561: Which one of the following is NOT an affiliate of the Reserve Bank of India ?
(a) Agricultural Refinance Corporation
(b) Deposit Insurance Corporation
(c) The Industrial Development Bank of India
(d) Unit Trust of India
562: The main reason for law growth rate in India inspite of high rate of saving and capital formation is :
(a) High birth rate
(b) low level of foreign aid
(c) low capital/ out put ratio
(d) high capital / output ratio
Explanation:
Capital / output ratio is the number of units of capital required to produce an unit of output over a given period of time. Low Growth Rate in India, inspite of high rate of savings and capital formation is 'high capital/output ratio'.
563: In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
1. The foreign currency earnings of Indias IT sector
2. Increasing the government expenditure
3. Remittances from Indians abroad
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
Explanation:
A currency crisis is brought on by a decline in the value of a country's currency. This decline in value negatively affects an economy by creating instabilities in exchange rates, meaning that one unit of a certain currency no longer buys as much as it used to in another currency.
Foreign currency earnings and Remittances contribute to the strengthening of the rupee. Hence statement 1 and 3 is correct.
Increasing government Expenditure will have no effect on the the value of currency. Hence statement 2 is not correct.
Source: https://www.thehindu.com/business/Economy/rbi-move-on-remittance-to-help-strengthen-rupee/article3528924.ece#!
564: The largest source of financing the public sector outlay of the Eighth Five year plan Comes from
(a) balance from current revenue
(b) contribution of public enterprises
(c) government borrowings
(d) deficit financing
Explanation:
The largest source of financing the public sector outlay of the Eighth plan comes from deficit financing which is a policy of bridging the gap between governments expenditure and revenue.
565: The New Exim Policy announced in 1992, is for a period of
(a) 3 Years
(b) 4 Years
(c) 7 Years
(d) 5 Years