IASbaba’s 60 Day Plan- Prelims Test 2018 ECONOMICS & CURRENT AFFAIRS [Day 18]

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Hello Friends, 

Welcome to Day-18.

Importance of Self – Tracking: Learning from Last Year

Last year, aspirants used to comment their answers in the comment box on daily basis. There were huge participation in discussion. Putting answers in comment box has been very effective to self-track yourself after updating the score. In the end, you can cross check your performance through Disqus profile.

It was highly effective in the last edition of 60 Days that propelled aspirants to monitor their performance and learn through discussion. Let you solve these questions with full honesty and write your result in the comment box. Interact with peers to know your mistakes.

The importance of this initiative stands time-bound and aggressive reverse engineering to learn the concepts. Many of you must be busy with your own strategy but let us tell you honestly that in the last two months, it is very important to revise and consolidate your learning. Just reading won’t suffice.

So, take out few hours from your schedule and make it a revision exercise.

How can you make the best use of it?

Be honest to your effort and do not start competing with XYZ aspirants here just for the sake of marks. It is more important for you to introspect and check your learning than focusing on others. Try to answer the questions in 20 minutes only. 

Do not get into negative feeling that I don’t have enough knowledge to answer these questions. Feel like you are taking the real exam. What would be your response then?

The same will be replicated in UPSC exam. Here, you get marks only and nothing else matters. So, make effort to know the answers to all questions. Do not cheat 😛

DETAILED MICRO ANALYSIS MATRIX SAMPLE– is given here. You can download this and do an assessment for yourself.  DOWNLOAD

• You can copy paste the same format/modify as per your need in Google Spreadsheet and update it on daily basis.
• Feedback talks about daily test results.
• Follow-up talks about daily target achieved from sources and the number of revisions to do/done and dates. Sources column is to ensure that aspirants do not run behind various sources and follow the same throughout.

Are you ready? Let’s start!

[Day 18]: ECONOMICS & TECHNOLOGY AND CURRENT AFFAIRS

Q.1) Which of the following are the measures to control inflation?

1. Enforce the Essential Commodities Act, 1955 & the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities Act, 1980.
2. Price Stabilization Fund (PSF)
3. Higher Minimum Support Price (MSP)

Select the correct answer using the codes given below.

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. All the above

Q.2) Which of the following defines inflationary gap?

1. When the potential GDP is higher than the real GDP, the gap is referred to as a inflationary gap.
2. It is the difference between inflation and deflation.
3. The real GDP exceeding the potential GDP, resulting in an inflationary gap.
4. None.

Q.3) The base year of All-India WPI has been revised from 2004-05 to 2011-12 by the Office of Economic Advisor (OEA), Consider the following statements about new series of WPI.

1. The new series of WPI strives to remove the impact of fiscal policy.
2. A new “WPI Food Index” will be compiled to capture the rate of inflation in food items.
3. The item basket has been revised with inclusion of new items and exclusion of old ones.

Which of the above statements is/are correct?

1. 1 only
2. 1 and 2 only
3. 3 only
4. All the above

Q.4) Which of the following increases the inflation?

1. Increase in the Forex reserve.
2. Higher revenue deficits and fiscal deficits.
3. Increase in crude oil prices.

Select the correct answer using the codes given below.

1. 1 and 3 only
2. 2 only
3. 2 and 3 only
4. All the above

Q.5) Which of the following are the measures to be adopted to recover from recession?

1. Direct and indirect taxes should be cut down.
2. Salaries and wages should be revised by the government.
3. The government usually goes on to follow a dear money supply policy.
4. Tax breaks are announced for new investments in the productive areas, etc.

Select the correct answer using the codes given below.

1. 1, 2 and 3 only
2. 1 and 4 only
3. 1, 2 and 4 only
4. All the above

Q.6) An inflation measure which excludes transitory or temporary price volatility as in the case of some commodities such as food items, energy products etc. It reflects the inflation trend in an economy, is called?

1. Headline inflation
2. Biflation
3. Core inflation
4. None

Q.7) Consider the following statements about Consumer Food Price Index (CFPI).

1. Consumer Food Price Index (CFPI) is a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year.
2. The Department of Consumer Affairs Ministry of Consumer Affairs, Food and Public Distribution started releasing Consumer Food Price Indices (CFPI).
3. Consumer Food Price Indices (CFPI) released for three categories -rural, urban and combined – separately.

Select the correct answer using the codes given below.

1. 1 and 3 only
2. 1 and 2 only
3. 2 only
4. All the above

Q.8) Which of the following relationships are represented by Philips curve?

1. Inflation and unemployment
2. GDP and growth
3. Taxation and revenue receipts
4. Inflation and growth

Q.9) Which of the following factors are responsible for demand pull inflation?

