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053 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which of the following refers to the freedom for firms and residents to freely buy into overseas assets?
1. Capital Account Consumption
2. Capital Across Convertibility
3. Capital Account Continuity
4. Capital Account Convertibility
(a) 1 only (b) 1 and 2
(c) 3 only (d) 4 only
Ans: (d)

Q2. Consider the following statements:
1. Regarding the procurement of foodgrains, Government of India follows a procurement target rather than an open-ended procurement policy.
2. Government of India announces minimum support prices only for cereals
3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central issue prices to the States/Union Territories.
Which of the statements given below above is/are correct?
(a) 1 and 2 (b) 2 only
(c) 1 and 3 (d) 3 only
Ans: (d)

Q3. The Rule of Origin is related with:
(a) IMF (b) World Bank
(c) WTO (d) UNCTAD
Ans: (c)

Q4. The Insolvency and Bankruptcy Board of India has been established under which of the following?
(a) Reserve Bank of India (RBI)
(b) Securities and Exchange Board of India (SEBI)
(c) Ministry of Corporate Affairs
(d) Ministry of Finance
Ans: (c)

Q5. Statement I Deficit financing does not lead to inflation if adopted in small doses.
Statement II Deficit financing is an often used tool for financing budgetary deficits.
Codes :
(a) Both the Statements are individually true and Statement II is the correct explanation of Statement
(b) Both the Statements are individually true, but Statement II is not the correct explanation of Statement I
(c) Statement I is true, but Statement II is lalse
(d) Statement I is false, but Statement II is true
Ans: (b)

Q6. If instead of wooden ploughs iron ploughs are used it would be an example of
(a) Obsolete technology
(b) Appropriate technology
(c) Redundant technology
(d) Ultimate technology
Ans: (b)

Q7. With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?
(a) The Banking Ombudsman is appointed by the Reserve Bank of India
(b) The Banking Ombudsman can consider complaints from Non- Resident Indians having accounts in India
(c) The orders passed by the Banking Ombudsman are final and binding on the parties concerned
(d) The service provided by the Banking Ombudsman is free of any fee
Ans: (c)

Q8. Which of the following refers to the set of measures adopted by the central bank?
1. Monetary policy 2. GAAR
3. Finance Commission 4. Black Money
(a) 1 only (b) 1 and 2
(c) 3 only (d) 4 only
Ans: (a)

Q9. 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 of these
Ans: (b)

Q10. The Government e-Marketplace (GeM) is often seen in the news, it aim/aims to:
(a) transform the way in which procurement of goods and services is done by the Government Ministries/Departments, PSUs, autonomous bodies etc.
(b) create completely paperless, cashless and system driven e-market place that enables procurement of common use goods and services with minimal human interface.
(c) bring all the corporate companies under the online platform.
(d) Both (a) and (b)
Ans: (d)

Q11. In the United Nation’s Human Poverty Index which of the following is not a component?
(a) Long term unemployment for developing countries
(b) Relative poverty for developed countries
(c) Adult literacy rate for developing countries
(d) All of the above
Ans: (a)

Q12. The production function of a firm will change whenever
(a) input price changes
(b) the firm employs more of any input
(c) the firm increases its level of output
(d) the relevant technology changes
Ans: (d)

Q13. Assertion (A): Our agricultural growth rate is small even after proper planning and huge investments.
Reason (R): The land reform measures are not carried up to the mark
(a) A and R both are incorrect
(b) A is correct but R is incorrect
(c) A and R are correct and R is the correct explanation of A
(d) A and R are correct but R is not the correct explanation of A.
Ans: (d)

Q14. Under which of the following circumstances may ‘capital gains ‘arise?
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 2 only
(d) 1, 2 and 3
Ans: (b)

Q15. To know whether the rich are getting richer and the poor getting poorer, it is necessary to compare
(a) the wholesale price index over different periods of time for different regions
(b) the distribution of income of an idential set of income recipients in different period of time
(c) the distribution of income of different sets of income recipients at a point of time
(d) the availability of foodgrains among two sets of people, one rich and the other poor, over different period of time
Ans: (b)

Q16. What are medium term loans?
I. These are provided for a period of less than 15 months to meet out expenses of routine farming and domestic consumptions
II. These are provided for a period of 15 months to 5 years to purchase agricultural equipments, animals and for land improvements.
III. These are provided for a period of more than 5 years.
(a) Only II (b) Only I
(c) Only III (d) None of the above
Ans: (a)

Q17. With which form of economy is the term ‘Laissez-faire’ associated?
(a) Capitalist economy (b) Socialist economy
(c) Mixed economy (d) Command economy
Ans: (a)

Q18. What will happen to the supply curve of a firm in the case of technological progress?
(a) It will shift to the right (b) It will shift to the left
(c) It will remain unchanged (d) None of the above
Ans: (a)

Q19. Which of the following does not form part of current account of Balance of Payments?
(a) Export and import of goods
(b) Export and import of services
(c) Income receipts and payments
(d) Capital receipts and payments
Ans: (d)

Q20. The long-term fiscal policy formulated in the context of Seventh Five-Year Plan lays emphasis on
(a) Tackling the problems of deep-seated poverty and unemployment
(b) Reforming taxing system
(c) Capital formation by increasing money income and reducing real consumption
(d) Making taxes easily comprehensible to the tax payers
Ans: (a)

Q21. What does venture capital mean?
(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries
Ans: (b)

Q22. In which among the following types comes the Interest Rate Risk?
(a) Credit risk (b) Market risk
(c) Operational risk (d) All the above categories
Ans: (b)

Q23. Twin balance sheet problem refers to—
(a) Over-indebtedness in the corporate and banking sectors
(b) Over-indebtedness of State governments and Central government
(c) A malpractice of accounting in corporate sector
(d) A malpractice of accounting in MSME sector
Ans: (a)

Q24. Consider the following statements:
1. e – Business is the method of buying and selling goods and services over the internet.
2. e – Commerce is the use of computers and internet by the business firms to link both the internal operations and its external operations.
Which of the statements given above is/are not correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q25. Consider the following statements in regard to ‘Special Safeguard Mechanism (SSM) of WTO:
1. It allows a country to raise tariff for certain products permanently.
2. It is available with all the members of WTO
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: (d)

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