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Consider the following actions which the Government can take :
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI, more funds from FIIs.
Which of the above action/actions can help in reducing the current account deficit?
UPSC 2011
1 and 3
3 only
2 and 3
1, 2 and 3
Regarding International Monetary Fund, which one of the following statements is correct?
UPSC 2011
It can grant loans to any country
It can grant loans to only developed countries
It grants loans to only member countries
None of the above
Which of the following can aid in furthering the Government’s objective of inclusive growth?
1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the Correct answer using the codes given below :
UPSC 2011
1 only
1 and 2 only
2 and 3 only
1, 2 and 3
A rapid increase in the rate of inflation is sometimes attribute to the “base effect”. What is “base effect”?
UPSC 2011
It is the impact of drastic deficiency in supply due to failure of crops
lt is the impact of the surge in demand due to rapid economic growth
It is the impact of the price levels of previous year on the calculation of inflation rate
None of the statements (a), (b) and (c) given above is correct in this context
India is regarded as a country with "Demographic Dividend". This is due to
UPSC 2011
Its high population in the age group below 15 years
ts high population ni the age group of 15-64 years
Its high population in the age group above 65 years
None of the above
Which one of the following is not a feature of “Value Added Tax”?
UPSC 2011
It is a multi-point destination-based system of taxation
It is a tax levied on value addition at each stage of transaction ni the production-distribution chain
It is a tax on the final consumption
uf goods or services and must
ultimately be borne by the consumer
It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation
A “closed economy” is an economy is which
UPSC 2011
the money supply is fully controlled
deficit financing takes place
only exports take place
neither exports nor imports take place
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two ?
UPSC 2011
FlI helps bring better management skills and technology, while FDI only brings in capital
FIl helps in increasing capital availability in general, while FDI only targets specific sectors
FDI flows only into the secondary market, while FIl targets primary market
FIl is considered to be more stable than FDI
With reference to “Aam Admi Bima Yojana”, consider the following statements:
1. The member insured under the scheme must be the head of the family or an earning member of the family in a rural landless household.
2. The member insured must be in the age group of 30 to 65 years.
3. There is a provision for free scholarship for up to two children of the insture who are studying between classes 9 and 12.
Which of the statements given above is/are correct?
UPSC 2011
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
With what purpose is the Government of India promoting the concept of “Mega Food Parks”?
1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.
Select the correct answer using the codes given below :
UPSC 2011
1 only
2 and 3 only
1 and 2 only
1, 2 and 3
Microfinance is the provision of financial service to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are :
1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities
Select the correct answer using the codes gives below the lists:
UPSC 2011
1 only
2 and 3 only
1 and 4 only
1, 2, 3 and 4
Among the following who are eligible to benefit from the "Mahatma Gandhi National Rural Employment Guarantee Act"?
UPSC 2011
Adult members of only the scheduled caste and scheduled tribe households
Adult members of below poverty line (BPL) households
Adult members of households of al backward communities
Adult members of any household
With reference to the Finance Commission of India, which of the following statements is correct?
UPSC 2011
It encourages the inflow of foreign capital for infrastructure development.
It facilitates the proper distribution of finances among the Public Sector Undertakings.
It ensures transparency in financial administration.
None of the above
What is the difference between “vote on account” and “interim budget”?
1. The provision of a “vote-on-account” is used by a regular Government, while an “interim budget” is a provision used by a caretaker Government.
2. A “vote-on-account” only deals with the expenditure in Government’s budget, while an “interim budget” includes both expenditure and receipts.
Which of the statements given above is/are correct?
UPSC 2011
Only 1
Only 2
Both 1 and 2
Neither 1 nor 2
Why is the offering of “teaser loans” by commercial banks a cause of economic concern ?
1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/are correct?
UPSC 2011
Only 1
Only 2
Both 1 and 2
Neither 1 nor 2
In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
UPSC 2011
Commercial Banks
Cooperative Banks
Regional Rural Banks
Microfinance Institutions
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ?
1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
2. The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct?
UPSC 2011
Only 1
Only 2
Both 1 and 2
Neither 1 nor 2
Economic growth is usually coupled with
UPSC 2011
Deflation
Inflation
Stagflation
Hyperinflation
The lowering of Bank Rate by the Reserve Bank of India leads to
UPSC 2011
More liquidity in the market
Less liquidity in the market
No change in the liquidity in the market
Mobilization of more deposits by commercial banks
Which one of the following statements appropriately describes the 'fiscal stimulus'?
UPSC 2011
It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.
It is an intense affirmative action of the Government to boost economic activity in the country.
It is Government's intensive action of financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.
It is an extreme affirmative action by the government to pursue its policy of financial inclusion.
