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Test: Indian Economy and Indian Financial System - 4 - Bank Exams MCQ


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30 Questions MCQ Test - Test: Indian Economy and Indian Financial System - 4

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Test: Indian Economy and Indian Financial System - 4 - Question 1

Assertion: The Green Revolution in agriculture led to a significant increase in food production.
Reason: The Green Revolution introduced advanced agricultural practices and high-yielding crop varieties.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 1
  • The assertion is true. The Green Revolution, which occurred in the mid-20th century, was a series of agricultural advancements that led to a significant increase in food production, particularly in countries like India.
  • The reason is also true and provides the correct explanation for the assertion. The Green Revolution introduced advanced agricultural practices, improved irrigation methods, and high-yielding crop varieties. These innovations collectively contributed to increased agricultural productivity and food security.
Test: Indian Economy and Indian Financial System - 4 - Question 2

Which of the following statements accurately explains the significance of the tertiary sector in the economy?
Statement I: The tertiary sector is primarily involved in manufacturing and processing activities.
Statement II: The tertiary sector contributes directly to the creation of finished goods and products.
Statement III: The tertiary sector is characterized by services that cater to the needs of consumers and businesses.
Statement IV: The tertiary sector does  play a substantial role in generating employment opportunities.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 2
  • Statement I is false. The tertiary sector is not primarily involved in manufacturing and processing activities. It is service-oriented and focuses on providing various services to consumers and businesses.
  • Statement II is false. The tertiary sector does not directly contribute to the creation of finished goods and products. Instead, it provides services that enhance the quality of life and support economic activities.
  • Statement III is true. The tertiary sector is indeed characterized by services that cater to the needs of consumers and businesses. These services range from healthcare and education to retail and hospitality.
  • Statement IV is true. The tertiary sector is a significant generator of employment opportunities. Services such as retail, healthcare, education, and entertainment provide employment to a large portion of the workforce.
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Test: Indian Economy and Indian Financial System - 4 - Question 3

After ensuring the validity of the claim, the requisite amount is disbursed in the name of the concerned beneficiary or nominee or the legal heir. This amount is known as the ________ of the life insurance policy.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 3
  • Claim amount can be defined as the sum payable at the maturity of an insurance policy or upon death of the person insured to the beneficiary or the nominee or the legal heir of the insured.
  • Whenever a claim is raised by the policyholder or his beneficiary on the basis of the specifications of the policy statement, the insurance company conducts a review to ascertain the validity of the claim and ensure that the claim is not false as per the norms.
  • After ensuring the validity of the claim, the requisite amount is disbursed in the name of the concerned beneficiary or nominee or the legal heir. This amount is known as the claim amount of the life insurance policy.
Test: Indian Economy and Indian Financial System - 4 - Question 4

The IS-LM model or a Keynesian macroeconomic model shows how the market for economic goods interacts with ________.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 4
  • The IS-LM model, which stands for "investment-saving" (IS) and "liquidity preference-money supply" (LM) is a Keynesian macroeconomic model that shows how the market for economic goods (IS) interacts with the loanable funds market (LM) or money market. It is represented as a graph in which the IS and LM curves intersect to show the short-run equilibrium between interest rates and output.
  • Hence, option (b) is the correct answer.
Test: Indian Economy and Indian Financial System - 4 - Question 5

Which among the following is NOT among the major sources of financing in economic planning of India?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 5

The three major sources of finance available for financing plans in India, are

  • Domestic Budgetary Sources,
  • Foreign Assistance, and
  • Deficit Financing.

Hence, option (b) is the correct answer.

Test: Indian Economy and Indian Financial System - 4 - Question 6

Which of the following are the objectives of EASE 4.0 in PSBs?
(I) Achieving 24x7 availability of banking services through resilient technology.
(II) Embedding digital and data to drive customer-centric transformation in PSBs.
(III) Maximizing synergies with collaborative banking for coordinated handling of loans.
(lV) Isolating PSBs from collaborations with other financial institutions

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 6

The objectives of EASE 4.0 in PSBs are as follows:

(I) Achieving 24x7 availability of banking services through resilient technology: This objective focuses on ensuring the uninterrupted availability of banking services by leveraging resilient technology. It aims to provide customers with continuous access to banking services.

(II) Embedding digital and data to drive customer-centric transformation in PSBs: This objective involves incorporating digital and data-driven approaches to bring about a transformation in PSBs that is centered around customer needs and preferences. It aims to enhance customer experience and streamline banking operations.

