The largest revenue in India is obtained from?

Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ?

Fiscal Policy is connected with

Which of the following is not a direct tax?

Economics as an area of study broadly focuses on:

Economic inefficiency exists whenever:

Economists use the term marginal utility to mean:

What are the key policy rates used by RBI to influence interest rates?

Repo rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate.

The current repo rate is --------------?

Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short term. Like the repo, this is done by RBI selling government bonds to banks with the commitment to buy them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and pushes up interest rates.

The present reverse repo rate fixed by RBI is---------?

Cash reserve Ratio (CRR) is the amount of funds that banks have to park with RBI. If RBI decides to increase the cash reserve ratio, the available amount with banks would reduce. The bank increases CRR to impound surplus liquidity. CRR serves two purposes: One, it ensures that a portion of bank deposits are always available to meet withdrawal demand, and secondly, it enables that RBI control liquidity in the system, and thereby, inflation by tying their hands in lending money.

The current CRR is --------------% ?

Apart from keeping a portion of deposits with RBI as cash, banks are also required to maintain a minimum percentage of deposits with them at the end of every business day, in the form of gold, cash, government bonds or other approved securities. This minimum percentage is called Statutory Liquidity Ratio. In times of high growth, an increase in SLR requirement reduces lendable resources of banks and pushes up interest rates.

The current SLR is ---%?

Unlike other policy rates, the bank rate is purely a signalling rate and most interest rates are delinked from the bank rate. Also, the bank rate is the indicative rate at which RBI lends money to other banks (or financial institutions) The bank rate signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term interest rates also tend to move up, and vice-versa.


On CRR the banks get interest at the rate of ___ on ___

Monetary policy is a tool used by the central bank to manage money supply in the economy in order to achieve a desirable growth. The central bank controls the money supply by increasing and decreasing the cost of money, the rate of interest.

The measures announced by the Reserve Bank of India in its latest annual monetary policy statement include....

Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government ?

Which one of the following statements is an appropriate description of deflation ?

Financial inclusion is

The process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players

With reference to the India, consider the following:

1. Nationalization of Banks.

2. Formation of Regional Rural Banks.

3. Adoption of villages by Bank Branches.

Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?

Gross Domestic Product is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.

With reference to the Indian economy, consider the following statements:

1. The Gross Domestic Product (GDP) has increased by four times in the last 10 years.

2. The percentage share of Public Sector in GDP has declined in the last 10 years.

Which of the statements given above is/are correct?

The International Development Association, a lending agency, is administered by the

In the context of India’s Five Year Plan, a shift in the pattern of industrialization, with lower

emphasis on heavy industries and more on infrastructure begins in

Sustainable development is described as the development that meets the needs of the

present without compromising the ability of future generations to meet their own needs. In

this perspective, inherently the concept of sustainable development is intertwined with

which of the following concepts?

Inclusive growth as enunciated in the Eleventh Five Year Plan does not include one of the


Which one of the following is responsible for the preparation and presentation of Union

Budget to the Parliament?

Consider the following actions by the Government:

1. Cutting the tax rates

2. Increasing the government spending

3. Abolishing the subsidies

In the context of economic recession, which of the above actions can be considered a part of the

“fiscal stimulus” package?

When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what

does it mean?

In the context of Indian economy, consider the following pairs:

Term Most appropriate description

1. Melt down — Fall in stock prices

2. Recession — Fall in growth rate

3. Slow down — Fall in GDP

Which of the pairs given above is / are correctly matched?

The BRIC countries are made up of Brazil, Russia, India and China.The BRIC are both the fastest growing and largest emerging markets economies. They account for almost three billion people, or just under half of the total population of the world. In recent times, the BRIC have also contributed to the majority of world GDP growth.

With reference to BRIC countries, consider the following statements:

1. At present, China’s GDP is more than the combined GDP of all the three other countries.

2. China’s population is more than the combined population of any two other countries.

Which of the statements given above is/are correct?

Which of the following is / are treated as artificial currency?

In India, the interest rate on savings account in all the nationalized commercial banks is

fixed by

Which among the following sentences is / are correct ?

Which among the following is a Progressive Tax?

Bring out the qualitative control instrumentof Reserve Bank of India from the given statements?

In context with the currency management in India the responsibility for coinage vests with which of the following?

In context with the inflation control, what is the meaning of sterilization for foreign inflow?

Among various other factors, which of the following mainly influence(s) a nation’s

economic gro wth?

I. Money supply.

II. Interest Rates.

III. Exchange rates.

Which of the following ought to be the core objective of a monetary policy?

Which of the following is not a selective credit control method to regulate credit?

. The term balance of trade implies

A reduction in the corporate tax that would encourage entrepreneurs to invest more as they would be

exposed to lower entrepreneurial risks. This is advocated by

Which of the following is an example of indirect tax?

If the real GDP is 5% and the inflation rate is 2%, the nominal GDP is

Which of the following happens during recession?

I. Workers are laid off.

II. Factories are idle.

III. Firms are unable to sell what they produce.

Which of the following sequences expresses the relationship among money supply, nominal interest rate,

investment and gross national product assuming demand for money to be constant?

The devaluation of rupee is aimed at

Which of the following is not true?

An underdeveloped country, due to lack of an effective Central Banking system, has to rely on fiscal

policy alone to decide about its economic policies. Here, the term fiscal policy refers to

The value of the next best alternative foregone by making another decision is known as?

Expansionary monetary policy lowers the real interest rate, thereby raising expenditure on

A contractionary monetary policy raises the real interest rate, causing the domestic

currency to ______, thereby ______ net exports.




4421 days 23 hours 24 minutes ago


No words to express thanks for such a excellent work done for your subordinates. please do mail us for management test also. Thanks a ton

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