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) .
| 651. |
Of the following land uses, which is restricted to Special Economic Zones ? |
| A. | Educational Institutions |
| B. | Free trade Centres |
| C. | Marketing Centres |
| D. | Information Technology Companies |
| Answer» B. Free trade Centres | |
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Explanation: The category Special economic zone includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprisezones. The goal of a SEZ structure is to increase foreign direct investment by foreign investors. |
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| 652. |
As er the TRIPS Agreement-1994, a good originating from a region with specific character/ quality/reputation is covered/to be protected under the IPR as - |
| A. | Patent |
| B. | Trademark |
| C. | Trade secret |
| D. | GI (Geographical Indicator) |
| Answer» D. GI (Geographical Indicator) | |
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Explanation: Geographical Indication (GI) means the name of a region or a locality, a specific place or, in exceptional cases, a country, used to describe a product originating in that region, locality, specific place or country, which possesses a specific quality, reputation or other characteristics attributable to that geographical origin, and the production and/or processing and/or preparation of which take place in the defined geographical area. |
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| 653. |
At present, India is following - |
| A. | Fixed exchange rate |
| B. | Floating exchange rate |
| C. | Pegged up exchange rate |
| D. | Pegged down exchange rate |
| Answer» B. Floating exchange rate | |
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Explanation: Exchange rate can be defined as the value of one currency in terms of another. India follows floating exchange rate system for the determination of the exchange rate. Floating exchange rate system can be defined as a system where the exchange rate between currencies are not fixed but they keep fluctuating, as they are determined by the demand and supply for the domestic currency in the international market. India has been operating on a managed floating exchange rate regime from March 1993, marking the start of an era of a market determined exchange rate regime of the rupee with provision for timely intervention by the central bank |
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| 654. |
Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states? |
| A. | Expenditure Tax and Gift Tax |
| B. | Additional Duties of Excise in lieu of Sales Tax |
| C. | Stamps and Registration |
| D. | Taxes on Advertisement |
| Answer» D. Taxes on Advertisement | |
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Explanation: Apart from taxes levied and collected by the States, the Constitution has provided for the revenues for certain taxes on the Union List to be allotted, partly or wholly to the States. There are taxes which are levied and collected by the Union, but the entire proceeds of which are assigned to the states, in proportion determined by the Parliament. These taxes include: Succession and Estate duty; Terminal Taxes on goods and passengers; Taxes on railway freight and fares; Taxes on transactions in stock exchanges and future markets; and Taxes on sale and purchase of newspapers and advertisements therein. |
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| 655. |
With which form of economy is the term 'Laissez-faire' associated? |
| A. | Capitalist economy |
| B. | Socialist economy |
| C. | Mixed economy |
| D. | Command economy |
| Answer» A. Capitalist economy | |
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Explanation: In economics, laissez-faire means allowing industry to be free of state intervention, especially restrictions in the form of tariffs and government monopolies. The growth of industry in England in the early 19th century and American industrial growth in the late 19th century both occurred in a laissezfaire capitalist environment. |
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| 656. |
National Social Assistance Programme is aimed at providing - |
| A. | financial support to Scheduled Castes and Scheduled Tribes |
| B. | old age pension to very poor |
| C. | insurance for the poor |
| D. | All of the above |
| Answer» B. old age pension to very poor | |
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Explanation: The National Social Assistance Scheme (NSAS) or National Social Assistance Programme (NSAP) is a flagship welfare programme of the Government of India initiatedon 15 August. 1995. It provides a pension for the elderly who live below the poverty line. Article 41 of the Indian Constitution directs the State to provide public assistance to its citizens in case of unemployment, old age, sickness and disablement and in other cases of undeserved want within the limit of its economic capacity and development. |
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| 657. |
Which of the following is a part of tertiary sector? |
| A. | Power and transportation |
| B. | Animal Husbandry |
| C. | Cotton manufacturing |
| D. | Cultivation of crops |
| Answer» A. Power and transportation | |
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Explanation: The service sector, also called the tertiary sector. is one of the three parts of the economy in the Threesector hypothesis. It involves the provision of services to business as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to consumers as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment. |
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| 658. |
If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - |
| A. | 24 |
| B. | 18 |
| C. | 36 |
| D. | 60 |
| Answer» C. 36 | |
