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006 Economy Previous Year Questions

Economy Previous Year Questions

Q1. The Integrated & which are being supported by Asian Development Bank, are located in which Indian state?
(a) Himachal Pradesh (b) Jammu and Kashmir
(c) Arunachal Pradesh (d) Sikkim
Ans: (a)

Q2. Which one of the following is correct regarding stabilization and structural adjustment as two components of the new economic policy adopted in India?
(a) Stabilization is a gradual, multi-step process while structural adjustment is a quick adaptation process
(b) Structural adjustment is a gradual, multi-step process, while stabilization is a quick adaptation process
(c) Stabilization and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other
(d) Stabilization mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State Governments
Ans: (b)

Q3. Consider the following statement:
1. Increase in annual private investment.
2. Increase in real national income.
3. Increase in real per capita income.
4. Increase in net annual investment.
Which among the following is considered to be the best measure of an increase in a country’s economic efficiency?
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (c)

Q4. The ‘Closed Economy’ is the economy in which –
(a) Only export takes place
(b) Budget deficit is less
(c) Only import takes place
(d) There is no foreign trade
Ans: (d)

Q5. Which of the following criteria are used by UNDP in calculation of Human Development Index?
1. In Education Index, Mean Years of Schooling (MYS) are based on the time spent by a 5 year old child in school.
2. Income Index is based on PPP (on per capita GDP)
Select the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q6. Consider the following statements:
1. Reserve Bank of India (RBI) has directed, only the State Bank of India to install disabled friendly Automated Teller Machines (ATMs).
2. RBI has directed all banks to lay down a road map for converting all the existing ATMs as talking ATMs with Braille keypads.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q7. The Global Economic Prospects is a flagship report, that is focused to discuss the current economic and regional economic development and prospects. This report is published by:
(a) World Bank
(b) International Monetary Fund
(c) OECD
(d) WTO
Ans: (a)

Q8. The supply-side economics lays greater emphasis on the point of view of
(a) producer
(b) global economy
(c) consumer
(d) middle-man
Ans: (a)

Q9. Deputy chairman of the Planning Commission is the:
(a) Prime Minister
(b) Planning Minister
(c) Holds the rank of a cabinet minister
(d) Economist of repute
Ans: (c)

Q10. In India ‘Report on Currency and Finance’ is the annual publication of
(a) SEBI (b) RBI
(c) Finance Commission (d) Finance Ministry
Ans: (b)

Q11. Consider the following statements regarding Primary Productivity:
1. It depends upon solar radiations only.
2. Almost it sustains in temperate region and fluctuates in tropical region throughout the year.
3. It is highest in oceans.
Which of the statements given above are incorrect?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q12. Which of the following statement is/are correct in regards to ‘micro-finance’?
1. Micro-credit extended by banks to individual is reckoned as a part of their priority sector lending.
2. RBI has prescribed a particular model to the banks to provide micro-finance.
Choose the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q13. Which of the following organisation is also known as R-5?
(c) IBSA (d) SAFTA
Ans: (a)

Q14. The population growth rate in Kerala is the lowest among major Indian states. Which one of the following is the most widely accepted reason for this?
(a) Kerala has made the highest investment in family planning
(b) Kerala has the highest literacy rate in India
(c) Kerala has invested heavily in promoting literacy and public health and placed high priority on social policies
(d) The population pyramid in Kerala has relatively fewer women in the reproductive age-group
Ans: (c)

Q15. Basic objectives of Indian plans are
1. economic growth
2. self-reliance
3. employment generation
4. population growth
(a) 1, 2 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 1, 2, 3 and 4
Ans: (b)

Q16. India has a high export earning from Diamonds.
In this context, consider the following:
1. High Diamonds Stocks
2. Large Production of Industrial Diamonds
3. Availability of experts on cutting and polishing
Which among the above is/ are most appropriate reason/ reasons behind the above fact?
(a) Only 1 (b) Only 1 & 3
(c) Only 3 (d) 1, 2 & 3
Ans: (c)

Q17. Consider the following principles that are applied in the functioning of local governance and identify the correct ones?
1. Principle of Subsidiarity
2. Principle of Democratic Decentralisation
3. Principle of Delineation of Functions
4. Principle of Convergence Correct code:
(a) 1 and 2 only (b) 1, 2 and 3 only
(c) 2, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (d)

Q18. Mutual funds have advantages compared to direct investing in individual securities. Which among the following is/are not its advantage(s)?
1. More predictable income.
2. More opportunity to customize.
3. Government oversight Correct code:
(a) 1 only (b) 3 only
(c) 1and 2 only (d) 1 and 3 only
Ans: (c)

Q19. Consider the following statements regarding the Public Debt Management Agency (PDMA):
1. Reserve Bank of India has set up a Public Debt Management Cell (PDMC) which will bring both India’s external borrowings and domestic debt under one roof.
2. PDMC will have only advisory functions to avoid any conflict with the statutory functions of RBI.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q20. Consider the following statements:
1. The World Intellectual Property Organisation
(WIPO) is a specialised agency of United Nations System of Organisations
2. WIPO has its headquarters at Rome
3. The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement is binding on all WTO members
4. Least developed country members of WTO are not required to apply the provisions of TRIPS Agreements for a period of 20 years from the general date of application of the Agreement
Which of these statements are correct?
(a) 1, 2, 3 and 4
(b) 2, 3 and 4
(c) 1, 2 and 4
(d) 1 and 3
Ans: (d)

Q21. Which of the following is not viewed as a national debt?
(a) Provident Fund
(b) Life Insurance Policies
(c) National Saving Certificate
(d) Long-term Government Bonds
Ans: (c)

Q22. What are autonomous bodies?
I. They are primarily meant to provide essential services such as railways.
II. They are public enterprises that came into existence by a Special Act of the Parliament.
III. They are companies in which 51% or more of the paid up capital is held by the central or any state government (partly or wholly by both).
IV. They are set up whenever it is felt that certain functions need to be discharged outside the governmental set up with some amount of independence and flexibility without day-to-day interference from the governmental machinery
(a) Only IV (b) I & III
(c) Only II (d) None of the above
Ans: (a)

Q23. Minimum support prices for major agricultural products are announced each year which are fixed after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP, while recommending prices takes into account which of the following factors
1. Cost of Production
2. Changes in Input Prices
3. Input/Output Price Parity
4. Trends in Market Prices
5. Inter-crop Price Parity
Choose the correct code:
(a) 1, 2, 3, 4 only (b) 2, 3, 4, 5 only
(c) 1, 3, 4, 5 only (d) All of the above
Ans: (d)

Q24. Though Non-Banking Financial Companies (NBFC) are different than the banks, however the key difference does not lie in
(a) NBFCs cannot accept demand deposits.
(b) NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on it.
(c) Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
(d) None of the above
Ans: (d)

Q25. Given the money wages, if the price level in an economy increases, then the real wages will
(a) increase (b) decrease
(c) remain constant (d) become flexible
Ans: (b)

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