Question 1

Which among following is NOT an implication of devaluation?

Accepted Answer

The answer of Which among following is NOT an implication...

Question 2

Which among following is an implication of revaluation?

Accepted Answer

Revaluation of a currency makes the country's exports more expensive and imports cheaper, which can lead to a reduction in the current account surplus by decreasing exports and increasing imports.

Question 3

Devaluation leads to

Accepted Answer

Devaluation of a currency makes imports more expensive, which can lead to increased demand for domestically produced goods, potentially causing inflation due to higher demand and increased costs of imported goods. It can also affect interest rates as the central bank may adjust them to control inflation or stabilize the currency.

Question 4

PDS Stands for:

Accepted Answer

PDS stands for Public Distribution System, which is a government-sponsored chain of shops entrusted with the work of distributing basic food and non-food commodities to the needy at subsidized prices.

Question 5

Agricultural Credit is given by.

Accepted Answer

Agricultural credit in India is provided by various institutions including co-operatives, Regional Rural Banks (RRBs), and the National Bank for Agriculture and Rural Development (NABARD), making all of the above correct options.

Question 6

India's Green revolution was most successful in …………Production:

Accepted Answer

The Green Revolution in India was most successful in increasing the production of wheat, particularly in the northwestern regions like Punjab and Haryana.

Question 7

The worst form of land tenurs system was…………………….

Accepted Answer

The Zamindari system was considered the worst form of land tenure system because it allowed zamindars (landlords) to collect rents from peasants and keep a portion for themselves, often leading to exploitation and high levels of peasant debt. This system was heavily criticized for its oppressive nature towards the peasants.

Question 8

When the first industrial policy was introduced ?

Accepted Answer

The first industrial policy of independent India was introduced in 1948, setting the initial framework for the country's approach to industrial development.

Question 9

Import quota is :

Accepted Answer

An import quota is a type of non-tariff trade barrier that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.

Question 10

Balance of payments must always balance because:

Accepted Answer

The balance of payments must always balance due to the accounting identity that ensures all transactions are recorded as debits and credits, maintaining equilibrium.

Question 11

Trade Policy measures for correction of balance of payments disequilibrium include of export promotion:

Accepted Answer

Trade policy measures for correcting a balance of payments disequilibrium include both export promotion and import control. Export promotion helps increase foreign exchange earnings, while import control reduces the outflow of foreign exchange, thereby helping to correct the imbalance.

Question 12

In calculating India's balance of payments position, we must:

Accepted Answer

The answer of In calculating India's balance of payments position,...

Quiz 2: Economic Policies and Public Finance