(III) Maximizing synergies with collaborative banking for coordinated handling of loans: This objective is aimed at maximizing synergies through collaboration between PSBs and the broader financial services ecosystem, such as NBFCs. The focus is on effective coordination and handling of loans to improve efficiency and outcomes.

(IV) Isolating PSBs from collaborations with other financial institutions: This is not one of the objectives of EASE 4.0. The agenda of EASE 4.0 is to enhance banking services, incorporate digital transformation, and promote collaboration, rather than isolating PSBs from collaborations

Test: Indian Economy and Indian Financial System - 4 - Question 7

What role do non-banking financial companies (NBFCs) play in relation to the banking system?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 7

Non-Banking Financial Companies (NBFCs) play a complementary role to the banking system, which is best captured by option (c). Here's why:

  • Enhancing Competition: NBFCs introduce healthy competition in the financial sector. Their presence encourages traditional banks to offer more competitive rates and services to attract customers. This competition benefits consumers by providing them with a wider range of financial products and services to choose from.
  • Diversification: NBFCs often specialize in areas where traditional banks might not have a strong presence, such as microfinance, infrastructure financing, retail lending, and more. This diversification allows NBFCs to cater to specific customer needs that might not be fully addressed by traditional banks.
  • Reaching Underserved Segments: NBFCs often reach out to underserved or unbanked segments of the population, especially in rural and semi-urban areas. This helps in promoting financial inclusion and economic growth in regions that might not have easy access to traditional banking services.
  • Innovation: NBFCs are known for their ability to innovate and develop tailored financial solutions to meet the unique needs of different customer segments. This innovation can drive the overall financial services industry forward and encourage traditional banks to adopt new approaches.
  • Infrastructure Financing: NBFCs can contribute to the development of infrastructure by providing specialized financing for projects that might not fit within the scope of traditional banking activities.
Test: Indian Economy and Indian Financial System - 4 - Question 8

Choose the correct option with respective statements in similar order as either True or False from the given statements:
(I) In 1991, India initiated liberalisation and opened its economy to the world.
(II) The Narasimham Committee-I recommended the establishment of a 4-tier hierarchy for the banking structure in India.
(III) The first Gulf War in August 1990 led to a doubling of oil prices, adversely affecting India's balance of payments.
(IV) India's slow growth rate during the 1960s to 1980s was primarily due to rapid export-led growth similar to the Asian Tigers.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 8

(I) True: In 1991, India indeed initiated liberalization and opened its economy to the world. This marked a significant turning point in India's economic policy, leading to reforms in various sectors and a more open approach to international trade and investment.

(II) True: The statement is true. The Narasimham Committee-I, headed by Shri M. Narasimham, recommended the establishment of a 4-tier hierarchy for the banking structure in India. This hierarchy included a top tier of 3 to 4 large banks, with the State Bank of India (SBI) among them. At the bottom, there were rural banks engaged in agricultural activities.

(III) True: The statement is true. The first Gulf War that occurred in August 1990 did lead to a doubling of oil prices. This sudden increase in oil prices had an adverse impact on India's balance of payments, as the country heavily depended on crude oil imports.

(lV) False: The statement is false because India's slow growth rate during the 1960s to 1980s was not due to rapid export-led growth like the Asian Tigers. Instead, India's growth was hindered by factors such as inward-focused economic policies, lack of structural reforms, and insufficient investments in key areas.

Test: Indian Economy and Indian Financial System - 4 - Question 9

What is the difference between "On-Us" and "Off-Us" transactions in the context of ATMs?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 9

In the context of ATMs, "On-Us" transactions are those where a customer uses their debit or credit card at an ATM owned by the same bank that issued the card. These transactions are conducted within the bank's own network. On the other hand, "Off-Us" transactions occur when a cardholder uses their card at an ATM of a different bank. This involves using a different bank's network to process the transaction

Test: Indian Economy and Indian Financial System - 4 - Question 10

__________ is the quantity of a commodity that people are willing to buy at a particular price at a particular point of time.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 10
  • Quantity demanded is the quantity of a commodity that people are willing to buy at a particular price at a particular point of time.
  • Different quantities can be demanded at different prices at a particular point of time. When all the prices, along with quantity demanded, are drawn on a graph, the demand curve is formed. Quantity demanded can change at the same price depending upon factors like recession, changes in the taste of the consumer, etc.
Test: Indian Economy and Indian Financial System - 4 - Question 11

For proceeds of issues exceeding Rs, ___ need to be monitored through a Monitoring Agency.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 11

For proceeds of issues exceeding Rs 500 crore need to be monitored through a Monitoring Agency. Financial institutions can only act as Monitoring agencies. SEBI is the regulator for the Monitoring Agency assignments.

