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Set 6: Part 5: Economics MCQ for Prelims
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Set 6: Part 5: Economics MCQ for Prelims

Akshay Kadam is teaching live on Unacademy Plus

Akshay Kadam
With 5 yr UPSC coaching experience; I wl help u get conceptual clarity of topics & their Applied Understanding to score more.

U
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THANK YOU MA'M AWESOME EXPLANATION....
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thanquu very much sir. ..for such a wonderfull practice set ...helped me alot ...
Akshay Kadam
9 months ago
Thats great U liked it. Let me know what else u expect me to uplaod here on platform.Also check out mynother courses and enroll for special class,
Akshay Kadam
9 months ago
Also provide any critical feedback if u have any to that will help menimprove content or teachibg
  1. Economics Test Series For Prelims unacademy Master Economics with the help of Conceptual Objective Practice Questions. By Prof. Akshay D Kadam https://unacademy.com/user/AkshayDKadar


  2. Consider the following statements about Zero Which of the following are Based Budgeting 1) In zero based budgeting no reference was 1) SLR made or considered of previous years; and expenses for each new period must be justified 3) MSF 2) Zero based budgeting is more suitable for 4) LAF organisations with Long term objectives. Which of the above statements are incorrect? a) 1 and 2 only a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct Statutory Pre-emption of RBl? 2) CRR Options b) 1 and 3 Only c) 1 and 4 Only d) 3 and 4 Only https://unacademy.com/user/AkshayDKadam fppt.com


  3. Consider the following statements about Real Investment Assertion A:Real investment means purchase of paper Securities, bonds, debentures and equities and not Loans and Bank accounts Reason R: Financial investment by depositing money in bank and/or taking loans do not represent real net wealth for the economy as the financial asset of one economy would be offset by a financial liability of another party Select correct answer using codes given below: a.Both A and R are correct and R is a correct explanation of A. b.Both A and R are correct but R is not a correct explanation of A. C.A is correct, R is incorrect d.A is incorrect, R is correct. https://unacademy.com/user/AkshayDKadam fpP


  4. Consider the following statements about Shanghai/China Growth Model viz a viz Indian Growth Model 1) Shanghai Model represents extreme version of Investment led growth Model while India followed Saving Led growth Model 2) In terms of Household income and small asset base India is Poorer than China 3) The Consumption to GDP ratio of India is lower than China Which of the above statements are correct? a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) 1 Only Consider the following statements FDI and Fll have on inflation 1) Increased FDI is a measure to dampen inflation. 2) Economics has no rule to link FDI with Inflation 3) Unchecked Fll inflow and Outflow can bring Demand Pull Inflation 4) Economics has no rule to link Fll with Inflation. Which of the above statements are correct? a) 1 and 4 only b) 1 and 3 Only c) 2 and 3 Only d) 2 and 4 Only


  5. Which of the following are most suitable conditions for attracting Fll inflows in the country? 1) Attractive Interest Rates. 2) Lesser Liquidity 3) Stable rate of Exchange 4) Low deficit in Balance of Payments Which of the above statements are correct? a) 13 and 4 only b) 2 and 3 Only c) 1 2 and 3 Only d) 1 2 3 and 4 Only Consider the following statements about Liquidity Adjustment facility(LAF) of RBI 1) The Repo and Reverse Repo rates are decided by RBl in consultation with Finance secretary 2) Only Government of India Dated Securities and Treasury bills are used for collateral under LAF Which of the above statements are incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct https://unacademy.com/user/AkshayDKadam fpP


  6. Consider the following statements about Liquidity Adjustment facility(LAF) of RBI 1) Repo rate is the rate at which banks borrow money from RBl; for short term needs without putting any collateral. 2) Repo rate is the rate at which banks borrow money from RBl; for short term needs by putting government securities as collateral. 3) Reverse repo is the rate at which banks park their excess fund with RBI. 4) Reverse repo is the rate at which RBl borrows money from banks by lending securities. Which of the above options are correct a) 1 and 3 only b) 1 and 4 Only c) 2 and 3 Only d) 2 and 4 Only https://unacademy.com/user/AkshayDKadam ppcom


