Chapter Economy 2 - Exam Preparation

Part 1 Structure of Indian Economy
1. India is regarded as a country of ‘Demographic Dividend’. This is due to
(a) its high population in the age group below 15 years.
(b) its high population in the age group of 15-64 years.
(c) its high population in the age group above 65 years.
(d) its high total population.
Ans: (b)

2. Which one of the following is the most appropriate method to measure the economic growth of a country?
(a) National Income
(b) Net National Produce
(c) Gross Capital Formation
(d) Gross Domestic Product
Ans: (d)

3. Consider the following statements
1. Depreciation of the economy is correctly accounted in the Gross Domestic Product.
2. Green GDP accounted the environmental degradation due to economic progression of a country.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

4. Consider the following statements.
1. About one-third of GDP in India is contributed by the agricultural sector.
2. More than 60% of the country’s GDP is contributed by the service sector.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

5. Consider the following statements
1. More than one-third of world population lives in the low income economy countries
2. More than three-quarters of the Gross National Income of the world is accounted for the high income economy countries
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

6. A country’s natural capital includes all of the following except
(a) forest (b) water
(c) roads (d) minerals
Ans: (c)

7. What percentage of the total population of the world resides in India, as estimated in 2011?
(a) 15 (b) 17.5
(c) 20 (d) 22.5
Ans: (b)

8. Match List I (Period) with List II (Growth rate of India’s population) and select the correct answer using the codes given below the lists
List I List II
A. 1891 to 1921 1. High growth with definite sign of slowing down and stabilisation
B. 1921 to 1951 2. Stagnant population growth
C. 1951 to 1981 3. Steady population growth
D. 1981 to 2011 4. Rapid high population growth
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (b)

9. Which one of the following sectors is the major contribution towards the Gross Domestic Saving in India in recent time?
(a) Public sector
(b) Private sector
(c) Corporate sector
(d) Household sector
Ans: (d)

10. Which of the following is used for the measurement of distribution of income?
(a) Laffer Curve
(b) Engel’s Law
(c) Gini-Lorenz Curve
(d) Phillips Curve
Ans: (c)

11. Which one of the following economists firstly introduced Gross Domestic Product to measure the economic growth of a country?
(a) Simon Kuznet (b) Max O Lorenz
(c) John Maynard Keynes
(d) Ernst Engel
Ans: (a)

12. Consider the following statements
1. Keynesian theory advocates a mixed economy with a large role of government and public sector.
2. J M Keynes had strongly supported the Laissez-Faire policy of capitalism.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

13. Consider the following statements
1. Phillips Curve is an inverse relationship between the rate of unemployment and the rate of inflation in an economy.
2. Engel’s law observes that as income rises, the proportion of income spent on food falls even if the actual expenditure on food rises.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

14. During which decade did the population record a negative growth rate in India?
(a) 1921-1931 (b) 1911-1921
(c) 1941-1951 (d) 1931-1941
Ans: (b)

15. The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory of the country or outside in a year is termed as
(a) Gross National Income
(b) Net National Income
(c) Gross Domestic Product
(d) Net Domestic Product
Ans: (a)

16. Mixed economy means an economy where
(a) both agriculture and industry are equally promoted by the state.
(b) there is co-existence of private sector along with the public sector.
(c) there is importance of small scale industries along with heavy industries.
(d) economy is controlled by military as well as civilian rulers.
Ans: (b)

17. Which of the following factors is/are accounted in the calculation of Gross Domestic Product of a country in the expenditure method?
(a) Private consumption
(b) Gross investments and government spending
(c) Net expenditure of the expenditure on export and import
(d) All of the above
Ans: (d)

18. Consider the following statements
1. Dadabhai Naoroji was the first Indian to estimate the National Income of the country.
2. National Income Committee established in India after getting independence was headed by Professor VKRV Rao.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

19. National product at factor cost is equal to
(a) Domestic product Net factor income from abroad
(b) National product at market prices –Indirect taxes Subsidies
(c) Gross domestic product –Depreciation
(d) National product at market prices Indirect taxes Subsidies
Ans: (b)

20. Consider the following specific stages of demographic transition associated with economic development
1. Low birth rate with low death rate
2. High birth rate with high death rate
3. High birth rate with low death rate Select the correct order of the above stages using the codes given below
(a) 1, 2, 3 (b) 2, 1, 3
(c) 2, 3, 1 (d) 3, 2, 1
Ans: (c)

21. Consider the following statements.
1. Agricultural sector is continued to be the primary employment providing sector of India.
2. Service sector is the principal source of employment in urban areas in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

22. Which one of the following pairs of age is used as the minimum and maximum values of age to determine the life expectancy at the birth by UNDP?
(a) 15 and 75 years (b) 20 and 80 years
(c) 15 and 90 years (d) 25 and 85 years
Ans: (d)

23. Consider the following
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions The employees of which of the above can have the ‘Social Security coverage under Employees’ State Insurance Scheme?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

24. When two goods are completely interchangeable, they are
(a) Perfect substitutes
(b) Perfect complements
(c) Giffen goods
(d) Veblen goods
Ans: (a)

25. Which one of the following indicators is not used in the determination of Gender Development Index (GDI) in the Human Development Report (HDR)?
(a) Life expectancy of female
(b) Female adult literacy and gross enrollment
(c) Female political empowerment
(d) Female per capita income
Ans: (c)

26. Which of the following statements is/are false?
1. Wage Boards are tripartite in nature with representatives from workers to employers.
2. Except for the Wage Boards for Journalists and Non-Journalists, all the other wage boards are statutory in nature.
3. Second National Commission on Labour has recommended against the utility of wage boards. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) 1 and 2 (d) 1, 2 and 3
Ans: (c)

27. When development in an economy takes place, the share of tertiary sector in National Income
(a) first falls and then rises
(b) first rises and then falls
(c) keeps increasing
(d) remains constant
Ans: (c)

28. With reference to the Finance Commission of India, which of the following statements is correct?
(a) It encourages the inflow of foreign capital for infrastructure development.
(b) It facilitates the proper distribution of finance among the public sector undertakings.
(c) It ensures transparency in financial administration.
(d) None of the above
Ans: (d)

29. In 1980s, Indian economy was in the process of the Hindu rate of growth. Which one of the following is associated with the Hindu rate of growth?
(a) Population growth rate
(b) Growth rate of Naxalism
(c) Growth rate of foodgrain production
(d) Growth rate of Gross Domestic Product
Ans: (d)

30. Consider the following features
1. Pre-dominance of agriculture
2. Pre-dominance of industry
3. Low per capita income
4. Massive unemployment
Which of the features given above are the characteristics of Indian Economy?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 2 and 4 (d) 1, 3 and 4
Ans: (d)

31. The growth rate of the Per Capita Income at the current price is higher than the Per Capita Income at constant prices, because the latter takes into account the rate of
(a) increase in price level
(b) population growth
(c) growth in money supply
(d) increase in wage rate
Ans: (a)

32. Consider the following statements
1. The employment generated by the public sector after the economic reform in 1990s is more than 5%.
2. The unorganised sector of the Indian economy generates more than 80% of the total employment.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

33. Consider the following statements
1. Average growth rate of the agriculture and allied services in Indian economy after independence is more than 4%.
2. After the economic liberalisation in 1991, the decline in share of agriculture in GDP has been balanced by an increase in share of the service sector.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

34. A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rate
2. Less equitable distribution of national income Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

35. Consider the following
1. Equitable allocation of resources
2. Generation of employment
3. Tax concession to big corporates
4. Universalisation of Public Distribution System
Which of the public services given above is/are major factor/factors which can bring ‘inclusive growth’ in our country?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 2 and 4 (d) 1, 3 and 4
Ans: (c)

36. Which one among the following pairs is not correctly matched?
(a) When total product increases at an increasing rate : Marginal product increases
(b) When total product increases at a diminishing rate : Marginal product declines
(c) When total product reaches its maximum : Marginal product becomes zero
(d) When total product begins to decline : Marginal product becomes positive
Ans: (d)

37. A market in which there are large numbers at sellers of a particular product, but each seller sells some. What differentiated but close products is termed as.
(a) perfect Competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Ans: (a)

38. Urbanisation in India is very poor as compared to other developed countries. Which one of the following can be the exact cause of the high population increase in urban areas?
(a) Natural increase of urban population
(b) Net migration from rural areas
(c) Lack of coverage of rural masses under social benefit programmes
(d) Both ‘a’ and ‘b’ are the exact causes for population increase in urban areas
Ans: (b)

39. Which one of the following institutions prepares the National Income estimates in India?
(a) Planning Commission
(b) Reserve Bank of India
(c) Central Statistical Organisation
(d) Indian Statistics Institute
Ans: (c)

40. Consider the following statements
1. More than 50% of the Net Domestic Product is contributed by the unorganised sector of Indian economy.
2. Less than one-fourth of Net Domestic Product is contributed by the organised sector of Indian economy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

41. Consider the following statements
1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
2. The Gross Domestic Product at market prices (In rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

42. Which one of the following states has the highest percentage of poverty according to the Suresh Tendulkar Commission in India?
(a) Bihar (b) West Bengal
(c) Odisha (d) Assam
Ans: (c)

43. Which one of the following is the objective of social forestry which is started by Indian Government?
(a) To increase green coverage
(b) To create more employment opportunities
(c) To reduce urbanisation in rural areas
(d) To produce raw material for rayon and match factories
Ans: (c)

44. Which of the following deals with microeconomies analysis?
(a) General price level
(b) General supply
(c) Market demand
(d) Consumer demand
Ans: (d)

45. Consider the following statements The most effective contribution made by Dadabhai Naoroji to the cause of Indian National Movement was that he
1. exposed the economic exploitation of India by the British.
2. interpreted the ancient Indian texts and restored the self-confidence of Indians.
3. stressed the need for eradication of all the social evils before anything else.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 (b) 1 and 3
(c) 1 and 3 (d) Only 1
Ans: (d)

46. Consider the following statements
1. In India, the life expectancy at birth of male is more than that of female.
2. In India, the infant mortality rate per thousand of live birth of girl is more than that of boy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

47. Which of the following is not true about an open economy?
1. Free from trade barriers
2. No imports are brought in and no exports are sent out
3. Exports and imports form a large percentage of the GDP
4. Self sufficient Choose the correct answer from the codes given below
(a) 2 and 4 (b) 1 and 2
(c) 3 and 4 (d) All of these
Ans: (a)

48. Which one of the following is not a goal included in the Millennium Development Goal of United Nations?
(a) To halve the people of the world living with hunger
(b) To halve the proportion of the world’s people living below $ 2.5
(c) To halve the proportion of the world’s people without access to safe drinking water
(d) To achieve gender equality in access to education
Ans: (b)

49. Which one of the following is not a part of service sector in India?
(a) Transport
(b) Construction
(c) Hotels and restaurants
(d) Insurance
Ans: (b)

50. Consider the following statements
1. Kerala is the best performer in terms of HDI in India.
2. Kerala has performed better than Norway in terms of overall HDI.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

51. Which one of the following statements with regard to India’s economy between 1814 to 1850 is not correct?
(a) Between 1814 and 1850, four commodities dominated India’s exports- raw silk, opium, cotton and indigo.
(b) Between 1814 and 1860. five commodities dominated India’s exports—raw silk, opium, cotton, indigo and jute.
(c) Indigo and raw silk required processing techniques.
(d) Indigo and raw silk were financed by foreign capital.
Ans: (a)

52. Choose the correct indices of Physical Quality of Life Index.
(a) Percentage of unnourished, Percentage of under weight children, Mortality Rate of children
(b) Life expectancy, Educational attainment index and standard of living index
(c) Gender development index, Gender inequality index, Inequality-adjusted human development index.
(d) Life expectancy, Basic literacy rate, Infant Mortality Rate
Ans: (d)

53. Who presented the first Union Budget of Independent India?
(a) Morarji Desai
(b) John Mathai
(c) RK Shanmukham Chetty
(d) NK Chanda
Ans: (c)

54. What is meant by disposable personal income
(a) A person’s income
(b) Income remaining out of personal income after the payment of tax
(c) Income that remains after meeting necessities
(d) Income spend for food only
Ans: (b)

55. Consider the following statements
1. In last ten years, foodgrain production in India has increased ten times of production in first Five Year Plan.
2. Since 2000, India has started producing 200 million tonnes of rice only.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

56. How can we arrive at NNP from GNP in National Income accounting
(a) GNP – Depreciation
(b) GNP –Net Indirect Taxes
(c) GNP –Depreciation
(d) GNP – Net Indirect Taxes
Ans: (c)

57. Since Independence, both plan and non-plan expenditures have increased, the increase in non-plan expenditure is little more than the former. Which one of the following expenditure causes the increase in non-plan-expenditure and select the correct answer using the codes
1. Interest payment
2. Subsidy 3. Irrigation
Codes
(a) 1, 2 and 3 (b) 1 and 2
(c) 1 and 3 (d) Only 2
Ans: (b)

58. Arrange the following Indian states in an order from having high Per Capita Income to low Per Capita Income.
1. Sikkim 2. Goa
3. Chandigarh 4. Delhi Choose the right answer from the codes given below
(a) 3, 4, 1, 2 (b) 1, 2, 3, 4
(c) 2, 4, 3, 1 (d) 2, 4, 1, 3
Ans: (d)

59. National Income accounting entails a calculation of the net contribution at every stage of manufacturing. This method of National Income accounting is known as
(a) Product method (b) Income method
(c) Consumption method
(d) Expenditure method
Ans: (a)

60. Which one of the following correctly explains the underdeveloped nature of the economy of India?
1. Inequitable distribution of income
2. High unemployment in the economy
3. Slow rate of increase in national income
4. Slow rate of growth of road infrastructure Select the correct answer using the codes given below
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (b)

61. What is the percentage of the constituent of the population of the working age group (15-64 years) in the Indian economy?
(a) Less than 25% (b) Less than 50%
(c) More than 50 % (d) More than 75%
Ans: (c)

62. Consider the following statements
1. The employment generated by the agriculture and allied sector in Indian economy in pre-reform period was more than the tertiary sector.
2. In post reformperiod, the employment generated by the primary sector is less than 25%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

63. Which of the following method is not used in determining National Income at a country?
(a) Income method (b) Output method
(c) Input method
(d) Investment method
Ans: (d)

64. Which of the following statements are correct?
1. When marginal revenue is positive, total revenue increases with increase in output
2. When marginal revenue is zero, total revenue is maximum
3. When marginal revenue becomes negative, total revenue falls with increase in output. Select the correct answer using the codes given below
(a) 1 and 2 (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (d)

Part 2 Poverty, Unemployment and Rural Development
65. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?
1. Deprivation of education, health, assets and services at household level
2. Purchasing Power Parity at national level
3. Extent of budget deficit and GDP growth rate at national level Select the correct answer using the codes given below
(a) 1, 2 and 3 (b) 2 and 3
(c) Only 2 (d) Only 1
Ans: (d)

66. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor?
1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas.
2. By strengthening Self-Help Groups and providing skill development.
3. By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipments free of cost to farmers. Select the correct answer using the codes given below
(a) 1, 2 and 3 (b) 1 and 2
(c) 2 and 3 (d) Only 2
Ans: (d)

67. Which one of the following schemes/ programmes are mainly aimed to bring Inclusive growth in India?
(a) Swabhiman
(b) MGNREGA
(c) Right to Information
(d) Both ‘a’ and ‘b’
Ans: (d)

68. Which one among the following is the type of poverty which compares the total wealth of the poorest one-third of the population with the total wealth of richest 1% of the population?
(a) Absolute poverty
(b) Severe poverty
(c) Relative poverty (d) Mass poverty
Ans: (c)

69. Estimates of poverty in India are given by the
(a) NSSO
(b) CSO
(c) Ministry of Rural Development and Programme Implementation
(d) Planning Commission
Ans: (d)

