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007 Economy Previous Year Questions

Economy Previous Year Questions

Q1. What is Government’s trade policy?
(a) Export promotion
(b) Import substitution
(c) Both of the above
(d) None of the above
Ans: (c)

Q2. Which one of the following statements is correct?
Fiscal Responsibility and Budget Management Act
(FRBM) concerns
(a) fiscal deficit only
(b) revenue deficit only
(c) both fiscal and revenue deficit
(d) Neither fiscal deficit nor revenue deficit.
Ans: (c)

Q3. Convertibility of rupee implies
(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India
Ans: (c)

Q4. The central nodal agency for implementing the price support operations for commercial crops is:
(c) TRIFED (d) FCI
Ans: (a)

Q5. The Information and Communication Technologies Development Index is published by:
(a) International Telecommunications Union
(b) World Bank
(c) International Monetary Fund
(d) World Economic Forum
Ans: (a)

Q6. Which of the following reports is/are published by the World Bank?
(a) International Debt Statistics
(b) FDI Restrictiveness Index
(c) Global Economic Prospects
(d) Both (a) and (c)
Ans: (d)

Q7. Consider the following statements regarding Special Drawing Rights (SDR):
1. Special Drawing Rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the World Bank.
2. A weighted currency basket of five major currencies; the Euro, the US Dollar, the British Pound, Chinese Yuan and and the Japanese Yen define SDRs value.
3. SDRs are allocated to countries; private parties cannot hold and use them.
Which of the statements given above is/are correct?
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (c)

Q8. North-South dialogue has reference to
(a) Developed and Developing countries
(b) Developing and Under-developed countries
(c) North and South countries of the world
(d) North and South America
Ans: (a)

Q9. Consider the following :
1. Fringe Benefit Tax
2. Interest Tax
3. Securities Transaction Tax
Which of the above is/ are Direct Tax/Taxes?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1,2 and 3
Ans: (d)

Q10. Which of the following is not a technique of Deficit financing?
1. Internal Borrowings
2. Counting Currency
3. Printing Currency
4. External aid and borrowings
(a) 1 only (b) 2 only
(c) 2 and 3 (d) 1, 2, 3 and 4
Ans: (b)

Q11. With reference to the agriculture sector of India, consider the following statements
1. Rural infrastructure Development Fund disperses loans to the states to complete the minor irrigation projects.
2. Rural infrastructure Development Fund is managed by the public sector Commercial Banks.
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: (a)

Q12. If the quantity demanded for a good increases by a greater percentage in response to a percentage decrease in price, the price elasticity of the demand is:
(a) Greater than 1 (b) Less than 1
(c) Equal to 1 (d) None of the above
Ans: (a)

Q13. The major aim of devaluation is to
(a) Encourage imports
(b) Encourage exports
(c) Encourage both exports and imports
(d) Discouraging both exports and imports
Ans: (b)

Q14. The concept which tries to ascertain the actual deficit in the revenue account after adjusting for expenditure of capital nature is termed as
(a) revenue deficit
(b) effective revenue deficit
(c) fiscal deficit
(d) primary deficit
Ans: (b)

Q15. The traditional market place in India is
(a) Marketing cooperatives
(b) Fairs
(c) Janata shops
(d) Government shops
Ans: (b)

Q16. India is regarded as a country with “Demographic Dividend’’. This is due to
(a) Its high population in the age group below 15 years.
(b) Its high population in the age group of 15-64 years.
(c) Its high population in the age group above 65 years.
(d) Its high total population.
Ans: (b)

Q17. Which of the following is the rate at which RBI lends to commercial banks?
1. Corporate rate 2. Economy rate
3. Bank rate 4. Growth rate
(a) 1 only (b) 1 and 2
(c) 3 only (d) 4 only
Ans: (c)

Q18. What were the objectives of Land reforms?
I. to increase production by ensuring security of tenure to the cultivator;
II. to increase the purchasing power of the rural population and thereby boost the demand for industrial products; and
III. to achieve social justice along with economic growth through a single set of measures rather than through different, and sometimes contradictory, measures.
(a) I & II (b) I, II & III
(c) I & III (d) None of the above
Ans: (b)

Q19. Gross National Product-Depreciation allowance = ?
(a) Personal Income (b) GDP
(c) Per Capita Income (d) NNP
Ans: (d)

Q20. Which of the statements given below is/are the characteristics of ‘Import Substitution’?
1. Import of goods generally being substituted by domestic production.
2. Import of goods require permission from the government.
3. Import of goods are kept under check by excise duties.
Select the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (d)

Q21. Which of the following statements about India’s unorganised sector are true?
1. Labour is more in number than that in the organised sector.
2. Job security and work regulation are better in unorganised sector.
3. They are usually not organised into trade unions.
4. Workers are usually employed for a limited number of days.
Select the correct answer using the code given below
(a) 1, 2 and 4 (b) 1, 3 and 4
(c) 3 and 4 (d) 1 and 3
Ans: (b)

Q22. Direct taxation was introduced by the ____ committee?
(a) Wanchoo
(b) Chetty
(c) Kaldor
(d) Raja Chelliah
Ans: (d)

Q23. Consider the following statements:
1. Inflation benefits the debtors.
2. Inflation benefits the bond-holders.
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: (a)

Q24. What are “Futures”?
(a) Securities or commodities sold or bought with the assumption of delivery at a later stage
(b) Shares and debentures bought at a cheaper rate and sold later at high rates
(c) Particular types and quantities of securities and com-modities bought for selling at higher prices
(d) None of these
Ans: (a)

Q25. Article 293 (3) of the Constitution is tool in the hands of centre to check fiscal deterioration on part of states. What is Article 293(3)?
(a) States must take consent of the Centre for additional borrowing
(b) States must reduce their fiscal expenditure on centre’s instructions
(c) Centre may introduce financial emergency in state to check deteriorating financial situation
(d) Centre may raise interest rates on loans given to states
Ans: (a)

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