MAGME SCHOOL OF BANKING  

Class Room - Daily Dose Booklet 

 DDB NO: GK One liners 01

GK One liners

Answers

1    Vitamin D
2    Zonda
3    Hemoglobin
4    Fungi
5    ATP
6    Kidney
7    0.8 second
8    Vitamin K
9    Liver
10    This increase KBC in boely
11    Duodenum
12    Meningitis
13    Mirablius
14    Cotton Industry
15    TSH
16    Left Ventricle
17    Splean
18    Myosin
19    Water
20    Main cells
21    Rifampicin
22    4
23    Sphygmology
24    Bear
25    Thymus
26    Gambusia
27    Amphibean
28    Euchlorella
29    Gout
30    Mitochondria
31    Fluorine
32    Tuberculosis
33    Carbohydrate
34    Thigh
35    8
36    Heparin
37    Water
38    Respiration
39    Virus
40    Liver
41    Iron
42    Pancreas
43    Nastic movement
44    3
45    Starch
46    Anemia
47    Protein
48    Plant fossils
49    Jatropha curcas
50    38 ATP
51    Nicotine
52    Liver
53    Spleen
54    Immunisation
55    AB
56    Kornberg
57    Cabbage
58    C.N. Banard
59    Frog
60    Due to hemoglobin
61    Reduce transpiration
62    Large intestine
63    Urea
64    Secondary teeth
65    Melanin
66    Pitcher plant
67    Neuron
68    Tape worm
69    Cycus
70    Four
71    Respiration
72    Sugarcane
73    Ultrasound
74    A nerve
75    DNA
76    Ptyalin
77    Insects
78    Cytochromes
79    Latic Acid
80    Hyper secretion of thyroid
81    Lemon
82    Lungs
83    For increase blood pressure
84    Mustard gas
85    Hemocyanine
86    Five liter
87    Mitochondria
88    RNA
89    Biopsy test
90    5.0 million
91    Cellulose
92    Europe
93    It helps in digestion of cellulose
94    Xerophytes
95    Chloroplasts
96    Pituitary
97    Outside the mother's body
98    Phloem
99    Drup
100    Related to loss of memory
101    Scurvy
102    Analogous organs
103    Emphysama
104    Nitrate
105    Loss of the sense of smell
106    Sprouted gram and groundnuts
107    98.4 ° F
108    Cercosplora personata
109    Taiga
110    Calcium phosphate
111    Iodine
112    Mycorrhizae
113    Typhoid
114    Cambium
115    Four
116    Fruitose
117    Ventral nerve cord
118    Fat soluble Vitamin
119    Sparrow
120    Serology
121    Sand fly
122    Genetics
123    Bone
124    Pollination
125    Water
126    Fungi
127    Cobalt
128    Spider
129    Parmelia
130    Pituitary
131    Cobalt
132    Hemoglobin
133    Frog
134    Stilt
135    Vitamin - C
136    45 g
137    Pharmacology
138    Protein
139    Hypothalamus
140    Hookworm
141    Embryology
142    Garlic
143    Lymphocyte
144    60
145    Adernal gland
146    Kitone body
147    Chromosomes
148    Degeneration of nerve cells
149    Ecology
150    Ptela none
151    Lactic acid
152    anthocyanins
153    100-120 days
154    White of egg
155    Xylem vessel system
156    Islets of langerhans
157    Mitochondria
158    Alexzander Fleming
159    Colour blindness
160    Linneus
161    O
162     Fat
163    A thousand
164    Cardiology
165    Cones
166    Blood clot
167    Chloroplast
168    Liver
169    Nephron
170    Vitamin A
171    Small intestine
172    Due to the presence of heparin
173    206
174    Vitamin D
175    Guava
176    Kerotein
177    Leprosy
178    Beri-Beri
179    King cobra
180    Chloramphenical
181    700
182    High concentration of sugar
183    Calcium
184    Photosynthesis
185    Father
186    Duretic
187    Ptyalin
188    Fresh vegetable
189    Exereation
190    24
191    Fat
192    Internal age
