Indian Economy Practice Question and Answer

Q:

IMF was established to meet which of the following objectives.

(i) Promoting International Monetary Cooperation

(ii) Expending International Trade

(iii) Lessening the inequlibrium in trade

(iv) Avoiding competitive exchange depreciations.

481 0

  • 1
    i,ii,iii
    Correct
    Wrong
  • 2
    i, iii, iv
    Correct
    Wrong
  • 3
    ii, iv
    Correct
    Wrong
  • 4
    i, ii, iii, iv
    Correct
    Wrong
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Answer : 2. "i, iii, iv"
Explanation :

Explain: -IMF stands for international monetary fund. It publishes “World Economic outlook” every year, IMF is an organisation of 189 countries, working to faster global monetary co-orperation, secur. The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Q:

In which year did the Government of India set up the first mutual fund by an Act of Parliament?

481 0

  • 1
    1979
    Correct
    Wrong
  • 2
    1982
    Correct
    Wrong
  • 3
    1963
    Correct
    Wrong
  • 4
    1971
    Correct
    Wrong
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Answer : 3. "1963"
Explanation :

1. The mutual fund industry in India began in 1963 with the formation of UTI by an Act of Parliament in 1963 and functioned under the regulatory and administrative control of the Reserve Bank of India (RBI).

2. Unit Trust of India (UTI) was established by an Act of Parliament in 1963.

3. UTI is the first mutual fund company established in India.

Q:

As per the recommendations of the National Statistical Commission, the Base Year of the GDP Series in India was revised from 2004-05 to ______ with effect from January 2015.

477 0

  • 1
    2011-12
    Correct
    Wrong
  • 2
    2013-14
    Correct
    Wrong
  • 3
    2005-06
    Correct
    Wrong
  • 4
    2009-10
    Correct
    Wrong
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Answer : 1. "2011-12"
Explanation :

1. From January 2015, as per the recommendations of the National Statistical Commission, the GDP in India The base year of the (GDP) series was revised from 2004-05 to 2011-12.

Q:

Who controls the credit generated by commercial banks?

472 0

  • 1
    Government of India
    Correct
    Wrong
  • 2
    State Bank of India
    Correct
    Wrong
  • 3
    Reserve Bank of India
    Correct
    Wrong
  • 4
    Ministry of Finance
    Correct
    Wrong
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Answer : 3. "Reserve Bank of India"

Q:

What will happen if labour productivity is increased?

471 0

  • 1
    Balanced cash wage will decrease
    Correct
    Wrong
  • 2
    Competitive firms will be forced to invest more
    Correct
    Wrong
  • 3
    Labour demand curve will shift towards right
    Correct
    Wrong
  • 4
    None of the above.
    Correct
    Wrong
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Answer : 3. "Labour demand curve will shift towards right"
Explanation :

Explanation:- If there is low marginal labour production, then after giving wages there will be profit from marginal labourer. Ultimately, demand of labour will increase and labour demand curve will shift towards right.

Q:

Assume that the exchange rate between the US Dollar and the Indian Rupee is $1 = ₹55. Now if this exchange rate increases to $1 = ₹60, then in this situation the Indian Rupee has depreciated against the US Dollar.

471 0

  • 1
    depreciated
    Correct
    Wrong
  • 2
    appreciated
    Correct
    Wrong
  • 3
    appreciated
    Correct
    Wrong
  • 4
    overvalued
    Correct
    Wrong
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Answer : 1. "depreciated"
Explanation :

मान लीजिए कि अमेरिकी डॉलर और भारतीय रुपये के बीच विनिमय दर $1= ₹55 है। अब यदि यह विनिमय दर बढ़कर $1 = ₹60 हो जाती है, तो इस स्थिति में अमेरिकी डॉलर की तुलना में भारतीय रुपये का _______ हुआ है।

Q:

With which of the following sectors is the agency short-named as CIBIL associated

470 0

  • 1
    Insurance sector
    Correct
    Wrong
  • 2
    Automobile sector
    Correct
    Wrong
  • 3
    Banking sector
    Correct
    Wrong
  • 4
    Sugar sector
    Correct
    Wrong
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Answer : 3. "Banking sector"
Explanation :

The full name of CIBIL is Credit Information Bureau India Limited. It is a credit information company, which maintains records of all credit related activities of individuals and organizations. Banks, non-banking finance companies and other financial institutions submit customer credit information to the bureaus.

Q:

What is the total stock of money in circulation among the public at a particular point of time called? 

467 0

  • 1
    Money order
    Correct
    Wrong
  • 2
    Money supply
    Correct
    Wrong
  • 3
    Short money
    Correct
    Wrong
  • 4
    Money laundering
    Correct
    Wrong
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Answer : 2. "Money supply "

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