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) .
| 151. |
Bull and bear are related to which commercial activity? |
| A. | Banking |
| B. | Ecommerce |
| C. | International trade |
| D. | Stock market |
| Answer» D. Stock market | |
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Explanation: Both the terms are related to stock market. Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future |
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| 152. |
The share broker who sells shares in the apprehension of falling prices of shares is called |
| A. | Bull |
| B. | Dog |
| C. | Bear |
| D. | Stag |
| Answer» C. Bear | |
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Explanation: A bear market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Bear investors believe that the value of a specific security or an industry is likely to decline in the future. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market. |
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| 153. |
"Bad money will drive out good money from circulation." This is known as : |
| A. | Engle's Law |
| B. | Gresham's Law |
| C. | Say' Law |
| D. | Wagner's Law |
| Answer» B. Gresham's Law | |
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Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the under-valued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." It is commonly stated as: "Bad money drives out good." |
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| 154. |
If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - |
| A. | lower cash reserve ratio |
| B. | raise discount rates |
| C. | sell government securities |
| D. | All of the above |
| Answer» A. lower cash reserve ratio | |
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Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to hold a lesser proportion of their deposits in the form of deposits with the RBI. This increases the amount of Bank deposits and they will lend more as they have more amount as their reserve. |
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| 155. |
On the administered price of which of the following articles no subsidy is given? |
| A. | DAP |
| B. | ATF |
| C. | LPG |
| D. | Kerosene oil |
| Answer» B. ATF | |
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Explanation: In India, no subsidy is given to Aviation Turbine Fuel (ATF). Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. The highly punitive fiscal regime in India is the primary problem for the aviation sector. The cost of Aviation Turbine Fuel in India is almost 60% higher than international benchmarks. Combined with a high base price, fuel now represents 45-55% of a carrier's operating costs. |
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| 156. |
Which among the following has the least possibility of globalization? |
| A. | selection of labour force |
| B. | location of capital works |
| C. | to manage resources for investment |
| D. | increase in infrastructure |
| Answer» B. location of capital works | |
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Explanation: Globalization can affect the labor market by increasing capacity of developing countries to create new opportunities for work and production following the alleviation of price distortions with respect to both labor and capital. Globalization on business management is interconnection of international markets and managing businesses in a global industry. This includes management of resources for foreign investments whereby a company expands its business and invests in foreign countries. Globalization means inter-linkage among the countries of the globe. This can only happen when infrastructure is in proper shape. A well- developed infrastructure is an indispensable condition for faster globalization. |
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| 157. |
What was the objective of Command Area Development Programme? |
| A. | To ensure that land is given to the tillers |
| B. | To ensure better utilization of irrigation potential |
| C. | To develop I he areas under the command of Army |
| D. | Poverty alleviation in selected areas |
| Answer» B. To ensure better utilization of irrigation potential | |
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Explanation: The Command Area Development Programme was launched in the year 1974-75 under Centrally Sponsored Scheme, with the objective of fast utilization of created irrigation potential and optimum agriculture product ion from irrigable land. It aimed at: reclamation of water logged areas; construction of field irrigation channels; construction of field drains; all round development of areas pertaining to agriculture, etc. |
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| 158. |
Distribution of food rains operates under a two her system with the introduction of - |
| A. | Targetted Public Distribution System |
| B. | The Consumers Cooperatives |
| C. | The Cooperative Marketing Societies |
| D. | The Service Cooperatives |
| Answer» A. Targetted Public Distribution System | |
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Explanation: The Targeted Public Distribution System (TPDS) replaced the erstwhile PDS from June 1997. Under the new system a two tier subsidized pricing system was introduced to benefit the poor. |
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| 159. |
A favorable Balance of Trade of a country implies that - |
| A. | Imports are greater than Exports |
| B. | Exports are greater than Imports |
| C. | Both Imports and Exports are equal |
| D. | Rising Imports and Falling Exports |
| Answer» B. Exports are greater than Imports | |
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Explanation: Favorable balance of trade is an imbalance in a nation's balance of trade in which the payments for merchandise exports received by the country exceed payments for merchandise imports paid by the country. This is also termed a balance of trade surplus. It's considered favorable because more goods are exported out of the country than are imported in, meaning that foreign production is replaced with domestic production, which then increases domestic employment and income. A balance of tradesurplus is often the source of a balance of payments surplus. |
