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 Indian Economy Questions

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Q:

Working capital is a measure of

A) liquidity B) consistency
C) profitability D) solvency
 
Answer & Explanation Answer: A) liquidity

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Q:

When the demand for a good increases with an increase in income, such a good is called_______

A) Superior good B) Giffin good
C) Inferior good D) Normal good
 
Answer & Explanation Answer: A) Superior good

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Q:

In a period when an economy is facing price rise, and along with that there is slowing down of economy activities, this is case of _________.

A) Deflation B) Stagflation
C) Recession D) Depression
 
Answer & Explanation Answer: B) Stagflation

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Q:

What does the term 'Call Money' refer to?

A) A loan made for a very short period of a few days or aweek B) Student loans to help cover the cost of highereducation
C) Loans to allow consumers to buy homes they can'tpay for upfront D) Personal loans for any personal expenses which don'thave a designated purpose
 
Answer & Explanation Answer: A) A loan made for a very short period of a few days or aweek

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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:

A manufacturer faces a -1.2 price elasticity of demand for its product. It is presently selling 7,500 units/day. If it wants to increase quantity sold by 9%, it must lower its price by

A) 7.5 percent B) 7.8 percent
C) 10.2 percent D) 10 percent
 
Answer & Explanation Answer: A) 7.5 percent

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Q:

India was able to achieve the fiscal deficit target for the Financial Year 2016-17. It was how much percent of GDP?

A) 3.50% B) 4.20%
C) 3.00% D) 2.50%
 
Answer & Explanation Answer: A) 3.50%

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Q:

Which of the following best describes monetary policy?

A) Managing the economy by controlling the money supply B) Determining the design printed on the national currency
C) Regulating transactions in the currency exchange market D) Raising and lowering the foreign exchange rate
 
Answer & Explanation Answer: A) Managing the economy by controlling the money supply

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