Revision Series | Economy | Miscellaneous | 53

December 14, 2023

Consider the following statements:
1. Central bank digital currency was announced in the Union Budget 2022-23.
2. They are similar to cryptocurrencies, except that their value is fixed by the central bank and equivalent to the country’s fiat currency.
elect 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

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Answer: (C)

Consider the following statements:
1. Fiat money is a government-issued currency that has no backing from a physical commodity like gold.
2. It is considered a form of legal tender that can be used to exchange for goods and services.
Select the incorrect 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: (d)

Consider the following statements:
1. India has a 4% share of the global trade in textiles and apparel.
2. India is also the 2nd largest producer of silk in the world and 95% of the world’s hand-woven fabric comes from India.
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

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Answer: (C)

Name the Central government scheme, launched in September, that is aimed at supporting and providing skill-upgrade training to artisans and craftspeople?

(A) Pradhan Mantri Vaya Vandana Yojana.
(B) Rashtriya Vayoshri Yojana.
(C) PM SVANidhi.
(D) PM Vishwakarma Scheme.

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Answer: (D)

What is a Special Mention Account?

(A) Those accounts that have the potential to become an NPA/Stressed Asset.
(B) These are Personal Accounts which are related with individuals, companies, firms, groups of associations etc.
(C) Accounts that are a representative of some person are called as representative accounts.
(D) These are the assets or possessions that do not have physical existence but can be measured in terms of money.

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Answer: (a)

Which of the following parameters form the basis for the difference between Nonbanking Financial Companies (NBFCs) visa-vis Banks?

(A) NBFCs cannot accept demand deposits.
(B) NBFCs do not form part of the Payment and Settlement System.
(C) NBFCs are not under the purview of the deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation
(D) All of the above

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Answer: (d)

Which of the following are features of Socialistic economy?

(A) Equality of Income
(B) Maximum Social Benefit
(C) Classless Society
(D) All of the above

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Answer: (D)

Which of these are included in IMF’s Special Drawing Rights?
1. U.S. dollar
2. Euro
3. Renminbi
4. Pound sterling
Select the answer using the codes given below:

(A) 1, 3 and 4 only
(B) 2, 3 and 4 only
(C) 1, 2 and 3 only
(D) All of the above

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Answer: (d)

Laffer Curve represents the relationship between which of the following?

(A) Gross value added and GDP
(B) Rates of taxation and the resulting levels of government revenue
(C) GDP growth and population growth
(D) Income inequality and economic growth

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Answer: (b)

Which of the following statement(s) is/are correct regarding a market determined exchange rate system?
1. Imposing tariff may not help in improving trade balance as the exchange rate moves to offset the tariff.
2. The exchange rate depends on the demand and supply of the two currencies.
Select the answer 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)