OTEE Economics and Finance 1 — Questions and Answers
Question 1: Which organization publishes the 'World Economic Outlook' report?
- World Bank
- International Monetary Fund (Correct answer)
- World Trade Organization
- United Nations
Correct answer: International Monetary Fund
The International Monetary Fund (IMF) publishes the World Economic Outlook report, typically twice a year.
Question 2: What is the term for the total value of goods and services produced within a country's borders in a year?
- Gross National Product
- Net National Product
- Gross Domestic Product (Correct answer)
- National Income
Correct answer: Gross Domestic Product
Gross Domestic Product (GDP) measures the total monetary value of all goods and services produced within a country's geographic boundaries in a given period.
Question 3: The Reserve Bank of India was established in which year?
- 1930
- 1935 (Correct answer)
- 1947
- 1949
Correct answer: 1935
The Reserve Bank of India was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
Question 4: Which type of tax is levied on income and profits?
- Indirect tax
- Direct tax (Correct answer)
- Excise duty
- Value Added Tax
Correct answer: Direct tax
Direct taxes are levied directly on income and profits of individuals and companies, such as income tax and corporate tax.
Question 5: The term 'Fiscal Policy' refers to the government's use of:
- Interest rates and money supply
- Exchange rates and trade policy
- Taxation and public expenditure (Correct answer)
- Foreign direct investment rules
Correct answer: Taxation and public expenditure
Fiscal policy refers to the government's use of taxation and public expenditure to influence the economy.
Question 6: What does the term 'Inflation' mean in economics?
- A rise in the purchasing power of money
- A general increase in price levels over time (Correct answer)
- A decrease in interest rates
- An increase in GDP growth rate
Correct answer: A general increase in price levels over time
Inflation refers to the sustained general increase in the price level of goods and services in an economy, reducing the purchasing power of currency.
OTEE Economics and Finance 1
Which organization publishes the 'World Economic Outlook' report?