-18. Consider the following statements given below in context to the Railway budget before the merger:

1. The budgetary support given by the Central government to the Railways was treated as loan in perpetuity (Capital-at-Charge).
2. Ministry of Railway used to remit dividend to the Central government.

Which of the above statements is/are correct?

Consider the following statements regarding 'Sovereign Gold Bonds' scheme:

1. These are government securities denominated in grams of gold.
2. These are issued by RBI on behalf of Govt. of India.

iii. If the market price of gold declines, investors will be protected against capital loss.

Select the incorrect statement/s using the code given below:

Consider the following statements with respect to the Indian context:

1. A Sick Company is defined as one whose accumulated losses in any financial year are equal to or more than 50% of its average net worth during previous four financial years.
2. The Government had set-up Board of Industrial and Financial Reconstruction in 1987.

Which of the statement given above is/are incorrect?

Which among the following are the recommendations of the Urjit Patel Committee report of on monetary policy?

1. Curtailment of the fiscal deficit.
2. Inflation anchor at four per cent.

iii. Providing adequate liquidity in the money and capital market.

1. Pegging the exchange value of Indian Currency.

Select the answer from the code below:

Which of the following will help in achieving inclusive growth in the Indian economy?

1. Higher employment growth rate.
2. Reducing gender discrimination.

iii. Higher level of income inequality.

Select the correct answer using the code given below:

..................increase/s the level of inflation in an economy.

1. Deficit financing
2. Reduction in Indirect taxes

iii. Increase in Black money in the economy

1. Defective supply chain

Consider the following statements regarding NPCI:

1. It is a private company charged with a responsibility of guiding India towards being a cashless society.
2. Its objective is to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems.

iii. It aims to facilitate an affordable payment mechanism to help financial inclusion.

Which of the statements given above is/ are correct?

Assertion (A): India has a big potential demographic dividend.

Reason (R): India's population growth rate is declining.

Codes:

Consider the following statements about SEBI:

1. There are total six members excluding the Chairman, on the Board.
2. Central Government appoints four members representing 4 ministries.

iii. RBI and the Banking Division have one member each on the Board.

Select the incorrect statements:

Which of the following are components of India's Foreign Exchange Reserves?

1. Special Drawing Rights
2. Foreign Currency Assets

iii. Reserve Tranche Position

1. Gold

Select the correct answer using the code given below:

Which of the following were in the Fiscal Responsibility and Budget Management Act, 2003?

9. Primary deficit to be abolished 2008-09.
10. Fiscal deficit should be brought down 3% of GDP.

Which of the above statement/s is/are correct. Select from the codes given below:

Arrange in chronological order, the establishment of the following in India:

1. Industrial Investment Bank of India.
2. R.B.I. working group on Development Financial Institutions.

iii. Small Industrial Development Bank of India.

1. Insurance Regulatory and Development Authority (IRDA).

Consider the following statements:

1. RBI increases repo rate to reduce inflation.
2. To reduce inflation government can increase taxes and cut spending.

iii. RBI uses Wholesale Price Index (WPI) as the key measure of inflation.

Which of the statements given above are correct?

Consider the following statements regarding 'Banks Board Bureau (BBB)':

1. It will recommend for appointment of heads in PSBs and Financial Institutions.
2. It will help PSBs in developing strategies and capital raising plans.

iii. It will improve the governance of the Public Sector Banks (PSBs).

Select the correct statements

Consider the following statements regarding the functions of RBI:

1. It is known as the lender of last resort.
2. Apart from acting as a banker to the commercial banks, RBI acts as a banker to the Government of India only, and not to the state governments.

iii. It acts as the controller of money supply and credit creation in the economy.

Which of the above statement/s is/are incorrect?

Identify some of the effects of parallel economy in India:

1. Loss of revenue to the Government.
2. Greater burden on honest tax payers.

iii. Results in equitable distribution of wealth and income.

1. Encouragement to non-essential item of conspicuous consumption.

Find the correct combination from the codes given below:

Consider the following statements about Market Economy Status (MES):

1. Exports from a country with Market Economy Status (MES) are accepted at the production costs and selling price as the benchmark.
2. It allows the country to impose unlimited anti-dumping duty on the goods imported from that country.

Which of the statements given above is/ are incorrect?

Consider the following actions:

1. Devaluing the value of rupee by government.
2. Sale of assets held by foreigners in India.

iii. Reduction in food subsidy by the government.

