McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: General Knowledge (GK) , Union Public Service Commission (UPSC) .
| 601. |
The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs - |
| A. | J.M.Keynes |
| B. | Ohlin |
| C. | J. B. Say |
| D. | Galbraith |
| Answer» C. J. B. Say | |
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Explanation: The classical economists' belief in full employment as a normal condition of a free market economy is based on Say's Law of Markets. It was on the basis of this law that the classical economists thought that general over- production and hence general unemployment were impossible. The law simply states "supply creates its own demand." |
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| 602. |
Liquidity Preference means - |
| A. | holding assets in the form of bonds and shares |
| B. | holding assets in the form of cash |
| C. | creation of immovable property |
| D. | assets in the form of jewellery |
| Answer» B. holding assets in the form of cash | |
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Explanation: Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936). It is the desire to hold money rather than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation. |
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| 603. |
Aggregate net value of the output in one year is the - |
| A. | National income at factor cost |
| B. | Gross Domestic Product at market prices |
| C. | Net. National Product at market prices |
| D. | Gross National Product at market prices |
| Answer» C. Net. National Product at market prices | |
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Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in one year of a country. If we subtract the depreciation charges from the gross national product, we get net national product at market price, Net national product at market price=Gross national product at market price- Depreciation. |
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| 604. |
The sum total of incomes received for the services of labour, land or capital in a country is called |
| A. | Gross domestic product |
| B. | National income |
| C. | Gross domestic income |
| D. | Gross national income |
| Answer» C. Gross domestic income | |
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Explanation: The Gross Domestic Income (GDI) is the total in-come received by all sectors of an economy within a nation. It includes the sum of all wages, profits, and taxes, minus subsidies. Since all income is derived from production (including the production of services), the gross domestic income of a count should exactly equal its gross domestic product (GDP). |
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| 605. |
Which of the following results by dividing national income by size of population? |
| A. | Per capita income |
| B. | Subsistence level |
| C. | Subsistence expenditure- |
| D. | Per capita production |
| Answer» A. Per capita income | |
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Explanation: Per capita income or average income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. |
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| 606. |
The first computer made available for commercial use was - |
| A. | MANIAC |
| B. | ENIAC |
| C. | UNIVAC |
| D. | EDSAC |
| Answer» C. UNIVAC | |
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Explanation: The UNIVAC computer was the first commercially available computer invented by John Presper Eckert and John Mauchly. As well as being the first American commercial computer, the UNIVAC I was the first American computer designed at the outset for business and administrative use (i.e., for the fast execution of large numbers of relatively simple arithmetic and data transport operations, as opposed to the complex numerical calculations required by scientific computers). As such the UNIVAC competed directly against punch-card machines (mainly made by IBM). |
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| 607. |
Malthusian theory of population explored the relationship between - |
| A. | food supply and technology |
| B. | food supply and population growth |
| C. | population growth and development |
| D. | optimum growth and resources |
| Answer» B. food supply and population growth | |
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Explanation: According to Malthusian theory of population, population increases in a geometrical ratio, whereas food supply increases in an arithmetic ratio. This disharmony would lead to widespread poverty and starvation, which would only be checked by natural occurrences such as disease, high infant mortality, famine, war or moral restraint. |
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| 608. |
In public budgets, zero-base budgeting was first introduced in - |
| A. | USA |
| B. | UK |
| C. | France |
| D. | Sweden |
| Answer» A. USA | |
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Explanation: Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting. This technique of budgeting was developed by Peter Phyrr in the United States and was first implemented at Texas Instruments in the 1960s. In 1973. President Jimmy Carter contracted with Phyrr to implement a ZBB system for the State of Georgia executive budget process. |
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| 609. |
The sale proceeds of Government Bonds come under the budget head of - |
| A. | Revenue Receipts |
| B. | Current Expenditure |
| C. | Capital Outlay |
| D. | Capital Receipts |
| Answer» D. Capital Receipts | |
