Indian Economy Questions

Q:

Lowering of value of currency relative to a foreign reference currency is called _________.

A) Devaluation B) Revaluation
C) Down valuation D) Negative valuation
 
Answer & Explanation Answer: A) Devaluation

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Q:

If the average total cost are Rs 54, average variable cost is Rs 36 and quantity produced is 2500 units, find the total fixed costs (in Rs) of the firm?

A) 30000 B) 15000
C) 45000 D) 60000
 
Answer & Explanation Answer: C) 45000

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Q:

Credit Rationing in India is done by

A) RBI B) SBI
C) LIC D) Finance Ministry
 
Answer & Explanation Answer: A) RBI

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Q:

Find the similarity among the following: Makar Sankranthi, Pongal, Lohri, Baisakhi

A) All are festivals of North India B) All are names of harvest festivals
C) All are festivals celebrated in the month of January D) There is no similarity at all
 
Answer & Explanation Answer: B) All are names of harvest festivals

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Q:

If the rupee depreciates, how the exporters are affected?

A) They are unaffected B) They are in loss
C) They are in profit D) They get credit crunch
 
Answer & Explanation Answer: C) They are in profit

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Q:

Which among the following sponsors Regional Rural Banks (RRB'S)?

A) Reserve Bank of India B) Foreign Banks
C) National Commercial Banks D) Co-Operative Banks
 
Answer & Explanation Answer: C) National Commercial Banks

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Q:

In which market form, a market or an industry is dominated by a single seller?

A) Oligopoly B) Monopoly
C) Duopoly D) Monopolistic Competition
 
Answer & Explanation Answer: B) Monopoly

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Q:

A binding price ceiling is designed to

A) keep prices low B) increase efficiency
C) increase the quality of the good D) prevent shortages
 
Answer & Explanation Answer: A) keep prices low

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