1. Increasing FDI limit in various sectors.

Which of the above can help in overcoming Balance of Payment crisis?

Indigenously Designed, Developed and Manufactured (IDDM), defence products means:

1. Indigenously designed, developed and manufactured with minimum 40% indigenous
2. Not indigenously designed or developed but have a least 60% indigenous content.

Consider the following statements regarding Market Stabilization scheme (MSS):

1. It is a monetary policy intervention to withdraw excess liquidity by selling government securities in the economy.

Ii. These bonds are floated on behalf of the government by the RBI.

iii. These are long-tenure bonds, of more than 2 years maturity.

Which of the statements given above is/are incorrect?

Natural growth of population is the outcome of the following:

1. Crude Birth Rate
2. Crude Death Rate

iii. Migration

1. Marriages

Codes:

Which of the following have occurred in the short run due to "Demonetization"?

1. Aggregate demand shock
2. Aggregate supply shock

iii. Increase in discretionary consumption expenditure

1. Uncertainty regarding investment plans

Select the correct answer using the code given below:

Green Bonds in India..............

1. can be issued both by public and private sector banks.
2. is a low-risk bonds.

Read these following sentences and answer it.

1. Asia's First Export Processing Zone was set-up in Kandla, India in 1965
2. India is one of the first in Asia to recognise the effectiveness of the Export Processing.

Which of the statement/s given above is/are correct?

Consider the following statements about SEBI:

i Its primary function is to protect the interests of investors in securities and to regulate the securities market.

ii Collective investment schemes of NIDHI and Chit Fund are regulated by SEBI.

Which of the statements given above is/are incorrect?

Consider the following statements regarding 'headlines inflation' in the context of India Economy?

1. It is measured at the wholesale as well as consumer price.
2. We see enough diversity among the India consumer; that is why we have four variants of the inflation index at the consumer prices.

iii. The concept was first forwarded by Mr. C.Rangarajan in the late 1980s.

Codes:

Consider the following statements regarding the 'Banking Ombudsman Scheme":

1. Banking Ombudsman is appointed by the RBI.
2. RBI acts as the banking Ombudsman.

iii. It resolves customer complaints against deficiency in certain banking services. 

iv.It has been introduced under the Reserve Bank of India Act 1934.

Which of the statements given above is/are incorrect?

Depreciation of value of a currency results in ...........

1. Increased value of remittances country receives.
2. Increase in trade deficit.

iii. Increase in Exports. 4. Rise in inflation.

Select the correct answer using the code given below:

Consider the following statements regarding 'Contingency Fund of India:

1. It is at the disposal of the president of India.
2. It is at the disposal of the Prime Minister of India.

iii. The funds spent shall ultimately be approved by the parliament.

1. The funds spent are recouped from the Consolidated Fund of India.

Select the correct statement/s using the code given below:

Consider the given statements regarding subsidies':

1. They are ideally short-term measures
2. While everybody benefits from it, they are paid by few.

Which of the above is/are correct?

Which of the following statements are correct about rising NPAs of banks in India?

1. Rising NPAs are due to slow down in the world economy.
2. Private Sector banks have lower NPAs in comparison Public Sector Banks.

iii. Rising NPAs are due to droughts in India.

Use the codes:

Assertion (A): There was remarkable acceleration in deposit mobilisation of commercial banks after the nationalisation of 14 commercial banks in 1969.

Reason (R): There was tremendous branch expansion, rise in interest rates and introduction of myriad

innovative deposit scheme.

Choose the correct answer from the codes given below:

Codes:

Consider the following changes that have been introduced by Union Cabinet in a year's budget?

i Merger of Railway budget with the general budget.

ii Advancement of budget date.

iii Scrapping the distinction between plan and non-plan expenditure.

In which year these were done?

Consider the following statements regarding the 'Gold Monetization Scheme":

1. It will help in the mobilization of gold held by households and institutions.
2. It will facilitate the use of gold for productive purpose.

iii. It will help in reducing import of gold and Current Account Deficit (CAD).

Which of the statements given above is/are incorrect?

Which of the following were recommended Narsimham Committee - I regarding the PSL norms of banks:

1. Cutting it to 10 percent from its present level of 40 percent.
2. Shuffling of the items covered by it.

iii. Phasing out of the PSL, obligation.

Codes: