INSIGHT UPSC QUIZ

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.

Select the correct answer using the code given below.

Consider the following statements:

1. The demand for every good in the market has a direct relationship with increase or decrease in its price.

2. Price elasticity is a measure of the change in demand of product/service in response to changes in income of consumers.

Which of the statement(s) given above is/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.

Select the correct answer using the code given below:

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?

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 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.

Select the correct answer using the code given below.

 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?

The central and state governments in India are taking special steps to attract foreign companies to invest in India. In this context, consider the following initiatives and select the correct answer using the code given below:

 1. Setting up of Special Economic Zones.

2. Reforms in labour laws.

3. Increase in forex reserves.

4. Reduction in import duties.

Which of these initiatives have been undertaken by central and state governments in India to attract foreign investment?

Read the following statements carefully in the context of ‘Gross Domestic Product at Market Prices’:

1. It is the market value of all final goods and services produced within a domestic territory of a country measured in a year.

2. It includes all production done by national residents or the non-residents in a country.

3. It excludes all production done by residents in a country if the production is owned by a foreign company.

Which of the statements given above is/are correct?

Which of the following is generally the largest source for financing the ‘fiscal deficit’ of the Union government?