You are here
Home > QB Subjectwise > 040 Economy Previous Year Questions

040 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Consider the following statements regarding Cheque Truncation System (CTS):
1. CTS is used by banks to stop the movement of a physical cheque from the bank where it was presented to the bank which had issued it.
2. This system would drastically reduce the settlement cycles of the bank.
3. Alteration in cheque is not accepted in this system.
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: (a)

Q2. Which of the following sectors of the Indian economy have a 100% FDI limit?
(a) Pharmaceuticals (b) Cable Networks
(c) Commodity exchanges (d) Pension Funds
Ans: (a)

Q3. The Economic Planning Committee was established in the chairmanship of
(a) J.L. Nehru
(b) Dr. Rajendra Prasad
(c) Ramkrishna Mudaliyar
(d) K.C. Niyogi
Ans: (a)

Q4. An increase in the Bank Rate generally indicates that the
(a) market rate of interest is likely to fall
(b) Central Bank is no longer making loans to commercial banks
(c) Central Bank is following an easy money policy
(d) Central Bank is following a tight money policy
Ans: (d)

Q5. Which of the following are correct in regards to the austerity measures taken by a country going through adverse economic conditions:
1. These measures include a hike in the taxes.
2. These measures include an increase in Government spending
3. These measure can help regain a country its lost credit rating.
Select the correct answer using the codes given below:
(a) 1 and 2 only (b) 1 and 3 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (b)

Q6. Which of the following statement is NOT correct in regard to the Non Banking Financial Company (NBFC)?
(a) The Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank.
(b) NBFC-ND institutions are allowed to take deposits from the public
(c) All the operations of these institutions are exercised under bank regulations as formulated by the RBI.
(d) NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money markets, underwriting stocks and shares, TFCs (Term Finance Certificate) and other obligations.
Ans: (b)

Q7. Which of the following are parts of the ‘invisibles’ in the Balance of Payments?
1. Non-Factor Services
2. Incomes
3. Transfers
Which the correct answer using the code given below.
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q8. The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of
(a) growth of population
(b) increase in price level
(c) growth of money supply
(d) increase in the wage rate
Ans: (b)

Q9. Consider the following:
1. Low per capita income
2. Low rate of capital formation
3. Working force largely in the tertiary sector
Which among the above is/ are the characters of an underdeveloped economy?
(a) 1 & 2 (b) 2 & 3
(c) 1 & 3 (d) 1, 2 & 3
Ans: (a)

Q10. Match the following products with their percentage part that was controlled by the foreigners at the time of independence:
Product Percentage
I. Tea A. 70%
II. Jute B. 73%
III. Coal C. 65%
IV. Minerals D. 90%
(a) I – c, II – d, III – a, IV – b
(b) I – b, II – d, III – a, IV – c
(c) I – c, II – b, III – a, IV – d
(d) I – a, II – d, III – c, IV – b
Ans: (a)

Q11. Consider the following statements:
1. Exclusive Economic Zone extends up to a distance of 200 nautical miles from the base line of a country.
2. The imaginary line joining the land projecting towards the sea is called base line.
3. Sea water lying between coast land and base line is called territorial sea.
Which of the statements given above is/are correct?
(a) 1 and 2 only (b) 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q12. Consider the following statements:
1. The Real Time Gross Settlements (RTGS) system facilitates transfer of funds from accounts in one bank to another through the fastest possible 24×7 inter bank money transfer facility available through secure banking channels in India.
2. National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other participating bank.
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: (b)

Q13. The business in stock markets and other securities markets is regulated by
(a) RBI (b) FMC
(c) MUDRA Bank (d) SEBI
Ans: (d)

Q14. Which one among the following countries has the lowest GDP per capita?
(a) China
(b) India
(c) Indonesia
(d) Sri Lanka
Ans: (b)

Q15. Budget deficit is:
(a) excess of total expenditure including loans net of lending over revenue receipts
(b) difference between revenue receipts and revenue expenditure
(c) difference between all receipts and all expenditure
(d) fiscal deficit less interest payments
Ans: (c)

Q16. The price at which the Government purchase foodgrains for maintaining the public distribution system and for building up buffer stocks are known as
(a) Minimum support prices
(b) Procurement prices
(c) Issue prices
(d) Coiling prices
Ans: (b)

Q17. The ‘Oxfam International’ gave report titled ‘An Economy for the 1%’. Which among the following is concerned with Oxfam Report?
1. Inequality
2. Hunger
3. Sustainable Development
Select the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only
(c) 3 only (d) 2 and 3 only
Ans: (a)

Q18. Which of the following constitute the ‘double financial repression’ on the Indian banks?
(a) Statutory Liquidity Ratio(SLR)
(b) Non-Performing Assets(NPAs)
(c) High Inflation Rate
(d) All of the above
Ans: (d)

Q19. During periods of inflation, tax rates should
(a) increase (b) decrease
(c) remain constant (d) fluctuate
Ans: (a)

Q20. Underground Railways are being built in India at
(a) Bombay
(b) Calcutta
(c) Hyderabad
(d) Madras
Ans: (b)

Q21. With reference to the steel industry in India in the recent times, consider the following statements :
1. Vizag Steel Plant (RINL) has been declared Navratna.
2. Merger of IISCO with SAIL has been completed.
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. With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies
Select the correct answer using the code given below.
(a) 1 only (b) 2 and 3 only
(c) 1, 2, 3 and 4 (d) None
Ans: (c)

Q23. The purpose of the tenancy reform legislation was to:
1. afford security of tenure to tenants
2. enact fixation of fair rent
3. conferment of ownership right on tenants in some cases
(a) 1 only (b) 2 only
(c) 1 and 2 (d) 1, 2 and 3
Ans: (d)

Q24. Which of the following is correct regarding Liquidity adjustment facility?
(a) It is a monetary policy tool which allows banks to borrow money through repurchase agreements.
(b) It is a monetary policy tool which allows banks to borrow money through marginal standing facility.
(c) It is a central government policy which allows banks to borrow money through repurchase agreements.
(d) None of the above.
Ans: (a)

Q25. ‘BHIM (Bharat Interface for Money)’ app is in news, which of the following statements is/are correct with regard to BHIM app?
1. This UPI-based BHIM app allows anyone to pay or receive money through online banking.
2. There is a maximum of Rs. 20,000 per transaction permitted and Rs. 50,000 within a day.
3. This BHIM app is developed by National Payments Corporation of India (NPCI).
Which the correct answer using the code given below.
(a) 2 and 3 only (b) 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (c)

Top
error: Content is protected !!