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UPSC CSE Indian Economy — practice questions — page 2

Explore 387 free Indian Economy questions in UPSC CSE 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 31–60 of 387.

Economic exchanges made without the mediation of money are called:Read the answer and worked solution →Barter exchange presumes the rather improbable:Read the answer and worked solution →The first and foremost function of money is to act as a:Read the answer and worked solution →A general rise in the price level means which property of money has fallen?Read the answer and worked solution →Because money is not perishable and is accepted at any time, it serves as a:Read the answer and worked solution →India got its central bank, the Reserve Bank of India, in which year?Read the answer and worked solution →Currency issued by the central bank, the basis for credit creation, is called:Read the answer and worked solution →The Reserve Bank of India is the custodian of the country's:Read the answer and worked solution →The gap between the interest banks pay depositors and charge borrowers is the:Read the answer and worked solution →Deposits that commercial banks keep with the RBI, plus their cash, are called:Read the answer and worked solution →For a bank, the main liability is its:Read the answer and worked solution →A bank's net worth equals:Read the answer and worked solution →The percentage of deposits a bank must keep as cash reserves is the:Read the answer and worked solution →Reserves that banks must hold in liquid form in the short term are set by the:Read the answer and worked solution →With a CRR of 20 per cent, reserves of Rs 100 can support total deposits of:Read the answer and worked solution →Because it stands ready to lend to banks at all times, the central bank is called the:Read the answer and worked solution →Moral suasion and margin requirements are which kind of monetary policy tool?Read the answer and worked solution →Buying and selling of government bonds by the RBI in the open market is called:Read the answer and worked solution →When the RBI buys a government bond in the open market, the money supply:Read the answer and worked solution →The rate at which the RBI lends money through a repurchase agreement is the:Read the answer and worked solution →The rate at which the RBI withdraws money by selling securities with a buy-back agreement is the:Read the answer and worked solution →The rate at which the RBI gives loans to commercial banks is called the:Read the answer and worked solution →Catch the quantitative toolsRead the answer and worked solution →Pop the RBI functionsRead the answer and worked solution →Run the banking numbersRead the answer and worked solution →Slice the banking wordsRead the answer and worked solution →Asset or liabilityRead the answer and worked solution →Sort the money termsRead the answer and worked solution →Type the numberRead the answer and worked solution →Money and banking bingoRead the answer and worked solution →

Worked practice questions

Economic exchanges made without the mediation of money are called:

  1. Barter
  2. Credit
  3. Trade
  4. Deposit
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Correct answer: A. Barter

1. Rice swapped directly for cloth is an example. 2. Such exchanges are barter. 3. They need a double coincidence of wants. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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Barter exchange presumes the rather improbable:

  1. Perfectly fixed price level
  2. Double coincidence of wants
  3. Single common unit of account
  4. Permanent store of all value
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Correct answer: B. Double coincidence of wants

1. Each party must want exactly what the other offers. 2. This is the double coincidence of wants. 3. Search costs rise with more people. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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The first and foremost function of money is to act as a:

  1. Medium of exchange
  2. Unit of account
  3. Store of value
  4. Standard of debt
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Correct answer: A. Medium of exchange

1. It smooths transactions between people. 2. Money is first a medium of exchange. 3. It also serves as unit of account and store of value. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._

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Current AffairsOrganisationsPlanning And EconomyIndian PolityAgricultureIndependent IndiaColonial IndiaModern Indian History