Economy

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Which one of the following is likely to be the most inflationary in its effect?
Repayment of public debt
no
Borrowing from the public to finance a budget deficit
no
Borrowing from banks to finance a budget deficit
no
Creating new money to finance a budget deficit
yes
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Which of the following organizations brings out the publication known as ‘World Economic Outlook’?
The International Monetary Fund
yes
The United Nations Development Programme
no
The World Economic Forum
no
The World Bank
no
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A rise in general level of prices may be caused by

1. An increase in the money supply
2. A decrease in the aggregate level of output
3. An increase in the effective demand

Select the correct answer using the codes given below.

1 only
no
1 and 2 only
no
2 and 3 only
no
1, 2 and 3
yes
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With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Right

Select the correct answer using the code given below.
1 only
no
2 and 3
no
1 and 3
yes
1, 2 and 4
no
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Which of the following is the chief characteristic of 'mixed farming'?
Cultivation of both cash crops and food crops
no
Cultivation of two or more crops in the same field
no
Rearing of animals and cultivation of crops together
yes
None of the above
no
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Which of the following can be said to be essentially the parts of Inclusive Governance?

1. Permitting the Non-Banking Financial Companies to do banking 
2. Establishing effective District Planning Committees in all the districts 
3. Increasing the government spending on public health 
4. Strengthening the Mid-day Meal Scheme 

Choose the correct answer: 
1 and 2 only
no
3 and 4 only
no
2, 3 and 4 only
yes
1, 2, 3 & 4
no
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Consider the following statements:

1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?
1 only
yes
2 only
no
Both 1 and 2
no
Neither 1 nor 2
no
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Which one of the following groups of items is included in India’s foreign-exchange reserves?
Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
no
Foreign-currency assets, gold holdings of the RBI and SDRs
yes
Foreign-currency assets, loans from the World Bank and SDRs
no
Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
no
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The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following? 
1. Other banks retain their deposits with the RBI. 
2. The RBI lends funds to the commercial banks in times of need. 
3. The RBI advises the commercial banks on monetary matters. 

Select the correct answer using the codes given below:

2 & 3 Only
no
1 & 2 Only
yes
1 & 3 Only
no
1, 2 & 3
no
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What does venture capital mean?
A short-term capital provided to industries
no
A long-term start-up capital provided to new entrepreneurs
yes
Funds provided to industries at times of incurring losses
no
Funds provided for replacement and renovation of industries
no
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