INSIGHT UPSC QUIZ

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?

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. 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 economic theory, a perfectly competitive market will have which of the following defining features?

 1. The market consists of a large number of buyers and sellers. 

 2. Each firm can produce and sell all types of products. 

 3. Entry into the market as well as exit from the market are free for firms.

Select the correct answer using the code given below:

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?

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

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 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)’?

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.