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[Solutions] – 10 PM Daily Quiz – 21 July, 2016

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[Solutions]

Q.1 Consider the following statements:

1. NGT has ordered de-registering of more than 10 years old diesel vehicles in Delhi

2. In the first phase all vehicles more than 20 years old will be deregistered

Identify the correct statement:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of these

Ans : a)  The de-registration will happen in 2 phases. In the first phase all diesel vehicles more than 15 years old will be de-registered. Later on, vehicle between 10-15 years old will be de-registered.

 

Q.2 Consider the following statements:

1. Mudra loans can lead to women empowerment in the rural areas.

2. Shishu loans under Mudra are loans more than Rs 50,000

Identify the correct statement:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of these

Ans: a)  Mudra loans can lead to woman empowerment in rural areas as these loans can be accessed by rural women to take entrepreneurial activities. Mudra provides 3 category of loans:

  1. Shishu : Less than Rs. 50,000
  2. Kishor: Betwenn Rs. 50,000 to 5 lakh
  3. Tarun: Between 5 lakh to 10 lakh

 

Q.3 Nuclear Power Project by Westinghouse has been shifted from Mithi Virdi, Gujarat to which state?

a) Arunachal Pradesh

b) Tamil Nadu

c) Maharashtra

d) Andhra Pradesh

Ans: d)

Q.4 Which of the following can be the effect of re-capitalization of Public Sector Banks (PSBs)

1. It can help in bringing down the inflation

2. It can help boost the lending potential of the banks.

Select the correct statement:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None

Ans: b) Recapitalisation as such has no direct correlation with inflation. It can improve the balance sheet of the banks and can increase their stock of money available for lending.

 

Q.5 Which of the following can be used to bring down inflation:

1. Devaluing the currency

2. Taking Supply side reforms

Select the correct statement:

a) 1 only

b) 2 only

c) Both 1 and 2

d) None of these

Ans: c) Devaluing the currency at times to make exports more feasible and making the currency appreciate at time to make imports more favourable can help control inflation.

Supply side reforms can increase the supply of goods that have growing demand and thus can control inflation

Comments

6 responses to “[Solutions] – 10 PM Daily Quiz – 21 July, 2016”

  1. Arpit Singh Avatar
    Arpit Singh

    Exactly wht i wanted to write. Necessary imports which cant be diminished no matter the deval. But with the prices of oil gone so low, i dont knlw wht takes precedence, export profit or loss thru necessary imports. thats why i think only economists wud know the exact effect.

  2. Checkmate Avatar
    Checkmate

    Hi…
    Devaluation actually increases Inflation …. (INDIAN CONTEXT)…. devalue our currency, Exports become competitive sure, but we should have sufficient quality goods to export [CHINA begin a good example in this regard].
    We are majorly importing Oil, which is 80% of our import basket. Thus it only increases inflation, due to costlier petroleum products.

    Hence in my view especially in INDIAN CONTEXT devaluation increases inflation. So I concur with your argument.

  3. Arpit Singh Avatar
    Arpit Singh

    Its not clearly explained. Just written both deval. N reval. Can be used to control inflation. In reality there is no set pattern to deval. With inflation

  4. Pradeep Kumar Avatar
    Pradeep Kumar

    When currency is devalued, exports will rise and it will further reduce the supply of goods and thereby it increases the inflation..

  5. Prasanna N Avatar
    Prasanna N

    Explanation clearly explains how both can be used to control inflation. What didn’t you get ?

  6. Arpit Singh Avatar
    Arpit Singh

    Q5. So devaluing n appreciating both control inflation?how can that be?it either has to be either of the 2. And how exactly?

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