193    Stem
194    Chronic diarrhoea
195    46
196    K
197    Plasma membrane
198    Hypothalmus
199    4
200    AB
201    7.20%
202    Glyoxysomes
203    Carbohydrate
204    Diarrhea
205    Oxysomes
206    Medulla oblangata
207    Algae
208    Robert Koch
209    Mund (Starch)
210    Below the brain
211    Fructose
212    Oil in Unsaturation
213    300 gm
214    Blood Plasma
215    Bat
216    From pituitary gland
217    Cholera
218    Oviduct
219    Weisman
220    Citrus fruit
221    Sugar
222    Tidal flat
223    7.4
224    A biological community
225    Bone to bone
226    Disorder of value
227    Liver
228    99%
229    31 pair
230    Reproductive system
231    Film in the camera
232    Intestine
233    Lemurs
234    A or O
235    Liver
236    72 times
237    William Harvey
238    Testestrone
239    Second incisor
240    80/120 mm Hg
241    Malphigion tubule
242    Saffron
243    Increase growth in length
244    Skull
245    Gambusia
246    Mechanical support
247    Floriculture
248    Hypothalamus gland
249    Plumonary vein
250    Vitamin - D
251    Vitamin D
252    Night blindness
253    Afferent arteriole
254    7.35-7.45
255    Vitamin C
256    Xerophytes
257    Xylum
258    Vitamin - A
259    Pituitary
260    Thyroid
261    Caterpillar
262    Thyroid
263    Protein synthesis
264    To regulate body temperature
265    Stigma
266    Cancer
267    Angina
268    Vitamin B12
269    Oparin
270    Vitamin A
271    Spleen
272    Vitamin - A
273    Absorption of calcium from food
274    Arthropoda
275    A pigment
276    Hemoglobin
277    By combining various foods
278    Death of tissues of the brain
279    Rubber
280    Nucleic acid
281    Reptiles
282    Thyroid
283    Cristae
284    Aquarium
285    Starch
286    Oxytocin
287    Insuline
288    Bacteria
289    Phloem
290    Baden Powell
291    Food web
292    Tropical rainforests
293    Thyroid gland
294    Pancreas
295    By trachea system
296    120 days
297    For carbon monoxide
298    Homeothermic
299    Liver
300    Low amount blood carries to the heart
301    Parathyroid hormone
302    Gastrin
303    Hargobind Khurana
304    Cellulose
305    Third molar
306    Pine, cedar, fir
307    Soyabean
308    Vitamin C
309    Keroten
310    Diffussion
311    Agrobacterium tumefaciens
312    Rennin
313    Nicotine
314    Carbohydrate
315    Pancrease
316    Photobiology
317    Bacterium
318    Heart
319    Scurvy
320    Liver
321    Permanent tissue
322    Leaves
323    Tubers
324    Monocyte
325    Voice box in Birds
326    Birds
327    Arthropoda
328    D
329    Hemal system
330    Pitutary gland
331    Lamarck
332    Mediterranean region
333    Soybean and Ground nut
334    Small pox
335    Caesin, laetose
336    Kingcobra
337    In bone marrow
338    Bone
339    Phytophthora infestans
340    By Pituitary gland
341    Escherichia coli
342    Femur
343    1.36 kg
344    Fight from disease in body
345    Hydrogen bonding
346    Sphleen
347    Fiscal deficit
348    Potassium
349    Leaves
350    Rabies virus
351    Iron
352    Echidna
353    Pleiotropic
354    Adventitious root
355    Auxins
356    Lymphocytes
357    Histology
358    Vitamin A
359    Frogs and snakes
360    Voluntary muscle
361    Thigh bone
362    Southern Blotting
363    C
364    Growing different crops-in succession
365    Nephron
366    Jonas Salk
367    Poterior
368    Vitamin - D
369    Gonds
370    Meristematic tissue
 

