[1] Economic development depends on :
A.
Natural resources
B.
Capital formation
C.
Size of the market
D.
All of the above
Ans:
All of the above
Explanation :
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.
[2] Human Development Index was developed by :
A.
Amartya Sen
B.
Mahbub-ul-Haq
C.
Friedman
D.
Montek Singh
Ans:
Mahbub-ul-Haq
Explanation :
The origins of the Human Development Index (HDI) are found in the annual Human Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990. To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including: Paul Streeten, Frances Stewart.
[3] While determining income the expenditure on which of the following items is not considered as investment?
A.
Construction of factory
B.
Computer
C.
Increase in the stock of unsold articles
D.
Stock and share in joint stock company
Ans:
Increase in the stock of unsold articles
Explanation :
The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The expenditure approach sums all that is purchased: in a sense, it is equivalent to the income approach because purchases are only possible if income is present. GDP can be calculated as the sum of all expenditures: personal consumption expenditure (C), gross private domestic investment (Ig), government purchases (G), and net exports (Xn). Increase in the stock of unsold articles do not come under any of these heads.
[4] Rate of interest is determined by -
A.
The rate of return on the capital invested
B.
Central Government
C.
Liquidity preference
D.
Commercial Banks
Ans:
Liquidity preference
Explanation :
According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called as the demand and supply of theory of rate of interest. The supply of money together with the liquidity-preference curve in theory interacts to determine the interest rate at which the quantity of money demanded equals the quantity of money supplied. According to Keynes, interest is the price paid for surrendering their liquid assets. Greater the liquidity preference higher shall be the rate of interest. The liquidity preference constitutes the demand for money.
[5] Speculative demand for cash is determined by -
A.
The rate of interest
B.
the level of income
C.
the general price level
D.
the market conditions
Ans:
The rate of interest
Explanation :
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The assets demand for money is inversely related to the market interest rate. This is because at lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
[6] Gross National Product is the money measure of -
A.
all tangible goods produced in a country
B.
final goods and services produced in the economy
C.
services generated annually in the economy
D.
all tangible goods available in the economy
Ans:
final goods and services produced in the economy
Explanation :
Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country. It is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
[7] The difference between GNP and NNP equals -
A.
corporate profits
B.
personal taxes
C.
transfer payments
D.
depreciation
Ans:
depreciation
Explanation :
Gross National Product (GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of net output in an economy during a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
[8] Investment multiplier shows the effect of investment on -
A.
Employment
B.
Savings
C.
Income
D.
Consumption
Ans:
Income
Explanation :
Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income
[9] Barter transactions means -
A.
Goods are exchanged with gold.
B.
Coins are exchanged for goods.
C.
Money acts as a medium of exchange.
D.
Goods are exchanged with goods.
Ans:
Goods are exchanged with goods.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.
[2] Human Development Index was developed by :
A.
Amartya Sen
B.
Mahbub-ul-Haq
C.
Friedman
D.
Montek Singh
Ans:
Mahbub-ul-Haq
Explanation :
The origins of the Human Development Index (HDI) are found in the annual Human Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990. To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including: Paul Streeten, Frances Stewart.
[3] While determining income the expenditure on which of the following items is not considered as investment?
A.
Construction of factory
B.
Computer
C.
Increase in the stock of unsold articles
D.
Stock and share in joint stock company
Ans:
Increase in the stock of unsold articles
Explanation :
The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The expenditure approach sums all that is purchased: in a sense, it is equivalent to the income approach because purchases are only possible if income is present. GDP can be calculated as the sum of all expenditures: personal consumption expenditure (C), gross private domestic investment (Ig), government purchases (G), and net exports (Xn). Increase in the stock of unsold articles do not come under any of these heads.
[4] Rate of interest is determined by -
A.
The rate of return on the capital invested
B.
Central Government
C.
Liquidity preference
D.
Commercial Banks
Ans:
Liquidity preference
Explanation :
According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called as the demand and supply of theory of rate of interest. The supply of money together with the liquidity-preference curve in theory interacts to determine the interest rate at which the quantity of money demanded equals the quantity of money supplied. According to Keynes, interest is the price paid for surrendering their liquid assets. Greater the liquidity preference higher shall be the rate of interest. The liquidity preference constitutes the demand for money.
[5] Speculative demand for cash is determined by -
A.
The rate of interest
B.
the level of income
C.
the general price level
D.
the market conditions
Ans:
The rate of interest
Explanation :
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The assets demand for money is inversely related to the market interest rate. This is because at lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
[6] Gross National Product is the money measure of -
A.
all tangible goods produced in a country
B.
final goods and services produced in the economy
C.
services generated annually in the economy
D.
all tangible goods available in the economy
Ans:
final goods and services produced in the economy
Explanation :
Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country. It is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
[7] The difference between GNP and NNP equals -
A.
corporate profits
B.
personal taxes
C.
transfer payments
D.
depreciation
Ans:
depreciation
Explanation :
Gross National Product (GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of net output in an economy during a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
[8] Investment multiplier shows the effect of investment on -
A.
Employment
B.
Savings
C.
