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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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 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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In context of economic theory, a perfectly competitive market will have which of the following defining features?
1. The market consists of a large number of buyers and sellers.
2. Each firm can produce and sell all types of products.
3. Entry into the market as well as exit from the market are free for firms.
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With reference to market economy, consider the following statements:
1. All economic activities are organised through the market.
2. In a market system, all goods or services come with a price.
3. Information about how much and what to produce is provided by the government.
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To meet the requirements of the fiscal deficit, the Union government not only borrows directly from the public through debt instruments but also indirectly from commercial banks through:
Consider the following statements about the ‘Cash Reserve Ratio (CRR)’:
1. It is the percentage of deposits which every bank must keep as cash reserves with the central bank.
2. Banks cannot lend the CRR money to corporates or individual borrowers but they can use that money for investment purposes.
3. Banks earn interest on the CRR money kept with the central bank.
Which of the statements given above is/are correct?
Consider the following statements:
1. RBI carries out the Open Market Operations (OMOs) through commercial banks and also directly with the public.
2. If central bank signals that it will move to a ‘neutral’ liquidity stance from a ‘deficit’ stance, it means more liquidity is likely develop in the system in future.
Which of the statements given above is/are correct?
Consider the following statements with reference to the differences between the ‘Real GDP and Nominal GDP’:
1. Nominal GDP is also known as GDP at constant prices.
2. Real GDP is Nominal GDP adjusted for inflation.
3. Nominal GDP growth is higher than real GDP growth.
Which of the statements given above are correct?
With reference to Indian Economy, which among the following is/are classified as foreign investment:
1. Investment made by Multinational Corporations (MNCs).
2. FDI under government route.
3. External Commercial Borrowings.
4. Foreign investor investing in an Indian small scale industrial unit.
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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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