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1. Question1 points
Gender Inequality Index (GII) was developed by:Correct
Gender indexes such as the Global Gender Gap Index of the World Economic Forum (WEF) or the Gender Inequality Index (GII) of the United Nations Development Program (UNDP) rank countries in chronological time.Incorrect
2. Question1 points
A reduction in the reverse repo rate generally indicates that:
1. Market rate of interest is likely to increase
2. Central bank is following tight money policy
3. Inject liquidity into the system
4. Commercial banks may lend more
Select the correct statementsCorrect
Reduction in the reverse repo rate encourages commercial banks to lend more instead of keeping money with the RBI as the return from it (reverse repo rate) is falling. It will inject more money / liquidity into the system. It is part of easy / soft money policy.Incorrect
3. Question1 points
Which of the following is the regulator of the credit rating agencies in India?Correct
The Securities and Exchange Board of India is the regulator of the securities and commodity market in India owned by the Government of India. It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.Incorrect
4. Question1 points
Who is the author of the book titled ‘The Quest For A World Without Hunger’?Correct
Mankombu Sambasivan Swaminathan is an Indian geneticist and international administrator, renowned for his leading role in India’s Green Revolution.Incorrect
5. Question1 points
Consider the following statements on farming sector of India:
1. Agriculture also matters for economic reasons because it still accounts 16 percent of GDP and 30 percent of employment.
2. Poor agricultural performance can lead to inflation, farmer distress and unrest, and larger political and social disaffection – all of which can hold back the economy.
Select the correct statements:Correct
The 1st statement is NOT Correct. Agriculture also matters for economic reasons because it still accounts for a substantial part of GDP (16 percent) and employment (49 percent) not 30 percent.Incorrect
6. Question1 points
What will be the impact on the Cash Reserves of commercial banks if RBI conduct a sale of securities?Correct
Sale of securities by RBI absorbs excess liquidity from the market / fall in the cash reserves of commercial banks.Incorrect
7. Question1 points
Under which qualitative tool, RBI fixes maximum limit to loan and advances that can be made, above which the commercial banks cannot exceed:Correct
Central Bank fixes credit amount to be granted. Credit is rationed by limiting the amount available for each commercial bank. This method controls even bill rediscounting. For certain purpose, upper limit of credit can be fixed and banks are told to stick to this limit. This can help in lowering banks credit exposure to unwanted sectors.Incorrect
8. Question1 points
Reverse Repo Rate is a tool used by RBI to:Correct
Reverse Repo Rate: The rate at which the RBI is willing to borrow from the commercial banks is called reverse repo rate. If the RBI increases the reverse repo rate, it means that the RBI is willing to offer lucrative interest rate to commercial banks to park their money with the RBI. This results in a reduction in the amount of money available for the bank’s customers as banks prefer to park their money with the RBI as it involves higher safety. This naturally leads to a higher rate of interest which the banks will demand from their customers for lending money to them, thereby causing reduction in liquidity.Incorrect
9. Question1 points
Consider the following liquid assets:
1. Demand deposits with the banks
2. Time deposits with the bank
3. Savings deposits with the bank
The correct sequence of aforesaid assets in the decreasing order of liquidity is:Correct
The most liquid asset, and what everything else is compared to, is cash or currency. This is because it can always be used easily and immediately.Incorrect
10. Question1 points
In an economy, head count ratio is the measure of:Correct
When the number of poor is estimated as the proportion of people below the poverty line, it is known as ‘Head Count Ratio’.Incorrect
11. Question1 points
Which among the following is/are the qualitative tools to control credit creation by RBI?
1. Open Market Operations
2. Repo Rate
3. Moral Suasion
4. Direct Action
Select the correct answer using the code given below:Correct
Various methods used by central bank to control creation can be divided into quantitative and qualitative methods.
Qualitative methods are:
Regulation of consumer Credit
Credit Rationing Policy
Moral Suasion / Persuasion
While quantitative methods include the following:
Open Market Operation
Variable Reserve Ratio
Bank Rate Policy.Incorrect
12. Question1 points
Which of the following constitutes the primary sector of the economy?
2. Animal Husbandry
Select the correct answer using the code given below:Correct
The primary sector of the economy is the sector of an economy making direct use of natural resources. This includes agriculture including animal husbandry, forestry, fishing and mining. In contrast, the secondary sector produces manufactured goods, and the tertiary sector produces services. The primary sector is usually most important in less-developed countries, and typically less important in industrial countries.Incorrect
13. Question1 points
Which one of the following groups of items is included in India’s forex reserveCorrect
Foreign exchange reserve is consisting of foreign currency assets, gold, Special Drawing Rights (SDR), and reserve position in the IMF. India’s foreign exchange reserves rose $7.78 billion to touch a record high of $568.5 billion in the week ended Nov. 6, 2020Incorrect
14. Question1 points
Which of the following is/are the characteristics of recession?
1. General fall in demand
2. High inflation
3. Fall in employment rate
Select the correct answer using the code given below.Correct
Recession is a mild form of depression, the major traits of which are:
General fall in demand as economic activities take a down turn.
Low inflation, showing further signs of falling down.
Fall in employment rate.
Price cuts by industries to sustain their business.Incorrect
15. Question1 points
The official data on poverty released in India is estimated on the basis of consumption expenditure data collected by:Correct
The official data on poverty released in India is estimated on the basis of consumption expenditure data collected by National Sample Survey Organisation (NSSO).Incorrect