Economics Test - 30

Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet the growing demands of the industry as well as to increase the share of manufacturing in overall GDP. As India's GDP has been dominated by services rather than agriculture or manufacturing, there are structural modifications always required so that manufacturing activity be increased substantially to meet the global market requirements. This requires legal amendments, with the new laws aimed to facilitate better manufacturing and exports.

Actually, India faces two challenges, rather opportunities that the bullishness on the Indian economy is to be export-oriented as well as to feed its ever-growing domestic consumption. Also, no economy can only be consumption oriented as its people should also save and invest actively. This brings to an important direction of banking system which plays a critically important role in achieving the above two objectives. The public sector banks require to build on to the capabilities and expertise on the due diligence methods for the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic percolation, the public sector banks must be recognized in India's development and that there is "no country in the world where banks have not had a problem."

Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet the growing demands of the industry as well as to increase the share of manufacturing in overall GDP. As India's GDP has been dominated by services rather than agriculture or manufacturing, there are structural modifications always required so that manufacturing activity be increased substantially to meet the global market requirements. This requires legal amendments, with the new laws aimed to facilitate better manufacturing and exports.

Actually, India faces two challenges, rather opportunities that the bullishness on the Indian economy is to be export-oriented as well as to feed its ever-growing domestic consumption. Also, no economy can only be consumption oriented as its people should also save and invest actively. This brings to an important direction of banking system which plays a critically important role in achieving the above two objectives. The public sector banks require to build on to the capabilities and expertise on the due diligence methods for the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic percolation, the public sector banks must be recognized in India's development and that there is "no country in the world where banks have not had a problem."

Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet the growing demands of the industry as well as to increase the share of manufacturing in overall GDP. As India's GDP has been dominated by services rather than agriculture or manufacturing, there are structural modifications always required so that manufacturing activity be increased substantially to meet the global market requirements. This requires legal amendments, with the new laws aimed to facilitate better manufacturing and exports.

Actually, India faces two challenges, rather opportunities that the bullishness on the Indian economy is to be export-oriented as well as to feed its ever-growing domestic consumption. Also, no economy can only be consumption oriented as its people should also save and invest actively. This brings to an important direction of banking system which plays a critically important role in achieving the above two objectives. The public sector banks require to build on to the capabilities and expertise on the due diligence methods for the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic percolation, the public sector banks must be recognized in India's development and that there is "no country in the world where banks have not had a problem.

" Which of the following set defines Sustainable Consumption and Production (SCP)?

A. The use of services and related products which respond to basic needs and bring a better quality of life.

B. Minimizing the use of natural resources and toxic materials as well as the emission of waste as pollutants.

C. Pertinent use of service or product so as not to jeopardise the needs of future generations.

D. Planned cities with a lower cost of production minimizing the retail inflation.

Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet the growing demands of the industry as well as to increase the share of manufacturing in overall GDP. As India's GDP has been dominated by services rather than agriculture or manufacturing, there are structural modifications always required so that manufacturing activity be increased substantially to meet the global market requirements. This requires legal amendments, with the new laws aimed to facilitate better manufacturing and exports.

Actually, India faces two challenges, rather opportunities that the bullishness on the Indian economy is to be export-oriented as well as to feed its ever-growing domestic consumption. Also, no economy can only be consumption oriented as its people should also save and invest actively. This brings to an important direction of banking system which plays a critically important role in achieving the above two objectives. The public sector banks require to build on to the capabilities and expertise on the due diligence methods for the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic percolation, the public sector banks must be recognized in India's development and that there is "no country in the world where banks have not had a problem."

Read the given paragraph carefully and answer the questions that follow

For a developing economic nation, its industrial policy requires regular updation to meet the growing demands of the industry as well as to increase the share of manufacturing in overall GDP. As India's GDP has been dominated by services rather than agriculture or manufacturing, there are structural modifications always required so that manufacturing activity be increased substantially to meet the global market requirements. This requires legal amendments, with the new laws aimed to facilitate better manufacturing and exports.

Actually, India faces two challenges, rather opportunities that the bullishness on the Indian economy is to be export-oriented as well as to feed its ever-growing domestic consumption. Also, no economy can only be consumption oriented as its people should also save and invest actively. This brings to an important direction of banking system which plays a critically important role in achieving the above two objectives. The public sector banks require to build on to the capabilities and expertise on the due diligence methods for the credit appraisal for the loan requirements. Worth mentioning here is the data that the non-performing assets valuing Rs. 7.7 lakh crore (as on December 2017) as per the latest figures of the Finance Ministry. Nevertheless, given their large structure and geographic percolation, the public sector banks must be recognized in India's development and that there is "no country in the world where banks have not had a problem."