70. Consider the following statements.
1. An expert group under the chairmanship of Professor Suresh D Tendulkar to estimate the poverty in India was constituted by the Central Statistical Organisation (CSO).
2. More than 50% of the rural masses are living below the poverty line according to the Tendulkar Committee.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

71. Which one of the following agencies of the Indian Government implements the Prime Minister’s Employment Generation Programme?
(a) Department of Rural Development
(b) Khadi and Village Industries Commission
(c) Municipality Corporation
(d) Panchayat
Ans: (b)

72. Consider the following statements
1. Gini coefficient is commonly used to measure the inequality of wealth.
2. The Gini coefficient with a value of 1 expresses total equality and a value of 0 expresses maximum inequality.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

73. Consider the following statements about Rashtriya Swasthya Bima Yojana (RSBY) 1 Under RSBY, the premium is shared on 85 :15 basis by the Centre and State Governments.
2. In case of the North-Eastern states and Jammu and Kashmir, under RSBY the premium is shared in a 90 :10 ratio.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

74. Among the following who are eligible to benefit from MGNREGA?
(a) Adult members of only SC and ST households
(b) Adult members of BPL households
(c) Adult members of households of all backward communities
(d) Adult members of any households
Ans: (d)

75. Which among the following about the Rangarajan Panel Report on poverty estimation (submitted in July, 2014) is/are correct?
1. The report states that three out of ten people in India are poor.
2. The report endorsed the Tendulkar Committee suggestion on determining poverty line in India. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

76. What was the main purpose of the District Education Revitalisation Programme (DERP) launched in 1994 in India?
(a) To universalise primary education
(b) To facilitate teacher education
(c) To prevent the drop-out
(d) To facilitate teacher and parents interaction
Ans: (a)

77. Consider the following statements
1. Mahila Samakhya Scheme is implemented in nine states.
2. Mahila Samakhya Scheme recognises the centrality of education in empowering women to achieve equality.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

78. Consider the following statements
1. India’s Gini index is more favourable than that of China which has higher HDI ranking.
2. India has higher relative inequality in urban areas than the rural areas.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

79. Which one of the following is the main aim of the Dr Ambedkar National Scholarship Scheme for meritorious students?
(a) To assist meritorious students belonging to Other Backward Classes for enabling them to pursue higher studies
(b) To assist meritorious students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue higher studies
(c) To assist meritorious students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue lower primary education
(d) To assist meritorious girl students belonging to Scheduled Caste and Scheduled Tribe for enabling them to pursue primary education
Ans: (b)

80. Pradhan Mantri Jan-Dhan Yojana has been launched for
(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalised communities
Ans: (c)

81. Consider the following statements about Rajiv Gandhi Scheme for Empowerment of Adolescent Girls SABLA
1. It covers the adolescent girls in the age group of 11-18.
2. Under the scheme, adolescent girls will be provided Take Home Ration (THR).
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 1
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

82. Consider the following
1. Swarnajayanti Gram Swarozgar Yojana
2. Pradhan Mantri Gram Sadak Yojana
3. Sampoorna Grameen Rozgar Yojana
4. Indira Awas Yojana Select the correct chronological order of the above yojanas?
(a) 2-3-4-1 (b) 4-1-2 -3
(c) 1-2- 3-4 (d) 4-3-1-2
Ans: (b)

83. Two of the schemes launched by the Government of India for women’s development are Swadhar and Swayam Siddha. As regards the difference between them, consider the following statements
1. Swayam Siddha is meant for those in difficult circumstances such as women survivors of natural disasters or terrorism, women prisoners released from jails, mentally challenged women etc, whereas, Swadhar is meant for holistic empowerment of women through Self Help Groups.
2. Swayam Siddha is implemented through Local Self Government bodies or reputed voluntary organisation whereas, Swadhar is implemented through the ICDS units set up in the states.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

84. Which one of the following is the main objective of the Ujjawala Scheme launched for women and children in India?
(a) To prevent the trafficking, rescue, rehabilitation, reintegration, and repatriation of women and children
(b) To assist women and children below 6-years to attain self-sufficiency in the health-care and nutrition
(c) To prevent women from becoming victims to maternal mortality and infant mortality in the society
(d) None of the above
Ans: (a)

85. Consider the following deprivedchildren
1. Child labour
2. Street children
3. Migrating children
4. Working children
Which of the children given above are covered in the Alternative Education Interventions of the SSA?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

86. Consider the following statements
1. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) aims at enhancing livelihood security of households in both rural and urban areas of the country.
2. The primary objective of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is to augment wage employment.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

87. Which one of the following agencies of the Indian Government implements the Swarnjayanti Gram Swarozgar Yojana?
(a) District Rural Development Agency
(b) Khadi and Village Corporation
(c) Municipal Corporation
(d) None of the above
Ans: (a)

88. Which of the following is/are the main aim/aims of the Saakshar Bharat Programme started in India?
(a) To enhance the focus on female literacy
(b) To enhance the focus on female sanitation
(c) To enhance the focus on national polio-programme
(d) Both ‘b’ and ‘c’ are correct
Ans: (a)

89. With reference to India, consider the following statements about the Mid-Day Meal Scheme
1. Provision of assistance for cooking cost of all the states and Union Territories are same throughout the country.
2. Provision of assistance of financial assistance to all the states is 90% of the project cost.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

90. Which one of the following statements is not correct?
(a) Under the targeted public distribution system, the families below poverty line are provided 50 kg of foodgrains per month per family at subsidised price.
(b) Under Annapurna Scheme, indigent senior citizens of 65 years of age or above are eligible for National Old Age Pension but not getting Pension can get 10 kg of foodgrains per person per month free of cost.
(c) Ministry of Social Justice and Empowerment has scheme in which indigent people living in welfare institution like orphanages are given 15 kg of foodgrains per person per month at BPL rates.
(d) Ministry of Human Resource Development gives financial support to Mid-day Meal Scheme for the benefit of class I to V students in government or government aided schools.
Ans: (a)

91. What is the ‘Roshni’ project?
(a) Project for protection of health of girls
(b) Project for providing solar lamps in rural areas
(c) Project for rural electrification
(d) Project for the residents of President’s estate to live in harmony with nature
Ans: (d)

92. With reference to Aam Admi Bima Yojana, consider the following statements
1. The members insured under the scheme must be the head of the family or earning member of the family in a rural landless household.
2. The member insured must be in the age group of 30 to 65 years.
3. There is a provision for free scholarship for upto two children of the insured who are studying between 9 and 12.
Which of the statements given above is/are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (b)

93. Which of the following is not correct with regards to Sampoorna Grameen Rozgar Yojana?
1. The case component of the programme is borne exclusively by the Central Government.
2. Foodgrains are provided free of cost to the State/Union Territories.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

94. Which one of the following schemes is the recast form of the National Literacy Mission of India?
(a) National Livelihood Mission
(b) Nirmal Gram Puruskar
(c) Bharat Kosh
(d) Saakshar Bharat
Ans: (d)

95. The census of 2011 was the 15th National census and it has covered
(a) 35 states and union territories and 6 lakh villages
(b) 34 states and union territories and 6 lakh villages
(c) 35 states and union territories and 3 lakh villages
(d) 36 states and union territories and 8 lakh villages
Ans: (a)

96. Which of the following statements is/are correct about the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls SABLA launched by the Indian Government?
(a) The scheme will be implemented using the platform of Anganwadi Centres (AWCs) of the Integrated Child Development Services (ICDSs) Scheme.
(b) The cost sharing of the scheme would be on a 50 : 50 basis between the Centre and States.
(c) The scheme is implemented by the Ministry of Rural Development.
(d) Both the statements given in ‘a’ and ‘b’ are correct.
Ans: (a)

97. With reference to the Government Welfare Schemes, consider the following statements
1. Under the Antyodaya Anna Yojana, the foodgrains are available to the poorest of the poor family at ` 2 per kg for wheat and ` 3 per kg for rice.
2. Under the National Old Age Pension Scheme, the old and destitute are provided ` 75 per month as Central pension, in addition to the amount provided by most State Governments.
3. Government of India has allocated 25 kg of foodgrains per Below Poverty Line (BPL) family per month, at less than half of the economic cost.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

98. Consider the following statements about the Sarva Shiksha Abhiyan
1. To achieve the universalisation of elementary education in a time bound manner.
2. To make free and compulsory education for children of ages 6-16.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

99. Consider the following components
1. Education Guarantee Scheme (EGS)
2. Alternative and Innovative Education (AIE)
Which of the components given above is/are included in the Sarva Shiksha Abhiyan Scheme?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

100. Consider the following statements about the Sarva Shiksha Abhiyan
1. The scheme was launched in 2004.
2. The scheme aims to bridge all gender and social category gaps at primary and secondary stages.
3. The scheme has an objective of the universal retention.
4. The scheme focusses on the quality teacher education.
Which of the statements given above is/are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3
(d) 3 and 4
Ans: (c)

101. Consider the following schemes launched by the Union Government
1. Antyodaya Anna Yojana
2. Gram Sadak Yojana
3. Sarvapriya
4. Jawahar Gram Samridhi Yojana
Which of the above were announced in the year 2000?
(a) 1 and 2 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

102. Antyodaya Anna Yojana was launched on
(a) 25th December, 2000
(b) 15th August, 2001
(c) 2nd October, 2000
(d) 2nd October, 2001
Ans: (a)

103. Which of the following is true about Conditional Cash Transfers (CCTs)?
1. Government transfers cash to the beneficiaries.
2. Not only providing cash but also inducing positive behaviour in the people through the conditions.
3. Government transfers cash to the beneficiaries through mediators.
4. One and only function of CCT is to provide cash to the needy households. Choose the correct answer using the codes given below
(a) 2 and 3 (b) 1 and 4
(c) 3 and 4 (d) 1 and 2
Ans: (d)

104. Which one of the following is the main objective of the Education Guarantee Scheme (EGS)?
(a) To address to the inaccessible habitations where there is no formal school within the radius of one km.
(b) To establish a school within the radius of one km where at least 15-25 children of 6-14 years age group who are not going to school are available.
(c) To establish a school within the radius of one km in remote habitations in hilly areas even for 10 children.
(d) All of the above
Ans: (d)

105. In India, increase in population and diversion of agricultural land for non-agricultural purposes have resulted in the decrease of
(a) forested land
(b) cultivable wasteland
(c) net sown area
(d) double cropped area
Ans: (c)

106. Which one of the following programmes is the externally aided and mainly aimed to revitalise the primary education to bring universalisation of primary education in India?
(a) District Primary Education Programme
(b) Operation Blackboard
(c) Alternative Innovative Learning System
(d) National Programme of Primary Education
Ans: (a)

107. Which one of the following years is relevant with the launching of Aam Admi Bima Yojana by the Indian Government?
(a) 2nd October, 2005
(b) 2nd October, 2007
(c) 2nd October, 2009
(d) 2nd October, 2011
Ans: (b)

108. Consider the following statements
1. National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched in 1995.
2. Mid-day Meal Scheme aims to provide cooked mid day meal to all children studying in classes (I)-Upper Primary Level in Government and aided schools and EGS/AIE centres.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

109. Consider the following statements about the Rashtriya Madhyamik Shiksha Abhiyan (RMSA)
1. It aims to enhance access to secondary education in India.
2. It has quality intervention schemes to ensure that all secondary schools conform to prescribed norms, removing gender, socio-economic and disability barriers.
3. It has the target to achieve the universal retention by 2020.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

110. The Swarnajayanti Shahari Rozgar Yojana which came into operation from 1st January, 1997 aims to provide gainful employment to the urban unemployed or underemployed poor but does not include
(a) Nehru Rozgar Yojana
(b) Urban Basic Services Programme
(c) Prime Minister’s Integrated Urban Poverty Eradication Programme
(d) Prime Minister’s Rozgar Yojana
Ans: (b)

111. Consider the following norms of the Mid-day Meal Scheme
1. To provide minimum 450 calories of food
2. To provide minimum 12 gram of protein
3. To provide an adequate quantity of micronutrients like iron, folic acid, vitamin-A
4. To provide an adequate quantity of essential fatty acids and medicine for the common cold and diarrhoea
Which of the norms given above is/are correct about the Mid-day Meal Scheme?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 2 and 4 (d) 1, 3 and 4
Ans: (b)

112. Which one of the following areas of the country is mainly emphasised in the Bharat Nirman Project launched by the Indian Government?
(a) Building infrastructure and basic amenities in the urban slum areas
(b) Building infrastructure and basic amenities in the rural areas
(c) Building infrastructure and basic amenities in the semi-urban areas
(d) Both ‘a’ and ‘c’ are correct
Ans: (b)

113. Which one of the following is related to National Programme for Education of Girls at Elementary Level (NPEGEL) programme started for the certain section of our society?
(a) Nutritional programme for disadvantaged children at the primary level
(b) Educational programme for girls who are under-privileged and disadvantaged at the elementary level
(c) Nutritional and educational programme for disadvantaged children at the higher education level
(d) None of the above
Ans: (b)

114. Which committee proposed that the consumption expenditure calculation should be based on calorie consumption as earlier?
(a) Tendulkar Committee
(b) Lakdawala Committee
(c) SR Hashim Committee
(d) Rangarajan Committee
Ans: (b)

115. Which one of the following schemes is not the sub-scheme of the National Rural Livelihoods Mission?
(a) SITRA
(b) Ganga Kalyan Yojana
(c) STEP-UP (d) TRYSEM
Ans: (c)

116. With reference to National Rural Health Mission, which of the following are the jobs of ‘ASHA’, a trained community health worker?
1. Accompanying women to the health facility for antenatal care check-up
2. Using pregnancy test kits for early detection of pregnancy
3. Providing information on nutrition and immunisation
4. Conducting the delivery of baby
Codes
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (b)

117. Consider the following statements
1. Gini coefficient is the area between the line of perfect equality and line of project inequality.
2. Lorenz curve is a percentage of the area between the line of perfect equality and the line of perfect inequality and line of perfect inequality.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

118. For which one of the following sectors, the National Social Security Fund was set up by the Indian Government?
(a) Agricultural Sector
(b) Organised Sector
(c) Unorganised Sector
(d) Private Sector
Ans: (c)

119. Which one of the following is not a monitorable target of the Beti Bachao Beti padhao Abhiyan?
(a) Provide girls’ toilet in every school in 100 Child Sex Ration (CSR) districts by the year 2017
(b) 100% girls enrolment in secondary education by the year 2020
(c) Promote a protective environment for girl children through implementation of Protection of Children from Sexual Offences (POCSO) Act 2012
(d) Train Elected Representatives/ Grassroot to mobilise communities to improve CSR and promote girls education
Ans: (b)

120. Which one of the following is/are the main aim/aims of the Swarnajayanti Gram Swarozgar Yojana launched in India for the poverty eradication?
(a) To establish a large number of micro enterprises in the rural areas of the country
(b) To bring every assisted family above the poverty line by providing them income generating assets through a mix of bank credit and government subsidy
(c) To bring assisted family literate and make them politically empowered so that they can take part in the decision making process of the country
(d) Both ‘a’ and ‘b’
Ans: (d)

121. Consider the following statements about the National Rural Livelihoods Mission (NRLM)
1. At least one member from each identified rural poor household, preferably a woman, to be brought under the SHG network
2. Subsidy to be available in the form of revolving fund and capital subsidy as an incentive for inculcating the habit of thrift and accumulation of their own funds
3. To work towards universal financial inclusion beyond basic banking services to all poor households
4. To pursue skill upgradation and placement projects through partnership mode
Which of the salient features given above are correct about the National Rural Livelihoods Mission?
(a) 2 and 4 (b) 1, 2 and 3
(c) 2, 3 and 4 (d) All of these
Ans: (d)

122. Consider the four poor states of India
1. Arunachal Pradesh 2. Chhattisgarh
3. Bihar 4. Jharkhand List these states from most to least poor using the codes given below
(a) 1, 2, 3, 4 (b) 2, 1, 4, 3
(c) 4, 3, 2, 1 (d) 3, 2, 4, 1
Ans: (d)