1. Increase in Per capita income
2. Deficit financing
3. Infrastructural deficiencies

Select the code from following:

1. 1 and 2
2. 2 and 3
3. 1 and 3
4. All of the above

Q.10) Which of the following statements are correct regarding ‘Disinflation’?

1. Reduction in the rate of inflation is called disinflation.
2. During disinflation the prices of commodities always goes down.

Select the code from following:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.11) Which of the following are the conditions of Stagflation?

1. High inflation in the market
2. High economic growth
3. High unemployment in the economy

Select the code from following:

1. 1 and 2
2. 2 and 3
3. 1 and 3
4. All of the above

Q.12) Consider the following statements regarding the Monetary policy of India:

1. Monetary Policy is the responsibility of the Finance Ministry.
2. The main aim of the monetary policy in India is to increase growth of the economy.
3. According to monetary policy the inflation has to be maintained in the range of 4% +- 2%.

Which of the above statements are NOT correct?

1. 1 and 2
2. 2 and 3
3. 3 only
4. All of the above

Q.13) Which of the following are instruments of Monetary Policy?

1. Repo Rate
2. Liquidity adjustment Facility
3. Cash Reserve Ratio
4. Open Market Operations

Select the code from below:

1. 1 and 4
2. 2 and 3
3. 1,2 and 4
4. All of the above

Q.14) Which of the following statements correctly explains the Marginal Standing Facility (MSF)?

1. It is the interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government
2. It is a facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank
3. It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.
4. None of the above

Q.15) An increase in the Bank Rate generally indicates that the

1. Central Bank is no longer making loans to commercial banks
2. Central Bank is following an easy money policy
3. Central Bank is following a tight money policy
4. Market rate of interest is likely to fall

Q.16) In the context of Indian economy which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. 1, 2, 3 and 4

Q.17) Consider the following statements with reference to taxation

1. Higher direct taxes help in controlling Inflation in the economy
2. Higher indirect taxes help in controlling the Inflation in the economy

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.18) Which of the following measures would result in an increase in the money supply in the economy?

1. Purchase of government securities from the public by the Central Bank
2. Deposit of currency in the commercial banks by the public
3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank

Select the correct answer using the codes given below:

1. 1 only
2. 2 and 4 only
3. 1 and 3 only
4. 2, 3 and 4

Q.19) Which of the following are not correctly matched?

1. Lorenz Curve – Poverty estimation
2. J Curve – Taxation
3. Laffer Curve – Devalutaion
4. Philip’s Curve – Inflation and uemployment

Select the correct answer:

1. 1 only
2. 1 and 2 only
3. 1, 2 and 3 only
4. All of the above

Q.20) Consider the below statements in regard to WPI and IIP –

1. WPI is published by Ministry of Commerce and Industries, prepared monthly and is touching the price data at wholesale level.
2. The IIP is about industrial production and is published on a monthly basis by the CSO.

Which of the statements given above is correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.21) Consider the following statements regarding “core inflation”:

1. Core inflation is an indicator of long-term trend in the inflation.
2. While calculating core inflation transitory price changes are excluded.

Which of the above statement/s is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q.22) ‘Pulikali’is a recreational folk art from which of the following states?

1. Tamil Nadu
2. Kerala
3. Karnataka
4. Andhra Pradesh

Q.23) Consider the following statements about ‘Sahara Forest Project’

1. It is launched by the countries covered under the European Neighbourhood Policy (ENP)
2. It is funded by the European Union and Norway

Select the correct statements

1. 1 Only
2. 2 Only
3. Both 1 and
4. Neither 1 nor 2

Q.24) Consider the following statements about ‘Kaushal Panjee’

1. It is under the aegis of Ministry of Skill Development and Entrepreneurship
2. It provides a citizen centric end-to-end solution to aid mobilization of candidates for Deen Dayal Upadhaya Grameen Kaushal Yojana
3. It is connected to the Social Economic Caste Census (SECC 2011)

Select the correct statements

1. 1 and 2
2. 1 and 3
3. 2 and 3
4. All of the above

Q.25) Consider the following statements about ‘European Free Trade Association (EFTA)’

1. It is a trade agreement between non-EU countries, members of which are now mostly located in South-eastern Europe
2. They participate in the European Single Market
3. It was signed by the Visegrád Group countries

Select the correct statements

1. 1 Only
2. 2 Only
3. 1 and 3
4. 3 Only

Q.26) Consider the following statements about The Partnership for Land Use Science (Forest-PLUS)

1. It is a joint programme by Ministry of Environment, Forest and Climate Change and United Nations Environment Programme (UNEP)
2. It is aimed at strengthening the capacity for REDD (Reducing Emissions from Deforestation and Forest Degradation) implementation in India

Select the correct statements

1. 1 Only
2. 2 Only
3. Both 1 and 2
4. Neither 1 nor 2

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