Description : Open Market Operations refer to (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilization
Last Answer : (3) Purchase and sale of Government securities by RBI Explanation: Open Market Operation (OMO) refers to the buying and selling of government securities in the open market in order to expand or ... in the banking system. A central bank uses OMO as the primary means of implementing monetary policy.
Description : Open Market Operations refer to __________ . (1) Borrowings by Scheduled banks from RBI (2) Lending by Commercial banks to industry (3) Purchase and sale of Government securities by RBI (4) Deposit mobilisation
Last Answer : Purchase and sale of Government securities by RBI
Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."
Description : Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : Debt Servicing
Description : Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through - (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions
Last Answer : (3) issue of securities Explanation: Capital markets provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of ... to raise long-term funds by providing a market for securities, both through debt and equity.
Description : Long-term funds in the capital market can be raised either by borrowing from certain institutions or through (1) issue of note (2) taking loan from Government (3) issue of securities (4) taking loan from foreign institutions
Last Answer : issue of securities
Description : "Globalisation of Indian Economy" denotes : (1) Increase of external borrowings (2) having minimum intervention in economic relations with other countries (3) starting of new business units abroad (4) relaxing the programmes of import substitution
Last Answer : (2) having minimum intervention in economic relations with other countries Explanation: Globalization means integrating the economy of a country with the economies of other countries or world economy ... of a plethora of export incentives opting for exchange rate adjustments for promoting exports.
Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.
Description : “Globalisation of Indian Economy” denotes : (1) Increase of external borrowings (2) having minimum intervention in economic relations with other countries (3) starting of new business units abroad (4) relaxing the programmes of import substitution
Last Answer : having minimum intervention in economic relations with other countries
Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : Non-monetary gold movements
Description : For hannelizing the unaccounted money for productive purposes the Government Introduced the scheme of : (1) Special Bearer Bonds (2) Resurgent. India Bonds (3) Provident Funds (4) Market Loans
Last Answer : (1) Special Bearer Bonds Explanation: The Special Bearer Bonds (Immunities And Exemptions) Act, 1981 laid down the purpose of such bonds as necessary to canalize for productive purposes black money which has ... to issue at par certain bearer bonds to be known as the Special Bearer Bonds, 1991.
Description : For channelising the unaccounted money for productive purposes the Government Introduced the scheme of : (1) Special Bearer Bonds (2) Resurgent India Bonds (3) Provident Funds (4) Market Loans
Last Answer : Special Bearer Bonds
Description : Which of the following would not fit the description of a related-party transaction? a. An unusually large sale of merchandise to the company's best and largest customer. b. Sales of merchandise ... person. d. Loans to corporate officers at market rates of interest with a regular repayment schedule.
Last Answer : An unusually large sale of merchandise to the company's best and largest customer.
Description : Bank Rate refers to the interest rate at which - (1) Commercial banks receive deposits from the public (2) Central bank gives loans to Commercial banks (3) Government loans are floated (4) Commercial banks grant loans to their customers
Last Answer : (2) Central bank gives loans to Commercial banks Explanation: Bank rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are very short in duration.
Description : The main source of long-term credit for a business unit is - (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions
Last Answer : (1) sale of stocks and bonds to the public Explanation: Companies issue securities called stocks and bonds to raise necessary capital which funds the company's daily operations and growth. ... issuing stock to owners called stockholders doesn't require the company's repayment of investor principal.
Description : The main source of long-term credit for a business unit is (1) sale of stocks and bonds to the public (2) borrowing from banks (3) loans from the Government (4) deposits from the public and financial institutions
Last Answer : sale of stocks and bonds to the public
Description : Which one of following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure
Last Answer : (3) Undistributed profits Explanation: For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as its Net Saving. Retained profits are those ... commitments to depreciation provision for various fixed assets, debts, government and to shareholders.
