Indian Economy Test 32

Result

Indian Economy Test 32

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Weekly Quiz Competition

Question 1
1 / -0

Consider the following statements:
$$1$$. Indian Depository Receipt is an instrument denominated in Indian rupees in the form of a depository receipt created by the custodian of securities registered with the Securities and Exchange Board of India against the underlying equity of issuing company.
$$2.$$ Standard Chartered $$PLC$$ became the first global company to file for an issue of Indian depository receipts in India.
Which of the statements given above is/are correct?

A
Only $$1$$

B
Only $$2$$

C
Both $$1$$ and $$2$$

D
Neither $$1$$ nor $$2$$

Solution

IDR stands for Indian Depository Receipts. As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. An IDR is a way for a foreign company to raise money in India. In an IDR, foreign companies would issue shares, to an Indian Depository, which would in turn issue depository receipts (IDR) to investors in India.
Standard Chartered PLC became the first global company to file for issue of IDRs in India.
Question 2
1 / -0

Purchase or sale of government securities by the Central bank from the general public in the bond market, in a bid to increase or decrease the money supply in the economy is referred to as ________.

A
open market operation

B
rationing of credit

C
variable reserve ratio

D
dear money policy

Solution

Open market operations refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. It is a key component of the Monetary Policy system of the Central Bank. In India, the central bank is called as the Reserve Bank of India.
Question 3
1 / -0

With reference to Indian capital market, consider the following statements:
$$1.$$ CRISIL was set-up in the Eighth Five Year Plan.
$$2.$$ CRISIL rates the debt instruments of the public sectors.
Which of the statements given above is/are correct?

A
Only $$1$$

B
Only $$2$$

C
Both $$1$$ and $$2$$

D
Neither $$1$$ nor $$2$$

Solution

CRISIL is India’s first credit rating agency, incorporated in 1987 and was promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions. It rates debt instruments of public sector institutions. The 8th Five year plan was between 1992-1997.
Question 4
1 / -0

With reference to Indian commercial banks consider the following statements:
1. The base rate system for the interest of commercial banks was introduced in 2010.
2. The base rate system has enabled a more informed assessment of the transmission of monetary policy impulses to banks' leading rates.
Which of the statements given above is/are correct?

A
Only 1

B
Only 2

C
Both 1 and 2

D
Neither 1 nor 2

Solution

The base rate system was introduced in 2010 and it replaced the earlier Prime Lending Rate (PLR) system to which all lending rates were pegged. Base rate became the new floor rate below which no bank could lend. The base rate system was brought to increase transparency in the lending market and enable a more informed assessment of transmission of monetary policy changes to banks' lending rates.
Question 5
1 / -0

Consider the following statements:
$$1$$. National Housing Bank (NHB) was established by the RBI in $$1980$$.
$$2.$$ NHB is directly financing the schemes of housing for women in India.
Which of the statements given above is/are correct?

A
Only $$1$$

B
Only $$2$$

C
Both $$1$$ and $$2$$

D
Neither $$1$$ nor $$2$$

Solution

National Housing Bank, a wholly-owned subsidiary of Reserve Bank of India, was set up on 9 July 1988 under the National Housing Bank Act, 1987. NHB is an apex financial institution for housing. NHB has refinance schemes for women and not direct finance schemes.
Question 6
1 / -0

Tarapore committee submitted its report on 'Full Convertibility on Rupee' in _________________.

A
Current account

B
Capital account

C
Both $$'a'$$ and $$'b'$$

D
Special Drawing Rights (SDR)

Solution
Question 7
1 / -0

Which one of the following companies is eligible for the financial assistance and loans from the Industrial Finance Corporation of India (IFCI)?

A
Limited Public Companies

B
Public Co-Operatives

C
Private Limited Companies

D
All of the above

Solution

IFCI, previously Industrial Finance Corporation of India, is an Indian government owned development bank to cater to the long-term finance needs the industrial sector. It was the first development finance institution established by the Indian government after independence. Until the establishment of ICICI in 1991, IFCI remained solely responsible for implementation of the government's industrial policy initiatives.
Any public limited company or co-operative society incorporated and registered in India which is engaged, or proposes to engage itself, in the manufacture, preservation or processing of goods, or in the shipping, mining or hotel industry or in the generation or of distribution of electricity or any other form of power, is eligible for financial assistance. later by an amendment even Private limited companies have become eligible for loans from IFCI.
Question 8
1 / -0

Which one of the following missions of the World Bodies/ Organisation has set-up the Industrial Credit and Investment Corporation of India (ICICI) bank for the developing small and medium industries in India in the Private Sector?

A
World Bank

B
International Monetary Fund

C
Asian Development Bank

D
World Trade Organisation

Solution

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.
Question 9
1 / -0

Fiscal Responsibility and Budget Management Act was enacted in India in the year ____________.

A
2002

B
2005

C
2003

D
2007
Question 10
1 / -0

Which of the following taxes is/are levied by the Union and collected and appropriated by the States?

A
Stamp duties

B
Passenger and good tax

C
Estate duty

D
Taxes on newspaper

Solution

As mention in article $$268$$ of Indian Constitution. Stamp Duties are mentioned in the Union List shall be levied by the Government of India but collected and appropriated by the States.

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Re-Attempt Weekly Quiz Competition

Indian Economy Test 32

Result

Indian Economy Test 32

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Rank

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SHARING IS CARING

Question 1

Only $$1$$

Only $$2$$

Both $$1$$ and $$2$$

Neither $$1$$ nor $$2$$

Solution

Question 2

open market operation

rationing of credit

variable reserve ratio

dear money policy

Solution

Question 3

Only $$1$$

Only $$2$$

Both $$1$$ and $$2$$

Neither $$1$$ nor $$2$$

Solution

Question 4

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 5

Only $$1$$

Only $$2$$

Both $$1$$ and $$2$$

Neither $$1$$ nor $$2$$

Solution

Question 6

Current account

Capital account

Both $$'a'$$ and $$'b'$$

Special Drawing Rights (SDR)

Solution

Question 7

Limited Public Companies

Public Co-Operatives

Private Limited Companies

All of the above

Solution

Question 8

World Bank

International Monetary Fund

Asian Development Bank

World Trade Organisation

Solution

Question 9

2002

2005

2003

2007

Question 10

Stamp duties

Passenger and good tax

Estate duty

Taxes on newspaper

Solution

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