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?
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?
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?
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?
In context of a centrally planned economy, consider the following statements:
1. The government always intervenes to achieve an equitable distribution of the final mix of goods and services amongst the population.
2. All important decisions regarding production, exchange and consumption of goods and services are made by the government.
Which of the statement(s) 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.
Select the correct answer using the code given below.
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)’?
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. 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?
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.
Select the correct answer using the code given below: