UPSC CSE PRELIMS 2020 STUDY PLAN – DAY 103

prelims 2020

UPSC CSE PRELIMS 2020 STUDY PLAN – DAY 103

TOPICS TO BE COMPLETED TODAY

HEADING

day 103

UPSC PRELIMS 2020 STUDY PLAN  (Click Here For Full Timetable)

 

VALUE ADDED NOTES  (SAMPLE)

FINANCIAL MARKET

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MOCK PRELIMS QUIZ ON TODAY’S TOPIC

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Economic and Social Development – Day 103 Quiz (Click Here)

 

QUIZ QUESTIONS 

1. Consider the following statements:

  1. The Currency Deposit Ratio is the proportion of the total deposits commercial banks keep as reserves.
  2. The Reserve Deposit Ratio is the money held by the public in currency to that they hold in bank deposits.

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

 

2. The Global Hunger Index (GHI) is a multidimensional statistical tool used to describe the state of countries’ hunger situation. Consider the statements about GHI

  1. The Index was adopted and further developed by the International Food Policy Research Institute (IFPRI)
  2. This year’s (2017) thematic focus is on inequality and hunger
  3. India is ranked above as compared to its neighbors like Bangladesh, Srilanka , Pakistan and Myanmar

Which of the given statements is/are correct?

  • a. 1 and 2
  • b. 2 only
  • c. 2 and 3
  • d. 1, 2 and 3

 

3. Peer to Peer (P2P) lending is a debt financing mechanism that enables individuals to borrow and lend money. Which of the following statements are correct regarding P2P lending?

  1. According to RBI, P2P lending is a method of crowd funding.
  2. According to government of India notification, P2P lending will be regulated by SEBI.

Select the code from below:

  • a. 1 only
  • b. 2 only
  • c. Both 1 and 2
  • d. Neither 1 nor 2

 

4. Which of the following statements correctly defines a full bodied money?
  • a. It is the money whose value as money is equivalent to its value as commodity.
  • b. It is the money whose value as money is much larger than its value as commodity
  • c. It is the money which is released by the government order.
  • d. It is the money which is temporarily released with a backing of Government securities

 

5. Which of the following laws states that bad money drives out good money from circulation?
  • a. Mahalinobis law
  • b. Kuznet’s law
  • c. Gresham’s Law
  • d. Mill’s law

 

6. Which of the following defines inflationary gap?
  • a. Inflation coupled with recession.
  • b. Difference between inflation in a developed country and developing country
  • c. Gap between inflation and deflation
  • d. Access of aggregate demand over aggregate supply at full employment level Correct

 

7. How many languages are present in the obverse box of a 500 rupee currency note?
  • a. 22
  • b. 10
  • c. 15
  • d. 18

 

8. Payment banks are not true banks because
  • a. They do not accept money deposits
  • b. They do not provide net banking
  • c. They do not provide debit card facility
  • d. They do not lend money

 

9. In terms of economy, the visit by foreign nationals to witness the U-17 football world cup matches in India amounted to
  • a. Exports
  • b. Imports
  • c. Production
  • d. Consumption

 

10. The term ‘S4A’ is related to
  • a. Problem related to loan
  • b. Problem related to Non-Performing Asset
  • c. Problem related to pension
  • d. Problem related to merger of banks

 

11. Which of the following organization releases the Inclusive Development Index (IDI)?
  • a. World Bank
  • b. IMF
  • c. World Economic Forum
  • d. Asian development bank

 

12. To know whether the rich are getting richer and the poor getting poorer, it is essential to compare:
  • a. The availability of food grains among two sets of people, one rich and the other poor, over different periods of time
  • b. The distribution of income of an identical set of income recipients in different periods of time
  • c. The wholesale price index over different periods of time for different regions
  • d. The distribution of income of different sets of income recipients at a point of time

 

13. A high Gini score for a nation means that

1.The nation is highly economically developed

2.The nation has high economic inequality

Which of the above is/are correct?

