Practice Question and Answer

Q: The budget deficit means 1921 0

  • 1
    the excess of total expenditure, including loans, net of lending over revenue receipts
    Correct
    Wrong
  • 2
    difference between revenue receipts and revenue expenditure
    Correct
    Wrong
  • 3
    difference between all receipts and all the expenditure
    Correct
    Wrong
  • 4
    fiscal deficit less interest payments
    Correct
    Wrong
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Answer : 3. "difference between all receipts and all the expenditure"

Q: Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to 1803 0

  • 1
    ARDC
    Correct
    Wrong
  • 2
    SBI
    Correct
    Wrong
  • 3
    NABARD
    Correct
    Wrong
  • 4
    PACs
    Correct
    Wrong
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Answer : 3. "NABARD"

Q: The ARDC is now a branch of the 2753 0

  • 1
    RBI
    Correct
    Wrong
  • 2
    NABARD
    Correct
    Wrong
  • 3
    IDBI
    Correct
    Wrong
  • 4
    SDBI
    Correct
    Wrong
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Answer : 2. "NABARD"

Q: Paper currency first started in India in 1802 0

  • 1
    1861
    Correct
    Wrong
  • 2
    1542
    Correct
    Wrong
  • 3
    1601
    Correct
    Wrong
  • 4
    1880
    Correct
    Wrong
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Answer : 1. "1861"

Q: In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models? 2241 0

  • 1
    Change in quantity of money - change in investment - change in employment and output - change in rate of interest - change in price level
    Correct
    Wrong
  • 2
    Change in quantity of money - change in employment and output - change in investment - change in the rate of interest - change in price level
    Correct
    Wrong
  • 3
    Change in quantity of money - change in investment - change in rate of interest - change in employment and output - change in price level
    Correct
    Wrong
  • 4
    Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level
    Correct
    Wrong
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Answer : 4. "Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level"

Q: Subsidies mean 1730 0

  • 1
    payment by government for purchase of goods and services
    Correct
    Wrong
  • 2
    payment made by business enterprises to factors of production
    Correct
    Wrong
  • 3
    payment made by companies to shareholders
    Correct
    Wrong
  • 4
    payment made by the government to business enterprises, without buying any goods and services
    Correct
    Wrong
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Answer : 4. "payment made by the government to business enterprises, without buying any goods and services"

Q: If the RBI adopts an expansionist open market operations policy, this means that it will 1723 0

  • 1
    buy securities from non-government holders
    Correct
    Wrong
  • 2
    sell securities in the open market
    Correct
    Wrong
  • 3
    offer commercial banks more credit in the open market
    Correct
    Wrong
  • 4
    openly announce to the market that it intends to expand credit
    Correct
    Wrong
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Answer : 3. "offer commercial banks more credit in the open market"

Q: Redistribution polices geared to reduce economic inequalities include 1704 0

  • 1
    progressive tax policies
    Correct
    Wrong
  • 2
    land reforms
    Correct
    Wrong
  • 3
    rural development policies
    Correct
    Wrong
  • 4
    All the above
    Correct
    Wrong
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Answer : 4. "All the above"

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