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009 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Why there was the need for export promotion in India?
I. Primary products exporting countries have an unfavourable term of trade. The earnings from primary product exports were low and unstable
II. Secondly, the quality of Indian products was not up to the world standards due to which we could not sustain markets.
III. Third, only residue products were mainly exported.
The fact that export earnings also contribute to economic development was overlooked.
(a) I & III (b) II & III
(c) Only III (d) All the above
Ans: (d)

Q2. Which of the following organisations supervises the credit activities of lenders in the informal sector in India?
(a) Reserve Bank of India
(b) National Bank for Agriculture and Rural Development
(c) Regional Rural Banks
(d) There is no such organization present in the country
Ans: (d)

Q3. The Central Government has granted ‘Maharatna’ status to which of the following Public Sector Undertakings (PSUs)?
1. NTPC
2. ONGC
3. IOCL
4. SAIL
5. GAIL
Which of the above options is/are correct?
(a) 2 only
(b) 1, 3 and 5 only
(c) 2 and 5 only
(d) 1,2,3, 4 and 5
Ans: (d)

Q4. Assertion (A): An important policy instrument of economic liberalization is reduction in import duties on capital goods.
Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct ?
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true and R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans: (a)

Q5. Role of the government in the economy is
1. Provision of public goods
2. Provision of merit goods
3. Poverty reduction
Which among the following code is/are correct
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q6. The occupation in which people work for others and get remunerated in return is known as:
(a) Business (b) Unemployment
(c) Profession (d) None of these.
Ans: (b)

Q7. According to classification by the Government of India, which of the following Public Sector Enterprises are considered strategic enterprises?
1. Arms and ammunitions
2. Railway Transport
3. Atomic Energy
4. Space research
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 3 only
(c) 1, 2 and 3 only
(d) 1, 2, 3 and 4
Ans: (c)

Q8. With reference to the recent trend of rupee depreciation, which of the following statements are correct?
1. Rupee depreciation will make everything expensive.
2. Widening current account deficit is a major cause of rupee depreciation.
3. The monetary policies of the European Central Bank and the Bank of Japan are also contributing to rupee depreciation.
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (b)

Q9. The Directorate of Currency which administers government of India Mints, Currency Presses is part of which department of Finance Ministry?
(a) Department of Revenue
(b) Department of Economic Affairs
(c) Department of Expenditure
(d) Department of Financial Services
Ans: (b)

Q10. Asscertion (A): The United States of America has threatened to ask the World Trade Organisation
(WTO) to apply sanctions the developing countries for the non-observance of ILO conventions.
Reason (R): The United States of America itself has adopted and implemented those ILO conventions.
(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is NOT a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Ans: (b)

Q11. Overall aim of Indian plans is
(a) industrial development
(b) economic growth with social justice
(c) socialist pattern of society.
(d) regional prosperity
Ans: (b)

Q12. Which of the following commissions / companies of Indian Origin signed a pact for obtaining oil-blocks in Libya?
(a) Reliance petroleum (b) Oil India Ltd.
(c) ONGC (d) BPCL
Ans: (b)

Q13. Which of the following loans or advances come under the category of Non-Performing Assets (NPA) in India?
1. Where the bill remains overdue for a period of more than 60 days in the case of bills purchased and discounted.
2. Where the installment of principal or interest thereon remains overdue for two crop seasons for short duration crops.
Which of the following statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q14. Which of the following is/are the steps which will result in containing inflation?
1. Increasing Cash Reserve Ratio (CRR)
2. Decreasing Statutory Liquidity Ratio (SLR)
3. Permitting central/ state agencies to import duty-free pulses and sugar
Which the correct answer using the codes given below:
(a) 1 only (b) 1 and 3 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (b)

Q15. Which of the following statements about Goods and Service Tax
(GST) in India are correct?
1. It is a national value added tax to be implemented in India.
2. It will subsume all direct and indirect taxes.
3. It is bifurcated in central GST and state GST.
4. GST on export will be at the rate of zero and it will be levied on imports at the same level as domestic GST.
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 1, 2 and 3 only
(c) 2, 3 and 4 only (d) 1, 3 and 4 only
Ans: (d)

Q16. Assertion (A): Devaluation of a currency may promote export.
Reason (R): Price of the country’s products in the international market may fall due to devaluation.
(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Ans: (a)

Q17. ____ is an achievement of Indian planning.
1. development of infrastructure
2. diversification of industry and exports
3. high growth in national in-come
4. control over prices
(a) 1 and 2 (b) 1, 2 and 3
(c) 1, 2 and 4 (d) 2 and 3
Ans: (a)

Q18. Consider the following statements:
1. Lack of adequate entrepreneurship and leadership in business.
2. Lack of saving to invest.
3. Lack of technology, skills and infrastructure.
4. Limited purchasing power among the larger masses.
Which of the above statement(s) are correct ?
(a) 1, 2 and 3 (b) 1, 3 and 4
(c) 2, 3 and 4 (d) 1, 2 and 4
Ans: (d)

Q19. ‘Fiscal drag’ refers to a situation where a government’s net fiscal position does not meet the net savings goals of the private economy. This leads to:
(a) higher tax burden.
(b) lower tax burden in the long run.
(c) no effects on tax burden.
(d) a and b both.
Ans: (a)

Q20. Voucher Privatization refers to:
(a) selling shares on the stock market.
(b) selling an entire organization (or part of it) to a strategic investor, usually by auction.
(c) distributing shares of ownership to all citizens, usually for free or at a very low price.
(d) start-up of new private businesses in formerly socialist countries.
Ans: (c)

Q21. Consider the following statements regarding calculation of national income:
1. The expenditure method calculates the aggregate final consumption expenditure of the whole economy.
2. The income method calculates sum of the incomes received by all factors of production in the economy.
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)

Q22. India has the maximum volume of foreign trade with
(a) USA
(b) Japan
(c) Germany
(d) UAE
Ans: (*)

Q23. Tarapore Committee submitted its report on “Full Convertibility on Rupee” in-
(a) Current account
(b) Capital account
(c) Both in current as well as in capital account
(d) Special Drawing Rights (SDRs)
Ans: (b)

Q24. Match the following products with the percentage of CPSE control over them:
Column I Column II
I. Coal A. 70%
II. Crude Oil B. 55%
III. Refineries C. 80%
(a) I – c, II – a, III – b
(b) I – a, II – c, III – b
(c) I – c, II – b, III – a
(d) I – b, II – a, III – c
Ans: (a)

Q25. Arrange the following Expert Committees, in correct chronological order which recommended on corporate governance and the companies bill:
1. Kumar Mangalam Birla Committee
2. Narayana Murthy Committee
3. J.J Irani Committee
4. Naresh Chandra Committee Correct code:
(a) 1, 2, 3, 4 (b) 1, 4, 2, 3
(c) 3, 4, 2, 1 (d) 4, 3, 2, 1
Ans: (b)

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