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Explanation: Capital receipts are the funds received into the businesses that are not part of the operating activities of the establishment. Capital receipts primarily include external assistance, market loans, small savings, principal investment in bonds, and Government provident funds. A capital receipt is a receipt which is derived from sale or purchase of capital assets like plant and machinery, furniture, investment (long term) etc., which shall not be occurring all the time. |
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| 610. |
The incidence of sales tax falls on - |
| A. | Consumers |
| B. | Wholesale dealers |
| C. | Retail dealers |
| D. | Producers |
| Answer» A. Consumers | |
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Explanation: In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall" upon the group that ultimately bears the burden of, or ultimately has to pay the tax. The key concept is that the tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply. |
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| 611. |
Government securities are considered liquid because they are - |
| A. | backed by the Government treasury |
| B. | convertible into other types of saving deposits |
| C. | quickly and easily marketable |
| D. | stable in value |
| Answer» C. quickly and easily marketable | |
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Explanation: Liquid Asset is an asset that can be converted into cash quickly and with minimal impact to the price received. In a liquid market, assets can be easily converted without considerable price fluctuation, and with a minimal decline in worth. A liquid market is a type of market that possesses a high level of stability, and low spreads between asking and selling prices. Securities issued by the Government are considered risk-free, and as such, their yields are often used as the benchmarks for fixed- income securities with the same maturities. The government securities market constitutes a key segment of the financial market, heavily traded offering virtually credit risk-free highly liquid financial instruments, which market participants are more willing to transact and take positions. |
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| 612. |
Deflation is a situation in which - |
| A. | The value of money is falling. |
| B. | The price of goods is increasing. |
| C. | The value of money is increasing. |
| D. | The price level is stagnant. |
| Answer» C. The value of money is increasing. | |
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Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy. |
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| 613. |
Stagflation refers to a situation which is characterized by - |
| A. | stagnant employment and deflation |
| B. | deflation and rising unemployment |
| C. | inflation and rising employment. |
| D. | inflation and rising unemployment |
| Answer» D. inflation and rising unemployment | |
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Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. It raises a dilemma for economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa. |
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| 614. |
How will a reduction in 'Bank Rate' affect the availability of credit? |
| A. | Credit will increase |
| B. | Credit will not increase |
| C. | Credit will decrease |
| D. | None of these |
| Answer» A. Credit will increase | |
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Explanation: Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances to a commercial bank. Whenever the banks have any shortage of funds they can borrow it from the central bank. Repo (Repurchase) rate is the rate at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from the central bank becomes more expensive. It is more applicable when there is a liquidity crunch in the market. |
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| 615. |
Inflation occurs when aggregate supply is - |
| A. | more than aggregate demand |
| B. | less than aggregate demand |
| C. | equal to aggregate demand |
| D. | None of these |
| Answer» B. less than aggregate demand | |
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Explanation: If the supply is less than the demand, the price will increase. Inflation, the persistent increase in the average price level, can be caused by an increase in aggregate demand or a decrease in aggregate supply. This suggests two basics sources, causes, or types of inflation—demand-pull inflation and costpush inflation. In general, prices increase as a result of market shortages, which occur when quantity demanded exceeds quantity supplied. Market shortages can be created by either increases in demand or decreases in supply. Translating thisto the macro-economy suggests that inflation occurs when aggregate demand exceeds aggregate supply. |
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| 616. |
Multinational Corporation is also called - |
| A. | Trading Corporation |
| B. | International Corporation |
| C. | Finance Corporation |
| D. | Trans-national Corporation |
| Answer» D. Trans-national Corporation | |
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Explanation: A Multinational corporation, also known as Trans-national Corporation or International corporation, is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. They play an important role in globalization. |
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| 617. |
Freeing the economy from all unnecessary controls and regulations is referred to as - |
| A. | Freedom |
| B. | Privatisation |
| C. | Liberalisation |
| D. | Globalisation |
| Answer» C. Liberalisation | |