 MAGME SCHOOL OF BANKING 

1. B. India, among the countries has the lowest GDP per capita.

2. A. Sustainable development is that development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development is a case of inter generational sensibility in respect of use of natural resources.
Sustainable development - Economic development that is conducted without depletion of natural resources.

3. C. Sustainable development is a case of inter generational equity in respect of use of natural resources.
Sustainable development is defined as a process of meeting human development goals while sustaining the ability of natural systems to continue to provide the natural resources and Eco system services upon which the economy & society depends.

4. C. CWC is a Warehousing Agency in India, established in 1957. It provides logistics support to the agricultural sector. CWC is operating 464 Warehouses across the country with a storage capacity of 10.54 million tonnes providing warehousing services for a wide range of products ranging from agricultural produce to sophisticated industrial products.

5. D. ‘World Investment Report’ is the annual report published by the UNCTAD. Each year the report covers the latest trends in foreign direct investment around the world and analyses in depth one selected topic related to foreign direct investment and development.
World Bank: An international financial Institution that promotes loan to developing countries for capital programme.
WTO: An Intergovernmental organisation which regulates international trade. (Headquarters - Geneva)

6. A. International Monetary Fund is not a part of World Bank. The International Monetary Fund (IMF) along with World Bank were created in 1944 at the Bretton Woods Conference. They are known as Bretton Woods Twins. The IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade.
World Bank Group: 5 organisation
a. IBRD (International Bank for Reconstruction and Development)
b. IDA (International Development Association)
c. IFC (International Finance Corporation)
d. MIGA (Multilateral Investment Guarantee Agency)
e. ICSID (International Centre for Settlement of Investment Disputes).

7. D. The World Bank was created at the 1944 Bretton Woods Conference, including the International Monetary Fund (IMF). World Bank provides loans to developing countries for capital programs. The Headquarters of World Bank is in Washington D.C.

8. A. WEF meeting, 2017 was held in Davos : Klosters, Switzerland.

9. D. CRISIL is the Credit Rating Agency of India. CRISIL’s majority shareholder is Standard and Poor’s (S&P).
CRISIL: It is a global analytical company providing ratings, research and risk and policy advisory services. It was founded in 1987, Headquarters (Mumbai).

10. B. The World Trade Organization (WTO) is an organization that supervises and liberalizes international trade. It officially commenced on 1 January 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT) The headquarters of World Trade Organization (WTO) is located in Geneva.

11. C. Croatia applied for EU membership in 2003 and was in negotiations from 2005 until 2011.On 9 December 2011 leaders from the EU and Croatia signed the accession treaty. The country became the 28th EU member country on 1 July 2013.
European Union: Political & Economic union of 28 member states that are located primarly in Europe.

12. A. POSCO is a multinational steel making company headquartered in Pohang, South Korea. It is the world’s fourth largest steelmaker.

13. A. The United Kingdom, under Margaret Thatcher started privatisation of state-owned enterprises as a major state policy. The Ridley report devised for the Thatcher shadow cabinet, recommended a policy of breaking up the public sector and dismembering unions.
State owned enterprise: It is a legal entity that undertakes commercial activities on behalf of the state.

14. A. The International Development Association (IDA) is an international financial institution which offers concessional loans and grants to the world’s poorest developing countries. The IDA is a member of the World Bank Group and is headquartered in Washington DC. It is administered by the International Bank for Reconstruction and Development (IBRD).
IFAD (International fund for agriculture development): It is specialized agency of United Nations dedicated to eradicating rural poverty in developing countries.
UNDP: (United Nation’s Development Programme) It is the United Nation’s Global Development Network.
HQ: New York. It advocates for change and connects countries to knowledge experience & resource to hold people build better life.
UNIDO: (United Nations industrial development organisation) It is specialized agency in United Nations System, HQ Vienna Austria.

15. D. WTO : It is Governmental organisation which regulates international trade. The WTO officially commenced on 1 January 1995 under the Marrakesh agreement, signed by 123 nations on 15 April 1994, replacing the General agreement on tarrifs and trade.

16. D. World Investment Report is published by UNCTAD. It has been published annually since 1991.Each year’s report covers the latest trends in foreign direct investment around the World and analysis in depth one selected topic related to foreign direct investment and development.
World Economic Forum (WEF): The world economic forum is a Swiss nonprofit foundation cologny, based in Geneva.
GATT (General agreement on Tarrifs and trade): It was a multilateral agreement regulating international trade GATT was signed by 23 nations in Geueva on Oct. 30, 1947 and took effect from January, 1948.