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| 160. |
'Quota' is - |
| A. | tax levied on imports |
| B. | imports of capital goods |
| C. | limit on the quantity of imports |
| D. | limit on the quantity of exports |
| Answer» C. limit on the quantity of imports | |
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Explanation: An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. It is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can he imported into a country in a given period of time. The primary goal of import quotas is to reduce imports and increase domestic production of a good, service, or activity, thus "protect" domestic production by restricting foreign competition. |
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| 161. |
A tax is characterized by horizontal equity if its liability is - |
| A. | proportional to the income of tax payers |
| B. | similar for tax payers in similar circumstances |
| C. | proportional to the expenditure of tax payers |
| D. | the same for every tax payer |
| Answer» A. proportional to the income of tax payers | |
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Explanation: The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual's ability-to-pay. The idea of the ability-to-pay principle considers whether or not it is fair to tax someone higher just because that person has the ability and resources to pay. If it is decided that they should be required to pay more, the question of how much more arises. These questions can be analyzed through horizontal and vertical equity which are subsets of the ability-to-pay principle. Horizontal equity suggests it is fair for people of equal ability to pay the same amount in taxes. |
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| 162. |
What does a Leasing Company provide? |
| A. | Machinery and capital equipment on hire |
| B. | Legal guidance in establishing an enterprise |
| C. | Office accommodation on hire |
| D. | Technical consultancy and experts for a fee |
| Answer» A. Machinery and capital equipment on hire | |
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Explanation: Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. Equipment leasing is a financing alternative for businesses to acquire needed machinery while saving precious operating capital. Leasing provides opportunities to use available money to operate assets that can make more money over time. |
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| 163. |
The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - |
| A. | codification of tax laws |
| B. | the entire structure of tax laws including the question of imposition of bank tax |
| C. | the concerns of the foreign investors in India with regard to taxation matters |
| D. | aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system |
| Answer» D. aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system | |
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Explanation: The Central Board of Direct Taxes (CBDT) panel on black money recently suggested enactment of new laws, strengthening of existing legislation and introduction of deterrent penalties for tax offences to deal with the menace. In its 66-page report on measures to tackle black money in India and abroad, the CBDT committee also recommended steps to prevent generation of illicit funds through transactions in property, bullion and equity market. |
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| 164. |
What is dual pricing? |
| A. | Wholesale price and Retail pricing |
| B. | Pricing by agents and Pricing by retailers |
| C. | Price fixed by Government and Price in open market |
| D. | Daily prices and Weekly prices |
| Answer» C. Price fixed by Government and Price in open market | |
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Explanation: Dual pricing is the practice of setting prices at different levels depending on the currency used to make the purchase. It may be used to accomplish a variety of goals, such as to gain entry into a foreign market by offering unusually low prices to buyers - using the foreign currency, or as a method of price discrimination. In the context of commerce, however, dual pricing refers to the sale of the same product at different prices, depending on the market. This is also known as two-tier pricing and is common in many developing nations |
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| 165. |
A tax is said to be regressive when its burden falls - |
| A. | less heavily on the poor than on the rich |
| B. | more heavily on the poor than on the rich |
| C. | equally on the poor as on the rich |
| D. | None of these |
| Answer» B. more heavily on the poor than on the rich | |
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Explanation: In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich. There is an inverse relationship between the tax rate and the taxpayer's ability to pay, as measured by assets, consumption, or income. These taxes tend to reduce the tax burden of the well-todo, as they shift the burden disproportionately to the needy. |
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| 166. |
Mixed Economy means : |
| A. | Promoting both agriculture and industries in the economy |
| B. | Co-existence of public and private sectors |
| C. | Co-existence of rich and poor |
| D. | Co-existence of small and large industries |
| Answer» B. Co-existence of public and private sectors | |
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Explanation: A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism. All modern economies are mixed where the means of production are shared between the private and public sectors. |