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Explanation: The standard method of calculating average variable cost is to divide total variable cost by the quantity, illustrated by this equation : Average Variable Cost = Total Variable Cost/ Quantity of Output An alternative specification for average variable cost is found by subtracting average fixed cost from average total cost Average Variable Cost = Average Total Cost - Average Fixed CostAccording to question, Average Total Cost = 45000/2500 = 18 So Average Variable Cost = 54 - 18= 36 |
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| 659. |
If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? |
| A. | 20000 |
| B. | 10000 |
| C. | 15000 |
| D. | 12000 |
| Answer» A. 20000 | |
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Explanation: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment. It is given by the formula: BEQ = FC / (P-VC) Where BEQ = Break-even quantity FC = Total fixed costs P = Average price per unit, and VC = Variable costs per unit, According to the question, Price per unit = 30/12 = Rs. 2.5 So 20000/ (2.5-1.5) = 20000/1= Rs. 20,000 |
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| 660. |
Equilibrium price in the market is determined by the - |
| A. | equality between marginal cost and average cost. |
| B. | equality between total cost and total revenue. |
| C. | equality between average cost and average revenue. |
| D. | equality between marginal cost and marginal revenue. |
| Answer» D. equality between marginal cost and marginal revenue. | |
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Explanation: The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the point at which the demand and supply curves in the market intersect. Both under perfect competition and monopolisticcompetition, the firm is in equilibrium at the point of equality of marginal cost and marginal revenue. (MC = MR). |
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| 661. |
Internal economies - |
| A. | arise when there is expansion in an industry. |
| B. | arise in an economy as it makes progress. |
| C. | accrue to a firm when it expands its output. |
| D. | arise when there is expansion in internal trade. |
| Answer» A. arise when there is expansion in an industry. | |
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Explanation: Internal economies are those economies in production—those reductions in production costs—which accrue to the firm itself when it expands its output or enlarges its scale of production. The internal economies arise within a firm as a result of its own expansion independent of the size and expansion of the industry as a whole. |
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| 662. |
One of the features of a free market economy is - |
| A. | active state intervention |
| B. | public ownership of factors of production |
| C. | rationing and price control |
| D. | consumer's sovereignty |
| Answer» D. consumer's sovereignty | |
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Explanation: Consumer Sovereignty is one of the features of a free market economy. It refers to the assertion consumer preferences determine the production of goods and services. In a free market system, market performance is in fact responsive to the specific wants of the consumers within the system. |
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| 663. |
Which of the following costs is related to marginal cost? |
| A. | Variable Cost |
| B. | Implicit Cost |
| C. | Prime Cost |
| D. | Fixed Cost |
| Answer» A. Variable Cost | |
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Explanation: In economics, marginal cost is the change in the total cost that arises when the quantity produced is Incremented by one unit. That is, it is the cost of producing one more unit of a good. Marginal cost is independent of the fixed cost and depends on the changes in thevariable factors. Since fixed costs do not change with output, there are no marginal fixed costs when output is increased in the short run. It is only the variable costs that vary with output in the short run. |
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| 664. |
Which one of the following is not a dimension of human development, index? |
| A. | Life expectancy |
| B. | Knowledge |
| C. | Social status |
| D. | Standard of living |
| Answer» C. Social status | |
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Explanation: Social Status is not a dimension of Human Development Index |
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| 665. |
Transfer payments mean - |
| A. | Old age pensions |
| B. | Unemployment compensations |
| C. | Social security payments |
| D. | All the above |
| Answer» D. All the above | |
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Explanation: Transfer payment refers to a payment made by a public authority other than one made in exchange for goods or service produced. Transfer payments are not part of the national income. Examples include Old age pensions, unemployment compensations, social security payments and child benefit. |
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| 666. |
In accounting terms, what constitutes the 'closing stock'? |
| A. | Net Investment |
| B. | Gross Investment-Capital Losses |
| C. | Opening Stock-Capital Losses |
| D. | Opening Stock + Net Investment - Capital Losses |
| Answer» D. Opening Stock + Net Investment - Capital Losses | |
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Explanation: Closing stock refers to the goods remaining un-sold during the year. It includes finished products, raw materials, or work in progress and is deducted from the period's costs in the balance sheets. The amount of closing stock (properly valued) is used to arrive at the cost of goods sold in a periodic inventory system with the following calculation: Opening stock + Purchases - Closing stock = Cost of goods sold. |
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| 667. |
National income accounting is the study of the income and expenditure of the entire - |
| A. | family |
| B. | state |
| C. | economy |
| D. | organisation |
| Answer» C. economy | |