123. Consider the following statements about the Indira Awaas Yojana
1. Indira Awaas Yojana is one of the six components of the Bharat Nirman Programme.
2. Some of the Left Wing Extremism (LWE) affected districts are eligible for a higher rate of unit assistance under Indira Awaas Yojana.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

124. In which of the following years, Swarnajayanti Gram Swarozgar Yojana for the rural poverty replaced the Integrated Rural Development Programme and its allied schemes in India?
(a) 1st April, 1997 (b) 1st April, 1999
(c) 1st April, 2001 (d) 1st April, 2005
Ans: (b)

125. Disguised unemployment generally means that
(a) large number of people remain unemployed.
(b) alternative employment is not available.
(c) marginal productivity of labour is zero.
(d) productivity of workers is low.
Ans: (c)

126. Which one of the following ratios is the share of funding ratio between the Centre and States other than North-Eastern states in the implementation of Rashtriya Madhyamik Shiksha Abhiyan in the Eleventh Five Year Plan?
(a) 50 : 50 (b) 75 : 25
(c) 85 : 15 (d) 90 : 10
Ans: (b)

127. When was the Swarnajayanti Shahari Rozgar Yojana to provide gainful employment started in India?
(a) 1995 (b) 1997 (c) 2001 (d) 2004
Ans: (b)

128. Which one of the following ages is the eligible age for the Prime Minister’s Rozgar Yojana in the North Eastern Regions?
(a) 18 to 35 years (b) 18 to 40 years
(c) 18 to 45 years (d) 18 to 30 years
Ans: (b)

129. Main objective of Antyodaya programme is to
(a) uplift the urban slum dwellers
(b) uplift the farmer
(c) uplift the landless labour
(d) uplift the poor
Ans: (d)

130. Consider the following statements
1. Shiksha Karmi Project aims at universalisation and qualitative improvement of primary education especially for girls.
2. Shiksha Karmi Project is implemented in remote, arid and socio-economically backward villages of Rajasthan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

131. Which of the following is/are the main purpose(s) of the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) launched by the Indian Government?
(a) To correct regional imbalances in the availability of affordable and reliable tertiary
(b) To achieve the insurance coverage of the rural landless BPL households
(c) To reach the target of 75% coverage of National Agricultural Insurance scheme in rural areas
(d) Both ‘a’ and ‘c’ are correct
Ans: (a)

132. Consider the following statements
1. Kasturba Gandhi Balika Vidyalaya are the residential schools set up in difficult areas with boarding facilities at elementary level for girls.
2. Kasturba Gandhi Balika Vidyalaya is applicable only in the identified Educationally Backward Blocks where the rural female literacy is below and gender gap in literacy is more than the national average
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

133. Consider the following statements
1. Hariyali is a watershed development project sponsored by the Central Government. 2.Hariyali also aims at enabling the urban population to conserve rain water.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

134. Which of the following is/are the main purpose(s) of establishing the Rashtriya Mahila Kosh (RMK) in India?
(a) Empowerment of women through the mass adult education and related activities
(b) Empowerment of women through the provision of healthcare facilities to pregnant and lactating mother
(c) Empowerment of women through the provision of credit for livelihood-related activities
(d) Both ‘a’ and ‘b’
Ans: (c)

135. Which one of the following is the main role of the CAPART launched by the Indian Government?
(a) Supporting and funding agency for the voluntary organisations
(b) Supporting and funding agency for the private educational institutes
(c) Supporting and funding agency for the NGOs engaged in rural sanitation
(d) None of the above
Ans: (a)

136. Consider the following statements
1. Swarnajayanti Shahari Rozgar Yojana is in operation in all urban and rural areas of India.
2. Beneficiaries under Swarnajayanti Shahari Rozgar Yojana are identified by the urban local bodies on the basis of house-to-house survey.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

137. Match the following
List I List II
A. Lakdawala Committee 1. June 2012
B. SR Hashim Committee 2. December 2009
C. Rangarajan Committee 3. May 2010
D. Tendulkar Committee 4. September 1989
Codes A B C D A B C D
(a) 4 3 1 2 (b) 2 4 1 3
(c) 4 2 1 3 (d) 1 3 2 4
Ans: (a)

138. Consider the following
1. Urban Self Employment Programme (USEP)
2. Development ofWomen and Children in Urban Areas (DWCUA)
Which of the schemes given above is/are the important components of the Swarnajayanti Shahari Rozgar Yojana ?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

139. The strategic aim of IRDP is
(a) to reduce unemployment.
(b) to provide more opportunities for rural employment and credit facilities at concessional rate of interest.
(c) to provide the required input for increasing agricultural productivity.
(d) None of the above
Ans: (b)

140. Consider the following statements
1. Prime Minister’s Rozgar Yojana (PMRY) was launched in 1983.
2. The objective of Prime Minister’s Rozgar Yojana (PMRY) is to provide self-employment opportunities to educated unemployed youth in the age group of 18 to 35 years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

141. Which of the following missions given below is/are the main sub-mission(s) of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM)?
(a) Integrated Housing & Slum Development (IHSDP)
(b) Development of Women and Children in Urban Areas (DWCUA)
(c) Basic Services to the Urban Poor (BSUP)
(d) Both ‘a’ and ‘c’
Ans: (d)

142. Which of the following can be the property(ies) of the Lorenz Curve?
1. Lorenz Curve cannot rise above the line of perfect equality.
2. It cannot sink below the line of perfect inequality.
3. It is increasing and convex. Select the correct answer using the codes given below
(a) 1, 2 and 3 (b) 1 and 2
(c) Only 2 (d) Only 1
Ans: (a)

143. Consider the following
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions The employees of which of the above can have the ‘Social Security’ coverage under Employees State Insurance Scheme?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (a)

144. The endeavour of Janani Suraksha Yojana Programme is
1. to promote institutional deliveries.
2. to provide monetary assistance to the mother to meet the cost of delivery.
3. to provide for wage loss due to pregnancy and confinement.
Which of the statements given above is /are correct?
(a) 1, 2, and 3 (b) 1 and 2
(c) 2 and 3 (d) Only 2
Ans: (b)

145. Pradhan Mantri Gramodaya Yojana aims at
(a) strengthening the Panchayati Raj System in rural area.
(b) alleviating poverty through micro-enterprises.
(c) meeting rural needs like drinking water, housing, rural roads, healthcare and primary education.
(d) generating employment in rural areas.
Ans: (c)

146. The food for work programme was subsumed in
(a) IRDP (b) MGNREGS
(c) RLEGP (d) JRY
Ans: (b)

147. In Rashtriya Madhyamik Shiksha Abhiyaan (RMSA) Scheme, government has targeted to ensure universal access to secondary level education by the year
(a) 2012 (b) 2017
(c) 2015 (d) 2020
Ans: (b)

148. Which of the following is not an objective of the Rashtriya Uchchatar Shiksha Abhiyan (RUSA)?
(a) Improve the overall quality of private educational institutions
(b) Ensure reforms in the affiliation, academic and examination systems.
(c) Correct regional imbalances in access to higher education
(d) Create an enabling atmosphere in the higher education institutions to devote themselves to research and innovations
Ans: (a)

149. Labour Force Participation Rate indicates
(a) Number of employed persons Total population 1000
(b) Number of employed persons Number of unemployed persons Total population 1000
(c) Number of unemployed persons Number of employed persons Number of unemployed persons 1000
(d) Number of employed persons Number of unemployed persons 1000
Ans: (b)

150. Consider the following statements.
1. Self Help Groups are considered eligible for financing under the Prime Minister’s Rozgar Yojana.
2. Under Prime Minister’s Rozgar Yojana, there is a provision for the 10-year relaxation for SC/ST, ex-servicemen/physically handicapped and women in the upper age limit.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

151. The main objective of TRYSEM was
(a) to train urban youth for self employment.
(b) to train rural youth for self employment.
(c) Both ‘a’ and ‘b’
(d) None of the above
Ans: (b)

152. How do District Rural Development Agencies (DRDAs) help in the reduction of rural poverty in India?
1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.
2. DRDAs undertake area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for effective implementation of anti-poverty programmes.
4. DRDAs watch over and ensure effective utilisation of the funds intended for anti-poverty programmes.
Which of the statements given above is/are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (a)

153. Who are provided social security under the ‘Aam Admi Bima Yojana’ ?
(a) All landless labours living below poverty line in rural areas
(b) All labours in urban areas
(c) Both ‘a’ and ‘b’
(d) Neither ‘a’ nor ‘b’
Ans: (b)

154. Which of the following can be said to be essentially the parts of Inclusive Governance?
1. Permitting the Non-Banking Financial Companies to do banking
2. Establishing effective District Planning Committees in all the districts
3. Increasing the government spending on public health
4. Strengthening the Mid-day Meal Scheme Select the correct answer using the codes given below.
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (a)

155. In which one of the following Five Year Plans, the Janani Shishu Suraksha Karyakram (JSSK) for the pregnant and children is launched?
(a) Eighth Five Year Plan
(b) Ninth Five Year Plan
(c) Tenth Five Year Plan
(d) Eleventh Five Year Plan
Ans: (d)

156. Consider the following
1. Creation of self-employment opportunities
2. Assist in training and creation of technology infrastructures
3. Providing credit and knowledge on marketing
4. Organisation of poor into Self Help Groups
Which of the goals given above are correct about the Swarnajayanti Gram Swarozgar Yojana?
(a) 1, 3 and 4 (b) 2 and 3
(c) 2, 3 and 4 (d) All of these
Ans: (d)

157. Consider the following statements regarding the Swarnajayanti Gram Swarozgar Yojana
1. Swarnajayanti Gram Swarozgar Yojana is a restructured poverty alleviation programme implemented by Ministry of Finance.
2. Swarnajayanti Gram Swarozgar Yojana has replaced IRDP and its allied schemes.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

158. Consider the following statements about the Aam Admi Bima Yojana
1. It is an insurance scheme to be provided against natural as well as accidental disability.
2. It is an insurance scheme to be provided to all the members of family of rural landless households in the country.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

159. Consider the following statements about Rashtriya Swasthya Bima Yojana (RSBY)
1. RSBY is a smart card-based cashless health insurance cover of `30000 per BPL family per annum.
2. RSBY provides insurance coverage to BPL families in the unorganised sector.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

160. Consider the following statements
1. National Population Policy 2000 has an aim of empowering women for improved health and nutrition.
2. National Population Policy only considers the child health and not the family welfare or welfare of the citizens.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

161. Which of the following is/are not the objective of National Rural Employment Guarantee Scheme?
1. To provide gainful employment and food security
2. To provide at least 100 days of unskilled manual work to one person from each rural family at the minimum wage fixed by the State Government
3. To provide 100 days work for unskilled physical workers especially in rural areas during slack agriculture season
4. To create wage employment for the unemployed rural youth. Select the correct answer using the codes given below
(a) 2 and 3 (b) Only 2
(c) 1, 3 and 4 (d) 1 and 4
Ans: (c)

162. Which of the following programmes is/are replaced by Swarnajayanti Gram Swarozgar Yojana?
1. Sampoorna Grameen Rozgar Yojana
2. MillionWells Scheme
3. Development for women and children in rural areas
4. Integrated rural development programme Select the correct answer using the codes given below
(a) Only 4 (b) 2 and 4
(c) Only 1 (d) 2, 3 and 4
Ans: (d)

163. When the productive capacity of the economic system of a state is inadequate to create sufficient number of jobs, it is called
(a) Seasonal Unemployment
(b) Structural Unemployment
(c) Disguised Unemployment
(d) Cyclic Unemployment
Ans: (b)

164. Consider the following statements about Rajiv Awas Yojana (RAY)
1. RAY is to provide support for shelter and redevelopment and creation of affordable housing stock.
2. Under RAY, the property rights are assigned to slum dwellers.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

165. What does cyclical unemployment mean?
(a) Unemployment during recessionary phase of trade cycle
(b) Disguised unemployment
(c) Seasonal unemployment
(d) Voluntary unemployment
Ans: (a)

166. Consider the following statements
1. Council for Advancement of People’s Action and Rural Technology (CAPART) is an autonomous organisation under the Ministry of Agriculture.
2. Primary objective of the CAPART is to promote voluntary action to propagate appropriate rural technologies for the benefit of rural masses.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

167. Which one of the following unemployment is the form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment?
(a) Structural unemployment
(b) Marxian unemployment
(c) Disguised unemployment
(d) Classical unemployment
Ans: (a)

168. With reference to Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG), consider the following statements
1. Improvement in their nutritional status
2. Improvement in their health status
3. Improvement and upgrading various skills like home skills, life skills and vocational skills
Which of the objectives given above is/are the correct objective(s) of the RGSEAG?
(a) Only 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

169. The twenty-point economic programme was announced for the first time in India in
(a) 1976 (b) 1975
(c) 1972 (d) 1971
Ans: (b)

170. Consider the following statements
1. Integrated Child Development Services (ICDS) was launched as a holistic development programme for the children below 6 years of age.
2. Integrated Child Development Services (ICDS) include the programme for the proper nutritional and health education of pregnant and lactating mother.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

171. Unemployment which occurs when workers move from one job to another is known as
(a) Seasonal unemployment
(b) Frictional unemployment
(c) Cyclic unemployment
(d) Technological unemployment
Ans: (b)

172. Consider the following sectors
1. Animal husbandry 2. Dairy
3. Handlooms
4. Wasteland development
5. Social forestry
6. Sericulture
Which of the sectors given above are included in the skill development under Support to Training and Employment Programme (STEP) for Women Scheme?
(a) 1, 2, 4, 5 and 6
(b) 1, 3, 5 and 6
(c) 1, 4 , 5 and 6
(d) All of the above
Ans: (d)

173. Which one of the following curves is a graphical representation of the relationship between unemployment and the job vacancy rate?
(a) Phillips curve (b) Laffer curve
(c) Beveridge curve (d) Friedman curve
Ans: (c)

174. Consider the following statements
1. Janani Suraksha Yojana (JSY) is focus on the promotion of institutional deliveries.
2. Janani Suraksha Yojana (JSY) is integrated with cash assistance for the post-delivery care.
Which of the statements given above is/are correct about the JSY?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

175. Which of the following schemes are designed and launched to improve the living standard of urban poor?
1. Accredited Social Health Activist (ASHA)
2. Janani Suraksha Yojana (JSY)
3. Valmiki Ambedkar Malin Basti Awas Yojana (VAMBAY)
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

176. Structural unemployment arises due to
(a) deflationary condition
(b) heavy industry bias
(c) shortage of raw materials
(d) inadequate productive capacity
Ans: (b)

177. Which of the following pairs is not correctly matched?
Scheme Commencement Year
(a) TRYSEM : August, 1979
(b) NREP : October, 1980
(c) JRY : April, 1995
(d) SGSY : April, 1999
Ans: (c)

178. Which one of the following is related with the Atkinson’s Index of an economy?
(a) A method to determine the income inequality
(b) An effect of supply-demand mismatch
(c) A method to determine the unemployment
(d) None of the above
Ans: (a)

179. Select the one which is not the responsibility of Gram Sabha under the ‘Rural Employment Guarantee Act, 2005’
(a) To recommend projects to the Gram Panchayat and prepare list of possible works
(b) To receive application for work and issue a rated receive
(c) To monitor the execution of works within the Gram Panchayat
(d) To conduct regular social audits of all projects taken up within the Gram Panchayat
Ans: (b)

180. Which one of the following schemes is mainly concerned with the destitute widows deserted by their families in religious places like Vrindavan and Kashi?
(a) Rashtriya Mahila Kosh
(b) Swayamshidha
(c) Swadhar (d) None of these
Ans: (c)

181. Consider the following statements
1. Food for Work Programme was launched in India during the Tenth Five Year Plan.
2. The Planning Commission in India is a constitutional body.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

