Revision Series | Economy | Miscellaneous | 21

October 28, 2023

Which of the following best defines Old age dependency ratio?

(A) The number of persons in age group 60 years and above divided by the number of persons in age group 15-59 years above
(B) The number of persons in age group 60 years and above divided by the total population
(C) The number of persons in age group 15-59 years and above divided by the number of persons in age group 60 years above
(D) The number of persons in age group 15-59 years and above divided by total population

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Answer: (a)

Which of the following are the important indicators of the Physical Quality of Life Index (PQLI)?
1. Basic literacy rate
2. Life expectancy
3. Infant mortality
Select the answer using the codes given below:

(A) 2 and 3 only
(B) 2 only
(C) 1 and 3 only
(D) 1, 2 and 3

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Answer: (d)

Which of the following statement(s) is/are correct regarding GDP deflator?
1. GDP deflator covers the entire range of goods and services produced in the economy.
2. GDP deflator is seen as a more comprehensive measure of inflation than CPI.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (c)

Which of the following statement(s) is/are incorrect?
1. If the Cash Reserve Ratio (CRR) is high, the commercial bank’s capacity to create credit will be less.
2. Variable Cash Reserve Ratio as an objective of monetary policy was first suggested by J.M. Keynes.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (d)

How many of the below given pair(s) is/are correctly matched?
1. SMA-0 = Principal or interest payment overdue upto 30 days
2. SMA-1 = More than 30 days and upto 60 days
3. SMA-2 = More than 60 days and upto 90 days

(A) 1 pair only
(B) 2 pairs only
(C) All the pairs
(D) None of the pairs

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Answer: (c)

Which of the following statement(s) is/are correct regarding Standing Deposit Facility (SDF)?
1. It is an additional tool for absorbing liquidity by the RBI without offering any collateral in return.
2. The SDF was suggested in 2014 by a committee headed by former RBI Governor Raghuram Rajan.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (a)

The World Economic Outlook Report is released by?

(A) World Economic Forum
(B) World Bank
(C) Organisation for Economic Co-operation and Development
(D) International Monetary Fund

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Answer: (d)

Which of the following statement(s) is/are correct regarding Capital Adequacy Ratio?
1. It is a measurement of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures.
2. A bank having a low capital adequacy ratio is considered to be financially stable and safe.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (a)

Phillips Curve represents the relationship between which of the following?

(A) Gross value added and GDP
(B) Unemployment and inflation
(C) GDP growth and population growth
(D) Income inequality and economic growth

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Answer: (b)

The phenomenon where increased borrowing by the government to meet its spending needs causes a decrease in the quantity of funds that is available to meet the investment needs of the private sector, is known as-

(A) Crowding in
(B) Taper tantrums
(C) Crowding out
(D) None of the above

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Answer: (c)