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057 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Currency Devaluation done by the government leads to which of the following ?
(a) Fall in domestic prices
(b) Increase in domestic prices
(c) No impact on domestic prices
(d) Irregular fluctuations in domestic prices
Ans: (b)

Q2. Which one of the following is/are credit rating agency/ agencies in India ?
(a) CRISIL (b) CARE
(c) ICRA (d) All of the above
Ans: (d)

Q3. A suitable site of a cement plant requires proximity to
(a) Coal and iron
(b) Limestone and manganese
(c) Limestone and gypsum
(d) Coal and gypsum
Ans: (c)

Q4. The establishment of “Payment Banks’ is being allowed in India to promote Financial inclusion.
Which of the following statements is/are correct in this context?
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
Ans: (b)

Q5. Consider the following statements:
1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
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)

Q6. Which unit of valuation is known as ‘paper gold’?
(a) Eurodollar (b) Petrodollar
(c) SDR (d) GDR
Ans: (c)

Q7. Which of the following is the most appropriate reason behind growth in regional per capita income disparities in India?
(a) Decline in the share of public investments
(b) Poor governance and poor infrastructure
(c) Allocation of funds through the award of finance commission
(d) Discriminatory investment policy regimes of government
Ans: (b)

Q8. With reference to the Insolvency and Bankruptcy Board of India
(IBBI), consider the following statements:
1. It functions under the chairmanship of the RBI Governor.
2. It is a 15 member board including the Governor of RBI.
3. It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies and Information Utilities.
Which of the above statements is/are correct?
(a) 3 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (a)

Q9. Unemployment which occurs when workers move from one job to another job is known as
(a) Seasonal unemployment
(b) Frictional unemployment
(c) Technological unemployment
(d) Cyclical unemployment
Ans: (b)

Q10. Which indicators are used to calculate the Human Development Index (HDI)?
(a) Population growth, per capita GDP, life expectancy
(b) Population growth, infant rate, malnutrition
(c) Life expectancy, educational attainment, per capita GDP
(d) Current account balance, infant mortality rate, educational attainment.
Ans: (a)

Q11. Consider the following statements:
1. Deficit financing essentially involves public expenditure in excess of public revenue
2. In Deficit financing, the new currency replaces the old currency
Which among the above statements is / are correct?
(a) Only 1 is correct (b) Only 2 is correct
(c) Both are correct (d) Both are incorrect
Ans: (a)

Q12. Which of the following were the aims behind the setting up of the World Trade Organization (WTO)?
1. promotion of free trade and resource flows across countries
2. protection of intellectual property rights
3. managing balanced trade between different countries
4. promotion of trade betwen the former East Bloc countries and the Western World
(a) 1, 2, 3 and 4 (b) 1 and 2
(c) 2 and 3 (d) 1 and 4
Ans: (b)

Q13. Which of the following Consumer Price Index Numbers has been compiled and released by Labor Bureau?
(a) Consumer Price Index Numbers for Industrial workers
(b) Consumer Price Index for Rural Laborers
(c) Consumer Price Index for Agricultural Laborers
(d) All of the above
Ans: (d)

Q14. A consumer attains his/her equilibrium at the point where:
(a) Total Utility = Price (b) Marginal Utility > Price
(c) Marginal Utility < Price (d) Marginal Utility = Price
Ans: (d)

Q15. Which of the following are the main causes of slow rate of growth of per capita income In India?
1. High capital-output ratio
2. High rate of growth of population
3. High rate of capital formation
4. High level of fiscal deficits
Select the correct answer from the codes given below:
(a) 1, 2, 3 and 4
(b) 2, 3 and 4
(c) 1 and 4
(d) 1 and 2
Ans: (d)

Q16. Consider the following specific stages of demographic transition associated with economic development :
1. Low birth rate with low death rate
2. High birth rate with high death rate
3. High birth rate with low death rate
Select the correct order of the above stages using the codes given below :
(a) 1, 2, 3 (b) 2, 1, 3
(c) 2, 3, 1 (d) 3, 2, 1
Ans: (c)

Q17. What are the functions of RBI?
1. Issue of notes
2. Banker to the government
3. Controller of debit
4. Custodian of foreign reserves
Choose the incorrect function of RBI.
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (c)

Q18. What is meant by term Balance of Trade?
I. Those transactions arising out of exports and imports
(the visible items)
II. It is a statistical statement of all transactions made between one particular country and all other countries during a specified period of time
III. This account is the summary of all international trade transactions of the domestic country in one year
(a) I & III (b) Only I
(c) Only II (d) None of the above
Ans: (b)

Q19. Consider the following statements regarding recommendations of Committee on Digital Payments chaired by Mr. Ratan P. Watal:
1. The function of regulating payments should be independent from the RBI
2. A fund called DIPAYAN (Digital Payments Action Network) should be created using savings generated from cashless transaction for promoting and incentivising digital payments
3. Convenience fee, service charge or surcharge currently levied on electronic payments (such as, at petrol pumps, the railways or the airlines) should be withdrawn
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: (d)

Q20. Which one of the following taxes/cess is not levied by Centre in India?
(a) Tax on Wealth (b) Tax on Motor Vehicles
(c) Tax on Hotels (d) Educational Cess
Ans: (b)

Q21. The Dinesh Goswami Committee was concerned with
(a) de-nationalisation of banks
(b) electoral reforms
(c) steps to put down insurgency in the North-East
(d) the problem of the Chakmas
Ans: (b)

Q22. Consider the following statement related to population
1. An effective employment policy, which can absorb the growing number of workers and promote economic growth.
2. An imaginative family planning programme to encourage families to adopt the small family norm.
Which among the above statements is / are not correct?
(a) 1 only (b) 2 only
(c) 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Q23. Which of the following can’t be classified as an objective of business?
(a) Investment (b) Productivity
(c) Innovation (d) Profit earning.
Ans: (a)

Q24. Consider the following statements about aggregate demand in an economy:
1. If the export in an economy rises then it shall necessarily rise.
2. When it becomes equal to aggregate supply, it becomes effective demand for the economy.
Which of the statements given above is/are incorrect?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

Q25. Consider the following statements regarding RBI (Reserve Bank of India):
1. RBI has allowed foreign branches (subsidiaries of India Banks) to offer structured financial and derivative products outside India.
2. RBI has issued guidelines to allow minors of age above 10 years to independently open and operate savings bank account.
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)

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