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Explanation: Economic liberalization is a very broad term that usually refers to fewer government regulations and restrictions in the economy in exchange for greater participation of private entities; the doctrine is associated with classical liberalism. The arguments for economic liberalization include greater efficiency and effectiveness that would translate to a "bigger pie" for everybody. Thus, liberalization in short refers to "the removal of controls", to encourage economic development. |
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| 618. |
A high Statutory Liquidity Ratio (SLR) |
| A. | restricts lending |
| B. | increases supply of cash |
| C. | provides funds to the state |
| D. | increases the strength of the banks |
| Answer» A. restricts lending | |
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Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require tomaintain in the form gold or government approved securities before providing credit to the customers. An increase in SLR practically restricts lending, thus controlling credit in the country. In India, the RBI can increase the Statutory Liquidity Ratio to contain inflation, suck liquidity in the market, to tighten the measure to safeguard the customers' money. |
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| 619. |
Corporation tax is a tax imposed on - |
| A. | the net incomes of the companies |
| B. | the corporate properties |
| C. | the utilities provided by the corporation |
| D. | tax imposed by the corporation on individual properties |
| Answer» A. the net incomes of the companies | |
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Explanation: Corporate Tax is a levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are taxes against profits earned by businesses during a given taxable period. Most countries tax all corporations doing business in the country on income from that country. |
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| 620. |
Which one of the following taxes is collected and utilized by the State Governments? |
| A. | Personal income tax |
| B. | Corporation tax |
| C. | Land revenue |
| D. | Custom duties |
| Answer» C. Land revenue | |
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Explanation: The Constitution allocates the taxation of agricultural income to states. Lan revenue is a major source of revenue for states in India. For purpose of revenue management, a State is divided into various districts, each in the charge of a Deputy Commissioner, also known as Collector indicating his responsibility for the realization of all Government revenues. |
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| 621. |
Which amidst the following is not a credit rating agency? |
| A. | CRISIL |
| B. | CARE |
| C. | ICRA |
| D. | IFCI |
| Answer» D. IFCI | |
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Explanation: A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. In some cases, the servicers of the underlying debt are also given ratings. CRISIL is the most influential and largest credit rating agency among all the credit rating agencies in India. ICRA Limited (ICRA) is one of lndia's premier financial information services company. It offers credit rating information and professional financial consulting services across India, as well as in the Asia-Pacific region through its subsidiaries. |
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| 622. |
The basis of determining dearness allowance to employees in India is - |
| A. | National Income |
| B. | Consumer Price Index |
| C. | Standard of Living |
| D. | Inflation Rate |
| Answer» B. Consumer Price Index | |
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Explanation: The Consumer Price Index Numbers for Industrial Workers CPI (1W) is utilized for fixation and revision of wages and determination of variable Dearness Allowances payable to workers in organized sectors of the economy. Despite the coverage being limited to Industrial Workers, presently, the CPI (IW) is also utilized as an indicator for measuring inflationary trend in the country and for policy formulations. |
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| 623. |
An indifference curve measures the same level of - |
| A. | Output from two factors |
| B. | Satisfaction from two commodities |
| C. | Satisfaction from Income and Capital |
| D. | Satisfaction from expenditure and savings |
| Answer» B. Satisfaction from two commodities | |
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Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent to any of the combination he consumes. If a consumer equally prefers two product bundles, then the consumer is indifferent between the two bundles. The consumer gets the same level of satisfaction (utility) from either bundle. In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer |
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| 624. |
The Ability Principle of Taxation is given by - |
| A. | Adam Smith |
| B. | Edgeworth |
| C. | Joan Robinson |
| D. | J.S.Mill |
| Answer» A. Adam Smith | |
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Explanation: The 'Ability-to-Pay' principle of Taxation is one of the canons of taxation proposed by Adam Smith in his 'Wealth of Nations.’ It is a progressive taxation principle that maintains that taxes should be levied according a taxpayer's ability to pay. It is concerned with the equitable distribution of taxes according to the stated taxable capacity or ability to pay of an individual or group. The emphasis in this approach is put on redistribution of income. |
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| 625. |
'Galloping Inflation' is also known as - |
| A. | Walking Inflation |
| B. | Running Inflation |
| C. | Hyper Inflation |
| D. | Creeping Inflation |
