Indian Economy Questions

Q:

What is a bank rate?

A) Rate at which Central bank of a country advances loans to other banks in the country B) Rate at which banks advance loans to the customers
C) Rate at which banks lend among themselves D) Rate at which banks lend to money lenders
 
Answer & Explanation Answer: A) Rate at which Central bank of a country advances loans to other banks in the country

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Q:

The short run marginal cost curve is ____ shaped.

A) U B) V
C) X D) W
 
Answer & Explanation Answer: A) U

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Q:

If the average total cost are Rs 54, total fixed cost is Rs 45000 and quantity produced is 2500 units, find the average variable costs (in Rs) of the firm?

A) 24 B) 18
C) 36 D) 60
 
Answer & Explanation Answer: C) 36

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Q:

Who presented the first Union budget of independent India?

A) Morarji Desai B) John Mathai
C) TT Krishnamachari D) RK Shanmukham Chetty
 
Answer & Explanation Answer: D) RK Shanmukham Chetty

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Q:

IMF has predicted that the global economy would grow at _______ % in 2017.

A) 5.5 B) 4.5
C) 3.5 D) 2.5
 
Answer & Explanation Answer: C) 3.5

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Q:

The number of days' sales uncollected is calculated by

A) Dividing accounts receivable by net sales and multiplying by 365. B) Dividing net sales by accounts receivable and multiplying by 365.
C) Dividing accounts receivable by net sales. D) Dividing net sales by accounts receivable.
 
Answer & Explanation Answer: A) Dividing accounts receivable by net sales and multiplying by 365.

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Q:

In general, elasticity is a measure of

A) how firms' profits respond to changes in market prices.  B) the extent to which advances in technology are adopted by producers.
C) how much buyers and sellers respond to changes in market conditions. D) the extent to which a market is competitive. 
 
Answer & Explanation Answer: C) how much buyers and sellers respond to changes in market conditions.

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Q:

Which of following is true if the Government monetized part of its deficit?

A) Money supply in the economy will increase. B) Interest rate will increase.
C) Government revenue will decrease. D) Government expenditure will increase.
 
Answer & Explanation Answer: A) Money supply in the economy will increase.

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