IASbaba’s 60 Day Plan- Prelims Test 2018 ECONOMICS & CURRENT AFFAIRS [Day 39]

Archives

Hello Friends, 

Welcome to Day-39.

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 39]: ECONOMICS AND CURRENT AFFAIRS

Q.1) Consider the following statements about exchange rate practiced by India:

1. India practices the ‘dual exchange rate’ i.e. ‘official rate’ and ‘market rate’.
2. The ‘official rate’ determines the ‘market rate’.

Which of the above statements is/are correctly matched?

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

Q.2) Which of the following are examples of export?

1. Money spent on travel by tourists in India
2. Tuition fee paid to universities by international students
3. Outsourcing the hardware supply of a mobile company.

Which of the above statements is/are correctly matched?

1. 1 and 2 only
2. 2 and 3 only
3. All the above
4. None

Q.3) It is the international currency in which the highest faith is shown and is needed by every economy. The strongest currency of the world is one which has a high level of liquidity. The economy with the highest as well as highly diversified exports that are compulsive imports for other countries will also create high demand for its currency in the World. It is always scarce. The above lines describe best, which of the following?

1. Hot currency
2. Hard currency
3. Soft currency
4. Heated currency

Q.4) Which of the following comes under capital account?

1. Purchase of stocks in the USA
2. Gifts, donations and remittances
3. Dividends
4. External Borrowings such as ECB

Select the correct answer using the codes given below.

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

Q.5) Which of the following are the advantages of External Commercial Borrowings (ECBs)?

1. ECBs provide opportunity to borrow large volume of funds
2. The funds are available for relatively long term
3. Interest rate are also lower compared to domestic funds

Select the correct answer using the codes given below.

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

Q.6) Consider the following statements about REER.

1. In India RBI publishes REER index.
2. The base year for calculating index numbers is 2004-05.

Which of the above statements is/are correctly matched?

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

Q.7) Consider the following pairs.

Which of the pairs is/are correctly matched?

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

Q.8) India’s exported goods plus services represent 18.4% of total Indian economic output or Gross Domestic Product. Which of the following commodities contributes highest to the Indian Exports?

1. Gems and precious metals
2. Automobiles
3. Pharmaceuticals
4. Cereals

Q.9) Which of the following refers to Invisible balance in the context of BoP?

1. It refers to import of Capital Goods.
2. It refers to the amount of goods imported in the country on lease.
3. It refers to services and other products that do not result in the transfer of physical object.
4. It refers to the interest paid by importers if they have borrowed money for imports.

Q.10) Who of the following are likely to benefit from devaluation of currency in the country?

1. Exporters
2. Importers
3. Borrowers
4. Lenders

Select the code from following:

1. 1 and 3
2. 2 and 4
3. None of the above
4. 4 only

Q.11) The ‘J curve’ is the time path of a country’s trade balance following a devaluation or depreciation of its currency, under a certain set of assumptions. Which of the following statements regarding ‘J Curve’ are correct?

1. Following depreciation, imports will increase while exports will cease.
2. Following devaluation, country’s trade balance will initially worsens and then improves.
3. Following devaluation, country’s trade balance will initially improve and then worsen
4. None of the above

Q.12) Which of the following is also known as ‘Paper Gold’?

1. Government Securities
2. Bitcoins
3. Gold bonds
4. Special Drawing Rights (SDR) of IMF

Q.13) Which of the following constitutes the FOREX reserve of India?

1. Foreign currency assets
2. Gold
3. SDRs
4. Share holding of Indians in foreign companies

Select the code from following:

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

Q.14) Consider the following statements regarding FOREX reserves in India?

1. FOREX reserves in India are managed by SEBI
2. For the first time in History, the FOREX reserve crossed 4000 Billion mark in India.
3. Inflow of foreign currency and Gold in economy decreases the money supply.

Which of the above statements are correct?

1. 1 and 2
2. 2 only
3. 2 and 3
4. None of the above

Q.15) Reserve Money includes which of the following?

1. Currency in circulation
2. Bank deposits with the RBI
3. Deposits in commercial banks.
4. ‘Other’ deposits with the RBI.

Select the correct answer using the code given below:

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

Q.16) Consider the following in regard to Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) of the rupee:

1. NEER of the rupee is a weighted average of exchange rates before the currencies of India’s major trading partners.
2. When the weight of inflation is adjusted with the NEER, we get the REER of the rupee.

Which of the statements given above is/are correct?

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

Q.17) Which of the following items is not a part of Current Account in a country’s Balance of Payment?

1. Exports of Services
2. Imports of Goods
3. Remittances
4. External commercial Borrowings

Q.18) Consider the following statements with reference to the Convertibility of Indian currency

1. For current account transactions, Indian rupee can be fully converted into any foreign currency
2. India has introduced full convertibility in capital account transactions since 2015

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.19) Consider the following statements with reference to depreciation of a currency

1. It is a fall in the value of domestic currency with respect to other currencies
2. It is done by deliberate government intervention

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.20) Consider the below statements with regard to Depreciation and Devaluation:

1. Devaluation refers to a change in value of a money that has its value set by the country’s government.
2. Depreciation refers to a change in value of a money that has its value determined by market forces generated in the open money market.

Which of the statements given above is/are correct?

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

Q.21) Consider the following statements:

1. Appreciation : : government increasing the exchange rate of its currency against any foreign currency
2. Revaluation : : if a free floating domestic currency increases its value against the value of a foreign currency

Which of the above is/are correctly matched?

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

Q.22) Consider the following statements about ‘LEADS Index’

1. It is developed by NITI Aayog in collaboration with the World Bank
2. It is a composite indicator to assess international trade logistics across states and Union territories

Select the correct statements

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

Q.23) Consider the following statements

1. Badakhshan province of Afghanistan borders China’s Xinjiang
2. Wakhan Corridor separates Tajikistan from Pakistan
3. Uyghurs are a Turkic ethnic group living in East and Central Asia

Select the correct statement

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

Q.24) Which of the following is/are correctly matched?

                  Mountains                      Country

1. Mt Aconcagua                              Chile
2. Mt McKinley                                 United States of America
3. Mt Vinson                                     Canada
4. Mt Carstenz Pyramid                    Indonesia

Select the correct code:

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

Q.25) Consider the following statements about ‘IPrism’

1. It is an initiative for start-ups to protect their Intellectual Property
2. It is launched by the Controller General of Patents, Designs and Trade Marks (CGPDTM)
3. It is supported by Sequoia Capital and NITI Aayog

Select the correct statements

1. 1 Only
2. 1 and 2
3. 2 and 3
4. None of the above

Q.26) The Budapest Convention provides for

1. Criminalisation of conduct, ranging from illegal access, data and systems interference to computer-related fraud and child pornography
2. Procedural law tools to make the investigation of cybercrime and the securing of e-evidence in relation to any crime more effective
3. International police and judicial cooperation on cybercrime and e-evidence

Select the correct statements

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

Download the Solution : Click Here

Kindly Clear Your Cookies and History to access the solution

P.S- Do participate in the comment box and discuss among yourselves. Your feedback, encouragement, suggestions and appreciation matters ?

Post answers HORIZONTALLY not vertically.