ECONOMY MCQS SET 61

ECONOMY MCQS SET 61

601) Which of the following would be a description of the term 'financial inclusion'?
A) Use of mobile phone for financial transaction
B) Delivery of financial services at affordable cost to the poor
C) Facility to transfer money free of cost for the socially disadvantaged segments of society
D) Introduction of 'Know Your Customer' (KYC) norm
Answer:  Delivery of financial services at affordable cost to the poor
   
602) Which of the following is not a reason for the crisis facing the Indian steel industry since long?
A) Domestic production not able to meet the demand
B) Dumping of steel by countries like China and Japan
C) World slump in the demand for steel
D) Delay in modernization of the Indian steel plants
Answer:  Domestic production not able to meet the demand
   
603) Which of the following is not a function of the Securities and Exchange Board of India(SEBI)?
A) Supervising the working of the Stock Exchanges
B) underwriting new capital issues
C) Regulating merchant banks and mutual funds
D) Promoting the development of a healthy capital market
Answer:  underwriting new capital issues
   
604) Basel III norms have been prescribed for
A) preventing and detecting money laundering
B) preventing adulterating of food and confectionery
C) improving banking system's ability to withstand shocks
D) overcoming the threats posed to civil aviation due to terrorism.
Answer:  improving banking system's ability to withstand shocks
   
605) The Sen-Measure of Poverty Line is said in measure the distribution of welfare rather than merely the distribution of wealth in a society because:
A) it measures the energy requirements of a household
B) it defines poverty in terms of a minimum level of living
C) it seeks to measure the income shortfall of each person in the poverty line
D) it prescribes a universal standard of Well-being applicable the world over
Answer:  it seeks to measure the income shortfall of each person in the poverty line

606) Indian poverty is said to be predominantly rural, Yet the problem of urban poverty appears to have reached unmanageable proportions. The paradox is explained by:
I. greater visibility of urban poverty
II. migration of rural population to urban areas
III. seasonality of agricultural operations
IV. the cycle of drought and floods
A) I above
B) I & II
C) I & IV
D) none
Answer:  I & II
   
607) It has been estimated that rural poverty has increased after the launching of the New Economic Policy (1991)Which of the following factors may not be responsible for this?
A) Reduction in fertilizer subsidy
B) Reduction in development expenditure
C) Increase in the issue price of items under Public Distribution System (PDS)
D) Contract farming
Answer:  Contract farming
   
608) There is, in theory, justification for subsidizing merit goods because:
A) the benefits go to the individual but the costs are borne by the society
B) the enjoyment of these goods by one is not at the expense of similar enjoyment by another
C) these goods benefit not only the individual but also the society at large
D) the distribution of these goods are determined solely by the merit of the recipient
Answer:  these goods benefit not only the individual but also the society at large
   
609) Foreign Direct Investment (FDI) in India has shown a distinct preference for
A) telecom industry
B) the core and infrastructure sectors
C) agribusiness
D) Fast Moving Consumer Goods (FMCG)
Answer:  telecom industry
   
610) Which of the following is not part of the 'second generation of economic reforms' identified by the government?
A) Public Sector reform
B) Legal Systems reforms
C) Oil sector reforms
D) reform of government and public institutions
Answer:  Oil sector reforms