MCQOPTIONS
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MCQOPTIONS
This section includes 205 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
Lot of discussion is going on these days on the issue of |
| A. | It is an offshore derivative instrument used by overseas buyers/investors who shares of Indian companies listed in Indian Stock Exchange amonymously |
| B. | It is nothing but another name of the banking operation by which banks exchange Indian Rupees into US Dollars without depositing a single rupee in the account of the part who are NRIs. The entire Operation is carried out by the banks solely on the basis o |
| C. | It is nothing but a type of undertaking given to the banks that they should continue investing money in stock markets on behalf of NRIs and in case the market crashes NRIs will make the losses good without delay |
| D. | All the above |
| Answer» B. It is nothing but another name of the banking operation by which banks exchange Indian Rupees into US Dollars without depositing a single rupee in the account of the part who are NRIs. The entire Operation is carried out by the banks solely on the basis o | |
| 152. |
Shilling |
| A. | Kenya |
| B. | Sout Korea |
| C. | Israel |
| D. | Ghana |
| Answer» B. Sout Korea | |
| 153. |
The actual |
| A. | Probability risk |
| B. | Market risk |
| C. | Inflation risk |
| D. | Credit risk |
| Answer» C. Inflation risk | |
| 154. |
Who formulates the |
| A. | SEBI |
| B. | RBI |
| C. | Finance Ministry |
| D. | Planning Commission |
| Answer» D. Planning Commission | |
| 155. |
Very often we read in newspapers/ magazines about |
| A. | These are the funds or the reserves of a government or central ban of a country which are invested further to earn profitable returns |
| B. | These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several Years |
| C. | The funds which are created to be used as relief funds or bailout packages are known as sovereign funds |
| D. | Both 'b' and 'c' |
| Answer» B. These are the funds which were accumulated by some people over the years but were not put in active circulation as they retain them as Black Money for several Years | |
| 156. |
Money multiplier in India as defined as |
| A. | Broad Money / Base Money |
| B. | Broad Money / Reserve Money |
| C. | Reserve Money / Base Money |
| D. | Base Money/ Reserve Money |
| Answer» C. Reserve Money / Base Money | |
| 157. |
Inside trading is related to |
| A. | Share Market |
| B. | Horse racing |
| C. | Taxation |
| D. | Interantional trade |
| Answer» B. Horse racing | |
| 158. |
When the |
| A. | Discount yield |
| B. | Deflation |
| C. | Negative growth |
| D. | Market capitalism |
| Answer» C. Negative growth | |
| 159. |
Commercial paper is a source of credit for which one of the following? |
| A. | Corporate industry |
| B. | Small Scale Industries |
| C. | Commercial Banks |
| D. | Foreign Banks |
| Answer» B. Small Scale Industries | |
| 160. |
The base of Consumer Price Index (CPI) for industrial workers has been shifted from 1982 to |
| A. | 1998 |
| B. | 2000 |
| C. | 2001 |
| D. | 2002 |
| Answer» D. 2002 | |
| 161. |
Which of the following cannot be called a |
| A. | Certificate of Deposits |
| B. | Bonds |
| C. | Stocks |
| D. | Commercial Papers |
| Answer» D. Commercial Papers | |
| 162. |
The stock market index of |
| A. | Sensex |
| B. | NIFTY |
| C. | Footsic (FTSE) |
| D. | Bullish |
| Answer» D. Bullish | |
| 163. |
Which if the following is/are treated as artificial currency? |
| A. | ADR |
| B. | GDR |
| C. | SDR |
| D. | Both ADR and SDR |
| Answer» D. Both ADR and SDR | |
| 164. |
Who has the sole right to issue |
| A. | The Government of India |
| B. | The Finance Commission |
| C. | The Central Bank of India |
| D. | The Reserve Bank of India |
| Answer» E. | |
| 165. |
What is the name given to the common currency of the |
| A. | Rupee |
| B. | Rouble |
| C. | Franc |
| D. | Euro |
| Answer» E. | |
| 166. |
Economic growth usually coupled with |
| A. | Deflation |
| B. | Inflation |
| C. | Stagflation |
| D. | Hyper inflation |
| Answer» C. Stagflation | |
| 167. |
Many a time we see a term in newspaper |
| A. | Initial Public Offer |
| B. | Indian Public Offer |
| C. | Institutional Purchase Offer |
| D. | Industrial Punchase Offer |
| Answer» B. Indian Public Offer | |
| 168. |
Federal Reserves is the financial organisation of |
| A. | USA |
| B. | Britain |
| C. | France |
| D. | Japan |
| Answer» B. Britain | |
| 169. |
The existence of a |
| A. | makes the economy more competitive |
| B. | makes the monetary policies less effective |
| C. | ensure a better distribution of income and wealth |
