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073 Economy Previous Year Questions

Economy Previous Year Questions

Q1. The main reason for low growth rate in India, in spite of high rate of savings and capital formation is
(a) high birth rate
(b) low level of foreign aid
(c) low capital / output ratio
(d) high capital / output ratio
Ans: (d)

Q2. Which of the following are correct
1. These measures include a reduction in spending.
2. These measures include an increase in tax
3. These measures include reduction in budget deficit.
Select the correct answer using the codes given below in regards to the austerity measures taken by a country going through adverse economy conditions:
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q3. Commerce is related to
(a) Production of goods
(b) Exchange of goods
(c) Providing occupation
(d) Providing services
Ans: (b)

Q4. An Escrow account is an:
(a) Account opened by a registered political party to manage its electoral expenses.
(b) Account of a government subsidiary in an offshore bank.
(c) Account in a bank which a third party holds during the process and period of transaction between two parties.
(d) Account seized by the Financial Action Task Force.
Ans: (c)

Q5. Which of the following statements, regarding the Inflation Indexed Bonds (IIB’s) in India is/are correct?
1. Pertinence for IIB’s has grown due to inflation rate being higher than bank interest rates and also to deepen the domain of public debt.
2. IIB’s are based on Consumer Price Index (CPI).
3. Foreign Institutional Investors (FII’s) are barred from purchasing IIB’s.
Which the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only
(c) 1 and 3 only (d) 1, 2 and 3
Ans: (a)

Q6. ‘Base Rate’ in India is determined by:
(a) The Reserve Bank of India
(b) State Bank of India
(c) Banks may determine by itself
(d) Both (a) and (c)
Ans: (c)

Q7. Which one of the following countries has replaced Italy as the major importer of bauxite from India?
(a) Canada
(b) Greece
(c) Ukraine
(d) United Arab Emirate
Ans: (a)

Q8. The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is not true in this regard?
(a) With the advent of liberalization, industrial investments/development have largely been placed within the domain of private and multinational sectors.
(b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant
(c) The focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare.
(d) The nation’s priorities have shifted away from industrial development to rural development
Ans: (d)

Q9. Explain ‘joint sector’ in India?
(a) Where the government has more than 50% share
(b) Product produced together by the public and private sectors is called the joint sector
(c) It is an enterprise owned jointly by both the sectors
(d) It is an enterprise owned jointly by an Indian and a foreign enterprise
Ans: (c)

Q10. Which of the following statements is correct?
(a) National Income is always more than Gross Domestic Product.
(b) National Income is always equal to Gross Domestic Product.
(c) National Income is always less than Gross Domestic Product.
(d) National Income may be less or more than Gross Domestic Product.
Ans: (d)

Q11. According to RBI, the comfortable level of inflation (means it neither hurts in human terms nor in growth terms) is around:
(a) 2% (b) 7%
(c) Zero (d) 5%
Ans: (d)

Q12. Which of the following statements is/are correct about the National Finance Commission of India?
1. It consists of a chairman and five other members to be appointed by the President.
2. It decides the distribution of net proceeds of taxes to be shared between the Centre and the states.
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: (b)

Q13. Which of the following can aid in furthering the Government’s objective of inclusive growth ?
1. Promoting Self-Help Groups.
2. Promoting Micro Small and Medium Enterprises.
3. Implementing the Right to Education Act.
Select the correct answer using the codes given below:
(a) 1 only (b) 1 and 2
(c) 2 and 3 (d) 1, 2 and 3
Ans: (d)

Q14. Arrange the following Acts in order in which they were enacted. Use the codes given below.
1. The Industrial Employment (Standing orders) Act.
2. The Indian Trade Unions Act
3. The Industrial Disputes Act
4. The Employment Exchange (Compulsory Notification) Act
Codes:
(a) 2, 1, 3, 4 (b) 3, 4, 1, 2
(c) 1, 2, 4, 3 (d) 4, 3, 2, 1
Ans: (a)

