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 is generally the largest source for financing the ‘fiscal deficit’ of the Union government?
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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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 with reference to ‘Balance of Trade (BOT)’:
1. Difference between value of exports and value of imports of goods of a country in a given period of time.
2. Difference between the value of exports and value of imports of services of a country in a given period of time.
3. Difference between the value of exports and value of imports of services and assets of a country in a given period of time.
4. Difference between the value of capital account and the value of current account of a country in a given period of time.
Which of the statements given above correctly defines the term ‘Balance of Trade (BOT)’?
Which among the following are the effects of Globalisation?
1.
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?
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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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. It issues currency of the country.
2. It controls money supply of the country.
3. It acts as a banker to the government.
4. It acts as a bank to the banking system.
5. It is the lender of last resort.
Which of the statements given above correctly define the functions of ‘Reserve Bank of India’?
Consider the following statements:
1. A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries.
2. The capital account deals with the change in ownership of a country’s assets, and the current account reflects the change in a country’s net income.
3. Developing nations typically run very large capital account deficits in proportion to their GDP, which are financed by loans and grants on the current account.
Which of the statements given above is/are correct?