Government SSC Economy Interview Preparation Guide
Download PDF

Government SSC Economy frequently Asked Questions by expert members with experience in Government SSC Economy. So get preparation for the Government SSC Economy job interview

22 Government SSC Economy Questions and Answers:

1 :: What is the difference between repo rate and bank or discount rate?

Repo rate is the rate at which banks borrow funds from the
RBI to meet the gap between the demand they are facing for
money (loans) and how much they have on hand to lend.
Bank rate, also referred to as the discount rate, is the
rate of interest which a central bank charges on the loans
and advances that it extends to commercial banks and other
financial intermediaries. Changes in the bank rate are
often used by central banks to control the money supply.

3 :: What is the major aim of devaluation?

the major aim of devaluation to increase the foreigen
exchange basket , in 1991 when our foreigen exchange
reserves dip low the manmohan singh govt resotred to
devaluation of indian rupee in two parts.

5 :: To which secular stagnation refers?

Recurring booms and depressions in the economy.

6 :: What is consumers sovereignty means?

consumer's sovereignity means that customers can buy
according to their own desire. The right price is charged
from them, provided with right quality & in right quantity.

7 :: What are some of the things required for computing Gross National Product (GNP)?

GNP is defined as the total value of all goods and
services produced by firms owned by the country concerned.
It is measured as the gross domestic product plus income
earned by domestic residents from foreign investments,
minus income earned during the same period by foreign
investors in the country's domestic market. GNP does not
allow for inflation or for the overall value of production.
It is an important indicator of an economy's strength

8 :: Who are the main bearers of the burden of indirect tax?

consumers are the main bearers of indirect taxes

9 :: Basing on which inflation is checked temporarily?

at present inflation is ascertain by wholesale price
index,but now it is switching to ppi(purchase price
index).if we want to tame inflation then first we have to
acess whether it is demand side or supply side inflation if
it is supply side inflation then a country have to increase
the farm productivity because people are demanding same or
more but output is not available to general people at
present this can be seen in india that govt. is relying more
on monetary tightning but inflation isnot reducing since
demand is appropriate acc. to economic growth but supply is

but if it is a demand side inflation then monetary
tightening will work,since people have more disposable
income and supply is in accordance with economic growth so
reducing money or liquidity in system will lead to
equilibrium position.