INSIGHT UPSC QUIZ

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. 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?

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 effects of Globalisation?

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 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 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?

Which of the following economic terms reflects the total borrowing requirement of the Government?  

1. Fiscal Deficit

2. Revenue Deficit 

3. Effective Revenue Deficit 

4. Primary Deficit  

Select the correct answer using the code given below:

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:

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: