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021 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which among the following sector of Indian Economy is maximum dependent on economic developments in advanced rations?
(a) Manufacturing sector
(b) Agricultural sector
(c) Mining sector
(d) Services sector
Ans: (d)

Q2. Consider the following statement regarding concept of money:
1. M1: Money with the Public (currency notes and coins) + Demand deposits of banks (on current and saving bank accounts) + Other demand deposits with RBI. It is highly liquid and banks will not be able to run their lending programmes on this basis.
2. M2: M1 + Saving bank deposits with Post-offices.
3. M3: M2 + Term deposits with the bank.
4. M4: M3 + All deposits of Post-offices.
Which among the following is correct?
(a) 1, 2, 3, 4 (b) 1, 2, 3
(c) 1, 3, 4 (d) 1, 2, 4
Ans: (d)

Q3. Which of the following constitute the Capital Account ?
1. Foreign Loan.
2. Foreign Direct Investment.
3. Private Remittances.
4. Portfolio Investment.
Select the correct answer using the codes given below
(a) 2 & 4 (b) 1 & 3
(c) 1 & 2 (d) 1, 2 & 4
Ans: (d)

Q4. Which of the following Groups represents the top three milk producer states of India?
(a) Uttar Pradesh, Rajasthan and Andhra Pradesh
(b) Uttar Pradesh, Punjab and Gujarat
(c) Uttar Pradesh, Rajasthan and Gujarat
(d) Punjab, Uttar Pradesh and Gujarat
Ans: (a)

Q5. Which of the following industry is an example of foot-loose industry?
(a) Cement industry (b) Paper industry
(c) Diamond industry (d) Aluminium industry
Ans: (c)

Q6. A major shift in the 8th Five-Year Plan from its preceding ones is
(a) the significant reduction in pubic sector outlays
(b) the concentration of pubic investment in infrastructural sectors
(c) major investment in agriculture with a view to promote exports
(d) major investment in sectors in which industrial sickness has been a chronic problem
Ans: (a)

Q7. National Income is defined as:
1. It is the total amount of money government earns through direct tax collection.
2. It measures the flow of goods and services in an economy
3. It is the total value of stocks held by a country at a particular point of time
(a) 1 only (b) 2 only
(c) 1 and 2 (d) 3 only
Ans: (b)

Q8. Consider the following statement:
1. Capital market deals with long-term finance funds.
2. Capital Market includes all facilities and institutional arrangements available for borrowing and lending of term funds (including medium-term).
3. Long-term funds are raised either by borrowing from certain institutions or by issuing securities.
Choose the correct statement.
(a) 1 only (b) 2 only
(c) 3 only (d) All of the Above
Ans: (d)

Q9. Which points are correct regarding SEZ act?
I. Exemption to SEZ developer and units from Minimum Alternate Tax.
II. Constitution of an authority for each SEZ with a view to providing greater administrative, financial and functional autonomy to these zones.
III. Establishment of designated courts and a single enforcement agency to ensure speedy trial and investigation of offences committed in SEZs.
(a) I & II (b) Only II
(c) Only III (d) All the above
Ans: (d)

Q10. What is ‘leverage ratio’ of a bank?
(a) Debt-to-equity ratio (b) Ratio of capital to assets
(c) Subordinated debt (d) None of the above
Ans: (a)

Q11. Consider the statements about WTO:
I. WTO officially commenced under the Marrakesh agreement replacing GATT.
II. Its headquarter is at Rome.
III. WTO’s top decision making body is Ministerial Conference which meets annually.
Correct statement(s) is/are:
(a) I, II and III (b) II and III only
(c) I only (d) III only
Ans: (c)

Q12. Hawala transactions relate to payments
(a) received in rupees against overseas currencies and vice versa without going through the official channels
(b) received for sale/transfer of shares without going through the established stock exchanges
(c) received as commission for services rendered to overseas investors/buyers/ sellers in assisting them to get over the red tape and/or in getting preferential treatment
(d) made to political parties or to individuals for meeting election expenses
Ans: (a)

