IASbaba’s 60 Day Plan- Prelims Test 2018 ECONOMICS & CURRENT AFFAIRS [Day 21]

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Hello Friends, 

Welcome to Day-21.

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 21]: ECONOMICS AND CURRENT AFFAIRS

Q.1) Consider the following statements.

1. The security market of India is regulated by SEBI.
2. The forward market of India is regulated by Forward Market Commission.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.2) Consider the following statements about Financial Stability and Development Council (FSDC).

1. It is structured as a council of regulators.
2. The Union Finance Minister is its chairman.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.3) Which of the following indices are not connected with the BSE?

1. Sensex
2. National Index
3. BSE-500
4. S&P CNX-50

Q.4) Consider the following pairs.

Which of the above pairs is/are correctly matched?

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

Q.5) Consider the following statements about Indian Depository Receipts (IDRs).

1. An IDR is a mechanism that allows foreign investors to invest in Indian listed companies in Indian rupees.
2. IDRs are Indian version of Global Depository Receipts (GDRs).

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.6) Consider the following statements.

1. Angel investors are willing to invest in startup or small companies because they can earn a massive return on their investments if these companies are a success.
2. Venture capitalists are focused on helping startups take their first steps, rather than the possible profit they may get from the business.

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.7) Consider the following statements.

1. A bull increases the number of shares in a stock market activating a general fall in the index.
2. A bear creates a scarcity of shares in the stock market activating a general rise in the share prices and the index.

Which of the above statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. None

Q.8) Which of the following are the characteristics of a ‘Bull’ Market?

1. In a bull market, there is a weak demand and strong supply of securities.
2. Share prices will rise as investors compete to obtain available equity.

Select the code from the following:

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

Q.9) Treasury bills are issued by the RBI on behalf of the government of India. Consider the following statements regarding Treasury bills:

1. Treasury bills are issued through auctions and for a period of 91 days only.
2. State governments are also allowed to issue Treasury bills.
3. Treasury bills are available for a minimum amount of 1 lakh and then in multiples of 25000.

Which of the above statements are NOT correct?

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

Q.10) The basic function of SEBI is to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to. SEBI can be categorized as which of the following types of bodies?

1. Quasi Judicial
2. Quasi Legislative
3. Quasi Executive

Select the code from below:

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

Q.11) Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note. Which of the following can issue a CD?

1. Scheduled Commercial Banks
2. Regional Rural Banks
3. Select All lndia Financial Institutions
4. Business entities

Select the code from following:

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

Q.12) MIBOR refers to Mumbai Interbank Offer Rate. Which of the following statements is/are correct regarding MIBOR?

1. It is the standard reference of interest rates in call money market.
2. MIBOR is calculated by Bombay Stock Exchange (BSE).

Select the code from below:

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

Q.13) Which of the following is/are correct differences between Certificate of Deposit (CD) and Commercial Papers (CP)?

1. CDs are issued by the banks while CPs are issued by corporate.
2. CD is issued for 1 lakh and its multiples while CP is issued for 5 lakh and its multiples.

Select the code from following:

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

Q.14) The Reserve Bank of India calculates the four components of money supply in India. Which of the following components constitutes the Narrow Money (M1)?

1. Currency in the circulation
2. Demand deposits in the bank
3. Post office savings
4. Time deposits in the bank

Select the code from following:

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

Q.15) The concept of “economic convergence” is used in many different domains of economics and business. Consider the below with regard to it –

1. According to this theory/concept, the poorer economies are expected to grow more rapidly than wealthier economies.
2. The concept is alternatively known as ‘Catch Up Effect’.
3. Developing countries with more protectionist and closed economy policies play a role in economic convergence’s manifesting.

Which of the statements above is/are correct?

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

Q.16) Learning Poverty Count (LPC) can be defined as –

1. One which measures the number of children who do not meet the basic learning benchmark.
2. One which measures the gap between the basic learning benchmark and the average scores of those students who did not meet the benchmark.
3. One which measures the count of children who did not get access to basic learning because of poverty.
4. All of the above.

Q.17) Which of the below given pairs describing about Gender indexes is/are matched correctly?

1. Global Gender Gap Index : : World Economic Forum (WEF)
2. Gender Inequality Index (GII) : : United Nations Development Program (UNDP)
3. Social Institutions and Gender Index (SIGI) : : Organisation for Economic Co-operation and Development (OECD)

Choose appropriate code:

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

Q.18) Which of the following would include Foreign Direct Investment in India?

1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment

Select the correct answer using the codes given below:

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

Q.19) Which one among the following sectors has attracted the highest foreign direct investment inflows into India in the last 25 years?

1. Automobile industries
2. Services sector
3. Food processing
4. Special Economic Zones

Q.20) Consider the following statements:

1. Child Sex Ratio is defined as the number of females per thousand males in the age group 0–6 years in a human population.
2. Infant mortality rate (IMR) is the number of deaths of children under one year of age per 1000 live births.
3. Neonatal death is the death of a baby before or during birth after 28 weeks of gestation.

Which of the above statements is/are NOT correct?

1. 1 only
2. 3 only
3. 2 and 3 only
4. None

Q.21) Consider the below statements:

1. Labour force means all persons who are working i.e. it includes only those being engaged in the economic activity.
2. Non-Labour force is that component of population which is not a part of the labor force (i.e. includes all those who are not working).
3. Unemployment can be defined as a state of worklessness for a person who is fit and willing to work at the current wage rate.

Which of the statements given above is/are correct?

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

Q.22) Consider the following statements about ‘Graded Surveillance Measure’

1. It is developed by Reserve Bank of India
2. It is launched in order to enhance market integrity and safeguard interest of investors
3. It is aimed at advising market participants to carry out necessary due diligence while dealing in identified securities

Select the correct statements

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

Q.23) Consider the following statements about ‘Bakhshali manuscript’

1. It was written in Sanskrit
2. It is notable as the evidence of the spread and sharing of ideas in ancient times between India, China and central Asia
3. It is the oldest surviving palm leaf manuscript text

Select the correct statements

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

Q.24) The ‘P5+1’ is composed of the five permanent members of the UN Security Council and which of the following countries?

1. Japan
2. Germany
3. Australia
4. India

Q.25) Konkani language is spoken in which of the following states?

1. Karnataka
2. Maharashtra
3. Kerala
4. Goa

Select the correct code:

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

Q.26) Consider the following statements about ‘Aquatic Rhabdops’

1. It is a non-venomous aquatic snake species
2. It is endemic to Western Ghats

Select the correct statements

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

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