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018 Economy Previous Year Questions

Economy Previous Year Questions

Q1. We read in the newspapers that the Foreign Direct Investments are preferred over the Capital Inflow. In this context, please consider the following :
1. FDI brings in latest technology
2. FDI does not involve large outflow
3. FDI Improves efficiency of the economy
Which among the above is / are most suitable reasons for the given statement?
(a) Only 1 (b) Only 1 & 3
(c) Only 1 & 2 (d) All 1, 2 & 3
Ans: (a)

Q2. Minimum Import Price (MIP), has been in the news is related to:
(a) Pharmaceuticals (b) Automobiles
(c) Steel (d) Pulses
Ans: (c)

Q3. Arrange the following market instruments in the increasing order of risk associated:
1. Fixed Deposits
2. Investment in Equities
3. Investment in Options Correct Code:
(a) 1 < 2 < 3 (b) 1 < 3 < 2
(c) 2 < 1 < 3 (d) 3 < 2 < 1
Ans: (a)

Q4. The latest regional economic block to be formed is
(a) ASEAN
(b) COMECON
(c) APEC
(d) NAFTA
Ans: (d)

Q5. Among the following, which is the reason for different types of economic system?
1. Time requirement
2. Money requirement
(a) 1 Only (b) 2 Only
(c) 1 and 2 (d) None of the Above
Ans: (c)

Q6. ______ is set up to promote liquidity to stocks of small and medium enterprises.
1. Indo Next
2. Interconnected Stock Exchange of India
3. Over the Counter Exchange of India
4. Bombay Stock Exchange
Choose the correct code.
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (a)

Q7. What are the objectives of SEZ act?
I. Generation of additional economic activity.
II. Promotion of exports of goods & services.
III. Promotion of investment from domestic and foreign sources.
IV. Creation of employment opportunities
(a) I & II (b) II & IV
(c) Only III (d) All the above
Ans: (d)

Q8. Consider the following statements about alternate minimum tax:
1. It is a presumptive tax.
2. It is imposed on companies.
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)

Q9. Match the steel plant with the country with whose assistance they were set up:
Public sector steel plants Country
I. Rourkela A. Britain
II. Vishakhapatnam B. Russia
III. Bokaro C. Germany
IV. Durgapur D. Russia Match:
(a) I–B, II–C, III–A, IV–D
(b) I–A, II–D, III–C, IV–B
(c) I–C, II–B, III–A, IV–D
(d) I–A, II–C, III–D, IV–B
Ans: (c)

Q10. Which of the following were the aims behind the setting up of the World Trade Organization (WTO)?
1. Promotion of free trade and resource flows across countries.
2. Protection of intellectual property rights.
3. Managing balanced trade between different countries.
4. Promotion of trade between the former East Block countries and the western world.
Select the correct answer by using the codes given below:
(a) 1, 2, 3 and 4
(b) 1 and 2
(c) 2 and 3
(d) 1 and 4
Ans: (b)

Q11. With reference to Indian economy, consider the following statements:
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) None of these
Ans: (c)

Q12. Commerce includes activities relating to trade and _________________ to trade.
(a) supporting (b) subsidiaries
(c) auxiliaries (d) None of these
Ans: (c)

Q13. Which of the following grants is raised, when the amount authorized by Appropriation Act to be expended for a particular service in the current financial year is found to be insufficient?
(a) Supplementary Grant (b) Exceptional Grant
(c) Votes of credit (d) Votes on accounts
Ans: (a)

Q14. Current Account Deficit will be narrower if:
1. there are strict norms for import of gold.
2. there is a presence of heavy exports duty.
3. there is increase in remittances from the Indians working abroad.
4. Tobin Tax is imposed on the foreign Investors.
Which of the conditions given above is/are correct?
(a) 1 only (b) 2 only
(c) 1, 2 and 3 (d) 1, 2, 3 and 4
Ans: (d)

Q15. Consider the following statements regarding Base Erosion and Profit Shifting:
1. It is an initiative of G20 and OECD
2. The action plan includes addressing the tax challenges of the digital economy
3. It is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises (MNEs).
Which of the above statements are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1, 2 and 3 (d) 1 and 3 only
Ans: (c)

Q16. The economist who was associated with the WTO draft document is
(a) A.K. Sen
(b) T.N. Srinivasan
(c) J.N. Bhagwati
(d) Avinash Dixit
Ans: (c)

Q17. Which of the following is not a millennium development goal?
(a) The eradication of extreme poverty and hunger.
(b) Universal primary and secondary education.
(c) Gender equality and empowerment of women.
(d) Reducing the child mortality rate.
Ans: (b)

Q18. Which among the following is the most important bulk import of India?
(a) Nonelectrical machinery (b) Electric Goods
(c) Petroleum (d) Food Grains
Ans: (c)

Q19. What are the functions of the commodity markets?
1. They facilitate the price discovery process.
2. They provide platform for price risk management in commodities.
3. They act as single unified markets for various commodities.
Select 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: (d)

Q20. Which of the following is/are correct in regards to the ‘Special Drawing Rights (SDR)’ of IMF?
1. SDRs are set dynamically against a basket of currencies.
2. SDRs can be used as an international currency.
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)

Q21. The best suitable measurement of the economic growth of a country is:
(a) Gross Domestic Product
(b) National Domestic Product
(c) Net National Product
(d) Per Capita Product
Ans: (d)

Q22. Assertion (A): Information technology is fast becoming a very important field of activity in India.
Reason (R): Software is one of the major exports of the country and India has a very strong base in hardware.
(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)

Q23. The National Development Council (NDC) :
(1) discusses progress of the National plan.
(2) suggests the ways to achieve goals of the national plan.
(3) gives guidelines to formulate the National plan.
(4) suggests plan allocation.
Consider the above statements, select the correct answer from the codes given below :
Codes :
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 1, 2 and 4 (d) All of the above
Ans: (a)

Q24. The Reserve Bank of India regulates the commercial banks in matters of
1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding-up of banks
Select the correct answer using the codes given below.
(a) 1 and 4 only (b) 2, 3 and 4 only
(c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Ans: (d)

Q25. Which of the following statements is not correct about ‘The International Money Laundering Information Network (IMOLIN)’?
(a) It was established by the United Nations on behalf of a partnership of international organizations involved in antimoney laundering.
(b) It is an Internet-based network assisting governments, organizations and individuals in the fight against money laundering.
(c) It is a database on legislation and regulation throughout the world.
(d) It is administered and maintained under the United Nations Security Council.
Ans: (d)

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