INSIGHT UPSC QUIZ

The term “liquidity trap” in an economy refers to:

1. People preferring to hold their wealth in money balance.

2. Additional money injected is unable to increase the demand for bonds.

3. Increase in money supply is unable to lower the rate of interest.

Which of the statements given above are correct?

With reference to the sources of credit in Indian economy, consider the following statements: 

1. Reserve Bank of India supervises the functioning of formal sources of loans. 

2. The Cooperatives supervise the credit activities of lenders in the informal sector.

Which of the statement(s) given above is/are NOT correct?

 Open Market Operations are defined as purchase and sale by central bank of variety of assets such as:

1. Foreign exchange.

2. Gold.

3. Government securities.

4. Treasury bills.

5. Company shares.

Select the correct answer using the code given below.

 Consider the following instruments of ‘Monetary Policy’: 

1. Cash Reserve Ratio. 

2. Statutory Liquidity Ratio. 

3. Marginal Requirement.

4. Open Market Operations.

Which of the instruments given above are the ‘quantitative instruments’ of Monetary Policy? 

 Which of the following are the examples of ‘Capital Receipts’? 

1. Loans received from foreign Governments.

2. Cash grants-in-aid from foreign countries and international organisations.

3. Recoveries of loans from the government of States and Union Territories.

4. Loans raised by the Government from public.

5. Borrowings from the Reserve Bank of India through the sale of Treasury Bills.

Select the correct answer using the code given below.

Consider the following statements: 

1. It acts as a medium of exchange. 

2. It acts as a convenient unit of account.

3. It act as a store of value for individuals. 

4. It helps to preserve the purchasing power against the rising price level.

Which of the statements mentioned above are the functions of ‘Money’? Select the correct answer using the codes given below:

Which among the following are the examples of ‘indirect taxes’? 

1. Wealth tax 

2. Excise taxes 

3. Corporation tax

4. Customs duties 

5. Service tax 

Select the correct answer using the code given below.

Deviations from the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 are allowed under which of the following cases?

1. Implementation of the Core of the Core Schemes of the Union Government.

2. Collapse of agriculture severely affecting farm output and incomes.

3. Structural reforms in the economy with unanticipated fiscal implications.

4. Decline in real output growth of a quarter by at least three per cent points below its average of the previous four quarters.

Select the correct answer using the code given below.

In order to balance any deficit in its balance of payments, a country can use which of the following financial measures?

1. Surplus in the capital account.

2. Official reserve sale.

3. Autonomous Transactions.

4. Accommodating Transactions.

Select the correct answer using the code given below.

Consider the following components: 

1. Foreign Direct Investments.

2. Foreign Institutional Investments. 

3. Remittances.

4. External Commercial Borrowings.

Which of the components of capital inflow mentioned above form part of ‘Capital Account’?