Economy mcqs#6
Q 1.The balance of payments of a country is a systematic record of
a.all import and transactions of a during a given period normally a year
b.goods exported from a country during a year
c.economic transaction between the government of one country to another
d.capital movements from one country to another
Ans – a
Q 2.The Reserve Bank of India regulates the commercial banks in matters of
1.liquidity of assets
2.branch expansion
3.merger of banks
4.winding-up of banks
Select the correct answer using the codes given below.
a.1 and 4 only
b.2, 3 and 4 only
c.1, 2 and 3 only
d.1, 2, 3 and 4
Ans – d
Q 3.An increase in the Bank Rate generally indicates that the
a.market rate of interest is likely to fall
b.Central Bank is no longer making loans to commercial banks
c.Central Bank is following an easy money policy
d.Central Bank is following a tight money policy
Ans – d
Q 4.In India, deficit financing is used for raising resources for
a.economic development
b.redemption of public debt
c.adjusting the balance of payments
d.reducing the foreign debt
ans -a
Q 5.Which of the following constitute Capital Account?
1.Foreign Loans
2.Foreign Direct Investment
3.Private Remittances
4.Portfolio Investment
Select the correct answer using the codes given below.
a.1, 2 and 3
b.1, 2 and 4
c.2, 3 and 4
d.1, 3 and 4
Ans – b
Q 6.Consider the following statements :
1.Inflation benefits the debtors.
2.Inflation benefits the bond-holders.
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 – a
Q 7.Disguised unemployment generally means
a. large number of people remain unemployed
b.alternative employment is not available
c.marginal productivity of labour is zero
d.productivity of workers is low
Ans – c
Q 8.Consider the following liquid assets:
1.Demand deposits with the banks
2.Time deposits with the banks
3.Savings deposits with the banks
4.Currency
The correct sequence of these decreasing order of Liquidity is
a.1-4-3-2
b. 4-3-2-1
c.2-3-1-4
d.4-1-3-2
Ans – d
Q 9.In the context of Indian economy,Open Market Operations’ refers to
a.borrowing by scheduled banks from the RBI
b. lending by commercial banks to industry and trade
c. purchase and sale of government securities by the RBI
d.None of the above
Ans – c
Q 10.Priority Sector Lending by banks in India constitutes the lending to
a.agriculture
b.micro and small enterprises
c.weaker sections
d.All of the above
c.weaker sections