ECONOMY MCQS SET 43

ECONOMY MCQS SET 43

421) Consider the following statements about Commodity Futures Market in India:
l. It facilitates the price discovery process and provides an opportunity to manage price risks.
2. It consists of agricultural commodities, bullion, energy and base metals.
3. It is regulated by the Forward Markets commission.
4. It affords an opportunity to participants to reverse their contractual obligations by entering into an opposite trade.
Select the correct answer from the codes given below:
A) 3 and 4 only
B) 1 and 3 only
C) 1, 2, 3 and 4
D) 2 and 3 only
Answer:  1, 2, 3 and 4
   
422) Consider the following statements in respect of the Universal Service Obligation (USO) under the National Telecom Policy:
l. USO is funded by a levy on the telecom service providers.
2. The fund can be used for setting up shared mobile towers by eligible operators.
3. The fund is to be spent on meeting the communication needs of the remote and rural areas.
4. Families below poverty line will be given individual household phones free of cost under the scheme.
Which of the above statements are true?
A) 1, 2, 3 and 4
B) 1,2 and 4
C) 1 and 3 only
D) 1,2 and 3 only
Answer:  1,2 and 3 only
   
423) International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crises among developing countries. Among the various sources of external capital available to India which source would you consider as the most preferable?
A) Participatory Note
B) Portfolio investment
C) External commercial borrowing
D) Foreign direct investment
Answer:  Foreign direct investment   
424) Which one of the following would be considered an example of a 'dirty subsidy'?
A) Subsidy on diesel
B) Money spent on total sanitation program
C) Subsidy provided to households above the poverty line
D) Mid-day meals programme
Answer:  Subsidy on diesel
   
425) Which one of the following is not a reason for the recent sharp increase in global food prices?
A) Increased demand from developing countries
B) Conversion of food grains into bio-fuel
C) Pest attack
D) Spurt in crude oil prices
Answer:  Pest attack
426) Comparison of GDPs does not give a clear picture of the relative development of countries. Which of the following is not an explanation for this?
A) The purchasing power of the same unit of currency may vary from country to country.
B) All high-income countries need not be developed countries.
C) Central bank's intervention in fixing the exchange rate may distort the true value of a currency.
D) Financial sector is not fully developed in many developing countries.
Answer:  Financial sector is not fully developed in many developing countries.
  
427) Measured in terms of Purchasing Power Parity (PPP),India become the third largest country in the world. The first two positions are occupied by:
A) U.S., Japan
B) U.S., China
C) U.S., Germany
D) China , Japan
Answer:  U.S., China
   
428) The consequences of colonialism on Indian agriculture were:
I. fragmentation of holdings
II. impoverishment of the peasantry
III. eviction of land owners for non-payment of dues
IV. better farming practices
V. Commercialization of agriculture
A) I, II and IV
B) I, II, IV and V
C) II, III and IV
D) II, III and V
Answer:  II, III and V
   
429) Which of the following is not one of the four important capabilities focused by the Human Development Reports of UNDP?
A) To lead a long and healthy life
B) To contribute to a safe environment
C) To be knowledgeable
D) To have access to the resources needed for a decent standard of living
Answer:  To contribute to a safe environment
   
430) During the colonial period, British Capital was invested primarily in
A) infrastructure
B) agriculture
C) industry
D) handicrafts
Answer:  infrastructure