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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 12 knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Government of India has recently launched 'Jan -Dhan Yojna' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect national income of the country. |
| Answer» <html><body><p></p>Solution :`-`<a href="https://interviewquestions.tuteehub.com/tag/opening-1136658" style="font-weight:bold;" target="_blank" title="Click to know more about OPENING">OPENING</a> more <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> accounts means more bank deposits. <br/> `-`More deposits means increase in the lending capacity of the commerical <a href="https://interviewquestions.tuteehub.com/tag/banks-393664" style="font-weight:bold;" target="_blank" title="Click to know more about BANKS">BANKS</a>. <br/> `-`More lending by banks means more investment in the <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a>. <br/> `-`More investment means more national <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a></body></html> | |
| 102. |
What are the instruments of monetary paolicy of RBI? How does RBI stabilise moneysupply against exogenous shocks? |
| Answer» <html><body><p></p>Solution :The main instruments of monetarry policy of RBI are: <br/> 1 Quantitative <a href="https://interviewquestions.tuteehub.com/tag/measures-1091959" style="font-weight:bold;" target="_blank" title="Click to know more about MEASURES">MEASURES</a> <br/> Bank rate policy ,Repo rate <br/> Reverse repo rate. ,Open market <a href="https://interviewquestions.tuteehub.com/tag/operation-1136889" style="font-weight:bold;" target="_blank" title="Click to know more about OPERATION">OPERATION</a> <br/> (varying reserve requirement (i) Cash reserve ratio (ii) statutory liquidity ratio <br/> 2.Quialitative measures <br/> Margin requirement , Moral suasiuon ,Selective creidti <a href="https://interviewquestions.tuteehub.com/tag/controls-425632" style="font-weight:bold;" target="_blank" title="Click to know more about CONTROLS">CONTROLS</a> <br/> Money stabilisation by RBI .RBI often <a href="https://interviewquestions.tuteehub.com/tag/uses-722152" style="font-weight:bold;" target="_blank" title="Click to know more about USES">USES</a> its instruments of money creation for <a href="https://interviewquestions.tuteehub.com/tag/stabilising-7715155" style="font-weight:bold;" target="_blank" title="Click to know more about STABILISING">STABILISING</a> the supply of money in the economy.</body></html> | |
| 103. |
Define Balance of Payments. Discuss briefly the components of current account. |
| Answer» <html><body><p></p>Solution :Balance Of Payment (BOP) is a statement which records all the monetary transactions made between residents of a <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a> and the rest of the world during any given period. This statement includes all the transactions made by/to individuals, corporates and the government and helps in monitoring the flow of funds to develop the economy. When all the elements are correctly included in the BOP, it should sum up to zero in a perfect scenario. This means the inflows and outflows of funds should balance out. However, this does not ideally happen in most cases.The main components of Current Account are:1. Export and Import of Goods (Merchandise Transactions or Visible Trade):A major <a href="https://interviewquestions.tuteehub.com/tag/part-596478" style="font-weight:bold;" target="_blank" title="Click to know more about PART">PART</a> of transactions in foreign trade is in the form of export and import of goods (visible items). Payment for import of goods is written on the negative side (debit items) and <a href="https://interviewquestions.tuteehub.com/tag/receipt-1179268" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPT">RECEIPT</a> from exports is shown on the positive side (credit items). Balance of these visible exports and imports is known as balance of trade (or trade balance).2. Export and Import of Services (Invisible Trade):It includes a large variety of non- factor services (known as invisible items) <a href="https://interviewquestions.tuteehub.com/tag/sold-631881" style="font-weight:bold;" target="_blank" title="Click to know more about SOLD">SOLD</a> and purchased by the residents of a country, to and from the rest of the world. Payments are either received or made to the other countries for use of these services.3. Unilateral or Unrequited Transfers to and from abroad (One sided Transactions):Unilateral transfers include gifts, donations, personal remittances and other ‘one-way’ transactions. These refer to those receipts and payments, which take place without any service in return. Receipt of unilateral transfers from rest of the world is shown on the credit side and unilateral transfers to rest of the world on the debit side.4. Income receipts and payments to and from abroad:It includes <a href="https://interviewquestions.tuteehub.com/tag/investment-25469" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTMENT">INVESTMENT</a> income in the form of interest, rent and profits.</body></html> | |
