Introduction Test

Result

Introduction Test - 23

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Weekly Quiz Competition

Question 1
1 / -0

Quantitative Methods aim at influencing _______________________.

A
The end-use of credit in specific areas

B
The total volume of credit in the banking system

C
Both (a) and (b)

D
Neither (a) nor (b)

Solution

Quantitative Methods aim at influencing the total volume of credit in the banking system.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.
Question 2
1 / -0

In the context of Indian Economy, there may be a need for importing foodgrains in case of:

A
Balancing exports and imports of foodgrains.

B
Severe shortages of foodgrains due to drought, floods, etc.

C
Increase in the consumption of foodgrains

D
None of the above

Solution

In the context of Indian Economy, there may be a need for importing food grains in case of severe shortages of food grains due to drought, floods, etc.
To cope up with the shortage of food, Government of India imports food grains from abroad to sustain the food crisis in the domestic economy.
Question 3
1 / -0

Disinvestment Process in India is criticized on the following grounds ________________.

A
Lack of Proper Planning

B
Privatisation of Profit-making PSUs only

C
Failure to meet Budget Targets

D
All of the above

Solution

Disinvestment Process in India is criticized on the following grounds :-a) Lack of Proper Planning b) Privatization of Profit-making PSUs only
c) Failure to meet Budget Targets
Disinvestment can be defined as a process of transferring the ownership of an enterprise from public sector to the private sector of the economy.
Question 4
1 / -0

Which of the following is not a quantitative method of credit control __________________.

A
Bank Rate policy

B
Open market operations

C
The Repo Rate

D
Consumer credit regulation

Solution

Quantitative or traditional methods of credit control consist of banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control consist of the guideline of margin requirement, credit rationing, regulation of customer credit and direct action.
Quantitative controls are planned to control the volume of credit created by the banking system qualitative measures or selective methods are intended to regulate the flow of credit in specific uses.
The correct option is D.
Question 5
1 / -0

In India, the three major objectives of economic policy are growth, social justice and price stability. Which of the above objectives can be pursued most effectively by the monetary authorities of the country?

A
Growth

B
Social Justice

C
Price Stability

D
None of the above

Solution

In India, the three major objectives of economic policy are growth, social justice and price stability. Social Justice can be pursued most effectively by the monetary authorities of the country. Social justice can be defined which is an ideal situation where everone gets equal treatment; any sort of dicimination is not applicable.
Question 6
1 / -0

Quantitative measures to control credit are also called _____________.

A
General Measures

B
Selective Methods

C
Both (a) and (b)

D
Neither (a) nor (b)

Solution

Quantitative or the traditional method of credit control comprises of bank rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control include directive of margin requirement, credit rationing, regulation of consumer credit and direct action.
The correct option is A.
Question 7
1 / -0

Which of the following statement is correct?

A
Supply of land is perfectly elastic

B
Fertility of land cannot change

C
Land does not yield any result unless human efforts are employed

D
Supply of land can be increased

Solution

Land does not yield (product) anything, unless human efforts are employed is correct statement.
Question 8
1 / -0

Which of the following methods cannot be used as an instrument of Quantitative Control of credit by the Central Bank?

A
Bank Rate Policy

B
Open Market Operations

C
Change in Margin Requirements

D
Changes in Reserve Requirements

Solution

Change in margin requirements cannot be used as an instrument of Quantitative Control of credit by the Central Bank. Change in margin requirement is used as an instrument of Qualitative control of credit. The margin requirement refers to the difference between the current value of the security offered for loan and the value of loan granted.
Question 9
1 / -0

In India, in which of the following, Foreign Direct Investment (FDI) is not allowed?

A
Construction and Maintenance of Roads

B
Atomic Energy

C
Airport

D
Hotels and Tourism
Question 10
1 / -0

Which of the following pairs is not correctly matched?

A
WTO - Generally forbids the use of quantitative restrictions on trade

B
IMF - Provides finance to correct disequilibrium in balance of payments

C
RBI - Promotes trade among countries

D
IBRD - Gives long term loans for development

Solution

Option C incorrectly matched as RBI promotes monetary policy in India and the WTO promotes trade among countries.

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Introduction Test - 23

Result

Introduction Test - 23

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Question 1

The end-use of credit in specific areas

The total volume of credit in the banking system

Both (a) and (b)

Neither (a) nor (b)

Solution

Question 2

Balancing exports and imports of foodgrains.

Severe shortages of foodgrains due to drought, floods, etc.

Increase in the consumption of foodgrains

None of the above

Solution

Question 3

Lack of Proper Planning

Privatisation of Profit-making PSUs only

Failure to meet Budget Targets

All of the above

Solution

Question 4

Bank Rate policy

Open market operations

The Repo Rate

Consumer credit regulation

Solution

Question 5

Growth

Social Justice

Price Stability

None of the above

Solution

Question 6

General Measures

Selective Methods

Both (a) and (b)

Neither (a) nor (b)

Solution

Question 7

Supply of land is perfectly elastic

Fertility of land cannot change

Land does not yield any result unless human efforts are employed

Supply of land can be increased

Solution

Question 8

Bank Rate Policy

Open Market Operations

Change in Margin Requirements

Changes in Reserve Requirements

Solution

Question 9

Construction and Maintenance of Roads

Atomic Energy

Airport

Hotels and Tourism

Question 10

WTO - Generally forbids the use of quantitative restrictions on trade

IMF - Provides finance to correct disequilibrium in balance of payments

RBI - Promotes trade among countries

IBRD - Gives long term loans for development

Solution

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