Practice Quiz set 9 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) In the list of Top 50 Most Valued Global Banks (in terms of market capitalisation) released by Bloomberg on 17 January 2015, which bank got first rank?
(a)
(b)
(c)
(d)
Industrial and Commercial Bank of China (ICBC) tops the list of global banks, with a market capitalisation of $285 billion, over seven times that of HDFC Bank.
Q-2) Which of the following ‘Public Undertakings’ has not been conferred with ‘Maharatna’ Status ?
(a)
(b)
(c)
(d)
There are 5 Maharatna companies: Coal India Limited, Indian Oil Corporation Limited, NTPC Limited, Oil and Natural Gas Corporation Limited and Steel Authority of India limited. Bharat Heavy Electricals Limited (BHEL) is a navaratna company.
Q-3) Reserve Bank of India keeps some securities against notes. These securities are always less in comparison to
(a)
(b)
(c)
(d)
Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to the customers.
Hereby approved securities we mean, bonds and shares of different companies. The statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit.
Statutory liquidity ratio is the number of liquid assets such as precious metals (Gold) or other approved securities, that a financial institution must maintain as reserves other than the cash.
In a growing economy, banks would like to invest in the stock market, not in Government Securities or Gold as the latter would yield fewer returns. One more reason is long term Government Securities (or any bond) are sensitive to interest rate changes. But in an emerging economy interest rate change is a common activity.
Q-4) In the context of Indian economy, open market operations to : - borrowing by scheduled banks from RBI
- lending by commercial banks to industry and trade
- purchase and sale of government securities by the RBI
- None of the above
Select the correct answer using the codes given below :
(a)
(b)
(c)
(d)
Open market operation : When RBI buys/sells securities in open market, in case of OMO, first party permanently sells the Government security to second party. Second party is free to do whatever it wants with that security.
Q-5) Consider the following statements about personal Income: - Personal income is that income which is actually obtained by nationals.
- Personal Income = National income – undistributed profits of corporation – payments for social security provisions – corporate tax + government transfer payments + Business transfer payments + Net interest paid by government.
Select the correct answer using the codes given below:
(a)
(b)
(c)
(d)
Personal income is a flow concept.It isthe income that is obtained by nationals. Personal income is obtained by subtracting corporate taxes and payments made for social securities provision from national income and adding to it government transfer payments, business transfer payments and net interest paid by the government.
Q-6) Reserve Bank of India was nationalised in
(a)
(b)
(c)
(d)
The Reserve Bank of India (RBI) is India’s central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.
Following India’s independence in 1947, the RBI was nationalised in the year 1949. Though originally set up as a shareholders’ bank, the RBI has been fully owned by the Government of India since its nationalization in 1949.
Q-7) The volatility in the Indian share market is due to- inflow and outflow of foreign funds.
- fluctuations in foreign capital markets.
- changes in the monetary policy.
Which of the above mentioned causes are correct?
(a)
(b)
(c)
(d)
Q-8) Which of the following is true regarding the Indian Economy from 2007-2008 to 2012-13?
- Indian Economy’s growth was continuously slowing down from 2007-2008 to 2012-2013 due to many factors including the Eurozone crisis as well as domestic factors.
- WPI has high weightage for food and fuel than CPI.
- In India lack of food grain production due to the continuous failure of monsoons is the primary reason for food inflation.
- GAAR (General Anti Avoidance Rule) was re-introduced in budget 2013.
Options :
(a)
(b)
(c)
(d)
Indian Economy grew by 8.6% and 9.3% in 2009-10 and 2010-11 before it plunged again into slow growth.
CPI has a high weightage for food. In India, during the mentioned period food grain production actually had gone up.
GAAR is kept in abeyance as of now.
Q-9) Consider the following systems was/were provided by the Government of India, Act 1935:
- Separation of provincial budgets from the central budget for the first time.
- Introduction of portfolio system in the Executive.
- Establishment of a Federal public service commission.
Which of the systems given above is correct:
(a)
(b)
(c)
(d)
The limited advisory function accorded to the Public Service Commission and the continued stress on this aspect by the leaders of our freedom movement resulted in the setting up of a Federal Public Service Commission under the Government of India Act, 1935.
The Federal Public Service Commission became the Union Public Service Commission after Independence. The portfolio system in the Executive was introduced by the Indian constitution council act, 1861.
The separation of provincial budgets from the central budget was introduced by the Indian council's Act, 1919.
Q-10) Consider the following statements :
- Inflation benefits the debtors.
- Inflation benefits the bond-holders.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
Inflation redistributes wealth from creditors to debtors i.e., lenders suffer and borrowers benefit out of inflation.
Bondholders = this person has lent money (to debtors) and received a bond in return.
So he is a lender, he suffers, by the way, they haven’t specifically used the word – “inflation-indexed bonds”, hence we cannot say inflation benefits the bond-holders.