Which of the following activities constitute the real sector in the economy?
- Farmers harvesting their crops.
- Textile mills converting raw cotton into fabrics
- A commercial bank lending money to a trading company
- A corporate body issuing Rupee Denominated Bonds overseas
Select the correct answer using the code given below:
Economy PYQs from 2022
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With reference to the Indian economy, consider the following statements:
- An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
- An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
- An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Which of the above statements are correct?
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With reference to Convertible Bonds consider the following statements:
- As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
- The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Which of the statements given above is / are correct?
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Consider the following statements:
- Tight monetary policy of US Federal Reserve could lead to capital flight.
- Capital flight may increase cost of firms with existing External Commercial Borrowings (ECBs)
- Devaluation of domestic currency decreases the currency risk associated with ECBs
Which of the statements given above are correct?
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In India, which one of the following is responsible for maintaining price stability by controlling inflation?
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With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct ?
- Acquiring new technology is capital expenditure.
- Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
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With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?
- The Governor of RBI is the Chairman of BBB.
- BBB recommends for the selection of heads for Public Sector Banks.
- BBB helps the Public Sector Banks in developing strategies and capital raising plans.
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