Test: Indian Economy and Indian Financial System - 4 - Question 12

_____________ in a trade agreement is aimed at preventing third parties from routing their products through member countries to take advantage of low tariff.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 12

The 'Rule of Origin' is a term used in all trade agreements. It is aimed at preventing third parties from routing their products through member countries to take advantage of low tariff and allowing only goods that are originated from parties to the agreement

Test: Indian Economy and Indian Financial System - 4 - Question 13

Which term refers to a financial instrument that represents a debt obligation of the issuer?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 13

The term "Debenture" denotes a significant financial instrument that holds the characteristic of representing a distinct debt obligation on the part of the issuer. A debenture embodies a contractual agreement where the issuer borrows funds from the debenture holders and commits to make fixed interest payments at regular intervals. This financial instrument highlights the issuer's commitment to repay the principal amount upon maturity, in addition to honoring the specified interest payments. Investors who hold debentures are essentially creditors to the issuer, and their returns are derived from the interest earned on the debenture. Debentures encompass various types, such as secured and unsecured debentures, convertible debentures, and redeemable debentures, each offering distinct features to cater to different investor preferences and issuer requirements. This financial instrument plays a pivotal role in the financial landscape by offering a secure avenue for entities to raise capital while providing investors with a reliable fixed-income option.

Test: Indian Economy and Indian Financial System - 4 - Question 14

Which among the following security is not eligible for a repo transaction?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 14

Repo transactions are permitted between counterparties and in instruments permitted by the Reserve Bank of India. The eligible securities for Repo transactions are Government securities issued by the Central Government or a State Government, listed corporate bonds, and debentures (subject to the condition that no participant shall borrow against the collateral of its securities, or securities issued by a related entity), Commercial Papers (CPs), Certificate of Deposits (CDs), and Units of Debt Exchange Traded Funds (ETFs). Besides, any other security of a local authority, as may be specified on this behalf by the Central Government, is eligible for Repo transaction.

Test: Indian Economy and Indian Financial System - 4 - Question 15

The WTO operates on the principle of ____________, ensuring that trade is conducted without discrimination or preference.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 15

The WTO operates on the principle of Most Favored Nation (MFN), which means that each member country must treat all other WTO members equally in terms of trade preferences. This principle ensures that trade is conducted without discrimination or preferences, promoting fair and non-discriminatory trade practices among nations.

Test: Indian Economy and Indian Financial System - 4 - Question 16

The Reserve Bank of India was set up based on the recommendations of which commission?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 16

RBI was conceptualized as per the guidelines, working style and outlook presented by Bhimrao Ramji Ambedkar in his book titled "The Problem of the Rupee - Its origin and its solution" and presented to the Hilton Young Commission. The bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as the Hilton - Young Commission.

Test: Indian Economy and Indian Financial System - 4 - Question 17

Which among the following is an example of a debt market?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 17

The debt market consists, largely, of government securities and to a smaller extent, corporate bonds. A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or a State Government. It is a document of the Government's debt obligation. Long-term securities are also issued by State Governments and these are called State Development Loans (SDLs). Companies raise funds for a longer period, say 5 years or 10 years, through the issue of a typical long-term debt instrument, known as Corporate Bonds. A company that is engaged in infrastructure projects may issue debentures as a source of long-term funds.

Test: Indian Economy and Indian Financial System - 4 - Question 18

Which of the following statements are incorrect relating with Centrally Sponsored Schemes (CSS)?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 18

Centrally Sponsored Schemes (CSSs) are special purpose grants (or loans) extended (centre to States under Article 282 ) by the Central Government to States to encourage and motivate State governments to plan and implement programmes. CSS divided into two :-

  • Core of the Core Schemes and
  • Core Schemes.

Chaturvedi committee related with related with Restructuring of Centrally Sponsored Schemes

Test: Indian Economy and Indian Financial System - 4 - Question 19

Which among the following are approved tri-party agents?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 19

Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody, and management during the life of the transaction. The tri-party agent does not change the relationship between the borrower and lender, and he does not participate in the risk of transactions. In case of any default, the impact still falls entirely on the defaulting party. CCIL and NSE are two approved tri-party agents.

Test: Indian Economy and Indian Financial System - 4 - Question 20

Assertion: Sustainable Development Goals (SDGs) were established by the United Nations to address global challenges and promote sustainable economic, social, and environmental progress.

Reason: There are a total of 15 Sustainable Development Goals, each addressing a specific aspect of development and sustainability.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 20

Assertion: Sustainable Development Goals (SDGs) were established by the United Nations to address global challenges and promote sustainable economic, social, and environmental progress.

