Pre-cum-Mains GS Foundation Program for UPSC 2026 | Starting from 5th Dec. 2024 Click Here for more information
Welcome to Prelims Marathon 2018. Start attempting the Daily Quiz.
This free program is focused on UPSC Prelims 2018.
Today’s Quiz topic is Economy.
Follow this Initiative consistently to ensure a good score in CSP-2018. Subscribe Here to get updated when the Quiz is posted.
Daily Quiz: August 22
Test-summary
0 of 7 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
Information
Click on ‘Start Test’ button to start the Quiz.
Click Here For More Details on Prelims Marathon
All the Best!
You have already completed the test before. Hence you can not start it again.
Test is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 7 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 scores, (0)
| Average score | |
| Your score | |
Categories
- Economy 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- Answered
- Review
- Question 1 of 7
1. Question
1 pointsCategory: EconomyConsider the following statements about Department of Investment and Public asset Management:
1.) It is mandated to advise the government in the matters of financial restructuring of central public sector enterprises and attract investment through capital markets
2.) It works under Ministry of commerce and Industry
Which of the above statement(s) is/are correct?
Correct
Statement 2 is incorrect:
It comes under Ministry of Finance
Important Learning:
The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management or ‘Dipam’, a decision aimed at proper management of Centre’s investments in equity including its disinvestment in central public sector undertakings.
The new department has been mandated to “advice the government in the matters of financial restructuring of central public sector enterprises and for attracting investment through capital markets”,
Incorrect
Statement 2 is incorrect:
It comes under Ministry of Finance
Important Learning:
The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management or ‘Dipam’, a decision aimed at proper management of Centre’s investments in equity including its disinvestment in central public sector undertakings.
The new department has been mandated to “advice the government in the matters of financial restructuring of central public sector enterprises and for attracting investment through capital markets”,
- Question 2 of 7
2. Question
1 pointsCategory: EconomyWhich of the following is used for the measurement of distribution of income?
Correct
While the Lorenz curve is most often used to represent economic inequality, it can be used to represent unequal distribution in any system. The farther away the curve is from the baseline, represented by the straight diagonal line, the higher the level of inequality. In economics, the Lorenz curve denotes inequality in the distribution of either wealth or income;
The Gini coefficient is used to express the extent of inequality in a single figure. It can range from 0 (or 0%) to 1 (or 100%).
Incorrect
While the Lorenz curve is most often used to represent economic inequality, it can be used to represent unequal distribution in any system. The farther away the curve is from the baseline, represented by the straight diagonal line, the higher the level of inequality. In economics, the Lorenz curve denotes inequality in the distribution of either wealth or income;
The Gini coefficient is used to express the extent of inequality in a single figure. It can range from 0 (or 0%) to 1 (or 100%).
- Question 3 of 7
3. Question
1 pointsCategory: EconomyConsider the following statements about Higher Education Finance agency
1.) It is a Non-Banking Financial company (NBFC) that will provide an alternative source of funding to institutions to meet their financial requirements.
2.) It will be funded by “Madhyamik and Uchchtar Shiksha Kosh” (MUSK) where all proceeds of “Secondary and Higher Education Cess” is credited.
Which of the above statement(s) is/are correct?
Correct
Statement 2 is incorrect:
- NBFC will rise funds from the market and also mobilize CSR funds from PSUs/Corporates and lend to government-run higher educational institutions for promoting research and innovation.
Important Learning:
- The Government has signed an agreement with Canara bank to set up non-banking financial company (NBFC) called the Higher Education Finance Agency (HEFA).
- It will be a joint venture between the HRD ministry and the bank.
- It is formed to give a major push for creation of high quality infrastructure in premier educational institutions.
Incorrect
Statement 2 is incorrect:
- NBFC will rise funds from the market and also mobilize CSR funds from PSUs/Corporates and lend to government-run higher educational institutions for promoting research and innovation.
Important Learning:
- The Government has signed an agreement with Canara bank to set up non-banking financial company (NBFC) called the Higher Education Finance Agency (HEFA).
- It will be a joint venture between the HRD ministry and the bank.
- It is formed to give a major push for creation of high quality infrastructure in premier educational institutions.