  7. Consider the following statements about Mortality Rates - 1) Perinatal mortality only includes deaths facility(LAF) of RBl from 22 weeks of pregnancy onwards till 7th1) The Repo and Reverse Repo rates day after delivery. 2) Neonatal mortality includes deaths in the with Finance secretary first 28days of life. 3) Post neonatal mortality includes deathsSecurities and Treasury bills are used between 28 days of life up but before 1 year. for collateral under LAF Which of the above statements are correct?Which of the above statements are a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) All of the above Consider the following statements about Liquidity Adjustment are decided by RBl in consultation 2) Only Government of India Dated incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct https://unacademy.com/user/AkshayDKadam


  8. Consider the following statements Crude birth rate minus crude death rate; is about CASH MANAGEMENT BILLS called rate of natural increase(RNI). 1) These are Money Market short Consider the following statements about term Instruments devised to meet the RNI - temporary cash flow mismatches of 1) Generally developing countries have high the Central and State Governments. RNI 2) Bills will be reckoned as an eligible 2) Generally developing countries have Low investment in Government Securities RNI by banks for SLR purpose. Which of the above statements are growth. incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct 3) RNI shows clear pattern of population Which of the above statements are correct? a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) All of the above https://unacademy.com/user/AkshayDKadam pp.con


  9. Consider the following statements about CASH RESERVE RATIO 1) CRR is amount of funds that banks are bound to keep aside from their net Demand and term liabilities with RBl on which RBl pays no interest to commercial banks. 2) The objective of the CRR is to ensure availability of Liquidity and solvency of the banks. 3) RBl increases CRR which leads to increased money supply in the economy and fall in interest rates Which of the above statements are correct? a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) 1 2 and 3 India is passing through third stage of demographic transition; a stage of declining birth rate and low death rate. Which of the following best describes the population pyramid in third stage? a) Population pyramid expanding at bottom b) Population pyramid rapidly expanding c) Population pyramid is stationary d) Population pyramid is contracting


  10. Consider the following statements about While calculation Dependency ratio of Legal tender - 1) One Rupee note and One rupee Coin age group is considered as economically are legal tenders for unlimited amount. productive (Not dependent population)? 2) 50 Paisa coins are legal tenders for any a) 15 to 64 Years of age sum not above Rs 10 3) The coins of smaller value are legal tenders of a sum below Re 1 Which of the above statements are correct? a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) 1 2 and 3 Only population in India; which of the following b) 18 to 64 Years of age c) 15 to 60 years of age d) 18 to 60 Years of age https://unacademy.com/user/AkshayDKadam


  11. Consider the following statements about Which of the following forms part of Non Agriculture Credit 1) According to RBlI, Agriculture loans on India'? which interest or instalment of principal 1 Dividends from PSU's. remain overdue for a period of more than 2) Grants in Aid 90 days from day of issuance of credit is 3) Money generated out of Stamp termed as Non Performing Asset. 2)A Bank can sell agri land under Sarfaesi if it has mortgaged and turned such as Banking, Insurance etc NPA Which of the above statements are incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct Tax revenue receipt of government of Printing, Currency Printing etc 4) Revenue generated from services Options a) 1 2 and 3 only b) 1 2 and 4 Only c) 2 3 and 4 Only d) 1 2 3 and 4 Only pP


  12. Any loan to Micro, Small and Medium enterprises comes under priority sector. MSME's are defined by termed as double financial Ministry of Micro Small and Medium enterprises as repression of banks- per investment limit in Plant and machinery. Consider 1) SLR the following statements about Micro enterprises 2) CRR 1) Micro enterprises in manufacturing sector are the 3) Priority sector lending ones in which investment in plant and machinery 4) Capital Adequacy Ratio does not exceed 25 Lakhs. 2) Micro enterprises in Service sector are the ones in which investment in plant and machinery does not a) 1 and 2 only exceed 10 Lakhs Which of the above statements are incorrect? a) 1 Only b) 2 Only c) Both 1 and 2 are correct d) Neither 1 nor 2 correct Which of the following is Norms Options b) 1 and 3 Only c) 1 and 4 Only d) 3 and 4 Only