Budget Deficit−Government Market borrowings and liabilities
Step-by-Step AI Explanation
Verified Method
Primary deficit is calculated as Fiscal Deficit minus Interest Payments. Hence, the correct formula is $\text{Primary Deficit} = \text{Fiscal Deficit} - \text{Interest Payment}$. Option (a) is incorrect because it gives the overall deficit concept, not primary deficit. Option (c) is not a valid definition. Option (d) is also incorrect.
Q14mcq
2016 Demonetization of currency includes denominations of :
a.
` 500 and ` 1000
Correct Answer
b.
` 200 and ` 500
c.
` 1000 and ` 2000
d.
Both (a) and (b)
Step-by-Step AI Explanation
Verified Method
The 2016 demonetization in India included the denominations of ₹500 and ₹1000. These were declared invalid legal tender on 8 November 2016. Hence, option (a) is correct. Options (b) and (c) are wrong because those denominations were not demonetized in 2016.
Q15mcq
The core of the classical theory of employment is __________.
a.
Law of Diminishing Returns
b.
Law of Markets
Correct Answer
c.
Law of Demand
d.
Law of Consumption
Step-by-Step AI Explanation
Verified Method
The core of the classical theory of employment is the Law of Markets, also known as Say's Law. It states that supply creates its own demand, implying that the economy tends toward full employment. Therefore, option (b) is correct. The other options are not the central principle of classical employment theory.
Q16mcq
International Monetary Fund was an outcome of __________.
a.
Bretton Woods Conference
Correct Answer
b.
Pandung Conference
c.
Singapore Conference
d.
Doha Conference
Step-by-Step AI Explanation
Verified Method
The International Monetary Fund (IMF) was established as an outcome of the Bretton Woods Conference held in 1944. This conference laid the foundation for post-war international economic cooperation. Therefore, option (a) is correct. The other conferences mentioned are not related to the founding of the IMF.
Q17mcq
Primary sector is __________.
a.
Construction
b.
Trade
c.
Industry
d.
Agriculture
Correct Answer
Step-by-Step AI Explanation
Verified Method
The primary sector refers to activities that are directly dependent on natural resources, such as agriculture, forestry, fishing, and mining. Among the options, agriculture is the correct example of the primary sector. Therefore, option (d) is correct. Construction, trade, and industry belong to other sectors.
Q18mcq
Components of Balance of Payments of a country include the :
a.
Official Settlement account
b.
Capital account
c.
Current account
d.
All of the above
Correct Answer
Step-by-Step AI Explanation
Verified Method
The Balance of Payments of a country includes the current account, capital account, and official settlement account. Since all the given components are part of the Balance of Payments, option (d) All of the above is correct.
Q19mcq
SAARC meets once in __________ years.
a.
2
b.
5
c.
3
d.
4
Correct Answer
Step-by-Step AI Explanation
Verified Method
SAARC summits are generally held once in 4 years. Therefore, option (d) is correct. The other choices do not match the usual interval of SAARC meetings.
Q20mcq
NABARD was started in __________.
a.
July 1982
Correct Answer
b.
July 1992
c.
July 1962
d.
July 1972
Step-by-Step AI Explanation
Verified Method
NABARD was established in July 1982. It stands for the National Bank for Agriculture and Rural Development and was created to promote rural credit and agricultural development. Hence, option (a) is correct. The other dates are incorrect.
Q21short answer
Define the term ‘Inflation’.
Step-by-Step AI Explanation
Verified Method
Inflation is a continuous and sustained rise in the general price level of goods and services in an economy over a period of time.
Q22short answer
Define National Income.
Step-by-Step AI Explanation
Verified Method
National income is the total value of all final goods and services produced by the normal residents of a country in one year, measured at market prices.
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