public finance fiscal & monetary policy section 2 Practice Questions Answers Test with Solutions & More Shortcuts
Fiscal Policy, Public Finance and Monetary Policy PRACTICE TEST [7 - EXERCISES]
public finance fiscal & monetary policy section 1
public finance fiscal & monetary policy section 2
public finance fiscal & monetary policy section 3
public finance fiscal & monetary policy section 4
public finance fiscal & monetary policy section 5
public finance fiscal & monetary policy section 6
public finance fiscal & monetary policy section 7
Question : 21
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called:
a) SBR (Statutory Bank Ratio)
b) CLR (Central Liquid Reserve)
c) SLR (Statutory Liquid Ratio)
d) CBR (Central Liquid Reserve)
Answer »Answer: (c)
SLR or the Statutory Liquidity Ratio is that ratio of total deposits which a commercial bank has to maintain with itself at any given point of time in the form of liquid assets like cash in hand, current balances with other banks and first-class securities which can be turned into cash (gold, cash or other approved securities).
This ratio at present is 25%. Some assets have to be in liquid form to take care of financial emergencies which every bank has to face. It regulates the credit growth in India.
Question : 22
Which of the following refers to the use by the government of the various instruments such as taxation, expenditure and borrowing in order to achieve the objectives of balanced economic development etc?
- Annual financial statement
- Fiscal policy
- Revenue budget
a) 1 only
b) 3 only
c) 2 only
d) 1, 2 and 3
Answer »Answer: (c)
It is used to achieve the objectives of balanced economic development, full employment or to establish a welfare state Economics takes care of various needs and wants of life
Question : 23
Which of the following are among the non-plan expenditures of the Government of India?
- Defence expenditure
- Subsidies
- All expenditures linked with the previous plan periods
- Interest payment
a) 1 and 2
b) 2 and 4
c) 1 and 3
d) 1, 2, 3 and 4
Answer »Answer: (d)
Non-plan expenditures include non-developmental expenditure (interest payment, subsidies, defence expenditure, civil administration), developmental expenditure and expenditure incurred on projects which remained unfinished in the earlier plans.
Question : 25 [SSC CML 2000]
A Black Market is a situation wherein
a) Goods are made available (sold) only after there is a rise in prices
b) Goods are sold secretly
c) Goods are loaded by the producers
d) Goods are sold at prices higher than what is fixed by the Government
Answer »Answer: (b)
Black market is the market in which illegal goods are traded. Goods acquired illegally take one of two price levels:
- they may be cheaper than legal market prices as the supplier does not have to pay for production costs or taxes; or
- they may be more expensive than legal market prices as the product is difficult to acquire or produce, dangerous to handle or not easily available legally.
Black-market transactions typically occur as a way for participants to avoid government price controls or taxes, conducting transactions 'under the table.'
So the most defining feature of black markets is that they have to be carried out secretly as they are illegal.
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Fiscal Policy, Public Finance and Monetary Policy Shortcuts »
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
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» Banking, Security Market & Insurance
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