41. A rapid increase in the rate of inflation is sometimes attributed to the 'Base Effect'. What is Base Effect?

1. 1. It is the impact of drastic deficiency in supply due to failure of crops

   
   
   

   2. it is the impact of the surge in demand due to rapid economic growth

   
   
   

   3. it is the impact of the price levels of previous year on the calculation of inflation rate

   
   
   

   4. None of the above

   
   
   

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   N/A

   Correct Option: C

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42. The term stagflation refers to a situation where

1. 1. growth has no relation with the change in prices

   
   
   

   2. rate of growth and prices both are decreasing

   
   
   

   3. rate of growth is faster than the rate of price increase

   
   
   

   4. rate of growth is slower than the rate of price increase?

   
   
   

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1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: B

   N/A

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43. Consider the following statements
    The Indian rupee is fully convertible
    1. in respect of Current Accounts of Balance of Payment
    2. in respect of Capital Accounts of Balance of Payment
    3. into Gold
    Which of these statements (s) is /are correct?

1. 1. 1 alone

   
   
   

   2. 3 alone

   
   
   

   3. 1 and 2

   
   
   

   4. 1, 2 and 3

   
   
   

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   N/A

   Correct Option: A

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44. A rise in SENSEX means

1. 1. a rise in prices of shares of all companies registered with Bombay Stock Exchange

   
   
   

   2. a rise in prices of shares of all companies registered with National Stock Exchange

   
   
   

   3. an overall rise in prices fo shares of group up companies registered with Bombay Stock Exchange

   
   
   

   4. a rise in prices of shares of all companies belonging to a group of companies registered with Bombay Stock Exchange

   
   
   

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1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: C

   N/A

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45. Many is 'Future Trading'?
    1. It is nothing but a trade between any two stock exchange whee in it is decided to purchase the stocks of each other on fixed price throughout the year.
    2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price.
    3. It is an agreement between stock exchanges that they will not trade the stocks of each other under any cirumstances in future or for a given period of time.
    Code

1. 1. Only 1

   
   
   

   2. Only 2

   
   
   

   3. Only 3

   
   
   

   4. All 1, 2 and 3

   
   
   

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1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: B

   N/A

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