0 of 11 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
Information
No. of Questions – 11
Time – 10 min
You have already completed the Test before. Hence you can not start it again.
Test is loading...
You must sign in or sign up to start the Test.
You have to finish following quiz, to start this Test:
Your results are here!! for" The Tertiary Sector in the Indian Economy - 3 "
0 of 11 questions answered correctly
Your time:
Time has elapsed
Your Final Score is : 0
You have attempted : 0
Number of Correct Questions : 0 and scored 0
Number of Incorrect Questions : 0 and Negative marks 0
-
Not categorized
You have attempted: 0
Number of Correct Questions: 0 and scored 0
Number of Incorrect Questions: 0 and Negative marks 0
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- Answered
- Review
- Question 1 of 11
1. Question
‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to [2015]
CorrectBasel III is a comprehensive set of reform measures which was developed by the Basel Committee on Banking Supervision and to strengthen the regulation, supervision and risk management of the banking sector. These measures aim to:
Improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source; improve risk management and governance; strengthen banks’ transparency and disclosures.IncorrectBasel III is a comprehensive set of reform measures which was developed by the Basel Committee on Banking Supervision and to strengthen the regulation, supervision and risk management of the banking sector. These measures aim to:
Improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source; improve risk management and governance; strengthen banks’ transparency and disclosures.UnattemptedBasel III is a comprehensive set of reform measures which was developed by the Basel Committee on Banking Supervision and to strengthen the regulation, supervision and risk management of the banking sector. These measures aim to:
Improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source; improve risk management and governance; strengthen banks’ transparency and disclosures. - Question 2 of 11
2. Question
With reference to Indian economy, consider the following [2015]
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the above is/are component/components of Monetary Policy?CorrectThe RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and through many other instruments.
IncorrectThe RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and through many other instruments.
UnattemptedThe RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and through many other instruments.
- Question 3 of 11
3. Question
When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen? [2015]
CorrectWhen the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points; the Scheduled Commercial Banks may cut their lending rates.
IncorrectWhen the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points; the Scheduled Commercial Banks may cut their lending rates.
UnattemptedWhen the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points; the Scheduled Commercial Banks may cut their lending rates.
- Question 4 of 11
4. Question
What is/are the purpose/purposes of the ‘Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI? [2016]
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
Select the correct answer using the code given below.Correct(i) With effect from 1st April, 2016, all loans in India shall be priced with reference to Marginal Cost of Funds based Lending Rates (MCLR) which will comprise of :- 1. Marginal Cost of Funds 2. Negative carry on account of CRR 3. Operating Costs 4. Tenor of premium. Banks shall review and publish their MCLR every month on a pre-announced date. Marginal Cost of Funds which will comprise of marginal cost of borrowings and return on networth.
(ii) Both right. Verbatim lifted from RBI’s press statement first paragraph.Incorrect(i) With effect from 1st April, 2016, all loans in India shall be priced with reference to Marginal Cost of Funds based Lending Rates (MCLR) which will comprise of :- 1. Marginal Cost of Funds 2. Negative carry on account of CRR 3. Operating Costs 4. Tenor of premium. Banks shall review and publish their MCLR every month on a pre-announced date. Marginal Cost of Funds which will comprise of marginal cost of borrowings and return on networth.
(ii) Both right. Verbatim lifted from RBI’s press statement first paragraph.Unattempted(i) With effect from 1st April, 2016, all loans in India shall be priced with reference to Marginal Cost of Funds based Lending Rates (MCLR) which will comprise of :- 1. Marginal Cost of Funds 2. Negative carry on account of CRR 3. Operating Costs 4. Tenor of premium. Banks shall review and publish their MCLR every month on a pre-announced date. Marginal Cost of Funds which will comprise of marginal cost of borrowings and return on networth.
(ii) Both right. Verbatim lifted from RBI’s press statement first paragraph. - Question 5 of 11
5. Question
The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context? [2016]
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below.Correct(i) They can enable transfers and remittance through mobile phones. The RBI guidelines say that the payments bank cannot undertake lending activities.
(ii) Mobile phone companies and supermarket eligible. But, Payment banks can’t issue credit card or give loans. Go by eliminating all options with “2”, and you’re left with (b) 1 and 3 only.Incorrect(i) They can enable transfers and remittance through mobile phones. The RBI guidelines say that the payments bank cannot undertake lending activities.
(ii) Mobile phone companies and supermarket eligible. But, Payment banks can’t issue credit card or give loans. Go by eliminating all options with “2”, and you’re left with (b) 1 and 3 only.Unattempted(i) They can enable transfers and remittance through mobile phones. The RBI guidelines say that the payments bank cannot undertake lending activities.
(ii) Mobile phone companies and supermarket eligible. But, Payment banks can’t issue credit card or give loans. Go by eliminating all options with “2”, and you’re left with (b) 1 and 3 only. - Question 6 of 11
6. Question
The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term? [2016]
1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
2. It is an effort to increase RBI’s control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below.Correct(i) Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking.
(ii) 3 is definitely not the purpose, so by elimination the answer is (a).Incorrect(i) Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking.
(ii) 3 is definitely not the purpose, so by elimination the answer is (a).Unattempted(i) Core Banking Solution (CBS) is networking of branches, which enables Customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. Thus CBS is a step towards enhancing customer convenience through Anywhere and Anytime Banking.
