Indian Economy - General Knowledge Questions

1 .
Short-term finance is usually for a period ranging up to
A)
5 months
B)
12 months
C)
18 months
D)
24 months

Correct Answer :   12 months

2 .
The association of the rupee with pound sterling as the intervention currency was broken in
A)
1990
B)
1991
C)
1992
D)
1993

Correct Answer :   1992

3 .
Redistribution polices geared to reduce economic inequalities include
A)
progressive tax policies
B)
land reforms
C)
rural development policies
D)
All the above

Correct Answer :   All the above

4 .
India changed over to the decimal system of coinage in
A)
April 1995
B)
April 1957
C)
April 1958
D)
April 1959

Correct Answer :   April 1957

5 .
If the RBI adopts an expansionist open market operations policy, this means that it will
A)
buy securities from non-government holders
B)
sell securities in the open market
C)
openly announce to the market that it intends to expand credit
D)
offer commercial banks more credit in the open market

Correct Answer :   offer commercial banks more credit in the open market

6 .
If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits
A)
will decrease
B)
will increase
C)
will neither increase nor decrease
D)
None of the above

Correct Answer :   will neither increase nor decrease

7 .
Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to
A)
ARDC
B)
SBI
C)
NABARD
D)
PACs

Correct Answer :   NABARD

8 .
Deficit financing leads to inflation in general, but it can be checked if
A)
government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
B)
only aggregate demand is increased
C)
all the expenditure is denoted national debt payment only
D)
All of the above

Correct Answer :   All of the above

9 .
Devaluation of currency leads to
A)
fall in domestic prices
B)
increase in domestic prices
C)
no impact on domestic prices
D)
erratic fluctuations in domestic prices

Correct Answer :   increase in domestic prices

10 .
Depreciation means
A)
closure of a plant due to lock out
B)
closure of a plant due to labour trouble
C)
loss of equipment over time due to wear and tear
D)
destruction of a plant in a fire accident

Correct Answer :   loss of equipment over time due to wear and tear

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