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| 167. |
When aggregate supply exceeds aggregate demand - |
| A. | unemployment falls |
| B. | prices rise |
| C. | inventories accumulate |
| D. | unemployment develops |
| Answer» C. inventories accumulate | |
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Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to producers either to cut prices (to stimulate an increase in demand) or to reduce output so as to reduce the buildup of excess stocks. Either way -there is a tendency for output to move closer to the current level of demand. |
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| 168. |
Investment is equal to - |
| A. | gross total of all types of physical capital assets |
| B. | gross total of all capital assets minus wear and tear |
| C. | stock of plants, machines and equipments |
| D. | None of these |
| Answer» B. gross total of all capital assets minus wear and tear | |
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Explanation: Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets. In economic statistics and accounts, capital formation can be valued gross, i.e., before deduction of consumption of fixed capital (or "depreciation"), or net, i.e. after deduction of "depreciation" write-offs. The net valuation method views "depreciation" as the compensation for the cost of replacing fixed equipment used up or worn out, which must be deducted from the total investment volume to obtain a measure of the "real" value of investments: the depreciation write-off compensates and cancels out the loss in capital value of assets used due to wear & tear, obsolescence, etc. |
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| 169. |
Which one of the following items is included in the national income account? |
| A. | Services of housewives |
| B. | Income of smugglers |
| C. | Services of Sadhus |
| D. | Services of night-watchmen |
| Answer» D. Services of night-watchmen | |
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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. Services provided by housewives, income of smugglers and services of sadhus can be categorized as non- economic services and thus cannot be accounted. |
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| 170. |
An Increase in national income because of an increase in price is called- |
| A. | an increase in national income in real terms |
| B. | an increase in national income at constant prices |
| C. | an increase in money national income |
| D. | an increase in national income at base year prices |
| Answer» D. an increase in national income at base year prices | |
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Explanation: To find the real value of changes in output under inflationary conditions, the effects of any general price increase (price inflation) must be taken into account. This is done by holding prices constant from a starting measure, called the base year. It holds prices constant in terms of the prices existing in the base year. |
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| 171. |
A-Transfer Income' is an - |
| A. | Income which is not produced by any production process |
| B. | Income taken away from one person and given over to another |
| C. | Unearned income |
| D. | Earned income |
| Answer» A. Income which is not produced by any production process | |
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Explanation: Income which is not produced by any production process is called Transfer Income. |
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| 172. |
National Income is also called as : |
| A. | GNP at Factor Cost |
| B. | GNP at Market Price |
| C. | (3) NNP at Factor Cost |
| D. | (4) NNP at Market Price |
| Answer» A. GNP at Factor Cost | |
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Explanation: National Income is the total value of all goods and services produced in the economy during a particular period of time. |
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| 173. |
One of the following is 'Labour' in Economics. |
| A. | A Musician performing for a benefit fund |
| B. | A Painter working for his own pleasure |
| C. | Reading a book as a hobby |
| D. | A Mother teaching her own son |
| Answer» A. A Musician performing for a benefit fund | |
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Explanation: Labour includes both physical and mental work undertaken for some monetary reward. In this way, workers working in factories, services of doctors, advocates, ministers, officers and teachers are all included in labour. Any physical or mental work which is not undertaken for getting income, but simply to attain pleasure or happiness, is not labour. |
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| 174. |
Excise duty is levied on - |
| A. | sale of goods |
| B. | production of goods |
| C. | import of goods |
| D. | export of goods |
| Answer» B. production of goods | |
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Explanation: Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty. |
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| 175. |
Average Revenue means - |
| A. | the revenue per unit of commodity sold |
| B. | the revenue from all commodities sold |
| C. | the profit realised from the marginal unit sold |
| D. | the profit realised by sale of all commodities |
| Answer» A. the revenue per unit of commodity sold | |
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Explanation: Average revenue is the revenue per unit of the commodity sold. It can be obtained by dividing the TR by the number of units sold. Then, AR = TR/Q AR. In other words, it means price. Since the demand curve shows the relationship between price and the quantity demanded, it also represents the aver- age revenue or price at which the various amounts of a commodity are sold, because the price offered by the buyer is the revenue from seller's point of view. Therefore, averagerevenue curve of the firm is the same as demand curve of the consumer. |
