CBSE Questions for Class 8 General Knowledge Indian Economy Quiz 17 - MCQExams.com

Which one of the following statements is/ are incorrect? Select your answer using the code given below:
The Committee on Financial Sector reforms suggested the RBI to pay interest on the Cash Reserve Ratio maintained by the commercial banks with the RBI-it has been followed by the RBI. 
GoI has started paying market-bases interest on its borrowings from the commercial banks by mortgaging the G-Secs-as was suggested by the Committee on Financial Sector reforms. 
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the incorrect statements about 'narrow banking', using the code given below:
A banking business in which banks go for short-term risk-free lending.
A type of retail banking in which banks provide short-term 'open-ended' loans.
When banks prefer short-term 'closed-ended' lending to the corporate sector.
A banking collateralised loans to public.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Farm waste has always been an issue of debate in India-select the correct statement/statements regarding it, using the code given below: 
In case of the cereals. farm waste is at 8 per cent of the total produce.
Around 20 per cent of the fruits and vegetables produced in India are wasted.
  • Only 1
  • Only 2
  • Both 1 and 2
  • Neither 1 nor 2
What is not correct about the Liquidity Management Framework provisioned by the RBI for the banks operating in India?
  • Total repo operation by banks cannot be more than one per cent of their NDTLs.
  • Overnight repo is allowed upto 0.25 per cent of the banks 'NDTLs.
  • Banks have to use the term repos for rest of 0.75 per cent of the allowed repo.
  • There is no daily upper ceiling on the amount for banks' repo operation.
An upsurge has been in the NPAs of public sector banks, recently-select the correct factors responsible for it using the code given below:
Lower economic growth in the country.
Aggressive lending by banks in the past, especially during good times.
Lack of right loan-recovery legal provisions.
Banks switching over to a system based identification of NPAs.
  • 1,2 and 3
  • 2,3 and 4
  • 1,2 and 4
  • 1,3 and 4
If RBI announces cut in the term repo rates which the following could be the possible actions coming from the banks?
  • Banks will necessarily announce a cut in the lending rates.
  • Banks should announce a cut in the lending rates.
  • Banks are bound by the regulatory control of the RBI.
  • Monetary transmission is not so effective in India.
Select the incorrect statements about the 'ordinary shares' of a limited liability firm, using the code given below:
They undertake maximum entrepreneurial risk associated with a business venture.
These shares do not avail any voting right in the affairs of the company.
If a company is going for closure these shares get their claims after the bank loans have been settled and before the preference shares.
Company Law provides them no investment claims in the situations of closures.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Functioning of which of the following is not overseen by the Board for Financial Supervision (BFS)?
  • Department of Banking Supervision (DBS)
  • Department of Non-Banking Supervision (DNBS)
  • Financial Institutions Division (FID)
  • Merchant Banking Division
Which of the following are incorrect when the Government starts repuchasing its bonds before their maturity periods? Select the answer using the code given below:
Promotion of an 'expansionist' monetary policy.
An attempt to increase the saving rate of the economy.
A tool to check the rising inflation.
Promotion to credit creation by the banks.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
What is correct about the Board for Financial Supervision (BFS)? Select your answer using the code given below:
BFS is constituted by co-opting four Directors from the Central Board of the RBI as members and the Governor functions as its chairman.
Deputy Governors of the Reserve Bank are ex-offcio members of the BFS with one Deputy Governor, usually, the Deputy Governor in charge of banking regulation and supervision, is nominated as the Vice-Chairman of the Board.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the incorrect statements regarding the marginal standing facility rate of the RBI, using the code give below:
It is similar to the repo rate for the financial institutions.
It is on the lines of the liquidity adjustment facility and part of it.
Though it is a costlier route to fulfill overnight requirement of funds, it is not a penal rate.
Banks use this route once they exhaust all channels to raise short-term fund.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Consider the following statements and select the incorrect one/ones using the code given below:
Internal and Extra Budgetary Resources (IEBR) route is generally not used by the GoI while financing the Union Budget since the FRBM Act has been implement.
The FRBM Act puts very transparent checks and controls on the IEBR route.
For the fiscal 2016-17, the GoI has taken excuse from the FRBM Act so that extra resources can be mobilized via the IEBR.
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1,2 and 3
Deposits in few of the NRI accounts in India are not considered as the external debt of the country.
Select the related and correct statement/statements using the code:
Deposits in NRO accounts are included in India's external debt.
Deposits in the FCNR(B) are not considered as India's external debt.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the incorrect statements about the Grain Bank, using the code given below:
Run in tribal and non-tribal rural areas by the Ministry of Tribal Affairs and the Ministry of Consumer Affairs, Food and Public Distribution, respectively.