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Explanation: National Income Accounting is a set of principles and methods used to measure the income and production of a country. There are basically two ways of measuring national economic activity: as the money value of the total production of goods and services during a given period (usually a year) or as the total of incomes derived from economic activity after allowance has been made for capital consumption. |
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| 668. |
In a business, raw materials, components, work in progress and finished goods are jointly regarded as - |
| A. | capital stock |
| B. | inventory |
| C. | investment |
| D. | net worth |
| Answer» B. inventory | |
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Explanation: Inventory refers to raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale. Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners. |
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| 669. |
The gradation and standardization of agricultural products are conducted through |
| A. | Food Corporation of India |
| B. | Directorate of Marketing and Inspection |
| C. | Indian Standards Institution |
| D. | Central Statistical Organization |
| Answer» B. Directorate of Marketing and Inspection | |
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Explanation: The Directorate of Marketing and Inspection (DMI) is an attached Office of the Ministry of Agriculture. It was set up in the year1935 to implement the agricultural marketing policies and programmes of the Central Government. It aims at bringing integrated development of marketing of agricultural and allied produce in the country. It is entrusted with promotion of standardization and grading of agricultural and allied produce. |
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| 670. |
According to the Employment Outlook 2007 reports of the Organisation for Economic Cooeration and Development (OECD), the number of new jobs created in India every year from 2000 to 2005 is - |
| A. | 5 million |
| B. | 8 million |
| C. | 11 million |
| D. | 13 million |
| Answer» C. 11 million | |
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Explanation: Over the period 2000-05, India generated 11.3 million net new jobs per year, on average. The figure was 7 million in China, 2.7 million in Brazil and 0.7 million jobs hi the Russian Federation, compared with an average of 3.7 million net new jobs generated in the OECD area as a whole each year over the same period. |
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| 671. |
"Marginal Cost" equals - |
| A. | total cost minus total benefit for the last unit produced |
| B. | total cost divided by total benefit for the last unit produced |
| C. | total cost divided by quantity |
| D. | the change in total cost divided by the change in quantity |
| Answer» D. the change in total cost divided by the change in quantity | |
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Explanation: Marginal cost is the change in the total cost that arises when the quantity produced has an increment by unity. That is, it is the cost of producing one more unit of a good. To illustrate marginal cost let's assume that the total cost of producing 10,000 units is Rs.50,000. If we produce a total of 10,001 units the total cost is Rs.50,002. That would mean the marginal cost—the cost of producing the next unit— was Rs.2. |
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| 672. |
A low interest policy is also known as – |
| A. | cheap money policy |
| B. | income generating |
| C. | dear money policy |
| D. | investment policy |
| Answer» A. cheap money policy | |
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Explanation: Cheap money policy involves loan or credit with a low interest rate, or the setting of low interest rates by the central bank of the country. Cheap money is good for borrowers, but bad for investors. Cheap money policy was one of the primary catalysts of the 2008 recession. |
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| 673. |
Economics classifies the manmade instrument of production as: |
| A. | Organization |
| B. | Capital |
| C. | equipment |
| D. | labour |
| Answer» B. Capital | |
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Explanation: Some economists have classified factors into two categories, land and labour (or nature and man) on the ground that they are the only original or primary factors. It is said that capital has no independent origin and is merely the outcome of combined efforts of land and labour. However, other economists include all man-made instruments for production in the category of Capital. |
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| 674. |
A demand curve will not shift: |
| A. | When only income changes |
| B. | When only prices of substitute products change |
| C. | When there is a change in advertisement expenditure |
| D. | When only price of the commodity changes |
| Answer» D. When only price of the commodity changes | |
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Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. A change in price of the commodity leads to a movement along the demand curve without shifting it. In simple words, the increase of decrease in price of a commodity only causes contraction or extension of demand (increase causes contraction while decrease cause extension). Increase or decrease in demand only occurs only when there is achange in other determinants of demand, other than price of the commodity. |
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| 675. |
Which law states that with constant taste and preferences, the proportion of income spend on food stuff diminishes as income increases? |
| A. | Say's Law |
| B. | Griffin's Law |
| C. | Gresham's Law |
| D. | Engel's Law |
| Answer» D. Engel's Law | |
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Explanation: According to Engel's Law, as disposable income of a consumer increases, the percentage of income spent for food decreases if all other factors remain constant. This happens even when the actual expenditure on food rises. The income elasticity of demand of food is less than 1. A lower Engel coefficient indicates a higher standard of living. |
