Table of Contents
INDIAN ECONOMY MCQs
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Q81. What is meant by foreign exchange rate?
a) rate of exchange measures units of production
b) rate of exchange measures number of units of one currency which is exchanged in the foreign market for one unit of another
c) an exchange rate which estimates the market share
d) a rate of exchange which is fixed by the Government
ANSWER:B
Q82. How many types of exchange rate do we have?
a) 5
b) 7
c) 3
d) 2
ANSWER:D
Q83. Gold Standard System of Exchange Rate is the variant of which exchange
rate system?
a) Adjustable Peg System of Exchange rate
b) Flexible Exchange Rate System
c) Fixed Exchange Rate System
d) B only
ANSWER:C
Q84. How do we determine the rate of exchange of a country’s currency?
a) by the forces of import & export
b) by the forces of supply and demand in the foreign exchange market
c) by the payment of international loans
d) with the help of the investment in rest of the world
ANSWER:B
Q85. Why is foreign exchange demanded?
a) payments of international loans
b) gifts & grants to rest of the world
c) investment in rest of the world
d) all of the above
ANSWER:D
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Q86. What is Foreign Exchange Market?
a) refers to the market of export & import of goods
b) a market for national currencies of different countries in the world
c) a market where transactions are meant for future delivery
d) a only
ANSWER: B
Q87. Which one is the function of Foreign Exchange Market?
a) transfer function ,credit function
b) hedging functions
c) a only
d) a & b both
ANSWER:D
Q88. What is the principal characteristic of Spot Market?
a) it prevail at the time when transactions are incurred
b) it does not prevail in future deliveries
c) a only
d) a & b both
ANSWER:D
Q89. How forward market can be defined?
a) a market where the transactions are meant for future delivery
b) it is that place where the imported goods are sold
c) a market which handles only current transactions
d) b only
ANSWER:A
Q90. What is Managed Floating System?
a) it is related to the adjustment of forward transactions
b) a system that allows adjustment in exchange rate according to a set of rules and regulations
c) a system which includes flexible exchange rate
d) a system that allows adjustment in exchange rate without any rules
ANSWER: B
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Q91. What is the current Bank Rate?
a) 4%
b) 3%
c) 6.75%
d) 8%
ANSWER:C
Q92. How much the difference between Repo Rate and Reverse Repo is going on?
a) 0.5%
b) 0.2%
c) 0.3%
d) 0.7%
ANSWER:A
Q93. What is the current CRR & CAR?
a) 4% (CRR)
b) 12% (CAR)
c) a & b are correct
d) none
ANSWER:C
Q94. How much borrowings a bank can do through MSF window?
a) 2% of the NDTL
b) 1% of the NDTL
c) 3% of the NDTL
d) 5% of the NDTL
ANSWER:B
Q95. What was the WPI Food Inflation in August 2016?
a) 9.24%
b) 6.34%
c) 5.54%
d) 8.23%
ANSWER:D
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Q96. On 31st March 2016 the External Debt to GDP ratio was?
a) 24.5%
b) 23.8%
c) 20.10%
d) None
ANSWER:B
Q97. How much the Oil Imports were in 2015-16?
a) $64.4bn
b) $54.76bn
c) $32.35bn
d) 22.10bn
ANSWER:A
Q98. Which among the following is the current rate of excise duty?
a) 13%
b) 12%
c) 23%
d) 15%
ANSWER:B
Q99. What was the production of onion in 2015-16?
a) 22mt
b) 24mt
c) 21mt
d) None
ANSWER:C
Q100. What is the state share of taxes and duties?
a) 25%
b) 26%
c) 30%
d) 23%
ANSWER:D
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