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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Commercial banks contribute to the quantum of money supply in the economy through credit creation.Rcason(R): As they do have note-issuing authority.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Commercial banks contribute to the quantum of money supply in the economy through credit creation.
Rcason(R): As they do have note-issuing authority.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Aryan Khanna answered |
Commercial banks contribute to quantum of money supply in the economy through credit creation.
Commercial banks do not have the note-issuing authority, but they do contribute to the money supply in the economy.
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Read the following case study paragraph carefully and answer the question based on the same.The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.Q. Which of the following steps should be taken by the central bank if there is an excessive rise in the foreign exchange rate?- a)Supply foreign exchange from its stock
- b)Demand more of other foreign exchange
- c)Not intervene in the market as the exchange rate is determined by the market forces
- d)Help the central government to stabilize the foreign exchange rate.
Correct answer is option 'A'. Can you explain this answer?
Read the following case study paragraph carefully and answer the question based on the same.
The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.
In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.
When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.
Q. Which of the following steps should be taken by the central bank if there is an excessive rise in the foreign exchange rate?
a)
Supply foreign exchange from its stock
b)
Demand more of other foreign exchange
c)
Not intervene in the market as the exchange rate is determined by the market forces
d)
Help the central government to stabilize the foreign exchange rate.
|
|
Arun Yadav answered |
As regards control on rise in the price of the foreign exchange, Central Bank will increase the Bank role. It will attract foreign Direct Investment, that will increase the flow of foreign exchange and it will automatically control the price of foreign exchange. Simultaneously, it will increase the job potentials due to induction of MNCs and common man will be benefitted.
छोटानागपुर पठार कितने राज्यों में फैला है?- a)4
- b)3
- c)6
- d)5
Correct answer is option 'D'. Can you explain this answer?
छोटानागपुर पठार कितने राज्यों में फैला है?
a)
4
b)
3
c)
6
d)
5
|
Sanjay Rana answered |
यह 5 राज्यों में फैला है: बिहार, झारखंड, छत्तीसगढ़ पश्चिम बंगाल, ओडिशा
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): In case of currency appreciation, less rupees are to be paid to buy one US dollar.Reason (R): Currency appreciation leads to increase in value of domestic currency in reference to foreign currency. So, less is needed to pay for the same amount.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): In case of currency appreciation, less rupees are to be paid to buy one US dollar.
Reason (R): Currency appreciation leads to increase in value of domestic currency in reference to foreign currency. So, less is needed to pay for the same amount.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Amita Das answered |
Export of goods and services from India to the US would mean inflow of foreign exchange to India.
Read the below case and answer the question that follow:In a 40-minute long speech Prime Minister Narendra Modi announced the demonetisation of existing notes of ₹ 500 and ₹ 1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹ 500 and ₹ 1,000 will not be legal tender from midnight tonight and these will be “just worthless pieces of paper''. The PM also urged people to ‘join this mahayojna against the ills of corruption.Q. ______________ is issued by the government of India.- a)Coins
- b)₹500 note
- c)₹1000 note
- d)All of these
Correct answer is option 'A'. Can you explain this answer?
Read the below case and answer the question that follow:
In a 40-minute long speech Prime Minister Narendra Modi announced the demonetisation of existing notes of ₹ 500 and ₹ 1,000 during a televised address on Tuesday evening.
Modi announced that the notes of ₹ 500 and ₹ 1,000 will not be legal tender from midnight tonight and these will be “just worthless pieces of paper''. The PM also urged people to ‘join this mahayojna against the ills of corruption.
Q. ______________ is issued by the government of India.
a)
Coins
b)
₹500 note
c)
₹1000 note
d)
All of these
|
|
Arun Yadav answered |
It is the sole responsibility of the Government of India to mint coins of all denominations.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Import of machinery is reflected in the current account of balance of payments.Reason (R): Export and import of goods and invisibles are recorded in the current account of balance of payments.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Import of machinery is reflected in the current account of balance of payments.
Reason (R): Export and import of goods and invisibles are recorded in the current account of balance of payments.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Naina Sharma answered |
Export and import of all goods including machines are recorded in the current account.
Note: There is a third category (besides current account and capital account) called official reserve account which records transactions of the central bank in a BOP statement. These transactions are called accommodating or ‘beloiv the line’ transactions. It relates to running down its reserves of foreign exchange by selling foreign currency in foreign exchange market in case of a deficit. The decrease (or increase) in official reserves is called the overall balance of payments deficit (or surplus).
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): When in order to buy 1 US dollar ₹ 80 are needed instead of ₹ 75, domestic currency shows depreciation.Reason (R) : Depreciation of domestic currency refers to fall in the value of domestic currency in terms of foreign currency caused by rise in foreign exchange rate in the foreign exchange market.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): When in order to buy 1 US dollar ₹ 80 are needed instead of ₹ 75, domestic currency shows depreciation.
Reason (R) : Depreciation of domestic currency refers to fall in the value of domestic currency in terms of foreign currency caused by rise in foreign exchange rate in the foreign exchange market.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Kiran Mehta answered |
Here, domestic currency shows depreciation because more rupees are to be paid to buy one US dollar.
Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?- a)By the government.
- b)By the demand and supply of Foreign Currency
- c)Both (A) and (B)
- d)Neither (A) nor (B)
Correct answer is option 'C'. Can you explain this answer?
Read the news report given below and answer the question that follow with respect to the same:
The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.
At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.
The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.
On Friday, the rupee had closed at ₹ 72.96 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.
On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.
Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.
Q. How is the exchange rate determined in India?
a)
By the government.
b)
By the demand and supply of Foreign Currency
c)
Both (A) and (B)
d)
Neither (A) nor (B)
|
Arnav Chawla answered |
Exchange Rate Determination in India:
Exchange rates in India are determined by a combination of factors, primarily by the demand and supply of foreign currency in the market. Let's break down the process:
1. Demand and Supply:
- The exchange rate of the Indian rupee against foreign currencies, particularly the US dollar, is influenced by the demand and supply dynamics in the foreign exchange market.
- If the demand for a particular currency (e.g., US dollar) is high, its value will appreciate relative to the Indian rupee. Conversely, if the demand decreases, the currency value will depreciate.
2. Market Forces:
- The exchange rate is also influenced by market forces such as economic indicators, geopolitical events, inflation rates, and interest rates.
- These factors impact the demand for a currency, leading to fluctuations in exchange rates.
3. Government Intervention:
- While exchange rates are primarily determined by market forces, the government and central bank (Reserve Bank of India) may intervene to stabilize the currency.
- The RBI may buy or sell foreign currency reserves to influence the exchange rate and maintain stability in the forex market.
4. Balance of Payments:
- The exchange rate is also affected by the country's balance of payments, which includes trade balance, capital flows, and foreign investments.
- A surplus in the balance of payments can strengthen the currency, while a deficit may lead to depreciation.
5. Global Factors:
- Global economic conditions, trade relations, and geopolitical events can impact exchange rates.
- Factors such as global oil prices, US dollar strength, and international market trends play a significant role in determining the value of the Indian rupee.
In conclusion, the exchange rate in India is determined by a complex interplay of market forces, government intervention, balance of payments, and global factors. Understanding these factors is crucial for analyzing currency movements and making informed decisions in the foreign exchange market.
Exchange rates in India are determined by a combination of factors, primarily by the demand and supply of foreign currency in the market. Let's break down the process:
1. Demand and Supply:
- The exchange rate of the Indian rupee against foreign currencies, particularly the US dollar, is influenced by the demand and supply dynamics in the foreign exchange market.
- If the demand for a particular currency (e.g., US dollar) is high, its value will appreciate relative to the Indian rupee. Conversely, if the demand decreases, the currency value will depreciate.
2. Market Forces:
- The exchange rate is also influenced by market forces such as economic indicators, geopolitical events, inflation rates, and interest rates.
- These factors impact the demand for a currency, leading to fluctuations in exchange rates.
3. Government Intervention:
- While exchange rates are primarily determined by market forces, the government and central bank (Reserve Bank of India) may intervene to stabilize the currency.
- The RBI may buy or sell foreign currency reserves to influence the exchange rate and maintain stability in the forex market.
4. Balance of Payments:
- The exchange rate is also affected by the country's balance of payments, which includes trade balance, capital flows, and foreign investments.
- A surplus in the balance of payments can strengthen the currency, while a deficit may lead to depreciation.
5. Global Factors:
- Global economic conditions, trade relations, and geopolitical events can impact exchange rates.
- Factors such as global oil prices, US dollar strength, and international market trends play a significant role in determining the value of the Indian rupee.
In conclusion, the exchange rate in India is determined by a complex interplay of market forces, government intervention, balance of payments, and global factors. Understanding these factors is crucial for analyzing currency movements and making informed decisions in the foreign exchange market.
निम्नलिखित जोड़े पर विचार करें:
ऊपर दिए गए जोड़े में से कौन सा सही तरीके से मेल खाता है? (2018)- a)केवल 1, 2 और 3
- b)केवल 3 और 4
- c)केवल 1 और 3
- d)केवल 2 और 4
Correct answer is option 'C'. Can you explain this answer?
निम्नलिखित जोड़े पर विचार करें:
ऊपर दिए गए जोड़े में से कौन सा सही तरीके से मेल खाता है? (2018)
a)
केवल 1, 2 और 3
b)
केवल 3 और 4
c)
केवल 1 और 3
d)
केवल 2 और 4
|
Rahul Choudhury answered |
कैटेलोनिया का स्वायत्त समुदाय स्पेन के उत्तर-पूर्वी कोने में एक त्रिकोणीय क्षेत्र में है। यह फ्रांस और अंडोरा द्वारा उत्तर की ओर, पूर्व में भूमध्य सागर, दक्षिण में वालेंसिया का स्वायत्त समुदाय और पश्चिम में आरागॉन का स्वायत्त समुदाय है। क्रीमिया गणराज्य, आधिकारिक तौर पर यूक्रेन का हिस्सा, काला सागर और आज़ोव सागर के बीच यूक्रेन के दक्षिण से फैला एक प्रायद्वीप पर स्थित है। इसे संकीर्ण केर्च जलडमरूमध्य द्वारा रूस से पूर्व में अलग किया जाता है। मिंडानाओ, द्वीप, फ़िलीपींस में दूसरा सबसे बड़ा (ल्यूज़ोन के बाद) द्वीपसमूह के दक्षिणी भाग में, बोहोल, फिलीपीन, सेलेब्स और सुलु समुद्रों से घिरा हुआ है। ओरोमिया इथियोपिया के नौ जातीय आधारित क्षेत्रीय राज्यों में से एक है, जो 284,538 वर्ग किलोमीटर को कवर करता है।
Which of the following statements is not true about the power sector in India?- a)Government needs to invest on the infrastructure to meet growing demand for electricity, India’s commercial energy supply needs to grow at about 7%.
- b)There has been an increase in profits of State Electricity Boards.
- c)Private sector power generators are yet to play their role in a major way.
- d)There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.
Correct answer is option 'B'. Can you explain this answer?
Which of the following statements is not true about the power sector in India?
a)
Government needs to invest on the infrastructure to meet growing demand for electricity, India’s commercial energy supply needs to grow at about 7%.
b)
There has been an increase in profits of State Electricity Boards.
c)
Private sector power generators are yet to play their role in a major way.
d)
There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.
|
|
Amita Das answered |
State Electricity Boards (SLBs) which distribute electricity, incur losses which exceed Rs. 500 billion due lo transmission and distribution losses, wrong pricing of electricity and other inefficiencies.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Poverty and unemployment are related to each other.Reason (R): Unemployment leads to poverty.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Poverty and unemployment are related to each other.
Reason (R): Unemployment leads to poverty.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
|
Priyanka Khatri answered |
When unemployment prevails, people don’t get income. As a result, they are not able to get necessities of life and they become poor. Unemployment gives birth to poverty. Therefore, there is a direct relationship between poverty and unemployment.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): When income is zero, consumption is also zero.Reason (R): There is always some minimum level of consumption in the economy even when income is zero.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): When income is zero, consumption is also zero.
Reason (R): There is always some minimum level of consumption in the economy even when income is zero.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
|
Sai Chakraborty answered |
Assertion: When income is zero, consumption is also zero.
Reason: There is always some minimum level of consumption in the economy even when income is zero.
Explanation:
The given assertion states that when income is zero, consumption is also zero. The reason given is that there is always some minimum level of consumption in the economy even when income is zero. Let's analyze both statements individually.
Analysis of Assertion:
When income is zero, it means that an individual has no earning or financial resources. In such a case, it is highly unlikely that the individual would be able to consume anything. Consumption requires some level of financial resources to purchase goods and services. Therefore, it is reasonable to say that when income is zero, consumption is also zero.
Analysis of Reason:
The reason provided states that there is always some minimum level of consumption in the economy even when income is zero. This means that even in the absence of income, individuals would still consume goods and services to meet their basic needs. However, this reason is not correct. When income is zero, it implies that individuals have no financial resources to engage in consumption. While there may be essential goods and services required for survival, it is highly unlikely that individuals would be able to access or afford them without any income.
Conclusion:
Based on the analysis of both the assertion and the reason, it can be concluded that the assertion is false and the reason is true. The reason provided does not correctly explain the assertion. When income is zero, consumption is also zero as individuals do not have the financial means to engage in consumption. Therefore, the correct answer is option D - Assertion (A) is false, but Reason (R) is true.
Reason: There is always some minimum level of consumption in the economy even when income is zero.
Explanation:
The given assertion states that when income is zero, consumption is also zero. The reason given is that there is always some minimum level of consumption in the economy even when income is zero. Let's analyze both statements individually.
Analysis of Assertion:
When income is zero, it means that an individual has no earning or financial resources. In such a case, it is highly unlikely that the individual would be able to consume anything. Consumption requires some level of financial resources to purchase goods and services. Therefore, it is reasonable to say that when income is zero, consumption is also zero.
Analysis of Reason:
The reason provided states that there is always some minimum level of consumption in the economy even when income is zero. This means that even in the absence of income, individuals would still consume goods and services to meet their basic needs. However, this reason is not correct. When income is zero, it implies that individuals have no financial resources to engage in consumption. While there may be essential goods and services required for survival, it is highly unlikely that individuals would be able to access or afford them without any income.
Conclusion:
Based on the analysis of both the assertion and the reason, it can be concluded that the assertion is false and the reason is true. The reason provided does not correctly explain the assertion. When income is zero, consumption is also zero as individuals do not have the financial means to engage in consumption. Therefore, the correct answer is option D - Assertion (A) is false, but Reason (R) is true.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.
Reason: Commercial bank is the apex Bank of India.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Ishan Choudhury answered |
Reverse Repo rate is the short term borrowing rate at which RBI borrows money from banks. The central bank uses this tool to change the money supply in the economy. An increase in the reverse repo rate means that the banks will get a higher rate of interest from RBI.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): It is believed that small-scale industries are more ‘labour intensive’ i.e. they use more labour than the large-scale industries and, therefore, generate more employment.Reason (R): These small scale industries cannot compete with the big industrial firms.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): It is believed that small-scale industries are more ‘labour intensive’ i.e. they use more labour than the large-scale industries and, therefore, generate more employment.
Reason (R): These small scale industries cannot compete with the big industrial firms.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Priyanka Khatri answered |
Small scale industries refers to those industries which requires less capital, less labour as well as less equipments for production. Nowadays, people get attracted more to large scale industry as they produce in large number, have skilled labour for working. Hence, opportunities are less in small scale industries.
Direction: Read the below case and answer the questions that follow:The country’s real gross domestic product (GDP) is likely to expand by 11 percent in the next financial year due to a faster economic recovery and on a low base, says a report. The report by domestic rating agency Brickwork Ratings said economic activities are slowly reaching Pre-COVID levels following the relaxation of the lockdown, except in sectors that remain affected by social distancing norms.“With progress in developing an effective vaccine for COVID-19 and signals of faster-than-expected recovery in the domestic economy, and also supported by a low base, we expect the real GDP to grow at 11 percent in F/Y 22, from the estimated contraction of 7 percent to 7.5 percent in F/Y 21,” the agency said.According to the first advance estimates of national income released by the National Statistical Office (NSO), the country’s GDP is estimated to contract by a record 7.7 percent during the current financial year.Real GDP is when the goods and services are produced by all producing units in the domestic territory of a country during an accounting year and valued at ___________ prices or constant price.- a)base year's
- b)current year's
- c)both (A) and (B)
- d)neither (A) nor (B)
Correct answer is option 'A'. Can you explain this answer?
Direction: Read the below case and answer the questions that follow:
The country’s real gross domestic product (GDP) is likely to expand by 11 percent in the next financial year due to a faster economic recovery and on a low base, says a report. The report by domestic rating agency Brickwork Ratings said economic activities are slowly reaching Pre-COVID levels following the relaxation of the lockdown, except in sectors that remain affected by social distancing norms.
“With progress in developing an effective vaccine for COVID-19 and signals of faster-than-expected recovery in the domestic economy, and also supported by a low base, we expect the real GDP to grow at 11 percent in F/Y 22, from the estimated contraction of 7 percent to 7.5 percent in F/Y 21,” the agency said.
According to the first advance estimates of national income released by the National Statistical Office (NSO), the country’s GDP is estimated to contract by a record 7.7 percent during the current financial year.
Real GDP is when the goods and services are produced by all producing units in the domestic territory of a country during an accounting year and valued at ___________ prices or constant price.
a)
base year's
b)
current year's
c)
both (A) and (B)
d)
neither (A) nor (B)
|
|
Ishan Choudhury answered |
Real GDP is the value of final goods and services produced in a given year expressed in terms of the prices in a base year. To calculate Real GDP, we use base year prices and multiply them by current year quantities for all the goods and services produced in an economy.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If S>I, then equilibrium income will have a tendency to reduce.Reason (R): As according to Keynes, the income employment equilibrium is determined at the point where investments and savings are equal.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): If S>I, then equilibrium income will have a tendency to reduce.
Reason (R): As according to Keynes, the income employment equilibrium is determined at the point where investments and savings are equal.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
|
|
Amita Das answered |
In the Keynesian analysis, the equilibrium level of employment and income is determined at the point of equality between saving and investment. Saving is a function of income, i.e. S = f (Y). It is defined as the excess of income over consumption, S=Y-C and income is equal to consumption plus investment.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Demand deposits are not legal tenders.Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Demand deposits are not legal tenders.
Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Vikas Kapoor answered |
Legal tender money is that form of money that has a legal sanction by the government behind it. Checkable demand deposits are not legal tenders because a person can legally refuse to accept payment through checkable demand deposits.
Read the following case study paragraph carefully and answer the question based on the same.The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.Q. Dear money policy of the central bank, which is used to keep the growth steady and in-line with other economic factors, refers to- a)Tighten the money supply in the economy
- b)Ease the money supply in the economy.
- c)Allow commercial banks to work in a less strict environment
- d)Both (b) and (c)
Correct answer is option 'A'. Can you explain this answer?
Read the following case study paragraph carefully and answer the question based on the same.
The central bank of India i.e. Reserve Bank of India is the apex institution that controls the entire financial market. It’s one of the major functions is to maintain the reserve of foreign exchange. Also, it intervenes in the foreign exchange market to stabilize the excessive fluctuation in the foreign exchange rate.
In other words, it is the central bank’s job to control a country’s economy through monetary policy; if the economy is moving slowly or going backward, there are steps that the central bank can take to boost the economy. These steps, whether they are asset purchases or printing more money, all involve injecting more cash into the economy. The simple supply and demand economic projection occurs and currency will devalue.
When the opposite occurs, and the economy is growing, the central bank will use various methods to keep that growth steady and in-line with other economic factors such as wages and prices. Whatever the central bank does or doesn’t do, will affect the currency of that country. Sometimes, it is within the central bank’s interest to purposefully affect the value of a currency. For example, if the economy is heavily reliant on exports and their currency value becomes too high, importers of that country’s commodities will seek cheaper supply; hence directly affecting the economy.
Q. Dear money policy of the central bank, which is used to keep the growth steady and in-line with other economic factors, refers to
a)
Tighten the money supply in the economy
b)
Ease the money supply in the economy.
c)
Allow commercial banks to work in a less strict environment
d)
Both (b) and (c)
|
|
Amita Das answered |
Dear money policy refers to a monetary policy by the central bank where the central bank sets high interest rates so that credit is not easily available to the general public in order to decrease the real income and hence purchasing power of the people. Such a policy is used by the government at the time of inflation in the economy.
Read the news report given below and answer the question that follow on the basis of the same:NEW DELHI: India’s balance of payments this year is going to be “very very strong” on the back of significant improvement in exports and a fall in imports, Commerce and Industry; Minister Piyush Goyal said on Monday.He said that “good” green shoots are visible in the economy and exports have shown a “good” turnaround. “We are in July at about 91 per cent export level of July 2019 figures. Imports are still at about 70-71 percent of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel confident that Indian industry will see opportunities for themselves, willsee opportunities of growth,” he said at a FICCI webinar.India’s exports fell for the fourth straight month in June as shipments of key segments like petroleum and textiles declined but the country’s trade turned surplus for the first time in 18 years as imports dropped by a steeper 47.59 per cent.The country posted a trade surplus of USD 0.79 billion in June.Q. Consider the following statements:(i) It will get a lot of investments.(ii) The government can achieve its development goals.(iii) Increase the GDP of the economy.(iv) It is more profitable for the domestic manufacturers.Which of the following is the true benefit of having a strong Balance of Payment:- a)i and iii only
- b)iii and iv only
- c)i, iii and iv only
- d)i, ii, iii and iv
Correct answer is option 'B'. Can you explain this answer?
Read the news report given below and answer the question that follow on the basis of the same:
NEW DELHI: India’s balance of payments this year is going to be “very very strong” on the back of significant improvement in exports and a fall in imports, Commerce and Industry; Minister Piyush Goyal said on Monday.
He said that “good” green shoots are visible in the economy and exports have shown a “good” turnaround. “We are in July at about 91 per cent export level of July 2019 figures. Imports are still at about 70-71 percent of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel confident that Indian industry will see opportunities for themselves, will
see opportunities of growth,” he said at a FICCI webinar.
India’s exports fell for the fourth straight month in June as shipments of key segments like petroleum and textiles declined but the country’s trade turned surplus for the first time in 18 years as imports dropped by a steeper 47.59 per cent.
The country posted a trade surplus of USD 0.79 billion in June.
Q. Consider the following statements:
(i) It will get a lot of investments.
(ii) The government can achieve its development goals.
(iii) Increase the GDP of the economy.
(iv) It is more profitable for the domestic manufacturers.
Which of the following is the true benefit of having a strong Balance of Payment:
a)
i and iii only
b)
iii and iv only
c)
i, iii and iv only
d)
i, ii, iii and iv
|
|
Ishan Choudhury answered |
The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): A good indicator of economic growth is steady increase in Gross domestic product (GDP).Reason (R): GDP is the market value of all goods and services produced in a country during a year- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): A good indicator of economic growth is steady increase in Gross domestic product (GDP).
Reason (R): GDP is the market value of all goods and services produced in a country during a year
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Ashish Nambiar answered |
Assertion (A): A good indicator of economic growth is steady increase in Gross domestic product (GDP).
Reason (R): GDP is the market value of all goods and services produced in a country during a year.
To analyze the given assertion and reason, let's break down the key components:
A. A good indicator of economic growth is steady increase in Gross domestic product (GDP).
R. GDP is the market value of all goods and services produced in a country during a year.
Explanation:
Economic growth refers to an increase in the overall output of goods and services within an economy. Gross Domestic Product (GDP) is a commonly used measure to assess the economic performance of a country. It represents the total market value of all goods and services produced within a country's borders during a specific time period, usually a year.
Key Points:
1. GDP is a comprehensive measure that takes into account the value of all goods and services produced within a country, including both tangible and intangible items.
2. An increase in GDP indicates that the economy is producing more goods and services, which is generally associated with economic growth.
3. A steady increase in GDP over time suggests sustained economic growth, whereas fluctuations or declines in GDP may indicate economic instability or contraction.
Conclusion:
Both the assertion and the reason are true. A steady increase in GDP is indeed a good indicator of economic growth because GDP reflects the total value of goods and services produced within a country. However, the reason provided alone does not fully explain why a steady increase in GDP is a good indicator of economic growth. Other factors such as the quality of goods and services, income distribution, and environmental sustainability also play a role in assessing economic growth. Therefore, option B is the correct answer as both the assertion and reason are true, but the reason does not fully explain the assertion.
Reason (R): GDP is the market value of all goods and services produced in a country during a year.
To analyze the given assertion and reason, let's break down the key components:
A. A good indicator of economic growth is steady increase in Gross domestic product (GDP).
R. GDP is the market value of all goods and services produced in a country during a year.
Explanation:
Economic growth refers to an increase in the overall output of goods and services within an economy. Gross Domestic Product (GDP) is a commonly used measure to assess the economic performance of a country. It represents the total market value of all goods and services produced within a country's borders during a specific time period, usually a year.
Key Points:
1. GDP is a comprehensive measure that takes into account the value of all goods and services produced within a country, including both tangible and intangible items.
2. An increase in GDP indicates that the economy is producing more goods and services, which is generally associated with economic growth.
3. A steady increase in GDP over time suggests sustained economic growth, whereas fluctuations or declines in GDP may indicate economic instability or contraction.
