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026 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following factors was not a reason behind the occurrence of the Industrial Revolution in England first?
(a) No part of the country was far from the sea
(b) Navigable rivers made inland transport easier.
(c) In England machines could be operated by wind or water power due to favourable climate condition
(d) England had coal, iron and other necessary mineral resources
Ans: (c)

Q2. Which of the following sectors mobilises maximum savings?
(a) Corporate sector
(b) Banking sector
(c) Other financial institutions
(d) None of these
Ans: (b)

Q3. Economic growth is usually coupled with
(a) Deflation
(b) Inflation
(c) Stagflation
(d) Hyperinflation
Ans: (b)

Q4. It is said that, in order to control inflation, foreign inflow needs to be sterlised. Sterlisation here refers to:
(a) ensuring that black money is accounted.
(b) compliance with import-export regulations
(c) ensuring that counterfeit currency does not enter circulation
(d) withdrawing equivalent local currency to maintain a desirable rate of exchange
Ans: (d)

Q5. What is procurement price?
I. It is that price at which government purchases the crop after harvesting, while MSP is the minimum price at which government declares it will buy the crop.
II. It is that price at which people purchases the crop after harvesting, while MSP is the maximum price at which government declares it will buy the crop.
III. It is the price at which people purchase the product from the government
(a) Only I (b) II & III
(c) Only III (d) None of the above
Ans: (a)

Q6. Devaluation usually causes the internal prices to:
(a) fall (b) rise
(c) remain unchanged (d) None of the above
Ans: (c)

Q7. With regard to the Ashok Chawla Committee recommendations on pricing of natural resources, consider the following statements:
1. Create a National Data Repository for petroleum explorations.
2. Future telecom licenses should be floated as differentiated licenses and spectrum should be inherent part of such licenses.
3. Need to create a comprehensive national legislation to deal with all water-related issues.
4. Competitive and transparent e-auctioning of land.
Which of the above statement are correct?
(a) 1, 2 and 3 only (b) 2, 3 and 4 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (c)

Q8. Which one among the following pairs is not correctly matched ?
(a) When total product : Marginal increases at an product increasing rate increases
(b) When total product : Marginal increases at a product diminishing rate , declines
(c) When total product : Marginal reaches its product maximum becomes zero
(d) When total product : Marginal begins to decline product becomes positive
Ans: (b)

Q9. Assertion : Sex ratio in India is in favour of males Reason: In females there is a high rate of mortality during maternity.
(a) if A and R both are correct and R is the correct explanation of A
(b) if A and R both are correct but R is not the correct explanation of A
(c) if A is correct and R is incorrect
(d) if A is incorrect and R is correct
Ans: (a)

Q10. Which one of the following groups of items is included in India’s foreign-exchange reserves?
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
Ans: (b)

Q11. Other things being equal, what would be the impact of an increase in net capital inflow on the Indian currency?
(a) There would be an increase in the demand for the American dollar and an appreciation of the currency.
(b) There would be a decrease in the demand for the rupees (`) and a depreciation of the currency.
(c) There would be an increase in the supply of the American dollar and an appreciation of the currency.
(d) There would be a decrease in the supply of the American dollar and a depreciation of the currency.
Ans: (a)

Q12. To infuse capital in state-run banks what Government is planning to do?
(a) To sell off Non Financial Companies
(b) To reduce its shares from Banks
(c) To sell Government Securities
(d) All of the above
Ans: (a)

Q13. Nature of unemployment in agriculture in India is
(a) only seasonal (b) only disguised
(c) Both (a) and (b) (d) None of the above
Ans: (c)

Q14. Consider the following issues:
1. Domestic support
2. Intellectual Property Rights
3. Market access
4. Export subsidies In regard to WTO, which of the above are regarded as pillars of Agreement on Agriculture?
(a) 1, 2 and 3 only (b) 1, 2 and 4 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (c)

Q15. Which of the following with regard to the term ‘bank run’ is correct?
(a) The net balance of money a bank has in its chest at the end of the day’s business
(b) The ratio of bank’s total deposits and total liabilities
(c) A panic situation when the deposit holders start withdrawing cash from the banks
(d) The period in which a bank creates highest credit in the market
Ans: (c)

Q16. Assertion (A): In the 19th century, India became a victim of colonialism.
Reason (R): Industrial Revolution resulted in the need for more and more markets.
(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. The problem of international liquidity is related to the non-availability of
(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
Ans: (c)

Q18. Which among the following is a correct definition of Fiduciary Issue of notes?
(a) The issue of currency notes without metallic backing.
(b) The issue of currency notes with metallic backing.
(c) The issue of currency notes with partial metallic backing.
(d) The issue of currency notes with proportional metallic backing.
Ans: (a)

Q19. Which of the following is/are true?
1. Both the State and Centre will have power to make laws on taxation of goods and services.
2. Parliament’s law will not override a state law on GST.
Which is/are correct?
Codes:
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q20. Which of the following is among the main provisions of the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA)?
1. There is no time bound limit to provide employment to the beneficiaries registered under the act.
2. There is provision for daily unemployment allowances in cash to be paid.
3. Employment is limited and confined within a limited radius.
4. At least one-third beneficiaries have to be women.
Select the correct answer using the codes given below:
(a) 1, 2 and 3 only (b) 2, 3 and 4 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (b)

Q21. Consider the following statements:
1. Statutory Liquidity Ratio (SLR) refers to that portion of total deposits of a commercial bank, which it has to keep with itself in the form of cash reserves.
2. Statutory Liquidity Ratio (SLR) is an effective instrument of qualitative credit control with RBI.
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. Which of the following statements about the India Post Payments Bank (IPPB) is/are correct?
1. It has been incorporated as a Public Limited Company.
2. It started its operation by establishing two pilot branches at Hyderabad and Varanasi.
Select the correct answer using the code given below.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q23. If the capital stock was everlasting, then the rate of depreciation would be
(a) High
(b) Low
(c) Infinite
(d) Zero
Ans: (d)

Q24. Regarding DigiLocker, sometimes seen in the news, which of the following statements is/are correct?
1. It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

Q25. Consider the following statements:
1. Increase in deposit rate results in higher savings
2. Increase in deposit rate results in fall in credit off takes
3. Increase in deposit rate results in increase in investment
Which among the above statements is / are correct?
(a) 1 & 2 (b) 1 & 3
(c) 1, 2, 3 (d) Only 1
Ans: (b)

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