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066 Economy Previous Year Questions

Economy Previous Year Questions

Q1. For which of the following, the Reserve Bank of India has stipulated a maximum Capital Adequacy Requirements in India?
(a) Private Sector Banks
(b) Banks that Undertake Insurance Business.
(c) Local Area Banks
(d) Scheduled Commercial Banks
Ans: (c)

Q2. Which of the following will be benefited from the demonetisation step to enhance the economy?
1. Reduced corruption
2. Greater digitization of the economy
3. Increased flow of financial savings
4. Greater formalization of the economy
Select the correct answer using the codes given below:
(a) Only 1 and 2 (b) Only 2, 3 and 4
(c) Only 1, 3 and 4 (d) All the above
Ans: (d)

Q3. Which of the following governments has/have the responsibility to operate Public Distribution System (PDS):
1. Central Government
2. State Government
Select 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)

Q4. Which of the following statements is/are related with the balance of trade?
1. Balance of trade records the volume of goods and services imported as well as exported by a country to other countries.
2. The total value of goods and services traded is considered to be the volume of trade/ balance of trade.
3. The act of opening up economies for trading is known as free trade/ balance of trade.
Which the correct answer using the codes given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1 only
Ans: (d)

Q5. Which one of the following is not a component of Revenue Receipts of the Union Government?
(a) Corporate tax receipts
(b) Dividends and profits
(c) Disinvestment receipts
(d) Interest receipts
Ans: (c)

Q6. Which of the following is a cash crop?
(a) Groundnut
(b) Wheat
(c) Rice
(d) Gram
Ans: (a)

Q7. Which of the following is/are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments.
3. Loans and advances granted to the States and Union Territories.
Select the correct answer using the code given below.
(a) 1 only
(b)2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (d)

Q8. What is ‘Future Trading’?
1. It is a trade between two stock exchanges wherein it is decided to purchase stocks of each other on a fixed price throughout the year
2. It is an agreement between two parties to buy or sell an underlying asset in the future at a predetermined price
3. It is an agreement between stock exchange that they will not trade in stocks of each other in future or for a predetermined period of time Exercise -2
(a) 1 only (b) 2 only
(c) 3 only (d) All 1, 2 and 3
Ans: (b)

Q9. For National Manufacturing and Investment Zones
(NMIZ), Special Economic Zone (SEZ) and EOUs
(Exports-Oriented Units), which of the following statement is true?
(a) NMIZs and EOUs will be located within SEZs
(b) SEZs and EOUs will be located within NMIZs.
(c) NMIZs are independent of SEZs and EOUs.
(d) NMIZs and SEZs will be competitors in nature
Ans: (b)

Q10. Consider the following statements about the causes of the development of industries in coastal Gujarat and select the correct answer from the codes:
1. Advantage of an early start.
2. The growth of dairy industry in Gujarat has stimulated the consumer market.
3. The availability of hard working human labour.
Correct code:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (d)

Q11. In the context of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), consider the following statements-
1. It provides 150 days of work per year for the rural household situated in notified Tribal Areas.
2. MGNREGA includes construction of power projects in rural areas.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only
(c) Both 1 and 2 (d) Neither 1 and 2
Ans: (a)

Q12. The share of village and small-scale industries in the total output of the manufacturing sector is nearly
(a) 49%
(b) 35%
(c) 25%
(d) 15%
Ans: (b)

Q13. If it will be true to classify India as
(a) a food-deficit economy
(b) a labour-surplus economy
(c) a trade-surplus economy
(d) a capital-surplus economy
Ans: (b)

Q14. Consider the following:
1. Change in the Reserve Requirements
2. Taxation
3. Government Spending
Which among the above terms are closest to the Fiscal policy ?
(a) Only 1 & 2 (b) Only 2 & 3
(c) Only 1 (d) Only 1 & 3
Ans: (b)