Conclusion:
Both the assertion and the reason are true. A steady increase in GDP is indeed a good indicator of economic growth because GDP reflects the total value of goods and services produced within a country. However, the reason provided alone does not fully explain why a steady increase in GDP is a good indicator of economic growth. Other factors such as the quality of goods and services, income distribution, and environmental sustainability also play a role in assessing economic growth. Therefore, option B is the correct answer as both the assertion and reason are true, but the reason does not fully explain the assertion.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): One of the pillars of IPR 1956 was to check concentration of economic power in a few individuals, groups or business houses.Reason (R): It established the public sector as the epicentre of industrialization.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): One of the pillars of IPR 1956 was to check concentration of economic power in a few individuals, groups or business houses.
Reason (R): It established the public sector as the epicentre of industrialization.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Arun Yadav answered |
The 1956 policy in injunction with the IDA act did just reverse of what it was supposed to do. The licensing policy of the government favoured big business houses who were in better position to raise huge amount of capital and had the better management skills to run the industry. They were also able to secure financial assistance from development and finance institutions. Further, since there was no proper system of allocation of licenses in place; pre-empting of licensing by authorities to select people or groups happened due to an array of reasons. Overall, the freedom of entry into industry was restricted due to licensing and this resulted in the concentration of economic power in few individuals.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Money supply is a stock concept.Reason (R): Money supply is measured over a period of time.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Money supply is a stock concept.
Reason (R): Money supply is measured over a period of time.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Kiran Mehta answered |
Money supply is a stock concept. It’s true. But Reason is false as it says Money supply is measured over a period of time. The money supply is measured at a point of time.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Inward Looking Trade Strategy is called Import Substitution.Reason: Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Inward Looking Trade Strategy is called Import Substitution.
Reason: Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Arpita Nambiar answered |
Explanation:
The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
- Assertion (A): Inward Looking Trade Strategy is called Import Substitution.
- Reason (R): Instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself.
The correct answer is option 'A' - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
- The term Import Substitution means that a country tries to produce goods and services domestically rather than importing them from other countries. This helps in reducing the dependence on foreign countries and also helps in developing domestic industries.
- Inward Looking Trade Strategy is a policy where a country tries to focus on its domestic market rather than international markets. This policy involves reducing imports and increasing exports to boost the economy.
- In the given reason, it is stated that instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. This is an example of import substitution where India is trying to produce vehicles domestically instead of importing them from other countries.
- Thus, both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Fiscal deficit is measured in terms of borrowings.Reason (R): External borrowings increase the Fiscal deficit.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increase the Fiscal deficit.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Kiran Mehta answered |
Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): M1 is the least liquid measure of money supply.
Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Kiran Mehta answered |
M1 is the most liquid measure of money supply as it includes all forms of assets that are easily exchangeable as payment for goods and services.
It includes coins and currency in circulation, demand deposits, traveler's checks, and other checkable deposits.
Read the report given below and answer the question that follow:NEW DELHI: Finance Minister Nirmala Sitharaman on Monday announced plans to sell a stake in LIC as part of her disinvestment plans for F/Y 22. In her Budget speech, the FM said her government will complete divestment of BPCL, CONCOR and SCI in F/Y 22. She said that her government will privatise two public sector banks (PSBs) and one general insurance company as well. “LIC IPO may see the light of day soon,” said Jiger Saiya, Partner and Leader - Tax & Regulatory Services at BDO India.Earlier, in an interview with ET, LIC Chairman M R Kumar had said the IPO is very much likely. “The point is that it is going to be big and we want to get the valuations right,” he had said, adding that the listing of an insurance company requires determining the embedded value of the business.LIC has started the process and would soon announce the software, which will assist it determine the right valuation. “We have floated an RFP for the actuarial firm that will undertake the exercise. This calculation will take some time. Once this process is done, we will be ready,” Kumar said on January 11.Last week, a Reuters report quoting sources suggested that the government was looking to sell 10-15 per cent in the country’s biggest insurer to improve public finances.To facilitate the sale of the LIC stake, the government will need Parliament approval to amend the LIC Act.As part of its divestment drive, four CPSEs – HAL, SAIL, Bharat Dynamics and IRCTC –have come out with offers for sale (OFSs) this financial year. They garnered ₹12,907 crore to the exchequer. In addition, IPOs of IRFC and Mazagon Dock Shipbuilders together fetched ₹1,984 crore.Also, this year, the government sold shares worth about ₹1,837 crore in private companies, in which it holds stakes through SUUTI.Four state-owned companies, NTPC, RITES, NMDC and KIOCL, completed share buybacks, adding ₹2,769 crore to the exchequer.The government is also looking to sell its entire 26.12 per cent stake in Tata Communications (TCL), erstwhile VSNL, through an OFS and strategic sale this financial year. The process of privatisation of Air India, BPCL, Pawan Hans, BEML, Shipping Corp, Neelachal Ispat Nigam Limited and Ferro Scrap Nigam Limited (FSNL) is currently underway.Q. The government will privatise _________ Public Sector Banks.- a)One
- b)Two
- c)Three
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
Read the report given below and answer the question that follow:
NEW DELHI: Finance Minister Nirmala Sitharaman on Monday announced plans to sell a stake in LIC as part of her disinvestment plans for F/Y 22. In her Budget speech, the FM said her government will complete divestment of BPCL, CONCOR and SCI in F/Y 22. She said that her government will privatise two public sector banks (PSBs) and one general insurance company as well. “LIC IPO may see the light of day soon,” said Jiger Saiya, Partner and Leader - Tax & Regulatory Services at BDO India.
Earlier, in an interview with ET, LIC Chairman M R Kumar had said the IPO is very much likely. “The point is that it is going to be big and we want to get the valuations right,” he had said, adding that the listing of an insurance company requires determining the embedded value of the business.
LIC has started the process and would soon announce the software, which will assist it determine the right valuation. “We have floated an RFP for the actuarial firm that will undertake the exercise. This calculation will take some time. Once this process is done, we will be ready,” Kumar said on January 11.
Last week, a Reuters report quoting sources suggested that the government was looking to sell 10-15 per cent in the country’s biggest insurer to improve public finances.
To facilitate the sale of the LIC stake, the government will need Parliament approval to amend the LIC Act.
As part of its divestment drive, four CPSEs – HAL, SAIL, Bharat Dynamics and IRCTC –have come out with offers for sale (OFSs) this financial year. They garnered ₹12,907 crore to the exchequer. In addition, IPOs of IRFC and Mazagon Dock Shipbuilders together fetched ₹1,984 crore.
Also, this year, the government sold shares worth about ₹1,837 crore in private companies, in which it holds stakes through SUUTI.
Four state-owned companies, NTPC, RITES, NMDC and KIOCL, completed share buybacks, adding ₹2,769 crore to the exchequer.
The government is also looking to sell its entire 26.12 per cent stake in Tata Communications (TCL), erstwhile VSNL, through an OFS and strategic sale this financial year. The process of privatisation of Air India, BPCL, Pawan Hans, BEML, Shipping Corp, Neelachal Ispat Nigam Limited and Ferro Scrap Nigam Limited (FSNL) is currently underway.
Q. The government will privatise _________ Public Sector Banks.
a)
One
b)
Two
c)
Three
d)
None of the above
|
|
Arun Yadav answered |
Finance Minister Nirmala Sitharaman on Monday announced that her government will privatise two public sector banks (PSBs) and one general insurance company as well.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Aggregate Demand is expressed in terms of total expenditure made in the economy.Reason (R): Aggregate Demand constitutes of Consumption Expenditure, Investment Expenditure, Government Expenditure and Net Exports.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Aggregate Demand is expressed in terms of total expenditure made in the economy.
Reason (R): Aggregate Demand constitutes of Consumption Expenditure, Investment Expenditure, Government Expenditure and Net Exports.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
|
|
Neha Sharma answered |
Aggregate Demand refers to the value of final goods and services which all sectors of an economy are planning to buy during a year.
मणिपुर राज्य को नागालैंड राज्य से अलग करने वाली पहाड़ी श्रृंखला अस के नाम से जानी जाती है- a)अराकान पहाड़ियों
- b)पटकाई पहाड़ियाँ
- c)बरेल पहाड़ियों
- d)मणिपुर की पहाड़ियाँ
Correct answer is option 'C'. Can you explain this answer?
मणिपुर राज्य को नागालैंड राज्य से अलग करने वाली पहाड़ी श्रृंखला अस के नाम से जानी जाती है
a)
अराकान पहाड़ियों
b)
पटकाई पहाड़ियाँ
c)
बरेल पहाड़ियों
d)
मणिपुर की पहाड़ियाँ
|
Bhaskar Kapoor answered |
The hill range separating the state of Manipur from the state of Nagaland is known as:
Geographical Location
The hill range lies in the northeastern part of India, in the region known as Northeast India. It separates the two Indian states of Manipur and Nagaland.