| Answer» C. Hyper Inflation | |
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Explanation: When prices rise between 20% to 100% per annum or even more, it is called galloping or hyperinflation. Such a situation brings a total collapse of the monetary system because of the continuous fall in the purchasing power of money. Galloping inflation has adverse effect on middle and low income groups in the society. |
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| 626. |
Which of the following is not an investment expenditure in goods and services? |
| A. | Expansion of the main plant of a company |
| B. | Purchase of a house |
| C. | Purchase of machinery |
| D. | An increase in business in ventories |
| Answer» B. Purchase of a house | |
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Explanation: Investment expenditure refers to the expenditure incurred either by an Individual or a firm or the government for the creation of new capital assets like machinery, building etc. Business inventories are goods that firms produce in one time period with the intent to sell later and they are counted as part of businessinvestment. The purchase of house cannot be considered as investment expenditure as it may be for personal use. |
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| 627. |
Which one of following represents the Savings of the Private Corporate Sector? |
| A. | Dividends paid to shareholders |
| B. | Total profits of a company |
| C. | Undistributed profits |
| D. | Excess of income over expenditure |
| Answer» C. Undistributed profits | |
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Explanation: For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as its Net Saving. Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts, government and to shareholders. |
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| 628. |
Net National Product in National Income Accounting refers to - |
| A. | Gross Domestic Product—Depreciation |
| B. | Gross Domestic Product + Subsidies |
| C. | Gross National Product—Depreciation |
| D. | Gross National Product + Subsidies |
| Answer» C. Gross National Product—Depreciation | |
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Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in one year of a country. If we subtract the depreciation charges from the gross national product, we get net national product at market price. |
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| 629. |
A very high rise in National Income at current market prices and a low rise at constant prices reveals - |
| A. | the high rate of growth in the economy at the current period |
| B. | the increased production in the current period |
| C. | the improper growth of the economy |
| D. | the high rate of inflation prevailing in the economy |
| Answer» C. the improper growth of the economy | |
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Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the otherhand if the national output is multiplied by the base price if called national income at constant price. But what is seen is that prices of commodities go on changing. When the current outputs are multiplied by the current prices it will give rise to monetary national income. So a very rise in National Income at current or constant prices does not indicate increase in product or output, but is rather due to the rise in price level. |
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| 630. |
In calculating National Income which of the following is included? |
| A. | Services of housewives |
| B. | Pensions |
| C. | Income of smugglers |
| D. | Income of watchmen |
| Answer» D. Income of watchmen | |
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Explanation: National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. Normally this period consists of one year duration, as a year is neither too short nor long a period. National product is usually used synonymous with National income. |
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| 631. |
The term 'Green GNP' emphasises - |
| A. | rapid growth of GNP |
| B. | increase in per capita income |
| C. | economic development |
| D. | sustainable development |
| Answer» D. sustainable development | |
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Explanation: The gross national product (GNP) measures the welfare of a nation's economy through the aggregate of products and services produced in that nation, Although GNP is a proficient measurement of the magnitude of the economy, many economists, environmentalists and citizens have been arguing the validity of the GNP in respect to measuring welfare. They are calling for a green national product that would indicate if activities benefit or harm the economy and well-being. |
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| 632. |
The Great Depression occurred during |
| A. | 1914-18 |
| B. | 1929-34 |
| C. | 1939-45 |
| D. | 1922-26 |
| Answer» B. 1929-34 | |
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Explanation: Depression is referred to a period of time during which economic activity is so low for such a long period of time that large numbers of people are permanently unemployed. The great Depression originated in the United States, after the fall in stock prices that began around September 4, 1929 and became world-wide news with the stock market crash of October 29, 1929 (known as Black Tuesday). |
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| 633. |
The worldwide Great Depression took place in - |
| A. | 1936 |
| B. | 1929 |
| C. | 1928 |
| D. | 1930 |
| Answer» B. 1929 | |
