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037 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following is not a characteristic of an efficient subsidy regime?
(a) A subsidy regime regressive in nature
(b) A subsidy regime progressive in nature
(c) A subsidy regime that does not distort market
(d) A subsidy regime with low leakages
Ans: (a)

Q2. Capital Account Convertibility of the Indian Rupee implies
(a) that the Indian Rupee can be exchanged by the authorised dealers for travel
(b) that the Indian Rupee can be exchanged for any major currency for the purpose of trade in goods and services
(c) that the Indian Rupee can be exchanged for any major currency for the purpose of trading financial assets
(d) None of the above
Ans: (c)

Q3. To reduce cyclical unemployment the government might:
(a) increase the budget surplus
(b) increase the balance of payments deficit
(c) increase the budget deficit
(d) reduce government expenditure
Ans: (c)

Q4. The balance of payments of a country is a systematic record of
(a) all import and export transactions of a country during a given period of time, normally a year
(b) good exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another.
Ans: (c)

Q5. The Monetary authority of an economy is doing some intervention in the money market to keep the money supply stable against exogenous or sometimes external shocks such as an increase in foreign exchange inflow. The authority is said to be using which of the following techniques?
(a) Sterilisation (b) Revenue Management
(c) Monetary management (d) Fiscal Management
Ans: (a)

Q6. Which one of the following statements is an appropriate description of deflation?
(a) It is a sudden fall in the value of a currency against other currencies
(b) It is a persistent recession in both the financial and real sectors of economy
(c) It is a persistent fall in the general price level of good and services
(d) It is the fall in the rate of inflation over a period of time
Ans: (c)

Q7. The Serious Fraud Investigation Office (SFIO) is part of which of the following?
(a) Ministry of Finance
(b) Central Bureau of Investigation (CBI)
(c) Ministry of Corporate Affairs
(d) Ministry of Home Affairs
Ans: (c)

Q8. Match List I (Power generation plant) with List II
(Feed material) and select the correct answer using the codes given below the Lists:
List I : List II
A. M/s Gowthami Solvents : 1. Rice husk Pradesh Oil Limited, Andhra Pradesh
B. M/s KM. Sugar Mills, : 2. Slaughter-house Uttar Pradesh waste
C. M/s Satia Paper Mills, : 3. Distillery spent Punjab wash
D. M/s Al Kabeer Exports : 4. Black liquor Limited, Andhra Pradesh
Codes:
A B C D
(a) 3 1 2 4
(b) 3 1 4 2
(c) 1 3 4 2
(d) 1 3 2 4
Ans: (c)

Q9. Consider the following statements:
1. Bulk of employment in India is in rural areas.
2. The disguised unemployment in agricultural sector is perennial.
3. Industrialization has rendered several people jobless in India.
Which of the statement(s) given above is/ are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) 1, 2 and 3
Ans: (a)

Q10. List-I List-II
(Industries) (Industrial Centres)
(A) Pearl fishing (1) Pune
(B) Automobiles (2) Tuticorin
(C) Ship building (3) Pinjore
(D) Engineering (4) Marmagao goods
(a) A – 2; B – 1; C – 4; D – 3
(b) A – 2; B – 1; C – 3; D – 4
(c) A – 1; B – 2; C – 4; D – 3
(d) A – 1; B – 2; C – 3; D – 4
Ans: (a)

Q11. Consider the following statements:
1. Under Global Depositary Receipt (GDR), which is popularly known as Euro Issues, Indian companies sell their shares in European stock market by campaigning and conducting road shows.
2. Participatory Notes are notes issued by the Reserve Bank of India( RBI) to wealthy foreign investor who want to invest in the Indian stock market and yet without being regulated by SEBI.
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)

Q12. Consider the following statements:
1. Repo (Repurchase) rate is the rate at which the RBI borrows short-term money from the banks and as the repo rate increases, borrowing from banks becomes more expensive.
2. Reverse Repo rate is the rate at which RBI lends short-term money to the banks and is used by the RBI, when it feels there is less money floating in the banking system.
Which of the statement(s) given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q13. The difference in the value of visible exports and visible imports is called
(a) Balance of sheet of items
(b) Balance of Trade
(c) Balance of Payments
(d) Balance of Accounts
Ans: (b)

Q14. The government holding in BPCL is:
(a) more than 70%
(b) between 60% and 70%
(c) between 50% and 60%
(d) less than 50%
Ans: (c)

Q15. An instrument of qualitative credit control is
(a) Open market operations
(b) variable reserve ratio
(c) Bank rate
(d) Credit rationing
Ans: (d)

Q16. Which one of the following is the objective of the National Watershed Development project for rainfed areas of India?
(a) Sustainable farming systems
(b) Integrated Watershed Management
(c) Reclanation of Forest Area
(d) Both ‘a’ and ‘b’
Ans: (d)

Q17. Which of the following statement regarding “Rational Investor Ratings Index” is correct.
(a) It is a rating index constructed by Fitch Ratings to assess a country’s macro-economic stability
(b) It is a rating index constructed by Economic Survey to assess a country’s macro-economic stability.
(c) It is a rating index constructed by World Bank to assess a country’s macro-economic stability.
(d) It is a rating index constructed by IMF to assess a country’s macro-economic stability.
Ans: (b)

Q18. Consider the following facilities of the Reserve Bank of India:
1. Bank Rate
2. Repo Rate
3. Marginal Standing Facility
4. Reverse Repo Rate Arrange the above from lowest to highest at current rate:
(a) 4, 2, 1, 3
(b) 4, 2, 3, 1
(c) 4, 3, 2, 1
(d) None of the above
Ans: (d)

Q19. Where is the headquarter of the International Monetary Fund
(IMF)?
(a) Paris (b) Manila
(c) Geneva (d) Washington DC
Ans: (d)

Q20. Which among the following States depends primarily on thermal power?
(a) Kerala
(b) West Bengal
(c) Tamil Nadu
(d) Karnataka
Ans: (b)

Q21. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India?
(a) Service- Industry- Agriculture
(b) Service-Agriculture-Industry
(c) Industry- Services-Agriculture
(d) Industry-Agriculture-Services
Ans: (a)

Q22. 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 Exercise -2
Ans: (a)

Q23. With reference to India’s food policy, consider the following statements:
1. It seeks to avert famines by maintaining a buffer stock
2. It ensures remunerative price for the farmers so that they do not switch crops
3. It encourages surplus production for the export market
4. It aims to maintain general price line.
Which of these statements are correct?
(a) 1, 2, 3 and 4 (b) 1 and 4
(c) 1, 2 and 4 (d) 1 and 2
Ans: (c)

Q24. Foreign Reserve assets comprises:
1. Foreign currencies
2. Gold
3. Foreign bank deposits
4. Foreign treasury bills
Select the correct answer using the codes given below:
(a) 1 and 2 only (b) 1, 2 and 3 only
(c) 2, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (d)

Q25. Which of the following publishes ‘The Global Report’?
(a) World Bank
(b) International Monetary Fund (IMF)
(c) United Nations High Commissioner for Refugees (UNHCR)
(d) United Nations Development Programme (UNDP)
Ans: (c)

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