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Previous Year Questions: Economics- 5


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30 Questions MCQ Test Indian Economy for UPSC CSE | Previous Year Questions: Economics- 5

Previous Year Questions: Economics- 5 for UPSC 2022 is part of Indian Economy for UPSC CSE preparation. The Previous Year Questions: Economics- 5 questions and answers have been prepared according to the UPSC exam syllabus.The Previous Year Questions: Economics- 5 MCQs are made for UPSC 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Previous Year Questions: Economics- 5 below.
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Previous Year Questions: Economics- 5 - Question 1

Which from the following is not true when the interest rate in the economy goes up?         

Detailed Solution for Previous Year Questions: Economics- 5 - Question 1

When interest rates are rising, both businesses and consumers will cut back on spending. This will cause earnings to fall and stock prices to drop. On the other hand, when interest rates have fallen significantly, consumers and businesses will increase spending, causing stock prices to rise.

Previous Year Questions: Economics- 5 - Question 2

    Which of the following has the sole right of issuing currency (except one rupee coins and notes) in India?                    

Previous Year Questions: Economics- 5 - Question 3

The Narasimham Committee (1991) on financial reforms proposed for establishment of a                    

Detailed Solution for Previous Year Questions: Economics- 5 - Question 3

The correct option is A.
It recommended the introduction of a four tier banking system in the country: I tier: 3 or 4 International Banks; II tier: 8 to 10 National Banks; III tier Regional Banks; and IV tier: Rural Banks.

Previous Year Questions: Economics- 5 - Question 4

Which of the following Indian banks became the first to touch a market capitalisation of Rs. 100000 crore in India?            

Previous Year Questions: Economics- 5 - Question 5

The best way a bank can avoid loss is to                    

Detailed Solution for Previous Year Questions: Economics- 5 - Question 5

C is the correct option.The best way for a bank to avoid loss is to accept only sound collateral. In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

Previous Year Questions: Economics- 5 - Question 6

Devaluation of currency leads to         

Previous Year Questions: Economics- 5 - Question 7

Green banking means             

Previous Year Questions: Economics- 5 - Question 8

Long-term funds in the capital market can be raised either by borrowing from certain institutions or through

Detailed Solution for Previous Year Questions: Economics- 5 - Question 8

C is the correct option.Long-term funds in the capital market can be raised either by borrowing from certain institutions or through  issue of securities.
Involve the public issue of equity and preference shares in the stock exchange. Issuing shares is the most common method of raising long-term capital because there are various many investors who are ready to invest in the capital market. Therefore, shares are used to finance projects having a long gestation period.
 

Previous Year Questions: Economics- 5 - Question 9

Which one of the following is not a quantitative credit control techniques?            

Detailed Solution for Previous Year Questions: Economics- 5 - Question 9

The correct answer is D as Bank rate, Statutory Cash Reserve Requirement, Statutory Liquidity Ratio are the instruments of quantitative credit control.
Except the interest rate on saving deposit.
 

Previous Year Questions: Economics- 5 - Question 10

Foreign currency which has a tendency of quick migration is called            

Previous Year Questions: Economics- 5 - Question 11

    The total number of nationalised banks in India is                     

Detailed Solution for Previous Year Questions: Economics- 5 - Question 11

As of July 2020 after the recent mergers of government banks, there are a total of 12 nationalized banks in India and RBI is the governing body that manages these nationalised banks.

Previous Year Questions: Economics- 5 - Question 12

    Purchasing power parity theory is related with                    

Previous Year Questions: Economics- 5 - Question 13

What does ECS in banking xjf transactions stand for?                     

Previous Year Questions: Economics- 5 - Question 14

Inflation occurs when aggregate supply is                    

Previous Year Questions: Economics- 5 - Question 15

The ‘Interest Rate Policy’ is a component of                    

Previous Year Questions: Economics- 5 - Question 16

    Bank deposits that can be withdrawn without notice are called            

Detailed Solution for Previous Year Questions: Economics- 5 - Question 16

A demand deposit account (DDA) consists of funds held in a bank account from which deposited funds can be withdrawn at any time, such as checking accounts. DDA accounts can pay interest on a deposit into the accounts but aren’t required. A DDA allows funds to be accessed anytime, while a term deposit account restricts access for a predetermined time.

Previous Year Questions: Economics- 5 - Question 17

Scheduled Banks have to be registered with                     

Previous Year Questions: Economics- 5 - Question 18

New capital issue is placed in         

Previous Year Questions: Economics- 5 - Question 19

Which of the following is not viewed as national debt?                    

Previous Year Questions: Economics- 5 - Question 20

If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should         

Previous Year Questions: Economics- 5 - Question 21

    In India, one-rupee coins and notes and subsidiary coins are issued by            

Previous Year Questions: Economics- 5 - Question 22

Which of the following is apex bank for industrial loans?             

Previous Year Questions: Economics- 5 - Question 23

The basic regulatory authority for mutual funds and stock markets lies with the        

Previous Year Questions: Economics- 5 - Question 24

The Government resorts to devaluation of its currency in order to promote            

Previous Year Questions: Economics- 5 - Question 25

Deficit financing is an instrument of    

Previous Year Questions: Economics- 5 - Question 26

Which of the following can be used for checking inflation temporarily?            

Previous Year Questions: Economics- 5 - Question 27

Devaluation makes import        

Detailed Solution for Previous Year Questions: Economics- 5 - Question 27

D is the correct option.Lowering of the value of a currency of a country tends to raise its exports by making its goods cheaper for foreigners. On the other hand, devaluation or depreciation makes the imports from abroad expensive in terms of domestic currency (rupees in case of India) and therefore the imports tend to fall.

Previous Year Questions: Economics- 5 - Question 28

Commercial Bank law creates credit only if it has                    

Previous Year Questions: Economics- 5 - Question 29

Rate of interest is determined by        

Previous Year Questions: Economics- 5 - Question 30

Bull and Bear are related to which commercial activity?                     

Detailed Solution for Previous Year Questions: Economics- 5 - Question 30

In the investing world, the terms "bull" and "bear" are frequently used to describe market conditions. These terms are used to describe how stock markets are doing in general—that is, whether they are appreciating or depreciating in value. And as an investor, the direction of the market is a major force that has a huge impact on your portfolio. So, it's important to understand how each of these market conditions may impact your investments.

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