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| 676. |
Extreme forms of markets are - |
| A. | Perfect competition; Oligopoly |
| B. | Oligopoly; Monopoly |
| C. | Perfect competition; Monopoly |
| D. | Perfect competition; Monopolistic competition |
| Answer» C. Perfect competition; Monopoly | |
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Explanation: There are two extreme forms of market structure: monopoly and, its opposite, perfect competition. Perfect competition is characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. A monopoly is a market structure in which there is only one producer/ seller for a product. |
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| 677. |
National Income include : |
| A. | Financial help to earthquake victims |
| B. | Pocket money of a child |
| C. | Winning of a lottery prize |
| D. | Construction of a new house |
| Answer» D. Construction of a new house | |
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Explanation: National income is the total value a country's final output of all new goods and services produced in one year. So construction of a new house is certainly output of goods.Transfer payments are not a part of the national income. So private sector transfers including charitable donations and prizes to lottery winners are excluded from it. |
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| 678. |
Value of out put and value added can be distinguished if we know: |
| A. | the value of intermediate consumption |
| B. | the value of net indirect taxes |
| C. | the value of the sales |
| D. | the value of consumption of fixed capital |
| Answer» A. the value of intermediate consumption | |
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Explanation: Intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises. including raw materials, services and various other operating expenses. Inter-mediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net out-put by sector of activity. Because this value must be subtracted from Gross Output to arrive at GDP, how it is exactly defined and estimated will importantly affect the size of the GDP estimate. |
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| 679. |
Who prepared the first estimate of National Income for the country? |
| A. | Central Statistical Organisation |
| B. | National Income Committee |
| C. | Dadabhai Naoroji |
| D. | National Sample Survey Organisation |
| Answer» C. Dadabhai Naoroji | |
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Explanation: Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as nonagricultural production. However, such method can only been called as a non-scientific method. |
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| 680. |
'Supply creates its own demand'. This statement is related to - |
| A. | Prof. J.B. Say |
| B. | John Robinson |
| C. | Adam Smith |
| D. | J.S. Mill |
| Answer» A. Prof. J.B. Say | |
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Explanation: Jean Baptiste Say was a French economist. I le is well known for Say's Law (or Say's Law of Markets), often summarized as: "Aggregate supply creates its own aggregate demand"; "Supply creates its own demand", or "Supply constitutes its own demand". He argued that production and sale of goods in an economy automatically produces an income for the producers of the same value, which would then be reinjected into the economy and create enough demand to buy the goods. Thus production is determined by the supply of goods rather than demand. |
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| 681. |
Sectoral distribution of GDP index measures . |
| A. | Agriculture development of a country |
| B. | Economic development of a country |
| C. | Social development of a country |
| D. | Socio-Economic development of a Country |
| Answer» B. Economic development of a country | |
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Explanation: The sectoral distribution of GDP index measures the development of a country across several economic activities. It the market value of all final goods and services produced in a period (quarterly or yearly). |
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| 682. |
Which among the following statements is not true when there is an increase in interest rate in an economy? |
| A. | increase in saving |
| B. | decrease in loan |
| C. | increase in production cost |
| D. | increase in capital return |
| Answer» D. increase in capital return | |
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Explanation: Interest rate increase the cost of borrowing, which results in lesser investment activity and the purchase of consumer durables. In a low interest-rate environment, shares become a more attractive buy, raising households' financial assets. This may also contribute to higher consumer spending, and makes companies' investment projects more attractive. Lower interest rates also tend to cause currencies to depreciate: Demand for domestic goods rises when imported goods become more expensive. All of these factors raise output and employment as well as investment and consumer spending. |
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| 683. |
The difference between the GNP and the NNP is equal to the - |
| A. | consumer expenditure on durable goods |
| B. | direct tax revenue |
| C. | indirect tax revenue |
| D. | capital depreciation |
| Answer» D. capital depreciation | |
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Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used (depreciation with (he matching principle). The difference between the GNP and NNP is equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence. |
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| 684. |
By whom was the autonomous investment separated from induced investment? |
| A. | Schumpeter |
| B. | Malthus |
| C. | Joan Robinson |
| D. | Adam Smith |
| Answer» A. Schumpeter | |