| D. | ensure increasing productive investment |
| Answer» C. ensure a better distribution of income and wealth | |
| 170. |
Hawala |
| A. | Financial Action Task Force Acts |
| B. | Fiscal Responsibility and Budget Management Act |
| C. | Foreign Exchange Management Act |
| D. | Banking Regulation Act |
| Answer» D. Banking Regulation Act | |
| 171. |
Paper currency |
| A. | 1862 |
| B. | 1542 |
| C. | 1601 |
| D. | 1880 |
| Answer» C. 1601 | |
| 172. |
Money laundering |
| A. | placement of funds |
| B. | layering of funds |
| C. | integration of funds |
| D. | all the above |
| Answer» E. | |
| 173. |
In the parlance of |
| A. | Gold and Silver market |
| B. | Industrial securities market |
| C. | Market of safe securities |
| D. | Market of software technology products |
| Answer» D. Market of software technology products | |
| 174. |
At present |
| A. | partially convertible on current account |
| B. | fully convertible on current account |
| C. | partially convertible on capital account |
| D. | fully convertible on capital account |
| Answer» C. partially convertible on capital account | |
| 175. |
Consider the following of the rupee may mean |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 2 and 3 |
| D. | 1, 2 and 3 |
| Answer» B. 1 and 3 | |
| 176. |
High rates of interest in a |
| A. | attract people to make an investment |
| B. | discourage people to make an inverstment |
| C. | create atmosphere for capital formation |
| D. | are not favourable for credit expansion |
| Answer» B. discourage people to make an inverstment | |
| 177. |
Under the miminum reserve system, the |
| A. | 85 crore of rupees |
| B. | 115 crore of rupees |
| C. | 200 crore of rupees |
| D. | 210 crore of rupees |
| Answer» C. 200 crore of rupees | |
| 178. |
Guilt-edged |
| A. | Bullion market |
| B. | market of Government securities |
| C. | market of guns |
| D. | market of pure metals |
| Answer» C. market of guns | |
| 179. |
The investments done by 'those financial entities which were launched or incorporated in a foreign country but are investing in an Indian Venture in India' are generally known as |
| A. | Patent Money |
| B. | Private Equity |
| C. | Foreign Institutional Investment |
| D. | Current Account Money |
| Answer» D. Current Account Money | |
| 180. |
A rise in SENSEX means |
| A. | a rise in prices of shares of all companies registered with Bombay Stock Exchange |
| B. | a rise in prices of shares of all companies registered with National Stock Exchange |
| C. | an overall rise in prices fo shares of group up companies registered with Bombay Stock Exchange |
| D. | a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange |
| Answer» D. a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange | |
| 181. |
Many is 'Future Trading'? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» C. Only 3 | |
| 182. |
Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates? Policy to |
| A. | Capital Account Convertibility |
| B. | Financial Deficit Management |
| C. | Minimum Support Price |
| D. | Restrictive Trade Practices |
| Answer» B. Financial Deficit Management | |
| 183. |
Which amongst the following |
| A. | French Franc |
| B. | Swiss Franc |
| C. | Euro |
| D. | Pound Sterling |
| Answer» E. | |
| 184. |
A rapid increase in the rate of inflation is sometimes attributed to the 'Base Effect'. What is Base Effect? |
| A. | It is the impact of drastic deficiency in supply due to failure of crops |
| B. | it is the impact of the surge in demand due to rapid economic growth |
| C. | it is the impact of the price levels of previous year on the calculation of inflation rate |
| D. | None of the above |
| Answer» D. None of the above | |
| 185. |
What is an Indian Depository Receipt (IDR)? |
| A. | A deposit account with a public sector Bank |
| B. | A depository account with an y of the Depositories in India |
| C. | An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company |
| D. | An instrument in the form of deposit receipt issued by Indian depositories |
| Answer» D. An instrument in the form of deposit receipt issued by Indian depositories | |
| 186. |
Convertibility of the Rupee as it exists at present means |
| A. | Rupee is convertible into foreign currencies for all types of transactions |
| B. | Rupee is convertible into foreign currencies for trade transactions only |
| C. | Rupee is convertible into foreign currencies for all current transactions only |
| D. | Rupee is convertible into foreign currencies for capital transactions only |
| Answer» D. Rupee is convertible into foreign currencies for capital transactions only | |
| 187. |
