Q.If rupee is appreciating in real terms with respect to US dollars, then
Anonymous Quiz
39%
(a) India’s exports competitiveness will decrease
34%
(b) India’s exports competitive will increase
17%
(c) India’s exports will be more competitive than US
10%
(d) India’s exports will be less competitive than US
2. Which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements' in the context of the Indian economy?
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38%
A) To enable the Central Bank to control the amount of advances the banks can create
16%
B) To make the people's deposits with banks are fixed
14%
C) To prevent the commercial banks from making excessive profits
32%
D) To force the banks to have sufficient vault cash to meet their day-to-day requirements
3.Which organization publishes the 'World Economic Outlook'?
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26%
A) World Bank
51%
B) International Monetary Fund (IMF)
10%
C) United Nations
12%
D) Organisation for Economic Co-operation and Development (OECD)
4.The 'Rapid Financing Instrument' and 'Rapid Credit Facility' are related to the provisions of lending by which of the following?
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13%
A) World Bank
47%
B) International Monetary Fund (IMF)
13%
C) Asian Development Bank
27%
D) Reserve Bank of India
5.Which of the following best describes the term 'Monetary Transmission Mechanism' in the context of Indian economic policy?
Anonymous Quiz
30%
A) The process by which changes in the money supply affect nominal interest rates.
40%
B) The mechanism through which government fiscal policy influences economic activity
11%
C) The way in which foreign exchange rates impact domestic inflation
19%
D) The procedure for the distribution of currency by the Reserve Bank of India
✅ Educational update
Civil Service Gurukul is happy to announce that we will share daily 5 MCQ for UPSC prelims.
Join group for more update @economyupsc
Civil Service Gurukul is happy to announce that we will share daily 5 MCQ for UPSC prelims.
Join group for more update @economyupsc
Channel name was changed to «Indian Economy by CA Dhananjay Ojha»
UPSC Prelims MCQ
Q.1 Which one of the following best describes 'Core Inflation' in the context of Indian economy?
Q.1 Which one of the following best describes 'Core Inflation' in the context of Indian economy?
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38%
A. Inflation that includes all commodities, including volatile food and fuel prices
45%
B. Inflation measured excluding certain volatile items like food and fuel.
14%
C. The rate at which the prices of core commodities like steel and cement increase.
3%
D. Inflation rate specifically for services within the economy.
Q.2 The term 'Base Effect' in the context of inflation refers to:
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11%
A. The increase in prices due to increased production costs.
70%
B. The impact of inflation rates from the previous year on the current year's inflation rate.
8%
C. The lowest rate of inflation that the government aims to achieve
11%
D. The effect of changes in the base year for calculating inflation
Q.3 The term 'Monetary Policy Committee' (MPC) in India refers to:
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19%
A. A committee responsible for fiscal policy decisions.
60%
B. The body that sets interest rates to control inflation.
17%
C. An advisory group to the Finance Ministry on currency issues.
3%
D. A council that manages the country's foreign exchange reserves
Q.4. Which of the following best describes 'Quantitative Easing' in the context of India's economy?
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24%
A. A policy by the RBI to increase interest rates to control inflation.
48%
B. An increase in the money supply by the RBI to stimulate the economy.
22%
C. Reduction in the cash reserve ratio to allow banks to lend more
6%
D. Selling of government securities by the RBI to decrease the money supply.
Q.5 What is the primary purpose of the 'Pradhan Mantri Jan Dhan Yojana'?
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5%
A. To provide health insurance to the underprivileged
82%
B. To promote financial inclusion by ensuring access to financial services like banking.
11%
C. To offer subsidies directly into bank accounts for LPG.
1%
D. To enhance digital literacy across India