1. Which among the following is a suitable term for the state of economy in which economic activity is slowing down but wages and prices continue to rise ?
[A] Inflation
[B] Deflation
[C] Skweflation
[D] Stagflation
Show Answer
Correct Answer: D [Stagflation]
Notes:
Stagflation refers to persistent high inflation coupled with high unemployment and stagnant demand /growth in economy.
High Inflation + Low Economic Growth {or conditions of recession} + Low Employment Generation = Stagflation
2. Highest percentage of nitrogen is found in which among the following fertilizers among the given options?
[A] Calcium ammonium nitrate
[B] Ammonium nitrate
[C] Calcium nitrate
[D] Urea
Show Answer
Correct Answer: D [Urea]
Notes:
The agricultural industry widely uses urea, a white crystalline solid containing 46 percent nitrogen as an animal feed additive and fertilizer. Urea has the highest nitrogen content of all solid fertilizers at 46% N.
3. The Unclaimed deposits are those deposits which haven’t been operated for ______?
[A] 5 years or more
[B] 7 years or more
[C] 10 years or more
[D] 12 years or more
Show Answer
Correct Answer: C [10 years or more]
Notes:
Unclaimed deposits are deposits where the proceeds/maturity has not been claimed for a period of 10 years or more. In other words, term deposits are deemed unclaimed if they are inactive/inoperative for more than 10 years.
4. Approximately what fraction of the world’s oil exports is pumped by the 12-member Organization of the Petroleum Exporting Countries OPEC?
[A] 25%
[B] 45%
[C] 50%
[D] 75%
Show Answer
Correct Answer: B [45%]
Notes:
Organization of the Petroleum Exporting Countries (OPEC) is estimated to account for around 40-45% of total global oil exports currently. In 2021, OPEC’s share of global oil exports was around 43%. As of 2022, it was around 40% of global oil exports.
5. Which of the following financial market tactics in India is purposely designed to deceive naive investors by generating enormous counterfeit volumes?
[A] Dividend Stripping
[B] Intra-Day Trading
[C] Forward Trading
[D] Circular Trading
Show Answer
Correct Answer: D [Circular Trading]
Notes:
Circular trading is a fraudulent practice where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, have either been or will be entered. Essentially, it is a deceptive practice that creates the illusion of extensive trading activity in a security to attract further investment which often leads to artificially inflated stock prices.
6. Which among the following phrases generally denotes National Income?
[A] Gross National Product at Market Prices
[B] Net National Product at Market Prices
[C] Gross National Product at Factor Cost
[D] Net National Product at Factor Cost
Show Answer
Correct Answer: D [Net National Product at Factor Cost]
Notes:
Net National Product at Factor Cost generally denotes National Income.
7. Which among the following body in India requires to protect the interests of consumers against anti-competitive practices of all market entities?
[A] National Consumer Forum
[B] Competition Commission of India
[C] National Consumer Disputes Redressal Commission
[D] Central Vigilance Commission
Show Answer
Correct Answer: B [Competition Commission of India]
Notes:
The Competition Commission of India (CCI) was set up to replace the anachronistic Monopolies and Restrictive Trade Practices Commission (MRTPC). It was established to eliminate practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade. The Competition Act of 2002 called for the creation of CCI. However, it was established in 2003 and became fully functional only by 2009. The CCI is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. It has one chairman and six members. It is the youngest and the only cross-sector regulator in India.
8. Which among the following curve defines the principle that zero tax rate would produce zero revenue for the government and a 100% tax rate would also generate zero revenue for the taxing Government?
[A] Laffer curve
[B] Lorenz curve
[C] Engel curve
[D] Kuznets curve
Show Answer
Correct Answer: A [Laffer curve]
Notes:
The Laffer curve is a theoretical concept in economics that illustrates the relationship between tax rates and government revenue. The curve is named after economist Arthur Laffer, who popularized the concept in the 1970s. The basic idea behind the Laffer curve is that there is a certain tax rate that will maximize government revenue. At a 0% tax rate, the government will obviously not collect any revenue. At a 100% tax rate, the government will also not collect any revenue because people will have no incentive to work. The Laffer curve suggests that there is a point in between these two extremes where the government will collect the most revenue. The exact shape and location of the Laffer curve will vary depending on various factors, such as the state of the economy and the efficiency of the government’s tax collection system.
9. Who among the following works as head of the “Board for Financial Supervision” in India?
[A] Finance Minister
[B] RBI Governor
[C] Minister of State for Finance
[D] Independent head appointed by President
Show Answer
Correct Answer: B [RBI Governor]
Notes:
The head of the “Board for Financial Supervision” (BFS) in India is the RBI Governor. Established in 1994, the BFS is responsible for overseeing the financial system, ensuring its stability and soundness. The Reserve Bank of India (RBI) plays a crucial role in regulating the banking sector, and the Governor, as the chief executive, leads this board.
10. Which among the following economic activities would contribute in increasing the deficit in current account?
1. Outsourcing of Goods
2. Outsourcing of services
3. Increase in domestic tourism
4. Increase in foreign tourist arrival
Select the correct option from the codes given below:
[A] Only 1
[B] Only 1 & 2
[C] Only 1, 2 & 3
[D] Only 1, 2 & 4
Show Answer
Correct Answer: B [ Only 1 & 2 ]
Notes:
The correct answer is “Only 1 & 2.” 1. Outsourcing of Goods (1): This leads to an increase in imports, which negatively impacts the current account balance. 2. Outsourcing of Services (2): Similar to goods, outsourcing services results in payments to foreign entities, increasing the current account deficit. 3. Increase in Domestic Tourism (3): This does not affect the current account negatively, as it involves spending within the country. 4. Increase in Foreign Tourist Arrival (4): This positively impacts the current account by bringing in foreign currency. Trivia: The current account is a key component of a country’s balance of payments, reflecting trade in goods and services, income, and current transfers.