182. Consider the following schemes
1. Kishori Shakti Yojana (KSY)
2. Nutrition Programme for Adolescent Girls (NPAG)
3. National Programme for Education of Girls at Elementary Level (NPEGEL)
Which of the schemes given above is/are merged to form the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 1
Ans: (a)

183. Consider the following schemes
1. EAS 2. TRYSEM
3. JRS 4. RLEGP The correct chronological sequence of the launching at these scheme is
(a) 2- 4 -1 – 3 (b) 4 – 2 – 3 – 1
(c) 4 – 3 – 1 – 2 (d) 2 – 4 – 3 – 1
Ans: (d)

184. National Rural Health Mission (NRHM) was launched in the year
(a) 2003 (b) 2004 (c) 2005 (d) 2006
Ans: (c)

185. Disguised unemployment refers to
(a) employment of more persons in a job which can accomplish lesser number of person
(b) persons with no job
(c) unemployment among housewives
(d) unemployment among people above 60 years of age
Ans: (a)

186. Which one of the following models of economy is associated with the Karl Marx Theory of Unemployment?
(a) Socialist economy
(b) Capitalist economy
(c) Mixed economy
(d) Only ‘a’ and ‘c’
Ans: (b)

187. Mid-Day Meal Scheme is financed and managed by
(a) Food and Civil Supply Department of State Governments
(b) Department of Consumer Affairs and Welfare
(c) Ministry of Programme Implementation
(d) Ministry of Human Resource Development
Ans: (d)

188. Consider the following statements
1. Disguised unemployment exists frequently in developing countries.
2. Disguised unemployment is characterised by informal labour and agricultural labour markets.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

189. According to the planning commission of India,Which of the following are correct for the poverty line?
1. ` 42 per capita per day in urban area
2. ` 26 per capita per day in rural area
3. ` 36 per capita per day in urban area
4. ` 32 per capita per day in rural area Choose the correct option from the following
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (c)

190. Which one of the following unemployment is occurred due to the rise in wages for an employee above what a company is willing to pay?
(a) Frictional unemployment
(b) Disguised unemployment
(c) Seasonal unemployment
(d) Classical unemployment
Ans: (d)

191. Consider the following statements
1. Janani Suraksha Yojana is a safe motherhood intervention under the National Rural Health Mission.
2. The objective of Janani Suraksha Yojana is to reduce maternal and neo-natal mortality.
3. Janani Suraksha Yojana is a 75% centrally sponsored scheme.
Which of the statements given above are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) All of the above
Ans: (a)

192. Which one of the following stated that the unemployment is inherent within the unstable capitalist system and periodic crises of mass unemployment are to be expected?
(a) Karl Marx
(b) Margaret Thatcher
(c) Milton Friedman
(d) John Maynard Keynes
Ans: (a)

193. Which one of the following is/are the main objective(s) of the Rajiv Gandhi Udyami Mitra Yojana (RGUMY)?
(a) Promote and support to achieve the skill development of the youth who are educated
(b) Promote and support establishment of new micro and small enterprises for the potential first generation entrepreneurs
(c) Enhance the knowledge acquisition by the micro, small and medium enterprises to enable them to face the market competition
(d) Only ‘a’ and ‘c’ are correct
Ans: (d)

194. Human Poverty Index was introduced in the HDR of the year
(a) 1994 (b) 1990
(c) 1995 (d) 2001
Ans: (a)

195. Which one of the following is the nature of the Beveridge curve when there is a decrease in frictional unemployment that reduces the number of firms searching for employees and the number of unemployed searching for jobs?
(a) The curve will become parabolic shape.
(b) The curve will become hyperbolic shape.
(c) The curve will be shifted towards origin.
(d) The curve will remain unchanged.
Ans: (c)

196. Disguised unemployment in India is mainly related to
1. Agricultural sector
2. Rural sector
3. Factory sector
4. Urban area Select the correct answer using the codes given below
(a) 1 and 2
(b) 1 and 4
(c) 2 and 4
(d) 1, 2 and 4
Ans: (c)

197. Consider the following statements
1. Prime Minister’s Employment Generation Programme aims to set up micro-enterprises in rural and urban areas.
2. Prime Minister’s Employment Generation Programme was launched in the Tenth Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

198. Consider the following schemes
1. Prime Minister’s Rozgar Yojana
2. Rural Employment Generation Programme
3. Employment Assurance Scheme
Which of the schemes given above is/are subsumed under the Prime Minister’s Employment Generation Programme (PMEGP)?
(a) 1 and 2 (b) 1 and 3
(c) Only 2
(d) All of the above
Ans: (a)

199. With reference to Khadi Karigar Janashree Bima Yojana (JBY), consider the followings
1. Khadi and Village Industries Commission
2. Coir Board
3. Life Insurance Corporation of India
Which of the agencies given above is/are involved in the implementation of the Khadi Karigar Janashree Bima Yojana (JBY)?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (b)

200. Nirmal Gram Puraskar is related with
(a) sanitation
(b) environment
(c) unemployment
(d) food production
Ans: (a)

201. Consider the following statements
1. Swavalamban is an incentive scheme for the National Pension Scheme.
2. Swavalamban scheme was launched by the Finance Minister in Budget 2010.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

202. Apna Khet, Apna Kaam, a new scheme under MGNREGA has been initiated in which state?
(a) Punjab (b) Rajasthan
(c) Uttar Pradesh
(d) Madhya Pradesh
Ans: (b)

203. Consider the following statements
1. Indira Gandhi National Old Age Pension Scheme is launched in November, 2007.
2. Indira Gandhi National Old Age Pension Scheme is restricted to destitute only.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

204. The project ‘Sankalp’ is associated with the elimination of
(a) Polio (b) AIDS, HIV
(c) Both ‘a’ and ‘b’ (d) None of these
Ans: (a)

205. Consider the following
1. C-Section 2. Provision of blood
3. Diagnostics
4. Diet during stay in the health institutions
5. Transport from home to health institutions and vice-versa.
Which of the entitlements given above are freely given in the Janani Shishu Suraksha Karyakram (JSSK)?
(a) 1, 2, 3 and 4 (b) 2, 3, 4 and 5
(c) 2, 4 and 5 (d) All of these
Ans: (d)

206. Ladli Laxmi Yojana has been launched for supporting girls of all religion and caste upto their marriage by
(a) UP Government
(b) MP Government
(c) Haryana Government
(d) None of the above
Ans: (b)

207. Which one of the following age ranges is eligible to obtain the Indira Gandhi National Widow Pension Scheme?
(a) 65 years and above
(b) From 18 to 64 years
(c) From 21 to 65 years
(d) Below 65 years
Ans: (b)

208. Generally unemployment in a developing country takes place because of
(a) lack of complementary factors of production
(b) seasonal factors
(c) lack of effective demand
(d) switch over from one job to another
Ans: (a)

209. With reference to the Power Sector in India, consider the following statements
1. Rural electrification has been treated as a basic minimum service under the Prime Minister’s Gramodaya Yojana.
2. 100% foreign direct investment in power is allowed without upper limit.
3. The Union Minister of Power has signed a Memorandum of Understanding (MoU) with 14 states.
Which of the statements given above is/are correct?
(a) Only 1 (b) 1 and 2
(c) 2 and 3 (d) Only 3
Ans: (b)

210. Which one of the following types of unemployment is common in Indian agriculture?
(a) Seasonal (b) Disguised
(c) Frictional (d) Structural
Ans: (a)

211. Consider the following schemes
1. Indira Gandhi National Old Age Pension Scheme (IGNOAPS)
2. National Family Benefit Scheme (NFBS)
3. Annapurna
Which of the schemes given above is/are included in the National Social Assistance (NSA) Programme of the Indian Government?
(a) Only 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

212. Which of the programmes has not been included in the Swarnajayanti Gram Swarozgar Yojana?
(a) IRDP (b) DWCRA
(c) TRYSEM (d) JNNURM
Ans: (d)

213. Community Development Programme was initiated primarily to
(a) bring development among people by raising the literacy level.
(b) bring about overall development of the village through self-help.
(c) increase the control of the masses over the locally available resources.
(d) increase agricultural production through mechanised farming.
Ans: (b)

214. Which one of the following states has implemented the Pradhan Mantri Adarsh Gram Yojana for the first time in India?
(a) Uttar Pradesh (b) Rajasthan
(c) Bihar (d) Odisha
Ans: (b)

215. Which one of the following amounts is given to the beneficiary of the Indira Gandhi National Disability Pension Scheme for BPL?
(a) ` 100 (b) ` 1000
(c) ` 10000 (d) None of these
Ans: (d)

216. With reference to Okun’s law, consider the following statements
1. A one point increase in the unemployment rate is associated with two percentage points of negative growth in real GDP.
2. High employment in an economy leads to losses in a country’s production.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

217. Which one of the following is/are correct about the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)?
(a) Mahatma Gandhi National Rural Employment Guarantee Act was notified in 200 districts in the first phase in 2005.
(b) MGNREGS mandates 33% participation for women.
(c) Mahatma Gandhi National Rural Employment Guarantee Act has been notified throughout the country with effect from 1st April, 2008.
(d) Both ‘b’ and ‘c’.
Ans: (d)

218. Which of the following pairs is/are correctly matched?
1. Swabhiman : Financial Inclusion
2. Swavalamban : Financial Assistance
3. Swadhar : To provide holistic and integrated service to women Select the correct answer using the codes given below
(a) 1 and 2 (b) 2 and 3
(c) Only 1 (d) All of these
Ans: (d)

219. Which of the following pairs is/are correctly matched?
1. Tendulkar Committee : To review the methodology for estimation of poverty.
2. Saxena Committee : To review the methodology for conducting BPL census in rural area.
3. Hashim Committee : On methodology for identification of BPL families in urban areas.
(a) Only 1 (b) 1, 2 and 3
(c) 2 and 3 (d) Only 3
Ans: (b)

220. Which is not the objective of Public Procurement and Distribution System followed by Indian Government?
(a) Maintain price stability through creation of buffer stocks
(b) Protect the interests of both consumers and poor farmers
(c) Control the production of food grains
(d) Reduce personal and regional inequality in the distribution
Ans: (c)

221. As per the recent report published in newspapers/magazines, India ranks at a l-power level in Hunger Index. The Hunger Index is measured on which of the following indicators?
1. Number of people who are caloriesdeficient
2. Child malnutrition
3. Rate of child mortality
Which of the statements given above is/are correct?
(a) 1 and 2
(b) 1 and 3
(c) Only 2
(d) All of the above
Ans: (d)

222. Which one of the following ministries of Indian Government is implementing the Pradhan Mantri Adarsh Gram Yojana?
(a) Ministry of Social Justice and Empowerment
(b) Ministry of Welfare and Child development
(c) Ministry of Finance
(d) Ministry of Rural Development
Ans: (d)

223. Consider the following statements
1. Technological unemployment is due to the replacement of workers by machines.
2. Technological unemployment might be counted as structural unemployment.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

224. Which of the following statements is correct regarding Indira Awas Yojana?
(a) Soil and water conservation works
(b) Construction of rural roads
(c) Providing houses at free of cost to the members of ST/SC and free bonded labourers
(d) Land development and wasteland development
Ans: (c)

225. National Rural Employment Guarantee Scheme was launched initially in
(a) 100 districts (b) 200 districts
(c) 330 districts (d) 345 districts
Ans: (b)

226. What is the name of the scheme which provides training and skills to women in traditional and non-traditional trades?
(a) Kishori Shakti Yojana
(b) Rashtriya Mahila Kosh
(c) Swayamsiddha (d) Swavalamban
Ans: (a)

227. What will be the nature of the Beveridge curve when there is prevalent of the long term unemployment due to deterioration of human capital or a negative perception of the unemployed by the potential employers in an economy?
(a) The curve will be shifted towards the origin.
(b) The curve will become negative.
(c) The curve will be shifted away from the origin.
(d) None of the above
Ans: (c)

228. With reference to the Indian economy, consider the following statements
1. Pradhan Mantri Adarsh Gram Yojana is a rural development programme launched in the financial year 2011-2012.
2. Pradhan Mantri Adarsh Gram Yojana has an objective for the development of villages having over 50% of people belonging to the scheduled castes through convergence of central and state schemes.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

229. Indian Development Report does not give for each sample village
(a) Infrastructure and Amenities Index
(b) Education Related Index
(c) Health Related Index
(d) Unemployment Related Index
Ans: (d)

230. Consider the following statements
1. Annapurna Scheme was introduced in 2004-05.
2. Annapurna Scheme is available to those who are not covered in the National Old Age Pension Scheme.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

231. Consider the following statements
1. National Rural Health Mission aims to improve the healthcare delivery across urban India.
2. National Rural Health Mission is run by the Ministry of Rural development in India.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

232. In terms of Human Development Index, India falls under which of the following categories?
(a) High (b) Medium
(c) Low (d) Very low
Ans: (d)

233. Mid-Day Meal Scheme was started in the year
(a) 1995 (b) 1996
(c) 1997 (d) 1998
Ans: (b)

234. The Government has renamed MNREGA scheme and the name associated with the scheme is that of
(a) Rajeev Gandhi
(b) Indira Gandhi
(c) Mahatama Gandhi
(d) Jawaharlal Nehru
Ans: (c)

235. Which one of the following laws/curves stated that the lower the unemployment in an economy, the higher the rate of inflation?
(a) Gini’s Curve (b) Verdoorn’s law
(c) Gibrat’s law (d) Phillips curve
Ans: (d)

236. Which one of the following is associated with the NAIRU (Non-Accelerating Inflation Rate of Unemployment) which refers to a level of unemployment below which inflation rises?
(a) JM Keynes (b) Milton Friedman
(c) Karl Marx (d) Euler Engel
Ans: (b)

237. The standard of living in a country is represented by its
(a) Poverty Ratio
(b) Per Capita Income
(c) National Income
(d) Unemployment Rate
Ans: (b)

238. Which of the following factors of an economy is/are related with Stagflation?
1. Low unemployment rate
2. High unemployment rate
3. High inflation rate
4. Low inflation rate Select the correct answers using the codes given below?
(a) 1 and 3 (b) 1 and 4
(c) 2 and 3 (d) 2 and 4
Ans: (c)

239. Consider the following statements about the Pradhan Mantri Adarsh Gram Yojana
1. It aims to integrate development of the selected villages to create the physical and social infrastructure for an all round socio-economic development.
2. It is aimed to eliminate the disparity between SCs and other communities of the country.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

240. Which plan gave emphasis for removal of poverty for the first time?
(a) Fourth (b) Fifth
(c) Sixth (d) Seventh
Ans: (b)

241. Which of the following two programmes are the parts of the National Social Assistance Programme of the Government of India?
1. Indira Awas Yojana and Pradhan Mantri Gram Sadak Yojana
2. National Food for Work and Mid-Day Meal Scheme
3. National Old Age Pension Scheme and National Family Benefit Scheme Select the correct answer using the codes given below
(a) 1 and 2 (b) 1 and 3
(c) Only 3 (d) Only 2
Ans: (c)

242. Which of the following programmes is being implemented by the National Bank for Agriculture and Rural Development (NABARD)?
(a) Prime Minister’s Rozgar Yojana (PMRY)
(b) Swarnajayanti Gram Swarozgar Yojana (SGSY)
(c) District Rural Industrial Project (DRIP)
(d) Rural Employment Generation Programme (REGP)
Ans: (d)

243. Which of the following ministries has launched Integrated Wasteland Development Programme (IWDP)?
(a) Ministry of Rural Development
(b) Ministry of Agriculture
(c) Ministry of Chemical and Fertilisers
(d) Ministry of Health and FamilyWelfare
Ans: (a)

244. Scheme of Mid-Day Meal is not connected with
(a) Educational advancement
(b) Social equality
(c) Right to food
(d) Child nutrition
Ans: (c)

