Questions and answers for exam Preparation

MCQs

Total Questions : 376 | Page 31 of 38 pages

Question 301. Which of the following is the objective of Quantitative easing, an unconventional monetary policy?

to increase the money supply

to decrease the interest rate

Only II is true
Both I & II are true
Only I is true
Neither I nor II are true

Discuss Question

Answer: Option C. -> Only I is true
Answer: (c)
Quantitative easing is distinguished from standard central banking monetary policies, which usually targets the interbank interest rate. When interest rates have been lowered to nearly zero (because of either deflation or extremely low money demand), when a large number of non-performing or defaulted loans prevent further lending (money supply growth) by member banks, and when the main systemic risk is a recession or depression because banks cannot lend any more money, then central banks need to implement a new set of tactics. These are known as quantitative easing.
The central bank may enact quantitative easing by purchasing a predetermined quantity of bonds or other assets from financial institutions without reference to the interest rate.
The goal of this policy is to increase the money supply rather than to decrease the interest rate, which cannot be decreased further. This is often considered a last resort to stimulate the economy.

Question 302. First Plan adopted

Mahalanobis model
Lewis-Fei model
Keynesian model
Harrod Domar model

Discuss Question

Answer: Option D. -> Harrod Domar model
Answer: (d)

Question 303. ‘The Rolling Plan’ for backward countries was suggested by

A. Samuelson
G. Myrdal
R. Nurkse
W.A. Lewis

Discuss Question

Answer: Option B. -> G. Myrdal
Answer: (b)

Question 304. Which one of the following states was having the highest Human Development Index in the year 2012?

Uttar Pradesh
Kerala
Assam
Madhya Pradesh

Discuss Question

Answer: Option B. -> Kerala
Answer: (b)
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income used to rank states.
Among the given states Kerala was having the highest Human Development Index around 0.92 in the year 2012 for achieving the highest literacy rate, quality health services and consumption expenditure of people.

Question 305. Consider the following statements :

PURA model of the economic model was advocated by Dr APJ Abdul Kalam.

PURA model of economic development is mainly aimed to bridge the gap between the rural-urban divide.

Which of the statements given above is/are correct?

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

Discuss Question

Answer: Option B. -> Both 1 and 2
Answer: (b)
Provision of Urban Amenities to Rural Areas (PURA) is a strategy for rural development in India to bridge the gap between rural and urban India.
This concept was given by former president Dr A.P.J. Abdul Kalam. PURA proposes that urban infrastructure and services be provided in rural hubs to create economic opportunities outside of cities.

Question 306. When the productive capacity of the economic systems of a state is inadequate to create sufficient number of jobs, it is called

structural unemployment
seasonal unemployment
cyclical unemployment
disguised unemployment

Discuss Question

Answer: Option C. -> cyclical unemployment
Answer: (c)Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction.

Question 307. The Five Year Plan that terminated one year before the scheduled period is

Fifth Five Year Plan
Second Five Year Plan
Fourth Five Year Plan
Third Five Year Plan

Discuss Question

Answer: Option A. -> Fifth Five Year Plan
Answer: (a)

Question 308. Which of the following is/are correct?

Bulk of unemployment in India is in rural areas.
The disguised unemployment in agricultural sector is perennial.
Industrialization has rendered several people jobless in India.

1 and 2
1 only
1, 2 and 3
2 and 3

Discuss Question

Answer: Option C. -> 1, 2 and 3
Answer: (c)

Question 309. How would the size of the labour force and the rate of unemployment be affected if people retrenched from their jobs did not actively seek employment?

The labour force would be smaller and the unemployment rate would be higher.
The labour force would be smaller and the unemployment rate would be lower.
The labour force would be smaller and there would be no change in the unemployment rate.
There would be no change in the labour force and the unemployment rate would be higher.

Discuss Question

Answer: Option A. -> The labour force would be smaller and the unemployment rate would be higher.
Answer: (a)

Question 310. The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period.
Which one of the following is not true in this regard?

The nation’s priorities have shifted away from industrial development to rural development
With the advent of liberalisation, industrial investments / developments have largely been placed within the domain of private and multinational sector
The focus of planning has shifted to sectors like human, resource development, infrastructure, population control and welfare
With markets assuming a central place, the role of central planning in many sector has been rendered redundant

Discuss Question

Answer: Option A. -> The nation’s priorities have shifted away from industrial development to rural development
Answer: (a)