| 104. |
A meaningful comparisonbetween two countries is possible on the basis of : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/common-923599" style="font-weight:bold;" target="_blank" title="Click to know more about COMMON">COMMON</a> currency<br/>Common <a href="https://interviewquestions.tuteehub.com/tag/price-1165141" style="font-weight:bold;" target="_blank" title="Click to know more about PRICE">PRICE</a> level<br/>Both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<br/>Any other</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 105. |
Identify qualitative instrument to check money supply |
| Answer» <html><body><p>CRR<br/>SLR<br/>open <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <a href="https://interviewquestions.tuteehub.com/tag/operation-1136889" style="font-weight:bold;" target="_blank" title="Click to know more about OPERATION">OPERATION</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/mural-1106518" style="font-weight:bold;" target="_blank" title="Click to know more about MURAL">MURAL</a> <a href="https://interviewquestions.tuteehub.com/tag/suasion-7712862" style="font-weight:bold;" target="_blank" title="Click to know more about SUASION">SUASION</a> </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :d</body></html> | |
| 106. |
What are the alternative definitions of money supply in india ? |
| Answer» | |
| 107. |
MPC is zero when: |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/deltac-2053512" style="font-weight:bold;" target="_blank" title="Click to know more about DELTAC">DELTAC</a> lt DeltaY`<br/>`DeltaS = DeltaY`<br/>`DeltaS lt DeltaY`<br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these</p>Solution :when all of the additional <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> is saved , then none is left for <a href="https://interviewquestions.tuteehub.com/tag/consumption-931383" style="font-weight:bold;" target="_blank" title="Click to know more about CONSUMPTION">CONSUMPTION</a>.</body></html> | |
| 108. |
The following activity leads to human capital formation : |
| Answer» <html><body><p>Walking<br/>Physical exercises<br/>Yoga<br/>Any <a href="https://interviewquestions.tuteehub.com/tag/one-585732" style="font-weight:bold;" target="_blank" title="Click to know more about ONE">ONE</a> of the above</p>Answer :D</body></html> | |
| 109. |
Normal residents of India working in an American company in England add to : |
| Answer» <html><body><p>Domestic product of India<br/>Domestic product of England<br/>National product of England<br/>None of these</p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> residents of India working in an <a href="https://interviewquestions.tuteehub.com/tag/american-374087" style="font-weight:bold;" target="_blank" title="Click to know more about AMERICAN">AMERICAN</a> company in England add to :Domestic product of England because heworked in england .</body></html> | |
| 110. |
Increase in per capita real income means increase in per capita availability of goods and services. Does it necessarily mean rise in the welfare of the people of the country ? Give any one argument in support of your answer and explain the same. |
| Answer» <html><body><p></p>Solution :Increase in per capita availability of goods and services does raise the standard of <a href="https://interviewquestions.tuteehub.com/tag/living-1076292" style="font-weight:bold;" target="_blank" title="Click to know more about LIVING">LIVING</a> and consequently welfare. But it may not necessarily always be so. For example, manufacturing <a href="https://interviewquestions.tuteehub.com/tag/etc-975753" style="font-weight:bold;" target="_blank" title="Click to know more about ETC">ETC</a>. does raise <a href="https://interviewquestions.tuteehub.com/tag/output-1142821" style="font-weight:bold;" target="_blank" title="Click to know more about OUTPUT">OUTPUT</a> but at the same time also leads to water and air pollution which reduces welfare of the people. Such a <a href="https://interviewquestions.tuteehub.com/tag/reduction-621019" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCTION">REDUCTION</a> in welfare may outweigh the increase in welfare and thus lead to overall reduction in werlfare.</body></html> | |
| 111. |
The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are: |
| Answer» <html><body><p>1.normals <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> <br/>2.complements<br/>3.substitutes<br/>4.inferior goods</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 112. |