Income
D.
Consumption
Ans:
Income
Explanation :
Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income
[9] Barter transactions means -
A.
Goods are exchanged with gold.
B.
Coins are exchanged for goods.
C.
Money acts as a medium of exchange.
D.
Goods are exchanged with goods.
Ans:
Goods are exchanged with goods.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
The gross national product is the sum total of all final goods and services produced by the people of one country in one year. The GNP is a flow concept. It can be calculated with either the expenditure approach or the income approach. The expenditure approach sums all that is purchased: in a sense, it is equivalent to the income approach because purchases are only possible if income is present. GDP can be calculated as the sum of all expenditures: personal consumption expenditure (C), gross private domestic investment (Ig), government purchases (G), and net exports (Xn). Increase in the stock of unsold articles do not come under any of these heads.
[4] Rate of interest is determined by -
A.
The rate of return on the capital invested
B.
Central Government
C.
Liquidity preference
D.
Commercial Banks
Ans:
Liquidity preference
Explanation :
According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called as the demand and supply of theory of rate of interest. The supply of money together with the liquidity-preference curve in theory interacts to determine the interest rate at which the quantity of money demanded equals the quantity of money supplied. According to Keynes, interest is the price paid for surrendering their liquid assets. Greater the liquidity preference higher shall be the rate of interest. The liquidity preference constitutes the demand for money.
[5] Speculative demand for cash is determined by -
A.
The rate of interest
B.
the level of income
C.
the general price level
D.
the market conditions
Ans:
The rate of interest
Explanation :
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The assets demand for money is inversely related to the market interest rate. This is because at lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
[6] Gross National Product is the money measure of -
A.
all tangible goods produced in a country
B.
final goods and services produced in the economy
C.
services generated annually in the economy
D.
all tangible goods available in the economy
Ans:
final goods and services produced in the economy
Explanation :
Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country. It is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
[7] The difference between GNP and NNP equals -
A.
corporate profits
B.
personal taxes
C.
transfer payments
D.
depreciation
Ans:
depreciation
Explanation :
Gross National Product (GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of net output in an economy during a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
[8] Investment multiplier shows the effect of investment on -
A.
Employment
B.
Savings
C.
Income
D.
Consumption
Ans:
Income
Explanation :
Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income
[9] Barter transactions means -
A.
Goods are exchanged with gold.
B.
Coins are exchanged for goods.
C.
Money acts as a medium of exchange.
D.
Goods are exchanged with goods.
Ans:
Goods are exchanged with goods.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The assets demand for money is inversely related to the market interest rate. This is because at lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
[6] Gross National Product is the money measure of -
A.
all tangible goods produced in a country
B.
final goods and services produced in the economy
C.
services generated annually in the economy
D.
all tangible goods available in the economy
Ans:
final goods and services produced in the economy
Explanation :
Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country. It is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
[7] The difference between GNP and NNP equals -
A.
corporate profits
B.
personal taxes
C.
transfer payments
D.
depreciation
Ans:
depreciation
Explanation :
Gross National Product (GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of net output in an economy during a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
[8] Investment multiplier shows the effect of investment on -
A.
Employment
B.
Savings
C.
Income
D.
Consumption
Ans:
Income
Explanation :
Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income
[9] Barter transactions means -
A.
Goods are exchanged with gold.
B.
Coins are exchanged for goods.
C.
Money acts as a medium of exchange.
D.
Goods are exchanged with goods.
Ans:
Goods are exchanged with goods.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Gross National Product (GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of net output in an economy during a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
[8] Investment multiplier shows the effect of investment on -
A.
Employment
B.
Savings
C.
Income
D.
Consumption
Ans:
Income
Explanation :
Investment multiplier is simply the multiplier effect of an injection of investment into an economy. The multiplier effect refers to the idea that an initial spending rise can lead to even greater increase in national income
[9] Barter transactions means -
A.
Goods are exchanged with gold.
B.
Coins are exchanged for goods.
C.
Money acts as a medium of exchange.
D.
Goods are exchanged with goods.
Ans:
Goods are exchanged with goods.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,
[10] The supply-side measure to control inflation is -
A.
Reducing public expenditure
B.
Price control through Public Distribution System
C.
Higher taxation to mop up liquidity
D.
Credit control
Ans:
Price control through Public Distribution System
Explanation :
The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure, mopping up excess liquidity either through taxes or savings schemes, etc. On the supply side, the mechanism of Public Distribution System (PDS) ensures availability of essential commodities for the vulnerable sections of society, This helps to maintain price levels. Coupled with this is the open market sale of rice and wheat resorted to by FCI from its buffer stock in times of price rise.
[11] HDI is an aggregate measure of progress in which of the three dimensions?
A.
Health, Education, Income
B.
Food Security, Employment, Income
C.
Agriculture, Industry, Services
D.
Height, Weight, Colour
Ans:
Health, Education, Income
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
The Human Development Index (HDI) is an aggregate measure of progress in three dimensions—health, education and income which are used to rank countries into four tiers of human development. The FIDI was developed by the Pakistani economist Mahboob ul Haq working alongside Indian economist Amartya Sen.