245. Which one of the following unemployments is also known as search unemployment which occurs at the time period between jobs when a worker is searching for or transitioning from one job to another?
(a) Seasonal unemployment
(b) Frictional unemployment
(c) Classical unemployment
(d) None of the above
Ans: (c)

246. Consider the following statements
1. Integrated Child Protection Scheme, a centrally sponsored scheme implemented through states, was launched in 2005-06.
2. Integrated Child Protection Scheme has an objective of providing a safe and secure environment for comprehensive development of children in the country who are in need of care and protection as well as children in conflict with the law.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

247. When was the concept of the Human Development Index (HDI) introduced by the United Nations Development Programme?
(a) 1990 (b) 1991 (c) 1993 (d)1995
Ans: (c)

248. Consider the following factors regarding the Structural Unemployment of an economy
1. Mechanisation of agriculture
2. Geographical factors or locations
3. Adoption of robotic technologies to replace unskilled labourers
Which of the factors given above are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

249. Consider the following statements
1. National Credit Fund for Fund is managed by Ministry of Women and Child Development.
2. Central Adoption Resource Agency was set up in 1990.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

250. Consider the following statements
1. Central Social Welfare Board was set-up in 1953.
2. Central Social Welfare Board has the objective of promoting social welfare activities and implementing welfare programmes for women, children and handicapped through voluntary organisations.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

251. Consider the following statements
1. Under the Differential Rate of Interest Scheme, the public sector banks are required to lend at least one per cent of the total advances as at the end of the preceding year to the weakest of the weak sections of the society.
2. Under the Differential Rate of Interest (DRI) Scheme, the interest rate of advances made to the weakest of the weak sections of the society 4% per annum.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

252. Consider the following statements
1. Swarnajayanti Shahari Rozgar Yojana seeks to provide gainful employment to the urban unemployed or under-employed through encouraging the setting up of self-employed ventures or provision of wage employment.
2. Percentage of women beneficiaries under Swarnajayanti Shahari Rozgar Yojana is less than 30%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

253. Assertion (A) Educated unemployment increases with high rate of economic growth.
Reason (R) It happens only when there is lack of professional education.
Codes
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
Ans: (a)

254. When did the Differential Rate of Interest (DRI) Scheme for the weaker section of society start in India?
(a) 1972 (b) 1975
(c) 1982 (d) 1985
Ans: (a)

255. Aadhar has huge potential for improving operations and delivery of services. Its potential application in various significant public services delivery and social sector programme is immense. In this context consider the following statements
1. The UID database can be used for the authentication of beneficiaries under the public distribution system.
2. It will help in enhancing the efficiency of social audit of programmes.
3. Enable greater commitment towards government financing of public health and primary healthcare.
Which of the statements given above are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

256. Consider the following statements
1. International Development Association (IDA) is a member of the World Bank Group.
2. IDA complements the International Bank for Reconstruction and Development by lending to development by leading to developing countries which suffer from the lowest gross national income, from troubled credit-worthiness, or from the lowest per capita income
3. International Development Association and International Banks for Reconstruction and Development are collectively known as the World Bank.
Which of the statements given above are correct?
(a) 1 and 2 (b) 1 and 3
(d) 2 and 3 (d) All of these
Ans: (d)

257. Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes?
(a) Disinflation (b) Reflation
(c) Inertial Inflation
(d) Inflation hedge
Ans: (b)

258. Which one of the following agreements under WTO aegis has given the Special Safeguard Mechanism (SSM) and Special Products (SPs) treatments to the developing countries?
(a) TRIPS (b) TRIMS
(c) AoA (d) NAMA
Ans: (c)

259. Special Drawing Rights (SDRs) facilities is available at
(a) International Monetary Fund (IMF)
(b) World Bank (WB)
(c) International Development Association (IDA)
(d) Organisation of Economics Cooperation and Development (OEG)
Ans: (a)

260. The Poverty Gap Index or the Foster-Greer-Thorbecke Index is the difference between the
(a) mean income of poor and poverty line.
(b) median income of poor and mean income of poor.
(c) median income of poor and poverty line.
(d) mode of the income of poor and mean income of poor
Ans: (a)

261. Inclusion strategy does not focus on
(a) Reduction at inequality
(b) reduction of poverty
(c) diversifying livelihood Tribal population
(d) getting poorer countries closer.
Ans: (d)

Part 3 Planning & Development
262. In the context of India’s Five Year Plans, a shift in pattern of Industrialisation with lower emphasis of the heavy industry and move on infrastructure begins in
(a) Fourth Plan
(b) Sixth Plan
(c) Eighth Plan
(d) Tenth Plan
Ans: (b)

263. Which one of the following is the objective of the Twelfth Five Year Plan of India?
(a) Faster and inclusive growth
(b) Faster, quick and reliable inclusive growth
(c) Faster, reliable and more inclusive growth
(d) Faster, sustainable and more inclusive growth
Ans: (d)

264. Consider the following statements about the LPG model of economic development process in India
1. Disinvestment of profit making public sector enterprises.
2. Permitting private sectors to establish industrial units without taking a licence.
3. Chronically sick industries were referred to BIFR for the formulation of revival or rehabilitation plan.
Which of the processes given above is/are taken after adoption of LPG model?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

265. Which of the following are associated with planning in India?
1. the finance Commission
2. the National Development Council
3. the Union Ministry at rural development
4. the Union Ministry at urban development
5. the Parliament Select the correct answer using the codes given below
(a) 1, 2 and 5 (b) 1, 3 and 4
(c) 2 and 5
(d) 1, 2, 3, 4 and 5
Ans: (c)

266. Consider the following statements
1. The average GDP growth rate of the 11th Five Year Plan is above 8.5%.
2. The GDP growth at the very first year of the 11th Plan was above 9%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

267. Consider the following statements about Indian Economy
1. During 11th Five Year Plan, the food-grain production is steadily increased.
2. During 11th Five Year Plan, the average inflation on the Wholesale Price Index is above 10%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

268. In the post independence period, economic reform were first introduced in India under
(a) Janata Party Government (1977)
(b) Indira Gandhi Government (1980)
(c) Rajiv Gandhi Government (1985)
(d) PV Narsimha Rao Government (1990)
Ans: (d)

269. Under which plan did the government introduce an agricultural strategy which gave rise to green revolution in India?
(a) Second Five Year Plan
(b) Third Five Year Plan
(c) Fourth Five Year Plan
(d) Sixth Five Year Plan
Ans: (b)

270. Which Five Year Plan had an objective of Rapid industrialisation with particular emphasis on development of basic and heavy industries?
(a) First (b) Second
(c) Third (d) Fourth
Ans: (b)

271. In India, the concept of ‘minimum needs’ and directed anti-poverty programmes were the innovation of
(a) Fourth Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Seventh Five Year Plan
Ans: (b)

272. Consider the following statements
1. MNREGA was launched in the 11th Five Year Plan.
2. Indira Awas Yojana was launched in the 9th Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

273. Consider the following statements
1. In the 11th Five Year Plan, the growth rate of the agricultural sector was above 4%.
2. In the 11th Five Year Plan, the agricultural sector contributed more than 25% in the overall GDP of the India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

274. The Rolling plan concept in Nation Planning was introduced by
(a) Indira Gandhi Government
(b) The National Front Government
(c) The Janata Party Government
(d) Rajiv Gandhi Government
Ans: (c)

275. Consider the following statements
1. The Ninth Five Year Plan was launched in the fiftieth year of India’s Independence.
2. For the first time in the Indian Economy, the GDP growth rate of the Ninth Five Year Plan was set at 7%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

276. In recent plans, certain words / phrases were used in the title of the plan along with ‘growth’. They are
1. Inclusive 2. Faster
3. More inclusive 4. Sustainable
5. More sustainable Which combination is true at the 12th Five Year Plan (2012-17)
(a) 1, 2 and 3 (b) 1, 4 and 5
(c) 2, 3 and 4 (d) 1, 2 and 4
Ans: (b)

277. Consider the following components of the Provision of Urban Amenities to Rural Areas (PURA) model of economic development
1. Facilitate road connectivity in villages.
2. Enhancement of electricity in rural areas
3. Establishment of cyber cafe in villages
4. Construction of hospital in rural areas.
Which of the components given above are the major connectivity formulated by the PURA model?
(a) 1 and 4 (b) 1, 2 and 4
(c) 1, 2 and 3 (d) All of these
Ans: (d)

278. Inclusive growth as enunciated in the Eleventh Five Year Plan does not include which one of the following?
(a) Reduction of poverty
(b) Extension of employment opportunities
(c) Reduction of gender inequality
(d) Strengthening of capital market
Ans: (d)

279. Consider the following statements about Fifth Five Year Plan
1. The Fifth Plan was formulated against the backdrop of severe inflationary pressures.
2. The Fifth Plan targeted an annual growth rate of 7% in the National Income.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

280. Which one of the following is correct about the Twelfth Five Year Plan recently approved by the Indian Government?
(a) Twelfth Five Year Plan of Indian Economy is from 2011 to 2016.
(b) Twelfth Five Year Plan aims to grow GDP at the rate of 10%.
(c) Twelfth Five Year Plan aims to sustain the inclusive growth which is started in 11th plan.
(d) Both ‘b’ and ‘c’ are correct about the 12th Five Year Plan.
Ans: (c)

281. The major emphasis on the First Five Year Plan of India was
(a) agriculture
(b) employment
(c) industry
(d) export promotion
Ans: (a)

282. Which one of the following can aid in furthering the Government’s objective of inclusive growth?
1. Promoting self-help group
2. Promoting micro, small and medium enterprises
3. Implementing the rights to education Select the correct answer using the codes given below
(a) 1, 2 and 3 (b) 1 and 3
(c) 1 and 2 (d) Only 2
Ans: (a)

283. The slogan ‘Garibi Hatao’ (removal of poverty) was given in which Five Year Plan?
(a) Second Plan
(b) Fourth Plan
(c) Fifth Plan
(d) Sixth Plan
Ans: (c)

284. Which of the following statements is/are correct?
1. The 14th Finance Commission was constituted under the Chairmanship of Shri Vijay Kelkar.
2. The 14th Finance Commission has been specifically asked also to recommend how non-priority PSUs be relinquished. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

285. During which Five Year Plan was the emergency clamped, new election took place and Janata Party was elected?
(a) Third plan (b) Fourth plan
(c) Fifth plan (d) Sixth plan
Ans: (c)

286. Consider the following statements
1. In the Eleventh Five Year Plan, the growth rate of the export was always positive.
2. In the middle of the Eleventh Five Year Plan, the import growth was negative due to external factors.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

287. Who presides over the National Development Council of India?
(a) Deputy Chairman of the Planning Commission of India
(b) Prime Minister of India
(c) Finance Minister of India
(d) Vice President of India
Ans: (b)

288. Match List I with List II and select the correct answer using the codes given below the lists
List I (Five Year Plan) List II (Objective)
A. First plan 1. Growth with social justice
B. Third Plan 2. Sustainable inclusive growth
C. Fifth plan 3. Self reliant and self generating economy
D. Twelfth Plan 4. Agriculture, irrigation and power projects
Codes A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 3 1 2 (d) 1 3 2 1
Ans: (c)

289. Annual rate of inflation during 9th and 10th plan in India was
(a) 4% and 5% respectively
(b) 5% and 7% respectively
(c) 4% and 7% respectively
(d) 7% and 5% respectively
Ans: (a)

290. Which one of the following has the final authority in India to approve Five Year Plan?
(a) Union Council of Ministers
(b) Planning Commission
(c) National Development Council
(d) Prime Minister
Ans: (c)

291. Consider the following statements about Indian Planning
1. Second Five Year Plan emphasis on the establishment of heavy industries.
2. The Third Five Year Plan introduced the concept of import substitution as a strategy for industrialisation.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

292. Choose the correct match
1. Gandhian Plan—Jai Prakash Narayan
2. People’s Plan—Shriman Narayan Agarwal
3. Sarvodaya Plan—MN Roy Select the correct answer using the codes given below
(a) Only 1 (b) 2 and 3
(c) Only 3 (d) None of these
Ans: (d)

293. Which one of the following is the theme of the approach paper of the Eleventh Five Year Plan?
(a) Indicative planning
(b) Growth with social justice
(c) Towards faster and more inclusive growth
(d) Planning for the prosperity
Ans: (c)

294. Which of the following is true about Twelfth Five Year Plan?
1. Mean years of schooling to increase to 7 years
2. Reduce IMR to 15 and to improve child sex ratio 1000 by the end of the plan
3. Head count ratio of consumption poverty to be reduced by 10% points over the preceding estimates
4. Increase the gross irrigated area from 90 million hectare to 103 million hectare Select the correct answer using the codes given below
(a) Only 2 (b) 3 and 4
(c) 1, 3 and 4 (d) All of these
Ans: (c)

295. The Bombay Plan drafted by GD Birla and JRD Tata emphasised on
(a) that the economy should be left to the dynamic investments by the private sector in heavy industries.
(b) the public sector investments in infrastructure and heavy industries.
(c) annual planning.
(d) that the private sector should foot the bill of intensive and low return investments in the heavy industries.
Ans: (b)

296. Consider the following statements
1. Jawahar Rozgar Yojana was launched in the Seventh Five Year Plan.
2. Small-scale and food processing industries were given new impetus in Seventh Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

297. Consider the following statements about the National Development Council (NDC) of India
1. It discusses the progress of national plan.
2. Suggest the ways to achieve goals of the national plan.
3. It gives guidelines to formulate the National Plan.
4. It suggests plan allocations for the different sectors and states.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 3 and 4 (d) 2, 3 and 4
Ans: (b)

298. Consider the following statements
1. The National Development Council (NDC) was constituted in 1948.
2. The National Development Council (NDC) is an extra-constitutional body.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

299. Which of the following are true about NITI Aayog?
1. The governing council replaces the earlier National Development Council.
2. There will be a regional council comprising of Chief Ministers and Lieutenant Governors of union territories.
3. Aayog will have 7-8 full time members.
4. Aayog is headed by the Speaker. Select the correct answer using the codes given below
(a) 2, 3 and 4 (b) 1, 2 and 4
(c) 1, 2 and 3 (d) All of these
Ans: (c)

300. Which one among the following statements regarding the Eighth Five Year Plan in India is not correct?
(a) The plan was postponed by two years because of the political upheavals at the centre.
(b) It aimed at the high growth of both agriculture and manufacturing sectors.
(c) Its emphasis was on growth in export and import, improvement in the trade and current account deficit.
(d) It set before itself two principal objectives of ‘growth with stability’ and ‘growth with justice’.
Ans: (b)

301. Match List I with List II and select the correct answer using the codes given below the lists
List I (Plan Model) List II (Proposer)
A. Bombay Plan 1. Jai Prakash Narayan
B. Gandhian Plan 2. MN Roy
C. People’s Plan 3. Sriman Narayan
D. Sarvodaya Plan 4. Birla and Tata groups
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 2 3 1 (d) 4 3 2 1
Ans: (d)

302. Planning in India drew on
(a) the new economic programme of Lenin
(b) the Fabian Socialism of Sidney and Beatrice Web
(c) the British Welfare mechanism
(d) new democratic development packages
Ans: (a)

303. Which five year plan had a unique feature to lay down specific targets for each state in consultation with the State Government?
(a) 10th Five Year Plan
(b) 8th Five Year Plan
(c) 12th Five Year Plan
(d) 11th Five Year Plan
Ans: (a)

304. The national income of a country for a given period is equal to the
(a) total value of goods and services produced by nationals
(b) sum of total consumption and investment expenditure
(c) sum of personal income of all individuals.
(d) Money value of final goods and services produced
Ans: (a)

305. Model towns were created in India in the 1950s with the object of
(a) providing urban planning skills to local governments
(b) creating housing at affordable rates
(c) paving the way for all inclusive growth
(d) providing housing for those displaced during partition and be an example of good town planning
Ans: (d)

