UPSC  Economics

31. Which of the following benefits from inflation?

Lender Borrower Both None

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32. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to ?

Export Import Production Consumption

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33. Which one of the following statements appropriately describes the "fiscal stimulus"?

It is a massive investment by the Government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth It is an intense affirmative action of the Government to boost economic activity in the country It is Government's intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation It is an extreme affirmative action by the Government to pursue its policy of financial inclusion

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34. Consider the following actions which the Government can take:
1.Devaluing the domestic currency.
2.Reduction in the export subsidy.
3.Adopting suitable policies which attract greater FDI and more funds from FIIs.
4.Which of the above action/actions can help in reducing the current account deficit?

1 and 2 2 and 3 3 only 1 and 3

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35. A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"?
(a.) It is the impact of drastic deficiency in supply due to failure of crops
(b.) It is the impact of the surge in demand due to rapid economic growth
(c.) It is the impact of the price levels of previous year on the calculation of inflation rate
(d.)None of the statements (a), (b) and (c) 'given above is correct in this context
Why is the offering of "teaser loans" by commercial banks a cause of economic concern?
1.The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2.In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
3.Which of the statements given above is/are correct?

1 only 2 only Both 1 and 2 Neither 1 nor 2

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36. In the context of Indian economy, consider the following statements :
1.The growth rate of GDP has steadily increased in the last five years.
2.The growth rate in per capita income has steadily increased in the last five years.
3.Which of the statements given above is/are correct?

1 only 2 only Both 1 and 2 Neither 1 nor 2

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37. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

Commercial Banks Cooperative Banks Regional Rural Banks Microfinance Institutions

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38. Economic growth is usually coupled with

Deflation Inflation Stagflation Hyperinflation

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39. The lowering of Bank Rate by the Reserve Bank of India leads to

More liquidity in the market Less liquidity in the market No change in the liquidity in the market Mobilization of more deposits by commercial banks

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40. Which one of the following is not a feature of "Value Added Tax"?

It is a multi-point destination-based system of taxation It is a tax levied on value addition at each stage of transaction in the production-distribution chain It is a tax on the final consumption of goods or services and must ultimately be borne by the consumer It is basically a subject of the Central Government and the State Governments are only a facilitator for its successful implementation

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