Indian Economy Questions Practice Question and Answer

Q:

Banks and other financial institutions in India are required to maintain a certain amount of liquid assets like cash, precious metals and other short term securities as a reserve all the time. In Banking World this is known as–

735 0

  • 1
    PLR
    Correct
    Wrong
  • 2
    Fixed Asset
    Correct
    Wrong
  • 3
    SLR
    Correct
    Wrong
  • 4
    CRR
    Correct
    Wrong
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Answer : 4. "CRR "

Q:

Of the following land uses, which is restricted to Special Economic Zones?

623 0

  • 1
    Information Technology Companies
    Correct
    Wrong
  • 2
    Free Trade Centres
    Correct
    Wrong
  • 3
    Educational Institutions
    Correct
    Wrong
  • 4
    Marketing Centres
    Correct
    Wrong
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Answer : 2. "Free Trade Centres"

Q:

‘Functional Finance’ is associated with–

700 0

  • 1
    Abba ‘P’ Lerner
    Correct
    Wrong
  • 2
    Adolph Wogner
    Correct
    Wrong
  • 3
    Adam Smith
    Correct
    Wrong
  • 4
    Adams
    Correct
    Wrong
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Answer : 1. "Abba ‘P’ Lerner "

Q:

Diamonds are priced higher than water because–

813 0

  • 1
    consumers do not buy them at lower prices.
    Correct
    Wrong
  • 2
    they are sold by selected firms with monopolistic powers.
    Correct
    Wrong
  • 3
    their total utility to buyers is higher than that of water.
    Correct
    Wrong
  • 4
    their marginal utility to buyers is higher than that of water
    Correct
    Wrong
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Answer : 2. "they are sold by selected firms with monopolistic powers."

Q:

Externality theory is the basic theory of the following branch of Economics–

775 0

  • 1
    International Economics
    Correct
    Wrong
  • 2
    Environomics
    Correct
    Wrong
  • 3
    Fiscal Economics
    Correct
    Wrong
  • 4
    Macro Economics
    Correct
    Wrong
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Answer : 2. "Environomics"

Q:

Raw materials and money in hand are called _____.

1604 0

  • 1
    Human capital
    Correct
    Wrong
  • 2
    Working capital
    Correct
    Wrong
  • 3
    Factors of production
    Correct
    Wrong
  • 4
    None of the above
    Correct
    Wrong
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Answer : 2. "Working capital"

Q:

___________ unemployment happens when people are not able to find jobs during some months of the year.

1077 1

  • 1
    Disguised
    Correct
    Wrong
  • 2
    Educated
    Correct
    Wrong
  • 3
    Seasonal
    Correct
    Wrong
  • 4
    None of the above
    Correct
    Wrong
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Answer : 3. "Seasonal"

Q:

In which account will the expenditure on the installation of new machinery be disbursed?

908 0

  • 1
    Cash account
    Correct
    Wrong
  • 2
    Machinery Account
    Correct
    Wrong
  • 3
    Profit or loss
    Correct
    Wrong
  • 4
    Installation expense account
    Correct
    Wrong
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Answer : 2. "Machinery Account"

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