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029 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following countries creates the world’s first ever Digital Ambassador Post?
(a) India (b) China
(c) USA (d) Denmark
Ans: (d)

Q2. Rajesh had done diploma in civil engineering ten years back but he can not get any job since the companies hiring civil engineers prefer those who have all the skills required for modern construction designs for which knowledge of computer graphics is important.
The skill set which Rajesh possesses is no more demanded in the market. He is
(a) Functionally unemployed.
(b) Structurally unemployed.
(c) Cyclically unemployed
(d) Underemployed
Ans: (b)

Q3. FDI in Multi-Brand Retail Trade (MBRT) in all products is now permitted in India subject to
1. a ceiling of 51%
2. minimum amount to be brought in as FDI by the foreign investor is US $ 100 million.
3. atleast 50% of the procurement of manufactured/ processed products should be sourced from ‘small industries’.
4. retail sales locations set-up only in cities with a population of more than 10 lakh.
Select the correct answer using the codes given below
(a) 1, 2, 3 and 4 (b) 1 and 4
(c) Only 2 (d) 1, 2 and 4
Ans: (d)

Q4. The steel industry in India is lagging behind its objectives due to less availability of
(a) Iron ore
(b) Coking coal
(c) Power
(d) Technology
Ans: (b)

Q5. The lowering of bank rate by the reserve bank of India leads to
(a) More liquidity in the market
(b) Less liquidity in the market.
(c) No change in the liquidity in the market
(d) Mobilization of more deposits by commercial banks
Ans: (a)

Q6. Which of the following markets are independently regulated by Forward Market Commission?
(a) Mutual Funds
(b) Commodity Futures Market
(c) Stock Market
(d) Foreign Exchange Markets
Ans: (b)

Q7. What are Co-operative Credit Societies?
I. They are apex institution for providing credit facility to agricultural and rural areas.
II. These are the most important source of rural credit.
III. They are finance rural credit directly through Regional Rural Banks (RRBs).
(a) I & II (b) Only III
(c) Only II (d) None of the above
Ans: (c)

Q8. Which unit of valuation is known as “Paper gold”?
(a) Eurodollar (b) Petrodollar
(c) SDR (d) GDR
Ans: (c)

Q9. Consider the following statements regarding International Organisation of Employers:
1. Its aim is to provide an international forum to bring together, represent and promote the interests of national employers’ organisations and their members throughout the world on all labour and socio-economic policy issues.
2. International Labour Organisation (ILO) is a two partite organisation where governance is shared between governments and employers’ organisations and the IOE is the Secretariat to the Employers’ Group.
3. It assists the work of the Group in the ILO and represents employer interests in the ILO in their absence.
Which of the statements given above are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (c)

Q10. Which one among the following is not a source of tax revenue for the Central Government in India ?
(a) Income tax (b) Customs duuties
(c) Service tax (d) Motor Vehicle tax
Ans: (d)

Q11. Which period in the following graph shows the maximum growth in industrial production in India?
Production I II III IV
(a) I
(b) II
(c) III
(d) IV
Ans: (d)

Q12. Which one of the following is likely to be the most inflationary in its effect?
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
Ans: (d)

Q13. If an exporter earns money and deposits that with RBI, what will be the ultimate impact on country’s money supply?
(a) Money supply will increase
(b) Money supply will decrease
(c) Money supply will remain unaltered
(d) Money supply will depend upon the current exchange rate
Ans: (a)

Q14. Which article spells formation of GST Council?
(a) 270 (b) 246A (2)
(c) 269A (1) (d) 279A
Ans: (d)

Q15. Which one of the following is not a method of estimating national Income?
(a) Expenditure method (b) Product method
(c) Matrix method (d) Income method
Ans: (c)

Q16. The Human Development Index is calculated on the basis of:
1. Life expectancy at the time of birth.
2. Adult literacy rate and gross enrollment ratio.
3. NNP per capita.
Which the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) 1 and 2 (d) 1, 2 and 3
Ans: (c)

Q17. The headquarters of ‘Economic and Social Commission for Asia and the Pacific’ is located at
(a) Singapore (b) Manila
(c) Bangkok (d) Hong Kong
Ans: (c)

Q18. Regional Rural Banks are designed to work in which one of the following ideals?
(a) Work on basics of Commercial Banks
(b) Help the targeted groups
(c) Keep lending rates lower than cooperative institutions
(d) Work on innovative and adaptive ideals
Ans: (c)

Q19. With Reference to the Fourteenth Finance Commission, which of the following statements is/ are correct?
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent
2. It has made recommendations concerning sectorspecific grants
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2 (c) Neither 1 nor 2
Ans: (a)

Q20. Which among the following is correct about the Vostro Account?
(a) It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.
(b) It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.
(c) It is an account maintained by a Indian Bank Branch with a Foreign Bank in Foreign Currency.
(d) It is an account maintained by a Foreign Bank Branch with a Indian Bank in Foreign Currency.
Ans: (a)

Q21. Which of the following state taxes are not included in GST?
1. State Value Added Tax
2. Luxury tax
3. Taxes on lottery, betting and gambling
(a) Only 1, 2 (b) Only1, 3
(c) All of the above (d) None of the above
Ans: (d)

Q22. Consider the following statements regarding New Partnership for Africa’s Development (NEPAD):
1. It is an economic development program in Africa by European Union.
2. South Africa is the only African member of NEPAD.
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: (d)

Q23. Which of the following is determined by Money Multiplier ?
(a) Total supply of money in the economy
(b) Total deposits with the banks
(c) Components of money supply
(d) Employment and output in the economy
Ans: (a)

Q24. According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
(a) improve
(b) diminish
(c) remain constant
(d) first diminish and then improve
Ans: (b)

Q25. Inflation tends to reduce the share of labour in the GNP (Gross National Product) because
(a) Wages lag behind prices
(b) Prices lag behind wages
(c) Profits lag behind prices
(d) Profits lag behind wages
Ans: (a)

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