Inwards foreign direct invesstment is useful because: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/brings-2488276" style="font-weight:bold;" target="_blank" title="Click to know more about BRINGS">BRINGS</a> in <a href="https://interviewquestions.tuteehub.com/tag/foreign-995515" style="font-weight:bold;" target="_blank" title="Click to know more about FOREIGN">FOREIGN</a> exchange<br/>Brings in <a href="https://interviewquestions.tuteehub.com/tag/modern-1099449" style="font-weight:bold;" target="_blank" title="Click to know more about MODERN">MODERN</a> technology<br/>Brings in <a href="https://interviewquestions.tuteehub.com/tag/management-1085657" style="font-weight:bold;" target="_blank" title="Click to know more about MANAGEMENT">MANAGEMENT</a> <a href="https://interviewquestions.tuteehub.com/tag/expertise-980469" style="font-weight:bold;" target="_blank" title="Click to know more about EXPERTISE">EXPERTISE</a> <br/>All the above.</p>Answer :D</body></html> | |
| 113. |
Industries producing goods, are a part of |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/primary-1165403" style="font-weight:bold;" target="_blank" title="Click to know more about PRIMARY">PRIMARY</a> sector<br/>Secondary sector<br/>Tertiary sector<br/>None of the above</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 114. |
Components of govt. budget |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> <a href="https://interviewquestions.tuteehub.com/tag/receipt-1179268" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPT">RECEIPT</a> <br/>revenue <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> receipt and expenditure <br/>all of these.</p>Answer :D</body></html> | |
| 115. |
If marginal product rises, average product must also rise. |
| Answer» <html><body><p></p>Solution :True: Rising of marginal product <a href="https://interviewquestions.tuteehub.com/tag/implies-1037962" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLIES">IMPLIES</a> that the total product increases at an <a href="https://interviewquestions.tuteehub.com/tag/increasing-1040633" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASING">INCREASING</a> rate. This pulls up the average product <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a>.</body></html> | |
| 116. |
What is the relationship between APC and APS ? |
| Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/sum-1234400" style="font-weight:bold;" target="_blank" title="Click to know more about SUM">SUM</a> of <a href="https://interviewquestions.tuteehub.com/tag/apc-363541" style="font-weight:bold;" target="_blank" title="Click to know more about APC">APC</a> and APSis <a href="https://interviewquestions.tuteehub.com/tag/equal-446400" style="font-weight:bold;" target="_blank" title="Click to know more about EQUAL">EQUAL</a> to one, i.e., APC + APS = <a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>.</body></html> | |
| 117. |
Devaluation and depreciation of currnency are one the same thing |
| Answer» <html><body><p></p>Solution : False. Devaluation is <a href="https://interviewquestions.tuteehub.com/tag/reduction-621019" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCTION">REDUCTION</a> in value of domestic currency by the government under fixed exchange <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> system. One the other, <a href="https://interviewquestions.tuteehub.com/tag/hand-1015171" style="font-weight:bold;" target="_blank" title="Click to know more about HAND">HAND</a>,depreciation is decrease in value of domestic currency due to market <a href="https://interviewquestions.tuteehub.com/tag/forces-16875" style="font-weight:bold;" target="_blank" title="Click to know more about FORCES">FORCES</a> of demand and supply under flexible exchange rate system.</body></html> | |
| 118. |
Which of the following is a characteristic feature of tax ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/penalty-1149836" style="font-weight:bold;" target="_blank" title="Click to know more about PENALTY">PENALTY</a> for breaking <a href="https://interviewquestions.tuteehub.com/tag/traffic-1425060" style="font-weight:bold;" target="_blank" title="Click to know more about TRAFFIC">TRAFFIC</a> rules<br/>Compulsory or <a href="https://interviewquestions.tuteehub.com/tag/legal-540749" style="font-weight:bold;" target="_blank" title="Click to know more about LEGAL">LEGAL</a> payment<br/>Payment for <a href="https://interviewquestions.tuteehub.com/tag/special-632090" style="font-weight:bold;" target="_blank" title="Click to know more about SPECIAL">SPECIAL</a> payment<br/>Direct payment for purchase of goods</p>Answer :B</body></html> | |
| 119. |
High powered money includes: |
| Answer» <html><body><p>currency and demand deposits <br/>demand deposits and saving deposits <br/>currency held by <a href="https://interviewquestions.tuteehub.com/tag/public-11897" style="font-weight:bold;" target="_blank" title="Click to know more about PUBLIC">PUBLIC</a> and cash <a href="https://interviewquestions.tuteehub.com/tag/reserves-1186138" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVES">RESERVES</a> with <a href="https://interviewquestions.tuteehub.com/tag/banks-393664" style="font-weight:bold;" target="_blank" title="Click to know more about BANKS">BANKS</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these</p>Answer :C</body></html> | |
