Practice Quiz set 12 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) When was the first Regional Rural Bank formed?
(a)
(b)
(c)
(d)
Q-2) ‘Simply Click’ credit card scheme is launched by which of the following Banks?
(a)
(b)
(c)
(d)
Q-3) Which one of the following is an example of optional money?
(a)
(b)
(c)
(d)
On the basis of acceptability, money has been classified into legal tender and optional money.
Legal tender money is enforced by law. Optional money is that money that may or may not be accepted as a means of payment; it has no legal sanction.
Different credit instruments, like, cheques, bank drafts, etc., are examples of optional money.
Q-4) Consider the following statement:
- Increase in private expenditure
- Increase in exports
- Increase in taxation
- Rapid growth of population
Choose the factor that does not cause an increase in the demand for goods and services.
(a)
(b)
(c)
(d)
Factors causing an increase in demand for goods & services:
- Increase in public expenditure
- Increase in private expenditure
- Increase in exports
- Reduction in taxation
- Rapid growth of population
- Black money
- Deficit financing
- Cheap money policy
- Increase in consumer spending
- Department of Tax internal debts.
Q-5) Consider the following statements : The function of the Reserve Bank of India does not include:
- Open market operations
- Monitoring revenue collection
- Supervising non-banking finance companies
- Review of public expenditure
Which of the statement/s given above is/are correct?
(a)
(b)
(c)
(d)
Q-6) Consider the following:- Commercial Banks
- Central Bank of India
- Government
Which among the above can create money?
(a)
(b)
(c)
(d)
Q-7) Consider the following:- Change in the Reserve Requirements
- Taxation
- Government Spending
Which among the above terms are closest to the Fiscal policy ?
(a)
(b)
(c)
(d)
Q-8) Consider the following statements:
- Foreign Direct Investment in India has steadily increased in the last 5 years
- Foreign Portfolio Investment in India has steadily increased in the last 5 years
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
Refer the trends
Q-9) Who cannot bid for companies put up for sale under the new Insolvency and Bankruptcy Code (IBC):
- A wilful defaulter
- Promoters of the company
Select the correct answer using the code given below
(a)
(b)
(c)
(d)
As per the amendment done in the Insolvency and Bankruptcy Code (IBC) in November 2017, Wilful Defaulters cannot bid for the companies put up for sale during the resolution process.
It also prohibits bidding any borrower (or promoter) whose account has been identified as an NPA for over a year and has not repaid the dues.
But if the borrower/promoter has made payment of all overdue amounts with interest and charges, then he can bid (submit a resolution plan) for the company.
[Ref: Economic Survey 2017-18 Vol 2 page 52]
Q-10) RBI giving its surplus reserves to government may result in which of the following:
- Increasing inflation in the economy
- Decreasing inflation in the economy
- No impact on inflation
- Meeting the fiscal deficit target of the government
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
Till the time, reserves are with RBI, it is not part of the money supply.
But if RBI gives its surplus reserves to the government which will ultimately spend this amount will result in this extra money reaching to the public resulting in higher inflation.
RBI paying dividends to the government is a part of budgetary resources of govt. of India and it helps in reducing the fiscal deficit.