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075 Economy Previous Year Questions

Economy Previous Year Questions

Q1. Which one of the following bodies finalises the Five- Year Plans proposals?
(a) Planning Commission
(b) Union Cabinet
(c) National Development Council
(d) Ministry of Planning
Ans: (c)

Q2. Consider the following pairs:
Programme Project Ministry
1. Drought Prone area Ministry of Agriculture Programme
2. Desert Development Ministry of Environment Programme and Forests
3. National Watershed Ministry of Rural Development Project Development for Rainfed Areas
Which of the above pairs is/are correctly matched?
(a) 1 and 2 only
(b) 3 only
(c) 1, 2 and 3
(d) None
Ans: (d)

Q3. Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?
(a) The cash resources at the disposal of the commercial banks increase.
(b) The cash resources at the disposal of the commercial banks get diminished.
(c) The cash resources of the commercial banks remain unchanged.
(d) None of the above.
Ans: (b)

Q4. Consider the following statements w.r.t part XIII of Indian constitution?
1. Trade, commerce and intercourse throughout the territory of India shall be free subject to some provisions
2. Parliament has the power to restrict free trade between and within states on grounds of public interest.
3. State legislature by law can impose ‘reasonable restrictions’ on freedom of trade in public interest.
4. No law by Parliament or State legislatures can discriminate between states in terms of trade.
5. State can by law impose such taxes that prevents any discrimination between goods imported and goods manufactured in the State.
Identify the correct statements.
(a) 1 & 5 only (b) 2 & 3 only
(c) All are correct (d) None are correct
Ans: (c)

Q5. Paper industry plays a vital role in the socio-economic development of any country. Consider the following statements in this regard:
1. Per capita paper consumption is a yardstick to measure the modernity.
2. The key social objective of the Government namely, eradication of illiteracy through compulsory primary education bears a direct relation with the paper industry.
3. The Indian paper industry plays a pivotal role in overall industrial growth and provides the vital vehicle needed to propel the knowledge based economy of the country in the new millennium.
4. Dependency on paper is more eco friendly than on electronic gadgets because there is no emission.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Ans: (a)

Q6. Which of the following is not a part of India’s national debt?
(a) National Savings Certificates
(b) Dated Government securities
(c) Provident funds
(d) Life insurance policies
Ans: (d)

Q7. The Twelfth Five-Year Plan focussed on inclusive growth.
Which of the following were considered as challenges for inclusiveness ?
1. Poverty 2. Group inequality
3. Regional imbalance 4. Unemployment
Select the correct answer using the code given below.
(a) 1, 3 and 4 only (b) 1, 2, 3 and 4
(c) 1, 2 and 4 only (d) 2 and 3 only
Ans: (a)

Q8. The term “Fiscal Crisis” in India currently refers primarily to
(a) Increase in non-developmental government expenditure
(b) Increase in public debt
(c) Recurring deficit on current account in the government budget
(d) Phenomenal increase in external indebtedness
Ans: (c)

Q9. ‘Rashtriya Garima Abhiyaan’ is a national campaign to
(a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood
(b) release the sex workers from the practice and provide them with alternative sources of livelihood
(c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers
(d) release the bonded labourers free their bondage and rehabilitate them
Ans: (c)

Q10. Which of the following measures should be taken when an economy is going through in inflationary pressures?
1. The direct taxes should be increased.
2. The interest rate should be reduced.
3. The public spending should be increased.
Select the correct answer using the codes given below:
(a) Only 1 (b) Only 2
(c) 2 and 3 (d) 1 and 2
Ans: (a)

Q11. TRIPS (Trade Related aspects of Intellectual Property Rights) agreements is administered by
(a) United Nations Conference on Trade and Development (UNCTAD)
(b) United Nations Organization (UNO)
(c) World Trade Organization (WTO)
(d) World Bank (WB)
Ans: (c)

Q12. Regional rural banks:
1. have limited area of operation.
2. have free access to liberal refinance facilities from NABARD.
3. are required to lend only to weaker sections.
Which of the statements given above are correct?
(a) 1 and 3 only (b) 2 and 3 only
(c) 1 and 2 only (d) 1, 2 and 3
Ans: (c)

Q13. Gender Budgeting is a powerful tool for achieving gender mainstreaming so as to ensure that benefits of development reach women as much as men. What steps have been taken to institutionalize Gender Budgeting in India?
1. National Mission for Empowerment of Women has been launched.
2. The Ministry of Woman and Child Development has been declared as the nodal agency for Gender Budgeting.
3. Setting up of Gender Budgeting Cells (GBCs) in all Ministries has been mandated by Ministry of Finance.
Which the correct answer using the code given below:
(a) 1 and 2 (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (b)

