[1] Which of the following most closely approximates our definition of oligopoly?
A.
The cigarette industry
B.
The barber shops
C.
The gasoline stations
D.
Wheat farmers
Ans:
The cigarette industry
Explanation :
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Because there are few sellers, each oilgopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by the decisions of other firms. Businesses that are part of an oligopoly share some common characteristics: they are less concentrated than in a monopoly, but more concentrated than in a competitive system. This creates a high amount of interdependence which encourages competition in non price-related areas, like advertising and packaging.
[2] One of the essential conditions of perfect competition is :
A.
product differentiation
B.
multiplicity of prices for identical products at any one time.
C.
many sellers and a few buyers.
D.
Only one price for identical goods at any one time.
Ans:
Only one price for identical goods at any one time.
Explanation :
The fundamental condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical. In other words, they are perfect substitutes for one another. There are no trademarks, patents etc. to distinguish the product of one seller from that of another. Under perfect competition, the control over price is completely eliminated because all firms produce homogeneous commodities.
[3] Pump priming should be resorted to at a time of?
A.
Inflation
B.
Deflation
C.
Stagflation
D.
Reflation
Ans:
Deflation
Explanation :
Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. Growth is accomplished through the increase in purchasing power experienced by those affected by the injection of funds, with the goal of prompting higher demand for goods and services.
[4] When will demand become a grant?
A.
When a demand is proposed
B.
After the discussion on demand is over
C.
After the demand is granted
D.
When the budget session is closed.
Ans:
After the demand is granted
Explanation :
The estimates of expenditure included in the Budget and required to be voted by Lok Sabha are in the form of Demands for Grants. These Demands are arranged Ministry-wise and a separate Demand for each of the major services is presented. Each Demand contains first a statement of the total grant and then a statement of the detailed estimate divided into items. A demand becomes a grant after it has been voted. The voting of demands for grants is the exclusive privilege of the Lok Sabha and not of Rajya Sabha.
[5] The value of investment multiplier relates to -
A.
change in income due to change in autonomous investment.
B.
change in autonomous investment due to change in income.
C.
change in income due to change in consumption.
D.
change in the income due to change in induced investment.
Ans:
change in autonomous investment due to change in income.
Explanation :
The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. The investment multiplier tries to determine the financial impact for a public or private project.
[6] Savings rate is relatively low in developed economies because of -
A.
Low per capita income
B.
Welfare programmes
C.
Liquidity/ Borrowing constraint
D.
High interest rate
Ans:
Welfare programmes
Explanation :
As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because at the same income level, the level of consumption is higher in their cases. Besides, as seen in the recent case of the United States, welfare programmes have been found to be responsible for falling saving rate. Redistributing from young and future generations to older generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).
[7] A rising Per Capita Income will indicate a better welfare if it is accompanied by -
A.
unchanged Income distribution overall.
B.
changed Income distribution in favour of rich.
C.
changed Income distribution in favour of poor.
D.
changed Income disribution in favour of Industrial Labour.
Ans:
changed Income distribution in favour of poor.
Explanation :
Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still diminish economic growth. So equal or more rationale distribution of income in the favour of the poor is the best way to ensure that the welfare is holistic and leaves no quarters deprived as after all, economic welfare is a part and parcel of social welfare.
[8] National Income is generated from:
A.
any money making activity
B.
any laborious activity
C.
any profit-making activity
D.
any productive activity
Ans:
any laborious activity
Explanation :
National Income is the monetary value of all goods and services produced by nationals of a country. Only productive activities are included in the computation of national income. All incomes earned through productive activities are included in national income. Income earned through unproductive activities is not included.
[9] Net National Product of a country is -
A.
GDP minus depreciation allowances
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
Ans:
GNP minus depreciation allowances
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Because there are few sellers, each oilgopolist is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by the decisions of other firms. Businesses that are part of an oligopoly share some common characteristics: they are less concentrated than in a monopoly, but more concentrated than in a competitive system. This creates a high amount of interdependence which encourages competition in non price-related areas, like advertising and packaging.
[2] One of the essential conditions of perfect competition is :
A.
product differentiation
B.
multiplicity of prices for identical products at any one time.
C.
many sellers and a few buyers.
D.
Only one price for identical goods at any one time.
Ans:
Only one price for identical goods at any one time.
Explanation :
The fundamental condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical. In other words, they are perfect substitutes for one another. There are no trademarks, patents etc. to distinguish the product of one seller from that of another. Under perfect competition, the control over price is completely eliminated because all firms produce homogeneous commodities.
[3] Pump priming should be resorted to at a time of?
A.
Inflation
B.
Deflation
C.
