[Mission 2024] STATIC QUIZ, 21 October 2023

Solution: c)

GDP at market prices calculates total value of goods and services produced within a year at market prices.

If it increases, it means entrepreneurs have decided to produce more goods and services.

This can happen even without an increase in actual investment, with the same machinery and labour.

If the size of economy grows proportionately larger each year, while the growth rate is positive, it may not necessarily be increasing.

Solution: b)

Option 2 is incorrect.

Expenditure like pensions, scholarships and UBI are direct transfers of money and do not create any output. They are called Transfer payments. They are one-way payment of money for which no good or service is received in exchange. Transfer payments may be conditional cash transfers or unconditional cash transfers.

Subsidies are not considered transfer payments because they are linked to an economic transaction.

Solution: c)

Teaser loans are those which charge comparatively lower rates of interest in the first few years after which the rates are increased.

Solution: d)

Merchant Banker/Venture Capital Fund Company/stock-exchanges/stock brokers/sub-brokers are regulated by Securities and Exchange Board of India, and Insurance companies are regulated by Insurance Regulatory and Development Authority.

Solution: a)

An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.

Often, angel investors are found among an entrepreneur’s family and friends.

The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.