17. C. The Non-Agricultural Market Access (NAMA) negotiations of the World Trade Organization are based on the Doha Declaration of 2001 that calls for a reduction or elimination in tariffs, particularly on exportable goods of interest to developing countries. Developing countries have formed the NAMA-11 of World Trade Organization.
Member countries are Argentina, Venezuela, Brazil, Egypt, India, Indonesia, Namibia, Philippines, South Africa and Tunisia.

18. D. Samuel’s Investor Group is not the rating agency of an economy. It is Canada based company enganged in financial planning.
Big Three credit rating agency controlling approximately 95% of the ratings business, Moddy’s investor service & poor’s (S&P) together control 80% of Global market and Fitch Rating controls a further 15%.

19. B. The Doha Round also called Doha Development Agenda is the latest round of trade negotiations among the WTO membership. Its fundamental objective is to improve the trading prospects of developing countries. The Round was officially launched at the WTO’s
Fourth Ministerial Conference in Doha, Qatar, in Nov, 2001.
UMO: It is an International organization founded in 1945 after the IInd world was by 51 countries commited to maintaining international peace and security developing friendly relations among nations & promoting social progress, better living standard.

20. D. The Big Three credit rating agencies are Standard & Poor’s (S&P), Moody’s, and Fitch Group. S&P and Moody’s are based in the US, while Fitch is dual-headquartered in New York City and London, and is controlled by the France-based FIMALAC. As of 2013 they hold a collective global market share of roughly 95 percent with Moody’s and Standard & Poor’s having approximately 40% each, and Fitch around 15%.

21. B. International Development Association has offered the concessional loans and grants to the world’s poorest developing countries. The IDA is a member of the World Bank Group and is administered by the International Bank for Reconstruction and Development (IBRD).

22. D. Major share of ore and mineral exports comes from the export of iron ore from China.

23. C. The capital of IMF is generated by contribution of the member nations.
Each member of the IMF is assigned a quota, based broadly on its relative size in the world economy, which determines its maximum contribution to the IMF’s financial resources. On joining the IMF, a country normally pays up to one-quarter of its quota in the form of widely accepted foreign currencies (such as the U.S. dollar, euro, yen, or pound sterling) or Special Drawing Rights (SDRs). The remaining three-quarters are paid in the country’s own currency.
Deficit financing: Govt funding of spending by borrowings.

24. B. France is the first borrower of fund from the International Monetary Fund. It borrowed funds from IMF on 8th May 1947.
From March 1st, 1947 IMF begins operation and May 8, 1947 first drawing from IMF (France).

25. D. In order to qualify for the “green box”, a subsidy must not distort trade, or at most cause minimal distortion. These subsidies have to be government-funded (not by charging consumers higher prices) and must not involve price support. The blue box is an exemption from the general rule that all subsidies linked to production must be reduced or kept within defined minimal (“de minimis”) levels. It covers payments directly linked to acreage or animal numbers, but under schemes which also limit production by imposing production quotas or requiring farmers to set aside part of their land.
Green box:
a. Green subsidy allowed in terms of support eg. MSP or subsidies
b. Measures with minimal impact on trade can be used freely.
c. They include govt. services such as research, disease control, infrastructure and food security.
Blue Box
a. Subsidy is also permitted
b. Cover certain direct payment to farmers there farmers are required to limit production called ‘blue box’ measures.

26. D. Uruguay session is the final session of the General Agreement on Tariffs and Trade (GATT).The Uruguay Round lasted from 1986–94. It was the most ambitious round to date, hoping to expand the competence of the GATT to important new areas such as services, capital, intellectual property, textiles, and agriculture. One of the most significant changes in the Uruguay round was the creation of the World Trade Organization (WTO).

27. D. China has the highest share in the world export among the Asian countries. It exports 27% of GDP as goods and services. However, India exports 24% of its GDP.

28. A. If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product .India is the top user of the anti-dumping measures in the world in the last decade.