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Explanation: Depression is referred to a period of time during which economic activity is so low for such a long period of time that large numbers of people are permanently unemployed. The great Depression originated in the United States, after the fall in stock prices that began around September 4, 1929 and became world-wide news with the stock market crash of October 29, 1929 (known as Black Tuesday). |
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| 634. |
Paraellel economy emerges due to - |
| A. | Tax Avoidance |
| B. | Tax Evasion |
| C. | Tax Compliance |
| D. | Tax Estimation |
| Answer» B. Tax Evasion | |
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Explanation: Parallel economy (black economy) indicates the functioning of an unsanctioned sector in the economy whose objectives run parallel with the social objectives. Major contributory factor to such an economy is black money which is any money that a person or an organization acquires as by a means that involves tax evasion. It is that income from illegal activities that is not reported to the government for tax purposes. |
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| 635. |
Under-writting refers to - |
| A. | under estimation |
| B. | under selling |
| C. | winding up the business |
| D. | an act of insuring risk |
| Answer» D. an act of insuring risk | |
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Explanation: The word "underwriter" is said to have come from the practice of having each risk- taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment. |
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| 636. |
Basic infrastructure facilities in Economics are known as : |
| A. | Human capital |
| B. | Physical capital |
| C. | Social overheads capital |
| D. | Working capital |
| Answer» C. Social overheads capital | |
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Explanation: Social overheads capital is the capital spent on social infrastructure, such as schools, universities, hospitals, libraries. They are capital goods of types which are available to anybody, hence social; and are not tightly linked to any particular part of production, hence overhead. Because of their broad availability they often have to be provided by the government. Examples of social overhead capital include roads, schools, hospitals, and public parks. |
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| 637. |
Which one of the following is a direct tax? |
| A. | Sales Tax |
| B. | Excise Tax |
| C. | Wealth Tax |
| D. | Entertainment Tax |
| Answer» C. Wealth Tax | |
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Explanation: Direct tax is a tax levied directly on the person or company that has to pay it. These taxes are paid directly to the tax authority. |
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| 638. |
Custom duty is an instrument of - |
| A. | Monetary Policy |
| B. | Foreign Trade Policy |
| C. | Industrial Policy |
| D. | Fiscal Policy |
| Answer» B. Foreign Trade Policy | |
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Explanation: Custom duty is a tax on imports imposed on an ad valorem basis, i.e, fixed in the form of a percentage on the value of the commodity imported. |
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| 639. |
Whe a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called - |
| A. | Transfer of Capital |
| B. | Escape of Capital |
| C. | Outflow of Capital |
| D. | Flight of Capital |
| Answer» D. Flight of Capital | |
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Explanation: Flight of capital refers to the movement of money from one investment to another in search of greater stability or increased returns. Sometimes, it specifically refers to the movement of money from investments in one country to another in order to avoid country- specific risk (such as high inflation or political turmoil) or in search of higher returns. Capital flight is seen most commonly in massive foreign capital outflows from a specific country, often at times of currency instability. |
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| 640. |
'Golden Handshake Scheme' is associated with - |
| A. | inviting foreign companies |
| B. | private investment in public enterprises |
| C. | establishing joint enterprises |
| D. | voluntary retirement |
| Answer» D. voluntary retirement | |
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Explanation: The voluntary retirement scheme (VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. It is a technique used by companiesfor trimming the workforce employed in the industrial unit. It is also known as 'Golden Handshake' as it is the golden route to retrenchment. |
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| 641. |
The major objective of monetary policy is to - |
| A. | increase government's tax revenue |
| B. | revamp the Public Distribution System |
| C. | Promote economic growth with price stability |
| D. | weed out corruption in the economy |
| Answer» C. Promote economic growth with price stability | |
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Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general economic growth. Further goals of a monetary policy are usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies. |
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| 642. |
The rate of tax increase as the amount of the Lax base Increases is called- |
| A. | Proportional tax |
| B. | Progressive tax |
| C. | Regressive tax |
| D. | Degressive tax |
| Answer» B. Progressive tax | |
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Explanation: A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term "progressive" refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate |
