Prelims Marathon – Economy – National Income, Money and Banking – October -26th-2022

Dear Friends,

We are posting prelims marathon MCQs for today. In this initiative, you can attempt 10 subjective MCQs on a daily basis. For schedule, refer to the archive link given below.

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Marking Pattern

Correct Answer : 2

Wrong Answer : -0.66

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Time Left :5

Question No. 1

“It refers to the benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalized)” is related to which of the following?

ADepreciation

BExternalities

CAppreciation

DCircular flow of income

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Question No. 2

Consider the following statements:
1.Real GDP evaluates the value of goods and services at market prices.
2.Nominal GDP evaluates the value of goods and services at constant prices.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 3

The GDP Deflator is a ration between which of the following?

AReal GDP and Nominal GDP

BReal GDP and Inflation

CNominal GDP and Inflation

DReal GDP and Base year

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Question No. 4

In what ways GDP deflator is different from Consumer/Wholesale price Index?
1.It takes into account all such goods and services.
2.It includes prices of imported goods.
3.The weights are differing according to production level of each good in GDP deflator.
Choose the correct answer from below given codes:

A1 only

B1 and 2 only

C1 and 3 only

D1, 2 and 3

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Question No. 5

Which of the following is/are quantitative method of control of money supply in the economy by Reserve Bank of India?
1.Bank Rate
2.Moral suasion
3.Margin requirement
Choose the correct answer from below given codes:

A1 only

B1 and 2 only

C1 and 3 only

D1, 2 and 3

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Question No. 6

Which of the following types of money supply comes under the definition of narrow money?

AM1 and M3

BM1 and M2

CM2 and M3

DM3 and M4

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Question No. 7

Consider the following statements regarding Statutory Liquidity Ratio (SLR):
1.It is the ratio of the total deposits of a bank which is to be maintained by the bank with itself in cash and non-cash form.
2.The ratio is fixed by Reserve Bank of India.
Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 8

“The interest rate which the RBI charges on its long-term lending’s known as”?

ABank rate

BRepo rate

CReverse Repo rate

DOpen Market Operations

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Question No. 9

Consider the following statements regarding Liquidity Adjustment Facility (LAF):
1.It is introduced as key element of fiscal policy to control money supply in the economy.
2.It is introduced in 2013 to face rupee exchange crisis.
Which of the statements given above is/are NOT correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

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Question No. 10

“It is a monetary policy intervention by the RBI to withdraw excess liquidity by selling government securities in the economy” is known as?

ARepo rate

BCash Reserve Ratio

CReverse Repo rate

DMarket Stabilization Scheme

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