Dear Friends,
As we enter the second week of our quiz, we are posting 8 questions on Economy. Please take time to ponder over these questions and answer them.
Those of you who have not yet joined our Test Series and are merely procrastinating, may join Second Batch by clicking here. We have released the first GS Sectional Test – 1 of Indian Polity and Indian Economy.
Now attempt the questions below 🙂
Q1) Consider the following statements
- When economy grows, market forces increase inequality at first
- When economy grows, market forces ultimately decrease inequality
Which of the below curves represent the above hypothesis?
a) Phillips Curve
b) Kuznets Curve
c) Bell Curve
d) Lorenz Inequality Curve
Q.2) What is the meaning of ‘take off stage’ in an economy?
a) hyper growth rate in an economy
b) economic growth takes place automatically
c) economy is de-linked from primary sector and growth is occurring in secondary sector
d) none of the above
Q.3) The price of any currency in international market is decided by the
1. World Bank
2. Demand for goods/services provided by the country concerned
3. Stability of the government of the concerned country
4. Economic potential of the country in question
Select the correct answer using the codes given below.
a) 2 and 3 only
b) 3 and 4 only
c) 1 and 4 only
d) 1, 2, 3 and 4
Q.4) The function of the Reserve Bank of India are:
1. Issuing all notes and coins
2. Distributing all notes and coins
3. Formulating monetary policy
4. Acting as agent of Government in respect of India’s membership of the IMF
Select the correct answer using the codes given below.
a) 1, 3 and 4
b) 2 and 3
c) 2, 3 and 4
d) 1, 2, 3 and 4
Q.5) Regional rural banks:
1. Have limited area of operation
2. Have free access to liberal refinance facilities from NABARD
3. Are required to lend only to weaker sections
Select the correct answer using the codes given below.
a) 1 and 3 only
b) 2 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Q.6) The per capita income has been low in India because:
a) of population growth.
b) of inflation reducing the purchasing power of people.
c) of insufficient increase in total income.
d) of regional imbalances
Q.7) Consider the following statements
1. Inflation in every form is bad for the economic growth of a country.
2. Right monetary policy by the Central Bank control all inflation.
Select the Incorrect statements using the codes given below.
a) 1 only
b) 2 only
c) Both 1 & 2
d) Neither 1 nor 2
Q.8) Which of the following would be considered as tools of economic stimulus?
1. Increasing taxes so that government has more money to spend
2. Quantitative Easing
3. Decreasing Interest Rates
Select the correct statements using the codes given below:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
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