INSIGHT UPSC QUIZ

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?

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? 

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:

Which among the following are the effects of Globalisation?

1. Increase in employment opportunities.

2. Upliftment of standards of living. 

3. Reduction in economic disparities.

4. Rising income of the masses.

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?

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?

Consider the following statements:

1. RBI carries out the Open Market Operations (OMOs) through commercial banks and also directly with the public. 

2. If central bank signals that it will move to a ‘neutral’ liquidity stance from a ‘deficit’ stance, it means more liquidity is likely develop in the system in future. 

Which of the statements given above is/are correct?

To meet the requirements of the fiscal deficit, the Union government not only borrows directly from the public through debt instruments but also indirectly from commercial banks through:

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?