29. A. Sri Lanka is the first country to sign CEPA with India. India and Sri Lanka signed the bilateral Comprehensive Economic Partnership Agreement (CEPA) on August 1, 2008 on the sidelines of the SAARC Summit.

30. D. The Global Competitiveness Report (GCR) is a yearly report published by the World Economic Forum. Since 2004, the Global Competitiveness Report has ranked countries based on the Global Competitiveness Index.

31. C. The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization (WTO). It sets down minimum standards for many forms of intellectual property (IP). It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.

32. A. World Economic Outlook is basically a survey conducted and published by the International Monetary Fund. It is published twice and partly updated 3 times a year.

33. D. The S&P 500, or the Standard & Poor’s 500, is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

34. A. Gulf Cooperation Council, GCC is a political and economic union of Arab states bordering the Persian Gulf, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Khaleeji is the proposed currency of the Gulf Co-operation Council (GCC).
Sucre was the currency of Ecuador between 1884 and 2000.
Dinar: It is a main currency unit in modern circulation in 7 mostly Islamic and 2 mostly orthodox countries.

35. A. (China–Russia–India–France) is the correct sequence of the countries having Foreign Exchange Reserve from high to low.
China has 3,108,500 million USD.
Russia has 430,200 million USD.
India has 401,942 million USD.
France has 153,891 million USD.

36. A. The Korea Composite Stock Price Index or KOSPI is the stock Exchange of South Korea. KOSPI was introduced in 1983 with the base value of 100.
TSEC - Taiwan Stock Exchange Corporation.
SET Index - Stock Exchange of Thailand.

37. D. An External Commercial Borrowings (ECB) is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs (public sector undertakings). ECBs include commercial bank loans, buyers’ credit, suppliers’ credit, securitised instruments such as floating rate notes and fixed rate bonds etc., Export Credit Agencies, ADB and IFC are the recognised lender of the External Commercial Borrowings in the international capital market.

38. B. Special Drawing Rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).

39. C. The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States.

40. C. Collaboration between WTO and the Codex Alimentarius concerns the use of international food safety standards in the context of the SPS Agreement.
World standard corporations: High level collaboration between the IEC, ISO and ITU.
International Federation of Standard users: Founded in 1974. It is an independent, non-profit, international association of national organisation for the application & standards.

41. A. Portfolio investments are passive investments, as they do not entail active management or control of the issuing company.

42. B. In China more than 80% national economic conditions are good.

43. A. According to monetarests in the long run, the phillips curve is vertical.

44. C. Indian consumers are getting more choice at cheaper rates.

45. B. SDR’s is are not backed by US dollars.

46. D. The Mercado Integrado Latinoamericano, more commonly known as MILA, is a program that integrates the stock exchangemarkets of Chile, Colombia, Mexico, and Peru.
The three forming members of Leona are
(i) Leona stock exchange
(ii) the Santiago stock exchange
(iii) Colombia stock exchange

47. C. CADIVI (Commission de Administration de Devises - Commission for the Administration of Currency Exchange) is the Venezuelan government body which administers legal currency exchange in Venezuela.

48. D. MIGA is a member of the World Bank Group. Its mission is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people’s lives.
MIGA Head quarter - Washington DC, membership - 181 countries. Parent organisation - World Bank, MIGA formation - 1988.

49. C. The function of IMF include all the function except to serve as the world central bank.
World Bank serve as the world Central Bank.

50. A. Officially established on 27 December 1945, when the 29 participating countries at the conference of Bretton Woods signed its Articles of Agreement, the IMF was to be the keeper of the rules and the main instrument of public international management. The Fund commenced its financial operations on 1 March 1947. IMF approval was necessary for any change in exchange rates in excess of 10%.

51. C. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743).

52. A. World Bank and International Monetary Fund (IMF) were established in Dec, 1944 on the recommendation of Bretton Wood Conference.
Five constituents of the World Bank are:
IBRD, IFC, IDA, MIGA and ICSID.

53. A. All the given statements are correct regarding the World Trade Organization. The members of the GATT signed agreement of Uruguay Round in 1994 for establishing WTO which officially was constituted on Jan 1, 1995.