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| 176. |
Economic rent refers to - |
| A. | Payment made for the use of labour |
| B. | Payment made for the use of capital |
| C. | Payment made for the use of organisation |
| D. | Payment made for the use of land |
| Answer» D. Payment made for the use of land | |
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Explanation: Rent refers to that part of payment by a tenant which is made only for the use of land, i.e., free gift of nature. The payment made by an agriculturist tenant to the landlord is not necessarily equals to the economic rent. A part of this payment may consist of interest on capital invested in the land by the land-lord in the form of buildings, fences, tube wells, etc. The term 'economic rent' refers to that part of payment which is made for the use of land only, and the total payment made by a tenant to the landlord is called 'contract rent'. Economic rent is also called surplus because it emerges without any effort on the part of a landlord. |
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| 177. |
"Interest is a reward for parting with liquidity" is according to - |
| A. | Keynes |
| B. | Marshall |
| C. | Haberler |
| D. | Ohlin |
| Answer» A. Keynes | |
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Explanation: In macroeconomic theory, 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) to explain determination of the interest rate by the supply and demand for money. The demand for money as an asset was theorized to depend on the interest foregone by not holding bonds. Interest rates, he argues, cannot be a reward for saving as such because, if a person hoards his savings in cash, keeping it under his mattress say, he will receive no interest, although he has nevertheless refrained from consuming all his current income. Instead of a reward for saving, interest in theKeynesian analysis is a reward for parting with liquidity. |
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| 178. |
Extension or contraction of quantity demanded of a commodity is a result of a change in the - |
| A. | unit price of the commodity |
| B. | income of the consutner |
| C. | tastes of the consumer |
| D. | climate of the region |
| Answer» A. unit price of the commodity | |
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Explanation: Demand for a commodity refers to the quantity of the commodity that people are willing to purchase at a specific price per unit of time, other factors (such as price of related goods, income, tastes and preferences, advertising, etc) being constant. Demand includes the desire to buy the commodity accompanied by the willingness to buy it and sufficient purchasing power to purchase it. So changes in the unit price of a commodity leads to either extension or contraction in demand. The law of demand states that there is an inverse relationship between quantity demanded of a commodity and its price, other factors being constant. In other words, higher the price, lower the demand and vice versa, other things remaining constant. |
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| 179. |
Why is rent earned by land even in the long run? |
| A. | Land has original and indestructible power |
| B. | Land is a man made factor |
| C. | Its supply is inelastic in the short run |
| D. | Its supply is inelastic in the long run |
| Answer» D. Its supply is inelastic in the long run | |
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Explanation: Rent accrues to land which is fixed in supply even in the longer run. It is permanent. In contrast to it is a quasi rent, introduced by Marshall, which is inelastic in the short run, but elastic in the longer run. |
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| 180. |
Who is called the Father of Economics? |
| A. | J.M. Keynes |
| B. | Malthus |
| C. | Ricardo |
| D. | Adam Smith |
| Answer» D. Adam Smith | |
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Explanation: Adam Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Ingully into the Nature and Causes of the Wealth of Nations (1776). The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith is cited as the father of modern economics and is still among the most influential thinkers in the field of economics today. |
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| 181. |
A horizontal demand curve is - |
| A. | relatively elastic |
| B. | perfectly inelastic |
| C. | perfectly elastic |
| D. | of unitary elasticity |
| Answer» C. perfectly elastic | |
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Explanation: The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) product. A horizontal demand curve is a flat curve with a slope of zero. It is a perfectly elastic demand curve. Because the slope of the curve is zero, it is impossible for the price to change in the market. |
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| 182. |
The theory of monopolistic competition has been formulated in the United States of America by - |
| A. | Joan Robinson |
| B. | Edward Chamberlin |
| C. | John Bates Clark |
| D. | Joseph Schumpeter |
| Answer» B. Edward Chamberlin | |
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Explanation: In treatments of monopolistic competition, Edward Chamberlin and Joan Robinson are usually credited with simultaneously and independently developing the theory of monopolistic or imperfect competition. Chamberlin published his book 'The Theory of Monopolistic Competition' in 1933, the same year that Joan Robinson published her book on the same topic: The Economics of Imperfect Competition,' so these two economists can be regarded as the parents of the modern study of imperfect competition. |
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| 183. |
The remuneration of the entrepreneur in production is - |
| A. | Pure profit |
| B. | Gross profit |
