46. Which one is not included in NonBanking Financial Institutions (NBFIs)?
| Answer : Option C |
| Explanation : |
| A non-bank financial institution is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency. NABARD, EXIM, SIDBI are examples of NBFIs. Bank of India (BoI) is a Mumbai-headquartered commercial bank that has been governmentowned since nationalization in 1969. |
47. Inflation is caused by :
| Answer : Option B |
| Explanation : |
| In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to growth in the money supply. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth. |
48. Which bank is limited to the needs of agriculture and rural finance ?
| Answer : Option A |
| Explanation : |
| National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector. It has been accredited with 'matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India'. |
49. What is known as the open market operation of the RBI ?
| Answer : Option B |
| Explanation : |
| OMOs are the market operations conducted by the Reserve Bank of India by way of sale/ purchase of Government securities to/ from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis. |
50. The national income of a country is-
| Answer : Option C |
| Explanation : |
| National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time.National Income is the total economic activity (production of finished goods and services calculated in monetary value) within the economic territory of a country by its residents during the year of accounting. In other words National Income of a country is the Net National Product at factor cost. |
51. Which of the following does not form a part of the foreign exchange reserves of India ?
| Answer : Option D |
| Explanation : |
| Foreign-exchange reserves are assets held by central banks andmonetary authorities, usually in different reserve currencies, mostly the United States dollar. However, the term in popular usage commonly also adds gold reserves, special drawing rights (SDRs), and International Monetary Fund (IMF) reserve positions. |
52. State which amongst the following is not true about VAT ?
| Answer : Option C |
| Explanation : |
| A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. Being a consumption tax, VAT is usually used as a replacement for sales tax. Ultimately, it taxes the same people and businesses the sameamounts of money, despite its internal mechanism being different. This means that, without special measures, goods that are imported from one country that does have VAT to another country that does not have VAT will be taxed twice. The exporting country will charge VAT and the importing country will charge sales tax. |
53. To achieve high rates of growth of national output, the economy has to
| Answer : Option D |
| Explanation : |
| The immediate effect of devoting a larger share of national output to investment is that the economy devotes a smaller share to consumption; that is, 'living standards' as measured by consumption fall. The higher investment rate means that the capital stock increases more quickly, so the growth rates of output and output per worker rise. According to Smith, in a developing economy, both income level and capital stock rise. In addition to this, the rate of capital accumulation also shows a tendency to increase. This leads to increase in the capital stock in successive periods as investment keeps on increasing. Another important factor which contributes to the progress of an economy is the successive decline in the incremental capitaloutput ratio due to the influence of capital on the productivity of labour. |
54. In the budget figures of the Government of India, fiscal deficit is
| Answer : Option B |
| Explanation : |
| The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). The elements of the fiscal deficit are (a ) the revenue deficit, which is the difference between the government's current (or revenue) expenditure and total current receipts (that is, excluding borrowing) and (b ) capital expenditure. The fiscal deficit can be financed by borrowing from the Reserve Bank of India (which is also called deficit financing or money creation) and market borrowing (from the money market that is mainly from banks). |
55. Which car has been the best seller in India in 2004-2005 ?
| Answer : Option C |
| Explanation : |
| After beating the Maruti 800 over the second half of 2004, the Maruti Alto officially took the title of bestselling car in India over the FullYear 2005. Below the Alto at 102,970 units, the Hyundai Santro (aka Atos), built in India, took the 2nd spot over the period at 73,822 sales and the Tata Indica was 3rd with 70,267 sales. |
56. In a Capitalistic Economy, the prices are determined by :
| Answer : Option A |
| Explanation : |
| Capitalism generally refers to economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, investments, distribution, income, and pricing is determined by markets. In capitalism, prices are decided by the demand-supply scale. For example, higher demand for certain goods and services lead to higher prices and lower demand for certain goods lead to lower prices. |
57. Securities and Exchange Board of India is a
| Answer : Option D |
| Explanation : |
| The Securities and Exchange Board of India (SEBI) is the designated regulatory body for the finance and investment markets in India. It was established in the year 1988 and given statutory powers on 30 January, 1992 through the SEBI Act, 1992. It is an autonomous body. |
58. When was the Mumbai Stock Exchange set up?
| Answer : Option D |
| Explanation : |
| The Mumbai Stock Exchange, also known as Bombay Stock Exchange (BSE), was established in 1875. It claims to be Asia's first stock exchange and the world's fastest stock exchange, with a median trade speed of 6 microseconds. |
59. Indian Special Economic Rules amendment came in the year
| Answer : Option B |
| Explanation : |
| The Special Economic Zones Rules are associated with the year 2006, though the policy was announced in 2000. The Special Economic Zones Rules, 2006 came into effect on 10 February 2006. The amendment Rules provided for the simplification of procedures for development,operation, and maintenance of the Special Economic Zones and for setting up and conducting business in SEZ. |
60. One of the essential conditions of Monopolistic competition is
| Answer : Option A |
| Explanation : |
| Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In a monopolistically competitive market, firms can behave like monopolies in the short run, including by using market power to generate profit. In the long run, however, other firms enter the market and the benefits of differentiation decrease with competition; the market becomes more like a perfectly competitive one where firms cannot gain economic profit. |
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