Mock Test-4 (Paper-1) (Question 51-100)

Total Questions: 50

11. With reference to the Indian economy, consider the following statements:

1. 'Commercial Paper' is a short-term unsecured promissory note.

2. 'Certificate of Deposit' is a long-term instrument issued by the Reserve Bank of India to a corporation.

3. 'Call Money' is a short-term finance used for interbank transactions.

4. 'Zero-Coupon Bonds' are the interest bearing short-term bond issued by the Scheduled Commercial Banks to corporations.

Which of the statements given above is/are correct?

Correct Answer: (a) 1 and 2 only
Solution:
  • Certificate of deposit is a short term debt instrument. #2 is wrong since it says 'long term instrument'. This eliminates (a) and (d).
  • #3: Call money is a short term finance for interbank transactions that is correct. So, Answer is (c).

12. The National Income of a country is

Correct Answer: (b) sum total of factor incomes
Solution:National income is the sum total of wages, rent, interest, and profit earned by the factors of production of a country in a year. Thus it is the aggregate values of goods and services rendered during a given period counted without duplication.

13. The concept of Economic Planning in India is derived from which country?

Correct Answer: (c) Russia
Solution:The concept of Economic planning in India is derived from Russia.

14. The Cash Reserve Ratio refers to

Correct Answer: (b) the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI
Solution:Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.

The CRR (4 per cent of NDTL) requires banks to maintain a current account with the RBI with liquid cash.

While ensuring some liquid money against deposits is the primary purpose of CRR, its secondary purpose is to allow the RBI to control liquidity and rates in the economy.

15. Which one of the following is a raw material oriented industry?

Correct Answer: (c) Petroleum industry
Solution:Crude oil is the basic raw material upon which all refinery processes are founded. Raw material oriented industries those industries that are having their locations stick close to source of raw material.

"Raw material" denotes materials in minimally processed or unprocessed in states e.g. raw later, crude oil, cotton, coal etc.

Sugar Industry: It subsumes the production processing and marketing of sugar.

16. In a given year in India, official poverty lines are higher in some states than in other because

Correct Answer: (b) Price levels vary from state to state
Solution:
  • Poverty lines are estimated using the original state-specific poverty lines identified by the Expert Group and updating them to 2004-2005 price using the Consumer Price Index of Agriculture Laborer's (CPIAL) for rural poverty lines and Consumer Price Index for Industrial Workers (CPIIW) for urban lines.
  • So, (b) : price levels is the most appropriate choice.

17. Match List I with List II and select the correct answer using the code given below the Lists:

List-I (Physical quantity)List-II (Physical quantity)
A. Distance1. Mole
B. Amount of material2. Coulomb
C. Amount of electrical charge3. Light year
D. energy4. Watt hour

 

Code:ABCD
(a)3124
(b)3214
(c)4213
(d)4123
Correct Answer: (a)
Solution:Large distance is measured in light year. Amount of a material is measured by mole. Amount of electrical charge is measured in coulomb. Energy is measured in watt hour.

18. .

The displacement (x)-time (t) graph given above approximately represents the motion of a

Correct Answer: (b) simple pendulum immersed in water
Solution:When a simple pendulum immersed in water then its oscillations are damped and its wave is cosine wave.

19. Water is a good coolant and is used to cool the engines of cars, buses, trucks etc. It is because water has a

Correct Answer: (a) high specific heat
Solution:Water has a high specific heat.

20. When a solid is heated, it turns directly into a gas. This process is called

Correct Answer: (c) Sublimation
Solution:Sublimation is the transition of a substance directly from the solid to the gas phase without passing through the intermediate liquid phase.