| C. | Net profit |
| D. | Super-normal profit |
| Answer» C. Net profit | |
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Explanation: Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit. His profit is in the form of Net Profit which is achieved by deducting other elements (such as planning the production, producing the commodities on the basis of demand, looking after efficient distribution) from the gross profit. |
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| 184. |
Elasticity (e) expressed by the formula 1 > e > 0 is - |
| A. | Perfectly elastic |
| B. | Relatively elastic |
| C. | Perfectly inelastic |
| D. | Relatively inelastic |
| Answer» D. Relatively inelastic | |
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Explanation: Elasticity (e) expressed by the formula 1 > e > 0 is relatively inelastic. Elasticity is responsiveness of one variable to a change in |
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| 185. |
In the case of an inferior good, the income elasticity of demand is : |
| A. | Zero |
| B. | Negative |
| C. | Infinite |
| D. | Positive |
| Answer» B. Negative | |
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Explanation: A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. |
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| 186. |
Production Function relates to: |
| A. | costs to outputs |
| B. | costs to inputs |
| C. | inputs to outputs |
| D. | wage level to profits |
| Answer» C. inputs to outputs | |
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Explanation: In microeconomics and macroeconomics, a production function is a function that specifies the out-put of a firm, an industry, or an entire economy for all combinations of inputs. The primary purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors. |
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| 187. |
The term "market" in Economics means - |
| A. | A central place |
| B. | Presence of competition |
| C. | Place where goods are stored |
| D. | Shops and super bazars |
| Answer» A. A central place | |
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Explanation: The most important defining characteristic of a market in economics is that it allows buyers and sellers to exchange any type of goods, services and information. According to Walter Christaller's 'Central Place Theory,' a central place is a market center for the exchange of goods and services by people attracted from the surrounding area. The central place is so called because it is centrally located to maximize accessibility from the surrounding region. |
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| 188. |
Division of labour is limited by - |
| A. | the number of workers |
| B. | hours of work |
| C. | extent of the market |
| D. | working space |
| Answer» C. extent of the market | |
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Explanation: Division of labour is a process whereby the production process is broken clown into a sequence of stages and workers are assigned to particular stages. As it is the power of exchanging that gives occasion to the division of labour, so the extent of this division mils (always be limited by the extent of that power, or, other words, by the extent of the market. |
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| 189. |
Cross elasticity of demand between petrol and car is - |
| A. | infinite |
| B. | positive |
| C. | zero |
| D. | negative |
| Answer» D. negative | |
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Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of anal her good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good. For example, if, in response to a 10% increase in the price of fuel, the demand of new cars that are (110 inefficient decreased by 20%, the cross elasticity of demand would be -2. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products |
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| 190. |
The Law of Demand expresses - |
| A. | effect of change in price of a commodity on its demand |
| B. | effect of change in demand of a commodity on its price |
| C. | effect of change in demand of a commodity over the supply of its substitute |
| D. | (4) None of the above |
| Answer» A. effect of change in price of a commodity on its demand | |
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Explanation: The law of demand states the inverse relation that comes to exist of between price in one hand and quantity demanded on the other. The law of demand portrays that demand is the function of price. Price is the key determinant of demand. Fluctuations in price leads to changes in the quantity demanded. In other words, the higher the price of a product, the lower the quantity demanded. |
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| 191. |
The Marginal Utility Curve slopes downward from left to right indicating - |
| A. | A direct relationship between marginal utility and the stock of commodity |
| B. | A constant relationship between marginal utility and the stock of commodity |
| C. | A proportionate relation-ship between marginal utility and the stock of commodity |
| D. | An inverse relationship between marginal utility and the stock of commodity |
| Answer» D. An inverse relationship between marginal utility and the stock of commodity | |
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Explanation: The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from consuming an additional unit of good and the quantity of the good consumed. The negative slope of the marginal utility curve reflects the law of diminishing marginal utility. The marginal utility curve also can be used to derive the demand curve. Marginal Utility is the utility derived from the last unit of a commodity purchased. One of the earliest explanations of the inverse relationship between price and quantity demanded is the law of diminishing marginal utility. This law suggests that as more of a product is consumed the marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less. |
