You are here
Home > QB Subjectwise > 058 Economy Previous Year Questions

058 Economy Previous Year Questions

Economy Previous Year Questions

Q1. National income of India in terms of Gross Domestic Product
(GDP) is composed of three sectors namely, Primary sector, Secondary sector and Tertiary sector. Consider the following statements regarding these sectors:
1. The primary sector consists of agriculture, forestry, fishing, Mining and quarrying.
2. Secondary sector includes manufacturing, construction and electricity, gas and water supply.
3. Tertiary sector comprises of trade, transport, finance and real estate, community and personnel services.
Which of the above statements is/are correct?
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (d)

Q2. Which of the following come under Non-plan expenditure?
1. Subsidies
2. Interest payments
3. Defence expenditure
4. Maintenance expenditure for the infrastructure created in the previous plans
Choose the correct answer using the codes given below:
(a) 1 and 2
(b) 1 and 3
(c) 2 and 4
(d) 1, 2, 3 and 4
Ans: (d)

Q3. Sector wise, maximum employment in the public sector in
(a) electricity, gas, and water
(b) community, social, and personal services
(c) finance, insurance, and real estate
(d) transport, storage, and communication
Ans: (b)

Q4. Which of the following is not an internal factor for industrial sickness?
(a) Mismanagement
(b) Power shortage
(c) Wrong dividend policy
(d) Diversion of funds
Ans: (b)

Q5. With regard to ‘Optional Fully Convertible Debenture (OFCD)’ consider the following statements:
1. It is a type of debt security where the whole value of the debenture is convertible into equity shares at the issuer’s notice.
2. The ratio of conversion is decided by the SEBI when the debenture is issued.
3. After conversion, the investors enjoy the same status as ordinary shareholders of the company.
Which of the statement given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 2 only
(d) 1 and 3 only
Ans: (d)

Q6. Consider the following statement in regard to reserve currency:
1. Reserve Currency acts at the international pricing currency in the global market for commodities like oil and gold.
2. The country whose local currency is accepted as reserve currency gets an added advantage in terms of lower commodity rates in the international market.
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)

Q7. Consider the following statements with reference to Trade Facilitation Agreement (TFA):
1. It contains provisions for expediting the movement, release and clearance of goods, including goods in transit.
2. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.
3. It will enter into force once one-thirds of the WTO membership has formally accepted the Agreement.
4. It will take effect in all WTO members when one-third members will formally accept the Agreement.
Which of the statements given above are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1, 3 and 4 only (d) 1, 2, 3 and 4
Ans: (a)

Q8. Consider the following statements:
Industrial development in India, to an extent, is constrained by
1. lack of adequate entrepreneurship and leadership in business.
2. lack of savings to invest.
3. lack of technology, skills and infrastructure.
4. limited purchasing power among the larger masses.
Which of the above statements are correct?
(a) 1, 2 and 3
(b) 1, 3 and 4
(c) 2, 3 and 4
(d) 1, 2 and 4
Ans: (c)

Q9. The Government of India has established NITI Aayog to replace the
(a) Human Rights Commission
(b) Finance Commission
(c) Law Commission
(d) Planning Commission
Ans: (d)

Q10. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?
1. Setting up of National Investment and Manufacturing Zones.
2. Providing the benefit of ‘single window clearance’.
3. Establishing the Technology Acquisition and Development Fund.
Select the correct answer using the codes given below:
(a) 1 only (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (c)

Q11. Which of the following is not the instrument of the derivative market?
(a) Debentures (b) Futures
(c) Forwards (d) Options
Ans: (a)

Q12. Which of the following statements is/are correct?
1. Bonds are always debt instruments.
2. Buying shares of a company can also be referred as equity investment.
Which the correct answer using the codes given below:
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

Q13. Consider the following statements regarding India’s debt.
1. The debt-to-GDP ratio has increased over the last decade
2. The level of government debt is below 60% of GDP
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)

Q14. Which of the following committees examined and suggested Financial Sector Reforms?
(a) Abid Hussain Committee
(b) Bhagwati Committee
(c) Chelliah Committee
(d) Narasimham Committee
Ans: (d)

Q15. Consider the following statement regarding usual status
1. One year 2. Indefinite
3. One month 4. One week Usual status (US) unemployment is calculated with reference to a period of?
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (a)

Q16. Which statement is correct regarding cottage industries?
I. Cottage industry is run by family members on full or part time basis.
II. It possesses negligible capital investment.
III. The production is done by hands and no wage earning person is employed in cottage industry.
(a) I & II (b) II & III
(c) Only II (d) All the above
Ans: (d)

Q17. Balance on capital account refers to the:
(a) nation’s sum of net exports of goods, services and financial claims.
(b) nation’s net exports of financial claims.
(c) nation’s net exports of goods and services.
(d) nation’s net exports of international official reserve assets.
Ans: (d)

Q18. Consider the following statements with respect to central banks:
1. Central banks around the world hold capital and reserves to provide buffer against risks.
2. Risks arise because of fluctuation in exchange rate and interest rates on government securities.
3. RBI’s shareholder equity to asset ratio is one of the lowest in the world.
Which of the above statements is/are correct?
(a) 1 only (b) 1 and 2 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (b)

Q19. The standard of living in a country is represented by its
(a) Per capita income
(b) Poverty ratio
(c) National income
(d) Unemployment rate
Ans: (a)

Q20. In the last one decade, which one among the following sectors has attracted the highest Foreign Direct Investment inflows into India?
(a) Chemicals other than fertilizers
(b) Services sector
(c) Food processing
(d) Telecommunication
Ans: (b)

Q21. The diagram shows a relationship between inflation and unemployment for an economy.
Which of the following policies would move the economy from A to B?
(a) Reduce interest rate and increase income tax rates
(b) Reduce interest rates and decrease income tax rates
(c) Increase interest rates and decrease income tax rates
(d) Increase interest rates and increase Income tax rates
Ans: (d)

Q22. “Everything else can wait, but not agriculture”. The statement is attributed to
(a) Jagjivan Ram (b) J.L. Nehru
(c) Mahatma Gandhi (d) Sardar Patel
Ans: (b)

Q23. The difference between total expenditure and total receipts (except loans and other liabilities) during a financial year is called:
(a) Fiscal deficit (b) Budget deficit
(c) Revenue deficit (d) Primary deficit
Ans: (a)

Q24. “Troika” holds the key to the resolution of the Greek sovereign debt crisis and also sovereign debt problems facing other Eurozone member states. Which of the following is/are included in “Troika”?
(a) International Monetary Fund
(b) European Central Bank
(c) European Commission
(d) All of the above
Ans: (d)

Q25. Which of the following is/are treated as artificial currency?
(a) ADR (b) SDR
(c) GDR (d) Both ADR & SDR
Ans: (b)

Top
error: Content is protected !!