Practice Test pdf set 11 - indian economy mcq Online Quiz (set-1) For All Competitive Exams

Q-1)   When the Reserve Bank of India was established?

(a)

(b)

(c)

(d)

Q-2)   In which year the export-import (EXIM) Bank in India was set up?

(a)

(b)

(c)

(d)

Q-3)   Capital market deals with

(a)

(b)

(c)

(d)

Explanation:

Capital markets are financial markets for the buying and selling of long-term debt or equity-backed securities. These markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making longterm investments.

Q-4)   With reference to the Indian Public Finance, consider the following statements:
  1. External liabilities reported in the Union Budget are based on historical exchange rates
  2. The continued high borrowing has kept the real interest rates high in the economy
  3. The upward trend in the ratio of Fiscal Deficit of GDP a recent years has a adverse effect on private investment
  4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government
Which of these statements are correct?

(a)

(b)

(c)

(d)

Q-5)   Name of four institutions that are regulated by the RBI as all-India FIs:
  1. Export Import Bank of India (EXIM Bank)
  2. National Bank for Agriculture and Rural Development (NABARD)
  3. National Housing Bank (NHB)
  4. Small Industries Development Bank of India (SIDBI)
Choose the correct answer.

(a)

(b)

(c)

(d)

Explanation:

According to the Economic Survey, there are four Institutions, namely the Export Import Bank of India (EXIM Bank), National Bank for Agriculture and Rural Development (NABARD), the National Housing Bank (NHB) and Small Industries Development Bank of India (SIDBI).

Q-6)   Choose the type of capital market:
  1. Securities Market
  2. Financial institutions
  3. Gill-edged market
  4. Incorporated securities
Which among the following code is correct?

(a)

(b)

(c)

(d)

Explanation:

The securities market is further divided into the giltedged market and the corporate securities market.

Q-7)   Consider the following statements. Full convertibility of the rupee may mean
  1. Its free float with any of the international currencies.
  2. Its direct exchange with any other international currency at any prescribed place inside and outside the country.
  3. It acts just like any other international currency.
Which of these statements are correct?

(a)

(b)

(c)

(d)

Q-8)   Which of the following grants / grant direct credit assistance to rural households?
  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks
Select the correct answer using the codes given below.

(a)

(b)

(c)

(d)

Explanation:

Land development banks started financing long term loans for more significant rural development activities like rural and cottage industries, rural artisans etc.

The main purpose of RRBs is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans.

Q-9)   With reference to the Non-banking Financial Companies (NBFCs) in India. Consider the following statements.
  1. They cannot engage in the acquisition of securities issued by the government.
  2. They cannot accept demand deposits like Saving Accounts.
Which of the statement(s) given above is/are correct?

(a)

(b)

(c)

(d)

Explanation:

Q-10)   _______ deals with long-term finance (more than 365 days) funds. It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).
  1. Capital market
  2. Stock market
  3. Debit
  4. Credit
Choose the correct answer.

(a)

(b)

(c)

(d)

Explanation:

Capital market deals with long-term finance (more than 365 days) funds.

It includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).