Revision Series | Economy | Miscellaneous | 26

November 4, 2023

Which of the following statement(s) is/are correct regarding banks in India?
1. Regional Rural Banks (RRBs) are listed in the Schedule
2 of the RBI Act 1949. RRBs are required to provide 50% of their total credit as priority sector lending.
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)

Consider the following statements:
1. Welfare based definition of economics is given by Adam Smith.
2. Wealth based definition of economics is given by Alfred Marshall.
Which of the statement(s) given above is/are incorrect?

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

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Answer: (c)

Consider the following statements regarding the factors of production?
1. In economics, capital refers to that part of man-made wealth which is used for the further production of wealth.
2. Labour is the most perishable than other factors of production.
Which of the statement(s) given above is/are incorrect?

(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 correct?
1. The government should impose taxes in such a way that people have to pay according to their ability is termed as Canon of Equality.
2. Canon of Economy states that minimum possible money should be spent in the collection of taxes.
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 regarding money is incorrect?

(A) Fiduciary money depends for its value on the confidence that it will be generally accepted as a medium of exchange
(B) Plastic money promotes cashless transactions.
(C) Currency notes in India are Limited Legal Tender.
(D) Commodity Money was an integral part of the system of ‘Barter Exchange’.

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Answer: (c)

Consider the following statements regarding factor cost and market prices:
1. Taxes charged by the government are added to the factor price while subsides provided will be reduced from the factor price to arrive at the market price.
2. The factor cost refer to the cost of production that is incurred by a firm when producing goods and services.
Which of the statement(s) given above is/are incorrect?

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

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Answer: (d)

Lowering of repo rates are likely to cause which of the following?

(A) Decrease in consumption
(B) Increase cost of borrowing
(C) Encourage saving
(D) Increase borrowing and spending

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Answer: (d)

Which of the following statement(s) is/are correct?
1. The National Income at Current Prices is called Real National Income.
2. National Income at Constant Prices is called as Nominal National Income.
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)

Which of the following statement(s) is/are correct?
1. GDP as an indicator ignores social service done by people in its calculation.
2. GDP does not measure the indicators like happiness and health of people.
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 correct regarding Human Development Index?
1. Human Development Index is prepared by World Economic Forum.
2. Access to knowledge is one of its indicators.
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: (b)

Which of the following statement(s) is/are correct regarding Monetary policy Committee?
1. It is a six-member statutory committee.
2. It is required to meet at least four times a year.
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)