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022 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following grants / grant direct credit assistance to rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the codes given below.
(a) 1 and 2 only (b) 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (c)

Q2. Consider the following statements in relation to ‘currency swap’:
1. It is used to secure cheaper debt.
2. It is used to hedge against exchange rate fluctuations.
3. India and Japan agreed for a $15 billion currency swap.
Which of the above statements is/are correct?
(a) 3 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (c)

Q3. Consider the following statements:
1. Demand pull inflation is the inflation, in which prices rise due to higher demand for goods and services over the available supply.
2. Cost push inflation is the inflation, in which prices rise due to increased input costs.
3. Deflation is that state in which the prices of goods and services rise and value of money fall.
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: (b)

Q4. With reference to Financial Bills (Category B), consider the following:
1. It can be introduced in either House of Parliament.
2. Recommendation of the President is necessary for its introduction.
3. In case of a disagreement between the two Houses over such a bill, a joint sitting of the two Houses can be held to resolve the deadlock.
Which of the statements given above is/are correct?
(a) 1 and 3 only (b) 1, 2 and 3
(c) 2 and 3 only (d) 2 only
Ans: (a)

Q5. Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?
(a) Commercial loans
(b) Foreign Direct Investment
(c) Foreign Portfolio Investment
(d) External Commercial Borrowings
Ans: (b)

Q6. With reference to the Finance Commission of India, which of the following statements is correct ?
(a) It encourages the inflow of foreign capital for infrastructure development
(b) It facilitates the proper distribution of finances among the Public Sector Undertakings
(c) It ensures transparency in financial administration
(d) None of the statements (a), (b) and (c) given above is correct in his context
Ans: (d)

Q7. What are the approaches of disinvestment?
I. In all cases of disinvestment, the Government would retain at least 31% equity and the management control.
II. All cases of disinvestment are to be decided on a case by case basis
III. The Department of Disinvestment is to identify CPSEs in consultation with respective administrative Ministries and submit proposal to Government in cases requiring Offer for Sale of Government equity.
(a) I & II (b) Only I
(c) II & III (d) All the above
Ans: (d)

Q8. Which of the following financial Institutions were set up to provide credit facilities to Industries?
1. IFCI
2. ICICI
3. IDBI
4. NABARD
Choose the correct answer from the code given below:
(a) 2 and 3 only (b) 3 and 4 only
(c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Ans: (c)

Q9. A measure of inflation that excludes certain items that face volatile price movements(such as food and oil) is known as:
(a) wage inflation. (b) hyperinflation.
(c) pricing power inflation. (d) core inflation.
Ans: (d)

Q10. Which of the following does not determine supply of labour?
(a) Size and age-structure of population
(b) Nature of work
(c) Marginal productivity of labour
(d) Work-leisure ratio
Ans: (c)

Q11. Temporary control of inflation can be effected by
(a) Increasing the prices
(b) Increasing the taxes
(c) Restraint on the growth
(d) Reducing the prices
Ans: (a)

Q12. The earlier name of WTO was
(a) UNCTAD
(b) GATT
(c) UNIDO
(d) OECD
Ans: (b)

Q13. Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.
2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend.
3. Devolution of a specified share of central taxes to local bodies as grants.
Select the correct answer using the codes given below
(a) 1 only (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (a)

Q14. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?
(a) WTO affairs
(b) SAARC affairs
(c) UNFCCC affairs
(d) India-EU negotiations on FTA Statement Based MCQ
Ans: (a)

Q15. Fair and Remunerative Price (FRP) are announced every year by the Government of India for which of the following?
(a) Wheat (b) Sugar
(c) Pulses (d) Maize
Ans: (b)

Q16. Consider the following statements regarding the Financial Sector Reform and Strengthening Initiative (FIRST):
1. It has been supported by the World Bank only
2. Its purpose is to promote sounder, more efficient, and inclusive financial systems
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)

Q17. Consider the following statements with regard to Statutory Liquidity Ratio (SLR)
1. To meet SLR, Commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks leverage in pumping more money into the economy.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) only 2
Ans: (c)

Q18. States earn more revenue directly through which of the following taxes?
(a) Sales tax
(b) Custom duties
(c) Excise duties
(d) Income tax
Ans: (a)

Q19. In the parlance of financial investments, the term ‘bear’ denotes
(a) An investor who feels that the price of a particular security is going to fall
(b) An investor who expects the price .of particular shares to rise
(c) A shareholder or a bondholder who has an interest in a company, Financial or otherwise
(d) Any lender whether by making a loan or buying a bond
Ans: (a)

Q20. Which of the following is/are the components of Public debt?
1. External debt
2. Other internal liabilities
3. Internal debt
(a) 1 only (b) 1 and 2
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q21. Consider the following statements :
1. The farm power availability in India is much lower than that of Korea.
2. India is meeting 80% of its urea requirement through indigenous production.
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)

Q22. 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)

Q23. What is offshore banking?
(a) It is a bank located outside the country of residence of the depositor
(b) It is a bank located in SEZ
(c) It is a bank located in a neighboring country
(d) It is a bank located in the sea (i.e. island)
Ans: (a)

Q24. Consider the following statements
1. The recent decision of Government of India to partially decontrol the sugar industry gives the millers the freedom to sell sugar in open market and removes their obligation to supply sugar at subsidised rates to ration shops.
2. C. Rangarajan panel also suggested decontrolling of sugar industry in India.
Which of the statements given above is/ are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q25. Mixed farming means
(a) Simultaneous cultivation of a number of crops in a single field
(b) Alternate cropping in a field
(c) Growing fruits and vegetables in the same field
(d) None of these
Ans: (d)

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