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UPSC CDS Indian Economy — practice questions — page 7

Explore 387 free Indian Economy questions in UPSC CDS Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Indian Economy questions and exercises with answers

Showing questions 181–210 of 387.

In barter, both parties must want each other's goods. This requirement is called:Read the answer and worked solution →Because money acts as an intermediate in the exchange process, it is called a:Read the answer and worked solution →Before coins were introduced, Indians used which items as money?Read the answer and worked solution →Modern currency, though of no use in itself, is accepted because it is:Read the answer and worked solution →Who issues currency notes in India on behalf of the central government?Read the answer and worked solution →Bank deposits that can be withdrawn on demand are called:Read the answer and worked solution →A paper instructing a bank to pay a specific amount from one account to another is a:Read the answer and worked solution →Banks in India these days hold about what share of their deposits as cash?Read the answer and worked solution →Banks mediate between depositors with surplus funds and:Read the answer and worked solution →A bank's main source of income is the gap between interest charged on loans and interest:Read the answer and worked solution →An agreement in which a lender supplies money or goods for a promise of future payment is:Read the answer and worked solution →Salim the shoe manufacturer took loans to meet which need before the festival season?Read the answer and worked solution →Swapna, whose groundnut crop failed and whose debt grew, illustrates a:Read the answer and worked solution →An asset the borrower owns and pledges as guarantee until a loan is repaid is:Read the answer and worked solution →Interest rate, collateral, documentation and mode of repayment together form the:Read the answer and worked solution →Megha's house loan of Rs 5 lakh carried an annual interest rate of:Read the answer and worked solution →The village moneylender charged Shyamal five per cent a month, which equals what per year?Read the answer and worked solution →Loans from banks and cooperatives belong to which sector of credit?Read the answer and worked solution →Moneylenders, traders, employers, relatives and friends are which kind of lenders?Read the answer and worked solution →Which body supervises the functioning of formal sources of loans in India?Read the answer and worked solution →What share of loans taken by poor urban households comes from informal sources?Read the answer and worked solution →Catch the informal lendersRead the answer and worked solution →Pop the forms of moneyRead the answer and worked solution →Run the credit numbersRead the answer and worked solution →Slice the money wordsRead the answer and worked solution →Formal or informal creditRead the answer and worked solution →Sort the credit conceptsRead the answer and worked solution →Type the numberRead the answer and worked solution →Money and credit bingoRead the answer and worked solution →A company that owns or controls production in more than one nation is a:Read the answer and worked solution →

Worked practice questions

In barter, both parties must want each other's goods. This requirement is called:

  1. Double coincidence of wants
  2. Common medium of exchange
  3. Standard terms of credit
  4. Bank demand deposit rule
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Correct answer: A. Double coincidence of wants

1. A shoe maker must find a farmer wanting shoes. 2. This is the double coincidence of wants. 3. Money removes the need for it. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._

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Because money acts as an intermediate in the exchange process, it is called a:

  1. Legal tender
  2. Medium of exchange
  3. Store of value
  4. Unit of account
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Correct answer: B. Medium of exchange

1. Everyone prefers payment in money. 2. Money is a medium of exchange. 3. It can be swapped for any commodity. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._

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Before coins were introduced, Indians used which items as money?

  1. Grains and cattle
  2. Shells and beads
  3. Silk and spices
  4. Gold and silver
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Correct answer: A. Grains and cattle

1. Metallic coins of gold, silver and copper came later. 2. Grains and cattle served as money. 3. Punch-marked coins may be 2,500 years old. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._

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