Indian Economy Questions Practice Question and Answer

Q:

If Reserve Bank of India reduces the cash reserve ratio, it will :

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  • 1
    increase credit creation
    Correct
    Wrong
  • 2
    decrease credit creation
    Correct
    Wrong
  • 3
    have no impact on credit creation
    Correct
    Wrong
  • 4
    have no definite impact on credit creation
    Correct
    Wrong
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Answer : 1. "increase credit creation"

Q:

Subsidies mean that is

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  • 1
    payment by government for purchase of goods and services
    Correct
    Wrong
  • 2
    payment made by business enterprises to factors of production
    Correct
    Wrong
  • 3
    payment made by companies to shareholders
    Correct
    Wrong
  • 4
    payment made by the government to business enterprises, without buying any goods and services
    Correct
    Wrong
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Answer : 4. "payment made by the government to business enterprises, without buying any goods and services"

Q: To the economist, total cost includes 1517 0

  • 1
    neither implicit nor explicit costs.
    Correct
    Wrong
  • 2
    implicit, but not explicit, costs.
    Correct
    Wrong
  • 3
    explicit, but not implicit, cost.
    Correct
    Wrong
  • 4
    explicit and implicit costs.
    Correct
    Wrong
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Answer : 4. "explicit and implicit costs."
Explanation :

Answer: D) explicit and implicit costs. Explanation:

Q:

If the RBI adopts an expansionist open market operations policy, this means that it will

5665 1

  • 1
    buy securities from non-government holders
    Correct
    Wrong
  • 2
    sell securities in the open market
    Correct
    Wrong
  • 3
    offer commercial banks more credit in the open market
    Correct
    Wrong
  • 4
    openly announce to the market that it intends to expand credit
    Correct
    Wrong
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Answer : 3. " offer commercial banks more credit in the open market"

Q:

Which three indicators are used in the Human Development Index (HDI)?

I. Standard of living

II. Education

III. Life expectancy

IV. Condition of environment


2938 1

  • 1
    Only I, II & IV
    Correct
    Wrong
  • 2
    Only I, II, & III
    Correct
    Wrong
  • 3
    Only I & II
    Correct
    Wrong
  • 4
    All of the above
    Correct
    Wrong
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Answer : 2. "Only I, II, & III"

Q: Which of the following activities are examples of data gathering? 3922 0

  • 1
    Counting the votes in an election to determine the next governor
    Correct
    Wrong
  • 2
    Making a pie chart showing the kinds of television sets owned by people in a sample of 1,000
    Correct
    Wrong
  • 3
    Finding the mean weight of cancer patients in a study
    Correct
    Wrong
  • 4
    Using the results of a mathematical model to predict the next day's weather
    Correct
    Wrong
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Answer : 1. "Counting the votes in an election to determine the next governor"
Explanation :

Answer: A) Counting the votes in an election to determine the next governor Explanation: Option A) "Counting the votes in an election to determine the next governor"  is the only one where data gathering is done.   In all other options, data is already collected and now analyzing of data is going on.

Q:

Short-term finance is usually for a period ranging up to

2904 1

  • 1
    5 months
    Correct
    Wrong
  • 2
    10 months
    Correct
    Wrong
  • 3
    12 months
    Correct
    Wrong
  • 4
    8 months
    Correct
    Wrong
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Answer : 3. "12 months "

Q:

In a cut motion, when the amount of demand is reduced by Rs 100/- , it is known as

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  • 1
    Disapproval of policy cut
    Correct
    Wrong
  • 2
    Economy cut
    Correct
    Wrong
  • 3
    Vote on Account
    Correct
    Wrong
  • 4
    Token cut
    Correct
    Wrong
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Answer : 4. "Token cut"

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