Civils Economy-6

Economy Civils Prelims Practice Questions,UPSC,CSAT,SSC,kpsc,UPPSC

In the contest of Indian economy consider the following statements,
1. The growth rate of GDP has steadily incrased in the last five years
2. The growth rate in per capita income has steadily increased in the last five years
which of the statements given above is / are correct

(A) 1 only
(B) 2 only
(C) both 1 and 2
(D) neither 1 nor 2

In India , which of the following have the highest share in the disbursement of credit to agriculture and allied activities ?

(A) Commercial banks
(B) Cooperative banks
(C) Regional rural banks
(D) Microfinance institution

why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern ?
1. The teaser loans are considered to be an aspect of subprime lending and banks may be exposed to the risk of defaulters in future
2. In India , the teaser loans are mostly given to experienced entrepreneurs to set up manufacturing of export units.
which of the statements given above is / are correct

(A) 1 only
(B) 2 only
(C) both 1 and 2
(D) neither 1 nor 2

which of the following can aid in furthering the government’s objective of inclusive growth ?
1. promoting self-help groups
2. promoting micro , small and medium enterprises
3. Implementing the right to education Act .
select the correct answer using the codes given below:

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

Why is the government of India disinvesting its equity in the central public sector enterprises (CPSEs)?
1. The government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The government no longer intends to retain the management control of the CpSEs.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) both 1 and 2
(D) neither 1 nor 2

Economic growth is usually coupled with?

(A) Deflation
(B) Inflation
(C) Stagflation
(D) Hyperinflation

The lowering of bank rate by the reserve bank of India leads to?

(A) More liquidity in the market.
(B) Less liquidity in the market
(C) No change in the liquidity in the market
(D) Mobilization of more deposits by commercial banks.

Which of the following terms indicates a mechanism used by commercial banks for providing credit to government?

(A) Cash reserve ratio.
(B) Debt service obligation
(C) Liquidity adjustment facility
(D) Statutory liquidity ratio

Which one of the following statements is an appropriate description of deflation?

(A) It is a sudden fall in the value of a currency against other currencies.
(B) It is a persistent recession in both the financial and real sectors of economy.
(C) It is a persistent fall in the general price level of goods and services.
(D) It is a fall in the rate of inflation over a period of time.

The SEZ Act, 2005 which came into effect in February 2006 has certain objectives in this context consider the following:
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of exports of servicesonly.
Which of the above are the objectives of this Act?

(A) 1 and 2 only
(B) 3 only
(C) 2 and 3 only
(D) 1,2 and 3

With reference to the Non-Banking Financial companies (NBFC) in India consider the following statements,
1. They cannot engage in the acquisition of securities issued by the government
2. They cannot accept demand deposits like savings account.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) both 1 and 2
(D) neither 1 nor 2

Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act,2003?

(A) Elimination of revenue deficit by the end of the fiscal year
(B) Non-borrowing by the central government from Reserve Bank of India except under certain circumstances.
(C) Elimination of primary deficit by the end of the fiscal year.
(D) Fixing government guarantees in any financial years as a percentage of GDP.

In the parlance of financial investments the term ‘bear’ denotes

(A) An investor who feels that the prices of a particular security is going to fall.
(B) An investor who except the price of particular shares to rice.
(C) A shareholder or a bondholder who has an interest in a company financial or otherwise.
(D) Any lender whether by making a loan or buying a bond

In the context of Indian economy consider the following pairs:
Term Most appropriate description
1. Melt down———Fall in stock prices
2. Recession ———-Fall in growth rate
3. Slow down ——–Fall in GDP
Which of the pairs given above is/are correctly matched?

(A) 1 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1,2 and 3

With reference to BRICS countries consider the following statements:
1. At present, china’s GDP is more than the combined GDP of the three other countries
2. China’s population is more than the combined population of any two other countries.
Which of the statements given above is/are correct?

(A) 1 only
(B) 2 only
(C) both1 and 2
(D) neither 1 nor 2

Which of the following is/are treated as artificial currency?

(A) ADR
(B) GDR
(C) SDR
(D) Both ADR and SDR

In India the interest rate on savings account in all the nationalized commercial banks is fixed by ?

(A) Union ministry of finance
(B) Union finance commission
(C) Reserve Bank of India
(D) Indian Bank’s association