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044 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Consider the following statements regarding Asian Infrastructure Investment Bank (AIIB):
1. The Authorized Capital Stock of the bank is 100 billion US Dollars, divided into 1 million shares of 100,000 dollars each
2. The allocated shares are based on the size of each member country’s economy calculated using nominal GDP only
3. The headquarters of the bank is in Beijing
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)

Q2. National income ignores
(a) sales of a firm (b) salary of employees
(c) exports of the IT sector (d) sale of land
Ans: (d)

Q3. Capital intensive industries
(a) Increase employment in rural areas
(b) Increase unemployment
(c) Give blow to the growth of large scale industries
(d) Provide opportunities for workers’ participation in management
Ans: (c)

Q4. When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?
(a) The commercial banks will have less money to lend
(b) The Reserve Bank of India will have less money to lend
(c) The Union Government will have less money to lend
(d) The commercial banks will have more money to lend
Ans: (a)

Q5. Consider the following:
1. Market borrowing
2. Treasury bills
3. Special securities issued to RBI
Which of these is/are components(s) of internal debt?
(a) 1 only (b) 1 and 2
(c) 2 only (d) 1, 2 and 3
Ans: (d)

Q6. Consider the following:
1. Prevent Black marketing
2. Trade and earn revenue
3. Become the sole controller of food grain supply
Which among the above is/ are the primary objective of the government to buy food grains directly from the farmers?
(a) Only 1 (b) Only 1 & 3
(c) Only 2 & 3 (d) 1, 2 & 3
Ans: (a)

Q7. Consider the following statements regarding BHIM app:
1. BHIM is developed by the National Payment Corporation of India (NPCI).
2. BHIM app is available on smartphones only
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)

Q8. Consider the following statements regarding Foreign Exchange Regulation Act (FERA) and Foreign Exchange Regulation Act
(FEMA):
1. Violation of FERA was a criminal offence whereas violation of FEMA is a civil offence.
2. Citizenship is the criteria to determine residential status of a person under FERA as well as FEMA.
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)

Q9. The value of money varies
(a) directly with the, interest rate
(b) directly with the price level
(c) directly with the volume of employment
(d) inversely with the price level
Ans: (d)

Q10. Price rise goes in favour of those who are
(a) Debtors
(b) Pensioners
(c) Businessmen
(d) Government servants
Ans: (a)

Q11. Both foreign direct investment (FDI) and foreign institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
(a) FII helps bring better management skills and technology. While FDI only brings in capital.
(b) FII helps in increasing capital availability in general, while FDI only targets specific.
(c) FDI flows only into the secondary market, in general, while FDI only targets specific sectors.
(d) FII is considered to be more stable than FDI.
Ans: (b)

Q12. Open market operation of RBI refers to:
(a) buying and selling of shares
(b) auctioning of foreign exchange
(c) trading in securities
(d) transaction in gold
Ans: (c)

Q13. What is Co-operative joint farming?
I. Where the society holds the land and leases it to individual members
II. Where land is irrevocably surrendered to the collective;
III. Where the farmers pool their land and reap the economies of scale, although the ownership continues to remain with the individual farmer.
(a) I & II (b) Only II
(c) Only III (d) None of the above
Ans: (c)

Q14. Gresham’s law is related to
(a) Consumption and demand (b) Supply and demand
(c) Circulation of money (d) Deficit financing
Ans: (c)

Q15. Which of the following is not an indicator of the Multidimensional Poverty Index?
(a) Electricity (b) Sanitation
(c) Maternal Mortality (d) Drinking Water
Ans: (c)

Q16. An exceptional demand curve is one that slopes
(a) downward to the right (b) upward to the right
(c) horizontally (d) upward to the left
Ans: (a)

Q17. Which of the following is the correct group of Kharif crops?
(a) Rice, Millet, Maize, Cotton
(b) Groundnut, Bajra, Barley, Sorghum, Wheat
(c) Jowar, Bajra, Rice, Cotton, Jute, Gram
(d) Wheat, Barley, Gram, Mustard
Ans: (a)

Q18. In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider / greater implementation?
1. There is no National Seeds Policy in place.
2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.
Select the correct answer using the code given below.
(a) 1 and 2
(b) 3 only
(c) 2 and 3
(d) None
Ans: (b)

Q19. Which among the following is the only correct statement?
(a) Money market meets long term financing needs
(b) Recession in industrial sector in India is normally due to fall in exports
(c) Ways and means advances given by RBI are nowhere related to State’s revenue
(d) Exchange rate is fixed by RBI
Ans: (c)

Q20. Which bank has become the India’s first bank to launch Aadhaar Pay service for merchants?
(a) ICICI Bank (b) HDFC Bank
(c) Axis Bank (d) IDFC Bank Exercise -1
Ans: (d)

Q21. Consider the following statements about Rashtriya Mahila Kosh:
1. It is under the Ministry of Human Resource Development.
2. Its objective is to undertake activities for the promotion of credit as an instrument of socio-economic change and development among women.
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)

Q22. Consider the following statements in regards to ‘Money Market’ in India :
1. It is a market for short-term and long term funds with maturity ranging from overnight to one year.
2. It acts as an instrument of liquidity adjustment for the Central Bank.
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)

Q23. Capital deepening refers to
(a) going for more fixed capital per worker
(b) emphasis on social overhead capital
(c) constant capital-output ratio
(d) increasing capital-output ratio
Ans: (d)

Q24. The structural changes in exports means
(a) Change in the commodities of export.
(b) Increasing exports along with the imports.
(c) Increasing imports.
(d) Change in the commodities of imports
Ans: (a)

Q25. When the Reserve Bank of India reduces the Statutory Liquidity by 50 basis points, which of the following is likely to happen?
(a) India’s GDP growth rate increases drastically
(b) Foreign Institutional Investors may bring more capital into our country
(c) Scheduled Commercial Banks may cut their lending rates
(d) It may drastically reduce the liquidity to the banking system.
Ans: (c)

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