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The following question based on Introduction to Indian Economy topic of indian economy mcq
List | List II |
(Indian Company) | (Foreign Company) |
A. Tata | 1. AIG |
B. ICICI Ltd. | 2. Standard Life Insurance |
C. Bajaj Ltd. | 3. Prudential Life Insurance |
D. HDFC Bank | 4. Allianz |
(a) 2 4 3 1
(b) 1 3 4 2
(c) 4 1 2 3
(d) 3 4 1 2
The correct answers to the above question in:
Answer: (b)
Tata AIG General Insurance Company offers motor insurance, car insurance, auto insurance, travel insurance & health insurance services in India.
ICICI Prudential offers insurance for wealth plans, health, life insurance in India, term insurance plans, ULIPs, retirement solutions, pension plans, etc.
Bajaj Allianz presents Life Insurance, Car Insurance, Travel Insurance, Health Insurance, Term Insurance and Home Insurance.
HDFC Life Insurance is one of India’s leading private life insurance companies, which offers a range of individual & group insurance plans & policies. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), India’s leading housing finance institution and Standard Life plc, the leading provider of financial services in the United Kingdom.
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Question : 1
Consider the following liquid assets:
- Demand deposits with the banks
- Time deposits with the banks
- Savings deposits with the banks
- Currency
a) 4-3-2-1
b) 2-3-1-4
c) 1-4-3-2
d) 4-1-3-2
Answer »Answer: (d)
Currency is most liquid, because you can use it as and when you want. Time deposit with bank (e.g. fixed deposit), are least liquid compared to savings/ demand deposit with banks and currency.
Question : 2
The best way, a bank can avoid loss is to
a) accept sound collateral
b) lend only to individuals known to the bank
c) give only short-term loans
d) lend only to bank’s old customers
Answer »Answer: (a)
The best way for a bank to avoid loss is to accept only sound collateral.
In lending agreements, collateral is a borrower’s pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as protection for a lender against a borrower’s default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation.
If a borrower does default on a loan (due to insolvency or another event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral.
In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. Should the buyer fail to pay the loan under the mortgage loan agreement, the ownership of the real estate is transferred to the bank.
The bank uses a legal process called foreclosure to obtain real estate from a borrower who defaults on a mortgage loan. Collateral, especially within banking, traditionally refers to secured lending (also known as asset-based lending).
Question : 3
Special Economic Zone (SEZ) concept was first introduced in
a) Pakistan
b) Japan
c) India
d) China
Answer »Answer: (d)
Worldwide, the first known instance of an SEZ seems to have been an industrial park set up in Puerto Rico in 1947 to attract investment from the US mainland.
In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen.
Question : 4
The one rupee note bears the signature of the
a) Governor, RBI
b) None of these
c) Finance Minister
d) Secretary, Ministry of Finance
Answer »Answer: (d)
The one rupee note is issued by the Ministry of Finance and it bears the signature of the Finance Secretary, while other notes bear the signature of Governor RBI.
However, only RBI is the only source of legal tender money because the distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government.
Question : 5
The abbreviation ‘SEBI’ stands for
a) Securities and Exchange Bank of India
b) Savings and Exchange Bank of India
c) Survey of essential business in India
d) Securities and Exchange Board of India
Answer »Answer: (d)
The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was established on 12 April 1992 through the SEBI Act, 1992. Initially, SEBI was a non-statutory body without any statutory power.
However, in 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act 1992.
In April 1998 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
Question : 6
To achieve high rates of growth of national output, the economy has to
a) borrow foreign capital
b) reduce the rate of growth of population
c) step up the rate of savings
d) increase the rate of investment and reduce the capital output ratio
Answer »Answer: (d)
The immediate effect of devoting a larger share of national output to investment is that the economy devotes a smaller share to consumption; that is, “living standards” as measured by consumption fall. The higher investment rate means that the capital stock increases more quickly, so the growth rates of output and output per worker rise.
According to Smith, in a developing economy, both income level and capital stock rise. In addition to this, the rate of capital accumulation also shows a tendency to increase.
This leads to an increase in the capital stock in successive periods as investment keeps on increasing. Another important factor that contributes to the progress of an economy is the successive decline in the incremental capital-output ratio due to the influence of capital on the productivity of labour.
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