Economy & Banking

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Q. What role does the Reserve Bank of India (RBI) play in controlling inflation?
  • A. Setting fiscal policy
  • B. Regulating stock markets
  • C. Adjusting interest rates
  • D. Controlling foreign exchange rates
Q. What role does the Reserve Bank of India (RBI) play in the context of financial instruments related to automation?
  • A. Regulating the stock market only
  • B. Issuing guidelines for technology investments
  • C. Controlling interest rates for automation loans
  • D. Overseeing only traditional banking operations
Q. What type of bank is primarily focused on providing microloans to low-income individuals?
  • A. Commercial Bank
  • B. Development Bank
  • C. Microfinance Bank
  • D. Investment Bank
Q. What type of bank primarily provides financial services to low-income individuals?
  • A. Commercial Bank
  • B. Investment Bank
  • C. Microfinance Bank
  • D. Development Bank
Q. What type of financial institution primarily provides microloans to low-income individuals?
  • A. Commercial Bank
  • B. Investment Bank
  • C. Microfinance Institution
  • D. Development Bank
Q. What type of financial instrument is a certificate of deposit (CD)?
  • A. Equity security
  • B. Debt security
  • C. Derivative
  • D. Currency
Q. What type of unemployment is caused by economic downturns?
  • A. Frictional unemployment
  • B. Structural unemployment
  • C. Cyclical unemployment
  • D. Seasonal unemployment
Q. Which economic indicator is most likely to be affected by a natural disaster?
  • A. Unemployment rate
  • B. Consumer confidence index
  • C. Gross domestic product (GDP)
  • D. All of the above
Q. Which financial instrument is commonly used by farmers to hedge against crop price fluctuations?
  • A. Futures contracts
  • B. Savings accounts
  • C. Equity shares
  • D. Government bonds
Q. Which financial instrument is commonly used by farmers to hedge against price fluctuations?
  • A. Futures contracts
  • B. Savings accounts
  • C. Equity shares
  • D. Government bonds
Q. Which financial instrument is commonly used by governments to finance budget deficits?
  • A. Stocks
  • B. Bonds
  • C. Mutual funds
  • D. Derivatives
Q. Which financial instrument is commonly used for government borrowing?
  • A. Stocks
  • B. Bonds
  • C. Mutual funds
  • D. Derivatives
Q. Which financial instrument is commonly used to fund automation projects?
  • A. Equity shares
  • B. Government bonds
  • C. Venture capital
  • D. Savings accounts
Q. Which financial instrument is commonly used to hedge against crop price fluctuations?
  • A. Futures contracts
  • B. Savings accounts
  • C. Equity shares
  • D. Government bonds
Q. Which financial instrument is considered a safe investment during economic downturns?
  • A. Stocks
  • B. Bonds
  • C. Real estate
  • D. Cryptocurrencies
Q. Which financial instrument is crucial for funding small and medium enterprises (SMEs) in India?
  • A. Equity shares
  • B. Debentures
  • C. Venture capital
  • D. Government bonds
Q. Which financial instrument is often used to fund environmental projects?
  • A. Corporate bonds
  • B. Green bonds
  • C. Treasury bills
  • D. Equity shares
Q. Which financial instrument is primarily used by the RBI to control inflation?
  • A. Government bonds
  • B. Treasury bills
  • C. Reverse repo rate
  • D. Equity shares
Q. Which financial instrument is primarily used to support food security initiatives in India?
  • A. Agricultural bonds
  • B. Food coupons
  • C. Subsidized loans
  • D. Food security bonds
Q. Which financial instrument represents ownership in a company?
  • A. Bond
  • B. Stock
  • C. Derivative
  • D. Mutual fund
Q. Which fiscal policy action is likely to be taken during a recession?
  • A. Increase taxes
  • B. Decrease government spending
  • C. Increase government spending
  • D. Reduce transfer payments
Q. Which fiscal policy action is likely to stimulate economic growth?
  • A. Increasing taxes
  • B. Decreasing government spending
  • C. Increasing government spending
  • D. Reducing public investment
Q. Which fiscal policy tool can be used to stimulate economic growth?
  • A. Increasing taxes
  • B. Decreasing government spending
  • C. Increasing government spending
  • D. Reducing interest rates
Q. Which fiscal policy tool is primarily used to influence economic activity?
  • A. Taxation
  • B. Interest rates
  • C. Reserve requirements
  • D. Open market operations
Q. Which Five-Year Plan in India focused on the removal of poverty?
  • A. First Plan
  • B. Fifth Plan
  • C. Eighth Plan
  • D. Tenth Plan
Q. Which government initiative aims to provide skill training to rural youth?
  • A. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
  • B. National Skill Development Mission
  • C. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
  • D. Rural Self Employment Training Institutes (RSETIs)
Q. Which government scheme aims to provide financial assistance to farmers for irrigation projects?
  • A. Pradhan Mantri Krishi Sinchai Yojana
  • B. Mahatma Gandhi National Rural Employment Guarantee Act
  • C. Soil Health Card Scheme
  • D. National Agricultural Market
Q. Which government scheme focuses on providing financial assistance to small and marginal farmers?
  • A. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
  • B. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • C. National Rural Livelihood Mission (NRLM)
  • D. Soil Health Card Scheme
Q. Which institution is primarily responsible for conducting monetary policy in India?
  • A. Ministry of Finance
  • B. Reserve Bank of India
  • C. Securities and Exchange Board of India
  • D. World Bank
Q. Which institution is primarily responsible for implementing fiscal policy in India?
  • A. Reserve Bank of India
  • B. Ministry of Finance
  • C. Securities and Exchange Board of India
  • D. Planning Commission
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