Economic & Social Issues (ESI) Questions For NABARD Grade A Exam | Set-25

Correct Answer – D. Allocating funds directly to the farmers for agricultural development

Explanation-RBI allocates funds to NABARD for agricultural development. NABARD further allocates funds to farmers for agricultural development through rural banks and commercial banks.

Correct Answer – D. Blue chip

Explanation- The term blue chip is not related to monetary policy. Blue chip is an adjective given to a company which provides assured profit.

Correct Answer: B. To reconstruct the economies damaged during the Second World War

Explanation- The prime motive behind the establishment of the World Bank was to provide long run capital to member countries for economic reconstruction and development of the ruined economies.

Correct Answer – A. Every member country of the IMF automatically becomes the member of the World Bank

Explanation- Every member country of the IMF automatically becomes the member of the World Bank. In the same way any member country which quits the IMF is automatically expelled from the membership of the World Bank.

Correct Answer – D. India’s vote share in the International Monetary Fund is 10%

Explanation-India’s share in the International Monetary Fund’s vote share is 2.64% of total votes while as on April 2018, India’s quota in the IMF is 2.76%.

Correct Answer – C. To ensure exchange rate stability

Explanation-The World Bank is playing the main role in providing loans for the development works to the member countries. It provides long term loans for 5 to 25 years. Assurance of exchange rate stability is the function of IMF.

Correct Answer –A. America

Explanation- India sends 13.69% of its total exports to the USA.

Correct Answer – D. International Monetary Fund

Explanation-  The Global Financial Stability Report provides an assessment of the global financial system and markets, and addresses emerging market financing in a global context. It focuses on current market conditions, highlighting systemic issues that could pose a risk to financial stability and sustained market access by emerging market borrowers. The Report draws out the financial ramifications of economic imbalances highlighted by the IMF’s World Economic Outlook. It contains, as special features, analytical chapters or essays on structural or systemic issues relevant to international financial stability. It is published by International Monetary Fund (IMF).