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Question 1 of 5
1. Question
2 points
1. Which of the following situation suggest that an economy is under the liquidity trap?
Correct
Answer: C
Explanation:
It is a contradictory economic situation in which interest rates are very low and savings rates are high, rendering monetary policy ineffective.
Any additional money supply that is generated in the economy get channelled towards savings rather than investment thus rendering the economy to remain at same liquidity level.
Incorrect
Answer: C
Explanation:
It is a contradictory economic situation in which interest rates are very low and savings rates are high, rendering monetary policy ineffective.
Any additional money supply that is generated in the economy get channelled towards savings rather than investment thus rendering the economy to remain at same liquidity level.
Question 2 of 5
2. Question
2 points
2. Which of the following are possible benefits of having Central Bank Digital Currency (CBDC) in India?
It reduces the cost of issuing the currency by RBI.
It can be tracked by the law enforcement agencies for the black money trail.
Ease of use by the people.
It will promote financial inclusion.
Select the correct answer using the code given below:
Correct
Answer: D
Explanation:
Benefits of CBDC:
It reduces the cost of issuing the currency by RBI as printing currency notes involve some cost.
It can be tracked by the law enforcement agencies for black money trail and thus black money can be reduced.
Ease of use by the people and transactions will be faster.
It will promote financial inclusion as money becomes more mobile and serves the underprivileged and unbanked too.
Incorrect
Answer: D
Explanation:
Benefits of CBDC:
It reduces the cost of issuing the currency by RBI as printing currency notes involve some cost.
It can be tracked by the law enforcement agencies for black money trail and thus black money can be reduced.
Ease of use by the people and transactions will be faster.
It will promote financial inclusion as money becomes more mobile and serves the underprivileged and unbanked too.
Question 3 of 5
3. Question
2 points
3. Which of the following statements is not correct?
Correct
Answer: D
Explanation:
According to the Philip curve, rising inflation with a certain limit is good for developing countries.
Incorrect
Answer: D
Explanation:
According to the Philip curve, rising inflation with a certain limit is good for developing countries.
Question 4 of 5
4. Question
2 points
4. Consider the following
Earning of Nokia established in India.
Income of Indians living in Saudi Arabia.
Income of Infosys Unit established in Silicon Valley.
Income of an American teacher in India.
Which of the above are included in the India Gross National Income of India?
Correct
Answer: B
Explanation:
The Gross National Income of India includes the income earned by Indians, whether living in India or living abroad.
Nokia is not an Indian company.
The person working in Saudi Arabia is Indian.
Infosys is an Indian company.
The teacher is not an Indian.
Incorrect
Answer: B
Explanation:
The Gross National Income of India includes the income earned by Indians, whether living in India or living abroad.
Nokia is not an Indian company.
The person working in Saudi Arabia is Indian.
Infosys is an Indian company.
The teacher is not an Indian.
Question 5 of 5
5. Question
2 points
5. With reference to foreign trade, consider the following:
Export of spices from India to Europe.
Apple’s Call Center in Bangalore.
Investment in reliance by Facebook.
Earning by Indian engineers in America and sending it to India.
Loan taken by Government of India from Singapore Bank.
Which of the above comes under capital account?
Correct
Answer: D
Explanation:
When goods and services are exchanged in foreign trade, they come under the current account.
If there is only capital inflow (investment, foreign loan, aid), it comes under the capital account.
Incorrect
Answer: D
Explanation:
When goods and services are exchanged in foreign trade, they come under the current account.
If there is only capital inflow (investment, foreign loan, aid), it comes under the capital account.
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