Competitive Exams: Economics MCQs (Practice-Test 31 of 122)

  1. Consider the following statements: The major thrust of the EXIM Policy (1992 − 97) is

    1. to encourage exports of agricultural and allied sector products.

    2. abolition of minimum export price for basmati rice

    3. permission of GDR to flow in

    4. setting up of exporters'guidance cell

    Of these statements

    1. 1 and 3 are correct

    2. 3 and 4 are correct

    3. 1, 2 and 3 are correct

    4. 1, 2 and 4 are correct

  2. As far as India is concerned, which of the following effects will be current account convertibility have?

    1. Substantial liberalisation of access to foreign exchange for all current business transactions

    2. Liberalisation of foreign exchange for travel

    3. Liberalisation of import of capital goods

    4. Help in the elimination of hawala transactions in foreign exchange

    Select the correct answer using the codes given below:

    Codes:

    1. 1, 2 and 4

    2. 1, 2, 3 and 4

    3. 3 and 4

    4. 1 and 2

  3. Which of the following would include foreign direct investment in India?

    1. Subsidiaries of foreign companies in India

    2. Majority foreign equity holding in Indian companies.

    3. companies exclusively financed by foreign companies

    4. Portfolio investment

    Select the correct answer using the codes given below:

    Codes:

    1. 1, 2, 3 and 4

    2. 2 and 4

    3. 1 and 3

    4. 1, 2 and 3

  4. Consider the following:

    1. Currency with the public

    2. Demand deposits with the banks

    3. Other deposits with the Reserve Bank of India

    4. Time deposits with the banks

    Money supply (M3) in India includes

    1. 1, 2 and 4

    2. 1, 2 and 3

    3. 1, 2, 3 and 4

    4. 1, 3 and 4

  5. Statutory Liquidity Requirements (SLR) is

    1. a method of credit control followed by the Reserve Bank of India.

    2. a method of compelling the limited companies to keep minimum reserves

    3. a law under which the Unit Trust of India and other mutual funds must declare a minimum amount as dividend.

    4. another name for Cash Reserve Ratio

  6. Some of the features of recent inflation (1991 onwards) are listed below:

    1. Agricultu4ral labourers have faced the maximum impact of the inflation.

    2. The wholesale price index has the most comprehensive cover are of commodities.

    3. Movements in consumer price index for urban ended for industrial workers.

    4. The rate of inflation in 1993 − 94 has been higher than what it was before

    January 1991.

    Those which correctly reflect the situation (1991 onwards) would include

    1. 2, 3 and 4

    2. 1, 3 and 4

    3. 1, 2 and 4

    4. 1, 2 and 3