IASbaba's Flagship Course: Integrated Learning Programme (ILP) - 2024 Read Details
Click here to get all the Tests- Archives
Hello Friends
Hope you are enjoying Daily questions. The link for Day 21 solution is active now.
Why we asked you to comment?
Now go back to check your answers that you posted with honest effort. Edit your answers with marks. Everyday like this you can self monitor your progress for all 60 days.
Accountability to self is the only way for success
IASbaba '60 Day Plan' - Prelims Test 2016 [Day 22]
Q.1) Which of the following are correct w.r.t. Asset Reconstruction Companies?
Select the correct answer
a) 1 only
b) 2 only
c) 2 and 3 only
d) All of the above
Q.2) Which of the following are correct about Monetary Policy?
Select the correct answer
a) 1 and 3 only
b) 1 and 4 only
c) 3 and 4 only
d) All of the above
Q.3) Consider the following statements about Cash Reserve Ratio:
Which of the above statements are correct?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) None of the above
Q.4) Which of the following is incorrect about Bank rate?
a) It is rate at which RBI lends long term to commercial banks.
b) It requires collateral security like in case of repo-reverse repo rate.
c) It is a penal rate and is aligned with MSF in 2011.
d) Lower bank rates can help to expand the economy, when unemployment is high, by lowering thecost of funds for borrowers.
Q.5) Consider the following about ready forward contracts.
Select the correct answer:
a) 1 and 3 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 3 and 4 only
Q.6) Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Which of the following is incorrect about MSF?
a) MSF is a penal rate as the repo limit is exhausted and also SLR limit is breached at times.
b) MSF operations also become necessary as the repo operations are limited to a specific period of the day.
c) Only scheduled commercial banks can use this route with government securities including SLR as collateral.
d) If banks do not have excess SLR it cannot borrow under MSF.
Q.7) Consider the following about SLR. Which of the following are correct?
Select the correct answer:
a) 1 only
b) 1 and 2 only
c) 1, 2 and 3 only
d) All of the above.
Q.8) Consider the following about SLR and CRR.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.9) Which of the following is incorrect about qualitative and quantitative methods used by RBI to control credit supply?
a) Qualitative method controls the manner of channelizing cash and credit in the economy.
b) Qualitative method restricts credit for certain section and expands for others depending on the erstwhile situation
c) Marginal requirement is increased for those business activities where the flow of credit is to be restricted and hence a quantitative method.
d) Under rationing of credit RBI fixes ceiling of credit setting a limit to the loans and advances that can be made to particular sector is a qualitative method.
Q.10) Consider the following about Market Stabilization scheme.
Select the correct answer
a) 1 only
b) 2 only
c) 1 and 3 only
d) All of the above
Q.11) Consider the following about fixed and floating interest rates.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.12) The Reserve Bank of India (RBI) constituted and Expert Committee to Revise and Strengthen the Monetary Policy Framework under the Chairmanship of Dr. Urjit R.Patel. Consider the following.
Select the correct answer:
a) 1 and 2 only
b) 1 and 3 only
c) 1, 2 and 3 only
d) 1, 2 and 4 only
Q.13) What is common for all the following?
Select the correct answer.
a) Capital and Current account convertibility.
b) Poverty alleviation
c) Public Debt management Agency
d) Categorisation of states for discretionary grants.
Q.14) Which of the following is incorrect about Public Debt Management Agency the government intends to set up?
a) Public Debt Management Agency (PDMA) is a specialized independent agency that manages the internal and external liabilities of the Central Government in a holistic manner and advises on such matters in return for a fee.
b) PDMA is considered to be set up with the objectiveof "maximising the cost of raising and servicing public debt over the long-term within an acceptable level of risk at all times, under the general superintendence of the central government".
c) An autonomous PDMA can be the catalyst for wider institutional reform, including building a government securities market, and bring in transparency about public debt.
d) Genesis of the thinking on an independent debt management office is traced back to the Committee on Capital Account Convertibility (1997) and the Review Group of Standing Committee on International Financial Standards & Codes (2004).
Q.15) Which of the following is not correctly matched?
a) Lakadwala – Poverty estimation
b) Justice R V Eshwar – Taxation
c) Kirit Parikh – Disinvestment
d) Urjit patel – Monetary Policy
Q.16) Consider the following about Phillips Curve.
Select the correct answer:
a) 1 and 2 only
b) 1 and 4 only
c) 2, 3 and 4 only
d) 1, 2, 3 and 4 only
Q.17) Consider the following.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.18) If deflation is general decline in prices caused by a reduction in the supply of money then which of the following is not the possible consequence of the same?
a) Demand from businesses and consumers to buy products falls
b) Employment growth rate stabilizes and is upward in trend
c) Debt servicing becomes more expensive
d) Governments can resort to tax cuts to boost demand from consumers and businesses
Q.19) Consider the following about inflation.
Select the correct answer:
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Q.20) Suppressed inflation adversely affects the economy. What are the probable consequences?
Select the correct answer:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3 only
Q.21) The “Nairobi Package” was adopted at the WTO's Tenth Ministerial Conference, held in Nairobi, Kenya. It contains a series of Ministerial Decisions on
Select the correct code
a) 1, 2, 3 and 5
b) 2, 3, 4 and 5
c) 1, 2, 3 and 4
d) 2, 3 and 5
Q.22) Consider the following statements regarding “Channapatana handcraft”
Select the correct code
a) 1, 2 , 3 and 4
b) Only 1
c) 1, 3 and 4
d) 1, 2 and 3
Q.23) In a major boost to the sustainable development of the Eastern Ghats, with special focus on its fragile environment, the United Nations University has sanctioned one more Regional Centre of Expertise (RCE) to India. What are the RCEs in India?
Select the correct code
a) 1, 2, 3, 4 and 6
b) 1, 2, 5 and 6
c) 2, 4 and 6
d) 1, 3, 4 and 5
Q.24) Consider the following with respect to Ganges River Dolphin
Select the correct answer using the codes given below
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All
Q.25) Consider the following lakes
Arrange the above lakes from West to East
a) 53124
b) 53134
c) 53214
d) 53241
Q.26) Consider the following countries
Which of the above is a Non EU country?
a) 1 and 2 only
b) 2 and 3 only
c) 3 only
d) All
Q.27) Consider the following statement with respect to SHILP SAMPADA
Select the correct answer
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) All
Q.28) Which of the following properties of light is observed in the phenomena of Rainbow Formation?
Select the correct answer using the options given below
a) 1,2,3 only
b) 2,3,4 only
c) 3 only
d) All of these
Q.29) According to RBI guidelines, Basel III norms are to be implemented by all banks till 2019. Consider the following statements:
Which of the above statements are correct?
a) 1,2 and 3
b) 2,3 and 4
c) 1,3 and 4
d) All of the above
Q.30) Consider the following statements:
Which of the above statements are correct?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Download the Solution– Click here
P.S- Attempt these questions within 20 minutes with full honesty and write your results in the comment box. Next day, come back and check your result. You can also discuss the important concepts and issues, in case of doubts (among peers)
All the best
IASbaba