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General Knowledge(GK) (or) General Awareness

Welcome to the General Knowledge Section of Free Time Learning. As we are aware General Knowledge (GK) is a very important area in all the competitive exams held in the country. Nowadays, a good knowledge of general awareness is very important in clearing any competitive and government recruitment examinations.

These General Knowledge Question are very important and usefull to UPSC, IAS/PCS, UPPSC, IBPS, SBI, RBI, SSC, CGL, Railway, APPSC, TSPSC, KPSC, TNPSC, TPSC, UPPSC, MPSC, RPSC, BPSC, MPPSC, UKPSC, MPSC, and other competitive exams.

A)
Army
B)
Life Insurance Corporation
C)
Civil officers of Central Government
D)
Employees of postal department

Correct Answer : Option (D) - Employees of postal department


Postal Life Insurance was started on 01.02.1884 as a welfare measure for the employees of Posts & Telegraphs Department under Government of India dispatch No. 299 dated 18 October, 1882 to the Secretary of State. Due to popularity of its schemes, various departments of Central and State Governments were extended its benefits. Now Postal Life Insurance is open for employees of all central and state government departments, nationalised banks, public sector undertakings, financial institutions, local municipalities and District councils and educational institutions aided by the Government.

Published On : June 26, 2021
A)
money value of stocks and shares of a country during a year.
B)
money value of capital goods produced by a country during a year.
C)
money value of consumer goods produced by a country during a year.
D)
money value of goods and services produced in a country during a year.

Correct Answer : Option (B) - money value of capital goods produced by a country during a year.


National Income is one of the basic concepts in macroeconomics. National Income means the total income of the nation. The aggregate economic performance of the whole economy is measured by the national income data. National Income refers to the money value of all final goods and services produced by the normal residents of a country while working both within and outside the domestic territory of a country in an accounting year. National Income also includes net factor income from abroad. Symbolically, Y = PG + PS, where, Y = National Income; P = Price; G = Goods; and S = Service.

Published On : June 26, 2021
A)
To make ‘Made in India’ a label of quality.
B)
To provide venture capital to IT sector.
C)
To promote in-bound tourism.
D)
To organise trade fairs.

Correct Answer : Option (A) - To make ‘Made in India’ a label of quality.


India Brand Equity Foundation is a Trust established by the Ministry of Commerce with the Confederation of Indian Industry (CII) as its associate. IBEF’s primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate the dissemination of knowledge of Indian products and services. Towards this objective IBEF works closely with stakeholders across government and industry. IBEF works with a network of stakeholders – domestic and international – to promote Brand India.

Published On : June 26, 2021
A)
borrowings from the Reserve Bank of India
B)
long term borrowing from the market
C)
drawing down of the cash balance
D)
borrowing from Reserve Bank in the form of ways and means advance

Correct Answer : Option (C) - drawing down of the cash balance


When the government expenditure exceeds revenues, the government is having a budget deficit. Thus the budget deficit is the excess of government expenditures over government receipts (income). When the government is running a deficit, it is spending more than it’s receipts. Budgetary Deficit is the difference between all receipts and expenditure of the government, both revenue and capital. This difference is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. So when it is estimated, drawing down of cash balances is excluded.

Published On : June 26, 2021
A)
Ensure social justice
B)
Control inflationary pressure
C)
Boost economic development
D)
Direct credit in desirable direction

Correct Answer : Option (A) - Ensure social justice


Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). It is so designed as to maintain the price stability in the economy.

Published On : June 26, 2021
A)
Fixed reserve ratio
B)
Minimum reserve ratio
C)
Floating reserve ratio
D)
Proportional reserve ratio

Correct Answer : Option (B) - Minimum reserve ratio


The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum reserves each commercial bank must hold (rather than lend out) of customer deposits and notes. These required reserves are normally in the form of cash stored physically in a bank vault (vault cash) or deposits made with a central bank. The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country’s borrowing and interest rates by changing the amount of funds available for banks to make loans with. The main objective of minimum reserves is the stabilisation of money market rates. Minimum reserves allow credit institutions to smooth out fluctuations in liquidity such as those caused by the demand for banknotes.

Published On : June 26, 2021
A)
Export—(Loan) Import
B)
Government annual revenue
C)
Surplus of the public sector enterprise
D)
Total productive income

Correct Answer : Option (D) - Total productive income


National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. National Income is the total economic activity (production of finished goods and services calculated in monetary value) within the economic territory of a country by its residents during the year of accounting. In other words National Income of a country is the Net National Product at factor cost.

Published On : June 26, 2021
A)
Fixed fiduciary system
B)
Minimum reserve system
C)
Maximum fiduciary system
D)
Proportional fiduciary system

Correct Answer : Option (B) - Proportional fiduciary system


In terms of Section 22 of the Reserve Bank of India Act, the RBI has been given the statutory function of note issue on a monopoly basis. The note issue in India was originally based upon “Proportional Reserve System”. When it became difficult to maintain the re-serve proportionately, it was replaced by “Minimum Reserve System“. According to the RBI Amendment Act of 1957, the bank should now maintain a minimum reserve of Rs.200 crore worth of gold coins, gold bullion and foreign securities of which the value of gold coin and bullion should be not less than Rs.115 crore.

Published On : June 26, 2021
A)
purchase and sale of bonds and securities by the Central Govt.
B)
borrowing by commercial banks from the R.B.I.
C)
purchase and sale of Government securities by the R.B.I.
D)
lending by scheduled banks to non-scheduled banks

Correct Answer : Option (C) - purchase and sale of Government securities by the R.B.I.


Open Market Operations (OMO) is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite. OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.

Published On : June 26, 2021
A)
The Reserve Bank of India
B)
The Central Government
C)
The State Bank of India
D)
The Planning Commission

Correct Answer : Option (A) - The Reserve Bank of India


Credit Control is an important tool used by Reserve Bank of India, a major weapon of the monetary policy used to control the demand and supply of money (liquidity) in the economy. Central Bank administers control over the credit that the commercial banks grant. Such a method is used by RBI to bring “Economic Development with Stability”. It means that banks will not only control inflationary trends in the economy but also boost economic growth which would ultimately lead to increase in real national income with stability.

Published On : June 26, 2021