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031 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which among the following sectors contributes maximum excise revenue to Indian exchequer?
(a) Agriculture (b) Steel industry
(c) Oil and gas (d) Aviation
Ans: (c)

Q2. Consider the following statement in regards to Hedge funds:
1. Hedge funds are open to all type of investors.
2. Hedge funds are immune to risk of the market and always produce positive returns.
3. Hedge funds are not sold to the public or retail investor.
Which of the statements given above is/ are correct?
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 3 only
Ans: (d)

Q3. ‘Basel III’ norms target at which of the following?
1. Improve the banking sector’s ability to absorb shocks arising from financial and economic stress.
2. Improve risk management and governance.
3. Strengthen banks’ transparency.
Choose the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (d)

Q4. Which of the following international Sovereign Credit Rating Agencies (SCRAs) do Sovereign Credit Rating for India?
1. Standard and Poor’s (S&P)
2. Moody’s Investors Service
3. Fitch Ratings
4. Dominion Bond Rating Service (DBRS)
5. Japanese Credit Rating Agency (JCRA)
Which the correct answer using the code given below.
(a) 1, 2 and 3 only
(b) 1, 2, 4 and 5 only
(c) 1, 2, 3 and 5 only
(d) 1, 2, 3, 4 and 5
Ans: (d)

Q5. Consider the following statements:
The Indian rupee is fully convertible
1. in respect of Current Account of Balance of Payment.
2. in respect of Capital Account of Balance of Payment.
3. into gold.
Which of these statements is/are correct?
(a) 1 alone
(b) 3 alone
(c) 1 and 2
(d) 1, 2 and 3
Ans: (a)

Q6. Consider the following two statements and answer the question–
I. The rural poverty alleviation programme will henceforth run on mission mode.
II. National Rural Livelihood Mission is centrally sponsored programme implemented by the states.
(a) Only I is correct
(b) Only II is correct
(c) Both I and II are correct
(d) None is correct
Ans: (c)

Q7. What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.
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)

Q8. Consider the following statements:
1. A currency is said to be fully convertible under current account when convertibility restrictions are completely removed for all capital transactions such as Foreign Direct Investment, Portfolio Investment, External Commercial Borrowing and so on.
2. Components of Foreign exchange reserve are foreign currency assets, gold, Special Drawing rights and Reserve Tranche position.
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)

Q9. Which of the subjects given below are mentioned in the concurrent list of the Seventh Schedule?
1. Bankruptcy and insolvency
2. Betting and gambling
3. Capitation taxes
4. Legal, medical and other professions
5. Price Control
Choose the correct answer:
(a) 1, 2 and 4 only (b) 2,3 and4 only
(c) 1,3 and 4 only (d) 1,4 and 5 only
Ans: (d)

Q10. Economic problem arises mainly due to
(a) Overpopulation (b) Unemployment
(c) Scarcity of resources (d) Lack of industries
Ans: (c)

Q11. A country is said to be in debt trap if
(a) it has to abide by the conditionalities imposed by the International Monetary Fund
(b) it has to borrow to make interest payments to an outstanding loans
(c) it has been refused loans or aid by creditors abroad
(d) the World Bank charges a very high rate of interest on outstanding as well as new loan.
Ans: (b)

Q12. Value-added tax is
(a) ad valorem tax on domestic final consumption collected at all stages between production and the point of final sale
(b) ad valorem tax on final consumption collected at manufacturing level
(c) tax on final consumption collected at the consumption stage
(d) special tax levied by states on products from other states
Ans: (a)

Q13. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?
1. Promoting mineral exploration activities in mineralrich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licences for mineral exploration
Select the correct answer using the code given below.
(a) 1 and 2 only (b) 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (b)

Q14. Which of the following statements is correct regarding to proceeds and appropriation of surcharges?
(a) Levied by the Centre but Collected and Appropriated by the Centre and the States.
(b) Levied by the Centre but Collected and Appropriated by the States.
(c) Levied and Collected by the Centre but Distributed between the Centre and the States.
(d) Levied , Collected and appropriated by the Centre with no share of states.
Ans: (d)

Q15. The Special Safeguard Mechanisms (SSM), a long pending issue, is related to which of the following?
(a) Food and Agriculture Organization (FAO)
(b) World Trade Organization (WTO)
(c) International Court of Justice (ICJ)
(d) World Intellectual Property Organization (WIPO)
Ans: (b)

Q16. The demand curve for a Giffen good is
(a) upward rising
(b) downward failling
(c) parallel to the quantity axis
(d) parallel to the price axis
Ans: (a)

Q17. India earns maximum foreign exchange by the export of which of the following commodities?
(a) Iron
(b) Tea
(c) Jute
(d) Sugar
Ans: (b)

Q18. Tarapore Committee was associated with which one of the following?
(a) Special Economic Zones
(b) Fuller capital account convertibility
(c) Foreign exchange reserves
(d) Effect of oil-prices on the Indian economy
Ans: (b)

Q19. Which of the following is/are type of Budget?
1. Capital budget 2. Revenue budget
(a) 1 only (b) 1 and 2
(c) 2 only (d) Neither 1 nor 2
Ans: (a)

Q20. The consequences of colonialism on Indian agriculture were:
1. fragmentation of holdings
2. impoverishment of the peasantry
3. eviction of land owners for non-payment of dues
4. better farming practices
5. Commercialization of agriculture
(a) 1, 2 and 4 (b) 1, 2, 3 and 5
(c) 2, 3 and 4 (d) 2, 3 and 5
Ans: (d)

Q21. Consider the following Indian financial sector regulators:
1. Securities and Exchange Board of India (SEBI)
2. Insurance Regulatory and Development Authority of India
3. Pension Fund Regulatory and Development Authority
4. Forward Markets Commission (FMC) Arrange the above in chronological order of formation:
(a) 1, 2, 3, 4 (b) 4, 1, 2, 3
(c) 4, 2, 1, 3 (d) 1, 4, 2, 3
Ans: (b)

Q22. India’s first Defence Industrial Park will be set-up in which of the following states?
(a) Andhra Pradesh (b) Karnataka
(c) Maharashtra (d) Kerala
Ans: (d)

Q23. Which of the following statements are correct?
1. The global economy relied on oil for much of the 20th century as a portable and indispensable fuel.
2. The immense wealth associated with oil generates political struggles to control it.
3. History of petroleum is also the history of war and struggle.
4. Nowhere is this more obviously the case of war and struggle than in West Asia and Central America.
Select the correct answer using the codes given below
(a) 1, 2, 3 and 4 (b) 2 and 4
(c) 1 and 3 (d) 1, 2 and 3
Ans: (a)

Q24. Operation Flood refers to
(a) Use of preventive measures for flood devastation
(b) A study about floods
(c) Dairy development for increased milk production
(d) None of these
Ans: (c)

Q25. In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by
(a) Union Ministry of Finance
(b) Union Finance Commission
(c) Indian Banks’ Association
(d) None of the above
Ans: (d)

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