Q. Which of the following is a macroeconomic benefit of Environmental Conservation Acts?
A.
Increased pollution
B.
Sustainable economic growth
C.
Higher energy costs
D.
Reduced foreign investment
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Solution
Sustainable economic growth is a macroeconomic benefit of Environmental Conservation Acts as they promote long-term environmental health.
Correct Answer:
B
— Sustainable economic growth
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Q. Which of the following is a microeconomic effect of Environmental Conservation Acts?
A.
Increased consumer prices
B.
Higher unemployment rates
C.
Improved resource allocation
D.
Decreased competition
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Solution
Environmental Conservation Acts can lead to improved resource allocation by promoting efficient use of natural resources.
Correct Answer:
C
— Improved resource allocation
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Q. Which of the following is a microeconomic effect of robotics in production?
A.
Increased competition among firms
B.
Higher unemployment rates across all sectors
C.
Decreased consumer choice
D.
Uniform pricing across industries
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Solution
Robotics can lead to increased competition among firms as they adopt new technologies to improve efficiency and reduce costs.
Correct Answer:
A
— Increased competition among firms
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Q. Which of the following is a potential consequence of a high budget deficit?
A.
Lower interest rates
B.
Increased public investment
C.
Higher inflation
D.
Decreased government spending
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Solution
A high budget deficit can lead to higher inflation as the government may print more money to finance its deficit.
Correct Answer:
C
— Higher inflation
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Q. Which of the following is a potential effect of robotics on productivity?
A.
Decrease in overall productivity
B.
Increase in production costs
C.
Increase in efficiency and output
D.
Reduction in technological innovation
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Solution
Robotics can significantly increase efficiency and output, leading to higher productivity levels in various industries.
Correct Answer:
C
— Increase in efficiency and output
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Q. Which of the following is a primary source of funds for commercial banks?
A.
Government grants
B.
Deposits from customers
C.
Foreign investments
D.
Stock market profits
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Solution
Deposits from customers are a primary source of funds for commercial banks.
Correct Answer:
B
— Deposits from customers
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Q. Which of the following is a quantitative tool of monetary policy used by the RBI?
A.
Open market operations
B.
Moral suasion
C.
Credit control
D.
Public debt management
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Solution
Open market operations are a quantitative tool used by the RBI to control the money supply by buying or selling government securities.
Correct Answer:
A
— Open market operations
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Q. Which of the following is a quantitative tool of monetary policy?
A.
Moral suasion
B.
Open market operations
C.
Bank rate
D.
Cash Reserve Ratio
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Solution
The Cash Reserve Ratio (CRR) is a quantitative tool used by the RBI to control the amount of funds that banks can lend.
Correct Answer:
D
— Cash Reserve Ratio
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Q. Which of the following is a tool used by the RBI to control money supply?
A.
Cash Reserve Ratio (CRR)
B.
Fiscal Policy
C.
Public Debt Management
D.
Foreign Direct Investment
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Solution
The Cash Reserve Ratio (CRR) is a tool used by the RBI to control the money supply by regulating the amount of funds banks must hold in reserve.
Correct Answer:
A
— Cash Reserve Ratio (CRR)
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Q. Which of the following is a tool used by the Reserve Bank of India (RBI) to control money supply?
A.
Open market operations
B.
Fiscal policy
C.
Taxation
D.
Public expenditure
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Solution
Open market operations involve the buying and selling of government securities to regulate the money supply.
Correct Answer:
A
— Open market operations
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Q. Which of the following is an example of an automatic stabilizer?
A.
Government infrastructure projects
B.
Unemployment benefits
C.
Tax cuts
D.
Public investment programs
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Solution
Unemployment benefits are an example of an automatic stabilizer, as they automatically increase during economic downturns to support individuals.
Correct Answer:
B
— Unemployment benefits
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Q. Which of the following is NOT a benefit of irrigation?
A.
Increased crop yield
B.
Drought resistance
C.
Soil salinization
D.
Improved food security
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Solution
Soil salinization is a negative consequence of improper irrigation practices, where excess salts accumulate in the soil, adversely affecting crop growth.
Correct Answer:
C
— Soil salinization
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Q. Which of the following is NOT a component of fiscal policy?
A.
Government spending
B.
Taxation
C.
Monetary supply
D.
Transfer payments
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Solution
Monetary supply is a tool of monetary policy, not fiscal policy. Fiscal policy focuses on government spending, taxation, and transfer payments.
Correct Answer:
C
— Monetary supply
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Q. Which of the following is NOT a function of commercial banks?
A.
Accepting deposits
B.
Providing loans
C.
Issuing currency
D.
Facilitating payments
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Solution
Issuing currency is a function of central banks, not commercial banks.
Correct Answer:
C
— Issuing currency
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Q. Which of the following is NOT a function of the central bank?
A.
Issuing currency
B.
Controlling inflation
C.
Providing personal loans
D.
Regulating the banking system
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Solution
Providing personal loans is not a function of the central bank; it focuses on monetary policy and banking regulation.
Correct Answer:
C
— Providing personal loans
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Q. Which of the following is NOT a function of the RBI in the context of disaster management?
A.
Providing emergency liquidity
B.
Setting up disaster relief funds
C.
