INSIGHT UPSC QUIZ

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. 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?

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. In microeconomics, we study the behaviour of individual economic agents in the markets for different goods and services. 

2. In macroeconomics, focus is on the overall performance of the economy.

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

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?

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?

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?

With reference to a normal Union Budget, consider the following types of deficits:

1. Fiscal Deficit.

2. Revenue Deficit.

3. Effective Revenue Deficit.

4. Primary Deficit.

Arrange the types of deficits mentioned above in decreasing order and select the correct answer using codes given below:

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?