Daily GS Foundation MCQs - SthaapnaEconomy Previous Year QuestionsIAS Previous Year QuestionsSthaapana – January 2019Sthaapana – January 2019 – Week 5

IAS Previous Year ECONOMY Questions – Lecture – 12 – STHAAPNA Series

Sthapna - Static MCQs for GS - Subject - Daypyq12

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Q.1) Consider the following statements: (2007)

1.The repo rate is the rate at which other banks borrow from the Reserve Bank of India.

2.A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.

Which of the statements given above is/are correct?

a)1 only

b)2 only

c)Both 1 and 2

d)Neither 1 nor 2


Q.2) An increase in the Bank Rate generally indicates that the (2013)

a) market rate of interest is likely to fall

b)Central Bank is no longer making loans to commercial banks

c)Central Bank is following an easy money policy

d)Central Bank is following a tight money policy


Q.3) If the interest rate is decreased in an economy, it will (2014)

a)decrease the consumption expenditure in the economy

b)increase the tax collection of the Government

c)increase the investment expenditure in the economy

d)increase the total savings in the economy


Q.4) The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to : (2014)

a)banking operations

b)communication networking

c)military strategies

d)supply and demand of agricultural products


Q.5) The lowering of Bank Rate by the Reserve Bank of India leads to (2011)

a)more liquidity in the market

b)less liquidity in the market

c)no change in the liquidity in the market

d)mobilization of more deposits by commercial banks


Q.6) In the context of Indian economy, ‘Open Market Operations’ refers to : (2013)

a)borrowing by scheduled banks from the RBI

b)lending by commercial banks to industry and trade

c)purchase and sale of government securities by the RBI

d)None of the above

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