Indian Economy GK Questions and Answers – Part 4

31. Since 1983, the RBI’s responsibility with respect to regional rural banks was transferred to
A. ARDC           B. SBI
C. NABARD     D. PACs
Answer:
C. NABARD

32. Deficit financing implies
A. printing new currency notes
B. replacing new currency with worn out currency
C. public expenditure in excess of public revenue
D. public revenue in excess of public expenditure
Answer:
C. public expenditure in excess of public revenue

33. In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?
A. Change in quantity of money – change in investment – change in employment and output – change in rate of interest – change in price level
B. Change in quantity of money – change in employment and output – change in investment – change in the rate of interest – change in price level
C. Change in quantity of money – change in investment – change in rate of interest – change in employment and output – change in price level
D. Change in quantity of money – change in rate of interest – change in investment – change in employment and output – change in price level
Answer:
D. Change in quantity of money – change in rate of interest – change in investment – change in employment and output – change in price level

34. Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to
A. 80 percent
B. 83 percent
C. 90 percent
D. 100 percent
Answer:
D. 100 percent

35. 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. offer commercial banks more credit in the open market
D. openly announce to the market that it intends to expand credit
Answer:
C. offer commercial banks more credit in the open market

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

37. Short-term finance is usually for a period ranging up to
A. 5 months
B. 10 months
C. 12 months
D. 15 months
Answer:
C. 12 months

38. In India, which one among the following formulates the fiscal policy?
A. Planning Commission
B. Ministry of Finance
C. Finance Commission
D. The Reserve Bank of India
Answer:
B. Ministry of Finance

39. The budget deficit means
A. the excess of total expenditure, including loans, net of lending over revenue receipts
B. difference between revenue receipts and revenue expenditure
C. difference between all receipts and all the expenditure
D. fiscal deficit less interest payments
Answer:
C. difference between all receipts and all the expenditure

40. Which of the following is not a part of machinery that settles industrial disputes?
A. Wage Court
B. Works Committee
C. Conciliation officers
D. Board of Conciliation
Answer:
A. Wage Court

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