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Set 6: Part 6: Economics MCQ for Prelims
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Set 6: Part 6: 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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sir largest private bank HDFC allae based on market capitalisation ...
  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. 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


  3. 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


  4. 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


  5. 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


  6. 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


  7. 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


  8. Consider the following statements about Bank Deposit Insurance 1) Deposit Insurance and Credit Guarantee Corporation(DICGC) a statutory and an autonomous body created by an act of Parliament provides protection against lost of deposits kept with banks. 2) Only deposits kept by citizens in Scheduled commercial banks enjoys insurance cover of RBI. 3) The maximum amount per depositor insured is Rs 2 Lakhs including principle and interest. Which of the above statements are correct? a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) None of the above Task Force appointed under ArvindPanagariya; under NITI aayog, supported the continuation of poverty line as defined by which of the following committee? a) AmartyaSen's definition of poverty b) Lakdawala Formula c) Tendulkar Committee d) Rangarajan Committee https://unacademy.com/user/AkshayDKadam


  9. 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


  10. Consider the following statements about Priority Sector lending (PSL) target by RBl for government in which of the following domestic scheduled commercial banks and ways? foreign banks with 20 branches and above 1) By bringing change in aggregate 1) PSL target for Agriculture is 18% of Adiusted net bank credit. 2) PSL target for Micro Enterprises is 7.5% allocation of Adiusted net bank credit 3) PSL target for Advances to weaker sections is 10% of Adjusted net bank credit. 4) By controlling credit creation in the Which of the above statements are correct? economy. a) 1 and 2 only b) 1 and 3 Only c) 2 and 3 Only d) All of the above Fiscal policy can affect the demand 2) By changing pattern of resource 3) By bringing change in the distribution of income 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


  11. Advances to which of the following will be considered under weaker sections category under Priority sector Lending? 1) Small and Marginal farmers 2) Scheduled Castes and Scheduled Tribes 3) Self Help Groups 4) Individual women beneficiaries up to Rs1 Lakh per borrower. 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 Consider the following statements about Small and Marginal farmers 1) For computation of Priority Sector Targets, RBl defines Marginal farmers as one with less than 1 hectare of land 2) For computation of Priority Sector Targets, RBl defines Small farmers as one with 1-2 hectare of land 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