Welcome to your Economics – Prelims PYP Part 8 – 2021, 2022
Other things remaining unchanged, market demand for a good might increase if (1) price of its substitute increases (2) price of its complement increases (3) the good is an inferior good and income of the consumers increases (4) its price falls Which of the above statements are correct?
(1) They are supervised and regulated by local boards set up by the State Governments. (2) They can issue equity shares and preference shares. (3) They were brought under the purview of the Banking Regulation Act, 1949 trough an Amendment in 1966. Which of the statements given above is/are correct?
(1) Retail investors through demat account can invest in โTreasury Billsโ and โGovernment of India Debt Bondsโ in primary market. (2) The โNegotiated Dealing System Order Matchingโ is a government securities trading platform of the Reserve Bank of India. (3) The โCentral Depository Services Ltd.โ Is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?
(1) Actions of the United States Federal Reserve (2) Actions of the Reserve Bank of India (3) Inflation and short-term interest rates Select the correct answer using the code given below:
The effect of devaluation of a currency is that it necessarily (1) improves the competitiveness of the domestic exports in the foreign markets (2) increases the foreign value of domestic currency (3) improves the trade balance Which of the above statements is/are correct?
(1) Foreign currency convertible bonds (2) Foreign institutional investment with certain conditions (3) Global depository receipts (4) Non-resident external deposits Which of the above can be included in Foreign Direct Investments?
(1) Lending to trade and industry bodies when they fail to borrow from other sources. (2) Providing liquidity to the banks having a temporary crisis. (3) Lending to governments to finance budgetary deficits. Select the correct answer using the code given below:
(1) Expansionary policies (2) Fiscal stimulus (3) Inflation-indexing wages (4) Higher purchasing power (5) Rising interest rates Select the correct answer using the code given below:
1. Farmers harvesting their crops2. Textile mills converting raw cotton into fabrics3. A commercial bank lending money to a trading company4. A corporate body issuing Rupee Denominated Bonds overseasSelect the correct answer using the code given below:
1. They can sell their own goods in addition to offering their platforms as market-places.2. The degree to which they can own big sellers on their platforms is limited.Select the correct answer using the code given below:
1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in tradecompetitiveness.3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.Which of the above statements are correct?
1. It is an initiative endorsed by the G20 together with the Paris Club.2. It is an initiative to support Low Income Countries with unsustainable debt.Which of the statements given above is/are correct?
1. A share of the household financial savings goes towards government borrowings.2. Dated securities issued at market-related rates in auctions form a large component of internal debt.Which of the above statements are correct?
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buydollars.Which of the statements given above are correct?
1. Acquiring new technology is capital expenditure.2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.Select the correct answer using the code given below:
1. Government can reduce the coupon rates on its borrowing by way of IIBs.2. IIBs provide protection to the investors from uncertainty regarding inflation.3. The interest received as well as capital gains on IIBs are not taxable.Which of the statements given above are correct?
Time’s up