306. Which one of the following Five Year Plan had the objectives to achieve selfsufficiency in foodgrains and increase agricultural production to meet the requirements of industry and exports?
(a) First Plan (b) Second Plan
(c) Third Plan (d) None of these
Ans: (c)

307. Which one among the following statements about the globalisation is not correct?
(a) Advocates of the globalisation argue that it will result in greater economic growth.
(b) Critics of the globalisation argue that it will result in greater economic disparity.
(c) Advocates of the globalisation argue that it will result in culture homogenisation.
(d) Critics of the globalisation argue that it will result in culture homogenisation.
Ans: (c)

308. Consider the following statements
1. The Fourth Five Year Plan period is from 1966-71.
2. The Fourth Five Year Plan sought to raise the standard of living through programmes designed to promote equality and social justice.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

309. The main objective of the Twelfth Five Year Plan is
(a) inclusive growth and poverty reduction.
(b) inclusive and sustainable growth.
(c) sustainable and inclusive growth to reduce unemployment.
(d) faster and sustainable and more inclusive growth.
Ans: (d)

310. Which one among the following plans adopted the policy for the universalisation of elementary education in India?
(a) Sixth Plan (b) Eighth Plan
(c) Ninth Plan (d) Eleventh Plan
Ans: (d)

311. With reference to union budget, which of the following is/are covered under non-plan expenditure?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies Select the correct answer using the codes given below
(a) Only 1 (b) 2 and 3
(c) 1, 2, 3 and 4 (d) None of these
Ans: (c)

312. Which one of the following economists proposed the LPG model of economic development in India?
(a) Dr C Rangarajan
(b) Dr Montek Singh Ahluwalia
(c) Dr Amartya Sen
(d) Dr Manmohan Singh
Ans: (d)

313. In which of the following Five Year Plan, the High Yielding Varieties Programme (HYVP) was started in India?
(a) First Five Year Plan
(b) Second Five Year Plan
(c) Third Five Year Plan
(d) Fourth Five Year Plan
Ans: (c)

314. From which one of the following enshrined in the Constitution, the Planning of India derives its objectives and social premises?
(a) Fundamental Rights
(b) Fundamental Duties
(c) Directive Principles of State Policy
(d) None of the above
Ans: (c)

315. Which one of the following is correct about the Trickle-Down theory of Economic Development?
(a) The policy of increasing tax rates so the revenue generated will be helpful to implement the social programmes.
(b) The policy of providing across the board tax cuts to businesses, so that this will indirectly benefit the broad population.
(c) The process of privatisation of key sector of Public Sector Units so that the revenue collected will be infused into developmental processes.
(d) None of the above
Ans: (b)

316. Which one of the Five Year Plans had a high priority to bring inflation under control and to achieve stability in the economic situation?
(a) Fourth Plan (1969-74)
(b) Fifth Plan (1974-79)
(c) Sixth Plan (1980-85)
(d) Seventh Plan (1985-90)
Ans: (b)

317. Consider the following statements
1. Allowing free capital inflows and FDIs.
2. Facilitate the migration of human resources.
3. Imposition of quantitative restriction on trades.
Which of the statements given above are important ingredients of the globalisation in true sense?
(a) 2 and 3 (b) 1 and 2
(c) 1 and 3 (d) 1, 2 and 3
Ans: (b)

318. Which one of the following sectors of the Indian Economy got the highest growth in the term GDP contribution after the adoption of LPG model of economic development?
(a) Agricultural Sector
(b) Fishing and Forestry Sector
(c) Mining and Quarrying Sector
(d) Services Sector
Ans: (d)

319. Which of the following best explains the stated broad vision and aspirations of the Twelfth Five Year Plan (2012-17)?
(a) Faster, sustainable and more inclusive growth
(b) Modernisation of industries and strengthening infrastructure
(c) Enhancing agricultural and rural incomes
(d) Checking inflation and strengthening non-economic variables like nutritional requirements, health and family planning
Ans: (a)

320. ‘Inclusive growth’ is a phrase used in India’s
1. Ninth plan
2. Tenth plan
3. Eleventh plan
4. Twelfth 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)

321. Consider the following economic processes taking place in Indian Economy
1. Import of western culture through the mass media and telecommunication system in India.
2. Establishment of factory units of MNCs in India.
3. Acquisition of branded foreign companies by Indian business tycoon.
Which of the economic processes given above is/are encompassed under globalisation?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

322. The First Five Year Plan (1951-56) was drafted by
(a) P.C Mahalanobis
(b) KN Raj
(c) JC Mumarappa
(d) Jawaharlal Nehru
Ans: (b)

323. During which Five Year Plan of Indian Economy, the growth rate of the agricultural production was negative?
(a) First Five Year Plan
(b) Third Five Year Plan
(c) Fifth Five Year Plan
(d) None of the above
Ans: (d)

324. From which one of the following years, the Rolling Plan of the Indian economy was started?
(a) 1966-1969 (b) 1978-1983
(c) 1980-1985 (d) 2002-2007
Ans: (b)

325. Which one of the following is not a feature of the Nehru-Mahalanobis model of development strategy?
(a) Development of capital goods industries
(b) Major involvement of the state in the economy
(c) Industrial deregulation and disinvestment in the public sector
(d) Enhancing the scope and importance of the public sector
Ans: (c)

326. Which one of the following is not the member of the National Development Council of India?
(a) Ministers of the Union Cabinet
(b) Chief Ministers of the States
(c) Administrators of the Union Territories
(d) Governors of the States
Ans: (b)

327. During which plan was the National Bank for Agriculture and Rural Development (NABARD) established to facilitate the rural credit and agricultural development?
(a) Third Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan
Ans: (c)

328. Consider the following statements
1. The state sets broad parameters and goals for the economy.
2. The targets to be achieved are broadly set by the state.
3. The plan is made for the specific time period of about 15 years.
Which of the statements given above is/are correct about the Indicative Planning?
(a) 1, 2 and 3 (b) 1 and 2
(c) 1 and 3 (d) Only 1
Ans: (b)

329. Which one of the following Five Year Plans of Indian economy started the Indicative Planning?
(a) Third Five Year
(b) Fifth Five Year
(c) Sixth Five Year
(d) Eighth Five Year
Ans: (d)

330. A Five Year Plan was severely affected by the immigration of huge number of people from Bangladesh. Which one of the following Five Year Plans was the Plan mentioned in above?
(a) First Five Year Plan
(b) Third Five Year Plan
(c) Fourth Five Year Plan
(d) Sixth Five Year Plan
Ans: (c)

331. Which one of the following objectives is/are correct about the Maritime Agenda 2010-20 of Indian port?
(a) Set a target of 3,130 MT port capacities for the year 2020 by creating more capacities
(b) Setting up ports in terms of performance
(c) Setting upto 20 more major ports to handle the shortage in the port facilities due to increase in international trade
(d) Both ‘a’ and ‘b’ are correct
Ans: (d)

332. First attempt to initiate economic planning in India was made by
(a) Jawaharlal Nehru
(b) M Visweswarayya
(c) Mahatma Gandhi
(d) Dadabhai Naoroji
Ans: (b)

333. NITI Ayog stands for
(a) New India Transforming Institute
(b) National India Transforming Institute
(c) National Institute for Transmission India
(d) National Institute for Transforming India
Ans: (b)

334. The Second Five Year Plan that called for the establishment of socialist pattern of society was commonly referred to as the
(a) Harrod – Domar Plan
(b) Mahalanobis Plan
(c) Nehru Plan
(d) People’s Plan
Ans: (b)

335. Which one of the following Five Year Plans of Indian Economy was terminated by the Janata Government?
(a) Fourth Five Year Plan
(b) Fifth Five Year Plan
(c) Seventh Five Year Plan
(d) Eighth Five Year Plan
Ans: (a)

336. Who is the Vice-chairman of NITI Aayog?
(a) PM Narendra Modi
(b) Rajnath Singh
(c) Sindhushree Kullar
(d) Aravind Panagariya
Ans: (d)

337. Which one of the following Five Year Plans of Indian economy took the first step to devalue the Indian rupee after independence?
(a) Second Five Year Plan
(b) Third Five Year Plan
(c) Fifth Five Year Plan
(d) Sixth Five Year Plan
Ans: (b)

338. Consider the following statements
1. In the history of Indian Planning, the actual growth rate of the GDP is never higher than the targeted growth rate.
2. In the First Five Year Plan, the actual GDP growth rate was more than the targeted growth rate.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

339. Which plan laid special emphasis on improving the condition of under privileged and weaker sections?
(a) Fifth Plan (b) Fouth Plan
(c) Tenth Plan (d) Eighth Plan
Ans: (b)

340. Consider the following statements
1. Perspective Planning is the planning of a long period of time usually 15-20 years.
2. In the Indicative Planning the state sets a broad parameters and goals for the economy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

341. What is the targetted growth rate of 12th Plan?
(a) 8.1% (b) 8%
(c) 6.5% (d) 5.6%
Ans: (b)

342. Original approach to Fifth Plan is prepared by
(a) DP Dhar
(b) Indira Gandhi
(c) C Subrahmaniam
(d) None of the above
Ans: (c)

343. Mahalanobis Plan Model adopted in India in the Mid-fifties aimed at
(a) building a strong defense Industry
(b) Setting – up heavy industry which were capital Intensive
(c) Curbing inflation in he economy.
(d) Removing unemployment With in a short period.
Ans: (b)

Part 4 Agriculture Sector
344. Which of the following crops are covered under Modified National Agricultural Insurance Scheme?
1. Food crops which include cereals, millets and pulses
2. Oil seeds
3. Annual commercial/horticultural crop
4. Floricultural crops. Choose the right answer from the codes given below
(a) 1, 2 and 3 (b) 3 and 4
(c) 1 and 2 (d) All of these
Ans: (a)

345. Which of the following is/are the objective(s) of the ‘National Watershed Development Project’ for rainfed areas of India?
(a) Sustainable farming systems
(b) Integrated watershed management
(c) Reclamation of forest area
(d) Both ‘a’ and ‘b’
Ans: (d)

346. Consider the following statements.
1. India has about 15% of livestock population of the world.
2. India is second to China in the population of buffalo livestock in the world.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

347. What is the main aim of the agriculture and allied sectors in the approach paper to the Twelfth Five Year Plan?
(a) To achieve the target of compounded GDP growth rate of 5%
(b) To achieve the growth rate of more than 5%
(c) Redouble the efforts to ensure 4% average growth
(d) Redouble the efforts to ensure 6% average growth
Ans: (c)

348. Consider the following statements
1. Agriculture and allied sectors contribute less than 20% of Gross Domestic Product of India.
2. Around 60% of net sown agricultural area of India is depended on rainfall.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

349. Consider the following statements about the National Agricultural Insurance Scheme (NAIS)
1. In National Agricultural Insurance Scheme (NAIS), the premium of the insurance for the different crops is same.
2. The National Agricultural Insurance Scheme (NAIS) has no any sun-set clause for the premium subsidy provided by the governments.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

350. Kisan Credit Card was launched by Indian Government to facilitate the short-term loan and cash delivery to farmers. Which one of the following agencies is not included in the operation of the Kisan Credit Cards?
(a) Scheduled Commercial Banks
(b) Co-operative Banks
(c) Regional Rural Banks
(d) NABARD
Ans: (d)

351. The Government of India has launched agriportals in the country. Identify them from the following
1. The Soil Health Card Portal
2. FertiliserQuality Control SystemPortal
3. Agricultural Information Portal
4. The Participatory Guarantee System Portal Choose the right answer using the codes given below
(a) 1 and 3 (b) 1, 2 and 3
(c) 2 and 4 (d) 1, 2 and
Ans: (d)

352. Consider the following statements
1. National Rainfed Area Authority (NRAA) was constituted in 2006 to give focused attention to the problem of the rainfed areas of the country.
2. National Rainfed Area Authority (NRAA) has a two tier structure, the Governing Board and Executive Committee.
3. Union Rural Development Minister is the Chairman of the National Rainfed Area Authority (NRAA).
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) 1 and 2 (d) All of these
Ans: (c)

353. Which one among the following agricultural sectors is covered under the Market Intervention Scheme (MIS) of the Indian Government?
(a) Forestry
(b) Irrigation
(c) Horticulture
(d) Animal Husbandry
Ans: (c)

354. Consider the following statements
1. The Food Corporation of India conducts effective price support operations for safeguarding the interests of the farmers.
2. FCI has an objective to make food grains available at reasonable prices, particularly to vulnerable section of the society.
Which of the statements given above is/are true?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

355. Who introduced HYV varieties of seed in India?
(a) JL Nehru (b) Mahalanobis
(c) N Borlaug (d) V Kurien
Ans: (c)

356. Consider the following statements
1. During the period 1960-61 to 2010-11 the foodgrains production grew at a compounded annual growth rate of around 2%.
2. Foodgrains production rose from around 50 million tonnes in the First Five Year Plan to 300 million tonnes at the end of Eleventh Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

357. The price at which the government purchases foodgrains for maintaining the public distribution system and for building up buffer stocks are known as
(a) Minimum Support Prices
(b) Procurement Prices
(c) Issue Prices
(d) Ceiling Prices
Ans: (b)

358. Consider the following statements about the Eleventh Five Year Plan with respect to agriculture and allied sector
1. The average annual growth in agriculture and allied sectors during the Eleventh Five Year Plan is more than the target set in the Plan Approach Paper.
2. For the Eleventh Five Year Plan, the average growth rate target for the agriculture and allied sector in the approach paper was set at 5%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

359. Consider the following statements
1. The yield of sugarcane in India was quadrupled during the Eleventh Five Year Plan as compared with the Tenth Five year Plan.
2. The production of sugarcane in India was doubled during the Eleventh Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

360. What is the main objective of Golden Rays Project?
(a) To increase the productivity of maize in tribal districts
(b) To increase the productivity of wheat in tribal districts
(c) To increase the productivity of oil seeds in tribal districts
(d) To increase the productivity of turmeric in tribal districts
Ans: (a)

361. Which scheme of food parks was renamed as Mega Food Parks?
(a) 7th scheme (b) 5th scheme
(c) 9th scheme (d) 10th scheme
Ans: (d)

362. Which one of the following agencies assigns the Agricultural Income Tax to states in India?
(a) Inter-State Council
(b) National Development Council
(c) Agricultural Finance Corporation
(d) Finance Commission
Ans: (d)

363. In which year, the Soil Health Card Scheme was originally launched by the Government of India?
(a) 2006-07 (b) 2004-05
(c) 2007-08 (d) 2014-15
Ans: (a)

364. Consider the following statements
1. Mega Food Parks Scheme is limited to non-land component of the project and project is done on 50-50-50 scheme.
2. 30%of Mega Food Parks Project cost limited to ` 70 crore in difficult and hilly areas and ITDP notified areas.
Which of the statements given above is/are true?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

365. Which of the following services are offered for agriculture under National e-Governance Scheme?
1. Information on pesticides, fertilisers and seeds
2. Electronic certification for exports and imports
3. Information on fishery inputs
4. Information on forecasted weather Choose the correct answer using the codes given below.
(a) 2 and 4 (b) 2 and 3
(c) 1 and 4 (d) All of these
Ans: (d)

366. Which of the following statements is correct about Soil Health Card?
(a) It is a card which provides the units of fertilisers that a farmer can use for his land.
(b) It is a card which suggests farmer to test his land soil every week.
(c) It is a card that provides vital information about the quality of soil by giving comprehensive information about type of soil, nutrient content, fertiliser required, crop suitability to ambient temperature and rainfall conduction.
(d) It is a card which provides information about the irrigation facilities required for soil.
Ans: (c)

367. Which of the following statements about the livestock sector in India is/are correct?
1. Livestock contributed about 25% at grass value in agriculture.
2. It provides selt employment to a large segment of population.
3. Rapid growth of livestock sector can be egalitarian and inclusive. Select the correct answer using the codes given below
(a) Only 3 (b) 1 and 2
(c) 2 and 3 (d) 1, 2 and 3
Ans: (d)

