Indian Economy Questions and Answers Part-19

1. Amongst the currency quotes USD/JPY, USD/Euro and USD/CAD, which one of the following is referred as the base currency for quotes?
(a) US $
(b) JPY
(c) Euro
(d) CAD

Answer: a

2. Which of the following is/are treated as artificial currency?
(a) ADR
(b) GDR
(c) SDR
(d) Both ADR and SDR

Answer: c

3. Which of the following measures should be taken when an economy is going through inflationary pressures?
1. The direct taxes should be increased.
2. The interest rate should be reduced.
3. The public spending should be increased
Select the correct answer using the code given below:
Code:
(a) 1 only
(b) 2 only
(c) 2 and 3
(d) 1 and 2

Answer: b

4. The terms of economics, the recession occurring two times with a small gap in between is known as
(a) Double Deflation
(b) Deflation
(c) Deep Recession
(d) Double Dip Recession

Answer: c

5. M1 includes:
(a) currency with public
(b) demand deposit with bank
(c) other deposits with RBI
(d) all of the above

Answer: d

6. M3 includes:
(a) M1 + T.D
(b) M1 + post office saving deposit
(c) M1 +- post office total deposit
(d) M1 + national saving certificate

Answer: a

7. Consider the following statements:
Full convertibility of the rupee may mean:
1. its free float with other international currencies.
2. its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. it acts just like any other international currency.
Which of these statements are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3

Answer: a

8. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has a drawing of the 'Parliament House' depicted on it?
(a) Rs. 500
(b) Rs. 100
(c) Rs. 50
(d) Rs. 10

Answer: c

9. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has "ecology" depicted on it?
(a) Rs. 500
(b) Rs. 100
(c) Rs. 50
(d) Rs. 5

Answer: b

10. All of the following are subsidiaries of the State Bank of India, except:
(a) State Bank of Bikaner and Jaipur
(b) Central Bank of India
(c) State Bank of Hyderabad
(d) State Bank of Patiala

Answer: b