54. B. WTO-Multi-lateral trade negotiation body.
IDA-Sanction of soft loans
IMF-provides loans to address short-term balance of payment problems.
IBRD-Facilitates lending and borrowing for reconstruction and development.

55. B.

56. D. Basel II is the revised international capital framework. The Basel II framework describes a more comprehensive measure of minimum standard for capital adequacy that national supervisory authorities are now working to implement through domestic rule-making and adoption procedures.

57. D. The fight on pruning industrial tariffs at the WTO has become more fierce with a group of developing countries (NAMA-11).

58. B. Safeguard Mechanism is one of the three types of trade protection measures taken by WTO members, alongside anti-dumping and countervailing measures.

59. B. A Geographical Indication shows that particular agricultural, natural or manufactured goods originates from a definite geographical territory.

60. D. Emerging markets are nations with social or business activity in the process of rapid growth and industrialization.

61. B. The president of the UN General Assembly, set up a commission of experts chaired by Joseph Stiglitz, whose mandate is to reflect on the causes of the crisis, assess its impacts on all countries and suggest adequate responses to avoid its recurrence and restore global economic stability.

62. D. The European Council is the institution of the European Union responsible for defining the general political direction and priorities of the union. The European Commission is the executive body of the European Union.

63. D. The basic idea of Dialectical Materialism is that every economic order grows to a state of maximum efficiency, while at the same time develops interval contradictions or weaknesses that contribute to its decay.

64. B. The ‘look east’ policy, initiated by I.K. Gujral, aimed to forge economic, social and cultural relations with the East Asia countries via three approaches. The first of the three approaches was to renew the political contacts and understanding with the member states of the ASEAN. The second was to achieve economic interactions such as science aand technology, investment and trade etc. with these countries and the third was to strengthen the links of defense and strategy with them.

65. C. The IMF is an intergovernmental organization that oversees the global financial system by taking part in the macroeconomic policies of its established members, in particular those with an impact on exchange rate and the balance of payments.

66. A. The three main objectives of the IMF include the elimination of any existing exchange controls, the establishment of currency convertibility and maintenance of stable exchange rates, along with an extension of payments and multi-lateral trade. The IMF also functions as a credit institution in foreign exchange and provides machinery for international consultations.

67. A.

68. A. Doing business report is a series of annual reports measuring the regulations that enhance business activity and those that constrain it. It is published by World Bank Group.

69. A.

70. D.

71. A.

72. B. Regarding WTO membership, over 75% of WTO members are from developing countries, and the membership allows them access to develop markets at lower tariff.

73. C. The objectives of the Bretton Woods system is to maintain the exchange rate by trying its currency to the US dollar and to bridge temporary imbalances of payments.

74. D. Non-Agricultural Market Access (NAMA) negotiations of WTO covers manufacturing products, fuel and mining products, fish and fish products and forestry products.

75. B.

76. B.

77. D. Agreement on Agriculture (AoA) constitutes of domestic support, market access and export subsidies.

78. A.

79. C.

80. C.

81. C.

82. A.

83. C.

84. A.

85. A. A private good is defined in economics as a good that exhibits these properties (1) Excludable – the owners in possession of the good can exercise private property rights, preventing a class of consumers (e.g., those who have not paid for it) from using the good or consuming its benefits (2) Rivalrous – consumptions by one consumer prevents simultaneous consumption by other consumers. Private goods satisfy an individual want while public goods satisfy a collective want of the society.

86. B.

87. B.

88. D. Marshall’s cardinal utility analysis is the oldest theory of demand propounded in 1920. Indifference curve technique was first of all invented by Edge-worth and then Hicks and Allen (1936) put forward the indifference curve approach based on the notion of ordinal utility.
Then Samuelson (1938) propounded Revealed Preference theory and finally Hicks in 1956 gave Weak Preference ordering theory of demand.

89. B. Quantity theory of money was developed by Simon New-comb, Alfred de Foville, Irving Fisher and Ludwig Von Mises in the latter 19th and early 20th century, Alfred Marshall, A.C. Pigou and J. M. Keynes (before he developed his own, eponymous school of thought) associated with Cambridge University, took a slightly different approach to the quantity theory, focusing on money demand instead of money supply. The Baumol-Tobin model is an economic model of the Transactions demand for money as developed independently by William Baumol (1952) and James Tobin (1956).