Name of the Hill Range
The hill range that separates Manipur from Nagaland is known as the "Japfü range." It is one of the most prominent ranges in the region and is home to the highest peak in Nagaland, Mount Japfü, which stands at an elevation of 3048 meters.
Significance of the Hill Range
The Japfü range is not only a geographical feature but also holds cultural significance for the local communities living in the region. It is home to the Angami Naga tribe, who consider the region sacred and have preserved their traditional customs and beliefs.
Tourism
The Japfü range is a popular tourist destination and attracts visitors from all over the world. The hill range is a trekker's paradise and offers breathtaking views of the surrounding landscape. It is also home to a diverse range of flora and fauna, including several endemic species.
Conclusion
In conclusion, the hill range separating Manipur from Nagaland is known as the Japfü range. It is an important geographical feature and holds cultural significance for the local communities. The range is also a popular tourist destination and attracts visitors from all over the world.
Geographical Location
The hill range lies in the northeastern part of India, in the region known as Northeast India. It separates the two Indian states of Manipur and Nagaland.
Name of the Hill Range
The hill range that separates Manipur from Nagaland is known as the "Japfü range." It is one of the most prominent ranges in the region and is home to the highest peak in Nagaland, Mount Japfü, which stands at an elevation of 3048 meters.
Significance of the Hill Range
The Japfü range is not only a geographical feature but also holds cultural significance for the local communities living in the region. It is home to the Angami Naga tribe, who consider the region sacred and have preserved their traditional customs and beliefs.
Tourism
The Japfü range is a popular tourist destination and attracts visitors from all over the world. The hill range is a trekker's paradise and offers breathtaking views of the surrounding landscape. It is also home to a diverse range of flora and fauna, including several endemic species.
Conclusion
In conclusion, the hill range separating Manipur from Nagaland is known as the Japfü range. It is an important geographical feature and holds cultural significance for the local communities. The range is also a popular tourist destination and attracts visitors from all over the world.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Paper Money is becoming more popular these days.Reason (R): It is generally acceptable and convenient to carry.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Paper Money is becoming more popular these days.
Reason (R): It is generally acceptable and convenient to carry.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Aditya Sengupta answered |
Assertion (A): Paper Money is becoming more popular these days.
Reason (R): It is generally acceptable and convenient to carry.
The correct answer is option A - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
1. Paper Money is becoming more popular these days:
- The assertion states that paper money is becoming more popular these days. This is true because paper money, also known as fiat money, is widely used as a medium of exchange in most countries.
- With the advancement in technology, electronic payment systems and online banking have gained popularity. However, paper money remains essential for everyday transactions and is widely accepted by businesses and individuals.
- The convenience and ease of use of paper money contribute to its popularity. It is widely available, easily accessible, and can be used for various transactions, including purchasing goods and services, paying bills, and making payments in cash-only establishments.
2. Paper money is generally acceptable and convenient to carry:
- The reason states that paper money is generally acceptable and convenient to carry. This is true because paper money is universally recognized as a valid form of payment and is accepted by most businesses, organizations, and individuals.
- Unlike other forms of payment such as checks or credit cards, paper money does not require any additional verification or authorization. It is a direct and immediate means of payment.
- Paper money is also convenient to carry as it is lightweight, easily foldable, and can be easily stored in wallets, purses, or pockets. It does not require any additional equipment or technology to use.
- Additionally, paper money does not rely on electricity or internet connectivity, making it accessible in remote areas or during emergencies when electronic payment systems may not be available.
Conclusion:
Both the assertion and reason are true, and reason (R) provides a logical explanation for the popularity of paper money. Its universal acceptance and convenience make it a preferred medium of exchange for many individuals and businesses.
Reason (R): It is generally acceptable and convenient to carry.
The correct answer is option A - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
1. Paper Money is becoming more popular these days:
- The assertion states that paper money is becoming more popular these days. This is true because paper money, also known as fiat money, is widely used as a medium of exchange in most countries.
- With the advancement in technology, electronic payment systems and online banking have gained popularity. However, paper money remains essential for everyday transactions and is widely accepted by businesses and individuals.
- The convenience and ease of use of paper money contribute to its popularity. It is widely available, easily accessible, and can be used for various transactions, including purchasing goods and services, paying bills, and making payments in cash-only establishments.
2. Paper money is generally acceptable and convenient to carry:
- The reason states that paper money is generally acceptable and convenient to carry. This is true because paper money is universally recognized as a valid form of payment and is accepted by most businesses, organizations, and individuals.
- Unlike other forms of payment such as checks or credit cards, paper money does not require any additional verification or authorization. It is a direct and immediate means of payment.
- Paper money is also convenient to carry as it is lightweight, easily foldable, and can be easily stored in wallets, purses, or pockets. It does not require any additional equipment or technology to use.
- Additionally, paper money does not rely on electricity or internet connectivity, making it accessible in remote areas or during emergencies when electronic payment systems may not be available.
Conclusion:
Both the assertion and reason are true, and reason (R) provides a logical explanation for the popularity of paper money. Its universal acceptance and convenience make it a preferred medium of exchange for many individuals and businesses.
Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. Read the following statements - Assertion (A) and Reason (R).Assertion (A): Forex reserve of the country will fall.Reason (R): Due to devaluation of domestic currency.Select the correct alternative from the following:- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Read the news report given below and answer the question that follow with respect to the same:
The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.
At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.
The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.
On Friday, the rupee had closed at ₹ 72.96 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.
On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.
Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.
Q. Read the following statements - Assertion (A) and Reason (R).
Assertion (A): Forex reserve of the country will fall.
Reason (R): Due to devaluation of domestic currency.
Select the correct alternative from the following:
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
|
|
Arun Yadav answered |
Imports become more expensive, i.e., the domestic buyers will now have to pay more for imports.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Just a year after independence, efforts towards land reforms were introduced.Reason (R): Ownership of land would give incentives to the tillers to invest in making improvements.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Just a year after independence, efforts towards land reforms were introduced.
Reason (R): Ownership of land would give incentives to the tillers to invest in making improvements.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Priyanka Khatri answered |
The government realized that the agricultural output was not sufficient for the whole country. One way to boost the produce was to make the tillers of the land its owner. And so efforts were made to abolish the intermediaries and this was known as the land reforms.
Read the report given below and answer the questions that follow:When, at a particular price level, aggregate demand for final goods equals aggregate supply of final goods, the final goods or product market reaches its equilibrium. Aggregate demand for final goods consists of ex-ante consumption, ex-ante investment, government spending, etc. The rate of increase in ex-ante consumption due to a unit increment in income is called marginal propensity to consume. For simplicity we assume a constant final goods price and constant rate of interest over short run to determine the level of aggregate demand for final goods in the economy. We also assume that the aggregate supply is perfectly elastic at this price. Under such circumstances, aggregate output is determined solely by the level of aggregate demand. This is known as effective demand principle. An increase (decrease) in autonomous spending causes aggregate output of final goods to increase (decrease) by a larger amount through the multiplier process.What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?- a)Investment Multiplier
- b)Effective Demand
- c)Propensity to Consume
- d)Propensity to Save
Correct answer is option 'B'. Can you explain this answer?
Read the report given below and answer the questions that follow:
When, at a particular price level, aggregate demand for final goods equals aggregate supply of final goods, the final goods or product market reaches its equilibrium. Aggregate demand for final goods consists of ex-ante consumption, ex-ante investment, government spending, etc. The rate of increase in ex-ante consumption due to a unit increment in income is called marginal propensity to consume. For simplicity we assume a constant final goods price and constant rate of interest over short run to determine the level of aggregate demand for final goods in the economy. We also assume that the aggregate supply is perfectly elastic at this price. Under such circumstances, aggregate output is determined solely by the level of aggregate demand. This is known as effective demand principle. An increase (decrease) in autonomous spending causes aggregate output of final goods to increase (decrease) by a larger amount through the multiplier process.
What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?
a)
Investment Multiplier
b)
Effective Demand
c)
Propensity to Consume
d)
Propensity to Save
|
|
Amita Das answered |
Under such circumstances, equilibrium output will be solely determined by the aggregate amount of demand at this price in the economy. We call it effective demand principle.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Modernization includes adaptation of Technology and change in Social OutlookReason (R): Modernization raises the standard of living of People.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Modernization includes adaptation of Technology and change in Social Outlook
Reason (R): Modernization raises the standard of living of People.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Vikas Kapoor answered |
Modernization, in sociology, the transformation from a traditional, rural, agrarian society to a secular, urban, industrial society.
