Q.1 The term Fiscal deficit means- A) Total receipts minus expenditure B) Total receipts minus interest payments on external debt C) Revenue receipts minus expenditure D) Revenue receipts minus expenditure Ans. A Q.2 The functions of the Reserve Bank of India are- 1. Issuing all notes & coins 2. Distributing all notes & coins 3. Formulating monetary policy 4. Acting as agent of govt in respect of India’s membership of the IMF. Codes: A) 1,2,3 B) 1,2,3,4 C) 1,2,4 D) 1,4 Ans. B Q.3 What do you understand by Bear Raid? A) An attempt to bring down the price of strong short selling. B) Simultaneous buying of shares & debentures in view of getting more values in near future. C) Higher rate of price paid for particular govt share or debenture. D) Any of the above Ans. A Q.4 The foreign exchange of India includes I. Gold II. SDRs III. Foreign currencies Codes: A) I & II B) II & III C) I & III D) All are correct Ans. D Q.5 The South Asia Free Trade Agreement(SAFTA) was introduced with a view of levying how much customs duty for trading any product within the SAARC zone? A) 5% B) 4% C) 2% D) No custom duty Ans. D Q.6 Many times we read a term ‘Tax Heaven” in newspapers. What does it mean? I) It is a country where certain taxes are levied at a very low rate II) It is a country where people can dump their illegal money without any problem III) It is a place where foreigners can work without paying any tax on their income. Codes: A) I only B) II & III C) I & III D) All are correct Ans. A Q.7 Which of the following are functions of RBI in India? 1. Issuance of currency notes 2. To facilitate external trade & payment & developing a foreign exchenge market in India. 3. Taking loans/credit from world bank/IMF & ADB etc. & reallocating it for various activities decided by the Govt. of India. 4. Formulation & monitoring the monetary & credit policy. Codes: A) 1,2,4 B) 1,2,3,4 C) 3 & 4 D) 4 only Ans. A Q.8 ‘Sub Prime Lending’ is a term applied to the loans made to A) Those borrowers who do not have a good credit history. B) Those who wish to take loan against the mortgage of tangible assets. C) Those who have a good credit history & are known to bank since 10 yrs. D) None of the above. Ans. A Q.9 A National Development Fund was created by the Govt. of India a few yrs ago. What was the purpose of the fund? I. Boost investment in social sector projects to promote education, healthcare & employment. II. Capital investments in selected profitable PSEs to yield adequate returns. III. To fund revision in pay structure of central Govt. employees Codes: A) I only B) II & III C) I & III D) All are correct Ans. A Q.10 For which one of the following purposes, the Govt has launched the Rajiv Awas yojana? A) To provide affordable houses to people living BPL. B) To provide affordable houses to rural people. C) To provide affordable houses to minorities. D) To provide affordable houses to slum dwellers & the urban people. Ans. D