Stagflation
D.
Reflation
Ans:
Deflation
Explanation :
Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. Growth is accomplished through the increase in purchasing power experienced by those affected by the injection of funds, with the goal of prompting higher demand for goods and services.
[4] When will demand become a grant?
A.
When a demand is proposed
B.
After the discussion on demand is over
C.
After the demand is granted
D.
When the budget session is closed.
Ans:
After the demand is granted
Explanation :
The estimates of expenditure included in the Budget and required to be voted by Lok Sabha are in the form of Demands for Grants. These Demands are arranged Ministry-wise and a separate Demand for each of the major services is presented. Each Demand contains first a statement of the total grant and then a statement of the detailed estimate divided into items. A demand becomes a grant after it has been voted. The voting of demands for grants is the exclusive privilege of the Lok Sabha and not of Rajya Sabha.
[5] The value of investment multiplier relates to -
A.
change in income due to change in autonomous investment.
B.
change in autonomous investment due to change in income.
C.
change in income due to change in consumption.
D.
change in the income due to change in induced investment.
Ans:
change in autonomous investment due to change in income.
Explanation :
The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. The investment multiplier tries to determine the financial impact for a public or private project.
[6] Savings rate is relatively low in developed economies because of -
A.
Low per capita income
B.
Welfare programmes
C.
Liquidity/ Borrowing constraint
D.
High interest rate
Ans:
Welfare programmes
Explanation :
As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because at the same income level, the level of consumption is higher in their cases. Besides, as seen in the recent case of the United States, welfare programmes have been found to be responsible for falling saving rate. Redistributing from young and future generations to older generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).
[7] A rising Per Capita Income will indicate a better welfare if it is accompanied by -
A.
unchanged Income distribution overall.
B.
changed Income distribution in favour of rich.
C.
changed Income distribution in favour of poor.
D.
changed Income disribution in favour of Industrial Labour.
Ans:
changed Income distribution in favour of poor.
Explanation :
Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still diminish economic growth. So equal or more rationale distribution of income in the favour of the poor is the best way to ensure that the welfare is holistic and leaves no quarters deprived as after all, economic welfare is a part and parcel of social welfare.
[8] National Income is generated from:
A.
any money making activity
B.
any laborious activity
C.
any profit-making activity
D.
any productive activity
Ans:
any laborious activity
Explanation :
National Income is the monetary value of all goods and services produced by nationals of a country. Only productive activities are included in the computation of national income. All incomes earned through productive activities are included in national income. Income earned through unproductive activities is not included.
[9] Net National Product of a country is -
A.
GDP minus depreciation allowances
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
Ans:
GNP minus depreciation allowances
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. Growth is accomplished through the increase in purchasing power experienced by those affected by the injection of funds, with the goal of prompting higher demand for goods and services.
[4] When will demand become a grant?
A.
When a demand is proposed
B.
After the discussion on demand is over
C.
After the demand is granted
D.
When the budget session is closed.
Ans:
After the demand is granted
Explanation :
The estimates of expenditure included in the Budget and required to be voted by Lok Sabha are in the form of Demands for Grants. These Demands are arranged Ministry-wise and a separate Demand for each of the major services is presented. Each Demand contains first a statement of the total grant and then a statement of the detailed estimate divided into items. A demand becomes a grant after it has been voted. The voting of demands for grants is the exclusive privilege of the Lok Sabha and not of Rajya Sabha.
[5] The value of investment multiplier relates to -
A.
change in income due to change in autonomous investment.
B.
change in autonomous investment due to change in income.
C.
change in income due to change in consumption.
D.
change in the income due to change in induced investment.
Ans:
change in autonomous investment due to change in income.
Explanation :
The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. The investment multiplier tries to determine the financial impact for a public or private project.
[6] Savings rate is relatively low in developed economies because of -
A.
Low per capita income
B.
Welfare programmes
C.
Liquidity/ Borrowing constraint
D.
High interest rate
Ans:
Welfare programmes
Explanation :
As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because at the same income level, the level of consumption is higher in their cases. Besides, as seen in the recent case of the United States, welfare programmes have been found to be responsible for falling saving rate. Redistributing from young and future generations to older generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).
[7] A rising Per Capita Income will indicate a better welfare if it is accompanied by -
A.
unchanged Income distribution overall.
B.
changed Income distribution in favour of rich.
C.
changed Income distribution in favour of poor.
D.
changed Income disribution in favour of Industrial Labour.
Ans:
changed Income distribution in favour of poor.
Explanation :
Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still diminish economic growth. So equal or more rationale distribution of income in the favour of the poor is the best way to ensure that the welfare is holistic and leaves no quarters deprived as after all, economic welfare is a part and parcel of social welfare.