Read the following passage and answer the question based on it

The study titled, "Monetary Policy Transparency and Anchoring of Inflation Expectation in India" constructs an index of monetary policy transparency for India and examines the role of transparency in anchoring inflation expectations. Empirical results show that the degree of policy transparency has indeed increased substantially since the adoption of Flexible Inflation Targeting (FIT) in 2016. Further, empirical evidence suggests that inflation expectations of professional forecasters and households were anchored, in weak‐form, in the post‐FIT period, though households' expectations did not necessarily lie within the inflation tolerance band. During the transition period (between the self‐imposed disinflationary glide‐path since 2014 and adoption of the FIT) both realized inflation and expectations followed a declining path, which resulted in a positive association between them. During the pre‐transition period, when explicit inflation target was absent. expectations were also reasonably anchored, albeit, at a higher level.

Read the following passage and answer the question based on it

The study titled, "Monetary Policy Transparency and Anchoring of Inflation Expectation in India" constructs an index of monetary policy transparency for India and examines the role of transparency in anchoring inflation expectations. Empirical results show that the degree of policy transparency has indeed increased substantially since the adoption of Flexible Inflation Targeting (FIT) in 2016. Further, empirical evidence suggests that inflation expectations of professional forecasters and households were anchored, in weak‐form, in the post‐FIT period, though households' expectations did not necessarily lie within the inflation tolerance band. During the transition period (between the self‐imposed disinflationary glide‐path since 2014 and adoption of the FIT) both realized inflation and expectations followed a declining path, which resulted in a positive association between them. During the pre‐transition period, when explicit inflation target was absent. expectations were also reasonably anchored, albeit, at a higher level.

Read the following passage and answer the question based on it

The study titled, "Monetary Policy Transparency and Anchoring of Inflation Expectation in India" constructs an index of monetary policy transparency for India and examines the role of transparency in anchoring inflation expectations. Empirical results show that the degree of policy transparency has indeed increased substantially since the adoption of Flexible Inflation Targeting (FIT) in 2016. Further, empirical evidence suggests that inflation expectations of professional forecasters and households were anchored, in weak‐form, in the post‐FIT period, though households' expectations did not necessarily lie within the inflation tolerance band. During the transition period (between the self‐imposed disinflationary glide‐path since 2014 and adoption of the FIT) both realized inflation and expectations followed a declining path, which resulted in a positive association between them. During the pre‐transition period, when explicit inflation target was absent. expectations were also reasonably anchored, albeit, at a higher level.

Read the following passage and answer the question based on it

The study titled, "Monetary Policy Transparency and Anchoring of Inflation Expectation in India" constructs an index of monetary policy transparency for India and examines the role of transparency in anchoring inflation expectations. Empirical results show that the degree of policy transparency has indeed increased substantially since the adoption of Flexible Inflation Targeting (FIT) in 2016. Further, empirical evidence suggests that inflation expectations of professional forecasters and households were anchored, in weak‐form, in the post‐FIT period, though households' expectations did not necessarily lie within the inflation tolerance band. During the transition period (between the self‐imposed disinflationary glide‐path since 2014 and adoption of the FIT) both realized inflation and expectations followed a declining path, which resulted in a positive association between them. During the pre‐transition period, when explicit inflation target was absent. expectations were also reasonably anchored, albeit, at a higher level.

Read the following passage and answer the question based on it

The study titled, "Monetary Policy Transparency and Anchoring of Inflation Expectation in India" constructs an index of monetary policy transparency for India and examines the role of transparency in anchoring inflation expectations. Empirical results show that the degree of policy transparency has indeed increased substantially since the adoption of Flexible Inflation Targeting (FIT) in 2016. Further, empirical evidence suggests that inflation expectations of professional forecasters and households were anchored, in weak‐form, in the post‐FIT period, though households' expectations did not necessarily lie within the inflation tolerance band. During the transition period (between the self‐imposed disinflationary glide‐path since 2014 and adoption of the FIT) both realized inflation and expectations followed a declining path, which resulted in a positive association between them. During the pre‐transition period, when explicit inflation target was absent. expectations were also reasonably anchored, albeit, at a higher level.