90. C. After Keynes propounded theory of consumption, Duesenberry gave relative income hypothesis. Permanent income theory of consumers’ behaviour was put forward by Milton Friedman in 1957 in his book “A theory of consumption Function”. Modigliani and Ando in 1963 put forward Life Cycle theory.

91. C.

92. B.

93. B. The current account : The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account.
The capital account: The capital account is where all international capital transfers are recorded. This refers to the acquisition or disposal of nonfinancial assets (for example, a physical asset such as land) and nonproduced assets, which are needed for production but have not been produced, like a mine used for the extraction of diamonds.
The Official Settlement Account of The Financial Account: In the financial account, international monetary flows related to investment in business, real estate, bonds and stocks are documented. Also included are government-owned assets such as foreign reserves, gold, Special drawing rights (SDRs) held with the International Monetary Fund, private assets held abroad, and direct foreign investment. Assets owned by foreigners, private and official, are also recorded in the financial account.
Errors and Omissions: The errors may be due to statistical discrepancies and omissions may be due to certain transactions that may not be recorded.

94. C.

95. B.

96. C.

97. B.

98. A.

99. B.

100. B.

101. B.

102. C.

103. A. Functional Finance is a heterodox macroeconomic theory developed by Abba Lerner during World War II that seeks to eliminate economic insecurity (i.e., the business cycle) through government intervention in the economy. Functional finance emphasizes the end result of interventionist policies on the economy and is based on three major beliefs:
1. It is the role of government to stave off inflation and unemployment by controlling consumer spending through the raising and lowering of taxes.
2. The purpose of government borrowing and lending is to control interest rates, investment levels and inflation.
3. The government should print, hoard or destroy money as it sees fit to achieve these goals.



104. A. In WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced), red (forbidden). In agriculture, things are, as usual, more complicated. The Agriculture Agreement has no red box, although domestic support exceeding the reduction commitment levels in the amber box is prohibited; and there is a blue box for subsidies that are tied to programmes that limit production.
In order to qualify for the “green box”, a subsidy must not distort trade, or at most cause minimal distortion. These subsidies have to be government funded (not by charging consumers higher prices) and must not involve price support. They tend to be programmes that are not directed at particular products, and include direct income supports for farmers that are not related to (are “decoupled” from) current production levels or prices. “Green box” subsidies are therefore allowed without limits, provided they comply with relevant criteria.

105. A. The theory of critical minimum effort is associated with the name of Harvey Leibenstein. The theory is based on the relationship between the three factors, viz. (i) per capita income, (ii) population growth, and (iii) investment.
Leibenstein identified population also an income depressing factor (or a), whereas investment is an income-generating factor.

106. C. (i) Friedman’s Quantity Theory of Money 1923
(ii) Fisher’s Equation of Exchange 1911
(iii) Cambridge Equation of Exchange 1917
(iv) Don Patinkins Theory of Money 1950

107. B. The Bretton Woods twins refers to the two multilateral organizations created at the Bretton Woods Conference in 1944. They are: The World Bank, The International Monetary Fund.

108. B. Hirschman introduces the concept of backward and forward linkages.
A forward linkage is created when investment in a particular project encourages investment in subsequent stages of production. A backward linkage is created when a project encourages investment in facilities that enable the project to succeed. Normally, projects create both forward and backward linkages. Investment should be made in those projects that have the greatest total number of linkages. Projects with many linkages will vary from country to country; knowledge about project linkages can be obtained through input and output studies.

109. C. Fisher has discovered weighted index number in which he try to calculate best index number because he has taken both current and past years quantity as the base of price index number. The main quality of fisher index number is that it qualify both time reversal test and factor reversal test.

110. C. In monetary economics, the quantity theory of money states that money supply has a direct, proportional relationship with the price level. For example, if the currency in circulation increased, there would be a proportional increase in the price of goods.

