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 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 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.

Select the correct answer using the code given below.

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

In context of the difference between ‘devaluation and depreciation’, consider the following statements:

1. Devaluation is the deliberate downward adjustment of a country's currency value, whereas depreciation is a fall in the value of a currency.

2. Devaluation is more relevant in a fixed or semi-fixed exchange rate, whereas depreciation is more relevant in a floating exchange rate.

3. Devaluation makes imports more expensive, and exports more competitive, whereas depreciation makes imports cheaper, and exports less competitive.

Which of the statements given above are correct?

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?

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’? 

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 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:

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?