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045 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Consider the following statements :
The function of the Reserve Bank of India does not include:
1. Open market operations
2. Monitoring revenue collection
3. Supervising non-banking finance companies
4. Review of public expenditure
Which of the statement/s given above is/are correct?
(a) 1 only (b) 2 and 4
(c) 1, 3 and 4 (d) 1, 2, 3 and 4
Ans: (b)

Q2. Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?
(a) Commerical loans
(b) Foreign Direct Investment
(c) Foreign Portfolio Investment
(d) External Commercial Borrowings
Ans: (b)

Q3. Consider the following statements about India ‘Infrastructure Index Series’:
1. ‘India Infrastructure Index Series’ is designed to represent the performance of those Indian companies that generate the majority of their revenue from infrastructure.
2. The series is reviewed annually in accordance with the index ground rules.
Which of the statements given above is/are wrong?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

Q4. Which of the following institutions publishes the World Investment Report?
(a) World Trade Organization (WTO)
(b) United Nations Conference on Trade and Development
(UNCTAD)
(c) World Bank
(d) International Monetary Fund (IMF)
Ans: (b)

Q5. Based on the ideals of Supportive Economic Increment, complete nationalisation based planning was first adopted by
(a) China
(b) USSR
(c) Poland
(d) Cuba
Ans: (b)

Q6. Consider the following statements:
1. The Standard Mark of Bureau of Indian Standards
(BIS) is mandatory for automotive tyres and tubes.
2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).
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)

Q7. Consider the following:
1. Commercial Banks 2. Central Bank of India
3. Government
Which among the above can create money?
(a) Only 1 (b) Only 1 & 2
(c) Only 3 (d) All 1 2 & 3
Ans: (d)

Q8. AoA in context with World Trade Organization is ___?
(a) Article of Association
(b) Agreement on Agriculture
(c) Agreement on Association
(d) Administration of Agriculture
Ans: (b)

Q9. Consider the following statements:
1. India rank’s first in milk production in the World followed by USA.
2. India’s total contribution in milk production is 18.81% of the World production.
Which of the above statements is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q10. Which among the following can act as ‘Financial Intermediaries’?
1. Building societies
2. Insurance Companies
3. Credit Unions
4. Self Help Groups
Which the correct answer using the codes given below:
(a) 2 only (b) 1 and 2 only
(c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Ans: (d)

Q11. Which one of the following pairs is correctly matched?
(a) Rationing : Fiscal control
(b) Cash Reserve Ratio :
Selective Credit Control
(c) Licensing : Comprehensive Control
(d) Import Quota : Physical control
Ans: (d)

Q12. National product at factor cost is equal to
(a) Domestic product + Net factor income from abroad
(b) National product at market prices – indirect taxes + subsidies
(c) Gross domestic-product – depreciation
(d) National product at market prices + Indirect taxes + subsidies
Ans: (a)

Q13. What are the measures of checking deflation?
1. Increasing money supply
2. Promote credit creation by the banks.
3. Curtailment in taxes so as to increase the purchasing power of the people.
Choose the correct measure.
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2, 3
Ans: (d)

Q14. Why did the fixed exchange rate system collapsed?
I. The build up of US debts abroad as a result of the need to fund the war in Vietnam
II. Inflation in the USA
III. Growing doubts about the stability of the US$.
(a) Only I (b) I & II
(c) II & III (d) All the above
Ans: (d)

Q15. Consider the following statements regarding farm-gate and wholesale ‘price wedge’:
1. The price wedge for rice and wheat is greater than onion, potato and groundnuts.
2. The perishability of a product is an important factor driving the wedges.
3. The National Agricultural Market would reduce the price wedge.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 and 3 only
(c) 1 and 2 only (d) 1, 2 and 3
Ans: (b)

Q16. “Arbitrage” in economy refers to:
(a) Investing money in with intent of taking advantage of a price difference between two or more markets.
(b) Investing money in foreign markets.
(c) Investing money in domestic markets.
(d) Investing money in government.
Ans: (a)

Q17. Which of the following pairs are correctly matched?
1. Increase in foreign : Monetary expansion exchange reserves
2. Low import growth : Recession in Indian Industry
3. Euro-issues : Shares held by Indian companies in European countries
4. Portfolio investment : Foreign institutional investors
Select the correct answer by using the following codes:
(a) 1, 2 and 4
(b) 3 and 4
(c) 1, 2 and 3
(d) 1, 2, 3 and 4
Ans: (a)

Q18. Arrange the following stages of population growth in chronological order
1. population explosions
2. low birth rates and low death rates
3. stable or slow population growth
Select the correct answer using the codes given below.
(a) 1, 2, 3 (b) 3, 1, 2
(c) 3, 2, 1 (d) 1, 3, 2
Ans: (b)

Q19. Match the following.
Goods Example
i. Public goods A. Primary education
ii. Merit goods B. National defence
iii. Non-merit goods C. Pollution
(a) i-a, ii-b, iii-c (b) i-b, ii-a, iii-c
(c) i-c, ii-b, iii-a (d) i-a, ii-c, iii-b
Ans: (b)

Q20. Match the following sectors with the percentage of FDI:
Sectors Percentage
I. Private sector A. 49% banking
II. Defence B. 20%
III. Print media C. 74%
IV. Public sector banks D. 26%
(a) I-c, II-a, III-d, IV-b (b) I-d, II-a, III-c, IV-b
(c) I-a, II-a, III-c, IV-b (d) I-c, II-d, III-a, IV-b
Ans: (a)

Q21. Which of the following steps can be taken by a country to handle the situation of “Balance of payment” crisis?
1. Improving current account balance by increasing exports or decreasing imports or both.
2. Improving capital account balance with more external borrowings/FDI.
3. Expansionary fiscal and monetary policies.
4. Currency devaluation.
Which the correct answer using the codes given below:
(a) 1, 2 and 3 only (b) 2, 3 and 4 only
(c) 1, 2 and 4 only (d) 1, 2, 3 and 4
Ans: (c)

Q22. Blue economy is a better and sustainable way of development. The Indian Ocean Rim Association identified eight priority areas for cooperation in the Blue Economy. Which of the following areas are part of it?
1. Fisheries and Aquaculture
2. Renewable Ocean Energy
3. Tourism
4. Marine Biotechnology, Research and Development
Choose the correct answer using code given below:
(a) 1 and 2 only (b) 1, 2 and 3 only
(c) 2 and 3 only (d) 1, 2, 3 and 4
Ans: (d)

Q23. Match List I with List II and select the correct answer by using the codes given below the lists:
List I : List II
(Committees) : (Chaired by)
A. Disinvestment of shares in Public Sector Enterprises : 1.Rajah Chelliah
B. Industrial Sickness : 2. Omkar Goswami
C. Tax Reforms : 3. R.N. Malhotra
D. Reforms in Insurance : 4. C. Rangarajan Sector
Codes:
A B C D
(a) 1 4 2 3
(b) 4 2 1 3
(c) 4 1 2 3
(d) 1 3 4 2
Ans: (b)

Q24. Relative poverty refers to a situation where:
(a) a person falls behind others
(b) a person is unable to obtain the necessaries for life
(c) a person is below poverty line
(d) a person is poorer than another in the developed world
Ans: (a)

Q25. What is a ‘limited company’?
(a) In which shareholders possess the ownership limited to their paid up capital
(b) In which shares are issued
(c) A company of Government ownership
(d) A Registered Company
Ans: (a)

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