[8] National Income is generated from:
A.
any money making activity
B.
any laborious activity
C.
any profit-making activity
D.
any productive activity
Ans:
any laborious activity
Explanation :
National Income is the monetary value of all goods and services produced by nationals of a country. Only productive activities are included in the computation of national income. All incomes earned through productive activities are included in national income. Income earned through unproductive activities is not included.
[9] Net National Product of a country is -
A.
GDP minus depreciation allowances
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
Ans:
GNP minus depreciation allowances
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. The investment multiplier tries to determine the financial impact for a public or private project.
[6] Savings rate is relatively low in developed economies because of -
A.
Low per capita income
B.
Welfare programmes
C.
Liquidity/ Borrowing constraint
D.
High interest rate
Ans:
Welfare programmes
Explanation :
As a general rule, saving is considered as a derivative of consumption. Developed economies have lower saving rates than developing countries because at the same income level, the level of consumption is higher in their cases. Besides, as seen in the recent case of the United States, welfare programmes have been found to be responsible for falling saving rate. Redistributing from young and future generations to older generations raises national consumption and lowers national saving (The Concise Encyclopedia of Economics).
[7] A rising Per Capita Income will indicate a better welfare if it is accompanied by -
A.
unchanged Income distribution overall.
B.
changed Income distribution in favour of rich.
C.
changed Income distribution in favour of poor.
D.
changed Income disribution in favour of Industrial Labour.
Ans:
changed Income distribution in favour of poor.
Explanation :
Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still diminish economic growth. So equal or more rationale distribution of income in the favour of the poor is the best way to ensure that the welfare is holistic and leaves no quarters deprived as after all, economic welfare is a part and parcel of social welfare.
[8] National Income is generated from:
A.
any money making activity
B.
any laborious activity
C.
any profit-making activity
D.
any productive activity
Ans:
any laborious activity
Explanation :
National Income is the monetary value of all goods and services produced by nationals of a country. Only productive activities are included in the computation of national income. All incomes earned through productive activities are included in national income. Income earned through unproductive activities is not included.
[9] Net National Product of a country is -
A.
GDP minus depreciation allowances
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
Ans:
GNP minus depreciation allowances
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Per capita income has lately been viewed as a better determinant of economic development and welfare. However, high inequality can still diminish economic growth. So equal or more rationale distribution of income in the favour of the poor is the best way to ensure that the welfare is holistic and leaves no quarters deprived as after all, economic welfare is a part and parcel of social welfare.
[8] National Income is generated from:
A.
any money making activity
B.
any laborious activity
C.
any profit-making activity
D.
any productive activity
Ans:
any laborious activity
Explanation :
National Income is the monetary value of all goods and services produced by nationals of a country. Only productive activities are included in the computation of national income. All incomes earned through productive activities are included in national income. Income earned through unproductive activities is not included.
[9] Net National Product of a country is -
A.
GDP minus depreciation allowances
B.
GDP plus net income from abroad
C.
GNP minus net income from abroad
D.
GNP minus depreciation allowances
Ans:
GNP minus depreciation allowances
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
[10] Which one of the following is not a method of estimating National Income?
A.
Expenditure method
B.
Product method
C.
Matrix method
D.
Income method
Ans:
Matrix method
Explanation :
The matrix method is a structural analysis method used as a fundamental principle in many applications in civil engineering. The method is carried out, using either a stiffness matrix or a flexibility matrix. Primarily there are three methods of measuring national income. The methods are product method, income method and expenditure method.
[11] Who said 'Supply creates its own demand'?
A.
Adam Smith
B.
J.B.Saw
C.
Marshall
D.
Ricardo
Ans:
J.B.Saw
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Supply creates its own demand is the formulation of Say's law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, interest and Money (1936) and a central tenet of Keynesian economics. Say's law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767-1832), who stated that "products are paid for with products" and "a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
[12] Investment is equal to :
A.
gross total of all types of physical capital assets
B.
gross total of all capital assets minus wear and tear
C.
stock of plants, machines and equipments
D.
None of the above
Ans:
gross total of all capital assets minus wear and tear
Explanation :
Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of capital actually used for investment purposes and not held as savings or consumed. But in fact, in national accounts, the concept of gross capital formation refers only to the accounting value of the "additions of non-financial produced assets to the capital stock less the disposals of these assets". "Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
[13] 'Gold' is mainly related to -
A.
Local market
B.
National market
C.
International market
D.
Regional market
Ans:
International market
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Gold is mainly related to the international market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times. Gold price has shown a long term correlation with the price of crude oil.
