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?
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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?
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.
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. 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?
Which of the following is generally the largest source for financing the ‘fiscal deficit’ of the Union government?
Consider the following statements:
1. Gross Domestic Product (GDP) at factor cost is gross domestic product at market prices, less net product taxes.
2. Gross Domestic Product (GDP) at factor cost measures final value of output produced by the firms within the domestic boundaries of a country in a year.
Which of the statements given above is/are correct?
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.
Select the correct answer using the code given below.
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?
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?
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?