Q15. Which of the following pairs are correctly matched?
1. Increase in—Monetary expansion
2. Low import growth rate in India-Recession in Indian industry
3. Euro-issues—Shares held by Indian companies in European countries
4. Portfolio investment—Foreign institutional investors.
(a) 1, 2 and 4 (b) 3 and 4
(c) 1, 2 and 3 (d) 1, 2, 3 and 4
Ans: (a)

Q16. Which of the following reforms can improve the fertiliser subsidy regime?
(a) Neem coating urea before selling
(b) De-canalizing urea imports
(c) Introducing Jan Dhan-Aadhar-Mobile(JAM) for subsidy transfer
(d) All of the above
Ans: (d)

Q17. Which of the following statements does not indicate a feature of Money Multiplier?
(a) It measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.
(b) It expresses the total amount of loans that commercial banks are allowed to extend.
(c) It is also called the credit multiplier or the deposit multiplier.
(d) The multiplier is the multiple by which the expansion in the money supply is equal to the increase in the monetary base.
Ans: (d)

Q18. The basic difference between imperative and indicative planning is that
(a) In the case of the imperative planning the market mechanism is entirely replaced by a command hierarchy, while in the case of indicative planning, it is looked upon as a way to improve the functioning of the market system
(b) In the case of indicative planning there is no need to nationalise any industry
(c) In the case of imperative planning all economic activities belong to public sector, while in the other type they belong to the private sector
(d) It is easier to achieve targets in imperative type of planning
Ans: (a)

Q19. Which of the following gives a correct picture of the share of various sectors in economic growth in India over the years?
1. Primary sector-stagnant
2. Secondary sector-increasing
3. Tertiary sector-decreasing
(a) 1 and 2 (b) 2 and 3
(c) 2 only (d) 1 only
Ans: (c)

Q20. Consider the following in regards of types of loan:
1. Draft Loan 2. Term Loan
3. Cash credit 4. Overdraft
Choose the one which is not a loan.
(a) 1 only (b) 2 only
(c) 3 only (d) 4 only
Ans: (a)

Q21. Match the following current accounts with their examples:
I. Visible Trade A. Gifts
II. Invisible Trade B. Tea
III. Unilateral Transfer C. Insurance
(a) I – b, II – c, III – a
(b) I – a, II – c, III – b
(c) I – c, II – a, III – b
Ans: (a)

Q22. Marginal cost-based lending rates (MCLR) is/are built on which of the following component/components?
1. Marginal cost of funds
2. Negative carries on account of cash reserve ratio (CRR)
3. Operating costs
4. Tenor premium
Select the correct answer using the code given below.
(a) 1, 2 and 4 only (b) 1 only
(c) 1 and 3 only (d) 1, 2, 3 and 4
Ans: (d)

Q23. Consider the following statements about micro finance sector in India:
1. Reserve Bank has relaxed the debt restructuring norms for the microfinance sector to enable banks to provide liquidity support to the crisis-ridden Micro Finance Institutions
2. The Malegam Committee set-up by RBI has recommended the capping of the interest rates microfinance institutions charge at 20 per cent.
3. Malegam committee has recommended that an NBFC will be classified as an NBFC-MFI, provided its exposure is to borrowers with an annual family income of not more than Rs 50,000 and the individual ceiling on loans to a single borrower is Rs 25,000.
Which of the statement(s) given above is/are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (c)

Q24. The Narasimham Committee for Financial Sector Reforms has suggested reduction in
(a) SLR and CRR
(b) SLR, CRR and Priority Sector Financing
(c) SLR and Financing to capital goods sector
(d) CRR, Priority Sector Financing and Financing to capital goods sector
Ans: (b)

Q25. Consider the following statement in regards to Unbalanced Economic Development
1. India has not yet achieved the goal of balanced economic development.
2. Balanced Growth mentions to a definite type of economic growth that is maintainable in the long term.
3. Balanced growth is contrasting to the high and low nature of economic cycles.
Which among the following statement is correct:
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (d)

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