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Explanation: Under his concept of creative destruction, Schunipeter distinguished between two types of investment that he called induced and autonomous. Induced investment arose from the discrepancy between supply and demand and autonomous investment from resources and technology created by the entrepreneurs. He also introduced a concept of "saving up" which is different from saving in the neoclassical growth models. Saving up constituted the part of out-put that is withheld from investment and consumption. |
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| 685. |
When price of a substitute of commodity falls, the demand for - |
| A. | falls |
| B. | remains unchanged |
| C. | increases at increasing rate |
| D. | rises |
| Answer» A. falls | |
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Explanation: Cross Price Effect refers to effect on the demand for a given commodity due to a change in the price of a substitute commodity. A change (increase or decrease) in the price ofsubstitutes directly affects the demand for a given commodity. When price of substitute goods (say, coffee) rises, demand for the given commodity (say, tea) also rises at its same price. It leads to a rightward shift in the demand curve of the given commodity. With decrease in price of substitute goods (coffee), demand for the given commodity (tea) also decreases. It shifts the demand curve of the given commodity towards left. |
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| 686. |
A mixed economy refers to an economic system where - |
| A. | The economy functions with foreign collaboration |
| B. | Only t he private sector operates under government control |
| C. | Both the government and the private sectors operate sectors operate simultaneously |
| D. | No foreign investment is allowed |
| Answer» C. Both the government and the private sectors operate sectors operate simultaneously | |
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Explanation: Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. The basic idea of the mixed economy is that the means of production are mainly under private ownership: that markets remain the dominant form of economic coordination: and that the government wields indirect influence over the economy through fiscal arid monetary policies. |
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| 687. |
A Black Market is a situation where in |
| A. | Goods are loaded by the producers |
| B. | Goods are sold secretly |
| C. | Goods are sold at prices higher than what is fixed by the Government |
| D. | Goods are made available |
| Answer» B. Goods are sold secretly | |
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Explanation: Black market is the market in which illegal goods are traded. Goods acquired illegally take one of two price levels: (i) they may be cheaper than legal market prices as the supplier does not have to pay for production costs or taxes; or (ii) 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 controlsor 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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| 688. |
Buoyancy of a tax is defined as - |
| A. | percentage increase in tax revenue/ percentage increase in tax base |
| B. | increase in tax revenue/ percentage increase in tax coverage |
| C. | increase in tax revenue/increase in tax base |
| D. | percentage increase in tax revenue/ increase in tax coverage |
| Answer» C. increase in tax revenue/increase in tax base | |
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Explanation: Buoyancy means the growth/increase in tax collections. This is in line with the GDP growth within the economy, the industry profile and the tax structure administered by the government. Tax buoyancy measures the total response of tax revenues to changes in national income. Total response takes into account both increases in income and discretionary changes (i.e., tax rates and bases) made by tax authorities in the system. The responsiveness of tax revenues to discretionary changes in the tax rate and in the tax base in relation to the GDP is termed the buoyancy of the tax system. |
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| 689. |
What is referred to as "Depository Services"? |
| A. | A new scheme of fixed deposits |
| B. | A method of regulating stock exchanges |
| C. | An agency for safe-keeping of securities |
| D. | An advisory service to investors |
| Answer» C. An agency for safe-keeping of securities | |
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Explanation: A Central Securities Depository (CSD) is an organization holding securities either in certificated or uncertificated (dematerialized) form, to enable book entry transfer of securities. In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of securities. The physical securities may be immobilized by the depository, or securities may be dematerialized (so that they exist only as electronic records). The following are depository services: Demat accounts; dematerialization; rematerialization; transfer of securities; and pledge services. |
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| 690. |
Regulated markets aim at the development of the marketing structure to - |
| A. | widen the price spread between the producer and the consumer |
| B. | narrow down the price spread between the producer and the consumer |
| C. | increase the non-functional margins of the traders |
| D. | maximize the non-functional margins of the commission agents |
| Answer» B. narrow down the price spread between the producer and the consumer | |
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Explanation: Regulated markets aim at the development of marketing structures to ensure remunerative prices to the producers and to narrow down the price spread between the producer and the consumer. It also aims at reducing the non-functional margins of the commission agents. |
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| 691. |
Evaluating all the options to find out most suitable solution to business problems is interdisplinary activities. It is called - |