Foodgrains can be borrowed from it by mortgaging dwellings.
Set up in the food scarce areas, it aims at providing safeguard to all against starvation during natural calamity and lean period.
4.Civil society bodies can also run it.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Select the correct statements about the security market in India, using the code given below:
As the ADRs and GDRs are for the foreigners with respect to Indian companies, the IDRs are for the Indians with respect to the foreign companies.
Due to availability of better routes for foreign investments in the Indian security market, the IDR route has lost its relevance.
The IDRs are today a very popular route for Indians to invest in the foreign security market.
India allows debt and non-debt, both forms of the securities under ADR, GDR and IDR.
  • 1 and 2
  • 2 and 3
  • 3 and 4
  • 1 and 4
Select the correct statements about derivatives in India, using by the code given below:
A security derived from a debt instrument,share,secured or unsecured loan.
A contract which derives its value from the prices, or index, of underlying assets.
A security derived from exchange rates and interest rates.
It may be derived from the monsoon forecasting.
  • 1, 2 and 3
  • 1, 3 and 4
  • 2, 3 and 4
  • 1, 2, 3 and 4
Select the correct statement/statements regarding the process of 'disinflation' in India:
Headline inflation falls towards 6 per cent. 
It leaves similar effects to deflation.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct statements about the GIC RE, using the code given below:
The public sector Reinsurer provides reinsurance support to the life and non-life insurance companies in the country.
It also manages Marine Hull Pool, Indian terrorism insurance pool and for commercial vehicle on behalf of Indian insurance industry.
It has emerged as a preferred reinsurer in the Afro-Asian region.
It is the 3rd largest aviation reinsurer globally.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Which of the following is/are correct about the budgeting process of the Government of India?
Unlike some other countries, the fiscal deficit of India is mostly financed from domestic sources.
Domestic sources meet around 98 per cent of India's deficit financing
Market borrowing constitutes around 84 per cent of domestic sources in India's deficit financing.
  • Only 1
  • Only 2
  • 1 and 2
  • 1,2 and 3
Select the items which India shows in its current account, using the code given below:
Inflows due to exports and outflows due to imports.
Inflows and outflows due to income repatriation.
Inflows and outflow due to foreign portfolio investment.
External lending and borrowings.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the correct statement/s about the new Bilateral Investment Treaty of India, using the code given below:
It aims to enhance comfort level and boost the confidence of foreign investors.
It projects India as a preferred foreign direct investment (FDI) destination.
It protects outbound Indian FDI.
  • 1 and 2
  • 2 and 3
  • 1 and 3
  • 1,2 and 3
Due to certain reasons, it becomes difficult for the Export Credit Guarantee Corporation to cover pure commercial risks of the medium and long term exports originating from India. Select the answer using the code give below:
Long repayment period
The large value of contracts
Difficult economic and political conditions in the importing countries 
Non-availability of re-insurance for such external projects.
  • 1,2 and 3
  • 1,3 and 4
  • 2,3 and 4
  • 1,2,3 and 4
Select the incorrect statements regarding the 'angel investors' , using the code given below:
The investors who provide financial backing to entrepreneurs for starting their business.
They are investors with positive spillover effects.
They may provide finance as loan or as share capital in the upcoming business.
They usually invest in person rather then the economic viability of the business.
They are usually from the entrepreneur's family and friends but may be from outside, too.
Venture capital funds serve similar purpose to the extent arrangement of investible capital is concerned. 
  • 1, 2 and 5
  • 2, 3 and 4
  • 3, 5 and 6
  • None of the above
Select the correct one/ones about the merchant banks in India, using the code given below:
They are non-banking finance companies regulated by the SEBI.
Recently, they have been allowed to disburse loans to the corporate sector.
  • Only 1
  • Only 2
  • 1 and 2
  • Neither 1 nor 2
Select the NRI bank account from the given list which India does not permit to be opened in the country:
  • Foreign Currency Non-Resident (Bank) account [FCNR(B) account]
  • Non-Resident External account (NRE account)
  • Non-Resident Ordinary Rupee account (NRO account
  • None of the above
Which of the following does not belong to the current account of India?
Transactions due to foreign trade.
Interest payments of the external borrowings and lending.
Grant disbursed and received.
Transactions of remittances.
  • 1 and 2
  • 2 and 4
  • 1, 2 and 3
  • 1, 2, 3 and 4
Which of the following is not correct about the 'payment banks' in India?