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| 192. |
The term 'Macro Economics' was used by . |
| A. | J.M. Keynes |
| B. | Ragner Frisch |
| C. | Ragner Nurkse |
| D. | Prof. Knight |
| Answer» B. Ragner Frisch | |
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Explanation: Ragnar Frisch coined the widely- used term pair macroeconomics/ microeconomics in 1933. He was a Norwegian economist and the co-recipient of the first Nobel Memorial Prize in Economic Sciences in 1969. Fie is known for having founded the discipline of econometrics. |
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| 193. |
Tax on inheritance is called - |
| A. | Excise duty |
| B. | Estate duty |
| C. | Gift tax |
| D. | Sales tax |
| Answer» B. Estate duty | |
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Explanation: Estate duty is a tax on the total market value of a person's assets at the date of his or her death. The deceased person's assets, as a whole, are called an estate. Inheritance tax is levied on assets that legal heirs inherit, while estate duty is applicable on the assets of those who are dead. |
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| 194. |
Which nationalized bank of India has a shining star as its emblem? |
| A. | Syndicate Bank |
| B. | Indian Bank |
| C. | Bank of India |
| D. | Bank of Baroda |
| Answer» C. Bank of India | |
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Explanation: The new logo of the Bank of Baroda is a unique representation of a universal symbol. It comprises dual 'B' letterforms that hold the rays of the rising sun. It is known as the 'Baroda Sun' which is the single most powerful source of light and energy - its far reaching rays dispel darkness to illuminate everything they touch. With this logo, Bank of Baroda seeks to be the source that will help all its stakeholders realize their goals. To customers, the hank seeks to be a one-stop. reliable partner who will help them address different financial needs. To employees, the bank offers rewarding careers and to our investors and business partners, maximum return on their investment. |
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| 195. |
ISI mark is not given to which of the following products? |
| A. | Electrical goods |
| B. | Hosiery goods |
| C. | Biscuits |
| D. | Cloth |
| Answer» C. Biscuits | |
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Explanation: ISI mark is a certification mark for industrial products in India, which is mandatory for certain products to be sold in India, like most of the electrical appliances viz; switches, electric motors, wiring cables, heaters, kitchen appliances etc., and other products like portland cement, LPG valves, LPG cylinders, automotive tyres. |
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| 196. |
The duties levied on alcoholic liquors, narcotic drugs and opium come under— |
| A. | Central Excise Duty |
| B. | Land Revenue |
| C. | State Excise Duty |
| D. | General Sales Tax |
| Answer» C. State Excise Duty | |
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Explanation: An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is charged on many goods like cars. writing paper, printing paper and packing paper, drugs and pharmaceuticals, alcoholic liquor, water filtration and purification devices, pan masala, etc. |
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| 197. |
Theoretically trade between two countries lakes place on account of - |
| A. | differences In costs |
| B. | scarcity of goods |
| C. | comparative differences in costs |
| D. | need for exports |
| Answer» C. comparative differences in costs | |
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Explanation: Trade exists for man clue to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production thus providing cost advantage of producing the same commodity. |
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| 198. |
Short term loans to correct Balance of Payments problems is given by |
| A. | I.M.F. |
| B. | I.B.R.D |
| C. | I.D.A |
| D. | A.D.B |
| Answer» A. I.M.F. | |
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Explanation: Upon Initial IMF formation, its two primary functions were: to oversee the fixed exchange rate arrangements between countries, thus helping national governments manage their exchange rates and allowing these governments to prioritize economic growth, and to provide short-term capital to aid balance-of-payments. |
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| 199. |
The outcome of 'devaluation of currency' is - |
| A. | increased export and improvement in balance of payment |
| B. | increased export and foreign reserve deficiency |
| C. | increased import and improvement in balance of payment |
| D. | increased export and import |
| Answer» A. increased export and improvement in balance of payment | |
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Explanation: Devaluation is a reduction in the exchange value of a country's monetary unit in terms of gold, silver, or foreign currency. By decreasing the price of the home country's exports abroad and increasing the price of imports in the home country, devaluationencourages the home country's export sales and discourages expenditures on imports, thus improving its balance of payments. |
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| 200. |
'Gresham's Law' in Economics relates to |
| A. | supply and demand |
| B. | circulation of currency |
| C. | consumption of supply |
| D. | distribution of goods and services |
| Answer» B. circulation of currency | |
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Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear, from circulation into hoards, while the over-valued money will flood into circulation." It is commonly stated as: "Bad money drives out good." |
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