1000 Best Indian Economy MCQs
Q241). What is the effect of deficit financing on economy?
a).inflation
b).Deflation
c).Depression
d).Recession
Correct Answer:
inflation
Explanation:
Q242). Notes on which denomination has the portrait of Mahatma Gandhi printed on them?
a).1000 rupee
b).500 rupee
c).100 rupee
d).All of the above
Correct Answer:
All of the above
Explanation:
Q243). Temporarily inflation can be checked by
a).Decrease in money supply
b).Increase in wages
c).Decrease in taxes
d).Reduction in taxes
Correct Answer:
Decrease in money supply
Explanation:
Q244). Which of the follow ing is not a direct tax?
a).Income tax
b).Wealth tax
c).Sales tax
d).Estate duty
Correct Answer:
Sales tax
Explanation:
Q245). Which of the following best defines free trade?
a).Imports are discouraged
b).There are no restriction on
exports/imports
c).There are no duties levied on
export
d).Imported goods are made duty
free
Correct Answer:
There are no restriction on
exports/imports
Explanation:
Q246). Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to
a).80 percent
b).83 percent
c).90 percent
d).100 percent
Correct Answer:
100 percent
Explanation:
Q247). Which of following factors contribute to inflation?
a).20 per cent increase in prices
of agricultural commodities
b).20 per cent increase in money
supply
c).20 per cent fall in the
production of industrial
products
d).None of the above
Correct Answer:
20 per cent increase in money
supply
Explanation:
Q248). Which of the following is the most appropriate cause of exports surplus?
a).Country’s exports promotion value
b).Country’s stringent import policy
c).Developments in national and international markets
d).None of the above
Correct Answer:
Developments in national and international markets
Explanation: