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Part 1 Most Expected MCQs on Economics for UPSC
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IN THIS LESSON, A set of Questions relating to: Agriculture , banking like : Marginal standing Facility : SLR, Investment Expenditure etc is Discussed in a Detailed Manner

Nisha Nujumudeen
Economics faculty in IAS academy, M.A, M.phil in Economics, winner of National Award for Teaching Excellence in civil service coaching

U
Unacademy user
please provide more these type of videos for upcoming ibps po mains kiran nanat dii
"Investment Spending" is the most suitable term than "Investment Expenditure" the Answer is B as per yours framing of question correct me if I am wrong
Nisha Nujumudeen
9 months ago
hii mr boya.. investment expenditure has the same meaning has investment spending. always investment expenditure and interest rates are inversely related. when one increases the other decreases and vice-versa.
Boya Venkatesu
9 months ago
so Investment Spending and Investment Expenditure are same terms
Nisha Nujumudeen
5 months ago
,😊
Mam , aren't these questions too simple?? I mean I solved almost all ... so really these level questions will come in pre??
Nisha Nujumudeen
9 months ago
Its good that you solved everything at once.... Therr are difficult questions , moderate and easy ones as the lessons progress ..
Nisha Nujumudeen
9 months ago
Its a continuous series of questions so the more you practice the more simpler even the hard questions become. Anyways keep it up, taht you solved all the questions rightly .👍
DAKSH SHARMA
9 months ago
thanks mam for helping 😁😁
DAKSH SHARMA
9 months ago
thanks mam for helping 😁😁
ma'am can you please tell me the difference between BANK RATE and REPO RATE in simple terms?
Nisha Nujumudeen
9 months ago
Sure.
Nisha Nujumudeen
9 months ago
both bank rate and repo rate are quantitative instruments of credit control. bank rate in simple terms means discount rate., which means the rate at which central bank(RBI) GIVES LOANS to commercial banks whereas repo rate means it is the rate at which the commercial banks can borrow from central bank. In more simple terms, i can expalin as: Repo rate is the rate at which our banks borrow rupees from RBI. It is also called as repurchase rate. Okay, lets have this example first, You go to a friend and ask for money, say 100 rs. He dont trust you so he asks you for security. You give him your watch as a security. However, you also enter into an agreement to buy back the watch at a predetermined rate of interest. This interest is known as repo rate. Your friend is RBI and you are commercial bank. Whenever the banks have any shortage of funds they can borrow it from RBI. RBI lends money to bankers against approved securities for meeting their day to day requirements or to fill short term gap. The main difference between both these rates are as folows: 1) Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks etc.uch 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 on the other hand 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.
Nisha Nujumudeen
9 months ago
let me know if your doubt is cleared mr nimesh:)
Nimesh Solanki
9 months ago
YES now I understand in depth... Thank you for such elaborative explanation 😊
I don't have any credit to text
  1. UPSC UPSC Civil Service Examination CSE (ECONOMICS) ECONOMICS By Ms. Nisha Nujumudeen BY NISHA NUJUMUDEEN


  2. UPSC: ivil Service Examination Economics Faculty M.Phil (Economics) M.A (Economics) B.A (Economics)


  3. PART:2 Expected MCQs On Economics For UPSC 50 Most (LESSON :1) ITS TIME TO TEST!!! By Nisha Nuiumudeen unacadem


  4. Awards & Recognitions: NISHA NUJUMUDEE Indian Delegate to Japan East Asia Network of Exchange for Yo Students JENESYS 2016) at Tokyo, Japan 0 Indian Delegate to International Exchange program and conference based on Economic theme. 0 Nirbhaya Youth award winner from Dr.Shashi Tharoor for International achievements, at Yuvagni -2017. ISPbismbeBspapers in the field of Economics in reputed national and [] Reesaatf shapperiralARAIN isyNeditInomic confernce based on the theme "Energy Economics" in 2017 o Published paper in University of British Colombia, Canada for the Economic a Secured first position for Paper Presentation in national conference co g Secured first position for Paper Presentation in national colloquium c conference based on the theme FOOD STUDIES IN 2018. Asian Cross Cultural Studies, Panayur, Chennai.. W.C.C, Chennai.


