Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

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Total Questions

Practice Questions

Page 60 of 111
Question #1181
The 'SAARC Preferential Trading Arrangement' became operational in which year?
A. 1990
B. 2000
C. 2005
D. 1995
Discuss
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Correct Answer: Option D

Explanation:
SAPTA became operational in 1995.
This question belongs to: Economy GK Economy Set 1
Question #1182
The 'South Asian Free Trade Area' agreement came into force in which year?
A. 2006
B. 2004
C. 2010
D. 1995
Discuss
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Correct Answer: Option A

Explanation:
SAFTA came into force in 2006.
This question belongs to: Economy GK Economy Set 1
Question #1183
The 'BIMSTEC' grouping includes countries from:
A. Africa
B. South Asia and Southeast Asia
C. Europe
D. Latin America
Discuss
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Correct Answer: Option B

Explanation:
BIMSTEC includes countries from South Asia and Southeast Asia around the Bay of Bengal.
This question belongs to: Economy GK Economy Set 1
Question #1184
The 'International Financial Services Centre' in India is located at:
A. GIFT City, Gandhinagar
B. Bengaluru
C. Mumbai
D. Hyderabad
Discuss
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Correct Answer: Option A

Explanation:
India's first IFSC is in GIFT City, Gandhinagar, Gujarat.
This question belongs to: Economy GK Economy Set 1
Question #1185
The 'Liberalised Remittance Scheme' of RBI allows resident individuals to remit up to how much per financial year?
A. USD 1,00,000
B. USD 10,000
C. USD 25,000
D. USD 2,50,000
Discuss
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Correct Answer: Option D

Explanation:
Under LRS, resident individuals can remit up to USD 2,50,000 per financial year for permitted transactions.
This question belongs to: Economy GK Economy Set 1
Question #1186
The 'Know Your Customer' norms are aimed primarily at:
A. promoting bank loans
B. preventing money laundering and fraud
C. increasing bank profits
D. reducing interest rates
Discuss
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Correct Answer: Option B

Explanation:
KYC norms help banks verify customer identity to prevent money laundering and fraud.
This question belongs to: Economy GK Economy Set 1
Question #1187
The 'Financial Action Task Force' is an intergovernmental body that combats:
A. trade deficits
B. inflation
C. money laundering and terrorist financing
D. unemployment
Discuss
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Correct Answer: Option C

Explanation:
FATF combats money laundering and terrorist financing.
This question belongs to: Economy GK Economy Set 1
Question #1188
The 'shadow banking system' refers to:
A. regular commercial banks
B. public sector banks
C. foreign banks
D. non-bank financial intermediaries conducting bank-like activities
Discuss
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Correct Answer: Option D

Explanation:
Shadow banking includes non-bank financial intermediaries that perform bank-like credit intermediation.
This question belongs to: Economy GK Economy Set 1
Question #1189
The 'systemically important financial institution' is one whose failure could:
A. trigger a systemic crisis
B. reduce inflation
C. benefit other banks
D. have no effect on the economy
Discuss
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Correct Answer: Option A

Explanation:
A systemically important institution is too big or interconnected to fail without causing systemic risk.
This question belongs to: Economy GK Economy Set 1
Question #1190
The 'Basel Committee on Banking Supervision' is headquartered at:
A. Washington D.C.
B. Basel, Switzerland
C. London
D. Geneva
Discuss
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Correct Answer: Option B

Explanation:
The Basel Committee is headquartered at the Bank for International Settlements in Basel, Switzerland.
This question belongs to: Economy GK Economy Set 1
Question #1191
The 'Bank for International Settlements' was established in which year?
A. 1930
B. 1919
C. 1971
D. 1944
Discuss
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Correct Answer: Option A

Explanation:
The Bank for International Settlements was established in 1930.
This question belongs to: Economy GK Economy Set 1
Question #1192
The 'Special Drawing Rights' allocated by IMF are recorded in which part of a country's balance of payments?
A. Current account
B. Visible trade
C. Invisibles
D. Capital account or reserve assets
Discuss
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Correct Answer: Option D

Explanation:
SDR allocations are recorded as reserve assets in the balance of payments.
This question belongs to: Economy GK Economy Set 1
Question #1193
The 'International Bank for Reconstruction and Development' mainly provides:
A. loans to middle-income and creditworthy low-income countries
B. military aid
C. short-term balance of payments support
D. grants only
Discuss
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Correct Answer: Option A

Explanation:
IBRD provides loans to middle-income and creditworthy low-income countries.
This question belongs to: Economy GK Economy Set 1
Question #1194
The 'International Finance Corporation' mainly provides:
A. short-term balance of payments support
B. military assistance
C. loans and investments in the private sector of developing countries
D. grants to governments
Discuss
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Correct Answer: Option C

Explanation:
IFC supports private sector investment in developing countries.
This question belongs to: Economy GK Economy Set 1
Question #1195
The 'Multilateral Investment Guarantee Agency' provides:
A. export subsidies
B. currency exchange
C. political risk insurance and credit enhancement for foreign investment
D. trade finance
Discuss
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Correct Answer: Option C

Explanation:
MIGA provides political risk insurance to promote foreign direct investment.
This question belongs to: Economy GK Economy Set 1
Question #1196
The 'International Development Association' lends mainly to:
A. private corporations
B. developed countries
C. central banks
D. poorest developing countries on concessional terms
Discuss
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Correct Answer: Option D

Explanation:
IDA provides concessional loans and grants to the world's poorest countries.
This question belongs to: Economy GK Economy Set 1
Question #1197
The 'International Monetary Fund' was established in 1944 but began operations in which year?
A. 1945
B. 1947
C. 1950
D. 1952
Discuss
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Correct Answer: Option B

Explanation:
The IMF began operations in 1947.
This question belongs to: Economy GK Economy Set 1
Question #1198
The 'General Agreement on Trade in Services' is part of:
A. WTO
B. World Bank
C. UNCTAD
D. IMF
Discuss
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Correct Answer: Option A

Explanation:
GATS is a WTO agreement covering trade in services.
This question belongs to: Economy GK Economy Set 1
Question #1199
The 'Agreement on Agriculture' under WTO covers:
A. intellectual property
B. industrial subsidies
C. banking regulation
D. domestic support, market access and export subsidies in agriculture
Discuss
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Correct Answer: Option D

Explanation:
The WTO Agreement on Agriculture covers domestic support, market access and export subsidies.
This question belongs to: Economy GK Economy Set 1
Question #1200
The 'Doha Round' of WTO negotiations began in which year?
A. 1999
B. 2005
C. 2010
D. 2001
Discuss
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Correct Answer: Option D

Explanation:
The Doha Round was launched in 2001.
This question belongs to: Economy GK Economy Set 1
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