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 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.

 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.

 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.

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?

In order to balance any deficit in its balance of payments, a country can use which of the following financial measures?

1. Surplus in the capital account.

2. Official reserve sale.

3. Autonomous Transactions.

4. Accommodating Transactions.

Select the correct answer using the code given below.

Read the following statements carefully with reference to ‘Factor Cost, Basic Price and Market Price’: 

1. Factor cost includes only the payment to factors of production. It does not include any tax. 

2. Market price is the factor cost including total indirect taxes but excluding total subsidies. 

3. Basic price includes production taxes (less production subsidies) but not product taxes (less product subsidies). 

In reference to the concepts of ‘Factor Cost, Basic Price and Market Price’, 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.

In order to balance any deficit in its balance of payments, a country can use which of the following financial measures?

1. Surplus in the capital account.

2. Official reserve sale.

3. Autonomous Transactions.

4. Accommodating Transactions.

Select the correct answer using the code given below.