  5. MOCK MCQS... ITS TIME TO TEST!! Q51. With reference to millets and its production in India, consider the following statements: 1. India has witnessed a 60 per cent decline in the area under millets since 1960s 2. Millets are grown mostly in the arid, semi-arid and hilly regions 3. Bajra, Jowar and Ragi are some of the examples of millets that are commonly grown in India Which of the above statements is/are correct? A. 1 and 2 Only B. 1 and 3 Only C. 2 Only D. 1, 2 and 3


  6. MOCK MCQS... ITS TIME TO TEST!! Answer. 51:- D Although among the food crops, millets occupy relatively a lower position in Indian agriculture, they are quite important from the point of food security at regional/household level. Millets can not only grow in poor soil/ climatic conditions, due to their short growing season, these can very well fit into multiple cropping systems under irrigated as well as dry land farming; and provide nutritious grain as well as fodder in a short span. " Their prolonged and easy storability under ordinary conditions has accorded them the status of "famine reserves" ; and this feature is of great relevance for India, as our agriculture suffers from the vagaries of monsoon. The millets commonly grown in India include: bajra (pearl millet), jowar (sorghum), ragi (finger millet), barri(proso/common millet), jhangora (barnyard millet), kangni (foxtail/ Italian millet), kodra (kodo millet) etc.


  7. MOCK MCQS... ITS TIME TO TEST!! Q52. The Globally Important Agricultural Heritage System (GIAH programme is an initiative of A. WHO B. UNESCO C. International Fund for Agricultural Development (IFAD) D. FAO


  8. MOCK MCQS... ITS TIME TO TEST!! Answer. 52:- D The Globally Important Agricultural Heritage Systems (GIAHS) Partnership Initiative was conceptualized and presented by Dr. Parviz Koohafkan the Task Manager of Chapter 10 of Agenda 21 in Food and Agricultural Organization of United Nations, FAO in 2002 during World Summit on Sustainable Development in Johannesburg, South Africa " This UN Partnership Initiative aims to identify, support and safeguard Globally Important Agricultural Heritage Systems and their livelihoods, agricultural and associated biodiversity, landscapes, knowledge systems and cultures around the world. The GIAHS Partnership recognizes the crucial importance of the well being of family farming communities in an integrated approach while directing activities towards sustainable agriculture and rural development


  9. MOCK MCQS... ITS TIME TO TEST!! Q53. With reference to Marginal Standing Facility (MSF), consider the following statements: 1.. It is always fixed above the repo rate 2. The MSF is the first resort for banks to borrow money from the RBI 3. It was introduced by the RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market Which of the above statements is/are correct? A. 3 Only B. 1 and 2 Only C. 1 and 3 Only D. 1,2 and 3


  10. MOCK MCQS... ITS TIME TO TEST!! Answer. 53: C " Marginal Standing Facility (MSF) is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central banlk over and above what is available to them through the LAF window "MSF, being a penal rate, is always fixed above the repo rate. The MSF would be the last resort for banks once they exhaust all borrowing options including the liquidity adjustment facility by pledging government securities, where the rates are lower in comparison with the MSF. " The MSF would be a penal rate for banks and the banks can borrow funds by pledging government securities within the limits of the statutory liquidity ratio. The scheme has been introduced by RBI with the main aim of reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary transmission in the financial system


  11. MOCK MCQS... ITS TIME TO TEST!! Q54. With reference to Statutory liquidity ratio (SLR), consider the following statements 1. SLR is determined by Reserve Bank of India 2. The SLR is determined by a percentage of total demand and time liabilities 3. If any Indian bank fails to maintain the required level of the statutory liquidity ratio, then it becomes liable to pay penalty to Reserve Bank of India Which of the above statements is/are correct? A. 1 Only B. 1 and 3 Only C. 2 and 3 Only D. 1,2 and 3


  12. MOCK MCQS... ITS TIME TO TEST!! Q55. If the interest rate is decreased in an economy, the investmen expenditure in the economy A. Increases B. Decreases C. It has no relation with interest rate D. None of the above