## Indian Economy MCQ (Pages :37) <<< Back

• 211 If a state governments seeks help in reaching their targets of providing assistance to eligible institutions in agriculture and rural development, it should approach to which of the following agency?

• #### <Explanation>

NABARD Helps the state governments in reaching their targets of providing assistance to eligible institutions in agriculture and rural development
• 212 If an exporter earns money and deposits that with RBI , what will be the ultimate impact on country’s money supply?

• 213 If rupee changes from Rs. 48 = $1 to Rs. 47.50 =$ 1, then which among the following would have said to occur?

• 214 If the demand and supply of a commodity increase by an equal absolute amount, what will be the effect on market price?

• 215 If the government chooses to spend money freshly printed by the RBI against government securities, it should be kept in which among the following?

• 216 If the people prefer to keep cash with them rather than deposits, which among the following impacts will be seen on the Money Supply of the country?

• 217 If the Reserve Bank of India wants to increase the Cash Reserves commercial Banks, which among the following would be the most probable step taken by it?

• 218 If there is a change in Bank rate , which among the following is affected_________?

• #### <Explanation>

Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks, development banks etc. Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate. Bank rate is used as a signal by the RBI to the commercial banks on RBI’s thinking of what the interest rates should be. When RBI increases the bank rate, the cost of borrowing for banks rises and this credit volume gets reduced leading to decline in supply of money. Thus, increase in Bank rate reflects tightening of RBI monetary policy.
• 219 If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?

• 220 If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?

• #### <Explanation>

Any money that has been borrowed from foreign sources for financing the commercial activities in India are called External Commercial Borrowings. The Government of India permits ECBs as a source of finance for Indian Corporates for expansion of existing capacity as well as for fresh investment.
• 221 If two goods have no relationship with each other , what would be cross elasticity among them?

• 222 IMF can grant loan to __________?

• 223 In 1982, the Rural Planning and Credit Cell (RPCC) of Reserve Bank of India was merged in which of the following banks?

• 224 In a bid to introduce competitive bidding for allocation of coal blocks and benefit consuming industries, the government will soon replace the Mines and Minerals Development Regulation Act. In which year this act was enacted?

• 225 In a condition of monopoly, the monopolist has a control over the price he charges for his product. In which of the following conditions he will be able to maximize his profits?

• 226 In a progressive tax , the following statements holds true:?

• 227 In an oligopolistic or monopolistically competitive market, firms do not raise their prices because even a small price increase will lose many customers. Which among the following is the most suitable terms used for this concept?

• 228 In context of Budget, which among the following is not a Non-Plan Expenditure?

• 229 In context with banking and Investment market, what is the correct full form of ODI?

• 230 In context with banking business, the increasing trend in the Burden Bearing Ratio would show the following?

• 231 In context with banking in India, March 16, 1949 is a date which marks:?

• 232 In context with SEBI, which among the following is NOT a correct statement?

• 233 In context with the 4 concepts of Money supply in India (i.e. M1, M2, M3 and M4) used by Reserve Bank of India, which among the following are the most relevant?

• 234 In context with the Balance of Payments, the Merchandise exports, which refer to sale of goods abroad belong to which among the following?

• 235 In context with the business and banking, what is CRAR?

• 236 In context with the credit market in India, which among the following is called Slack Season?

• #### <Explanation>

April to October Slack season, November to March Busy season
• 237 In context with the currency management in India the responsibility for coinage vests with which of the following?

• #### <Explanation>

Government of India on the basis of the Coinage Act, 1906
• 238 In context with the employment programmes in India, which among the following was the first to mandate child-care facilities for women at work sites?

• 239 In context with the Fertilizer requirement in the country, for which of the following resource we are 100 % import dependent?

• 240 In context with the financial markets , an agreement to exchange floating rate payments for fixed rate payments (or vice-versa) at regular intervals over pre-specified period on a certain principal amount is known as ____?

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