MCQ for test-10-6-december-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 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?

Consider the following statements with reference to different levels of economic integration:

1. In a Customs Union (CU), there is a free flow of labour and capital among member countries.

2. In a Common Market (CM), member countries abolish barriers to trade and service among them and as a whole maintain a common external tariff.

3. In an Economic and Monetary Union (EMU), the monetary and fiscal policies are harmonized among member countries.

Which of the statements given above are correct?

Consider the following statements with reference to Special Economic Zones (SEZ) in India:

1. They can be set up in any Domestic Tariff Area (DTA) as demarcated by the State Government.

2. Entities in it are fully exempted from Custom Duties if they are selling within the country.

3. Foreign companies are not allowed to set up these areas.

Which of the statements given above is/are not correct?

Consider the following statements about Preferential Trade Agreement (PTA):

1. In this type of agreement, two or more partners give preferential right of entry to all the products.

2. The tariffs on selected products are abolished completely.

3. There are two lists in PTAs: a positive list & a negative list.

4. A PTA reflects is a deeper form of trade engagement between two countries.

Which of the statements given above is/are correct?

Consider the following statements with reference to the Indian Councils Act of 1909:

1. It separated the provincial and central budgets for the first time.

2. It introduced separate electorates for Muslims as well as Anglo-Indians.

3. It provided for the appointment of an Indian to the Viceroy’s executive council.

Which of the statements given above are not correct?

Who among the following was associated with the Theosophical Movement in India?

1. Colonel M.S. Olcott

2. Madame H.P. Blavatsky

3. Rukmini Arundale

Select the correct answer using the code given below:

Consider the following:

1. Hartog Committee

2. Strachey Commission

3. Raleigh Commission

4. Aitchison Commission

5. Saddler Commission

Which of the above Committees are related to the development of education in British India?

With reference to Socio-Religious Organizations and societies, consider the following pairs:

Which of the pairs given above is/are not correctly matched?

A story was published in Indu Prakash - a Bombay daily newspaper - as a series of nine articles. Written by Sri Aurobindo Ghosh in 1893, this series of articles criticized the Moderate politics being practiced by Indian National Congress at that time. Later, it was published as a book.

The book in question refers to

Consider the following statement:

1. Inferior goods due to their quality become more desirable as the standard of living of consumers increases.

2. Veblen goods are high-quality goods whose demand increases with an increase in price.

3. Demand for Giffen goods increases even when their prices rise, regardless of a consumer's standard of living.

4. Demand for Normal goods will rise with the increase in the standard of living of consumers.

Which of the statements given above are not correct?

Consider the following statements with respect to the Marginal Cost of Funds Based Lending Rate (MCLR):

1. It is the maximum interest rate that can be charged on loans by the banks.

2. It is determined internally by the individual banks.

3. An increase in MCLR will make personal loans dearer for consumers.

Which of the statements given above is/are correct?

Consider the following statements in the context of global economy:

1. The term ‘soft landing’ implies a moderate slowdown of an economy following a period of growth.

2. A Central Bank of a country aims for a ‘soft landing’ when it raises interest rates to curb inflation.

Which of the statements given above is/are correct?

In the context of the Indian Economy, which of the following is correct about the ‘Kuznets curve’?