1. What is the importance of the term “Interest Coverage Ration” of a firm in india?

1. It helps in understanding the present risk of a firm that a bank is going to give a loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.
3. The higher a Borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

Select the correct answer using the code given below:

1. 1 & 2 only
2. 2 only
3. 1 & 3 only
4. 1, 2 & 3

2. With reference to the indian economy, consider the following statements:

1. ‘Commercial Paper’ is a short-term unsecured promissory note.
2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
3. ‘Call Money’ is a short-term finance used for interbank transactions.
4. ‘Zero-Coupon Bonds’ are the interest bearing short-term bonds issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct

1. 1 & 2 only
2. 4 only
3. 1 & 3 only
4. 2, 3 & 4 only

3. In the context of the Indian economy, non-financial debt includes which of the following?

1. Housing loans owed by households
2. Amounts outstanding on credit cards
3. Treasury bills

Select the correct answer using the code given below:

1. 1 only
2. 1 & 2 only
3. 3 only
4. 1, 2 & 3

4. If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?

1. Not depending on short-term foreign borrowings.
2. Opening up to more foreign banks.
3. Maintaining full capital account convertibility.

Select the correct answer using the code given below:

1. 1 only
2. 1 & 2 only
3. 3 only
4. 1, 2 & 3

5. If you withdraw ₹1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

1. to reduce it by ₹1,00,000
2. to increase it by ₹1,00,000
3. to increase it by more than ₹1,00,000
4. to leave it unchanged

6. Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework statement’. The aforesaid document is presented because this is mandated by

1. Long standing parliamentary convention
2. Article 112 and Article 110(1) of the Constitution of India
3. Article 113 of the Constitution of India
4. Provisions of the Fiscal Responsibility and Budget Management Act, 2003

7. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

1. Working capital for maintainance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

1. 1, 2 & 5 only
2. 1, 3 & 4 only
3. 2, 3, 4 & 5 only
4. 1, 2, 3, 4 & 5

8. Consider the following statements:

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index(WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy raes.

Which of the statements given above is/are correct?

1. 1 & 2 only
2. 2 only
3. 3 and 4
4. 1, 2 & 3

9. With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:

1. Worker productivity per worker (at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in the non-farm economy increased.
4. The growth rate in rural employement decreased.

Which of the statements given above is/are correct?

1. 1 & 2 only
2. 3 & 4 only
3. 3 only
4. 1, 2 & 4

10. In India, under cyber insurance for individuals, which of the following benifits are generally covered, in addition to payment for the loss of funds and other benifts?

1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer.
2. Cost of a new computer if some miscreant wilfully damages it, if proved so.
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.

Select the correct answer using the code given below:

1. 1 , 2 & 4 only
2. 1, 3 & 4 only
3. 2 & 3 only
4. 1, 2, 3 & 4

11. With reference to chemical fertilizers in India, consider the following statements:

1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.
2. Ammonia, which is an input of urea, is produced from natural gas.
3. Sulphur, which is a raw material for phosphoric acid fertilizer is a by-product of oil refineris.

Which of the statements given above is/are correct?

1. 1 only
2. 2 & 3 only
3. 2 only
4. 1, 2 and 3

12. With reference to pulse production in India, consider the following statements:

1. Black gram (Urad) can be cultivated as both Kharif and rabi crop.
2. Green gram (Moong) alone accounts for nearly half of pulse production.
3. In the last three decades, which the production of kharif pulses has increased,the production of rabi pulses has decreased.

Which of the statements given above is/are correct?

1. 1 only
2. 2 & 3 only
3. 2 only
4. 1, 2 & 3

13. In India, which of the following can be considered as public investment in agriculure?

1. Fixing Minimum Support Price for agriculure produce of all crops
2. Computerization of Primary Agriculture Credit Societies
3. Social Capital development
4. Free electricity supply of farmers
5. Waiver of agriculure loans by the banking system
6. Setting up of cold storage facilities by the governments

Select the correct answer using the code given below:

1. 1, 2 & 5 only
2. 1, 3, 4 & 5 only
3. 2, 3 & 6 only
4. 1, 2, 3, 4, 5 & 6

14. Consider the following statements

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price(MSP) is unlimited in any State/UT of India.
2. In the case of cerals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

15. Consider the following statement:

1. In terms of short-term credit delivery to the agriculure sector, District Central Cooperative Banks (DCCbs) deliver more credit in comparision to scheduled Commercial Banks and Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Prinary Agricultural Credit Societies.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 & 2
4. Neither 1 nor 2

16. With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristics?

1. It is the investment through capital instruments essentially in a listed company.
2. It is largely non-debt creating capital flow.
3. It is the investment which involves debt-servicing
4. It is the investment made by foreign institutional investors in the Government securities.

17. With reference to the international trade of India at present, which of the following statements is/are correct?

1. India’s merchandise exports are less than its merchandise imports.
2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
3. India’s exports of services are more than its imports of services.
4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:

1. 1 & 2 only
2. 2 & 4 only
3. 3 only
4. 1, 3 & 4 only

18. With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?

1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.

Select the correct answer using the code given below:

1. 1 & 2 only
2. 2 only
3. 1 & 3 only
4. 1, 2 & 3

19. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

1. 1 & 2 only
2. 2 only
3. 1 & 3 only
4. 1, 2 & 3