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| 643. |
During periods of inflation, tax rates should - |
| A. | increase |
| B. | decrease |
| C. | remain constant |
| D. | fluctuate |
| Answer» A. increase | |
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Explanation: In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. In other words, inflation means continuously decrease in the value of money due to excess supply ofmoney in the market. There are two types of inflation demand pull and cost push inflation. Causes behind inflation are reduced taxes, rate de-crease in saving, increase in supply of goods, increase in the number of producers in the market. To control inflation there should be an increase in the tax rate and increase in the interest rate. |
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| 644. |
Cheap Money means - |
| A. | Low Rate of Interest |
| B. | Low level of Savings |
| C. | Low level Income |
| D. | Excess of Black Money |
| Answer» A. Low Rate of Interest | |
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Explanation: Cheap Money' is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money is good for borrowers, but bad for investors, who will see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds. |
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| 645. |
Which among (he following is not the outcome of decrease in prime lending rate? |
| A. | to raise the bank loan |
| B. | decline in saving rate |
| C. | decline in productivity |
| D. | increased demand of consumer products |
| Answer» C. decline in productivity | |
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Explanation: Prime rate or prime lending rate is a term applied in many countries to a reference interest rate used by banks. The term originally indicated the rate of interest at which banks lent to favored customers, i.e., those with high credibility. When these rates are high, demand decreases and output falls to meet the new lower demand. Less output requires fewer worker, driving unemployment higher. |
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| 646. |
The major aim of devaluation is to - |
| A. | encourage imports |
| B. | encourage exports |
| C. | encourage both exports and imports |
| D. | discourage both exports and imports |
| Answer» B. encourage exports | |
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Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or othermonetary units with which that currency can be exchanged. 'Devaluation' means official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. There are two implications for a currency devaluation. First, devaluation makes a country's exports relatively less expensive for foreigners and second, it makes foreign products relatively more expensive for domestic consumers, discouraging imports. As a result, this may help to reduce a country's trade deficit. |
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| 647. |
Buffer stock operations are conducted by - |
| A. | Warehousing Corporation of India |
| B. | State Trading Corporation of India |
| C. | Food Corporation of India |
| D. | Ministry of Agriculture |
| Answer» C. Food Corporation of India | |
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Explanation: 0 |
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| 648. |
Coal mines were Nationalized in the year : |
| A. | 1970 |
| B. | 1971 |
| C. | 1972 |
| D. | 1976 |
| Answer» C. 1972 | |
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Explanation: The Coal Conservation and Development Act, 1974 provides for imposition of excise duty on coal despatches for meeting activities like conservation of coal, development of coal mines execution of stowing and other operations for the safety in coal mines and research work connected with conservation and utilisation of coal, and assistance in mining operation. The Coking Coal (Nationalisation) Act was enacted in 1972. |
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| 649. |
Open market operations of RBI refer to buying and selling of - |
| A. | Commercial bills |
| B. | Foreign exchange |
| C. | Gold |
| D. | Government bonds |
| Answer» D. Government bonds | |
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Explanation: OMOs are the market operations conducted by the Reserve Bank of India by wayof sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis. When the RBI feels there is excess liquidity in the market. it resorts to sale of securities thereby sucking out the rupee liquidity. Similarly, when the liquidity conditions are tight, the RBI will buy securities from the market, thereby releasing liquidity into the market. |
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| 650. |
A siuation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as - |
| A. | Absolute Poverty |
| B. | Relative Poverty |
| C. | Urban Poverty |
| D. | Rural Poverty |
| Answer» A. Absolute Poverty | |
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Explanation: Absolute poverty is defined as a situation in which the individual's basic needs are not covered, in other words, there is a lack of basic goods and services (normally related to food, housing and clothes). This concept of poverty is strongly linked to destitution which is an inability to meet the minimum consumption expenditure. It is a level of poverty as defined in terms of the minimal requirements necessary to afford minimal standards of food, clothing, health care and shelter. According to a UN declaration that resulted from the World Summit on Social Development in Copenhagen in 1995, absolute poverty is "a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services." |
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