introduction to indian economy section 12 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 46

An economy with very low rate of interest and where economic agents expect the interest rate to rise in future and consequently bond prices to fall, causing capital loss in the economy is going through a situation known as

a) Double dip recession

b) Slow down in the economy

c) Hyperinflation

d) Liquidity trap

Question : 47

The supply-side economics lays greater emphasis on the point of view of :

a) global economy

b) consumer

c) producer

d) middle-man

Question : 48 [SSC MTS 2011]

The food stocks that are built up during the years of bumper harvest are called :

a) Grain stock

b) Buffer stock

c) Production stock

d) Capital stock

Question : 49 [SSC CGL 2016]

Which one is not included in NonBanking Financial Institutions (NBFIs)?

a) SIDBI

b) EXIM

c) NABARD

d) BOI

Question : 50

In the context of the Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

1. To enable the Central Bank to control the number of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

a) 1 and 2 only

b) 2 and 3 only

c) 1 only

d) 1, 2, 3 and 4