Modern society is an industrial society. To modernize a society is, first of all, to industrialize it. Historically, the rise of modern society has been inextricably linked with the emergence of industrial society
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Fiscal deficit is the difference between primary deficit and interest payment.Reason (R): Fiscal deficit is the sum total of primary deficit and interest payment.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Fiscal deficit is the difference between primary deficit and interest payment.
Reason (R): Fiscal deficit is the sum total of primary deficit and interest payment.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Amita Das answered |
Fiscal Deficit refers to the excess of total expenditure over total receipts excluding borrowings. It indicates borrowing requirements of the government.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): We can still encounter a barter system in the modern economic system.Reason (R): People exchange old clothes for utensils.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): We can still encounter a barter system in the modern economic system.
Reason (R): People exchange old clothes for utensils.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
|
Arpita Nambiar answered |
Answer:
Assertion (A): We can still encounter a barter system in the modern economic system.
Reason (R): People exchange old clothes for utensils.
The correct choice is (A) Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
Bartering is the exchange of goods and services without the use of money. In a barter system, people exchange goods and services for other goods and services that they need. The barter system is an ancient system of trade that goes back to prehistoric times. Although the barter system has largely been replaced by the use of money, it still exists in some parts of the world.
The reason given in the statement is that people exchange old clothes for utensils. This is an example of a barter system. In a barter system, people exchange goods and services for other goods and services that they need. In this case, people exchange old clothes for utensils that they need. This is a common practice in many parts of the world, especially in rural areas.
Therefore, the assertion that we can still encounter a barter system in the modern economic system is true, and the reason given is the correct explanation of the assertion. The barter system still exists in some parts of the world, especially in rural areas where people do not have access to money or prefer to use goods and services to trade.
Assertion (A): We can still encounter a barter system in the modern economic system.
Reason (R): People exchange old clothes for utensils.
The correct choice is (A) Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Explanation:
Bartering is the exchange of goods and services without the use of money. In a barter system, people exchange goods and services for other goods and services that they need. The barter system is an ancient system of trade that goes back to prehistoric times. Although the barter system has largely been replaced by the use of money, it still exists in some parts of the world.
The reason given in the statement is that people exchange old clothes for utensils. This is an example of a barter system. In a barter system, people exchange goods and services for other goods and services that they need. In this case, people exchange old clothes for utensils that they need. This is a common practice in many parts of the world, especially in rural areas.
Therefore, the assertion that we can still encounter a barter system in the modern economic system is true, and the reason given is the correct explanation of the assertion. The barter system still exists in some parts of the world, especially in rural areas where people do not have access to money or prefer to use goods and services to trade.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion(A ) The central bank issues currency on the basis of CRR.Reason ( R ) The CRR impacts credit creation capacity of the commercial bank.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'D'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion(A ) The central bank issues currency on the basis of CRR.
Reason ( R ) The CRR impacts credit creation capacity of the commercial bank.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Kavya Das answered |
Assertion (A): The central bank issues currency on the basis of CRR.
Reason (R): The CRR impacts credit creation capacity of the commercial bank.
The correct answer is option 'D' - Assertion (A) is false but reason (R) is true. Let's discuss the statement and reason in detail.
Explanation:
The Cash Reserve Ratio (CRR) is the percentage of total deposits that commercial banks are required to maintain as reserves with the central bank. The central bank uses the CRR as a monetary policy tool to control the liquidity in the banking system.
Assertion (A): The central bank issues currency on the basis of CRR.
This assertion is false. The central bank does not issue currency on the basis of the CRR. The central bank is responsible for the issuance and management of currency in the economy, but the CRR is not directly related to the issuance of currency. The central bank issues currency based on the demand for money in the economy, economic conditions, and the need for currency circulation.
Reason (R): The CRR impacts credit creation capacity of the commercial bank.
This reason is true. The CRR impacts the credit creation capacity of commercial banks. When commercial banks receive deposits from customers, they are required to maintain a certain percentage of these deposits as reserves with the central bank. The remaining portion of the deposits is available for lending and credit creation by the banks. Therefore, the CRR directly affects the amount of money that banks can lend out and, subsequently, the credit creation capacity of the banks.
By adjusting the CRR, the central bank can control the liquidity in the banking system. A higher CRR means banks have to keep a larger portion of their deposits as reserves, which reduces the amount of money available for lending and credit creation. Conversely, a lower CRR allows banks to keep a smaller portion of their deposits as reserves, thereby increasing the amount of money available for lending and credit creation.
In conclusion, the assertion that the central bank issues currency on the basis of CRR is false. However, the reason that the CRR impacts the credit creation capacity of commercial banks is true.
Reason (R): The CRR impacts credit creation capacity of the commercial bank.
The correct answer is option 'D' - Assertion (A) is false but reason (R) is true. Let's discuss the statement and reason in detail.
Explanation:
The Cash Reserve Ratio (CRR) is the percentage of total deposits that commercial banks are required to maintain as reserves with the central bank. The central bank uses the CRR as a monetary policy tool to control the liquidity in the banking system.
Assertion (A): The central bank issues currency on the basis of CRR.
This assertion is false. The central bank does not issue currency on the basis of the CRR. The central bank is responsible for the issuance and management of currency in the economy, but the CRR is not directly related to the issuance of currency. The central bank issues currency based on the demand for money in the economy, economic conditions, and the need for currency circulation.
Reason (R): The CRR impacts credit creation capacity of the commercial bank.
This reason is true. The CRR impacts the credit creation capacity of commercial banks. When commercial banks receive deposits from customers, they are required to maintain a certain percentage of these deposits as reserves with the central bank. The remaining portion of the deposits is available for lending and credit creation by the banks. Therefore, the CRR directly affects the amount of money that banks can lend out and, subsequently, the credit creation capacity of the banks.
By adjusting the CRR, the central bank can control the liquidity in the banking system. A higher CRR means banks have to keep a larger portion of their deposits as reserves, which reduces the amount of money available for lending and credit creation. Conversely, a lower CRR allows banks to keep a smaller portion of their deposits as reserves, thereby increasing the amount of money available for lending and credit creation.
In conclusion, the assertion that the central bank issues currency on the basis of CRR is false. However, the reason that the CRR impacts the credit creation capacity of commercial banks is true.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion ( A): Eliminating subsidies goes against the goal of Equity.
Reason (R): It will increase the disparity between rich and poor farmers.
- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion ( A): Eliminating subsidies goes against the goal of Equity.
Reason (R): It will increase the disparity between rich and poor farmers.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Vikas Kapoor answered |
Eliminating subsidies can indeed go against the goal of equity because it would likely increase the disparity between rich and poor farmers. Subsidies often help to level the playing field by providing financial support to those who may not have sufficient resources. Removing these subsidies can disproportionately affect poor farmers, widening the economic gap between them and richer farmers.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): The minimum value of investment multiplier is equal to one.Reason (R): The minimum value of investment multiplier is 1, when MPC is 0 and MPC can never be negative.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): The minimum value of investment multiplier is equal to one.
Reason (R): The minimum value of investment multiplier is 1, when MPC is 0 and MPC can never be negative.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
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Shruti Mehta answered |
Assertion (A): The minimum value of investment multiplier is equal to one.
Reason (R): The minimum value of investment multiplier is 1, when MPC is 0 and MPC can never be negative.
The correct answer is option 'A' which states that both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Investment multiplier is a measure of the change in national income resulting from a change in investment. It shows how much the national income will increase for a given change in investment, and it depends on the marginal propensity to consume (MPC).
The MPC refers to the proportion of additional income that individuals choose to spend rather than save. It is a key determinant of the investment multiplier. If the MPC is higher, the investment multiplier will be higher, and vice versa.
Minimum value of investment multiplier:
The minimum value of investment multiplier occurs when the MPC is 0. This means that individuals do not spend any additional income and save it all. In this case, the investment multiplier will be equal to 1.
Explanation of Reason (R):
The reason given in Reason (R) is correct. The MPC can never be negative because it represents the proportion of additional income that individuals choose to spend rather than save. It ranges from 0 to 1, where 0 represents saving all additional income and 1 represents spending all additional income.
When the MPC is 0, it means that individuals save all additional income, and there is no increase in consumption. In this case, the investment multiplier will be 1 because there is no multiplier effect on national income.
Therefore, the minimum value of investment multiplier is indeed 1 when the MPC is 0, and the MPC can never be negative.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). The minimum value of investment multiplier is equal to one when the MPC is 0, and the MPC can never be negative.
Reason (R): The minimum value of investment multiplier is 1, when MPC is 0 and MPC can never be negative.
The correct answer is option 'A' which states that both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Investment multiplier is a measure of the change in national income resulting from a change in investment. It shows how much the national income will increase for a given change in investment, and it depends on the marginal propensity to consume (MPC).