  • a. 1 only
  • b. 2 only
  • c. Both 1 and 2
  • d. None

 

14. In Special Economic Zones (SEZs) business and trades laws differ from the rest of the country. These relaxations are provided in order to

1.Make SEZs Export Processing Zones thereby promoting exports

2.Establish industrial townships in SEZs

Which of the above is/are correct?

  • a. 1 only
  • b. 2 only
  • c. Both 1 and 2
  • d. None

 

15. What is the most common form of unemployment in urban areas?
  • a. Seasonal employment
  • b. Disguised unemployment
  • c. Educated unemployment
  • d. No unemployment

 

16. Peer to Peer (P2P) lending is a

1.Form of crowd-funding

2.Does not carry any interest rate

3.Platform that can be used online

Select the correct answer using the codes below.

  • a. 1 and 3 only
  • b. 2 and 3 only
  • c. 1 and 3 only
  • d. 1, 2 and 3

 

17. Net National Product at factor cost is calculated by
  • a. G GNP – Depreciation
  • b. G NNP at market price – Indirect taxes
  • c. G NNP at market price – Indirect taxes + Subsidies
  • d. G GNP + Net factor Income from abroad

 

18. Which of the following is/are not included in the Personal Disposable Income (PI) earned by the households?

  1. Undistributed profits
  2. Corporate tax
  3. Transfer payments by the governments
  4. IncomeTax
  • a. 1, 2 and 4 only
  • b. 1 and 2 only
  • c. 2, 3 and 4 only
  • d. 1, 2, 3 and 4

 

19. Consider the following statements about real GDP:

  1. It is calculated in such a way that the goods and services are evaluated at some constant set of prices
  2. It is calculated in such a way that the goods and services are evaluated at current prices
  3. An increase in the value of real GDP indicates an increase in the volume of production 4. An increase in the value of real GDP indicates an increase in the prices of goods and services

Which of the statements given above is/are correct?

  • a. 1 and 3 only
  • b. 2 and 4 only
  • c. 1 only
  • d. 2 only

 

20. GDP of a country is:
  • a. Sum total of value of goods and services created within the geographical boundary of  a country in a particular year
  • b. Sum total of value of goods and services created by the nationals of a country within the geographical boundary of a country in a particular year
  • c. Sum total of value of goods and services created by the nationals of a country within or outside the country in a particular year
  • d. G Sum total of value of goods only created within the geographical boundary of country in a particular year

 

21. GDP of a country cannot be taken as an index of the Welfare of the people of a country. Why?

  1. Rise in the GDP may be concentrated in the hands of very few individuals or firms
  2. Many activities in an economy are not evaluated in monetary terms
  3. Other externalities which refers to the benefits or harms a firm or an individual causes to another for which they are not paid or penalised
  • a. 1 and 2 only
  • b. 1 and 3 only
  • c. 3 only
  • d. 1, 2 and 3

 

22. Which of the following is/are the functions of Money?

  1. It acts as a medium of exchange.
  2. It acts as a convenient unit of account.
  3. It acts as a store of value for individuals.
  • a. 1 only
  • b. 1 and 3 only
  • c. 1 and 2 only
  • d. 1, 2 and 3

 

23. Consider the following statements about bonds:

  1. These are papers bearing the promise of a future stream of monetary returns over a certain period of time.
  2. Bond papers are issued by Government only
  3. These are tradable in the market.

Which of the statements given above is/are correct?

  • a. 1 and 2 only
  • b. 1 and 3 only
  • c. 2 and 3 only
  • d. 1, 2 and 3

 

24. Which of the following is/are characteristics of capitalist economy?

  1. Private and Public ownership of means of production
  2. Production takes place for selling the output in the market
  3. There is a sale and purchase of labour services at a price called wage rate
  • a. 1 and 2 only
  • b. 1 and 3 only
  • c. 2 and 3 only
  • d. 1, 2 and 3

 

25. Consider the following statements:

  1. Consumption goods or consumer goods does not include services
  2. Capital goods are those, that are of durable character and are used in the production processes

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

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