| 120. |
Which one of the following options is not a characteristic of a perfectly competitive market? |
| Answer» <html><body><p>Large <a href="https://interviewquestions.tuteehub.com/tag/number-582134" style="font-weight:bold;" target="_blank" title="Click to know more about NUMBER">NUMBER</a> of firms in the industry<br/>Outputs of the firms are <a href="https://interviewquestions.tuteehub.com/tag/perfect-1150611" style="font-weight:bold;" target="_blank" title="Click to know more about PERFECT">PERFECT</a> substitutes for one another. <br/>Firms <a href="https://interviewquestions.tuteehub.com/tag/face-982590" style="font-weight:bold;" target="_blank" title="Click to know more about FACE">FACE</a> downward-sloping demand curves.<br/>Resources are very mobile.</p>Solution :Firms face downward-sloping demand curves.</body></html> | |
| 121. |
State the impact of excess demand onproduction and employment. |
| Answer» <html><body><p></p>Solution :Production and <a href="https://interviewquestions.tuteehub.com/tag/employment-25669" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYMENT">EMPLOYMENT</a> remain <a href="https://interviewquestions.tuteehub.com/tag/unchanged-2316761" style="font-weight:bold;" target="_blank" title="Click to know more about UNCHANGED">UNCHANGED</a> during excess demand as the economy is already <a href="https://interviewquestions.tuteehub.com/tag/operating-1136761" style="font-weight:bold;" target="_blank" title="Click to know more about OPERATING">OPERATING</a> at the full employment level.</body></html> | |
| 122. |
Define dear money policy. |
| Answer» <html><body><p></p>Solution :It refers to a situation when credit is not easily <a href="https://interviewquestions.tuteehub.com/tag/available-888895" style="font-weight:bold;" target="_blank" title="Click to know more about AVAILABLE">AVAILABLE</a> as there is <a href="https://interviewquestions.tuteehub.com/tag/high-479925" style="font-weight:bold;" target="_blank" title="Click to know more about HIGH">HIGH</a> rate of interest. People get discouraged to <a href="https://interviewquestions.tuteehub.com/tag/borrow-901240" style="font-weight:bold;" target="_blank" title="Click to know more about BORROW">BORROW</a> and <a href="https://interviewquestions.tuteehub.com/tag/spend-1222050" style="font-weight:bold;" target="_blank" title="Click to know more about SPEND">SPEND</a>, it controls inflation as AD falls.</body></html> | |
| 123. |
Spot the revenue receipt : |
| Answer» <html><body><p>Recovery of <a href="https://interviewquestions.tuteehub.com/tag/loans-1076821" style="font-weight:bold;" target="_blank" title="Click to know more about LOANS">LOANS</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/borrowings-901274" style="font-weight:bold;" target="_blank" title="Click to know more about BORROWINGS">BORROWINGS</a> <br/>External grants <br/><a href="https://interviewquestions.tuteehub.com/tag/disinvestment-440600" style="font-weight:bold;" target="_blank" title="Click to know more about DISINVESTMENT">DISINVESTMENT</a> </p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 124. |
Rural develoment implies : |
| Answer» <html><body><p>Development of agriculture<br/>Spread of education <a href="https://interviewquestions.tuteehub.com/tag/among-374776" style="font-weight:bold;" target="_blank" title="Click to know more about AMONG">AMONG</a> the rural people<br/>Providing <a href="https://interviewquestions.tuteehub.com/tag/health-1016582" style="font-weight:bold;" target="_blank" title="Click to know more about HEALTH">HEALTH</a> <a href="https://interviewquestions.tuteehub.com/tag/facilities-982711" style="font-weight:bold;" target="_blank" title="Click to know more about FACILITIES">FACILITIES</a> in rural areas<br/>Everything that rises <a href="https://interviewquestions.tuteehub.com/tag/quality-17732" style="font-weight:bold;" target="_blank" title="Click to know more about QUALITY">QUALITY</a> of <a href="https://interviewquestions.tuteehub.com/tag/life-541672" style="font-weight:bold;" target="_blank" title="Click to know more about LIFE">LIFE</a> of rural people</p>Answer :D</body></html> | |
| 125. |
What is meant by full equallity employment? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> employment equilibrium <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to a <a href="https://interviewquestions.tuteehub.com/tag/situation-1210683" style="font-weight:bold;" target="_blank" title="Click to know more about SITUATION">SITUATION</a> when aggregate <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> is equal to the aggregate supply at full employment level .</body></html> | |
