Economics MCQs and Notes

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📊 Economics
Q. Which of the following best describes horizontal foreign direct investment?
  • (A) long term lending to a foreign firm
  • (B) fdi in the same industry abroad as the foreign investor firm
  • (C) fdi into industry that provide inputs to the firm
  • (D) fdi into industry that uses the firm\s output
💬 Discuss
✅ Correct Answer: (B) fdi in the same industry abroad as the foreign investor firm
📊 Economics
Q. Which of the following constitutes foreign direct investment?
  • (A) purchase of stock
  • (B) reinvestment of earnings by a wholly owned subsidiary abroad
  • (C) investment by all types for abroad
  • (D) lending of funds to a foreign subsidiary
💬 Discuss
✅ Correct Answer: (C) investment by all types for abroad
📊 Economics
Q. Which of the following statements best defines FDI
  • (A) loans from multilateral institutions like imf and world bank
  • (B) investment in foreign assets to acquire lasting business interest
  • (C) buying shares of companies in a foreign country without gaining control over management
  • (D) foreign currency deposits of non-resident citizens
💬 Discuss
✅ Correct Answer: (B) investment in foreign assets to acquire lasting business interest
📊 Economics
Q. The IRDA act passed in the year
  • (A) 1948
  • (B) 1951
  • (C) 2000
  • (D) 1999
💬 Discuss
✅ Correct Answer: (D) 1999
📊 Economics
Q. Virtual banking aims at rendering banking services through
  • (A) branch expansion
  • (B) advancing cheap creadit
  • (C) use of it services
  • (D) low expansion
💬 Discuss
✅ Correct Answer: (C) use of it services
📊 Economics
Q. In recent years the number of RRBs has
  • (A) remained constant
  • (B) decreased
  • (C) low
  • (D) increased
💬 Discuss
✅ Correct Answer: (B) decreased
📊 Economics
Q. In recent years Indian banks have increased their efficiency by
  • (A) by reducing number of employees
  • (B) expansion
  • (C) using information technology
  • (D) by increasing number of branches
💬 Discuss
✅ Correct Answer: (C) using information technology
📊 Economics
Q. Financial inclusion aims at providing financial services to
  • (A) poor people
  • (B) indian investors abroad
  • (C) banking
  • (D) industrialists
💬 Discuss
✅ Correct Answer: (A) poor people
📊 Economics
Q. In 2017 advances of commercial banks to the priority sector was
  • (A) 0.4
  • (B) more than 40%
  • (C) less then 40%
  • (D) 0.45
💬 Discuss
✅ Correct Answer: (C) less then 40%
📊 Economics
Q. Which of the following is not a feature of the tourism industry?
  • (A) has high employment potential
  • (B) it is composite of several service providers
  • (C) does not harm the natural environment
  • (D) has high foreign exchange earning potential
💬 Discuss
✅ Correct Answer: (C) does not harm the natural environment

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