Indian Economy Test 78

Result

Indian Economy Test 78

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

If the RBI adopts an expansionist open market operations policy, this means that it will _____________________.

A
buy securities from non-government holders

B
sell G-Secs in the open market

C
offer commercial banks more credit

D
openly announce to the market that it intends to expand credit.

Solution

Such a policy means an increased flow of money in the economy-by purchasing the securities greater money flow is guaranteed.
Question 2
1 / -0

Select the correct statement regarding the 'threshold rate of inflation' in India _________________.

A
It may be seen as the 'spillover effects' of headline inflation.

B
Inflation going beyond the upper limit of the comfort zone

C
Other sector gets the effects of higher inflation.

D
(a) and (b) both

Solution

T
This is the situation when inflation starts hitting the other sectors of economy rather than being limited to the sector of its origin. It was this situation, which made the RBI going for successive attempts of tightening the credit and monetary policy throughout the 2011−13.
Question 3
1 / -0

Select the correct one/ones about the Census - 2011 from the given list.
1. This Census had a 'mascot' for the first time.
2. The 'mascot' was devised to make the process more people- friendly with the objective of helping people to relate with the Census process and to elucidate the key role of the enumerator.

A
Only 1

B
Only 2

C
1 and 2

D
Neither 1 nor 2
Question 4
1 / -0

Select the incorrect type of the mutual fund scheme available in India:

A
Open-ended schemes

B
Closed- ended schemes

C
Exchange-traded funds

D
None of the above

Solution

There are three types of schemes in which an investor can invest and there is no fourth category in India.
Question 5
1 / -0

Consider the following liquid assets:
1. Demand deposits with the banks
2. Time deposits with the banks
3. Saving deposits with the banks
4. Currency
The correct sequence of these assets in the decreasing order of liquidity is _____________.

A
1 4 3 2

B
4 3 2 1

C
2 3 1 4

D
4 1 3 2
Question 6
1 / -0

Select the incorrect statement about a Mutual Fund in India.

A
They are compulsorily registered with the SEBI, which also acts as the first wall of defence for all investors in these funds.

B
Each mutual fund is run by a group of qualified people who form a company called an Asset Management Company (AMC).

C
The operations of the AMC are under the guidance of another group of people, called trustees.

D
Through the AMC and the Trustees own no responsibility for the investors money in a mutual fund.

Solution

Both, the people in the AMC as well as the trustees, have a fiduciary responsibility (fiduciary means 'involving trust' when someone manages propetics owned by others) because these are the people who are entrusted with the task of managing the hard-earned money of people who do not understand much about managing money.
Question 7
1 / -0

The supply-side economics, which always gets attention in India, lays greater emphasis on the point of view of ________________.

A
Producer

B
Global economy

C
Consumer

D
Middle -man

Solution

It takes care of the supply-side factors, that is why it is related to the manufacturers/ suppliers. The demand-side economics take care of the cunsumers' behaviour and other related things.
Question 8
1 / -0

Which among the following may not be considered a measure of cutting down fiscal deficit of the Indian economy?

A
Educating and encouraging states to go for reforms in the power sector, irrigation and healthcare

B
Imposing 'Tobin tax' on the outflows of the FDI and the PIS funds

C
Handing over the responsibilty of higher education to the private sector

D
Rationalising subsidies on fertilizers, LPG, medicines and foodgrains

Solution

Tobin tax was proposed by the Nobel laureate in Economics James Tobin in 1972 but it was supposed to be imposed on every transaction in the foreign exchange market and not specifically on the outflow of the foreign exchange.
Question 9
1 / -0

Select the correct statements regarding the operations of the various Money Market components in India using the code given below:
1. Commercial Paper route of borrowing working capital is profitable once inflation has peaked.
2. Cost of operation for the banks in the Call Money Market falls in wake of rising inflation.
3. Earnings from Money Market Mutual Funds see erosion with increased inflation.
4. Interest payments liabilities of the Gol on account of the Cash Management Bill increases in case of decreased inflation.

A
1,2 and 3

B
2,3 and 4

C
1,2 and 4

D
1,2,3 and 4

Solution

This question is based on the idea of relationship between 'inflation' and 'real interest rate', which borrowers pay on their borrowings. Components of Money Market are tools of borrowing 'short-term' (i.e., working capital) money from the financial marketthus inflation affects them in the similar way.
Question 10
1 / -0

Select the incorrect set of the 'new categories' which have been incorporated by the Census-2011 for the first time in India, using the code given below.
1. Gender, Date of Birth, Marital Status, Literacy Status
2. Migration, Disability, Name of the Institutional Household

A
Only 1

B
Only 2

C
1 and 2

D
Neither 1 nor 2

Solution

Both the statements incorporate the correct new categories incorporated for the first time while collecting Census data in India. Other categories are - Attendance in Educational Institutions, Work Status, SC and ST.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Indian Economy Test 78

Result

Indian Economy Test 78

Score

-

Rank

-

SHARING IS CARING

Question 1

buy securities from non-government holders

sell G-Secs in the open market

offer commercial banks more credit

openly announce to the market that it intends to expand credit.

Solution

Question 2

It may be seen as the 'spillover effects' of headline inflation.

Inflation going beyond the upper limit of the comfort zone

Other sector gets the effects of higher inflation.

(a) and (b) both

Solution

Question 3

Only 1

Only 2

1 and 2

Neither 1 nor 2

Question 4

Open-ended schemes

Closed- ended schemes

Exchange-traded funds

None of the above

Solution

Question 5

1 4 3 2

4 3 2 1

2 3 1 4

4 1 3 2

Question 6

They are compulsorily registered with the SEBI, which also acts as the first wall of defence for all investors in these funds.

Each mutual fund is run by a group of qualified people who form a company called an Asset Management Company (AMC).

The operations of the AMC are under the guidance of another group of people, called trustees.

Through the AMC and the Trustees own no responsibility for the investors money in a mutual fund.

Solution

Question 7

Producer

Global economy

Consumer

Middle -man

Solution

Question 8

Educating and encouraging states to go for reforms in the power sector, irrigation and healthcare

Imposing 'Tobin tax' on the outflows of the FDI and the PIS funds

Handing over the responsibilty of higher education to the private sector

Rationalising subsidies on fertilizers, LPG, medicines and foodgrains

Solution

Question 9

1,2 and 3

2,3 and 4

1,2 and 4

1,2,3 and 4

Solution

Question 10

Only 1

Only 2

1 and 2

Neither 1 nor 2

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.