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Daily Quiz: UPSC Prelims Marathon – December 12
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5 of 7 questions answered correctly
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Daily Quiz: December 12
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6 of 7 questions answered correctly
How increase in MSF strengthens rupee value in international market? if anyone know pls xplain
MSF is the rate at which the banks are able to borrow overnight funds from RBI against the approved government securities,so Increasing MSF means more penalty to borrow hence it reduces money supply for speculation(as the speculation in international money market tends to have an effect on the exchange rate) so it will strengthen rupee value in international market.
let me know if it helped!
thanks
5 of 7 questions answered correctly
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Average score 39%
Your score 71.43%
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You have reached 5 of 7 scores, (71.43%)
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4/7. Ques 7 point 3 is wrong. & it. is well explained in answer. So options r wrong.
Yes , there is written that RBI can not intervene, while it can ..
5 of 7 questions answered correctly. Good questions and it’s my fav subject.
in ques 3 how is statement 3 correct when u are yourself giving it in explanation that “Gross Domestic Product (GDP) deflator is calculated by dividing nominal GDP by real GDP and then multiplying by 100.”
GDP at current price is nominal gdp and gdp at constant price is real gdp.
GDP deflator is calculated by divinding nominal by real and multiplying it by 100 thts y it is correct
Thank you, but the option doesnt mention it -“multiplying by 100” thats why i wrote that in bold.
Ohh..i missed the bold part..well thnku.
That’s just to express in percentage so not a big deal
Can you tell me why NRI Deposists will cause currency appreciation?
NRI deposits bring dollars to the indian banks and they will b flooded with forex currency hence demand of dollar would be less as compard to indian ruppee which wil result in appreciation of indian ruppee.
It is just a game of demand and supply of ruppee and dollar.
I hope it helped.
3/7
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4 of 7 questions answered correctly
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Thanks forumias. Good questions .
4 of 7 questions answered correctly
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6/7
You have reached 4 of 7 scores, (57.14%)
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4 of 7 questions answered correctly
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6/7
4/7
Q 7 – RBI can intervene but there is wrong option, it is given can not
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5/7
NRI Deposits lead to currency appreciation because I think when more dollars are available against the Indian rupee, the demand for dollars will go down vis-a-vis the rupee. Therefore the Rupee becomes stronger in position to the dollar.
I maybe wrong, can anyone verify what I think is true or not?
4/7
You have reached 2 of 7 scores, (28.57%)