INSIGHTS STATIC QUIZ 2020 - 21
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Question 1 of 5
1. Question
‘Primary Deficit’ refers to
Correct
Solution: a)
Primary Deficit is the difference between the current year’s fiscal deficit and the interest paid on the borrowings of the previous year.
Primary Deficit indicates the borrowing requirements of the government, excluding interest. It is the amount by which the total expenditure of a government exceeds the total income. Note that primary deficit does not include the interest payments made. Also, primary deficit shows the borrowing requirements needed for meeting the expenditure of the government.
Primary deficit is measured to know the amount of borrowing that the government can utilize, excluding the interest payments.
Incorrect
Solution: c)
The World’s oldest known natural pearl discov
Solution: a)
Primary Deficit is the difference between the current year’s fiscal deficit and the interest paid on the borrowings of the previous year.
Primary Deficit indicates the borrowing requirements of the government, excluding interest. It is the amount by which the total expenditure of a government exceeds the total income. Note that primary deficit does not include the interest payments made. Also, primary deficit shows the borrowing requirements needed for meeting the expenditure of the government.
Primary deficit is measured to know the amount of borrowing that the government can utilize, excluding the interest payments.
ered at a Neolithic site on Marawah Island, off the coast of Abu Dhabi.
Marawah is a low-lying island off the coast of the Western Region of the Emirate of Abu Dhabi, the United Arab Emirates. The island is 15 km north of the Khor al-Bazm along the Abu Dhabi coastline in the southern Persian Gulf.
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Question 2 of 5
2. Question
A bank may decide to fulfil its Statutory Liquidity Ratio (SLR) obligations in which of the following forms?
- Government security holdings
- Gold holdings or Sovereign Gold Bonds (SGBs)
- Vault Cash
Select the correct answer code:
Correct
Solution: d)
The RBI Act instructs that all commercial banks (and some other specified institutions) in the country have to keep a given proportion of their demand and time deposits (NDTL or net demand and time liabilities) as liquid assets in their own vault. This is called statutory liquidity ratio.
The word statutory here means that it is a legal requirement and liquid asset means assets in the form of cash, gold and approved securities (government securities) or even SGBs.
Incorrect
Solution: d)
The RBI Act instructs that all commercial banks (and some other specified institutions) in the country have to keep a given proportion of their demand and time deposits (NDTL or net demand and time liabilities) as liquid assets in their own vault. This is called statutory liquidity ratio.
The word statutory here means that it is a legal requirement and liquid asset means assets in the form of cash, gold and approved securities (government securities) or even SGBs.
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Question 3 of 5
3. Question
Which of the following is correct regrading ‘double coincidence of wants’?
Correct
Solution: c)
Double coincidence of wants is a situation where two economic agents have complementary demand for each other’s surplus production.
It is an economic phenomenon where two parties each hold an item the other wants, so they exchange these items directly without any monetary medium. This type of exchange is the foundation of a bartering economy.
Incorrect
Solution: c)
Double coincidence of wants is a situation where two economic agents have complementary demand for each other’s surplus production.
It is an economic phenomenon where two parties each hold an item the other wants, so they exchange these items directly without any monetary medium. This type of exchange is the foundation of a bartering economy.
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Question 4 of 5
4. Question
Balance of Payments (BoP) consist of which of the following items?
- Any borrowing of the Government of India from abroad
- Trade Balance
- FDI and FII received annually
Select the correct answer code:
Correct
Solution: d)
BoP consists of current account and capital account.
Current account includes trade, invisibles, remittances etc.
Capital account includes borrowings and long-term investments/debts of residents/foreigners with India.
Capital inflows like FDI, FII help bridge the trade deficit and neutralize BoP.
Incorrect
Solution: d)
BoP consists of current account and capital account.
Current account includes trade, invisibles, remittances etc.
Capital account includes borrowings and long-term investments/debts of residents/foreigners with India.
Capital inflows like FDI, FII help bridge the trade deficit and neutralize BoP.
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Question 5 of 5
5. Question
Which of the following is/are part of the Personal Disposable Income?
- Non-tax Payments such as fines
- Corporate Tax.
- Personal Tax Payments.
- Net Interest payments made by households
Select the correct answer code:
Correct
Solution: d)
None of them are part of Personal Disposable Income.
In economics, personal income (PI) refers to an individual’s total earnings from wages, investment enterprises, and other ventures. It is the sum of all the incomes received by all the individuals or household during a given period.
If we deduct the Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from PI, we obtain what is known as the Personal Disposable Income.
Personal Disposable Income (PDI) ≡ PI – Personal tax payments – Non-tax payments.
Incorrect
Solution: d)
None of them are part of Personal Disposable Income.
In economics, personal income (PI) refers to an individual’s total earnings from wages, investment enterprises, and other ventures. It is the sum of all the incomes received by all the individuals or household during a given period.
If we deduct the Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from PI, we obtain what is known as the Personal Disposable Income.
Personal Disposable Income (PDI) ≡ PI – Personal tax payments – Non-tax payments.
