Question 1

Which of the following statements best describes the "K-shaped recovery" witnessed in the Indian economy post-pandemic?

A slow and gradual recovery across all sectors equally.Different sectors of the economy recovering at significantly different rates, with some growing and others declining.All sectors of the economy recovering at a uniform fast pace.A sharp decline in the economy followed by a stagnant flatline.

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A K-shaped recovery occurs when different parts of the economy recover at different rates, times, or magnitudes. For instance, technology and large corporate sectors grew, while MSMEs and contact-intensive sectors struggled.

Question 2

Which of the following is NOT a characteristic of a "Mixed Economy" like India?

Co-existence of public and private sectorsComplete state ownership of all resourcesGovernment regulation of private sectorSocial welfare motive along with profit motive

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A mixed economy involves both public and private sectors. "Complete state ownership" is a characteristic of a Socialist/Command economy, not a mixed one.

Question 3

The current "Flexible Inflation Targeting" framework in India requires the RBI to maintain CPI inflation at:

4% with a tolerance band of +/- 2%5% with a tolerance band of +/- 1%2% fixedBetween 0% and 4%

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The RBI Act was amended in 2016 to provide a statutory basis for this framework. The target is 4% Consumer Price Index (CPI) inflation, with an upper limit of 6% and a lower limit of 2%.

Question 4

Which term describes the phenomenon where a country’s working-age population grows larger than the dependent population, creating a potential for economic growth?

Population ExplosionDemographic DividendMalthusian TrapBrain Drain

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Demographic Dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older). India is currently passing through this phase.

JAIIB Quiz

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