September 27, 2023

Indian Economy Quiz: Day 94

February 20, 2023
With reference to the Indian economy, consider the following statements:
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
Which of the statements given below is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (b)

How many of the below given pair(s) is/are correctly matched?
1. Blue hydrogen Carbon generated from steam
2. Brown hydrogen CO2 and carbon monoxide generated
3. Green hydrogen Electrolysis
  • (A) 1 pair only
  • (B) 2 pairs only
  • (C) All the pairs
  • (D) None of the pairs
Show Answer

Answer: (c)

Which of the following is/are correct regarding the recently unveiled Utkarsh 2.0?
1. It will guide the Reserve Bank of India over the period 2023-2025.
2. The first strategy framework namely, Utkarsh 2022 covering the period 2019-2022 was launched in July 2019.
Select the answer using the codes:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (c)

  • The Reserve Bank of India’s Medium-term Strategy Framework for the period 2023- 2025 ‘Utkarsh 2.0’ was launched by the Governor of RBI.
  • The Vision in Utkarsh 2.0 that will guide the RBI over the period 2023-25 are:
  1. Excellence in performance of its functions;
  2. Strengthened trust of citizens and Institutions in the RBI;
  3. Enhanced relevance and significance in national and global roles;
  4. Transparent, accountable and ethics-driven internal governance;
  5. Best-in-class and environment-friendly digital and physical infrastructure; and
  6. Innovative, dynamic and skilled human resources.
"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following ?
  • (A) Asian Development Bank
  • (B) International Monetary Fund
  • (C) United Nations Environment Programme Finance Initiative
  • (D) World Bank
Show Answer

Answer: (b)

Which of the following statements is/are correct regarding Domestic- Systematically Important Banks (DSIBs)?
1. Banks whose assets cross 2% of the GDP are considered DSIBs.
2. D-SIBs are categorised under fifteen buckets.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (a)

  • DSIBs are also referred to as“Too Big To Fall” (TBTF)because of their size, cross jurisdictional activities, complexity and lack of substitute and interconnection.
  • Banks whose assetscross 2% of the GDP are considered DSIBs. If these banks fail, they can have a disruptive effect on the economy.
  • D-SIBs are categorised under five buckets.
Which one of the following is not correct regarding the Purchasing Managers' Index (PMI)?
  • (A) The PMI data is released at the beginning of every month
  • (B) PMI below 50 represents an expansion
  • (C) It is an indicator of business activity both in manufacturing and services sectors. 
  • (D) None of the above
Show Answer

Answer: (b)

Consider the following statement:
1 The N.K. Singh panel to review India’s fiscal discipline rules has recommended a debt-to-GDP ratio of 38.7% for the central government.
2. Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
Select the correct statements using the code given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
Show Answer

Answer: (c)

  • It is used as a measure to determine how well the government controls a country’s economic resources.
  • The tax to GDP ratio measures the size of a country’s tax revenue compared to its GDP.
  • The higher the tax to GDP ratio, the better the country’s financial position.
  • The ratio denotes the government’s ability to fund its expenditures.
  • A greater tax to GDP ratio indicates that the government can cast a wider fiscal net.
  • It helps a government become less reliant on borrowing.
Which of the following is incorrect regarding poverty line?
  • (A) Alagh Committee constructed a poverty line for rural and urban areas on the basis of nutritional requirements.
  • (B) Tendulkar committee recommended using Mixed Reference Period.
  • (C) The World Bank in 2022 updated the international poverty line from $1.90 to $2 per person per day.
  • (D) None of the above
Show Answer

Answer: (c)

  • In September 2022 the international poverty line is being updated from $1.90 to $2.15 per person per day.
This Plan saw the refusal of supply of essential equipments and raw materials from the allies during Indo Pak war resulted in twin objectives of “ growth with stability “ and “progressive achievement of self reliance “ for this plan. Which plan is being referred to here?
  • (A) Fourth Five year Plan
  • (B) Fifth Five year Plan
  • (C) Third Five year Plan
  • (D) Sixth Five year Plan
Show Answer

Answer: (a)

Consider the following statements?
1 Index of Industrial Production is compiled and published monthly by the National Statistical Office.
2. The base year for IIP is 2011-2012.
Which of the above given statement(s) is/are incorrect?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor
Show Answer

Answer: (d)

Which of the following statement(s) is/are incorrect?
1 The law of supply says that at higher prices, sellers will supply more of an economic good.
2. The law of demand says that at higher prices, buyers will demand less of an economic good.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (d)

  • The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded.
  • The law of supply says that at higher prices, sellers will supply more of an economic good.
Consider the following statements?
1 The real interest rate refers to the interest rate before taking inflation into account.
2. A nominal interest rate adjusts the observed market interest rate for the effects of inflation.
Which of the above given statement(s) is/are correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Show Answer

Answer: (d)

In which year did India start the decennially conducted Census?
  • (A) 1901
  • (B) 1881
  • (C) 1931
  • (D) 1911
Show Answer

Answer: (b)

India has conducted the Census every 10 years since 1881; only 2021, a pandemic ­affected year, was an exception as the exercise was postponed

Which city is hosted the 17th Pravasi Bharatiya Divas Convention?
  • (A) Gandhinagar
  • (B) Indore
  • (C) Gurugram
  • (D) Hyderabad
Show Answer

Answer: (b)

  • The 17th Pravasi Bharatiya Divas Convention was organised in partnership with the Madhya Pradesh Government from 08-10 January 2023 in Indore.
  • The theme of this PBD Convention is “Diaspora: Reliable partners for India’s progress in Amrit Kaal”.
  • Addressing Youth Pravasi Bharatiya Divas, 2023, the first event of the 17th Pravasi Bharatiya Divas Convention, in Indore, Mr. Jaishankar said the young members of the Indian diaspora could learn values and traditions from such institutions to stay connected to their Indian roots.
Consider the following statements:
1 The Code on Social Security, 2020 defined “gig worker” as a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship.
2. Traditional workers have a long-term employer-employee relationship in which the worker is paid by the hour or year, earning a wage or salary.
Select the correct statement(s) using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None of the above
Show Answer

Answer: (c)

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