Economy MCQ — 62 Practice Questions with Answers

Explanation

The VB-G RAM G funding pattern provides 90:10 Centre-State sharing for North-Eastern States, Himalayan States, and the listed Union territory category covering Uttarakhand, Himachal Pradesh, and Jammu and Kashmir. Other states follow the 60:40 pattern. Jharkhand is not in the 90:10 category, so option D is the exception.

Explanation

Cost-push inflation arises when production costs rise or supply conditions worsen, such as higher oil prices, higher indirect taxes, or output and supply disruptions. Deficit financing works mainly through higher aggregate demand and money creation, not through a rise in production cost. Therefore, option C is not a cost-push factor.

Explanation

Margin requirements are a selective or qualitative credit control tool because they regulate how much credit can be advanced against specified securities or commodities. Bank Rate, Repo Rate, and Open Market Operations are broader quantitative tools that affect overall credit and liquidity. Therefore, option D is correct.

Explanation

A shareholder owns a part of the company and may receive corporate benefits from that ownership. SEBI investor material identifies dividends and bonus shares as benefits available to shareholders when declared by the company. Hence, option B is correct.

Explanation

As per the 2020-21 Budget Estimates, the urea subsidy allocation was Rs 47,805 crore, which is approximately Rs 0.48 lakh crore. Therefore, option C is correct.