  • They can disburse loans but not more than Rs. one lakh for each borrower.
  • They are allowed to use net-banking
  • They can issue ATM/Debit.Credit cards.
  • They are allowed to sell insurance policies and mutual funds.
Participatory economics is a form of __________________.
  • socialist decentralized planned economy
  • socialist decentralized unplanned economy
  • Both planned and unplanned economy.
  • None of these.
After a period of growth, my restaurant needed more _______ to continue expanding.
  • capital
  • capitol
  • capitally
  • NA
Maharatna status has been granted by the Government to state-owned ___________ and ____________ . The status also comes with greater operational and financial autonomy.
  • Neyveli Lignite Corporation Limited and Power Finance Corporation Limited
  • Mahanagar Telephone Nigam Limited and National Aluminium Company Limited
  • Hindustan Petroleum Corporation Limited and Power Grid Corporation of India Limited
  • Bharat Electronics Limited and Container Corporation of India Limited
  • Engineers India Limited and Hindustan Aeronautics Limited
Time taken to fix a broken build is measured using ________________.
  • Broken Build Time
  • Total Build time
  • Successful build rate
  • NA
A requested task is subject to be reported when:
  • When it asks Workers to disclose personal or financial information (Credit Card details, Social security number..etc)
  • When it is asking for 3 proofs
  • When it requests for email address to be submitted
  • When it requests for a download to be performed
Commercial banks are funded through which of the following?
  • Stock holders
  • Government funding
  • Services
  • Customer deposits
Why is it important that you set goals when planning your display ad campaigns?
  • To help determine the best way to collate customer data
  • To help determine the performance and allow for optimisation
  • To help determine where your budget will be spent
  • To help determine the performance of your competition
What is the definition of face value ?
  • the amount you pay for someone else's medical expenses
  • the basic amount a policy is worth, which is printed on the policy
  • the amount you pay each year to the insurance company
  • None
The rate at which cost changes with respect to weight or bias is called __________________.
  • Gradient
  • Rate of Change
  • Derivative
  • Loss
What is a tax levied on any asset inherited?
  • flat tax
  • payroll tax
  • estate tax
  • recessive tax
Method of job evolution are 
  • $$1$$ point
  • Qualitative method
  • Quantitative method
  • None of these
Which of the following is not method of calculation of cost of equity.
  • capm
  • $$YTM+$$ risk premium
  • $$YTM$$
  • dividend discount model
In the system of mass production, unskilled workers
  • were hired to tend to machines and were paid more than skilled workers.
  • were hired to help skilled workers and were paid more than skilled workers.
  • were hired to tend to machines and were paid less than skilled workers.
  • were hired to assist skilled workers and were paid the same as skilled workers
Sales information system and invetory level data related to distribution are part of 
  • Internal reporting system
  • Marketing research system
  • Marketing intelligence system
  • Marketing decision support system
When creating video marketing content on a budget, what is the first thing you should consider doing?
  • Shooting as much as you can and culling it later
  • Finding editing software
  • Finding equipment to use
  • Planning your content
Which statement best describes a mixed market economy?
  • Consumer intervention in economic choices is strictly forbidden.
  • The government determines economic choices and makes most decisions.
  • The decisions made by producers and consumers drive all economic choices.
  • Producers and consumers make some economic choices while the government makes others.
Which is an example of regulation in the automobile industry?
  • the creation of fuel-efficiency standards for cars
  • the installation of satellite radio systems in some cars
  • the usage of multiple-year warranties to cover repairs
  • the production of hybrid models that conserve gasoline
Which factor caused higher oil prices to directly lead to inflation?
  • It increased the demand for cars, leading to higher auto mobile prices.
  • Companies passed on production and transportation costs to consumers
  • The government began to print more money.
  • Gas prices declined too quickly, leading to over supply.
Which of the following would not be considered an input in the airline in the business?
  • flight crew
  • ground equipment
  • Fuel
  • all of the above
Private property is land or goods.
  • owned by the government.
  • owned by an individual.
  • used by state officials.
  • used for taxation
The service sector includes activities such as:
  • agriculture, dairy, fishing and forestry
  • making sugar, gur and bricks
  • transport, communication and banking
  • None of these
What happens when a bond becomes due?
  • You pay it back to the issuer, minus interest.
  • The issuer will pay you back, plus interest.
  • You pay it back to the issuer, plus interest.
  • The issuer will pay you back, minus interest.
Which best describes the benefits of renting a home?
  • Renting can cost more upfront.
  • Renting is less flexible than owning a home.
  • Renting has a lease that cost money to break.
  • None of the above.
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