Which among the following are the merits of ‘flexible exchange rate system’ over ‘fixed exchange rate system’?
1. The government does not need to maintain large stock of foreign exchange reserves.
2. Movements in the exchange rate are managed by the central banks by buying and selling foreign currencies.
3. The countries gain autonomy in conducting their monetary policies.
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Which of the following conditions can increase the acceptability of a national currency to be used as an international medium of exchange?
1. The amount of goods that can be bought with a certain amount of that currency does not change frequently.
2. The national currency is freely convertible at a fixed price into another asset like gold.
3. The issuing authority has full control over the value of that asset into which the currency can be converted.
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Consider the following statements:
1. Profit is the difference between total revenue and total cost.
2. With the increase in output the total profit of the company always increases.
Which of the statement(s) given above is/are correct?
Consider the following statements:
1. Gross Domestic Product (GDP) at factor cost is gross domestic product at market prices, less net product taxes.
2. Gross Domestic Product (GDP) at factor cost measures final value of output produced by the firms within the domestic boundaries of a country in a year.
Which of the statements given above is/are correct?
Which among the following are the effects of Globalisation?
1.
Which of the following economic terms reflects the total borrowing requirement of the Government?
1. Fiscal Deficit
2. Revenue Deficit
3. Effective Revenue Deficit
4. Primary Deficit
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Which of the following is generally the largest source for financing the ‘fiscal deficit’ of the Union government?
Which of the following statements regarding the differences between Consumer Price Index (CPI) and GDP Deflator are correct?
1. While CPI does not represent all the goods which are produced in a country, GDP deflator takes into account all such goods and services.
2. While CPI does not include prices of imported goods, GDP deflator includes prices of imported goods.
3. While the weights are constant in CPI, they differ according to production level of each good in GDP deflator.
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Consider the following statements:
1. Reserve Bank of India allowed stock exchanges to start the T+1 Settlement system for completion of share transactions.
2. T+1 settlement system will help in reducing the number of outstanding unsettled trades at any instant.
3. A shortened cycle not only reduces settlement time but also frees up the capital required to collateralize that risk.
Which of the statement(s) given above is/are correct?
In context of a centrally planned economy, consider the following statements:
1. The government always intervenes to achieve an equitable distribution of the final mix of goods and services amongst the population.
2. All important decisions regarding production, exchange and consumption of goods and services are made by the government.
Which of the statement(s) given above is/are correct?
Which of the following would result in appreciation of the domestic currency (rupee) in terms of foreign currency (US dollar)?
1. Rise in the interest rates in India.
2. Increase in income of Indians in comparison to Americans.
2. Aggregate demand of India grows faster than the rest of the world’s demand.
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