Economy mcqs#3
Q 1.What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
a.To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit.
b.To support the infrastructure projects of Central and State Governments
c.To act as independent regulator in case of application for loans of Rs. 50 core or more
d.To aim at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending
Ans – d
Q 2.The Chairman of public sector banks are selected by the
a.Banks Board Bureau
b.Reserve Bank of India
c.Union Ministry of Finance
d.Management of concerned bank
Ans – a
Q 3.Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
a.Maintenance of law and order
b.Paying taxes
c.Registering property
d.Dealing with construction permits
Ans – a
Q 4.The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
a.transportation cost only
b.interest cost only
c.procurement incidentals and distribution cost
d.procurement incidentals and charges for godowns
Ans – c
Q 5.The Service Area Approach was implemented under the purview of
a.Integrated Rural Development Programme
b.Lead Bank Scheme
c.Mahatma Gandhi National Rural Employment Guarantee Scheme
d.National Skill Development Mission
Ans – b
Q 6.Consider the following statements:
1. Most of India’s external debt is owed by governmental entities.
2. All of India’s external debt is denominated in US dollars.
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
Ans – d
Q 7.Which of the following is not included in the assets of a commercial bank in India?
a.Advances
b.Deposits
c.Investments
d.Money at call and short notice
Ans – b
Q 8.In the context of India, which of the following factors is/are contributor/ contributors to reducing the risk of a currency crisis?
1. The foreign currency earnings of India’s IT sector
2. Increasing government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below.
a.1 only
b.1 and 3 only
c.2 only
d.1, 2 and 3
Ans – b
Q 9.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of Indian stock market without registering themselves directly?
a.Certificate of Deposits
b.Commercial Paper
c.Promissory Note
d.Participatory Note
Ans – d
Q 10.With reference to India’s Five-Year Plans, which of the following statements is/are
correct?
1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.
Select the correct answer using the code given below.
a. 1 and 2 only
b.2 only
c.3 only
d.1, 2 and 3
Ans – a