Economic and Social Development

Economic and Social Development

Economic and Social Development
| Balance of Payments | | Government Budget and the Economy | | Determination of Income and Employment | | Money and Banking | | National Income and Related Aggregates | | Forms of Market and Price Determination | | Producer Behaviour and Supply | | Consumers Equilibrium and Demand | | Development Experience Of India a Comparison with Neighbors | | Inflation: Problem and Policies | | Environment Sustainable Economic Development | | Economics Infrastructure | | Employment Growth Informational and other Issues | | Rural Development | | Human Capital Formation in India | | Poverty | | Economic Reforms Since 1991 | | Indian Economy 1950 to 1990 | | Indian Economy on the Eve of Independence | | Introduction to Index Number | | Correlation | | Measures of Dispersion | | Measures of Central Tendency | | Presentation of Data | | Organisation of Data | | Collection of Data | | Introduction to Economics |
Q.1
The demand curve for foreign exchange is
A. Vertical
B. Upward sloping
C. Horizontal
D. Downward sloping
Answer : Option D
Explaination / Solution:
No Explaination.


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Q.2
If domestic autonomous demand increases by 100, in a closed economy output will increase by
A. 500.0
B. 700
C. 600
D. 800
Answer : Option A
Explaination / Solution:
No Explaination.


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Q.3
Managed floating exchange rate is a system in which the
A. the Government allow the exchange rate to determined by market forces
B. None of the above
C. the central bank allow the exchange rate to determined by market forces
D. the central bank or Government allow the exchange rate to determined by market forces
Answer : Option D
Explaination / Solution:

Managed flow regeime is the current international finance environment in which exchange rates fluctuate from day to day, but central banks attempt to influence their countries' exchange rates by buying and selling currencies. It is also known as a dirty flow. In an increasingly integrated world economy, the currency rates impact any given country's economy through the trade balance. In this aspect, almost all currencies are managed since central bank or government intervene to influence the value of their currencies.

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Q.4
Foreign exchange rate of a country is the
A. price of a foreign good in terms of the domestic good
B. price of a foreign factor in terms of the domestic factor
C. price of a foreign trade in terms of the domestic trade
D. price of a foreign currency in terms of the domestic currency
Answer : Option D
Explaination / Solution:

Foreign exchange rate defines the price of currency of domestic country in terms of foreign currency

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Q.5
Point out a merit of flexible exchange rate
A. Eliminates undervaluation of currencies only
B. Eliminates overvaluation of currencies only
C. None
D. Eliminates overvaluation or undervaluation of currencies
Answer : Option D
Explaination / Solution:

Flexible exchange rate is determined by the forces of demand and supply i.e. where demand equals supply eliminating the undervaluation or overvaluation of currencies.

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Q.6
A disequilibrium in Balance of payment can be corrected by
A. Promoting entrepot trade
B. Promoting exports
C. None of the above
D. Promoting imports
Answer : Option B
Explaination / Solution:
No Explaination.


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Q.7
One of the other two components of Capital budget are
A. Budget Expenditure
B. Investment Expenditure
C. Capital expenditure
D. Income budget
Answer : Option C
Explaination / Solution:
No Explaination.


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Q.8
Indirect tax is a tax whose
A. The liability to pay and incidence do lie on the same person
B. The liability to pay lies on one and incidence lies on the other person
C. The liability to pay and incidence do lie on the government
D. The liability to pay and incidence do not lie on the same person
Answer : Option A
Explaination / Solution:
No Explaination.


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Q.9
transfer payment is a
A. Capital Expenditure
B. Revenue Receipts
C. Revenue Expenditure
D. Capital Receipts
Answer : Option C
Explaination / Solution:
No Explaination.


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Q.10
Which of the following is a budget type?
A. Deficit budget
B. Surplus budget
C. Balanced budget
D. All of them
Answer : Option D
Explaination / Solution:
No Explaination.


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