The MPC refers to the proportion of additional income that individuals choose to spend rather than save. It is a key determinant of the investment multiplier. If the MPC is higher, the investment multiplier will be higher, and vice versa.
Minimum value of investment multiplier:
The minimum value of investment multiplier occurs when the MPC is 0. This means that individuals do not spend any additional income and save it all. In this case, the investment multiplier will be equal to 1.
Explanation of Reason (R):
The reason given in Reason (R) is correct. The MPC can never be negative because it represents the proportion of additional income that individuals choose to spend rather than save. It ranges from 0 to 1, where 0 represents saving all additional income and 1 represents spending all additional income.
When the MPC is 0, it means that individuals save all additional income, and there is no increase in consumption. In this case, the investment multiplier will be 1 because there is no multiplier effect on national income.
Therefore, the minimum value of investment multiplier is indeed 1 when the MPC is 0, and the MPC can never be negative.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). The minimum value of investment multiplier is equal to one when the MPC is 0, and the MPC can never be negative.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Autonomous items cause movements of goods and services across the borders.Reason (R): Accommodating items to clear the deficit or surplus in the Balance of Payment.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Autonomous items cause movements of goods and services across the borders.
Reason (R): Accommodating items to clear the deficit or surplus in the Balance of Payment.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Kiran Mehta answered |
Autonomous items refers to those Balance of Payment (BOP) transactions which are undertaken for profit.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): GDP indicates the size of an economy.Reason (R): A higher GDP indicates higher economic activity.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): GDP indicates the size of an economy.
Reason (R): A higher GDP indicates higher economic activity.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Priyanka Khatri answered |
Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes.
Read the following report and answer the questions that follow:Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the ________________ in the economy.- a)Aggregate demand
- b)Aggregate supply
- c)Investment
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Read the following report and answer the questions that follow:
Due to the Covid-19 situation, there has been a fall in the savings of the people, and they are spending the savings. This has led to the consumption to be done by the reduction of the savings. In order to control the situation, the government has announced various stimulus packages to revive the economy and providing employment through road and railway building projects. Still the desired savings or ex-ante savings that is required for the functioning of the economy has reduced. It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the aggregate demand in the economy.
It is seen that the private consumption expenditure, private investment expenditure and ex-ante savings has reduced the ________________ in the economy.
a)
Aggregate demand
b)
Aggregate supply
c)
Investment
d)
None of the above
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|
Vikas Kapoor answered |
Aggregate demand represents the total demand for goods and services at any given price level in a given period. Aggregate demand consists of all consumer goods, capital goods (factories and equipment), exports, imports, and government spending programs.
Read the report given below and answer the questions that follow:In an economy the Aggregate Demand is determined by consumption, Government Expenditure and Net Exports in the economy. This is affected by the Savings and Investment in the economy. The Multiplier, that is investment multiplier, which is influenced by the ratio of total consumption and total income, regulates the flow of money in the economy influencing the Aggregate Demand and Supply. Any change in any of the factors leads to a big change in the economy’s equilibrium as a whole. It is to be kept in mind that the economy needs to be in equilibrium condition. When savings is less than the investments the aggregate demand is more than the aggregate supply, and vice versa.Savings and Investment affect the ________.- a)Aggregate demand and supply
- b)Government policies
- c)Government budget
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
Read the report given below and answer the questions that follow:
In an economy the Aggregate Demand is determined by consumption, Government Expenditure and Net Exports in the economy. This is affected by the Savings and Investment in the economy. The Multiplier, that is investment multiplier, which is influenced by the ratio of total consumption and total income, regulates the flow of money in the economy influencing the Aggregate Demand and Supply. Any change in any of the factors leads to a big change in the economy’s equilibrium as a whole. It is to be kept in mind that the economy needs to be in equilibrium condition. When savings is less than the investments the aggregate demand is more than the aggregate supply, and vice versa.
Savings and Investment affect the ________.
a)
Aggregate demand and supply
b)
Government policies
c)
Government budget
d)
None of the above
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Neha Sharma answered |
- In the long term, an increase in investment should also increase productive capacity and increase aggregate supply. Therefore, investment can enable a more sustainable increase in AD. The increase in capacity enables a sustained rise in AD without causing inflation.
- As household wealth increases, aggregate demand usually increases as well. Conversely, a decline in wealth usually leads to lower aggregate demand. Increases in personal savings will also lead to less demand for goods, which tends to occur during recessions.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Capitalist economies fosters self-interest and pushes economic growth.Reason (R): Market economies make best use of available resources to economic growth.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Capitalist economies fosters self-interest and pushes economic growth.
Reason (R): Market economies make best use of available resources to economic growth.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Vikas Kapoor answered |
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. It is this rational self-interest that can lead to economic prosperity.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.Reason ( R): Our planners wanted to use foreign exchange for importing luxury goods.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'C'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion: (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
Reason ( R): Our planners wanted to use foreign exchange for importing luxury goods.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Gaurav Saini answered |
Assertion: Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
Reason: Our planners wanted to use foreign exchange for importing luxury goods.
Explanation:
Tariffs and quotas were implemented in the economic policy post-Independence to protect and promote domestic industries. This assertion is true because the government wanted to encourage the growth of domestic industries and reduce reliance on imported goods. By imposing tariffs and quotas on imported goods, the government aimed to make domestic products more competitive and stimulate the growth of local industries.
The reason given, that our planners wanted to use foreign exchange for importing luxury goods, is false. The objective of implementing tariffs and quotas was not to prioritize the import of luxury goods but to protect domestic industries and reduce dependence on imports in general. The government wanted to promote self-sufficiency and develop domestic industries to boost the economy.
The correct answer is option 'C' because the assertion is true, but the reason given is false. The reason does not explain the purpose of implementing tariffs and quotas in the economic policy post-Independence accurately.
In summary:
- Assertion (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
- Reason (R): Our planners wanted to use foreign exchange for importing luxury goods.
- The assertion is true because tariffs and quotas were indeed used to support domestic industries.
- The reason is false because the objective was not to prioritize the import of luxury goods but to promote self-sufficiency and reduce dependence on imports in general.
Reason: Our planners wanted to use foreign exchange for importing luxury goods.
Explanation:
Tariffs and quotas were implemented in the economic policy post-Independence to protect and promote domestic industries. This assertion is true because the government wanted to encourage the growth of domestic industries and reduce reliance on imported goods. By imposing tariffs and quotas on imported goods, the government aimed to make domestic products more competitive and stimulate the growth of local industries.
The reason given, that our planners wanted to use foreign exchange for importing luxury goods, is false. The objective of implementing tariffs and quotas was not to prioritize the import of luxury goods but to protect domestic industries and reduce dependence on imports in general. The government wanted to promote self-sufficiency and develop domestic industries to boost the economy.
The correct answer is option 'C' because the assertion is true, but the reason given is false. The reason does not explain the purpose of implementing tariffs and quotas in the economic policy post-Independence accurately.
In summary:
- Assertion (A): Tariffs and quotas in the economic policy post-Independence were used to assist domestic industries.
- Reason (R): Our planners wanted to use foreign exchange for importing luxury goods.
- The assertion is true because tariffs and quotas were indeed used to support domestic industries.
- The reason is false because the objective was not to prioritize the import of luxury goods but to promote self-sufficiency and reduce dependence on imports in general.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Currency held with the government and banks is not included in the Money Supply.Reason (R): Currency can be legally used to make payment of debts or other obligations.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Currency held with the government and banks is not included in the Money Supply.
Reason (R): Currency can be legally used to make payment of debts or other obligations.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
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Raghav Yadav answered |
Assertion (A): Currency held with the government and banks is not included in the Money Supply.
Reason (R): Currency can be legally used to make payment of debts or other obligations.
Explanation:
The correct answer is option B, which states that both the assertion (A) and reason (R) are true, but the reason is not the correct explanation of the assertion.
Definition of Money Supply:
Money supply refers to the total amount of money available in an economy at a given point in time. It includes all the physical currency in circulation, such as coins and banknotes, as well as the demand deposits held by commercial banks and other financial institutions.
Explanation of Assertion (A):
Currency held with the government and banks is not included in the Money Supply. This is because the currency held by the government and banks is not readily available for circulation in the economy. It is considered as a part of the country's reserves or holdings and is not counted as part of the money supply.
Explanation of Reason (R):
Currency can be legally used to make payment of debts or other obligations. This means that currency is a legal tender, which can be used to settle financial obligations. However, the reason alone does not explain why currency held with the government and banks is not included in the money supply. It only establishes the fact that currency can be used for making payments.