Description : Personal Income' equals - (1) The household sector's in-come (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above
Last Answer : (3) Personal disposable income plus miscellaneous receipts of the Goverment Explanation: Disposable income is total personal income minus personal current taxes (or plus receipts of the government). ... category of personal (or, private) consumption expenditure) yields personal (or, private) savings
Description : Which one of the following represents the Savings of the Private Corporate Sector? (1) Dividends paid to shareholders (2) Total profits of a company (3) Undistributed profits (4) Excess of income over expenditure
Last Answer : Undistributed profits
Description : ‘Personal Income’ equals (1) The household sector’s income (2) Private income minus savings of the corporate sector minus corporation tax (3) Personal disposable income plus miscellaneous receipts of the Goverment (4) All of the above
Last Answer : Personal disposable income plus miscellaneous receipts of the Goverment
Description : In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and ... of various commodities produced (4) the Government controls the allocation of all the factors of production
Last Answer : the Government does not interfere in the free functioning of demand and supply forces in the market
Description : Whenever the government spends more than it collects through revenue, the resulting imbalance is known as : a) Public deficit b) Market deficit c) Government deficit d) Budget deficit
Last Answer : d) Budget deficit
Description : The concept of joint sector implies cooperation between - (1) Public sector and private sector industries (2) State Government and Central Government (3) Domestic and. Foreign Companies (4) None of these
Last Answer : (1) Public sector and private sector industries Explanation: Joint sector industries are owned jointly by the government and private individuals who have contributed to the capital. In joint sector, both ... establish new enterprise. The joint sector is an extension of the concept of mixed economy.
Description : Government owns most of the assets and provides all the services: (a) Private sector (b) Public Sector (c) Organised sector (d) Tertiary sector
Last Answer : (b) Public Sector
Description : The concept of joint sector implies cooperation between (1) Public sector and private sector industries (2) State Government and Central Government (3) Domestic and Foreign Companies (4) None of these
Last Answer : Public sector and private sector industries
Description : Repo transactions are allowed in (a) Government securities / Treasury bills of all maturity ; (b) State Government securities (c) PSU bonds/Private corporate bonds ; (d) All the three
Last Answer : (d) All the three
Description : Full convertibility of a rupeee means - (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply Explanation: The full convertibility of the Indian currency means ... governmental control. Presently, the issue of capital account convertibility is in the discussion stage.
Description : Full convertibility of a rupeee means (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Description : Can you tell me about private education loans vs. government education loans?
Last Answer : If you do not want federal student loans, you can get private student loans through your bank, such as Chase or Citizens Bank. You can also get private loans through Sallie Mae.
Description : Should I get private student loans or government student loans?
Last Answer : Loans can help with the expenses of college. You should look into the loans at both a government and private level to see what has the lowest interest rates.
Description : The aim of Differentiated Interest Scheme was to provide concessional loans to - (1) weaker section of the society (2) Public Sector Industries (3) Public Limited Companies (4) big exports
Last Answer : (1) weaker section of the society Explanation: The Differential Rate of Interest Scheme, formulated in March 1972, offers financial assistance at concessional rate of interest. 0 4% to those who intend taking up any productive activity and has been tailored for persons whose income is very low.
Description : 4. Which of the following is true about the Federal Reserve System (Fed)? a. it is a system of 12 central banks b. its Board of Governors is elected by a vote of the people c. its main policy- ... is the FDIC d. it accepts deposits from the public and makes loans to businesses e. all of the above
Last Answer : a. it is a system of 12 central banks
Description : The aim of Differentiated Interest Scheme was to provide concessional loans to _______. (1) weaker section of the society (2) Public Sector Industries (3) Public Limited Companies (4) big exports
Last Answer : weaker section of the society
Description : Who benefits the most during the inflationary period? (1) corporate servants (2) creditors (3) entrepreneurs (4) government servants
Last Answer : (3) entrepreneurs Explanation: Inflation has the effect of redistributing income because prices of all factors do not decline in the same proportion. Entrepreneurs stand to gain more than wage ... groups. Speculators, hoarders, black marketers and smugglers gain on account of windfall profits.
Description : Who benefits the most during the inflationary period ? (1) corporate servants (2) creditors (3) entrepreneurs (4) government servants
Last Answer : entrepreneurs
Description : Which one of the following is not included in current revenue of the Union Government? (1) Tax revenue (2) Non-tax revenue (3) Loans (4) interest payments
Last Answer : (3) Loans Explanation: Loans are not included in the current revenue of the Union Government.
