Indian Economy MCQs

21. With reference to the investment markets, how the seed capital is different from venture capital?
1. While seed capital is needed for starting off a business venture, venture capital is needed when business is up and running
2. While investors of seed capital are called Angel Investors, the investors of venture capital are called business incubators
3. While seed capital can be raised for small businesses, venture capital is generally meant for big businesses
Choose the correct statements from the codes given below:

[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 3
[D] 1, 2 & 3

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22. Consider the following:
1. Option
2. Equity Swap
3. Future
Which among the above is / are called derivative instruments in Capital Markets?

[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3

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23. With reference to the newly launched Kisan Vikas Patra (KVP), which among the following is / are correct statements?
1. The KVP certificates can be issued in single as well as joint names
2. The KVP can be transferred from one person to any other person, multiple times
3. The KVP can be transferred from one post office to another
4. One can pledge the KVP certificates as security to avail loans
5. One can encash the KVP only after a lock-in period of 2.5 years
Select the correct option from the codes given below:

[A] Only 1, 2 & 3
[B] Only 1, 2, 3 & 4
[C] Only 1, 4 & 5
[D] 1, 2, 3, 4 & 5

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24. Which of the following is not a part of Broad Money in India?

[A] Demand Deposits with Banks
[B] Currency with the Public
[C] Time Deposits with Banks
[D] Banks’ deposits with RBI

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25. With reference to agriculture in India, which among the following is / are correct statements:
1. India produces more food grains than fruits & vegetables
2. Indian farmers use higher amount of agrochemicals in comparison to developed countries
Which among the above is / are correct statements?

[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2

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26. What happens when a foreign bank operating in India does not meet its priority sector targets?

[A] It can deposit amount equivalent to the shortfall in Rural Infrastructure Development Fund
[B] It can deposit amount equivalent to the shortfall in SIDBI
[C] It can deposit amount equivalent to the shortfall in RBI
[D] It can lend amount equivalent to the shortfall to domestic banks

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27. Which among the following is / are the activities of the Business Correspondents?
1. Recovering the principal or interest of small value deposits
2. Sale of micro insurance products
3. Selling mutual fund products
4. Selling Pension products
5. Receipt and delivery of small value remittances
Choose the correct answer from the codes given below:

[A] 1, 2, 3 & 4
[B] 1, 2, 3 & 5
[C] 1, 2, 3, 4 & 5
[D] 2, 3, 4 & 5

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28. The administrative price mechanism (APM) is applicable for which of the following commodities in India?

Crude Oil
Natural Gas
Gasoline

Select the correct option from the codes given below:

[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] Only 2

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29. Some of the accounts in banks are classified as "Special Mention Accounts". What are these accounts?

[A] The saving bank accounts which are paid higher interests on balance
[B] The loans which have become bad loans
[C] The loans which may become bad loans in future
[D] The loans on which principal has been paid back but interest is yet to be received

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30. In recent times, the concept of “plug-and-play” projects was making news. Consider the following statements with this respect:
1. All statutory clearances will be obtained by government before awarding the project
2. Plug and Play model ensures that infrastructure projects don’t get delayed
Which among the above is / are correct statements?

[A] Only 1
[B] Only 2
[C] Both 1 & 2
[D] Neither 1 nor 2

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