(ii) 3 is definitely not the purpose, so by elimination the answer is (a). - Question 7 of 11
7. Question
With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct? [2016]
1. Bitcoins are tracked by the Central Banks of the countries.
2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
3. Online payments can be sent without either side knowing the identity of the other.
Select the correct answer using the code given below.Correct(i) Bitcoin are not maintained by the Central Bank. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger.
(ii) They’re not tracked by any central bank or authority. Both 2 and 3 are right.Incorrect(i) Bitcoin are not maintained by the Central Bank. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger.
(ii) They’re not tracked by any central bank or authority. Both 2 and 3 are right.Unattempted(i) Bitcoin are not maintained by the Central Bank. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger.
(ii) They’re not tracked by any central bank or authority. Both 2 and 3 are right. - Question 8 of 11
8. Question
The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of [2016]
Correct(i) Base Erosion and Profit Shifting (BEPS) is a tax avoidance strategy used by multinational companies, wherein profits are shifted from jurisdictions that have high taxes (such as the United States and many Western European countries) to jurisdictions that have low (or no) taxes (so-called tax havens). The BEPS project is said to be an “attempt by the world’s major economies to try to rewrite the rules on corporate taxation to address the widespread perception that the [corporations] don’t pay their fair share of taxes”.
(ii) BEPS aims to curb the tax evasion by MNCs, hence B is the answer.Incorrect(i) Base Erosion and Profit Shifting (BEPS) is a tax avoidance strategy used by multinational companies, wherein profits are shifted from jurisdictions that have high taxes (such as the United States and many Western European countries) to jurisdictions that have low (or no) taxes (so-called tax havens). The BEPS project is said to be an “attempt by the world’s major economies to try to rewrite the rules on corporate taxation to address the widespread perception that the [corporations] don’t pay their fair share of taxes”.
(ii) BEPS aims to curb the tax evasion by MNCs, hence B is the answer.Unattempted(i) Base Erosion and Profit Shifting (BEPS) is a tax avoidance strategy used by multinational companies, wherein profits are shifted from jurisdictions that have high taxes (such as the United States and many Western European countries) to jurisdictions that have low (or no) taxes (so-called tax havens). The BEPS project is said to be an “attempt by the world’s major economies to try to rewrite the rules on corporate taxation to address the widespread perception that the [corporations] don’t pay their fair share of taxes”.
(ii) BEPS aims to curb the tax evasion by MNCs, hence B is the answer. - Question 9 of 11
9. Question
There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit? [2016]
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.Correct(i) In order to reduce the fiscal deficit, the government needs to increase its earnings and reduce its expenditure. This is done by following methods: Cut down the subsidies; reforms in tax structures; improve profit generated by Public Sector Enterprises and austerity measures.
(ii) Just by applying logic i.e. to reduce deficit, we’ve to increase income and reduce Expenditure.Option Does it increase income Does it reduce Expenditure 1. Reducing revenue expenditure – YES 2. Introducing new welfare schemes – NO 3. Rationalizing subsidies – YES 4. Reducing import duty NO – So, answer is only 1 and 3.
Incorrect(i) In order to reduce the fiscal deficit, the government needs to increase its earnings and reduce its expenditure. This is done by following methods: Cut down the subsidies; reforms in tax structures; improve profit generated by Public Sector Enterprises and austerity measures.
(ii) Just by applying logic i.e. to reduce deficit, we’ve to increase income and reduce Expenditure.Option Does it increase income Does it reduce Expenditure 1. Reducing revenue expenditure – YES 2. Introducing new welfare schemes – NO 3. Rationalizing subsidies – YES 4. Reducing import duty NO – So, answer is only 1 and 3.
Unattempted(i) In order to reduce the fiscal deficit, the government needs to increase its earnings and reduce its expenditure. This is done by following methods: Cut down the subsidies; reforms in tax structures; improve profit generated by Public Sector Enterprises and austerity measures.
(ii) Just by applying logic i.e. to reduce deficit, we’ve to increase income and reduce Expenditure.Option Does it increase income Does it reduce Expenditure 1. Reducing revenue expenditure – YES 2. Introducing new welfare schemes – NO 3. Rationalizing subsidies – YES 4. Reducing import duty NO – So, answer is only 1 and 3.
- Question 10 of 11
10. Question
Which of the following is/are included in the capital budget of the Government of India? [2016]
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments.
3. Loans and advances granted to the States and Union Territories.
Select the correct answer using the code given below.CorrectIncorrectUnattempted - Question 11 of 11
11. Question
‘Global Financial Stability Report’ is prepared by the [2016]
Correct(i) The Global Financial Stability Report (GFSR) is a survey by the IMF staff published twice a year, in the spring and fall. The report draws out the financial ramifications of economic issues highlighted in the IMF’s World Economic Outlook (WEO).
(ii) IMF prepares this report.Incorrect(i) The Global Financial Stability Report (GFSR) is a survey by the IMF staff published twice a year, in the spring and fall. The report draws out the financial ramifications of economic issues highlighted in the IMF’s World Economic Outlook (WEO).
(ii) IMF prepares this report.Unattempted(i) The Global Financial Stability Report (GFSR) is a survey by the IMF staff published twice a year, in the spring and fall. The report draws out the financial ramifications of economic issues highlighted in the IMF’s World Economic Outlook (WEO).
(ii) IMF prepares this report.