MCQ for mcq-test-10-2nd-august-2023

Which among the following factors can have a positive impact on India’s Balance of Trade?

1. Depreciation of rupee value against US Dollar

2. Imposing Minimum Import Price on raw materials

3. Adopting contractionary monetary policy by the RBI

4. Increase in external borrowing by the Government

Select the correct answer using the code given below.

What could be the effects on the Indian economy if the value of the Chinese Yuan slips against the US dollar?

1. The rate of the Indian rupee will appreciate with respect to the US dollar.

2. Tourists’ inflows and outflows from India, will increase drastically.

3. Indian exports will become competitive in the global markets.

Which of the statements given above is/are correct?

Consider the following statements with reference to forex reserves:

1. It may include foreign currencies, bonds, treasury bills, and other government securities.

2. Foreign currency assets constitute the largest component of India's Forex Reserves.

3. Currently India holds the largest forex reserves in the world.

Which of the statements given above are correct?

Consider the following statements with reference to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI):

1. An increase in net FPI outflows improves the Balance of Payments (BoP) position of an economy.

2. If the investment holding in an FDI comes below 10%, then the holdings are reclassified as FPI.

3. Unlike FDI, FPI investors have no control over ventures or direct ownership of property or a stake in a company.

Which of the statements given above is/are correct?

Non-Resident Indians are permitted to invest in which of the following sectors?

1. Small Savings Schemes

2. Real Estate

3. Government securities

4. Mutual funds

Select the correct answer using the code given below.

Consider the following statements with reference to Forward Exchange Rate:

1. It is the rate of exchange for a future dated foreign exchange market transaction.

2. Its adoption helps in avoiding the exchange rate risks of foreign currencies.

3. Forward premium occurs when the forward exchange rate is quoted lower than the spot exchange rate.

Which of the statements given above are correct?

Consider the following statements with reference to the Line of Credit (LOC) extended by the Government of India:

1. It is a one-time development grant provided to developing countries by the Indian Government.

2. Under it, goods and services for at least 75% of the value of the contract must be sourced from India.

3. The full amount extended through LOCs should exclusively be on a Government-to-Government basis.

4. Bangladesh has been the recipient of the largest concessional credit given by India to any single country.

Which of the statements given above are correct?

Consider the following statements with reference to Current Account Deficit (CAD):

1. Depreciation in the value of Indian rupee against US Dollar has a positive impact on India’s CAD.

2. Liberalising External Commercial Borrowing norms for corporates can directly lead to reduction in India’s CAD.

3. Insurances paid on Indian exports are included under invisibles while calculating CAD.

4. The Fiscal Responsibility and Budget Management Act, 2003 provides a statutory framework for reducing CAD in India.

Which of the statements given above are correct?

Which of the following situations can make India’s exports more competitive?

1. Devaluation of rupee

2. Increase in the rate of inflation in India

3. Increase in productivity of India's workforce

Select the correct answer using the code given below:

Which of the following could be the implications on the Indian economy, if the Organization of the Petroleum Exporting Countries (OPEC) decides to increase their crude oil production?

1. Demand-pull Inflation will occur.

2. Increase in India’s Current Account Deficit.

3. Appreciation of Indian Rupee against US dollar.

Select the correct answer using the codes given below.

Consider the following statements with reference to Liberalised Remittance Scheme (LRS):

1. All resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year.

2. The remitted amount can be used to buy immovable properties in an overseas market.

3. The scheme is not available to corporates and partnership firms.

Which of the statements given above is/are correct?

Which of the following are likely consequences if the Indian Rupee has full Capital Account Convertibility?

1. Increase in financial market liquidity

2. Access to Foreign Capital becomes easy

3. Volatility in the exchange rate

Select the correct answer using the code given below.

Which of the following can be the most likely causes for the decline in the Forex Reserve of India?

1. Rise in crude oil prices

2. Dollar sell-off by Reserve Bank of India (RBI)

3. Outflow of Foreign Portfolio Investment (FPI)

4. Quantitative Easing by USA Federal Reserve

Select the correct answer using the code given below.

If the US Central Bank raises the interest rate, which of the following is the likely impact on the Indian economy?

Which one of the following best explains the term ‘Economies of scale’?

Consider the following statements:

1. Hallmarking is mandatory for selling diamond jewellery in India.

2. Gold watches and fountain pens are exempted from mandatory hallmarking.

3. The standards for hallmarking for jewellery are prescribed by the India Bullion and Jewellers Association.

Which of the statements given above is/are correct?

Consider the following statements with reference to National Monetisation Pipeline (NMP):

1. It is designed to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term capital.

2. NMP helps realise value from idle assets by transferring ownership in the projects to private parties.

Which of the statements given above is/are correct?

Consider the following statements with reference to National Infrastructure Pipeline (NIP):

1. It is a group of social and economic infrastructure projects that aims to achieve the $5 trillion economy by 2024-25.

2. Entire cost of the NIP is shared equally between the Central and the concerned State Governments.

Which of the statements given above are correct?

Consider the following statements with reference to Micro Small and Medium Enterprises (MSMEs):

1. It is given exclusive right to produce items like wax candles, laundry soap and glass bangles.

2. Central Public Sector Enterprises are required to procure 20 per cent of their total purchase from MSMEs.

3. Retail and wholesale trade is classified as MSMEs by the Government.

Which of the statements given above is/are correct?

Kessler Syndrome, often seen in the news, is:

With reference to the Coronal Mass Ejections (CMEs), which one of the following statements is not correct?

Which one of the following missions has confirmed the on-site presence of water on the Moon?

Consider the following statements with reference to Dedicated Freight Corridors (DFC):

1. The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is a special purpose vehicle functioning under the Ministry of Railways.

2. Ports like Mundra, Kandla and Pipavav would be served through feeder routes by the western dedicated corridor.

3. Eastern dedicated freight corridor will pass through states of Punjab, Haryana, Uttar Pradesh, Bihar and Jharkhand only.

Which of the statements given above is/are correct?

Consider the following statements with reference to Government e-Marketplace (GeM):

1. It is a 100% government-owned company set up under the aegis of the Ministry of Commerce and Industry.

2. Only Indian goods can be listed on the GeM portal for public procurement.

3. Individual citizens are not permitted to purchase goods and services from the GeM.

Which of the statements given above is/are correct?

With reference to ‘Black holes’, consider the following statements:

1. It is a place with very high gravity from which even light cannot escape. 

2. They are formed when a star collapses under its own gravity. 

3. Singularity and event horizon are two parts of a black hole.

4. Sagittarius A is a black hole located in the Milky Way galaxy.

Which of the statements given above are correct?