Exercise 3

Question 16 :

In utensils worth Rs 1000 are produced with copper worth Rs 500, wages paid are Rs 100, other material purchased is worth Rs 100 and depreciation of machinery is zero, then what is the value added in process?

A). Rs 1000
B). Rs 500
C). Rs 400
D). Rs 300
Answer : Option D

Question 17 :

Paper currency first started in India in

A). 1861
B). 1542
C). 1601
D). 1880
Answer : Option A

Question 18 :

Devaluation of currency leads to

A). fall in domestic prices
B). increase in domestic prices
C). no impact on domestic prices
D). erratic fluctuations in domestic prices
Answer : Option B

Question 19 :

Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to

D). PACs
Answer : Option C

Question 20 :

Deficit financing implies

A). printing new currency notes
B). replacing new currency with worn out currency
C). public expenditure in excess of public revenue
D). public revenue in excess of public expenditure
Answer : Option C