Regulating commercial banks
D.
Conducting monetary policy
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Solution
Setting up disaster relief funds is not a direct function of the RBI; rather, it focuses on monetary policy and regulating the banking sector.
Correct Answer:
B
— Setting up disaster relief funds
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Q. Which of the following is NOT a function of the RBI?
A.
Maintaining price stability
B.
Regulating commercial banks
C.
Issuing government bonds
D.
Managing foreign exchange reserves
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Solution
While the RBI regulates banks and manages foreign exchange reserves, issuing government bonds is typically the responsibility of the government.
Correct Answer:
C
— Issuing government bonds
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Q. Which of the following is NOT a function of the Reserve Bank of India (RBI) related to food security?
A.
Monetary policy formulation
B.
Regulating food prices
C.
Managing foreign exchange
D.
Issuing currency
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Solution
While the RBI manages monetary policy and currency, it does not directly regulate food prices.
Correct Answer:
B
— Regulating food prices
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Q. Which of the following is NOT a function of the Reserve Bank of India (RBI)?
A.
Issuing currency
B.
Managing foreign exchange
C.
Setting fiscal policy
D.
Regulating banks
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Solution
Setting fiscal policy is not a function of the RBI; it is primarily responsible for monetary policy and regulating the banking sector.
Correct Answer:
C
— Setting fiscal policy
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Q. Which of the following is NOT a function of the Reserve Bank of India?
A.
Issuing currency
B.
Regulating foreign exchange
C.
Providing personal loans
D.
Controlling inflation
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Solution
Providing personal loans is not a function of the Reserve Bank of India; it primarily regulates and supervises banks.
Correct Answer:
C
— Providing personal loans
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Q. Which of the following is NOT a goal of monetary policy?
A.
Controlling inflation
B.
Maximizing employment
C.
Stabilizing currency
D.
Increasing government revenue
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Solution
Increasing government revenue is not a direct goal of monetary policy; it focuses on inflation, employment, and currency stability.
Correct Answer:
D
— Increasing government revenue
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Q. Which of the following is NOT a method of budgeting?
A.
Zero-based budgeting
B.
Incremental budgeting
C.
Performance budgeting
D.
Dynamic budgeting
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Solution
Dynamic budgeting is not a recognized method of budgeting; the other three are established budgeting techniques used in fiscal management.
Correct Answer:
D
— Dynamic budgeting
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Q. Which of the following is NOT a tool of fiscal policy?
A.
Government spending
B.
Taxation
C.
Monetary supply control
D.
Public debt management
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Solution
Monetary supply control is a tool of monetary policy, not fiscal policy.
Correct Answer:
C
— Monetary supply control
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Q. Which of the following is NOT a tool of monetary policy used by the RBI?
A.
Cash Reserve Ratio (CRR)
B.
Statutory Liquidity Ratio (SLR)
C.
Open Market Operations (OMO)
D.
Income Tax Rate
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Solution
Income Tax Rate is a fiscal policy tool, not a monetary policy tool used by the RBI.
Correct Answer:
D
— Income Tax Rate
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Q. Which of the following is NOT a type of inflation?
A.
Creeping inflation
B.
Walking inflation
C.
Galloping inflation
D.
Stagflation
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Solution
While creeping, galloping, and stagflation are recognized types of inflation, 'walking inflation' is not a standard term used in economics.
Correct Answer:
B
— Walking inflation
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Q. Which policy is primarily used by the Reserve Bank of India (RBI) to promote inclusive growth?
A.
Monetary policy
B.
Fiscal policy
C.
Trade policy
D.
Industrial policy
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Solution
The RBI uses monetary policy to influence interest rates and credit availability, which can promote inclusive growth by making finance accessible.
Correct Answer:
A
— Monetary policy
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Q. Which policy is typically used to reduce unemployment?
A.
Tight monetary policy
B.
Expansionary fiscal policy
C.
Contractionary fiscal policy
D.
Deflationary policy
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Solution
Expansionary fiscal policy, which involves increasing government spending and/or decreasing taxes, is used to stimulate the economy and reduce unemployment.
Correct Answer:
B
— Expansionary fiscal policy
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Q. Which scheme is aimed at providing financial assistance for the education of girls?
A.
Beti Bachao Beti Padhao
B.
Sukanya Samriddhi Yojana
C.
Pradhan Mantri Ujjwala Yojana
D.
National Girl Child Day
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Solution
Sukanya Samriddhi Yojana is aimed at encouraging savings for the education and marriage of the girl child, providing financial assistance for their future.
Correct Answer:
B
— Sukanya Samriddhi Yojana
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Q. Which scheme is designed to promote entrepreneurship among women in India?
A.
Stand-Up India
B.
Make in India
C.
Digital India
D.
Skill India
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Solution
Stand-Up India is aimed at promoting entrepreneurship among women and SC/ST communities by providing them with financial support and guidance.
Correct Answer:
A
— Stand-Up India
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Q. Which sector is primarily targeted by the planning process in India?
A.
Agriculture
B.
Manufacturing
C.
Services
D.
All of the above
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Solution
The planning process in India targets all sectors: agriculture, manufacturing, and services to ensure balanced economic growth.
Correct Answer:
D
— All of the above
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