Reason: There are a total of 15 Sustainable Development Goals, each addressing a specific aspect of development and sustainability.

The Assertion is true. The Sustainable Development Goals (SDGs) were indeed established by the United Nations as a universal call to action to end poverty, protect the planet, and ensure prosperity for all. However, the Reason is false. There are a total of 17 Sustainable Development Goals, not 15. Each goal addresses various aspects of development, including poverty, hunger, health, education, gender equality, clean water, climate action, and more.

Test: Indian Economy and Indian Financial System - 4 - Question 21

How are insurance agents and insurance brokers licensed and regulated?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 21
  • Insurance agents and insurance brokers are required to be licensed and regulated by the Insurance Regulatory and Development Authority (IRDA). The IRDA is the regulatory body that oversees the insurance industry in India and ensures that insurance intermediaries operate in a fair, transparent, and compliant manner.
  • Insurance agents and brokers play a critical role in the insurance industry by acting as intermediaries between consumers seeking insurance coverage and insurance companies providing those policies. The IRDA sets specific guidelines, rules, and regulations that these intermediaries must adhere to in order to protect the interests of both consumers and insurance companies.
  • Being licensed by the IRDA means that insurance agents and brokers are authorized to engage in insurance-related activities and offer insurance products to consumers. These intermediaries are required to follow the Code of Conduct and other regulations laid down by the IRDA to ensure ethical and professional behavior in their interactions with clients and insurance companies.
  • In summary, insurance agents and brokers are licensed and regulated by the Insurance Regulatory and Development Authority (IRDA) to ensure the proper functioning of the insurance industry and the protection of stakeholders' interests.
Test: Indian Economy and Indian Financial System - 4 - Question 22

Assertion: The main function of an American Depository Receipt (ADR) is to allow American investors to directly purchase shares of Indian companies.

Reason: ADRs are issued by Indian companies to raise capital in the American market.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 22

The correct answer is (c) Assertion is true, but the Reason is false. The Assertion accurately states that the primary function of an American Depository Receipt (ADR) is to enable American investors to indirectly own shares of foreign companies. ADRs are essentially certificates representing shares of a foreign company and are traded on U.S. exchanges. However, the Reason provided is incorrect. ADRs are not issued by Indian companies to raise capital in the American market; rather, they are issued by foreign companies, including Indian ones, as a means of facilitating trading and investment in their shares by American investors. The issuance of ADRs allows these foreign companies to tap into the U.S. investor base without directly listing their shares on U.S. exchanges. Therefore, while the Assertion is accurate, the Reason is not in alignment with the actual purpose and origin of ADRs.

Test: Indian Economy and Indian Financial System - 4 - Question 23

Which of the following instruments is commonly associated with the Capital Markets in India?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 23

In the context of the Indian Capital Markets, the instrument commonly associated is Repurchase Agreements (Repo). A Repo transaction involves the sale of securities, typically government securities, by one party to another with a commitment to repurchase them at a predetermined future date and price. This mechanism serves as a crucial avenue for short-term borrowing and lending, providing financial institutions with a means to manage liquidity and access short-term funds using securities as collateral. The Repo market plays a pivotal role in optimizing cash flows, facilitating efficient liquidity management, and enhancing the overall stability of the financial system by leveraging the security of government securities as the underlying collateral.

Test: Indian Economy and Indian Financial System - 4 - Question 24

Which of the following statements are correct regarding the parameters governing Deposit Taking NBFCs (NBFC-Ds) and their operations?
(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand.
(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.
(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.
(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositors

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 24

(l) NBFC-Ds are permitted to accept and renew public deposits for durations ranging from 12 to 60 months but are not repayable on demand-. This statement is correct. NBFC-Ds are allowed to accept and renew public deposits for specific durations, ensuring they are not repayable on demand.

(III) The interest on deposits with NBFC-Ds can be paid or compounded at rests shorter than monthly rests.-This statement is correct. The interest on deposits with NBFC-Ds can be calculated and either paid or compounded, but this cannot be done at rests shorter than monthly intervals.

Incorrect Statements:

(II) NBFC-Ds are allowed to offer interest rates higher than the ceiling rate set by RBI.

- This statement is incorrect. NBFC-Ds are restricted from offering interest rates that exceed a certain ceiling rate prescribed by the RBI.

