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074 Economy Previous Year Questions

Economy Previous Year Questions

Q1. An objective of the National Food Security Mission is to increase the production of certain crops which are
(a) Rice and wheat only
(b) Rice, wheat and pulses only
(c) Rice, wheat, pulses and oil seeds only
(d) Rice, wheat, pulses, oil seeds and vegetables
Ans: (b)

Q2. Consider the following statements regarding India’s Tax-GDP ratio:
1. India has the lowest tax-GDP ratio amongst BRICS nations.
2. India’s tax-GDP ratio is lesser than OECD average.
3. Goods and Service Tax implementation can improve tax-
GDP ratio
4. Tax-GDP ratio can increase if the personal income tax exemption limit is increased.
Which of the statements given above are correct?
(a) 1 and 2 only (b) 2 and 3 only
(c) 1, 2 and 3 only (d) 1, 2, 3 and 4
Ans: (c)

Q3. Consider the following liquid assets:
1. Demand deposits with banks
2. Term deposits with banks
3. Saving deposits with banks
4. Currency Adjust these assets in decreasing order of liquidity:
(a) 1, 4, 3, 2 (b) 4, 3, 2, 1
(c) 2, 3, 1, 4 (d) 4, 1, 3, 2
Ans: (d)

Q4. A black market is a situation wherein
(a) Goods are loaded by the producers
(b) Goods are sold secretly
(c) Goods are sold at prices higher than what is fixed by the Government
(d) Goods are made available (sold) only after there is a rise in prices
Ans: (b)

Q5. The recent IMF loan to India will help immediately
(a) To meet the expenditure of 20-point programme
(b) To meet the expenditure of Sixth Five-Year Plan
(c) To correct the adverse balance of payments
(d) To remove poverty in India
Ans: (c)

Q6. Which one of the following brings out the publication called “Energy Statistics” from time to time?
(a) Central Power Research Institute
(b) Planning Commission
(c) Power Finance Corporation Ltd.
(d) Central Statistical Organization
Ans: (d)

Q7. Mobilization of resources and channelizing the same for productive investment is the primary purpose of
1. Expenditure 2. VAT
3. Taxation 4. CRR
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 4
Ans: (c)

Q8. 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)

Q9. Which of the following statements is/are correct with regard to the Foreign Investment Promotion Board (FIPB) in India?
1. It is an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval.
2. It offers a single window clearance for applications on Foreign Direct Investment (FDI) in India that are under the approval route.
3. The sectors under automatic route do not require any prior approval from FIPB and are subject to only sectoral laws.
Select the correct answer using the code given below.
(a) 1 and 3 only (b) 3 only
(c) 2 and 3 only (d) 1, 2 and 3
Ans: (d)

Q10. Annual Financial Statement of India is prepared every year by which of the following organizations/Departments?
(a) Central Statistics Organisation
(b) Department of Revenue Affairs
(c) Department of Economic Affairs
(d) Niti Aayog
Ans: (c)

Q11. Which one among the following is an appropriate description of deflation?
(a) it is a sudden fall in the value of a currency against other currencies
(b) It is a persistent recession in the economy
(c) It is a persistent fall in the general price level of goods and services
(d) It is fall in the rate of inflation over a period of time
Ans: (c)

Q12. In India the computation of national income is often difficult because of
(a) Large population growth
(b) Very low per capita income
(c) Very little domestic savings
(d) Non-cooperation of the private sector
Ans: (a)

Q13. Which one of the following statements appropriately describes the “fiscal stimulus”?
(a) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.
(b) It is an intense affirmative action of the government to boost economic activity in the country.
(c) It is government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.
(d) It is an extreme affirmative action by the government to pursue its policy of financial inclusion
Ans: (b)

Q14. Which of the following is the tax on income of the companies?
1. Corporation tax 2. Reliable tax
3. Compensatory tax
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (a)

Q15. What are the factors that have a definite impact on investment in agriculture?
I. Size of holdings
II. The pattern of ownership
III. The method of inheritance and security of tenure
(a) Only I (b) I & II
(c) All the above (d) None of the above
Ans: (c)

Q16. which country has tabled the “Concept Note for an initiative on Trade Facilitation in Services” at the World Trade Organization?
(a) Japan (b) India
(c) China (d) Brazil
Ans: (b)

Q17. Cut in policy rate by RBI is directed to increase which of the following ?
(a) Employment in the economy
(b) Investment in the economy
(c) Fiscal Consolidation of the economy
(d) Savings in the economy
Ans: (b)

Q18. ‘Inclusive growth’ is a phrase used in India’s
1. 9th Plan 2. 10th Plan
3. 11th Plan 4. 12th Plan
Select the correct answer using the codes given below.
(a) 1, 2 and 3 (b) 2 and 4
(c) 3 and 4 (d) Only 4
Ans: (c)

Q19. Match the columns :
A. Varanasi : 1. Indian Rare Earths Ltd.
B. Koyali : 2. Hindustan Machine Tools Ltd.
C. Pinjore : 3. Diesel Locomotive Works
D. Alwaye : 4. Petrochemical complex
Select the correct answer using the codes given below:
A B C D
(a) 4 3 2 1
(b) 3 4 2 1
(c) 1 2 3 4
(d) 1 2 4 3
Ans: (b)

Q20. An increase in the Bank Rate generally indicates that the
(a) market rate of interest is likely to fall
(b) Central Bank is no longer making loans to commercial banks
(c) Central Bank is following an easy money policy
(d) Central Bank is following a tight money policy
Ans: (d)

Q21. Debentures and Equity differ in?
(a) Debentures are bonds confirming that money has been borrowed; equity is a shareholder’s voting rights in proportion to his shareholding
(b) An equity shareholder cannot withdraw his investment but debenture holder can withdraw his money.
(c) Equity shares have greater risk compared to debentures which have fixed interest on the amount paid.
(d) Both have the right to vote irrespective of the size of their holdings. Debentures are of lower value than equity
Ans: (a)

Q22. Match the followingtotal institutional credit to agriculture:
Banks Percentage
I. Commercial bank A. 28%
II. RRB’s B. 61%
III. Co-operative banks C. 11%
(a) I – b, II – c, III – a (b) I – a, II – b, III – c
(c) I – c, II – a, III – b (d) I – b, II –a, III – c 101. In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider/greater implementation?
Ans: (a)

Q23. Which of the following is not included in the National Income?
(a) Imputed rent of owner-occupied houses
(b) Governemnt expenditure on making new bridges
(c) Winning a lottery
(d) Commission paid to an agent for sale of house
Ans: (c)

Q24. Consider the following statements regarding Real Effective Exchange Rate(REER) and Nominal Effective Exchange Rate
(NEER) in India:
1. NEER is calculated by Reserve Bank of India.
2. REER is calculated by Finance ministry.
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)

Q25. Which one of the following is an example of a ‘natural monopoly’?
(a) Indian Airlines
(b) Delhi Jal Board
(c) Delhi Transport Corporation
(d) Steel Authority of India
Ans: (b)

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