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056 Economy Previous Year Questions

Economy Previous Year Questions

Q1. What does S & P 500 relate to?
(a) Supercomputer
(b) A new technique in e-business
(c) A new technique in bridge building
(d) An index of stocks of large companies
Ans: (d)

Q2. Which of the following refers to the RBI buying and selling eligible securities to regulate money supply?
1. Repo and Reverse Repo
2. Open Market Operations
3. Response and Reverse Repo
4. Relative Market Operations
(a) 1 and 2 (b) 2 only
(c) 3 only (d) 1, 2 and 4
Ans: (b)

Q3. Consider the following statements:
India continues to be dependent on imports to meet the requirement of oilseeds in the country because
1. farmers prefer to grow foodgrains with highly remunerative support prices.
2. most of the cultivation of oilseed crops continues to be dependent on rainfall
3. oils from the seeds to tree origin and rice bran have remained unexploited
4. it is far cheaper to import oilseeds than to cultivate the oilseed crops
Which of the statements given above are correct?
(a) 1 and 2 (b) 1, 2 and 3
(c) 3 and 4 (d) 1, 2, 3 and 4
Ans: (d)

Q4. Energy statistics are measured by:
(a) The Ministry of Mines
(b) The Ministry of New and Renewable Energy
(c) The Ministry of Statistics and Programme Implementation
(d) The Department of Atomic Energy
Ans: (c)

Q5. Which of the following functions separate a bank from a Non-
Banking Financial Company?
1. NBFC cannot accept demand deposits
2. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself
3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs
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)

Q6. Which of the fallowing are responsible for the decrease of per capita holding of cultivated land in India?
1. Low per capita income.
2. Rapid rate of increase of population.
3. Practice of dividing land equally among the heirs.
4. Use of traditional techniques of ploughing.
Select the correct answer using the codes given below
(a) 1 and 2 (b) 2 and 3
(c) 1 and 4 (d) 2,3 and 4
Ans: (b)

Q7. North-South dialogue refers to talks
(a) For reorganisation of States between North India and South India
(b) For sharing economic resources between rich countries of the North and poor countries of the South
(c) Between countries of North America and South America for economic cooperation
(d) Between U.S.A. and U.S.S.R. in the field of space research
Ans: (b)

Q8. With reference to India, consider the following:
1. Nationalization of Banks
2. Formation of Regional Rural Banks
3. Adoption of villages by Bank Branches
Which of the above can be considered as steps taken to achieve the “financial inclusion” in India?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Ans: (d)

Q9. Which of the following refers to the use by the government of the various instruments such as taxation, expenditure and borrowing in order to achieve the objectives of balanced economic development etc?
1. Annual financial statement
2. Fiscal policy
3. Revenue budget
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (b)

Q10. Which among the below are the products in which India is 1st in the world?
I. Milk
II. Pulses
III. Spices
IV. Jute
(a) I, II & III (b) I, II & IV
(c) II, III &IV (d) All the above
Ans: (d)

Q11. Which of the following statements is/are correct?
1. The Office of the Economic Adviser is under the Ministry of Finance
2. Consumer Price Index (CPI) is released by the Office of the Economic Adviser
Select the correct answer using the code given below.
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q12. What is meant by Inflation Premium?
(a) It is the difference between real interest rate and nominal interest rate charged by banks.
(b) When a firm accounts inflation before it bring forth its profit.
(c) The premium accrued by the government, when it resorts to print currency during high inflation.
(d) All of above.
Ans: (a)

Q13. If the average total cost is declining then
(a) the marginal cost must be less than the average total cost
(b) total cost must be constant
(c) the average fixed cost curve must be above the average variable cost curve
(d) the marginal cost must be greater than the average total cost
Ans: (a)

Q14. Assertion (A): Though three decades have passed since Independence, still many people are living below poverty line in India.
Reason (R): Five-Year Plans have failed to achieve the targeted growth rate.
(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: (c)

Q15. Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the central bank
2. Deposit of currency in commercial banks by the public
3. Borrowing by the government from the central bank
4. Sale of government securities to the public by the central bank
Select the correct answer using the codes given below:
(a) 1only
(b) 2 and 4 only
(c) 1 and 3
(d) 2, 3 and 4
Ans: (c)

Q16. Which of the following statements correctly expresses the difference between preference shares and equity shares?
(a) equity shareholders have no voting right but preference shareholders have voting rights
(b) preference shareholders have no have voting rights but equity shareholders have voting rights
(c) preference shareholders have no right to profit whereas equity shareholders have a right to profit
(d) preference shareholders get exemption from taxes while equity shareholders do not get any exemption
Ans: (c)

Q17. What is correct statement with regard to buffer stocking?
I. It is the practice of holding large stocks by government agencies like Food Corporation of India (FCI) and releasing the stocks in the market to counter price rise
II. The buffer stock also helps to maintain the Public Distribution System (PDS).
(a) Only I (b) Only II
(c) Both I & II (d) None of the above
Ans: (c)

Q18. The supply of agricultural products is generally
(a) elastic (b) inelastic
(c) perfectly elastic (d) perfectly inelastic
Ans: (b)

Q19. Which of the following programmes of the Union Government of India is not correctly matched?
(a) PAHAL: Ministry of Petroleum and Natural Gas
(b) PRASAD: Ministry of Tourism
(c) HRIDAY: Ministry of Transport
(d) IWMP: Ministry of Rural Development
Ans: (c)

Q20. Which one of the following is the major source of gross tax revenue (GTR) for the Government of India?
(a) Income tax (b) Corporation tax
(c) Customs duty (d) Service tax
Ans: (b)

Q21. Which of the following industries was affected most due to partition?
(a) Cotton and jute
(b) Small scale industries
(c) Steel industries
(d) Tea and cotton
Ans: (a)

Q22. The sales tax you pay while purchasing a toothpaste is a
(a) tax imposed by the Central Government
(b) tax imposed by the Central Government but collected by the State Government
(c) tax imposed by the State Government but collected by the Central Government
(d) tax imposed and collected by the State Government
Ans: (d)

Q23. When there is an inflationary trend in the economy, what would be trend in the pricing of the Bank Products?
(a) Increasing Trend
(b) Decreasing Trend
(c) Constant Trend
(d) There is no relevance of the inflation in pricing of the Banking Products
Ans: (a)

Q24. Developments in the US, especially the rise of the dollar, will have implications for China’s currency and currency policy. Consider the following statements in relation to it and choose the correct code given below.
Statement I : If China is able to successfully re-balance its economy, the spillover effects on India and the rest of the world will be positive.
Statement II : Further declines in the yuan, even if dollarinduced, could interact with underlying vulnerabilities to create disruptions in China that could have negative spillovers for India.
The correct code is —
(a) Only I correct
(b) Only II is correct
(c) I &II both are correct
(d) Neither I nor II is correct
Ans: (c)

Q25. What does term ‘Green Shoots’ represents in an economy?
(a) Signs of growth of agriculture sector in a growing economy.
(b) Signs of economic recovery during an economic downturn.
(c) Signs of growth of agriculture sector in a declining economy.
(d) Signs of economic decline in a developed economy.
Ans: (b)

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