Practice Quiz set 10 - indian economy mcq Online Quiz (set-1) For All Competitive Exams

Q-1)   In India, regional rural banks were established in the year

(a)

(b)

(c)

(d)


Q-2)   What is ‘Future Trading’?
  1. It is a trade between two stock exchanges wherein it is decided to purchase stocks of each other on a fixed price throughout the year
  2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price
  3. It is an agreement between stock exchange that they will not trade in stocks of each other in future or for a predetermined period of time

(a)

(b)

(c)

(d)


Q-3)   FEMA (Foreign Exchange Management Act) was finally implemented in the year

(a)

(b)

(c)

(d)

Explanation:


Q-4)   Consider the following statements.
  1. Bank rate is the rate of interest which RBI charges its clients on their short-term borrowing.
  2. Repo rate is the rate of interest which RBI charges its clients on their long-term borrowing.
Which of the statement(s) given above is/are correct?

(a)

(b)

(c)

(d)


Q-5)   A speculator who sells stocks, in order to buy back when price falls, for gain is a

(a)

(b)

(c)

(d)

Explanation:

A bear is a speculator who is wary of fall in prices and hence sells securities so that he may buy them at cheap prices in future.

He does not have securities at present but sells them at higher prices in anticipation that he will supply them business purchasing at lower prices in the future.

If the prices move down as per the expectations of the bear he will earn profits out of these transactions.


Q-6)   Consider the following statements.
  1. The National Housing Bank (NHB), the apex institution of housing finance in India was set-up as a wholly-owned subsidiary of the Reserve Bank of India.
  2. The Small Industries Development Bank of India was established as a wholly owned subsidiary of the Industrial Development Bank of India.
Which of the statement(s) given above is/are correct?

(a)

(b)

(c)

(d)


Q-7)   Which of the following are among the taxes levied exclusively by the Central Government and are mentioned in the Union List of the Seventh Schedule of the Constitution of India?
  1. Corporation Tax
  2. Taxes on advertisement in the newspapers
  3. Taxes on Agricultural income
  4. Taxes on consumption/sale of electricity

(a)

(b)

(c)

(d)

Explanation:

Taxes on Agricultural income and Taxes on consumption/sale of electricity are levied by the State Governments.


Q-8)   The _____ is the total amount of monetary assets available in an economy at a specific time.
  1. Money Supply
  2. Money Stock
  3. Money Demand
  4. Stock in Demand
Choose the correct answer from the above code:

(a)

(b)

(c)

(d)

Explanation:

In economics, the money supply or money stock is the total amount of monetary assets available in an economy at a specific time.


Q-9)   Match List-I with List-II and select the correct answer using the codes given below the lists.
List I List II
a. 1994 1. Export-Import Bank of India
b. 1964 2. Industrial Development Bank of India
c. 1982 3. Industrial Credit and Investment Corporation of India
d. 1987 4. Board of Industrial and Financial Reconstruction
Codes: A B C D

(a)

(b)

(c)

(d)

Explanation:


Q-10)   The interest rate at which the Reserve Bank of India lends to Commercial Banks in the shortterm to maintain liquidity is known as

(a)

(b)

(c)

(d)