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015 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following constitutes “Quaternary sector of the economy”?
(a) Defense related production
(b) Sports based economy and other associated industries
(c) IT, R&D and other knowledge-based services
(d) Economy involving health and culture
Ans: (c)

Q2. The difference between a bank and a Non-Banking Financial Institution (NBFI) is that
(a) a bank interacts directly with customers while an NBFI interacts with banks and governments
(b) a bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the term loan needs of large enterprises.
(c) a bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies
(d) a bank’s main interest is to help in business transactions and savings/ investment activities while an NBFI’s main interest is in the stabilisation of the currency.
Ans: (b)

Q3. Which of the following is/are economic activity?
1. Profit and Loss 2. Salary
3. Employment 4. occupation
(a) 1 and 2 (b) 1, 2 and 3
(c) 1, 2, 3 and 4 (d) 4 only
Ans: (c)

Q4. The _________ bank linkage programme continued to be the main micro-finance model by which the formal banking system reaches micro-entrepreneurs (including farmers).
1. Self-Help Group 2. Indian bank
3. SBI 4. PNB
Choose the correct name of the bank.
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (a)

Q5. Which statement is not correct according to MEIS?
I. Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS.
II. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.
(a) Only I (b) Only II
(c) Both I & II (d) None of the above
Ans: (c)

Q6. Structural unemployment arises due to
(a) Deflationary conditions
(b) Heavy industry bias
(c) Shortage of raw materials
(d) Inadequate productive capacity
Ans: (d)

Q7. Consumer Price Index (CPI) include:
I. Agricultural labourers
II. Industrial workers
III. Rural labourers
IV. Urban non manual employees Correct statements are:
(a) I, II, III and IV (b) II, III and IV only
(c) I, II and III only (d) I, II and IV only
Ans: (a)

Q8. The emerging trading blocs in the world, such as NAFTA, ASEAN and the like, are expected to
(a) act as constrictions in free trade across the world
(b) promote free trade on the lines laid down by the WTO
(c) permit transfer of technology between member countries
(d) promote trade in agricultural commodities between countries of the North and South
Ans: (b)

Q9. The national income of a country for a given period is equal to
1. total value of goods and services produced by the nationals
2. sum of total consumption and investment expenditure
3. sum of personal income of all individuals
4. money value of final goods and services produced
Which of the following code is/are correct
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (d)

Q10. Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) Size of the firm
(c) Finance
(d) Location of the business
Ans: (a)

Q11. Consider the following statements:
1. 100% FDI is allowed in Greenfield projects in Pharmaceuticals industry in India.
2. 100% FDI is allowed in Brownfield projects in Pharmaceuticals industry in India.
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: (c)

Q12. With regard to Foreign Currency Non-Resident Accounts (FCNR), consider the following statements:
1. FCNR accounts can only be opened by NRI’s and PIO’s.
2. These accounts can only be opened in foreign currency.
3. Under this account a person can invest in Recurring Deposits.
4. A person can avail loan against these deposits for investing in real estate and agricultural sectors.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) 1 and 2 only (d) 1, 3 and 4 only
Ans: (c)

Q13. Consider the following statements regarding human development:
1. Human Development Report is an annual milestone published by United Nations Development Program (UNDP)
2. The Global Multidimensional Poverty Index (MPI) has been developed by United Nations Development Program (UNDP)
3. The Gender Development Index is published by the World Health Organization (WHO)
4. Human Development Index (HDI) contains ten factors for health, education and living standards.
Which of the above statements are correct?
(a) 1, 2 and 3 only (b) 1, 2, 3 and 4
(c) 1 and 2 only (d) 1, 2 and 3 only
Ans: (c)

Q14. Which of the following pairs are correctly matched?
1. Dow Jones : New York
2. Hang Seng : Seoul
3. FTSE – 100 : London
Select the correct answer using the codes given below:
(a) 1, 2 and 3
(b) 2 and 3
(c) 1 and 2
(d) 1 and 3
Ans: (d)

Q15. National Development Council is concerned with
(a) implementing state plans
(b) approving and assessing major development projects in India
(c) approval of five-year plans
(d) implementing community development programmes
Ans: (c)

Q16. Which among the following is the apex organization of Industrial Finance in India?
(a) IDBI (b) ICICI
(c) IFCI (d) RIDF
Ans: (a)

Q17. Consider the following statements regarding National Dairy Development Board:
1. It was founded by Dr. Verghese Kurien.
2. The National Dairy Development Board was created to fulfill the desire of prime minister of India — the late Jawahar Lal Nehru-to extend the success of the Kaira Cooperative Milk Producers’ Union (Amul) to other parts of India.
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)

Q18. Consider the following statements in regards to devaluation and depreciation of a currency:
1. Devaluation is an activity conducted by central government where as depreciation happens due to market forces.
2. In both the devaluation and depreciation currency loses value against other currencies in a floating currency exchange market.
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)

Q19. Which of the following is termed as narrow money?
(a) M1 (b) M2
(c) M3 (d) None of the above
Ans: (a)

Q20. Assertion (A): According to statistics, more female children, are born each year than male children in India.
Reason (R): In India, the death rate of a male child is higher than that of the female child.
(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: (c)

Q21. National Rural Employment Guarantee Act ensures that the
1. Centre bears 75% of the cost of wages of unskilled manual workers.
2. State government provides 100 days of work to every rural household in a financial year.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q22. Consider the following factors regarding an industry:
1. Capital investments
2. Business turnover
3. Labor forces
4. Power consumption
Which of the following factor determine the nature and size of the industry
(a) 1, 3 and 4 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) 2 and 3
Ans: (a)

Q23. With regard to ‘Priority-Sector Lending’, consider the following statements:
1. Within the stipulated target of 40%, 18% has been stipulated for lending to agriculture.
2. Within 18% target for agriculture, a targeted of 12% of ANBC or credit equivalent amount of balance sheet exposure, whichever is higher is prescribed for small and marginal farmers.
Which of the above statements is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q24. With regard to the deregulation of savings bank deposit interest rate by RBI, consider the following statements:
1. It increases competition among banks.
2. It will ensure that policy rate hike also reflect in saving accounts interest rate.
3. Banks have welcomed this move by the RBI.
4. The move will benefit the depositors.
Which of the above statements are correct?
(a) 1, 2 and 4 only (b) 1, 2, 3 and 4
(c) 1 and 3 only (d) 2 and 4 only
Ans: (a)

Q25. Which of the following criteria are parts of IMF’s quota formula?
1. Gross Domestic Product
2. Openness
3. Economic Variability
4. International reserves
Which the correct answer using the code given below.
(a) 1 and 2 only (b) 1, 2 and 3 only
(c) 1 and 4 only (d) 1, 2, 3 and 4
Ans: (d)

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