Q202.Which of the following deficit gives major contribution to total deficit of Government of India?
Correct answer: Fiscal deficit
Q203.Under free exchange market the rate of foreign exchange is determined by
Correct answer: Purchasing Power Parity Theory
Q204.In the Union Budget in India, which one of the following is the largest in amount?
Correct answer: Revenue Expenditure
Q205.The development is
Correct answer: reduction in the value of currency in terms of gold
Q206.What is the effect of deficit financing on economy?
Correct answer: Increase in money supply
Q207.Which of the following authority sanctions foreign exchange for import of goods?
Correct answer: Reserve Bank of India
Q208.Consider the following. 1. Market borrowing 2. Treasury bills 3. Special securities issued to RBI Which of these is/are component(s) of internal debt?
Correct answer: 1, 2 and 3
Q209.The term ‘Paper Gold’ means
Correct answer: special drawing rights of the I.M.F.
Q210.With reference to the Indian Public Finance, consider the following statements. 1. External liabilities reported in the Union Budget are based on historical exchange rates. 2. The continued high borrowing has kept the real interest rates high in the economy. 3. The upward trend in the ratio of Fiscal deficit of GDP a recent years has an adverse effect on private investment. 4. Interest payment is the single largest component of the nonplan revenue expenditure of the Union Government. Which of these statements are correct?
Correct answer: 2, 3 and 4
Q211.India, Foreign Investment Promotion Board now works under
Correct answer: Ministry of Finance
Q212.A country is said to be a debt trap if
Correct answer: it has to borrow to make interest payments on outstanding loans
Q213.The Forex Reserve in India have been witnessing continuous growth due to following reasons. 1. Rise in FDI inflows 2. Gifts from Foreign Countries 3. High interest regime in the country 4. Huge inflows of FIIs funds 5. Remittances from Indians working abroad Select the correct answer from the given codes.
Correct answer: 1, 3, 4, 5
Q214.A larger part of the fiscal deficit in the Union Budgets is filled by
Correct answer: Printing paper currency
Q215.Consider the following statements and choose the correct answer with the help of codes given. Assertion (A): In the recent past, there has been a significant increase in foreign exchange reserve of India. Reason (R): Invisible exports have been much higher than invisible imports in terms of dollars. Code
Correct answer: Both (A) and (R) are true and (R) is the correct explanation of
Q216.As compared to revenue deficit, fiscal deficit will always remain
Correct answer: higher
Q217.Which of the following statements is correct about the Balance of Trade of India?
Correct answer: India’s trade balance remained negative for the entire period from 1949-50 to 2015-16 except two year 1972-73 and 1976-77, when it was positive
Q218.What was the estimated social sector expenditure in budget 2018- 19?
Correct answer: 1.38 lakh crore
Q219.India’s Trade Policy (2009-14) seeks to 1. Double the country’s share of global trade by 2020. 2. Achieve a growth of 25 percent per annum in exports 3. Double Indian exports of goods and services by 2015 Choose the correct statements.
Correct answer: 1, 2 and 3
Q220.Which one of the following is not included in the revenue account of Union Budget?
Correct answer: Small saving
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01
General practice
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