Practice Quiz set 6 - indian economy mcq Online Quiz (set-1) For All Competitive Exams

Q-1)   The _________ bank linkage programme continued to be the main micro-finance model by which the formal banking system reaches micro-entrepreneurs (including farmers).
  1. Self-Help Group
  2. Indian bank
  3. SBI
  4. PNB
Choose the correct name of the bank.

(a)

(b)

(c)

(d)

Explanation:

The Self-Help Group (SHG) bank linkage programme continued to be the main micro-finance model by which the formal banking system reaches micro-entrepreneurs (including farmers).

Q-2)   The share broker who sells shares in the apprehension of falling prices of shares is called

(a)

(b)

(c)

(d)

Explanation:

A bear market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.

As investors anticipate losses in a bear market and selling continues, pessimism only grows.

Bear investors believe that the value of a specific security or an industry is likely to decline in the future. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market.

Q-3)   Study the following statements with regard to Reserve Bank of India and select your answer from the codes given below.
  1. It is the Apex Bank.
  2. It regulates the money supply.
  3. It gives loan to the business houses.
  4. It supervises the operations of NABARD.
Code

(a)

(b)

(c)

(d)

Q-4)   How is the price level measured?
  1. Wholesale Price Index
  2. Consumer Price Index
  3. Gross Domestic Product (GDP) Deflator
  4. Business Price Index
Choose the correct code.

(a)

(b)

(c)

(d)

Explanation:

Price level is measured by Wholesale Price Index, Consumer Price Index, Gross Domestic Product (GDP) Deflator.

Q-5)   Consider the following statements regarding NonBanking Finance Companies (NBFCs):
  1. NBFCs can also engage in Micro-Finance Activities.
  2. Housing-finance companies form a distinct subgroup of the NBFCs.
  3. The deposit insurance facility of the Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors.
Which among the above statement(s) is/are not correct?

(a)

(b)

(c)

(d)

Q-6)   Consider the following statements. The price of any currency in international market is decided by the
  1. World Bank
  2. Demand for goods/services provided by the country concerned.
  3. Stability of the government of the concerned country.
  4. Economic potential of the country in question of these statements.
Select the correct answer using the codes given below.

(a)

(b)

(c)

(d)

Q-7)   What are the authorities of SEBI?
  1. Oversee the working of stock exchanges
  2. Regulate merchant banks and mutual funds
  3. Register and regulate intermediaries such as stock brokers
Choose the incorrect answer.

(a)

(b)

(c)

(d)

Explanation:

The SEBI is authorised to:

  1. Oversee the working of stock exchanges;
  2. Regulate merchant banks and mutual funds;
  3. Register and regulate intermediaries such as stockbrokers;
  4. Curb fraudulent and unfair trade practices including insider trading;
  5. Promote the development of a healthy capital market.

Q-8)   Which among the following are the ‘Credit-Rating Agencies’ of India?
  1. CRISIL
  2. CARE
  3. ICRA
  4. ONICRA

(a)

(b)

(c)

(d)

Q-9)   In which among the following types comes the Interest Rate Risk?

(a)

(b)

(c)

(d)

Q-10)   Consider the following statements regarding “strategic disinvestment” of PSUs:
  1. Government sells up to 50% or higher percentage of shares to a strategic partner
  2. Management control must be transferred to the strategic partner
Select the correct answer using the code given below:

(a)

(b)

(c)

(d)

Explanation:

The term “Strategic Disinvestment” means the sale of a substantial portion of the Government share-holding of a central public sector enterprise (CPSE) of up to 50%, or such higher percentage (to the strategic partner) along with transfer of management control.

(It has to be kept in mind that even by selling less than 50% stake to the strategic partner, the government can transfer the management control to the strategic partner, it is legally possible.)

In Strategic Disinvestment, management control must be transferred to the private strategic partner. Strategic disinvestment is a way of privatisation