| 126. |
Under monopolistic competition there is only one seller of the product. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>: Under monopolistic competition, there are large <a href="https://interviewquestions.tuteehub.com/tag/number-582134" style="font-weight:bold;" target="_blank" title="Click to know more about NUMBER">NUMBER</a> of buyers and <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> large number of sellers.</body></html> | |
| 127. |
GDP as index of welfare may understate or overstate welfare. Explain the statement using examples of a positive and a negative externality. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/gdp-467979" style="font-weight:bold;" target="_blank" title="Click to know more about GDP">GDP</a> doesn't account for externalities. <br/> Positive Externality : Example Saving commuting time <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to construction of a fly- over, increases welfare, GDP as an index understates welfare. <br/> <a href="https://interviewquestions.tuteehub.com/tag/negative-570381" style="font-weight:bold;" target="_blank" title="Click to know more about NEGATIVE">NEGATIVE</a> Externality : Example: Pollution from factories, <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> welfare, GDP overates welfare.</body></html> | |
| 128. |
What steps can be taken through the market to reduce consumption of product harmful to health ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/impose-498941" style="font-weight:bold;" target="_blank" title="Click to know more about IMPOSE">IMPOSE</a> heavy taxes <a href="https://interviewquestions.tuteehub.com/tag/like-1073845" style="font-weight:bold;" target="_blank" title="Click to know more about LIKE">LIKE</a> excise <a href="https://interviewquestions.tuteehub.com/tag/duty-960911" style="font-weight:bold;" target="_blank" title="Click to know more about DUTY">DUTY</a> and customs duty on the product. <br/> Value - Problem <a href="https://interviewquestions.tuteehub.com/tag/solving-1217196" style="font-weight:bold;" target="_blank" title="Click to know more about SOLVING">SOLVING</a>.</body></html> | |
| 129. |
To correct the deflationary gap, money supply should be decreased. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a>. <a href="https://interviewquestions.tuteehub.com/tag/money-25502" style="font-weight:bold;" target="_blank" title="Click to know more about MONEY">MONEY</a> supply should be increased to raise the level of <a href="https://interviewquestions.tuteehub.com/tag/aggregate-851607" style="font-weight:bold;" target="_blank" title="Click to know more about AGGREGATE">AGGREGATE</a> <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a>.</body></html> | |
| 130. |
In an economy, the actual level of income is ₹ 500 crores whereas full employment of Y is ₹ 800 crore. MPC = 0.75. Calculate how much change in investment is required to achive full employment level in the economy. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :`""K= (1)/(1-MPC)= (100)/(25) = 4` <br/> `""K=4` <br/> `""K= (Delta Y)/(Delta I)` <br/> `""4= (800-500)/(Delta I)` <br/> `""Delta I = (300)/(4) = ₹ 75` crore <br/> `{:(,"(<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. in crores)"),("<a href="https://interviewquestions.tuteehub.com/tag/full-1001178" style="font-weight:bold;" target="_blank" title="Click to know more about FULL">FULL</a> employment level of Y","=800"),("Actual level of Y","=500"),("<a href="https://interviewquestions.tuteehub.com/tag/desired-949427" style="font-weight:bold;" target="_blank" title="Click to know more about DESIRED">DESIRED</a> increase in Y",barul"=Rs. 300"):}`</body></html> | |
| 131. |
Two - sector economy consists of : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/households-1030263" style="font-weight:bold;" target="_blank" title="Click to know more about HOUSEHOLDS">HOUSEHOLDS</a>, <a href="https://interviewquestions.tuteehub.com/tag/firms-989820" style="font-weight:bold;" target="_blank" title="Click to know more about FIRMS">FIRMS</a><br/>Firms, Foreign sector<br/>Households, Government<br/>Firms, Government</p>Solution :A. Two - sector <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a> <a href="https://interviewquestions.tuteehub.com/tag/consists-930075" style="font-weight:bold;" target="_blank" title="Click to know more about CONSISTS">CONSISTS</a> of Households, firms.</body></html> | |
| 132. |
Give reasons for the following statements :(i) Demand for salt is highly inelastic.(ii) Consumer's expenditure on milk rises with an increase in the price of milk.(iii) A household's budget on entertainment make its elasticity equal to unity. |
