EDUCATION CIRCLE

🔵🔴🔵🔴RBI (Reserve Bank of India): RBI is the regulator of Banking & Finance & Money Market. ➡RBI was established in April 1935 under Reserve Bank of India, 1934. ➡On the recommendation of Hilton-Young Commission. ➡Central Bank of India which was nationalized in 1949. ➡Central office initial was established in Calcutta and later moved to Mumbai in 1937. ➡Official Directors- Governors and not more than four deputy governors. ➡Currently following persons are on following posts- ➡RBI performs his function under the guidance of the Board of financial supervision. ➡Board for Financial Supervision (BFS)- ➡Constituted in November 1994. The Board is constituted by co-opting four Directors from the Central Board and is  chaired by the Governor. 🔴Important Acts Administered by RBI- (i) Reserve Bank of India Act, 1934 (ii) Public Debt Act, 1944/Government Securities Act, 2006 (iii) Government Securities Regulations, 2007 (iv) Banking Regulation Act, 1949 (v) Foreign Exc

1. When the demand curve is elastic, Marginal Revenue is A) One  B) Zero C) Positive ✔ D) Negative 2. The locus of general equilibrium points of exchange in a two individual two commodity economy is called A) The transformation curve B) Social Welfare Function C) The consumption contract curve✔ D) The production contract curve 3. The value of owned inputs used by the firm in its own production process is A) Explicit cost B) Implicit cost✔ C) Variable cost D) Fixed cost 4. The locus of points on different isoquants at which the marginal rate of technical substitution of factors of production is constant A) Isocost  B) Isocline✔ C) Expansion path  D) Production function 5. The negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commodity purchased A) Falls  B) Remains unchanged C) Rises ✔ D) None of these 6. Engel’s law states that A) The proportion of total expenditure on food declines as family income rise

1. Consider the following diagram with two parallel demand curves AB and CD : The price elasticity of demand at : (1) points R and S is equal (2) point R is greater than that at point S✔ (3) point R is less than that at point S (4) points R and S is infinity 2. In 2016, the Nobel prize in Economics was awarded for : (1) analysis of trade pattern and location of economic activity (2) analysis of asset prices (3) analysis of globalization (4) contributions to contract theory✔ 3. Which of the following is not true for perfect competition ? (1) Price =LAC (2) Market demand curve for a commodity is horizontal to X-axis✔ (3) Firms earn normal profits (4) In the long run firms operate at the minimum point of average cost 4. Which amongst the following statements is correct ? (1) The minimum point of AVC and MC are at the same level of output (2) Minimum of AVC is at lesser output than the minimum of MC (3) Minimum of AVC is at larger output than the minimum of MC✔ (4