(IV) NBFC-Ds are permitted to offer gifts, incentives, or additional benefits to depositors.- This statement is incorrect. NBFC-Ds are not allowed to provide gifts, incentives, or any supplementary advantages to their depositors

Test: Indian Economy and Indian Financial System - 4 - Question 25

Yield of the Sovereign bonds are dependent on which of the following factors?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 25

The Yield of the Sovereign bonds are dependent on primarily 3 factors-

  • Creditworthiness - The issuing countries' perceived ability to repay their debts. This can be obtained from rating agencies.
  • Country Risk - External/Internal factors like unrest and wars tend to jeopardize a country's ability to pay off their debts.
  • Exchange Rates- In cases where bonds are issued in foreign currency, fluctuations in exchange rate may lead to increased pay out pressure on the issuing government. The central banks also control the supply of money within the economy by the use of these bonds.
Test: Indian Economy and Indian Financial System - 4 - Question 26

What change occurred in the constitution of IFCI to facilitate raising funds directly through capital markets?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 26

The Industrial Finance Corporation of India (IFCI) changed its constitution from a statutory corporation to a company under the Indian Companies Act, of 1956. This change in the constitution was undertaken to facilitate raising funds directly through capital markets. By becoming a company, IFCI gained the ability to raise funds by issuing shares and accessing the capital markets for its financial needs. This transformation allowed IFCI to adapt to the changes in the Indian economy brought about by liberalization, which significantly altered the Indian Capital Markets and the Financial System

Test: Indian Economy and Indian Financial System - 4 - Question 27

Assertion: The contribution of the primary sector to GDP in most developed countries is higher compared to the contribution of the tertiary sector.

Reason: The primary sector involves industries that are labour-intensive and create more employment opportunities.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 27
  • The assertion is true. In most developed countries, the contribution of the primary sector (agriculture, mining, etc.) to GDP is lower compared to the contribution of the tertiary sector (services).
  • The reason is false. The primary sector is often associated with labour-intensive activities, but this does not necessarily mean it creates more employment opportunities compared to the tertiary sector. In fact, the tertiary sector, being service-oriented, can also generate significant employment opportunities, especially in sectors like education, healthcare, retail, and more.
Test: Indian Economy and Indian Financial System - 4 - Question 28

Case Study: DEF Corporation is a company planning to make a Qualified Institutional Placement (QIP) to raise funds. Which of the following statements is true regarding the role of merchant bankers in a QIP?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 28

In the context of DEF Corporation's Qualified Institutional Placement (QIP) to raise funds, the accurate statement regarding the role of merchant bankers is option (B): Merchant bankers ensure that the offering complies with foreign exchange regulations. In a QIP, merchant bankers play a crucial role in structuring and facilitating the placement of securities to qualified institutional buyers. One of their key responsibilities is to ensure that the offering adheres to various regulatory guidelines, including foreign exchange regulations. This involves ensuring that the issuance of securities to foreign institutional investors (FIIs) and non-resident Indians (NRIs) complies with the necessary foreign exchange control norms. By overseeing the compliance with these regulations, merchant bankers help to maintain the integrity and legality of the fundraising process, benefiting both the issuing company and the investors participating in the QIP. Unlike the other options mentioned, which do not directly align with the merchant bankers' role in a QIP, ensuring regulatory compliance is a fundamental aspect of their involvement in such offerings.

Test: Indian Economy and Indian Financial System - 4 - Question 29

Assertion: The tertiary sector is also known as the service sector.

Reason: The tertiary sector primarily involves the extraction of natural resources.

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 29
  • The assertion is true. The tertiary sector is indeed known as the service sector, as it involves activities related to providing services rather than producing goods.
  • However, the reason is not the correct explanation for the assertion. The tertiary sector does not involve the extraction of natural resources. Instead, it encompasses activities such as retail, education, healthcare, hospitality, finance, and various other services that cater to the needs of consumers and businesses.
Test: Indian Economy and Indian Financial System - 4 - Question 30

What is the primary objective of Corporate Social Responsibility (CSR) activities undertaken by businesses?

Detailed Solution for Test: Indian Economy and Indian Financial System - 4 - Question 30

The primary objective of Corporate Social Responsibility (CSR) activities undertaken by businesses is to contribute to sustainable development by addressing social and environmental issues. CSR involves businesses voluntarily integrating social and environmental concerns into their operations and interactions with stakeholders. Through CSR initiatives, companies strive to have a positive impact on society by addressing challenges such as poverty, inequality, environmental degradation, and community well-being. These activities go beyond profit-making and reflect a commitment to responsible and ethical business practices that benefit both the company and the broader community. While profit maximization is an important goal for businesses, CSR acknowledges the broader responsibilities companies have toward society and the environment.

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