Additional Information:
The money supply is usually measured by different monetary aggregates, such as M0, M1, M2, and M3, which include various forms of money. M0 represents the narrowest measure of money supply and includes only the physical currency in circulation (coins and banknotes) and the reserves held by commercial banks. M1 includes M0 plus demand deposits held by banks. M2 includes M1 plus time deposits, savings deposits, and money market mutual funds. M3 includes M2 plus large time deposits, institutional money market funds, and other large liquid assets.
In conclusion, while the assertion is true that currency held with the government and banks is not included in the money supply, the reason provided does not fully explain this exclusion.
Reason (R): Currency can be legally used to make payment of debts or other obligations.
Explanation:
The correct answer is option B, which states that both the assertion (A) and reason (R) are true, but the reason is not the correct explanation of the assertion.
Definition of Money Supply:
Money supply refers to the total amount of money available in an economy at a given point in time. It includes all the physical currency in circulation, such as coins and banknotes, as well as the demand deposits held by commercial banks and other financial institutions.
Explanation of Assertion (A):
Currency held with the government and banks is not included in the Money Supply. This is because the currency held by the government and banks is not readily available for circulation in the economy. It is considered as a part of the country's reserves or holdings and is not counted as part of the money supply.
Explanation of Reason (R):
Currency can be legally used to make payment of debts or other obligations. This means that currency is a legal tender, which can be used to settle financial obligations. However, the reason alone does not explain why currency held with the government and banks is not included in the money supply. It only establishes the fact that currency can be used for making payments.
Additional Information:
The money supply is usually measured by different monetary aggregates, such as M0, M1, M2, and M3, which include various forms of money. M0 represents the narrowest measure of money supply and includes only the physical currency in circulation (coins and banknotes) and the reserves held by commercial banks. M1 includes M0 plus demand deposits held by banks. M2 includes M1 plus time deposits, savings deposits, and money market mutual funds. M3 includes M2 plus large time deposits, institutional money market funds, and other large liquid assets.
In conclusion, while the assertion is true that currency held with the government and banks is not included in the money supply, the reason provided does not fully explain this exclusion.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Medical Tourism is great opportunity for India.Reason (R): Indian health services combine the latest medical technologies with qualified professionals and are cheaper for foreigners. By upgrading health services, it can be a great opportunity for India.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Medical Tourism is great opportunity for India.
Reason (R): Indian health services combine the latest medical technologies with qualified professionals and are cheaper for foreigners. By upgrading health services, it can be a great opportunity for India.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
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|
Vikas Kapoor answered |
Medical tourism is the term commonly used to describe international travel for the purpose of receiving medical care. Medical tourists may pursue medical care abroad for a variety of reasons, such as decreased cost, a recommendation from friends or family, the opportunity to combine medical care with a vacation destination, a preference for care from providers who share the traveler’s culture, or to receive a procedure or therapy not available in their country of residence. Medical tourism is a worldwide, multibillion-dollar market that continues to grow. Surveillance data indicate that millions of US residents travel internationally for medical care each year. Ongoing reports of infections and other adverse events following medical or dental procedures abroad serve as reminders that medical tourism is not without risks.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. She is considered as self-employed worker.Reason (R): Self-employed workers are those who uses their own resources to earn and make a living.- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. She is considered as self-employed worker.
Reason (R): Self-employed workers are those who uses their own resources to earn and make a living.
a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.
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|
Ishan Choudhury answered |
A person who participates in the production process and contributes to GDP formation is referred to as a worker. As here, Meena works in a cloth store to support her husband and contribute to GDP by donating her services, therefore, she can be considered an worker.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: To curb inflation , the RBI should sell the Government securities.Reason: When RBI will sell Government securities to the people and commercial banks then money will flow to RBI which reduces the lending capacity of commercial banks.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion: To curb inflation , the RBI should sell the Government securities.
Reason: When RBI will sell Government securities to the people and commercial banks then money will flow to RBI which reduces the lending capacity of commercial banks.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
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Arun Yadav answered |
To control the inflationary trend, the Central Bank should sale government securities and raise the bank rate. Both of the measures given above result in reduction in the purchasing power of people.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.
Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
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Kiran Mehta answered |
Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time.
Money supply is measured in several ways among which M1 is a type of measurement that measures the money as a medium of exchange function.
M1= C+ DD+ OD
where,
C: It refers to currency held by public in terms of coins and paper notes.
DD: It refers demand deposits of the people with the commercial bank.
OD: These includes other deposits with public financial institution, foreign central banks and international financial institution.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): Because of India's rapidly growing population the country's traditional agricultural practices yielded insufficient food production.Reason (R): Agricultural technological advancements offered opportunities to increase productivity.- a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
- b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
- c)Assertion (A) is true but reason (R) is false.
- d)Assertion (A) is false but reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Because of India's rapidly growing population the country's traditional agricultural practices yielded insufficient food production.
Reason (R): Agricultural technological advancements offered opportunities to increase productivity.
a)
Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
b)
Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
c)
Assertion (A) is true but reason (R) is false.
d)
Assertion (A) is false but reason (R) is true.
|
Arnav Kulkarni answered |
Assertion (A): Because of India's rapidly growing population the country's traditional agricultural practices yielded insufficient food production.
Reason (R): Agricultural technological advancements offered opportunities to increase productivity.
The correct answer to this question is option 'B' - Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
Explanation:
Assertion (A): Because of India's rapidly growing population the country's traditional agricultural practices yielded insufficient food production.
India's population has been growing rapidly over the years. The increasing population has put a strain on the country's traditional agricultural practices. Traditional agricultural practices in India often involve manual labor and outdated techniques, which limit the overall productivity of the agricultural sector. As the population grows, the demand for food increases, and traditional practices cannot keep up with this rising demand. Therefore, it is true that India's traditional agricultural practices yielded insufficient food production due to the rapidly growing population.
Reason (R): Agricultural technological advancements offered opportunities to increase productivity.
Agricultural technological advancements have indeed offered opportunities to increase productivity in the agricultural sector. New technologies and techniques such as mechanization, irrigation systems, genetically modified crops, and precision farming have the potential to significantly enhance agricultural productivity. These advancements can help improve crop yields, reduce post-harvest losses, optimize resource utilization, and increase overall efficiency in the agricultural value chain. Therefore, it is also true that agricultural technological advancements have offered opportunities to increase productivity.
Explanation of the Correct Answer:
While both the assertion and reason are true, reason (R) is not the correct explanation of assertion (A). Although agricultural technological advancements have indeed offered opportunities to increase productivity, it does not directly explain why India's traditional agricultural practices yielded insufficient food production due to the rapidly growing population. The primary reason for the insufficient food production in India is the inadequacy of traditional practices to meet the rising demand caused by the rapidly growing population. While agricultural technological advancements can help address this issue, they are not the sole reason for the insufficiency. Therefore, option 'B' is the correct answer.
Reason (R): Agricultural technological advancements offered opportunities to increase productivity.
The correct answer to this question is option 'B' - Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
Explanation:
Assertion (A): Because of India's rapidly growing population the country's traditional agricultural practices yielded insufficient food production.
India's population has been growing rapidly over the years. The increasing population has put a strain on the country's traditional agricultural practices. Traditional agricultural practices in India often involve manual labor and outdated techniques, which limit the overall productivity of the agricultural sector. As the population grows, the demand for food increases, and traditional practices cannot keep up with this rising demand. Therefore, it is true that India's traditional agricultural practices yielded insufficient food production due to the rapidly growing population.
Reason (R): Agricultural technological advancements offered opportunities to increase productivity.
Agricultural technological advancements have indeed offered opportunities to increase productivity in the agricultural sector. New technologies and techniques such as mechanization, irrigation systems, genetically modified crops, and precision farming have the potential to significantly enhance agricultural productivity. These advancements can help improve crop yields, reduce post-harvest losses, optimize resource utilization, and increase overall efficiency in the agricultural value chain. Therefore, it is also true that agricultural technological advancements have offered opportunities to increase productivity.
Explanation of the Correct Answer:
While both the assertion and reason are true, reason (R) is not the correct explanation of assertion (A). Although agricultural technological advancements have indeed offered opportunities to increase productivity, it does not directly explain why India's traditional agricultural practices yielded insufficient food production due to the rapidly growing population. The primary reason for the insufficient food production in India is the inadequacy of traditional practices to meet the rising demand caused by the rapidly growing population. While agricultural technological advancements can help address this issue, they are not the sole reason for the insufficiency. Therefore, option 'B' is the correct answer.
Chapter doubts & questions for CBSE Practice Questions - Economics Class 12 2024 is part of Commerce exam preparation. The chapters have been prepared according to the Commerce exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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