111. A. The European Stability Mechanism (ESM) is an important component of the comprehensive EU strategy designed to safeguard financial stability within the euro area.

112. B. Phases of Industrial Revolution:
A. First phase- 2. Rise of Cotton mill
C. Second phase- 1. Rise of steel, chemicals, electricity industries.
B. Third phase- 3. Rise of steam engine
D. Fourth phase- 4. Rise of petrochemicals, jet aircraft, computers

113. A. All statements are correct.

114. C. On the natural side England has in abundance three important commodities - water, iron and coal. Water in Britain’s numerous hilly districts provides the power to drive mills in the early stages of industrialization; the rivers, amplified from 1761 by a developing network of canals, facilitate inland transport in an age where roads were only rough tracks; and the sea, never far from any parts of Britain, makes transport of heavy goods easy between coastal cities.

115. B. The WBG came into formal existence on 27 December 1945 following international ratification of the Bretton Woods Agreements. The Group’s headquarters are in Washington, D.C. It was created in 1944 to help Europe rebuild after World War II. Its mission is defined by two goals - to end extreme poverty by 2030 and to boost prosperity among the poorest 40 percent in low- and middle-income countries. The World Bank comprises of five institutions. They are:
(1) International Bank for Reconstruction and Development (IBRD),
(2) The International Development Association (IDA),
(3) The International Finance Corporation (IFC),
(4) The Multilateral Investment Guarantee Agency (MIGA)
(5) International Centre for Settlement of Investment Disputes (ICSID).

116. A. The IMF is a UN’s specialized agency. IMF was formed in 1944 at the Bretton Woods Conference to promote international economic cooperation, international trade, employment, and exchange-rate stability, including by making financial resources available to member countries to meet balance-of-payments needs.

117. A. The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters and importers conduct their business. The Uruguay Round led to the creation of the World Trade Organization, with GATT remaining as an integral part of the WTO agreements. The agreements fall into a simple structure with six main parts, intellectual property (Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)) was one of them.

118. C.

119. D. In 1971 NEP partially revoked the complete nationalization of Industry.

120. D. Indian planning, ever since its inception, has attempted to meet the following objectives of multi-faceted development: Securing an increase in national income, Increasing the quantum of employment for the maximum possible utilization of manpower and other resources, Speeding up the development of relatively backward regions and promoting balanced regional development and Mitigating the inequalities of income and wealth and regulating the concentration of economic power.

121. D. Liberalization of economy is not a measure of reducing in equalities.
Infact it is a way which connects Indian economy with the world economy.

122. B. The national renewal fund was constituted for the purpose of social security to avoid the worker from the bad effect of technology advancement.

123. B. A letter of credit is a written commitment to pay, by a buyer’s or importer’s bank (called the issuing bank) to the seller’s or exporter’s bank.

124. A. Import Procedure begins with indent because indent importer gives Supply order to exporter.

125. B. Trusteeship principle is one of the third principles of Gandhian economic thought.

126. D. Per capita product (PCP) or Per Capita Income is most appropriate measure of a country’s economic growth.

127. D. Export of all Pulses banned (according to the Economic Survey 2016 - 17) except of Kabuli Channa and up to 10000 MT’s of organic Pulses and Lentils.

128. D.

129. A. Increase of size of working population is one of the positive effects of population growth in an economy. Human resources increases with increase in population.

130. A. The Primary sector of the economy is the change of natural resources into primary products. Agriculture comes in the Primary sector of India’s economy.

1. C. Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies. Since it is relative to other currency so internal price remains unchanged. It causes a country’s exports to become less expensive and imports more expensive. Devaluation is monetary policy tool used by countries that have a fixed exchange rate or semi fixed exchange rate. It is often confused with Depreciation and is the opposite of revaluation.

1. (a) Developmental Expenditure - the expenditure which is incurred on activities directly related to economic development is called developmental expenditure. Expenditure occurred on education, health care, scientific research, infrastructure etc.

Non Developmental Expenditure - Expenditure incurred on general essential services required for normal running of the Govt. is non-developmental expenditure. Expenditure occurred on service relating to general administration, police, judiciary, defense is non-developmental expenditure.