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  • Question
  • Deficit financing leads to inflation in general, but it can be checked if


  • Options
  • A. government expenditure leads to increase in the aggregate supply in ratio of aggregate demand
  • B. only aggregate demand is increased
  • C. all the expenditure is denoted national debt payment only
  • D. All of the above

  • Correct Answer
  • All of the above 


  • Indian Economy problems


    Search Results


    • 1. If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to


    • Options
    • A. increase it
    • B. decrease it
    • C. no impact
    • D. None of the above
    • Discuss
    • 2. ICICI is the name of a


    • Options
    • A. chemical industry
    • B. bureau
    • C. corporation
    • D. financial institution
    • Discuss
    • 3. The condition of indirect taxes in the country's revenue is approximately


    • Options
    • A. 70 percent
    • B. 75 percent
    • C. 80 percent
    • D. 86 percent
    • Discuss
    • 4. Which of the following is not an undertaking under the administrative control of Ministry of Railways?


    • Options
    • A. Container Corporation of India Limited
    • B. Konkan Railway Corporation Limited
    • C. Indian Railways Construction Company Limited
    • D. Diesel Locomotive Works, Varanasi
    • Discuss
    • 5. Gross domestic capital formation is defined as


    • Options
    • A. flow of expenditure devoted to increased or maintaining of the capital stock
    • B. expenditure incurred on physical assets only
    • C. production exceeding demand
    • D. net addition to stock after depreciation
    • Discuss
    • 6. On July 12, 1982, the ARDC was merged into


    • Options
    • A. RBI
    • B. NABARD
    • C. EXIM Bank
    • D. None of the above
    • Discuss
    • 7. Of the gross tax revenue of the Union Government the indirect taxes account for nearly


    • Options
    • A. 70 per cent
    • B. 75 percent
    • C. 65 percent
    • D. 60 percent
    • Discuss
    • 8. In pursuance with the recommendations of Narsimhan Committee, the RBI has framed new guidelines


    • Options
    • A. to govern entry of new private sector banks to make the banking sector more competitive
    • B. to reduce the freedom given to banks to rationalize their existing branch network
    • C. to setup more foreign exchange banks
    • D. to lend more easily for industrial development
    • Discuss
    • 9. Since independence, both development and non-development expenditures have increased; the increase in the former being a little more than in the other. Non-development expenditure involves

      1. interest payments
      2. subsidies
      3. defence
      4. irrigation


    • Options
    • A. I, II
    • B. I
    • C. I, II, III
    • D. II, III, IV
    • Discuss
    • 10. Devaluation of currency will be more beneficial if


    • Options
    • A. prices of domestic goods remain constant
    • B. prices of exports remain constant
    • C. prices of imports remains constant
    • D. prices of exports rise proportionately
    • Discuss


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