The 'average propensity to save' is calculated as: MCQ with Answer and Explanation

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The 'average propensity to save' is calculated as:

A. income divided by saving

B. consumption divided by income

C. saving divided by income

D. change in saving divided by change in income

Answer: Option C

Solution (By JKSSB Mock Tests)

APS is total saving divided by total income.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'overdraft' facility is typically associated with:

A. insurance

B. credit cards

C. drawing more than the balance in a current account

D. fixed deposits

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Correct Answer: Option C

Explanation:
An overdraft allows a customer to draw more than the available balance in a current account.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Primary Deficit' indicates:

A. Fiscal deficit excluding interest payments

B. Budgetary deficit only

C. Revenue deficit excluding interest payments

D. Fiscal deficit including interest payments

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Correct Answer: Option A

Explanation:
Primary deficit = Fiscal deficit − Interest payments. It shows the borrowing requirement of the government excluding the interest burden of past debt.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a major component of India's external debt?

A. Only equity portfolio investment

B. Only short-term trade credit

C. Only domestic government securities held by residents

D. Commercial borrowings, NRI deposits, multilateral and bilateral loans

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Correct Answer: Option D

Explanation:
India's external debt comprises multilateral and bilateral loans, commercial borrowings, NRI deposits, trade credit and other liabilities.

This question belongs to: Economy GK Economy Set 1

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