| Answer» <html><body><p></p>Solution :(i) Demand for <a href="https://interviewquestions.tuteehub.com/tag/salt-1193804" style="font-weight:bold;" target="_blank" title="Click to know more about SALT">SALT</a> is highly inelastic because of the following two reasons :<br/>(a) Smaller proportion of total income is spent on the consumption of this commodity.<br/>(b) There are no substitutes <a href="https://interviewquestions.tuteehub.com/tag/available-888895" style="font-weight:bold;" target="_blank" title="Click to know more about AVAILABLE">AVAILABLE</a> of this commodity which is otherwise a necessity. <br/> (ii) An increase in the price of milk will compel a househod to spend more money on milk since its consumption cannot be reduced significantly.<br/>(iii) Normally, <a href="https://interviewquestions.tuteehub.com/tag/every-976721" style="font-weight:bold;" target="_blank" title="Click to know more about EVERY">EVERY</a> househould has a fixed budget to spend on entertainment. It adjusts the quantity demanded to different <a href="https://interviewquestions.tuteehub.com/tag/prices-1165311" style="font-weight:bold;" target="_blank" title="Click to know more about PRICES">PRICES</a>. At different prices, total <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> remains unchanged.</body></html> | |
| 133. |
Differentiate between gross domestic product at market price and national income. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ECO_XII_U05_C03_E01_071_S01.png" width="80%"/></body></html> | |
| 134. |
Which of the followingstatements is true ? |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/fiscal-991009" style="font-weight:bold;" target="_blank" title="Click to know more about FISCAL">FISCAL</a> deficit is the difference between total expenditure and total <a href="https://interviewquestions.tuteehub.com/tag/receipts-1179271" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPTS">RECEIPTS</a> . <br/>Primary deficit is the difference between total receipt and <a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> payments . <br/>Fiscal deficit is the sum of primary deficit and interest payment. <br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :C</body></html> | |
| 135. |
What is Repo Rate? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Reporate istherate atwhichthe central banksof a countrylendsmoney to commercial <a href="https://interviewquestions.tuteehub.com/tag/banks-393664" style="font-weight:bold;" target="_blank" title="Click to know more about BANKS">BANKS</a> in the event of any <a href="https://interviewquestions.tuteehub.com/tag/shortfall-1206359" style="font-weight:bold;" target="_blank" title="Click to know more about SHORTFALL">SHORTFALL</a> of <a href="https://interviewquestions.tuteehub.com/tag/funds-466944" style="font-weight:bold;" target="_blank" title="Click to know more about FUNDS">FUNDS</a>.</body></html> | |
| 136. |
The price of a commodity rises from 5rs per unit to 6rs per unit. Consequently, its supply increases by 20% . Comment on PES. |
| Answer» <html><body><p></p>Solution :We have, <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/FM_M_ECO_XII_P1_C07_E02_063_S01.png" width="80%"/> <br/> <a href="https://interviewquestions.tuteehub.com/tag/percentage-13406" style="font-weight:bold;" target="_blank" title="Click to know more about PERCENTAGE">PERCENTAGE</a> change in price =`(DeltaP)/(P)<a href="https://interviewquestions.tuteehub.com/tag/xx100-3292680" style="font-weight:bold;" target="_blank" title="Click to know more about XX100">XX100</a>=(1)/(5)xx100=20%` <br/> PES `=("Percentage change in <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> supplied")/("Percentage change in price")` <br/> `=(20%)/(20%)=1` <br/> PES `=1` [Unitary Elastic supply]</body></html> | |
| 137. |
Classify the following as intermediate goods or final goods : Construction of houses by the consumer households. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/final-461168" style="font-weight:bold;" target="_blank" title="Click to know more about FINAL">FINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a></body></html> | |
| 138. |
The part of profits which is distributed among shareholders as per the ratio of their shareholding is called ______. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/dividend-957360" style="font-weight:bold;" target="_blank" title="Click to know more about DIVIDEND">DIVIDEND</a></body></html> | |
| 139. |
Recentlytherehas beena drasticfallin priceofcrudeoilin theinternationalmarket. Howfar it willadverselyaffectindia 'sexportofgoodsandservies? Whatvalue isviolatedif theovt. Doesnotreducethe priceofcrudeoilin thecontry? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :A drasticfall inpriceof curdeoil <a href="https://interviewquestions.tuteehub.com/tag/withnot-2335749" style="font-weight:bold;" target="_blank" title="Click to know more about WITHNOT">WITHNOT</a> onlyimpactoilproducingeconimies, butalsoindianeconomyasfarindia's <a href="https://interviewquestions.tuteehub.com/tag/exports-980785" style="font-weight:bold;" target="_blank" title="Click to know more about EXPORTS">EXPORTS</a> are concernedA . <a href="https://interviewquestions.tuteehub.com/tag/fallin-459162" style="font-weight:bold;" target="_blank" title="Click to know more about FALLIN">FALLIN</a> thepriceofcrudeoilwouldlead to a drasticfall in thelevelof incomeofoilproducingconutrices towhichindia has beenexporting goodsandsevices As .a resultdemandfor importofforeigingoodsby theseconuntriceswillfallwhichwilladverselyaffectindia 'sexportof goodsandsevices .<br/> Valuesviolated-(i)<a href="https://interviewquestions.tuteehub.com/tag/socialresponsibility-1215270" style="font-weight:bold;" target="_blank" title="Click to know more about SOCIALRESPONSIBILITY">SOCIALRESPONSIBILITY</a>(ii)Fairdealings</body></html> | |
