Indian Economy MCQs

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Intercontinental Exchange (ICE) Benchmark Administration took over LIBOR calculation in 2014. Refinitiv publishes LIBOR data. The British Bankers’ Association managed LIBOR calculations from 1986 until 2014. Discontinuation of LIBOR was announced in 2017, with USD, EUR, CHF, and JPY LIBOR ceasing in phases between 2021 and 2023. ICE and Refinitiv are based in the United Kingdom.

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Loan syndication is the process which involves a group of lenders to fund various portions of a loan for a single borrower. Loan syndication most often used when a borrower requires a large quantum of funds which generally cannot be lent by a single lender.

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Trombay, Nangal, and Sindri are famous for fertilizers. The first fertilizer plant was established in Sindri, Jharkhand. Fertilizers are materials that are applied to soil or plant tissue to provide nutrients for plant growth. They can be natural or synthetic in origin.  Trombay is located in Maharashtra. Nangal is a town in Punjab, India. Sindri is a neighborhood in Dhanbad, Jharkhand.

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The International Monetary Fund was established in 1944. The IMF has 190 member countries. The World Economic Outlook Report is published by the IMF biannually. The report provides analyses and projections of the global economy. The WEO was first published in 1980. Updates to the report are typically released in January and July.

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Speculation involves taking positions to profit from expected price changes, accepting risk for potential gain. Hedging uses opposite positions to reduce price risk, while speculation increases risk exposure for possible reward. Both activities occur in securities, currency, and futures markets. Speculators provide market liquidity by accepting risk. Regulators monitor speculative activities to maintain market stability.

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The correct answer is “Broad Money.” M3 is a measure of the total money supply in an economy, including cash, demand deposits, and easily convertible near money. It encompasses all liquid and near-liquid assets, making it a comprehensive indicator of money available for spending and investment. M3 is often used by central banks to gauge economic health and inform monetary policy.

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Clearing House Automated Payment System CHAPS is in UK

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The correct representation of the Money Multiplier is the ratio of Broad Money (M3) to Reserved Money (M0), expressed as M3/M0. The Money Multiplier indicates how much money supply can increase based on the reserves held by banks. M0 represents the total of a country’s physical currency, while M3 includes all liquid or near-liquid assets. This relationship is crucial in understanding monetary policy and banking operations.

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The Mumbai-Ahmedabad High-Speed Rail corridor is a 508-kilometer project using Japan’s Shinkansen technology, featuring 12 stations across Maharashtra, Gujarat, and Dadra and Nagar Haveli. The National High Speed Rail Corporation Ltd. manages the project. As per official schedules, phased operations begin in 2027, with full end-to-end corridor operations targeted for 2029.

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Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.