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 Indian Economy Questions

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Q:

The SLR is determined by the RBI. SLR stands for

A) States Leverage Return B) Savings Lease Rate
C) Statutory Liquidity Ratio D) Safe Legal Range
 
Answer & Explanation Answer: C) Statutory Liquidity Ratio

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Q:

Insure payment of minimum wages for tea leave pickers

A) will improve quality of tea. B) will reduce unemployment of tea leave pickers.
C) decreases unemployment. D) will increase picking cost for all tea companies.
 
Answer & Explanation Answer: D) will increase picking cost for all tea companies.

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Q:

The law of demand states that

A) if the price of a good increases, the demand for that good decreases. B) if the price of a good increases, the the demand for that good increases.
C) if the price of a good increases, the quantity demanded of that good decreases. D) if the price of a good increases, the quantity demanded of that good increases.
 
Answer & Explanation Answer: C) if the price of a good increases, the quantity demanded of that good decreases.

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Q:

Under GST regime, in ‘Composition Scheme’, taxpayers have to fill returns ______.

A) Monthly B) Half-yearly
C) Quarterly D) Bi-Monthly
 
Answer & Explanation Answer: C) Quarterly

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Q:

Management accountants would not

A) prepare reports primarily for external users. B) be concerned with the impact of cost and volume on profits
C) assist in budget planning. D) determine cost behavior.
 
Answer & Explanation Answer: A) prepare reports primarily for external users.

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Q:

If quantity of good X demanded increases from 4000 units to 5000 units when price of good Y increases from Rs 75 to Rs 90, find Arc Cross elasticity of demand?

A) 0.55 B) 1.66
C) 0.25 D) 1.22
 
Answer & Explanation Answer: D) 1.22

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Q:

Which is the form of market where there is lack of competition?

A) Monopoly B) Oligopoly
C) Perfect competition D) Marketisation
 
Answer & Explanation Answer: A) Monopoly

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Q:

The Certificate of Deposit (CD) is a negotiable money market instrument and issued in the form of?

A) Derivative Usance Promissory Note B) Usance Promissory Note
C) Demand Promissory Note D) Both a & b
 
Answer & Explanation Answer: B) Usance Promissory Note

Explanation:

The Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for a specified time period. (Usance Promissory Note has to be paid after certain time period).

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