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 Indian Economy Questions

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Q:

If Money supply growth is faster than real GDP growth, it results in _____.

A) Inflation B) deflation
C) budget surplus D) budget deficit
 
Answer & Explanation Answer: A) Inflation

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Q:

In October 2017, SEBI directed the stock exchanges to impose how much fine/penalty on those companies which do not comply with the minimum public shareholding norms?

A) Rs 5000 per day B) Rs 12,000 per day
C) Rs 15,000 per day D) Rs 20,000 per day
 
Answer & Explanation Answer: A) Rs 5000 per day

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Q:

Which of the following best defines free trade?

A) Imports are discouraged B) There are no restrictions on exports and imports  
C) There are no duties levied on export   D) Imported goods are made duty free  
 
Answer & Explanation Answer: B) There are no restrictions on exports and imports  

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Q:

An exculpatory clause is generally unenforceable when

A) it involves public transportation. B) it attempts to release a party from liability for ordinarily negligent behavior.
C) it is written clearly and in bold, large print. D) the affected activity is a recreational activity.
 
Answer & Explanation Answer: A) it involves public transportation.

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Q:

Expenses are recognized when

A) they are paid. B) they contribute to the production of revenue.
C) the invoice is received. D) they are billed by the supplier.
 
Answer & Explanation Answer: B) they contribute to the production of revenue.

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Q:

Government borrowing to finance budget deficits _____.

A) will exert downward pressure on interest rates B) will have no effect on interest rates
C) will increase supply of loanable funds D) will put upward pressure on interest rates
 
Answer & Explanation Answer: D) will put upward pressure on interest rates

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Q:

If an unintended increase in business inventories occurs

A) aggregate expenditures must exceed the domestic output B) we can expect businesses to lower the level of production
C) we can expect aggregate production to be unaffected D) we can expect businesses to increase the level of production
 
Answer & Explanation Answer: B) we can expect businesses to lower the level of production

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Q:

An indifference curve measures the same level of ___________

A) Output from two factors B) Satisfaction from two commodities
C) Satisfaction from Income and Capital D) Satisfaction from expenditure and savings
 
Answer & Explanation Answer: B) Satisfaction from two commodities

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