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30th Sep, 2021 Current Affairs Quiz


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Q1. Predatory pricing policy is designed to

A. Drive competitors out of business

B. Maximise profits

C. Encourage entrants into the market

D. Attain least cost output


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Q2. RBI has around $480 billion of Forex reserves. It is acquired by the RBI for which of the following reasons

1) To import essentials for economic and social security

2) To gain external account security

3) To deter speculations

4) To enjoy favourable credit rating

Which of the above statements is/are correct

A. 1, 2, 3

B. 1, 3, 4

C. 2, 3, 4

D. 1, 2, 3, 4


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Q3. Phantom FDI sometimes in news is described as

A. Investments done by high net worth individuals

B. Investments done in green field projects

C. Investments that pass through empty corporate shells d

D. None of the above


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Q4. Consider the following statements regarding ‘Treasury Bills’

1) T-bills are short term securities issued on behalf of the government by the RBI and are used in managing short term liquidity needs of the government.

2) T-Bills are issued on discount to face value, while the holder gets the face value on maturity.

3) T-Bills are issued by both Central government and State government in India

Which of the above statements is/are correct:

A. 1, 2 only

B. 2 and 3 only

C. 1, 2, 3

D. 1, 3


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Q5. In an open economy without government intervention, trade deficit can be financed by

A. Foreign institutional investment

B. Domestic consumption

C. Monetary expansion

D. All of the above

Which of the above statements is/are correct:


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Q6. Consider the following statements about ‘Fiat Money’

1) It is a currency that a government has declared to be legal tender

2) It is backed by a physical commodity

3) Its value increases during hyperinflation.

Select the incorrect code:

A. 1 only

B. 2, 3

C. 1, 3

D. 1, 2, 3


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Q7. Consider the following statements

1) The Reserve Bank of India functions as the custodian and manager of forex reserves.

2) Majority of India’s foreign currency reserves are deposited in foreign central banks.

3) Under the Liberalised Remittances Scheme, individuals from India are allowed to remit up to $25000 every year to another country for investment and expenditure.

Which of the above statements is/are incorrect

A. 1, 2

B. 1, 3

C. 2, 3

D. 2 only


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Q8. Consider the following statements regarding Financial Sector Regulatory Appointment Search Committee (FSRASC)

1) FSRASC recommends names for the appointment of RBI Governor and chairman of SEBI

2) FSRASC is headed by Finance Secretary.

Which of the above statements is/are correct:

A. 1 only

B. 2 only

C. both 1 and 2

D. Neither 1 nor 2


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Q9. Under ‘Import substitution’:

1) Government protects the domestic industries from foreign competition

2) Exports are discouraged since they reduce domestic consumption and thus production

Select the correct answer code:

A. 1 only

B. 2 only

C. both 1 and 2

D. Neither 1 nor 2


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Q10. A closed economy is likely to have which of the following characteristics

A. Fiscal deficit would be zero.

B. The central bank does not control money supply.

C. The government does not have a right to print currency

D. Balance of Payments is zero

Select the correct answer code: