511: Which of the following pairs is not correct?
(a) Seismograph : Earthquakes
(b) Anemometer : Speed of the wind
(c) Hygrometer : Water vapour content of the atmosphere
(d) Lactometer : Specific gravity of liquids
512: Under which of the following circumstances may 'capital gains' arise?
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to increase in its popularity
Select the correct answer using the codes given below :
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Explanation:
Capital Gain is an increase in the value of a capital asset that gives it a higher worth than the purchase price.
So here 2 and 3 will be correct.
513: The balance of payments of a country is a systematic record of
(a) all import and export transactions of a country during a given period of time, normally a year
(b) goods exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another
Explanation:
Option (A) is the right definition of Balance of Payment.
514: Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Bank
2. Deposit of currency in commercial banks by the public
3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank
Select the correct answer using the codes given below :
(a) 1 only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
Explanation:
When the RBI purchases government securities, money flows out of RBI, this increases the money supply.
So statement 1 is correct.
When currency is deposited by public in commercial banks, than money supply is not going to increase.
So statement 2 is incorrect.
When the Government borrows from RBI, the money flows out as RBI print new money and this leads to increase in the money supply.
So statement 3 is correct.
515: The Reserve Bank of India regulates the commercial banks in matters of
1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding-up of banks
Select the correct answer using the codes given below.
(a) 1, 2 and 3 only
(b) 1 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Explanation:
Merger, expansion and winding up of banks requires RBI's approval
And in case of Liquidity of Assets RBI manages it through its monetary policy.
Hence all statements are correct.