Revision Series | Economy | Miscellaneous | 31

November 11, 2023

Consider the following statements:
1. Transfer payments do not have any quid pro quo.
2. Foreign portfolio investment is included in current account.
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: (a)

How many of the below given pair(s) is/are correctly matched?
1. Depreciation of INR = Hurts the importers
2. Appreciation of INR = Hurts the exporters
3. Dirty float exchange rate = Government can never intervene

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

Show Answer

Answer: (b)

Consider the following statements:
1. India recently unveiled its Foreign Trade Policy (FTP) 2022-2027.
2. The Directorate General of Foreign Trade is responsible for drafting the FTP.
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: (b)

Which of the following is incorrect regarding the Positive Peace Index (PPI)?

(A) Positive Peace Index dataset was created by the Institute for Economics & Peace.
(B) Positive peace is used to create resilient and adaptive communities that prevent conflict and help societies channel disagreements productively.
(C) The framework for PPI is based on 24 domains.
(D) PPI is interconnected to the Global Peace Index

Show Answer

Answer: (c)

Which one of the following groups of items is included in India’s foreign-exchange reserves?

(A) Foreign-currency assets, Special Drawing Rights (SDRs) & loans from foreign countries
(B) Foreign-currency assets, reserve position with the IMF and SDRs
(C) Foreign-currency assets, loans from the World Bank and SDRs
(D) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

Show Answer

Answer: (b)

Which of the following statement(s) is/are incorrect?
1. Securities and Transaction Tax [STT] is levied at the time of purchase and sale of securities listed on stock exchanges in India.
2. This tax was introduced in Union Budget 2004.
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)

Which of the following is/are correct?
1. In case of Repo rate, Banks borrow short term funds by pledging government securities.
2. Under MSF, banks can borrow funds from the RBI by pledging government securities within the limits of the SLR.
3. The MSF rate is higher than the Repo Rate.
Select the answer using the codes below:

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

Show Answer

Answer: (d)

The famous ‘Frontiers Report’ is released by which of the following organizations?

(A) Reporters sans frontières
(B) United Nations Conference on Trade and Development (UNCTAD)
(C) World Trade Organisation (WTO)
(D) UN Environment Programme

Show Answer

Answer: (d)

Which of the following statement(s) is/are correct?
1. Effective Revenue deficit is a term introduced in the Union Budget 2011-12.
2. Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets.
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: (c)

Which of the following is incorrect regarding Regional rural Banks?

(A) Regional rural Banks are joint ventures between the Central government, State government and a Commercial Bank.
(B) RRBs are required to provide 90% of their total credit as priority sector lending. RRBs are registered under Regional Rural Bank Act, 1976.
(C) RRBs are registered under Regional Rural Bank Act, 1976.
(D) The area of operation for them is limited to the area notified by the government of India.

Show Answer

Answer: (b)