| A. | Professional research |
| B. | Management research |
| C. | Operational research |
| D. | Commercial research |
| Answer» C. Operational research | |
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Explanation: Operational research is a discipline that deals with the application of advanced analytical methods to help make better decisions. Employing techniques from other mathematical sciences, such as mathematical modeling, statistical analysis, and mathematical optimization, operations research arrives at optimal or near-optimal solutions to complex decision-making problems. In a nutshell, operations research (O.R.) is the discipline of applying advanced analytical methods to help make better decisions. |
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| 692. |
Variation in Cash Reserve Ratio and Open Market Operations are instruments of |
| A. | Budgetary policy |
| B. | Trade policy |
| C. | Fiscal policy |
| D. | Monetary policy |
| Answer» D. Monetary policy | |
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Explanation: Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the Reserve Bank of India controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. |
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| 693. |
The purpose of devaluation is to : |
| A. | be little foreign currencies |
| B. | encourage exports |
| C. | discourage exports |
| D. | encourage import |
| 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 other monetary units with which that currency can be exchanged. It makes exports more competitive and imports more expensive. |
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| 694. |
Foreign currency which has a tendency of quick migration is called - |
| A. | Scarce currency |
| B. | Soft currency |
| C. | Gold currency |
| D. | Hot currency |
| Answer» D. Hot currency | |
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Explanation: Hot money or currency is a term that is most commonly used in financial markets to refer to the now of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called "hot money" because they can move very quickly in and out of markets, potentially leading to market instability. |
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| 695. |
Bank Rate refers to the interest rate at which - |
| A. | Commercial banks receive deposits from the public |
| B. | Central bank gives loans to Commercial banks |
| C. | Government loans are floated |
| D. | Commercial banks grant loans to their customers |
| Answer» B. Central bank gives loans to Commercial banks | |
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Explanation: Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are very short in duration. |
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| 696. |
A Trade Policy consists of - |
| A. | Export-Import Policy |
| B. | Licencing Policy |
| C. | Foreign Exchange Policy |
| D. | Balance of Payment Policy |
| Answer» A. Export-Import Policy | |
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Explanation: Trade policy, also called Export- Import policy, is a collection of rules and regulations which pertain to trade. Every nation has some form of trade policy in place, with public officials formulating the policy which they think would be most appropriate for their country. Things like import and export taxes, tariffs, inspection regulations, and quotas can all be part of a nation's trade policy. |
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| 697. |
Globalisation means - |
| A. | Integration of economy |
| B. | Integration of financial market |
| C. | Integration of the domestic economy with the world economy |
| D. | Integration of the various sectors of economy |
| Answer» C. Integration of the domestic economy with the world economy | |
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Explanation: Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that promote world-wide exchanges of national and cultural resources. |
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| 698. |
The 'sunrise industries' imply - |
| A. | petrochemicals and electronics industry |
| B. | sunflower oil industry |
| C. | computer industry |
| D. | chemical industry |
| Answer» A. petrochemicals and electronics industry | |
|
Explanation: Sunrise Industry is a colloquial term for a sector or business that is in its infancy,but is growing at a rapid pace. A sunrise industry is typically characterized by high growth rates, numerous startups and an abundance of venture capital funding. A sunrise industry is often characterized by a high degree of innovation. |
|
| 699. |
Regional Rural Banks arc sponsored by |
| A. | Nationalized Commercial Bank |
| B. | Reserve Bank of India |
| C. | State Bank of India |
| D. | Government of India |
| Answer» A. Nationalized Commercial Bank | |
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Explanation: The Narasimham committee conceptualized the foundation of regional rural banks in India. Five regional rural banks were set up on October 2. 1975. There were five commercial banks, viz. Punjab National Bank, State Bank of India, Syndicate Bank. United Bank of India and United Commercial Bank, which sponsored the regional rural banks. |
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| 700. |
Which organization collects data for the unorganized sector? |
| A. | NSSO |
| B. | CSO |
| C. | ASI |
| D. | RBI |
| Answer» A. NSSO | |
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Explanation: The National Sample Survey Office (NSSO) in India is a unique setup to carry out surveys on socioeconomic, demographic, agricultural and industrial subjects for collecting data from households and from enterprises located in villages and in the towns. The unregistered manufacturing sub-sector, a complement set to the registered manufacturing sub-sector, covers all the residual units which are not covered under the registered manufacturing sector. |
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