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Quiz for JAIIB examination paper 1 part1

All 10 questions from this finished quiz, with the correct answer and explanation. Finished 10 Oct 2026, 3:21 pm IST.
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  1. 1. An economy has GDP at market prices of ₹500 crore, depreciation of ₹50 crore, net indirect taxes of ₹40 crore and net factor income from abroad of –₹10 crore. What is its National Income (NNP at factor cost)?

    A. ₹410 crore

    B. ₹400 crore

    C. ₹420 crore

    D. ₹390 crore

    Answer: B. ₹400 crore

    Step-by-step solution

    1. 1National income is GDP at market prices less depreciation and net indirect taxes, plus net factor income from abroad.
    2. 2NDPMP=500−50=450NDP_{MP} = 500 - 50 = 450
    3. 3NDPFC=450−40=410NDP_{FC} = 450 - 40 = 410
    4. 4NNPFC=410+(−10)=400NNP_{FC} = 410 + (-10) = 400

  2. 2. Under India's flexible inflation targeting framework, the inflation target for the RBI's Monetary Policy Committee is defined in terms of which index?

    A. Wholesale Price Index (WPI)

    B. Consumer Price Index for Industrial Workers (CPI-IW)

    C. Consumer Price Index (Combined)

    D. GDP deflator

    Answer: C. Consumer Price Index (Combined)

    Why: The target is 4% CPI (Combined) inflation, with a tolerance band of +/- 2%, under the amended RBI Act, 1934.

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