Q15. Consider the following statements:
1. Gross National Product (GNP) is the market value of all officially recognized final goods and services produced within a country in a given period of time, while Gross Domestic Product (GDP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country.
2. The Net Domestic Product (NDP) is calculated by deducting depreciation on a country’s capital goods from the Gross Domestic Product (GDP), while the Net National Product
(NNP) is calculated by deducting depreciation from the Gross National Product (GNP).
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: (b)

Q16. With regard to Co-operative Banks, consider the following statements:
1. Co-operative banks performs all the main banking functions of deposits mobilisation, supply of credit and provision of remittance facilities.
2. All co-operative banks are scheduled banks.
3. They are subject to CRR and SLR requirements as other banks.
Which of the above statements is/are correct?
(a) 2 and 3 only (b) 1 only
(c) 1 and 3 only (d) 1 and 2 only
Ans: (c)

Q17. On recommendation of SEBI, the Government has notified which of following new commodities for derivatives trading?
1. Diamond 2. Brass
3. Pig Iron 4. Eggs
5. Cocoa 6. Tea
Which the correct answer using the code given below.
(a) 1, 2, 3 and 4 only (b) 1, 2, 3, 5 and 6 only
(c) 3, 4, 5 and 6 only (d) 1, 2, 3, 4, 5 and 6
Ans: (d)

Q18. Consider the following statements regarding Reserve Bank of India:
I. It is a banker to the Central Government.
II. It formulates and administers monetary policy.
III. It acts as an agent of the Government in respect of India’s membership of IMF.
IV. It handles the borrowing programme of Government of India.
Which of these statements are correct?
(a) I and II
(b) II, III and IV
(c) I, II, III and IV
(d) III and IV
Ans: (a)

Q19. List-I List-II
(A) Development (1) UN India Human Programme Development Report
(B) National Council of (2) India Development Applied Economic Report Research
(C) Indira Gandhi Institute (3) World Development of Development Report Research
(D) World Bank (4) Human Report Development
(a) A – 4 ; B – 1 ; C – 2 ; D – 3
(b) A – 4 ; B – 2 ; C – 1 ; D – 3
(c) A – 2 ; B – 3 ; C – 4 ; D – 1
(d) A – 2 ; B – 1 ; C – 4 ; D – 3
Ans: (a)

Q20. What is departmental undertaking?
I. They are primarily meant to provide essential services such as railways.
II. They are public enterprises that came into existence by a Special Act of the Parliament.
III. They are companies in which 51% or more of the paid up capital is held by the central or any state government (partly or wholly by both).
IV. They are set up whenever it is felt that certain functions need to be discharged outside the governmental set up with some amount of independence and flexibility without day-to-day interference from the governmental machinery
(a) Only I (b) I & III
(c) Only III (d) None of the above
Ans: (a)

Q21. Which of the following is the difference between value at market prices and value at factor cost for a national income aggregate?
(a) Value of consumption of fixed capital
(b) Value of indirect taxes net of subsidies
(c) Value of subsidies net of direct taxes
(d) Value of net factor income earned abroad
Ans: (b)

Q22. Consider the following statements:
1. Repo rate is the interest rate at which RBI lends to commercial banks for short period.
2. Reverse repo rate is the interest rate which RBI pays to commercial banks on short-term deposits.
3. Gap between repo rate and reverse repo rate has declined in India in the recent past.
Which of the above is/are not correct?
(a) 1 only (b) 2 only
(c) 2 and 3 only (d) None of the above
Ans: (d)

Q23. The annual record for all the monetary transactions of a country with other countries of the world is known as
(a) Balance of trade
(b) Balance of monetary-receipts
(c) Balance of payments
(d) Balance Sheets
Ans: (c)

Q24. Which one of the following companies has started a rural marketing network called e-chaupal?
(a) ITC
(b) Dabur
(c) Proctor and Gamble
(d) Hindustan Lever
Ans: (a)

Q25. 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)

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