Q14. Invisible trade is a trade
(a) Of corporate and financial institutions with government
(b) Of government with public institutions
(c) Of government with other countries
(d) Of the services like the banks, marine companies and shipping companies
Ans: (d)

Q15. Which one of the following is not a method of measurement of National Income?
(a) Value Added Method
(b) Income Method
(c) Expenditure Method
(d) Investment Method
Ans: (d)

Q16. Consider the following liquid assets:
1. Demand deposit with the banks
2. Time deposit with the banks
3. Savings deposit with the banks
4. Currency The correct sequences of these assets in the decreasing order of liquidity is:
(a) 1-4-3-2 (b) 4-3-2-1
(c) 2-3-1-4 (d) 4-1-3-2
Ans: (d)

Q17. International Monetary Fund (IMF) argues that developing economies hold a massive stockpile of foreign exchange.
Which could be the consequences of such stockpiling?
1. A trade imbalance or major difference in value of imports/exports is generated between the developing and emerging economies and the rich countries.
Such an imbalance is not a healthy sign.
2. These imbalances have caused the current global economic crisis.
3. Such stockpiling is responsible not only for problems in trade balances but leads to money laundering.
(a) 1 only (b) 2 only
(c) 3 only (d) 1, 2 and 3
Ans: (d)

Q18. Which of the following is a source of green climate finance?
(a) Global Environment Facility (GEF)
(b) Green Climate Fund (GCF)
(c) Clean Development Mechanism (CDM)
(d) All of the above
Ans: (d)

Q19. Which of the following statements is/are not correct with respect to the Rupee depreciation in India?
1. India being a net exporter country, rupee depreciation has a positive impact upon the Balance of Payments (BoP) of the country.
2. Internal issues such as weak domestic equity market, high input cost due to inflation results in rupee depreciation.
3. External issues such as European debt crisis and sustained demand for the dollar results in rupee depreciation.
Which the correct answer using the codes given below:
(a) Only 1 (b) Only 1 and 3
(c) Only 2 and 3 (d) 1, 2 and 3
Ans: (a)

Q20. Which of the following statements about the Dunkel draft is/are correct?
1. It is mandatory for the Government of India to accept all its proposals in all the sectors.
2. In the field of agriculture, the main proposal is to cut agricultural subsidies
3. In the field of textiles, it reiterates the operation of the multifibre agreement.
4. The proposals have already been accepted by the Parliament.
Select the correct answer from the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 1, 2 and 4 only
(d) 3 and 4 only
Ans: (c)

Q21. A dual economy means:
1. The existence of black money and white money
2. The existence of agriculture and industry
3. The existence of commercial agriculture with subsistence farming
4. Modern industry and commercial agriculture coexisting with subsistence farming and traditional handicrafts
(a) 1 only (b) 1, 2 and 4
(c) 2, 3 and 4 (d) All of these
Ans: (c)

Q22. What all are local authorities?
1. City corporations 2. Municipalities
3. Port trusts
Choose the incorrect option.
(a) 1 only (b) 2 only
(c) 3 only (d) None of the Above
Ans: (d)

Q23. Which statement is correct regarding balance of payment crises?
I. If international reserves of a country are not enough to balance a combined deficit in current and capital account on a sustained basis, then the phenomenon is called a BoP crisis.
II. It can be tackled by exporting more or by limiting imports through tariffs, quotas, etc. Contractionary fiscal and monetary policies can also tackle the crisis through lower import demand with fall in average income levels.
III. Another short term solution is currency devaluation which encourages exports and discourages costlier imports.
(a) Both I & II (b) Only I
(c) II & III (d) All the above
Ans: (d)

Q24. Consider the following statements:
1. Hot money has the tendency to escape in adverse circumstances.
2. Hard currency is the one which is not easily convertible.
3. Portfolio investment is made in financial securities.
4. Greenfield investment is made in an existing project/facility.
Which of the statements given above are correct?
(a) 1 and 3 only (b) 1, 2 and 4 only
(c) 2 and 3 only (d) 1, 2, 3 and 4
Ans: (a)

Q25. Which of the following is/are incorrectly matched?
Oil company Place
I. ARAMCO – Saudi Arabia.
II. GAZPROM – Russia.
III. ADNOC – Abu Dhabi
(a) I only (b) III only
(c) I and III only (d) None of these
Ans: (d)

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