| 140. |
What is monetary policy? State any three instruments of monetary policy. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/policy-602125" style="font-weight:bold;" target="_blank" title="Click to know more about POLICY">POLICY</a> adopted by the Central Bank of an economy in the direction of credit control or money supply is known as Monetary Policy. Instruments of Monetary Policy are Bank Rate, Repo Rate, <a href="https://interviewquestions.tuteehub.com/tag/reverse-1188140" style="font-weight:bold;" target="_blank" title="Click to know more about REVERSE">REVERSE</a> Repo Rate, Cash Reserve Ratio. (Any <a href="https://interviewquestions.tuteehub.com/tag/three-708969" style="font-weight:bold;" target="_blank" title="Click to know more about THREE">THREE</a>)</body></html> | |
| 141. |
Foreign Investments are recorded In Capital account of BOP. |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a> because they affect <a href="https://interviewquestions.tuteehub.com/tag/foreign-995515" style="font-weight:bold;" target="_blank" title="Click to know more about FOREIGN">FOREIGN</a> assets and foreign liabilities of a <a href="https://interviewquestions.tuteehub.com/tag/country-936956" style="font-weight:bold;" target="_blank" title="Click to know more about COUNTRY">COUNTRY</a> during a <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a>.</body></html> | |
| 142. |
In an economy, investment expenditure is increased by 700 crore and MPC is 0.9. Calculate total increase in income and consumption expenditure |
| Answer» <html><body><p></p>Solution :`<a href="https://interviewquestions.tuteehub.com/tag/k-527196" style="font-weight:bold;" target="_blank" title="Click to know more about K">K</a>=(1)/(1-MPC)=(1)/(1-0.9)=(1)/(0.1)=(1)/(1//<a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>)=10` <br/> Total <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in income=Increase in investment`xxK` <br/> =`700xx10=7000crore` <br/> Total increase in consupmtion expenditure=0.9 of <a href="https://interviewquestions.tuteehub.com/tag/7000brbr-1917317" style="font-weight:bold;" target="_blank" title="Click to know more about 7000">7000</a> <br/> `=(9)/(10)=7000=6300crore`</body></html> | |
| 143. |
What is ex-ante consumption ? Distinguish between autonomous consumption and induced consumption. |
| Answer» <html><body><p></p>Solution :Ex-ante consumption <a href="https://interviewquestions.tuteehub.com/tag/refers-1181652" style="font-weight:bold;" target="_blank" title="Click to know more about REFERS">REFERS</a> to the consumption expenditure planned to be incurred during a peroid. Autonomous Consumption refers to the consumption expenditure which does not <a href="https://interviewquestions.tuteehub.com/tag/depend-948478" style="font-weight:bold;" target="_blank" title="Click to know more about DEPEND">DEPEND</a> upon the level of <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a>, i.e. the consumption at zero level of income. <br/> Whereas, Induced Consumption expenditure is <a href="https://interviewquestions.tuteehub.com/tag/directly-955045" style="font-weight:bold;" target="_blank" title="Click to know more about DIRECTLY">DIRECTLY</a> determined by the level of income.</body></html> | |
| 144. |
Urban areas of India suffer most from : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/open-586655" style="font-weight:bold;" target="_blank" title="Click to know more about OPEN">OPEN</a> unemployment<br/>Seasonal unemployment<br/>Disguised unemployed<br/>None of the above.</p>Answer :A</body></html> | |
| 145. |
How is currency issued in india ? |
| Answer» <html><body><p></p>Solution :Currency in india is issued onthe basis of Minium Reserve <a href="https://interviewquestions.tuteehub.com/tag/system-1237255" style="font-weight:bold;" target="_blank" title="Click to know more about SYSTEM">SYSTEM</a> .RBI has to maintain a minimum reserve of 200 crore in the form of <a href="https://interviewquestions.tuteehub.com/tag/gold-1008823" style="font-weight:bold;" target="_blank" title="Click to know more about GOLD">GOLD</a> and foregn securities .Out of this reserve,<a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of gold must be <a href="https://interviewquestions.tuteehub.com/tag/115-268597" style="font-weight:bold;" target="_blank" title="Click to know more about 115">115</a> crore<br/> Currency issued by RBI is inconveritble i.e currency issued by RBI is not converitble into gold . <br/> All notes except one rupee notes are issued by RBI. <br/> One rupee note and all the <a href="https://interviewquestions.tuteehub.com/tag/coins-421868" style="font-weight:bold;" target="_blank" title="Click to know more about COINS">COINS</a> are issued by (minstry of finance) Govt of India .However, putting all currency notes and coins in to circualtion , is done by RBI.</body></html> | |