Which one of the following statements about Foreign exchange reserves of India, is NOT true? |
| A. | It includes foreign currency assets and gold holdings of Reserve Bank of India |
| B. | It is maintained with the Reserve Bank of India |
| C. | Special Drawing Rights (SDRs) are not included in it |
| D. | Presently foreign exchange situation is satisfactory in India |
| Answer» D. Presently foreign exchange situation is satisfactory in India | |
| 188. |
India earns the maximum foreign exchange through export of |
| A. | leather goods |
| B. | handicrafts |
| C. | electronic goods |
| D. | engineering goods |
| Answer» D. engineering goods | |
| 189. |
Which of the following statements is relation to Bombay Stock Exchange, is correct? |
| A. | It is the oldest stock exchange of India |
| B. | It is knows by the name of Dalal Steet |
| C. | It's share index is known by the name of SENSEX |
| D. | All of the above |
| Answer» E. | |
| 190. |
The existence of a parallel economy of black Money |
| A. | makes the economy more competitive |
| B. | Makes the economy more competitive |
| C. | ensures a better distribution of income and wealth |
| D. | ensures increasing productive investment |
| Answer» C. ensures a better distribution of income and wealth | |
| 191. |
How many times has the Indian Currency been devalued so far? |
| A. | Five time |
| B. | three time |
| C. | one time |
| D. | two time |
| Answer» D. two time | |
| 192. |
The association of the rupee with pounds sterling as the interchange currency was broken in |
| A. | 1990 |
| B. | 1991 |
| C. | 1993 |
| D. | 1992 |
| Answer» E. | |
| 193. |
In the parlance of financial investments, the 'bear' denotes |
| A. | An investor who feels that the price of a particular security is going to fall. |
| B. | An investor who expects the price of particular shares to rise |
| C. | A shareholder or a bondholder who has an interest in a company, financial or otherwise |
| D. | Any lender whether by making a loan or buying a bond |
| Answer» B. An investor who expects the price of particular shares to rise | |
| 194. |
Many a time we read in the newspapers a term 'Hot Money'. Which of the following is the correct definition of Hot Money? |
| A. | This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence brings higher returns. |
| B. | This is the fund which is provided by a bank in US Dollar at very short notice and at a very high rate of interest and for a longer period of repayment |
| C. | This is the fund which is pushed into market through Hawala or some other such illegal method and is sometimes referred to also as Black Moeny |
| D. | Both 'a' and 'c' |
| Answer» B. This is the fund which is provided by a bank in US Dollar at very short notice and at a very high rate of interest and for a longer period of repayment | |
| 195. |
Which of the following is the correct definition of the term 'Commercial Papers'? |
| A. | It is nothing but the popular name of the judicial stamp papers used to register financial transactions |
| B. | It is one of the instruments through which corporates raise debt from the market |
| C. | It is the name of the 'Certificate of Deposits' provided by the Banks to its retail customers |
| D. | Both 'a' and 'b' |
| Answer» C. It is the name of the 'Certificate of Deposits' provided by the Banks to its retail customers | |
| 196. |
Microfinance is the provision of financial services to people of low-income groups. This included both the consumers and self-employed. The service/services rendered under micro-finance is/are |
| A. | 1 only |
| B. | 1 and 4 only |
| C. | 2 and 3 only |
| D. | 1, 2, 3 and 4 |
| Answer» E. | |
| 197. |
Consider the following statements and select the correct answer from the code given below |
| A. | Both (A) and (R) are true and R is the correct explanation of (A) |
| B. | Both (A) and (R) true but (R) is not a correct explanation of (A) |
| C. | (A) is true but (R) is false |
| D. | (A) is false but (R) is true |
| Answer» C. (A) is true but (R) is false | |
| 198. |
Money times we read a term 'Hot Money' in newspaper. What is/are the characteristics of Hot Money? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Only 3 |
| D. | All 1, 2 and 3 |
| Answer» C. Only 3 | |
| 199. |
Full convertibility of a rupee means |
| A. | Purchase of foreign exchange for rupees freely |
| B. | Payment for imports in terms of rupees |
| C. | Repayment of loansin terms of rupees |
| D. | determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply |
| Answer» E. | |
| 200. |
Which of the following organisations is known as the |
| A. | SEBI |
| B. | IBA |
| C. | AMFI |
| D. | NSDL |
| Answer» B. IBA | |