- Question 4 of 7
4. Question
1 pointsCategory: EconomyIf there is inflation in the country, RBI is likely to adopt which of the following steps to contain it
Correct
Explanation:
The RBI tries to control inflation by raising the policy rates ( CRR, SLR, repo rate, bank rate). This increases the lending rate. To understand how increasing the lending rate eases inflation, we need to see how interest rate affects demand. When interest rates are low, people would consume more and finance their consumption by lending.
Now, if interest rates are raised, people would refrain from borrowing to finance consumption, leading to decreased demand. Less demand means low prices. This is how increasing interest rates lower inflation.
Incorrect
Explanation:
The RBI tries to control inflation by raising the policy rates ( CRR, SLR, repo rate, bank rate). This increases the lending rate. To understand how increasing the lending rate eases inflation, we need to see how interest rate affects demand. When interest rates are low, people would consume more and finance their consumption by lending.
Now, if interest rates are raised, people would refrain from borrowing to finance consumption, leading to decreased demand. Less demand means low prices. This is how increasing interest rates lower inflation.
- Question 5 of 7
5. Question
1 pointsCategory: EconomyConsider the following statements about UJALA Scheme:
1.) It is a Flagship programme of Ministry of New and Renewable Energy to promote efficient lighting and help preserve environment
2.) It was initially labelled DELP (Domestic Efficient Lighting Program) and was relaunched as UJALA
Which of the above statement(s) is/are correct?
Correct
Statement 1 is incorrect:
Unnat Jyoti by Affordable LEDs and appliances for All (UJALA) is a flagship scheme of Ministry of Power for distribution of energy efficient appliance.
Important Learning:
Its main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.
Under this scheme, LED bulbs at 40% of the market price will be distributed to every grid connected consumer.
It is implemented by the Electricity Distribution Company and Energy Efficiency Services Limited (EESL).
Incorrect
Statement 1 is incorrect:
Unnat Jyoti by Affordable LEDs and appliances for All (UJALA) is a flagship scheme of Ministry of Power for distribution of energy efficient appliance.
Important Learning:
Its main objective is to promote efficient lighting, enhance awareness on using efficient equipment which reduce electricity bills and help preserve environment.
Under this scheme, LED bulbs at 40% of the market price will be distributed to every grid connected consumer.
It is implemented by the Electricity Distribution Company and Energy Efficiency Services Limited (EESL).
- Question 6 of 7
6. Question
1 pointsCategory: EconomyWhich of the following is eligible for loans under Priority Sector Lending?
1.) Education
2.) Export Credit
3.) Renewable Energy
Select the correct answer using the codes given below:
Correct
Priority Sector includes the following categories:
(i) Agriculture
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(iv) Education
(v) Housing
(vi) Social Infrastructure
(vii) Renewable Energy
(viii) OthersIncorrect
Priority Sector includes the following categories:
(i) Agriculture
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(iv) Education
(v) Housing
(vi) Social Infrastructure
(vii) Renewable Energy
(viii) Others - Question 7 of 7
7. Question
1 pointsCategory: EconomyArrange the stages of Economic Integration in correct sequence:
1.) Free Trade Agreement
2.) Preferential trade Agreement
3.) Common Market
4.) Custom Union
Select the correct answer using the codes given below:
Correct
Stages of Economic Integration:
1.) Preferential Trade Agreement
2.) Free Trade Agreement
3.) CECA/CEPA
4.) Custom Union
5.) Common Market
6.) Economic Union
Important Learning:
A trade agreement is an arrangement between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on limited/substantial trade between them. It also includes tax benefits and investment guarantees.
The most common trade agreements are of the preferential and free trade types in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. Trade Agreements can create opportunities for and help to grow Indian economy.
Incorrect
Stages of Economic Integration:
1.) Preferential Trade Agreement
2.) Free Trade Agreement
3.) CECA/CEPA
4.) Custom Union
5.) Common Market
6.) Economic Union
Important Learning:
A trade agreement is an arrangement between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on limited/substantial trade between them. It also includes tax benefits and investment guarantees.
The most common trade agreements are of the preferential and free trade types in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. Trade Agreements can create opportunities for and help to grow Indian economy.
