World geography miscellaneous


World geography miscellaneous

  1. Bank rate is the rate of interest









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    Bank Rate is the interest rate at which a nation's central bank lends money to domestic banks. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity.

    Correct Option: C

    Bank Rate is the interest rate at which a nation's central bank lends money to domestic banks. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity.


  1. A currency having a falling exchange rate due to continuing balance of payments deficit is called a









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    Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar

    Correct Option: A

    Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments problem. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar



  1. A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a









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    Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future.

    Correct Option: B

    Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future.


  1. The smaller the Cash Reserve Ratio, the scope for lending by banks is :









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    Cash Reserve Ratio is a regulation set by Central bank (RBI in India) which dictates the minimum amount (reserves) that a commercial bank must be held to customer notes and deposits. A decrease in CRR will make it mandatory for the banks to hold a lesser proportion of their deposits in the form of deposits with the RBI. This will increase the amount of Bank deposits and they will lend more as they have more amount as their reserve.

    Correct Option: A

    Cash Reserve Ratio is a regulation set by Central bank (RBI in India) which dictates the minimum amount (reserves) that a commercial bank must be held to customer notes and deposits. A decrease in CRR will make it mandatory for the banks to hold a lesser proportion of their deposits in the form of deposits with the RBI. This will increase the amount of Bank deposits and they will lend more as they have more amount as their reserve.



  1. For channelising the unaccounted money for productive purposes the Government Introduced the scheme of :









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    The Special Bearer Bonds (Immunities And Exemptions) Act, 1981 laid down the purpose of such bonds as necessary to canalize for productive purposes black money which has become a serious threat to the national economy. With a view to such canalization, the Central Government decided to issue at par certain bearer bonds to be known as the Special Bearer Bonds, 1991.

    Correct Option: A

    The Special Bearer Bonds (Immunities And Exemptions) Act, 1981 laid down the purpose of such bonds as necessary to canalize for productive purposes black money which has become a serious threat to the national economy. With a view to such canalization, the Central Government decided to issue at par certain bearer bonds to be known as the Special Bearer Bonds, 1991.