Indian Economy Test 36

Result

Indian Economy Test 36

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

With reference to Indian economy, consider the following statements:
(1) Three types of Consumer Price Index are used in the determination of Consumer Price Index.
(2) Consumer Price Index of Industrial Worker and Consumer Price Index of Rural Labour has given same weight in the determination of inflation.
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

Three types of CPI indices are computed by the Central Statistics Officer (CSO) - CPI for industrial workers, CPI for agricultural or rural labourers and CPI for rural, urban and combined. The third type of inflation provides a better estimate of the inflation and hence is used for the CPI numbers.
Question 2
1 / -0

Which one of the following has been the main measure of the rate of inflation in India?

A
Consumer Price Index

B
Consumer Price Index-Industrial worker

C
Consumer Price Index-Agricultural labour

D
Wholesale Price Index

Solution

WPI or Wholesale Price Index is the measure of inflation in India unlike some other countries which use Consumer Price Index (CPI) to measure inflation. WPI basket in India comprises three groups: Primary commodities (20.1%), fuel and power (14.9%) and manufactured products (65%).
Question 3
1 / -0

Consider the following statements:
(1) Disinflation is a decrease in the rate of inflation.
(2) In the disinflation, the inflation is falls below the zero percent level.
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

Disinflation is the fall in the rate of inflation, however, it does not fall below 0%. It just drops to levels lower than the level of inflation in the previous year and it is termed as disinflation.
Question 4
1 / -0

Consider the following services/goods:
(1) Police
(2) National defence
(3) Tax subsidies
Which of the services/goods given above is/are included in the 'public goods' of an economy?

A
1 and 2

B
1 and 3

C
2 and 3

D
Only 2

Solution

A good or service which can be consumed by anyone without reducing its availability to others and no one is excluded of its consumption or services is called a public good. National defence and police are such services. Tax subsidies, on the other hand, are available to select people and its use reduces its availability to others.
Question 5
1 / -0

Consider the following sectors
1. Animal husbandry
2. Dairy
3. Handlooms
4. Wasteland development
5. Social forestry
6. Sericulture
Which of the sectors given above are included in the skill development under Support to Training and Employment Programme (STEP) for Women Scheme?

A
1,2, 4, 5 and 6

B
1,3, 5 and 6

C
1, 4,5 and 6

D
All of the above
Question 6
1 / -0

Consider the following statements:
(1) Tobin tax is a tax on all spot conversions of one currency into another.
(2) Tobin tax is a currency transaction tax to find a way to manage exchange rate volatility.
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

Tobin tax is applied to all spot exchange conversions of one currency into another. It is applied to all such short term transactions to discourage such trading which induces volatility in the currency.
Question 7
1 / -0

Which one of the following unemployment is the form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment?

A
Structural unemployment

B
Marxian unemployment

C
Disguised unemployment

D
Classical unemployment
Question 8
1 / -0

Which one of the following is commonly occurred in the biflation in an economy?

A
Inflation

B
Deflation

C
Disinflation

D
Both 'a' and 'b'

Solution

Condition of an economy wherein both inflation and deflation co-exist is called biflation. In such a scenario, usually commodity assets experience surge in prices while leveraged assets experience deflation.
Question 9
1 / -0

Which of the following terms indicates mechanism used by commercial banks for providing credit to Government?

A
Cash Credit Ratio

B
Debt Service Obligation

C
Liquidity Adjustment Facility

D
Statutory Liquidity Ratio

Solution

Statutory Liquidity Ratio (SLR) is the mechanism used to by the RBI to regulate the liquidity of the commercial banks. Under SLR, commercial banks invest a certain percentage of their money in Government securities and other assets like gold so as to comply with RBI guidelines.
Question 10
1 / -0

Which one of the following inflation is the type of inflation that results from past events and persists in the present?

A
Hyperinflation

B
Sogflation

C
Built-in inflation

D
Biflation

Solution

Some events in the past, such as a persistent demand pull or a supply shock (cost-push inflation) push the prices of goods and services upwards, and this persists for a long time. Such a condition results in built-in inflation.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Indian Economy Test 36

Result

Indian Economy Test 36

Score

-

Rank

-

SHARING IS CARING

Question 1

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 2

Consumer Price Index

Consumer Price Index-Industrial worker

Consumer Price Index-Agricultural labour

Wholesale Price Index

Solution

Question 3

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 4

1 and 2

1 and 3

2 and 3

Only 2

Solution

Question 5

1,2, 4, 5 and 6

1,3, 5 and 6

1, 4,5 and 6

All of the above

Question 6

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Solution

Question 7

Structural unemployment

Marxian unemployment

Disguised unemployment

Classical unemployment

Question 8

Inflation

Deflation

Disinflation

Both 'a' and 'b'

Solution

Question 9

Cash Credit Ratio

Debt Service Obligation

Liquidity Adjustment Facility

Statutory Liquidity Ratio

Solution

Question 10

Hyperinflation

Sogflation

Built-in inflation

Biflation

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.