[14] Value-added means value of -
A.
output at factor cost
B.
output at market prices
C.
goods and services less depreciation
D.
goods and services less cost of intermediate goods and services
Ans:
goods and services less cost of intermediate goods and services
Explanation :
Value added is an economic term to express the difference between the value of goods and the cost of materials or supplies that are used in producing them. It is a measure of economic activity which eliminates the duplication inherent in the sales value figure which results from the use of products of some establishments as materials or services by others. So it is of goods and services less cost of intermediate goods and services.
[15] In India, disguised unemployment is generally observed in -
A.
the Agricultural sector
B.
the Factory sector
C.
the Service sector
D.
All these sectors
Ans:
the Agricultural sector
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
As the word suggests, disguised unemployment refers to a situation when a person is apparently employed, but in effect unemployed. It is a phenomenon of concealed unemployment, not visible to the open eyes. Here it is not possible to identify as to who are unemployed, as all "appear to be working." Disguised unemployment is especially seen in the field of agriculture. Most of the people are observed to be engaged in agriculture; however, in reality a sufficient number of them are unemployed. Their contribution regarding production is negligible.
[16] Excise duty on a commodity is payable with reference to its -
A.
production
B.
production and sale
C.
production and transportation
D.
production, transportation and sale
Ans:
production
Explanation :
An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties arc border taxes.
[17] "Smart Money" term is used for -
A.
Credit Card
B.
Internet Banking
C.
eBanking
D.
Cash with Public
Ans:
Credit Card
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Credit cards are sometimes considered as smart money since they enable transactions without the need for physical cash and that, too, in a convenient manner. It is plastic money that is used to pay for products and services at over 20 million locations around the world. In pure economic terms, Smart Money refers to investments made by people experienced in matters of finance.
[18] Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
A.
RBI
B.
The Labour Bureau
C.
Commerce Department
D.
NITI Aayog
Ans:
The Labour Bureau
Explanation :
The Consumer Price Index Numbers for Industrial Workers CPI (IW) are being compiled, maintained and disseminated by the Labour Bureau since its inception in October, 1946. These index numbers are being utilized for fixation and revision of wages and de-termination of variable Dearness Allowances payable to workers in organized sectors of the economy. These index numbers are compiled by the Bureau on month to month basis.
[19] 'Green Banking' means :
A.
Banks financing agriculture
B.
Banks financing irrigation projects
C.
Banks financing farmers
D.
Banks financing pro environmental projects
Ans:
Banks financing pro environmental projects
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Green Banking refers to practices and guidelines that make banks sustainable in economic, environment, and social dimensions. Green banking is also known as environment-friendly banking, ethical banking or sustainable banking. A conventional bank becomes a green bank by directing its core operations towards the betterment of the environment.
[20] A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
A.
Soft currency
B.
Hard currency
C.
Scarce currency
D.
Surplus currency
Ans:
Soft currency
Explanation :
Soft currency is a currency with a value that fluctuates as a result of the country’s political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
[21] A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
A.
Bear
B.
Bull
C.
Bison
D.
Boar
Ans:
Bull
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull.
[22] Bank rate is that rate on which -
A.
Any bank lends money to an individual
B.
State Bank of India gives loan to the rural banks
C.
Central Bank of Country lends money to the commercial banks
D.
Rural bank gives loan to cooperative societies
Ans:
Central Bank of Country lends money to the commercial banks
Explanation :
Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. The reverse repo rate is the rate at which the banks park surplus funds with reserve bank, while the repo rate is the rate at which the banks borrow from the central bank.
[23] Devaluation usually causes the internal prices to :
A.
fall
B.
rise
C.
remain unchanged
D.
None of the above
Ans:
remain unchanged
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue of the country. When the exports are increased all efforts are made to increase the production of the country. However, devaluation of currency is in relation to external currencies and external trade. It has effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
[24] Which among the following is not a non-customs duty obstacle in the world trade?
A.
Quantity restriction
B.
Establishment of Standard of labour in manufacturing
C.
Determination of import duty uniformly
D.
Restrictions on goods quality
Ans:
Determination of import duty uniformly
Explanation :
Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, export restrictions, limiting the activities of state trading, export subsidies, countervailing duties, technical barriers to trade, sanitary and phyto-sanitary measures, rules of origin, etc. Determination of import duty uniformly is comes under the sovereign duty of a nation. It is internal development.
[25] A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
A.
defence
B.
betting
C.
inter-trading
D.
mortgage
Ans:
defence
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.
Explanation :
It is known as defence, It is a type of resistance against danger, attack, or harm to business or holding. A seller or buyer resorts to defence as a means of protection.