Economics Insights Quiz 3

Main objective of public distribution system is

• Exports of goods

• Import of good

• Food Security

• Quality of Good

Answer explanation

The main objective of the public distribution system is to ensure food security by providing essential food items to the population, especially to the economically weaker sections, thus preventing hunger and malnutrition.

The working of SEBI includes

• to regulate the dealing of share market

• to check the foul declining in share market

• to control the inside trading of shares

• All of the Above

Answer explanation

The correct choice is 'to regulate the dealing of share market' as SEBI's primary role is to oversee and regulate the securities market, ensuring fair practices and protecting investor interests.

Which of the following is a function of Money?

• Medium of Exchange

• Store of Value

• Transfer of Value

• All of the above

Answer explanation

Money serves multiple functions: as a Medium of Exchange for transactions, a Store of Value to preserve purchasing power, and a Transfer of Value to facilitate the movement of wealth. Therefore, the correct answer is 'All of the above'.

Notes are issued by

• Reserve Bank of India (RBI)

• Central Government

• Local Government

• State Government

Answer explanation

Notes are issued by the Reserve Bank of India (RBI), which is the central bank of the country. The RBI is responsible for managing the currency and monetary policy, making it the correct choice.

ATM facility provides

• Loans

• Liquidity

• Investment

• None of the above

Answer explanation

ATM facilities provide liquidity by allowing users to withdraw cash easily. They do not offer loans or investment services, making liquidity the correct answer.

Hundred Rupee note has the signature of

• Union Finance Secretary

• RBI Governor

• Prime Minister

• None of these

Answer explanation

The correct answer is RBI Governor, as the signature on the Hundred Rupee note is that of the Reserve Bank of India's Governor, which signifies the note's authenticity and authority.

Increase in bank credit leads to

• Increase in money supply

• Decrease in money supply

• Constant Money supply

• None of the Above

Answer explanation

An increase in bank credit means banks are lending more, which adds to the money supply in the economy. Therefore, the correct answer is 'Increase in money supply'.

In India major share of labour force is occupied in

• Industrial Sector

• Agricultural Sector

• Service Sector

• None of the Above

Answer explanation

In India, the majority of the labor force is engaged in the Service Sector, which includes industries like IT, finance, and hospitality, reflecting a shift from traditional agriculture and manufacturing.

India is a

• Socialist Economy

• Capitalist Economy

• Mixed Economy

• None of the Above

Answer explanation

India is classified as a Mixed Economy because it incorporates elements of both socialism and capitalism, allowing for both private and public sector participation in the economy.

Demand for a commodity depends upon

• Price of the commodity

• Price of related goods

• Income of the consumer

• All of the Above

Answer explanation

Demand for a commodity is influenced by its price, the prices of related goods (substitutes and complements), and the consumer's income. Therefore, the correct answer is 'All of the Above'.