Description : Which one of the following is not included in current revenue of the Union Government ? (1) Tax revenue (2) Non-tax revenue (3) Loans (4) Interest payments
Last Answer : Loans
Description : Which of the following would not usually be included in the minutes of the board of directors and/or stockholders? a. Declaration of dividends. b. Authorization of long-term loans. c. Authorization of individuals to sign checks. d. The duties and powers of the corporate officers.
Last Answer : The duties and powers of the corporate officers.
Description : A sound capital budgeting technique is based on: A. Cash Flows B. Accounting Profit C. Interest rate on borrowings D. Last dividend paid
Last Answer : A. Cash Flows
Description : A _________ occurs when a government's total expenditure exceed the revenue that it generates, excluding money from borrowings.
Last Answer : Fiscal deficit
Description : World Bank provides loan to the member country: A. From own funds B. From Borrowings C. By Gurantee D. By issuing the dollars E. From (A), (B) and (C)
Last Answer : E. From (A), (B) and (C)
Description : Which of the following transactions is included in the current account balance of the Balance of payments statement? (a) Foreign direct investments. ; (b) Portfolio investments.; (c) External commercial borrowings. ; (d) Dividends earned on portfolio investments
Last Answer : (d) Dividends earned on portfolio investments
Description : 'Golden Handshake Scheme' is associated with - (1) inviting foreign companies (2) private investment in public enterprises (3) establishing joint enterprises (4) voluntary retirement
Last Answer : (4) voluntary retirement Explanation: The voluntary retirement scheme (VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. It is a technique used by companies ... . It is also known as 'Golden Handshake' as it is the golden route to retrenchment.
Description : Golden Handshake Scheme is associated with - (1) Inviting foreign companies (2) Private investment in public enterprises (3) Establishing joint enterprises (4) Voluntary retirement
Last Answer : (4) Voluntary retirement Explanation: A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive ... , and other benefits, and is often accompanied by an accelerated vesting of stock options.
Description : 'Mixed economy' refers to - (1) the co-existence of heavy, small scale and cottage industries (2) the promotion of agriculture as well as cottage industries (3) the co-existence of rich as well as poor (4) the co-existence of public as well as private sector
Last Answer : (4) the co-existence of public as well as private sector Explanation: Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.
Description : "Closed Economy" means : (1) no provision for public sector (2) no provision for private sector (3) economy policy not well defined (4) a country having no imports and exports
Last Answer : (4) a country having no imports and exports Explanation: Closed economy is an economy in which no activity is conducted with outside economies. A closed economy is self-sufficient, meaning that no ... The goal is to provide consumers with everything that they need from within the economy's borders.
Description : In an economy, the sectors are classified into public and private on the basis of - (1) employment conditions (2) nature of economic activities (3) ownership of enterprises (4) use of raw materials
Last Answer : (3) ownership of enterprises Explanation: The classical breakdown of all economic sectors is: primary, secondary and tertiary. However, on the basis of ownership, the sectors are: business sector, private sector (privately run businesses), public sector (state sector) and voluntary sector.
Description : The main feature of a capitalist economy is - (1) Administered prices (2) Public ownership (3) Economic planning (4) Private ownership
Last Answer : (4) Private ownership Explanation: Capitalism is an economic system that is based on private ownership of the means of production and the production of goods or services for profit. Other elements central to capitalism include capital accumulation and often competitive markets.
Description : Mixed Economy means : (1) Promoting both agriculture and industries in the economy (2) Co-existence of public and private sectors (3) Co-existence of rich and poor (4) Co-existence of small and large industries
Last Answer : (2) Co-existence of public and private sectors Explanation: A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ... economies are mixed where the means of production are shared between the private and public sectors.
Description : ‘Mixed economy’ refers to (1) the co-existence of heavy, small scale and cottage industries (2) the promotion of agriculture as well as cottage industries (3) the co-existence of rich as well as poor (4) the co-existence of public as well as private sector
Last Answer : the co-existence of public as well as private sector