Economics Mock Test series - 2

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If the tax rate increases with the higher level of income, it shall be called

Proportional Tax

Lumpsum Tax

Regressive Tax

Progressive Tax

Fiscal deficit is

total payments less total receipts

total income less government borrowing

total expenditure less total receipts excluding borrowing

total payments less capital receipts

Which of the following indicates a mechanism used by commercial banks for providing credit to the Government?

Cash Credit Ratio

Liquidity Adjustment Facility

Debt Service Obligation

Statutory Liquidity Ratio

The term 'Micro Economics' and 'Macro Economics' were coined by

JM Keynes

Ragner Nurkse

Alfred Marshall

Ragner Frisch

Devaluation of currency leads to

expansion of import substitution

all of the above

contraction of import trade

a expansion of export trade

What is the full form of SEZ?

Special Enforcement Zone

Special Economic Zone

Small Economic Zone

Service and Economic Zone

What is Hot money?

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.

This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence brings higher returns.

Both A and B

This is the fund which is pushed into market through Hawala or some other such illegal method and sometimes referred to also as Black Money.

Economic Planning is in

Union List

State List

Concurrent List

not any specific list

From which year was the FEMA promulgated?

2003

2002

2000

1999

10.

What is Repo Rate?

It is a rate at which RBI buys Government securities from banks.

It is a rate at which RBI allows small loans in the market.

It is a rate at which is offered by banks to their most valued customers or prime customers.

It is a rate at which RBI sells Government securities to banks.

11.

Insurance Service provided by various banks is commonly known as

Micro Finance

Merchant Banking

Portfolio Management

Investment Banking

12.

The term 'Paper Gold' means

Currencies still on Gold standard

Special Drawing Rights(SDR) of the IMF

Special accommodation facility of the world bank

Deficit financing

13.

Green Banking means

Development of forestry by banks

Financing of environmental friendly projects by banks

None of the above

Financing of irrigation projects by banks

14.

Long term funds in the capital market can be raised either by borrowing from certain institutions or through

taking loan from Government

taking loan from foreign institutions

issue of note

issue of securities

15.

The largest public sector commercial bank of India is the

Union Bank of India

State Bank of India

Reserve Bank of India

Bank of India

16.

The recommendations of Kelkar Task Force is associated with

Foreign Investments

Taxes

Business

Banking

17.

Which accounts are known as Demat Accounts?

Accounts in which shares of various companies are traded in electronic form

Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there.

Accounts which are operated through internet banking facility.

Accounts which are Zero Balance Accounts

18.

Fiscal Responsibility and Budget Management Act concerns

Revenue deficit only

Neither fiscal deficit nor revenue deficit

Fiscal deficit only

Both fiscal deficit and revenue deficit

19.

Bad loans in banking terminology are generally known as

NPA

Prime Loans

Prime Asset

BPO

20.

Open Market Operations of Reserve Bank of India refers to

Trading in securities

Auctioning of Foreign Exchange

Transaction in Gold

None of these

21.

What is an Indian Depository Receipt(IDR)?

An instrument in the form of deposit receipt issued by Indian depositories.

A deposit account with a public sector bank.

A depository account with any of the Depositories in India.

An instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company.

22.

Economic growth is usually coupled with

Stagflation

Deflation

Hyper Inflation

Inflation

23.

Which is not called a Debt instrument as referred in financial transactions?

Bonds

Stocks

Certificate of Deposits

Commercial Papers

24.

The stock market index of London Stock Market is referred as

Bullish

FTSE

NIFTY

Sensex

25.

Which of the following policies/agreements/accords is closely associated with the reform in Banking Industry?

Geneva Framework

Look East Policy

Basel Accord

Doha Accord

Economics Mock Test series - 2

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