1. If a price
increase of good A increases the quantity demanded of good B, then good B is a
A) Substitute
good
B) Complementary good
C) Bargain
D) Inferior good
2. An increase
in consumer income will increase demand for a _______ but decrease demand for a
_________
A) Substitute good, inferior good
B) Normal
good, inferior good
C) Inferior good, normal good
D) Normal good, complementary good
3. In an
oligopolistic or monopolistically competitive market, firms do not raise their
prices because even a small price increase will lose many customers. Which
among the following is the most suitable terms used for this concept?
A) Supracompetitive
pricing
B) Swing
Demand
C) Kinked Demand
D) Imperfect
competition
4. Gilt-edged
market means
A) Bullion
market
B) Market of government securities
C) Market of
guns
D) Market of
pure metals
5. Devaluation
of a currency means
A) Reduction in the value of a currency
vis-a-vis major internationally traded currencies
B) Permitting
the currency to seek its worth in the international market
C) Fixing
the value of the currency in conjunction with the movement in the value of a
basket of pre-determined currencies
D) Fixing
the value of currency in multilateral consultation with the IMF, the World Bank
and major trading partners
6. Why should
you care about inflation?
A) It affects your purchasing power
B) It can
affect the monthly payment on a fixed-rate mortgage
C) Because
proper tire pressure can reduce gas cost
D) All of
the above
7. Who controls
monetary policy in the United States?
A) The
President and the U.S. Treasury
B) Congress
C) Federal Reserve
D) None of the
above
8. Generally,
which is healthiest for the economy?
A) High
inflation
B) Low inflation
C) Deflation
D) None of
the above
9. What is the
overall measurement of a country's economic activity?
A) Consumer
confidence
B) General
debt productivity
C) Gross domestic product
D) Purchasing power parity
10. If all the
banks in an economy are nationalized and converted into a monopoly bank, the
total deposits
A) Will decrease
B) Will increase
C) Will neither increase nor decrease
D) None of
the above
11. The currency
convertibility concept in its original form originated in
A) Wells
Agreement
B) Bretton Woods Agreement
C) Taylors
Agreement
D) None of
the above
12. Price
ceilings are imposed increase price above the free market equilibrium price
A) TRUE
B) FALSE
13. When it
comes to your finances, rising interest rates are...
A) Good for
borrowers, bad for savers
B) Good for savers, bad for borrowers
14. In the
Industrial Policy of 1991, how many industries were reserved only for Public
Sector?
A) 7
B) 8
C) 11
D) 13
15. Which among
the following State/ UT / city has the highest per capita electricity
consumption in the country?
A) Puducherry
B) Delhi
C) Mumbai
D) Dadra & Nagar Haveli
16. Development
expenditure of the Central government does not include
A) Defence expenditure
B) Expenditure on economic services
C) Expenditure on social and community services
D) Grant to
states
17. When the
value of the Rupee rises, what does that mean for your personal finances?
A) Overseas
travel is less expensive
B) Imported
goods are cheaper
C) Your
foreign investments are worth less
D) All of the above
18. Our
financial system has provided for the transfer of resources from the centre to
the states; the important means of resource transfer are
A) Tax
sharing
B) Grant-in-aids
C) Loans
D) All the above
19. Excise duty
is a tax levied on the
A) Import of
goods
B) Export of
goods
C) Production of goods
D) Sale of
goods
20. Deficit
financing means that the government borrows money from the
A) RBI
B) Local bodies
C) Big businessmen
D) IMF
21. Indian banks
are required to maintain a certain ratio between their cash in the hand and
totals assets. This is called
A) Statutory
Bank Ratio (SBR)
B) Statutory Liquid Ratio (SLR)
C) Central
Bank Reserve (CBR)
D) Central
Liquid Reserve (CLR)
Take this final challenge for 2015-16 :)
Email your answers to profKMody@gmail.com by 28 February 2016
