INSIGHT UPSC QUIZ

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:

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?

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 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:

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?

Which of the following conditions can increase the acceptability of a national currency to be used as an international medium of exchange?

1. The amount of goods that can be bought with a certain amount of that currency does not change frequently. 

2. The national currency is freely convertible at a fixed price into another asset like gold.

3. The issuing authority has full control over the value of that asset into which the currency can be converted.

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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 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.

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

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?