INSIGHT UPSC QUIZ

With reference to the sources of credit in Indian economy, consider the following statements: 

1. Reserve Bank of India supervises the functioning of formal sources of loans. 

2. The Cooperatives supervise the credit activities of lenders in the informal sector.

Which of the statement(s) given above is/are NOT correct?

 Which of the following types of deposits are regarded as part of money supply?

1. Currency (notes plus coins) held by the public.

2. Net demand deposits held by commercial banks. 

3. Net time deposits of commercial banks.

4. Savings deposits with Post Office savings banks.

5. Interbank deposits which a commercial bank holds in other commercial banks.

Select the correct answer using the code given below.

In context of the relationship between ‘interest rates and demand for money’, consider the following statements:

1. The purchasing power of money increases with the rising price level.

2. When interest rate goes up, people become less interested in holding money.

3. At higher interest rate, the demand for money comes down. 

Which of the statements given above are correct?

Consider the following components: 

1. Foreign Direct Investments.

2. Foreign Institutional Investments. 

3. Remittances.

4. External Commercial Borrowings.

Which of the components of capital inflow mentioned above form part of ‘Capital Account’? 

 Open Market Operations are defined as purchase and sale by central bank of variety of assets such as:

1. Foreign exchange.

2. Gold.

3. Government securities.

4. Treasury bills.

5. Company shares.

Select the correct answer using the code given below.

 Consider the following instruments of ‘Monetary Policy’: 

1. Cash Reserve Ratio. 

2. Statutory Liquidity Ratio. 

3. Marginal Requirement.

4. Open Market Operations.

Which of the instruments given above are the ‘quantitative instruments’ of Monetary Policy? 

Which among the following are the examples of ‘indirect taxes’? 

1. Wealth tax 

2. Excise taxes 

3. Corporation tax

4. Customs duties 

5. Service tax 

Select the correct answer using the code given below.

With reference to the state of Indian economy, consider the following statements:

1. Tax incentives provided to foreign investors reduces the scope for raising tax revenues.

2. Tax imposition on the private sector has negative impact on developmental and welfare expenditures. 

3. Tariff reductions results in higher revenue through custom duties. 

Select the correct answer using the code given below:

The term “liquidity trap” in an economy refers to:

1. People preferring to hold their wealth in money balance.

2. Additional money injected is unable to increase the demand for bonds.

3. Increase in money supply is unable to lower the rate of interest.

Which of the statements given above are correct?

 Which of the following are the examples of ‘Capital Receipts’? 

1. Loans received from foreign Governments.

2. Cash grants-in-aid from foreign countries and international organisations.

3. Recoveries of loans from the government of States and Union Territories.

4. Loans raised by the Government from public.

5. Borrowings from the Reserve Bank of India through the sale of Treasury Bills.

Select the correct answer using the code given below.