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Advanced Wealth Management Course (IIBF) - Paper 1

Part I: Ch 3: Indian Economic Environment

Q1.

Indian economic era since independence can be divided in __________ and ________.

Pre 1990 and post 1990

Pre 1991 and post 1991

Pre 1992 and post 1992

Pre 1993 and post 1993

Q2.

Economic growth is measured by comparing the total output of the economy at different periods of time.

True

False

Q3.

Net National Product (NNP) is

GDP – Depreciation = NNP

GNP – Depreciation = NNP

(GDP + GNP) – Depreciation = NNP

GDP – GNP = NNP

Q4.

(I) Inflation is measured with help of price index. (II) Indexes with weights differing concept or in base data will give same results.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q5.

Inflation is wholly measured by a change in consumer price index or wholesale price index.

True

False

Q6.

The statutory liquidity ratio is currently fixed at:

15%

24%

25%

30%

Q7.

The cash reserve ratio is:

5.05%

5.5%

0.5%

5.00%

Q8.

(I) The objective of monetary policy is to foster monetary and financial conditions. (II) Banks maintain SLR by investing in government securities of varying maturities.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q9.

(I) Fiscal policy affects total spending and thereby influences real GNP and inflation. (II) Taxation increases private consumption besides influencing investment and potential output.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q10.

The Keynesian multiplier model shows that an increase in investment will increase GNP by an amplified amount by an amount greater than itself.

False

True

Q11.

(I) Trade deficit when imports are less than exports. (II) Trade surplus when imports are more than exports

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q12.

Which of the following indicator is wrong example of Leading Indicators?

Movements in realty sector

Consumer sentiment

Employment growth

Automobile sales

Q13.

Which of the following indicator is correct example of Coincident Indicators?

Job advertisements

Unemployment growth

Sales of residential housing

Consumer purchases around festival of Deewali

Q14.

The instrument/s of the monetary policy is/are:

Open market operations

Discount rate policy

Reserve requirement policy

Both B and C

All A, B and C

Q15.

The size of the multiplier (k) depends upon the marginal propensity to consumer (mpc) and the marginal propensity to save (mps).

True

False

Q16.

The main objective/s of economic policies is/are:

Reduce regional imbalances

Achieve full employment

Guide growth while controlling inflation

Both B and C

All A,B and C

Q17.

Cost of living index is one measurement of movement of prices of goods and services.

False

True

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