[12] What is an octroi?
A.
Tax
B.
Tax collection centre
C.
Tax processing centre
D.
Tax information centre
Ans:
Tax
Explanation :
Octroi is a local tax which is collected by the state government on those goods that have been bought into the city/state for the purpose of personal use and sale. The charges on the items are generally levied after on the weight, value and total number of goods. It is levied on certain articles, such as food- stuffs, on their entry into a city.
[13] Demand of commodity mainly depends upon -
A.
Purchasing will
B.
Purchasing power
C.
Tax policy
D.
Advertisement
Ans:
Purchasing power
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
[14] NIFTY is associated with -
A.
Cloth Market Price Index
B.
Consumer Price Index
C.
BSE Index
D.
NSE Index
Ans:
NSE Index
Explanation :
The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. Nifty Fifty was an informal term used to refer to 50 popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks. NIFTY means National Index for Fifty.
[15] The data collection for national income estimation is conducted in India by—
A.
The Finance Ministry of the Government of India
B.
The RBI
C.
The NSSO (National Sample Survey Organization
D.
None of these
Ans:
The NSSO (National Sample Survey Organization
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socio- economic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. It is a focal agency of the Government of India for collection of statistical data in the areas which are vital for developmental planning.
[16] What is AGMARK?
A.
It is a marketing seal issued on the graded agricultural commodity
B.
It stands for agricultural marketing
C.
It represents agricultural management and regulation
D.
None of these
Ans:
It stands for agricultural marketing
Explanation :
AGIVIARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. The present AGMARK standards cover quality guidelines for 205 different commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semi-processed products.
[17] The Imperial Bank of India, after its nationalization came to be known as :
A.
Reserve Bank of India
B.
State Bank of India
C.
United Bank of India
D.
Indian Overseas bank
Ans:
State Bank of India
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
The State Bank of India, the largest banking and financial services company in India by revenue, assets and market capitalization: traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India
[18] Floating Exchange Rate is also referred to as -
A.
Flexible Exchange Rate
B.
Fixed Exchange Rate
C.
Real Exchange Rate
D.
Controlled Exchange Rate
Ans:
Flexible Exchange Rate
Explanation :
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. In this sense, it is quite flexible and not something fixed or constant. Such rates automatically adjust, enabling a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis.
[19] Countries that depend mainly on the export of primary products for their income, are prone to -
A.
inflation
B.
economic instability
C.
increasing unemployment
D.
stable economic growth
Ans:
increasing unemployment
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of trade. Disadvantageous terms of technology transfer, protectionism, and decline in financial flows compound the already existing poverty and lack of work. Being labour-intensive, such sectors are prone to various types of unemployment. Developing countries that rely on the export of primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
[20] Bank deposits that can be withdrawn without notice are called -
A.
account payee deposits
B.
fixed deposits
C.
variable deposits
D.
demand deposits
Ans:
demand deposits
Explanation :
Demand deposits are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).
[21] What does ECS in banking transactions stand for?
A.
Excess Credit Supervisor
B.
Extra Cash Status
C.
Exchange Clearing Standard
D.
Electronic Clearing Service
Ans:
Electronic Clearing Service
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Electronic Clearing Service is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or regular investments of persons.
[22] Which one is not a function of money?
A.
Transfer of value
B.
Store of value
C.
Price stabilization
D.
Value measurement
Ans:
Price stabilization
Explanation :
Generally, economists have defined four types of functions of money which are as follows: (i) Medium of exchange (transfer of value) (ii) Measurement of value, (iii) Standard of deferred payments, and (iv) Store of value. Price stabilization is a function of monetary policy.
[23] Inflation is caused by -
A.
increase in money supply and decrease in production
B.
increase in money supply
C.
increase in production
D.
decrease in production
Ans:
increase in money supply and decrease in production
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of Demand-Pull Inflation, if demand grows faster than supply, prices will increase. There is too much money chasing too few goods. The increase in money supply is not matched by the equivalent production of goods.
[24] State which of the following is correct? The Consumer Price Index reflects -
A.
the standard of living
B.
the extent of inflation in the prices of consumer goods
C.
the increasing per capita income
D.
the growth of the economy
Ans:
the extent of inflation in the prices of consumer goods
Explanation :
A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
[25] What are the main components of basic social infrastructure of an economy?
A.
Education, Industry and Agriculture
B.
Education, Health and Civil amenities
C.
Transport, Health and Banks
D.
Industry, Trade and Transport
Ans:
Education, Health and Civil amenities
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.
Explanation :
Social infrastructure refers to the facilities and mechanisms that ensure education, health care, community development, income distribution, employment and social welfare. It Includes health care system, including hospitals, the financing of health care, including health insurance, the systems for regulation and testing of medications and medical procedures; the educational and research system, including elementary and secondary schools, universities, specialized colleges, research institutions; Social welfare systems; Sports and recreational infrastructure, such as parks, sports facilities, the system of sports leagues and associations: Cultural infrastructure; and business travel and tourism infrastructure, including both man-made and natural attractions, etc.