Q13. Match the following:
Column A Column B
I. Mixed economy A. India has strong powers invested in the Centre with financial independence and adequacy
II. Fedral economy B. Public sector business enterprise exist with Private sector
III. Over population C. In each decade Indian population is increased By 20%
IV. Disparities in D. India’s per capita income Income Distribution is about 1/40 of US level Of per capita
(a) I-b, II-a, III-d, IV-c
(b) I-a, II-b, III-c, IV-d
(c) I-a, II-d, III-b, IV-c
(d) I-c, II-a, III-b, IV-d
Ans: (a)

Q14. Following are the characteristics of business risks. One of then is not correct. Please identify it.
(a) Loss is the reward for risk bearing
(b) Business risks are due to uncertainties
(c) Risk is an essential component of every business
(d) Degree of risk depends mainly upon the nature and size of business
Ans: (a)

Q15. Comparative Rating Index for Sovereigns (CRIS) makes use of which of the following variables?
1. Moody’s foreign currency credit ratings.
2. Average of S & P’s and Moody’s foreign currency credit ratings.
3. International Monetary Funds’ GDP statistics.
4. United Nations’ Human Development Index ratings.
Select the correct answer using the codes given below:
(a) 1 and 3 only (b) 2 and 3 only
(c) 2, 3 and 4 only (d) 1, 3 and 4 only67
Ans: (a)

Q16. Ad Hoc Treasury Bill refers to :
(a) A temporary Stamp paper used for making agreements only.
(b) A temporary Instrument used in signing contracts only.
(c) An instrument used by Govt. for raising funds from RBI for short term.
(d) An instrument issued by RBI to general public.
Ans: (c)

Q17. Which of the following statements is not a result of Free Trade Agreements (FTA) of India?
(a) Inversion of duty on certain products
(b) Increase in the trade between India and FTA countries
(c) Growth in exports
(d) Multi-year trade surplus
Ans: (d)

Q18. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
(a) SBR (Statutory Bank Ratio)
(b) SLR (Statutory Liquid Ratio)
(c) CBR (Central Bank Reserve)
(d) CLR (Central Liquid Reserve)
Ans: (b)

Q19. Which plan emphasised optimum utilisation of capacities, improvement in productivity and establishment of sunrise industries”?
(a) Fifth Plan (b) Sixth Plan
(c) Second Plan (d) Seventh plan
Ans: (b)

Q20. In an oligopolistic or monopolistically competitive market, firms do not raise their prices because even a small price increase will lose many customers.
Which among the following is the most suitable terms used for this concept?
(a) Supracompetitive pricing (b) Swing Demand
(c) Kinked Demand (d) Imperfect
Ans: (c)

Q21. Consider the following statements in regard to the Indian Depository Receipts (IDR):
1. IDRs can be used by foreign companies for raising funds through Indian securities market.
2. IDR comes with a limitation that they can not be converted into underlying equity shares.
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)

Q22. ‘GDP deflator’ is used to:
(a) Measure the relative reduction in GDP growth rate of a country
(b) Measure the inflation in a country
(c) Compare the GDP of a country vis a vis other countries of the world
(d) Estimate the purchasing power of the citizen of a country.
Ans: (b)

Q23. The TAPI Gas Pipeline Project is an initiative of four countries, it will pass through which of the following cities?
1. Dauletabad 2. Herat
3. Kabul 4. Quetta
5. Fazilka
Which the correct answer using the codes given below:
(a) 1, 2 and 4 only (b) 2, 3 and 5 only
(c) 1, 2, 4 and 5 only (d) 1, 2, 3, 4 and 5
Ans: (c)

Q24. Match List I with List II and select the correct answer using the codes given below the Lists:
List I : List II
(Industries) : (Industrial Centre)
A. Pearl Fishing : 1. Pune
B. Automobiles : 2. Tuticorn
C. Ship building : 3. Pinjore
D. Engineering goods : 4. Marmagao
Codes:
A B C D
(a) 2 1 4 3
(b) 2 1 3 4
(c) 1 2 4 3
(d) 1 2 3 4
Ans: (a)

Q25. Inclusive growth would necessitate :
(a) Development of infrastructural facilities
(b) Revival of agriculture
(c) Increase availability of social services such as education and health.
(d) All the above.
Ans: (d)

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