| 146. |
Identify the missing item in the following expression : …………… = Fiscal Deficit - Interest Payments |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> deficit <br/><a href="https://interviewquestions.tuteehub.com/tag/primary-1165403" style="font-weight:bold;" target="_blank" title="Click to know more about PRIMARY">PRIMARY</a> Deficit <br/>Both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>) <br/><a href="https://interviewquestions.tuteehub.com/tag/neither-1113494" style="font-weight:bold;" target="_blank" title="Click to know more about NEITHER">NEITHER</a> (a) nor (b) </p>Answer :B</body></html> | |
| 147. |
Money supply includes demand deposits of the pople with the commerical banks. |
| Answer» <html><body><p><br/></p>Answer :True because the <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> <a href="https://interviewquestions.tuteehub.com/tag/deposits-948691" style="font-weight:bold;" target="_blank" title="Click to know more about DEPOSITS">DEPOSITS</a> of the people with <a href="https://interviewquestions.tuteehub.com/tag/commercial-923169" style="font-weight:bold;" target="_blank" title="Click to know more about COMMERCIAL">COMMERCIAL</a> <a href="https://interviewquestions.tuteehub.com/tag/banks-393664" style="font-weight:bold;" target="_blank" title="Click to know more about BANKS">BANKS</a> is one of the components of money <a href="https://interviewquestions.tuteehub.com/tag/supply-1235254" style="font-weight:bold;" target="_blank" title="Click to know more about SUPPLY">SUPPLY</a>.</body></html> | |
| 148. |
Explain the "bankers' bank" function of the central bank. |
| Answer» <html><body><p></p>Solution :Central <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> <a href="https://interviewquestions.tuteehub.com/tag/keeps-1063393" style="font-weight:bold;" target="_blank" title="Click to know more about KEEPS">KEEPS</a> the cash balances of commercial banks and issues loans to them on requirements, in the same manner as the commercial banks do for its customers. A Central Bank has almost the same <a href="https://interviewquestions.tuteehub.com/tag/relation-1183220" style="font-weight:bold;" target="_blank" title="Click to know more about RELATION">RELATION</a> with the other commercial banks of the country that the commercial banks have with the common public. That is why, the Central Bank is <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> <a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a> as bankers’ bank.</body></html> | |
| 149. |
A doctor has a private clinic in New Delhi and his annual earnings are Rs. 10 lackh. If he works in a governmenthospital in New Delhi, his annual earning will be Rs. 8 lakh. What is the opportunity cost of having a clinic in New Delhi? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :The opportunity cost of opening a clinic in <a href="https://interviewquestions.tuteehub.com/tag/new-1114486" style="font-weight:bold;" target="_blank" title="Click to know more about NEW">NEW</a> Delhi is Rs. 8 <a href="https://interviewquestions.tuteehub.com/tag/lakh-1065695" style="font-weight:bold;" target="_blank" title="Click to know more about LAKH">LAKH</a>, that he could have earned in the next best alternative <a href="https://interviewquestions.tuteehub.com/tag/use-1441041" style="font-weight:bold;" target="_blank" title="Click to know more about USE">USE</a>, by <a href="https://interviewquestions.tuteehub.com/tag/working-1459914" style="font-weight:bold;" target="_blank" title="Click to know more about WORKING">WORKING</a> in a government hospital in New Delhi.</body></html> | |
| 150. |
Why are taxes received by government not capital receipts ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/taxes-1239736" style="font-weight:bold;" target="_blank" title="Click to know more about TAXES">TAXES</a> received by government are not capital receipts because they neither <a href="https://interviewquestions.tuteehub.com/tag/create-427332" style="font-weight:bold;" target="_blank" title="Click to know more about CREATE">CREATE</a> any liability nor cause a <a href="https://interviewquestions.tuteehub.com/tag/reduction-621019" style="font-weight:bold;" target="_blank" title="Click to know more about REDUCTION">REDUCTION</a> in the assets of the government .</body></html> | |