368. What is the rate of maximum premium that government has put on Kharif crops under Modified National Agriculture Insurance Scheme?
(a) 13% (b) 9%
(c) 11% (d) 10%
Ans: (c)

369. Which one of the following crops has been exceeding target since 2004-05 in India but its growers have been committing suicide in large numbers in many parts of the country every year?
(a) Pulse (b) Cotton
(c) Oilseeds (d) Wheat
Ans: (b)

370. Consider the following statements
1. In India, the Nutrient Based Subsidy (NBS) Policy for fertilisers was implemented in 2010.
2. The Nutrient Based Subsidy (NBS) Policy for fertiliers is applied only to the phosphorus based-fertilisers.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

371. What is the main concern of National Mission for sustainable agriculture?
(a) Issues regarding sustainable agriculture in the context of risk associated with irrigation.
(b) Issues regarding sustainable agriculture in the context of risk associated with credit facilities.
(c) Issues regarding sustainable agriculture in the context of risk associated with climate change.
(d) Issues regarding sustainable agriculture in the context of risk associated with chemical fertilisers.
Ans: (c)

372. Consider the following statements
1. Accelerated Irrigation Benefit Programme (AIBP) was implemented to extend assistance for the implementation of new irrigation projects in India.
2. Accelerated Irrigation Benefit Programme (AIBP) was launched in 1996-97.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

373. Which one of the following agencies of Indian Government implements the Price Support Scheme (PSS)?
(a) FCI (b) NAFED
(c) Agriculture Pricing Agency of India
(d) None of the above
Ans: (b)

374. Consider the following statements
1. The Minimum Support Price (MSP) Policy of India covers only wheat, paddy and coarse cereals.
2. The Minimum Support Price (MSP) for Grade-A Paddy is always higher than the common paddy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

375. Consider the following statements
1. Market Intervention Scheme (MIS) covers agricultural commodities which are generally perishable in nature.
2. Market Intervention Scheme (MIS) covers agricultural commodities which are not covered under the PSS.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

376. Who is known as the father of ‘White Revolution’ in India?
(a) MS Swaminathan
(b) BP Pal
(c) KN Bahl (d) V Kurien
Ans: (d)

377. List the following countries from top rice producer to least rice producer.
1. Vietnam 2. India
3. China 4. Indonesia Choose the correct answer using the codes given below
(a) 4, 2, 1, 3 (b) 2, 1, 4, 3
(c) 3, 2, 4, 1 (d) 1, 2, 3, 4
Ans: (c)

378. Consider the following statements
1. The crop development scheme of the Government of India called National Food Security Mission (NFSM) was launched in 2007.
2. Accelerated Pulses Production Programme is an important component of the National Food Security Mission (NFSM).
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

379. Which one of the following is not included in the agriculture and allied services of Indian economy?
(a) Fishing
(b) Forestry
(c) Logging
(d) Food processing
Ans: (d)

380. Consider the following statements
1. Rashtriya Krishi Vikas Yojana (RKVY) was launched to incentivise the states to enhance public investment to achieve 4% growth rate in Agriculture and Allied sectors during the Eleventh Five Year Plan period.
2. Rashtriya Krishi Vikas Yojana (RKVY) was launched in 2006-07.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

381. In which one of the following Five Year Plans in Indian economy did not fix the targets for the crop function for the first time?
(a) Fifth Five Year Plan
(b) Sixth Five Year Plan
(c) Eighth Five Year Plan
(d) Tenth Five Year Plan
Ans: (d)

382. Which of the following 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)

383. Which one of the following is not the aim of the Rainbow Revolution of Indian economy formulated in the National Agricultural Policy, 2000?
(a) Target to achieve 4% growth rate in agriculture
(b) Greater private sector participation in agriculture
(c) National Agriculture Insurance Scheme for all farmers
(d) Import of High Yielding Varieties of crops from other countries
Ans: (d)

384. Consider the following statements
1. The first Green Revolution was confined to Punjab, Haryana and Western Uttar Pradesh.
2. The second Green Revolution spread to other areas of Punjab, Haryana and Uttar Pradesh which were not covered in the first Green Revolution.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

385. The percentage of the agriculture land is very high in all the following states except
(a) Uttar Pradesh (b) Punjab
(c) Haryana (d) Sikkim
Ans: (d)

386. Consider the following statements
1. In last decade, the area under oilseeds has been decreasing at the faster pace.
2. India still imports about 50% of its requirement of edible oil from the foreign countries.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

387. When did the Kisan Credit Card Schemes for the farmers started in India?
(a) 1995-1996 (b) 1998-1999
(c) 2005-2006 (d) 2007-2008
Ans: (b)

388. Consider the following statements about the National Mission for Sustainable Agriculture (NMSA) started in India in 2010
1. National Mission for Sustainable Agriculture (NMSA) aims at enhancing food security and protection of resources such as land, water, biodiversity, and genetic resources.
2. National Mission for Sustainable Agriculture (NMSA) is one of the very important programme under the National Action Programme on Climate Change.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

389. Which one of the following schemes is not included in the Rashtriya Krishi Vikas Yojana (RKVJ)?
(a) National Mission for Protein Supplements
(b) Saffron Mission
(c) Accelerated Fodder Development Programme
(d) All of the above
Ans: (d)

390. Consider the following statements
1. India ranks first in the world in dairy milk production.
2. The per capita availability of dairy milk in India is more than the per capita availability of the world.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

391. Consider the following statements.
1. Varsha Bima, the rainfall insurance scheme, is managed by the Agriculture Insurance Company of India limited.
2. The scheme was Introduced during the 2007 South-west mansoon period.
Which of the statement given below is/are correct?
(a) Only 1I (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

392. Which one of the following has not been a component of the agricultural strategy that brought about the Green Revolution?
(a) Greater intensity of crop
(b) Guaranteed maximum prices
(c) New agricultural technology
(d) Package of input
Ans: (b)

393. Which one of the following is the correct sequence at economic sectors in terms of their contribution to the GDP of India in decreasing order?
(a) Service – Industry – Agriculture
(b) Agriculture – Industry – Service
(c) Industry – Service – Agriculture
(d) Agriculture – Service – Industry
Ans: (a)

394. Consider the following statements
1. The Agreement on Agriculture negotiated during the Uruguay Round of the GAAT.
2. The Agreement on Agriculture negotiated after the formation ofWTO.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

395. Consider the following
1. National Insurance Company Limited
2. New India Assurance Company Limited
3. United India Insurance Company Limited
4. Oriental Insurance Company Limited
Which of the Insurance companies given above participated in the formation of ‘Agriculture Insurance Company of India Limited (AICIL)’?
(a) 3 and 4 (b) 1, 2 and 3
(c) 2, 3 and 4 (d) All of these
Ans: (d)

396. Consider the following statements about National Watershed Development Project for rainfed areas launched in India
1. National Watershed Development Project for rainfed areas was launched in 1990-91.
2. National Watershed Development Project for rainfed areas was launched throughout the country.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

397. Which one of the following description is correct about the Varsha Bima/Rainfall Insurance Scheme of India?
(a) Varsha Bima is implemented by General Insurance Company of India Ltd.
(b) Varsha Bima was started during 2004 South-West monsoon period.
(c) Varsha Bima is implemented throughout the country.
(d) Varsha Bima is provided for two different options suiting varied requirements of farming community.
Ans: (b)

398. Which one of the following is the main objective of the Farm Income Insurance Scheme?
(a) To provide income protection to the farmers by insuring production
(b) To provide income protection to the farmers by insuring market risks
(c) To provide income protection to the farmers by providing the insured seeds to farmers
(d) Both ‘a’ and ‘b’
Ans: (d)

399. Which one of the following agencies is implementing the National Agricultural Insurance Schemes (NAIS) in India?
(a) General Insurance Corporation of India Limited
(b) Life Insurance Corporation of India Limited
(c) National Assurance Company of India Limited
(d) Agricultural Insurance Company of India Limited
Ans: (d)

400. Consider the following statements about the Livestock Insurance Scheme
1. Livestock Insurance Scheme was implemented in all the states except Goa.
2. Livestock Insurance Scheme has twin objectives of providing protection mechanism to the farmers and cattle rearers and to demonstrate the benefit of the insurance of livestock.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

401. Consider the following statements about Indian Agriculture
1. The area under foodgrains has declined in the last two decades.
2. The average farm size in the country is very small and declining over the years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

402. Consider the following statements
1. Agricultural commodities are the major products that have a large share of the commodities traded in the commodity futures market.
2. The commodity futures market facilitates the price discovery process and provides a platform for price risk management in commodities.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

403. Consider the following statements about NABARD
1. NABARD can accept the short-term deposits from public.
2. NABARD depends on the general line of credit received from the Reserve Bank of India to finance the agricultural credits.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

404. The Green Revolution in India has contributed to
(a) inter-regional inequality
(b) inter-class inequality
(c) inter-crop inequality
(d) All of the above
Ans: (d)

405. Consider the following statements
1. NABARD inherited all the apex roles from Reserve Bank of India.
2. NABARD gives long-term loans to State governments to enable them to subscribe to the share of cooperative credit societies.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

406. Consider the following statements about the different seed production cycles
1. Breeder seed is the primary stage of the seed production cycle.
2. Certified seed is the secondary stage of the seed production cycle.
3. Foundation seeds are produced and distributed to all farmers and regions.
Which of the statements given above is/are correct?
(a) Only 1 (b) 1 and 2
(c) 1 and 3 (d) All of these
Ans: (a)

407. The importance of agriculture in Indian economy is indicated by its contribution to which of the following?
(a) National Income and employment
(b) Industrial development and international trade
(c) Supply of foodgrains
(d) All of the above
Ans: (d)

408. Consider the following statements
1. NABARD was established by the Act of Parliament to take over the role of Agricultural Refinance Development Corporation.
2. Rural Infrastructure Development Fund (RIDF) to extend loans to state government is managed by commercial banks.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

409. In which one of the following Five Year Plans, the National Horticulture Mission (NHM) was launched in India?
(a) Eighth Five Year Plan
(b) Ninth Five Year Plan
(c) Tenth Five Year Plan
(d) Eleventh Five Year Plan
Ans: (c)

410. Consider the following statements
1. Regional Rural Banks grant direct loans and advances to marginal farmers and rural artisans.
2. NABARD is responsible for laying down policies and to oversee the operations of the RRBs.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

411. Which one of the following Cooperative Societies of India is responsible for the production of fertilisers?
(a) NAFED (b) IFFCO
(c) NCDC (d) TRIFED
Ans: (b)

412. Which one of the following is the apex cooperative organisation at the national level of India?
(a) TRIFED (b) NAFED
(c) FCS (d) RRBs
Ans: (b)

413. Where is the Central Rice Research Institute located?
(a) Kanpur (b) Bengaluru
(c) Coimbatore (d) Cuttack
Ans: (d)

414. Consider the following statements about the National Cooperative Marketing Federation of India Limited (NAFED)
1. NAFED promotes the inter-state trade as well as export of certain agricultural commodities to many foreign countries.
2. NAFED is responsible for the movement of the essential commodities from surplus areas to scarcity areas.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

415. The Fair and Remunerative Price (FRP) of sugarcane is approved by the
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
Ans: (a)

416. Consider the following statements about the Agriculture Income Tax
1. Agriculture Income Tax is levied and collected by the Union Government.
2. Agriculture Income Tax is levied throughout the country in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

417. Consider the following statements
1. 20-point programme of the Indian Government includes the measures to uplift the landless workers.
2. The 20-point programme was started by Janata Party Government in 1978.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

418. Consider the following statements
1. In India, more than 85% agricultural workers are mainly casual labourers.
2. Agricultural labourers in India are mainly dominated by the backward classes.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

419. Consider the following statements
1. Minimum Wage Act is only applicable to the scheduled employments of the Centre and States.
2. Minimum Wages Act has allowed discrimination between male and female workers or different minimum wages for them.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

420. Private Investment in Indian agriculture is mostly on labour saving mechanisation. This could be a response to
(a) rising productivity of agricultural sector
(b) rising inequality in agriculture
(c) rising wages and tighter labour market
(d) debt write – off by the Government.
Ans: (c)

421. Which one of the following Five Year Plans has the highest GDP growth rate in agricultural sector in India?
(a) Eighth Five Year Plan
(b) Ninth Five Year Plan
(c) Tenth Five Year Plan
(d) Eleventh Five Year Plan
Ans: (d)

422. In India, markets in agricultural products are regulated under the
(a) Essential Commodities Act, 1955
(b) Agricultural Produce Market Committee Act enacted by states
(c) Agricultural Produce (Grading and Marking) Act, 1937
(d) Food Products Order, 1956 and Meat and Food Products Order, 1973
Ans: (b)

423. Consider the following statements
1. Till now there is no State Warehousing Corporation to construct and run the warehouses to store agricultural products in India.
2. The total storage capacity in India is more than 150 million tonnes of foodgrains.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

424. Consider the following statements
1. Central Warehousing Corporation is responsible for the construction and running of the godowns for storage of agriculture products.
2. Central Warehousing Corporation of India was established in 1957.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

425. Which one of the following Five Year Plans of Indian Government promoted the well-spreadout storage grid from the farm to the national level?
(a) First and Second Five Year Plans
(b) Sixth and Seventh Five Year Plans
(c) Eighth and Ninth Five Year Plans
(d) Tenth and Eleventh Five Year Plans
Ans: (b)

426. Consider the following agencies of India
1. Central Warehousing Corporation (CWC)
2. State Warehousing Corporations (SWCs)
3. Food Corporation of India (FCI)
Which of the agencies given above is/are responsible for the building warehouse and godowns in the public sector?
(a) 1, 2 and 3 (b) 1 and 2
(c) 2 and 3 (d) Only 1
Ans: (a)

427. Consider the following statements
1. The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
2. The Command Area Development Programme was launched in 1974-75 for the development of water use efficiency.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

428. Consider the following statements
1. Farm Income Insurance Scheme at the beginning covered only rice and wheat crops.
2. National Agricultural Insurance Scheme is withdrawn from the crops which are covered under the Farm Income Insurance Scheme.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

429. Which one of the following agencies of India decides the Minimum Support Prices of the agricultural crops?
(a) Ministry of Agriculture
(b) NABARD
(c) Ministry of Commerce
(d) Agricultural Cost and Price Commission (ACPC)
Ans: (d)

430. Consider the following statements
1. Agriculture including allied activities accounted for about 55% employment in the country according to Census 2011.
2. The growth in agriculture and allied sectors is a necessary condition for inclusive growth in India.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

431. Consider the following statements
1. Regarding the procurement of foodgrains, Government of India follows a procurement target rather than an open ended procurement policy.
2. Government of India announces minimum support prices only for cereals.
3. For the distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central Issue Prices to the States/Union Territories.
Which of the statements given above is/are correct?
(a) 1, 2 and 3
(b) 1 and 3
(c) 2 and 3
(d) Only 2
Ans: (b)

432. Match List I with List II and select the correct answer using the codes given below the lists
List I (Revolution) List II (Associated area)
A. Yellow Revolution 1. Food crops
B. Blue Revolution 2. Oil seeds
C. White Revolution 3. Milk production
D. Green Revolution 4. Fish production
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (a)

433. Which one of the following agencies of the Indian Government is engaged in the standardisation and grading of various agricultural products?
(a) Food Corporation of India
(b) Directorate of Marketing and Inspection
(c) Bureau of Indian Standard
(d) Central Statistical Organisation
Ans: (b)

434. Consider the following statements
India continues to be dependent on imports to meet the requirement of oilseeds in the country because
1. farmers prefer to grow foodgrains with high remunerative support prices. 2.most of the cultivation of oil crops continued to be dependent on rainfall.
3. oil from the seeds of free-origin and rice bran have remained unexploited.
4. it is far cheaper to import oilseeds than to cultivate the oilseed crops.
Which of the statements given above are correct?
(a) 1, 2 and 3 (b) 1 and 2
(c) 2 and 3 (d) 2 and 4
Ans: (a)

435. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
(a) Microfinance Institutions
(b) Regional Rural Banks
(c) Cooperative Banks
(d) Commercial Banks
Ans: (d)

436. The Green Revolution has led to mark increase in
1. productivity of wheat.
2. productivity of pulses.
3. regional inequalities.
4. inter-personal inequalities.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4
(b) 1, 2 and 3
(c) 2 and 3
(d) 3 and 4
Ans: (a)

437. Swaroop Committee is associated with
(a) financial products marketing
(b) sugar marketing
(c) banking
(d) capital marketing
Ans: (a)

438. An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are these crops?
(a) Rice and wheat
(b) Rice, wheat and pulses
(c) Rice, wheat, pulses and oilseeds
(d) Rice, wheat, pulses, oilseeds and vegetables
Ans: (b)

439. Indian agriculture is typically characterised as
(a) land surplus and labour scarce economy
(b) land surplus and labour surplus economy
(c) land scarce and labour surplus economy
(d) land scarce and labour scarce economy
Ans: (c)

440. Consider the following statements
1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season.
2. Sugar and sugarcane are essential commodities under the Essential Commodities Act.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

441. Which one of the following committees recommended to establish the National Bank for Agriculture and Rural Development (NABARD) in India?
(a) Narsimham Committee
(b) Chakrovarti Committee
(c) Abhijit Sen Committee
(d) Shivaraman Committee
Ans: (d)

442. Consider the following reasons
1. Lack of irrigation facilities, low productivity of land.
2. Single crop mode of cultivation.
3. Indian agriculture’s dependence on the monsoon.
Which of the reasons given above is/are responsible for the migration of people from rural to urban areas for the search of livelihood in Indian economy?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

443. The substitution of steel for wooden plough in agricultural production is an example of
(a) labour augmenting technical progress.
(b) capital Augmenting technical progress
(c) capital reducing technological progress
(d) None of the above
Ans: (b)

444. With reference to agricultural sector of India, consider the following statements
1. Rural Infrastructure Development Fund disperses loans to the states to complete the minor irrigation projects.
2. Rural Infrastructure Development Fund is managed by the public sector commercial banks.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

445. In India, contribution of food inflation to overall inflation is around 1 3 rd to 2 5 th. Within food inflation, contribution of food articles is higher because price rise in food articles is
(a) higher and their weight is also higher compared to food products.
(b) higher but their weight is lower compared to food products.
(c) lower but their weight is higher compared to food products.
(d) lower and their weight is also lower compared to food products.
Ans: (a)

446. Which of the following best describes the main objective of Seed Village Concept?
(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others.
(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost.
(c) Earmarking some villages exclusively for the production of certified seeds.
(d) Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies.
Ans: (b)

447. The Fair and Remunerative Price (FRP) of sugarcane is approved by the
(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
Ans: (a)

448. With reference to agriculture sector of India, consider the following statements
1. Command Area Development (CAD) programme was started in 1995-96.
2. CAD was aimed to maximise the agricultural productivity through optimisation of the irrigation of the command areas.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

449. Match List I with List II and select the correct answer using the codes given below the lists
List I List II
A. NABARD 1. Inter-state sale of agricultural commodities
B. NCDC 2. Loans and credits to rural artisans and small farmers
C. SCARDB 3. Assistance for the land development
D. NAFED 4. Financial assistance for the construction of godowns and warehouses
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (a)

450. National Seed Policy, 2002 is based on the recommendation of
(a) Kelkar Committee
(b) MV Rao Committee
(c) YV Reddy Committee
(d) Abhijit Sen Committee
Ans: (b)

451. Choose the correct statement(s) in the context of Cooperative banks in India
1. Cooperative banks operate on no profit no loss basis.
2. Cooperative banks are allowed to operate only in the agricultural sector.
3. NABARD is a Cooperative bank.
(a) Only 1
(b) 1 and 2
(c) 1 and 3
(d) All of the above
Ans: (a)

452. Consider the following statements
1. National Fisheries Development Board is an autonomous organisation under the control of Ministry of Agriculture at central level.
2. Fishery Survey of India (FSI) is the nodal organisation responsible for survey and assessment of fishery resources under the Indian Exclusive Economic Zone.
Which of the statements given above is/are correct?
(a) Only 1 (b) Both 1 and 2
(c) Only 2 (d) None of these
Ans: (b)

453. Which one of the following statements are correct?
1. National Bamboo Mission was launched in 2006-07 by the Central Government to promote the growth of bamboo sector in the country.
2. National Horticulture Mission was launched during the year 2006-07.
3. Macro-Management of Agriculture (MMA) Scheme was launched in 2002-03.
4. A centrally sponsored scheme on micro irrigation was launched in January, 2006. Select the correct answer using codes given below
(a) 1 and 3 (b) 1 and 4
(c) 2 and 3 (d) All of these
Ans: (b)

454. During the Eleventh Five Year Plan, agricultural sector in India witnessed a growth rate of 3.3% per annum which is higher than 2.4% per annum in the previous Five Year Plan. This is largely due to better performance of
(a) crops and livestock
(b) oilseeds and fibres
(c) fishing and oilseeds
(d) fibres and fishing
Ans: (b)

455. In the context of the 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?
1. There is no National Seeds Policy in place.
2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops. Select the correct answer using the codes given below
(a) 1 and 2 (b) Only 3
(c) 2 and 3 (d) None of these
Ans: (b)

456. When was the National Food Security Mission (NFSM) launched in India?
(a) Rabi season (1999-2000)
(b) Kharif season (1999-2000)
(c) Rabi season (2007-2008)
(d) Kharif season (2007-2008)
Ans: (c)

457. Consider the following statements
1. Rashtriya Krishi Vikas Yojana aims to achieve 4% growth rate in the agriculture and allied sector of Indian Economy during the plan.
2. Rashtriya Krishi Vikas Yojana restricts the states from taking the decision to implement the scheme according to socio-environment conditions of area.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

458. Which one of the following ministries is implementing the National Bamboo Mission in India?
(a) Ministry of Science and Technology
(b) Ministry of Rural Development
(c) Ministry of Agriculture
(d) Ministry of North-Eastern Region
Ans: (c)

459. Which of the following are the components of National Commission on farmers?
1. Soil health enhancement with special focus on dry farming
2. Irrigation water supply augmentation and demand management
3. Credit and insurance facilities like creation of agricultural risk fund
4. Technological reforms in the forms of proper integration of production and post-harvest technologies, development of cadre of Rural Farm Science Managers and lab-to-land demonstrations
5. Assured and remunerative marketing Choose the right answer from the following codes
(a) 1, 3 and 5
(b) 2 and 4
(c) 1, 2, 3 and 4
(d) All of the above
Ans: (d)

460. Which of the following sentences is/are true about the salient features of National Agricultural Policy?
1. 6% growth rate per annum for the next two decades
2. Consolidation of holdings in all states of the nation
3. Promoting private investments in agriculture
4. To promote biotechnology
5. To provide insurance umbrella for crops to farmers Choose the right answer using the codes given below
(a) 1, 4 and 5 (b) 3, 4 and 5
(c) 2, 3, 4 and 5 (d) All of these
Ans: (c)

Part 5 Industrial Sector
461. In India, in the overall index of industrial production, the indices of eight core industries have a combined weight of 37-90%. Which of the following are among those eight core industries?
I. Cement 2. Fertilisers 3. Naturalgas 4. Refineryproducts
5. Textiles Select the correct answer using the codes given below
(a) 1, and 5 (b) 2, 3 and 4
(c) 1, 2, 3 and 4 (d) 1, 2, 3, 4 and 5
Ans: (c)

462. Which one of the following statements about the Companies Act 2013 is not correct?
(a) The Act regulates the corporate sector to make it accountable.
(b) It provides for Corporate Social Responsibility (CSR).
(c) It provides more opportunities for new entrepreneurs.
(d) It enables wide application of Information Technology.
Ans: (a)

463. Classification of an enterprise into public or private sector is based on
(a) number of employees in the enterprise.
(b) ownership of assets of the enterprise.
(c) employment conditions for workers in the enterprise.
(d) nature of products manufactured by the enterprise.
Ans: (b)

464. Container Corporation of India Limited (CONCOR), a public sector undertaking is under the administration control of which of the following ministries?
(a) Heavy industry (b) Small scale
(c) Ministry of Railways
(d) Shipping, Road Transport and Highways
Ans: (c)

465. 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)

466. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?
(a) The Reserve Bank of India
(b) The Department of Economic Affairs
(c) The Labour Bureau
(d) The Department of Personnel and Training
Ans: (c)

467. Consider the following statements
1. The first Petrochemical Industry in India’s started with the establishment of National Organic Chemical Industry Limited in decades sixties.
2. The real importance of Petrochemical Industry in India shown with the establishment of Indian Petrochemicals Corporation Limited (IPCL) at Baroda.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

468. Consider the following statements
1. The USSR assisted in building of Bhillai Steel Plant.
2. The British assisted in the building of the Bokaro Steel Plant.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

469. Consider the following statements
1. In Indian economy, the share of Industry sector in employment generation is more than 20%.
2. In the Eleventh Five Year Plan, the industrial growth measured in terms of IIP shows fluctuating trends.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

470. Which one of the following continents accounts for the maximum share in exports from India?
(a) Asia (b) Europe
(c) Africa (d) North America
Ans: (a)

471. Consider the following statements about the Navratna Status Industries
1. Navratna was originally assigned to nine Public Sector Enterprises in 1997.
2. The number of PSEs having Navratna status is now more than 15 industries.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

472. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight?
(a) Coal production
(b) Electricity generation
(c) Fertiliser production
(d) Steel production
Ans: (b)

473. Which one of the following is not correct in the context of industrial clusters development in India?
(a) Industrial clusters play an important role for the MSME participants in their inclusiveness, technology absorption and efficiency improvement.
(b) Industrial clusters are visible in traditional handloom, handicrafts and modern SMC.
(c) Industrial cluster programmes in India are administered by various ministries.
(d) Industrial clusters lead to promotion of monopoly in the market.
Ans: (c)

474. Match List I with List II and select the correct answer using the codes given below the lists
List I (Aluminium company) List II (Location)
A. BALCO 1. Hirakud
B. HINDALCO 2. Korba
C. Indian Aluminium Company 3. Koraput
D. NALCO 4. Renukoat
Codes A B C D A B C D
(a) 2 4 1 3 (b) 2 3 4 1
(c) 4 2 1 3 (d) 4 1 3 2
Ans: (a)

475. Which one of the following is not correct in the context of Balance of Payments of India during 2013-14?
(a) India’s exports were less than its imports.
(b) Trade balance was negative.
(c) Net imbibes were positive.
(d) Capital account balance was negative.
Ans: (a)

476. Which one of the following issues the ‘Global Economic Prospects’ report periodically?
(a) The Asian Development Bank
(b) The European Bank for Reconstruction and Development
(c) The US Federal Reserve Bank
(d) The World Bank
Ans: (d)

477. Which one of the following sub-groups of the Industrial Sector has contributed the highest percentage of weighted in Index of Industry Productions (IIPs)?
(a) Mining (b) Construction
(c) Electricity (d) Manufacturing
Ans: (d)

478. Which one of the following sub-sectors of the Indian Industries has the highest percentage share of employment in the Indian Economy?
(a) Mining (b) Manufacturing
(c) Construction (d) Electricity
Ans: (b)

479. Which one among the following is the target set in the National Manufacturing Policy (NMP) to achieve the sustained growth rate in the Manufacturing sector of Indian Economy?
(a) 10-12% (b) 12-14%
(c) 15-16% (d) 18-20%
Ans: (b)

480. Consider the following statements
1. MMTC limited is India’s largest international trading organisation.
2. Neelanchal Ispat Ningam Limited has been set up by MMTC jointly with the Government of Odisha.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

481. A labour intensive industry is one that
(a) require hard manual labour
(b) pay adequate wages to the labour
(c) employs more hands
(d) provide facilities to labour
Ans: (c)

482. Consider the following objectives of the National Manufacturing Policy (NMP) of Indian Economy
1. To enable themanufacturing sector to contribute at least 25% of GDP by 2022.
2. To create 500 million additional jobs in the manufacturing sector by 2022.
3. To create the appropriate skill sets among the rural migrant and urban poor for their easy absorption in manufacturing sector.
4. To allow more Foreign Direct Investment (FDI) in Manufacturing sector by 2017.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 2 and 3
(c) 1 and 3 (d) 2 and 4
Ans: (c)

483. In which one of the following places was the Asia’s First Export Processing Zone (EPZ) setup?
(a) Santa Cruz (b) Kandla
(c) Cochin (d) Surat
Ans: (b)

484. Consider the following aims of the National Manufacturing Policy (NMP) of Indian Economy
1. National Investment and Manufacturing Zones (NIMZs) will be established on lands which are degraded and uncultivable.
2. NIMZs are the integrated industrial townships with world class physical and social infrastructure.
Which of the statements about NIMZs formulated in NMP given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

485. Consider the following statements about the Mega Food Parks
1. Mega Food Park is a well-defined agri/ horticultural-processing zone containing state of the art processing facilities with support infrastructure and well established supply chain.
2. Mega Food Park was launched in the Ninth Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

486. Consider the following statements
1. Packaging machinery industry, like other industrial machinery, is allowed for 100% FDI under automatic approval.
2. Food processing machinery can be classified under the general category of industrial machinery which is de-licensed under the current industrial policy and qualifies for 100% FDI under automatic approval.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

487. There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalising subsidies
4. Expanding industries Select the correct answer using the codes given below
(a) 1 and 3 (b) 2 and 3
(c) Only 1 (d) 1, 2, 3 and 4
Ans: (a)

488. Consider the following statements about Tata Steel
1. It is the Asia’s first privately owned integrated Iron and steel plant.
2. It is the first company outside Japan to get the Deming Application Prize in 2008 for excellence in total quality management.
3. Immediately after the enactment of the Provident Fund Law in India, Tata steel introduced provident fund for its employees.
4. It is the first company in the world to get social accountability 8000 certification from the social Accountability International from the USA.
Which of the statements given above is/are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (b)

489. Which one among the following Five Year Plans of Indian economy diversified the planning, shifting focus from heavy and basic industries to new sunrise industries like telecommunication, computers, electronic?
(a) Second Five Year Plan
(b) Fourth Five Year Plan
(c) Seventh Five Year Plan
(d) Ninth Five Year Plan
Ans: (c)

490. Consider the following statements about the Second Five Year Plan
1. Priorities were given in the production of iron and steel and heavy engineering and machine building industries.
2. Strengthened the oil exploration and coal in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

491. Which of the following Five Year Plans of Indian Economy encouraged the Industrial Sectors to use Robotics, Fibre Optics to enhance the quality and productivity for the first time in the process of industrialisation of the country?
(a) First Plan (b) Second Plan
(c) Fourth Plan (d) Seventh Plan
Ans: (d)

492. Which of the following Five Year Plans of the Indian economy for the first time did devise the new strategy for industrialisation of backward regions to reduce regional disparities in industrialisation of the country?
(a) Third Plan (b) Fourth Plan
(c) Sixth Plan (d) Eight Plan
Ans: (c)

493. If the interest rate is decreased in an economy, it will
(a) decrease the consumption expenditure in the economy.
(b) increase the tax collection of the government.
(c) increase the investment expenditure in the economy.
(d) increase the total savings in the economy.
Ans: (c)

494. Consider the following statements
1. India has attained self-sufficiency in almost all consumer goods.
2. In the term of capital goods, India still depends on the import.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

495. Which one of the following is the correct sequence of economic sectors in terms of their contribution to the GDP of India in decreasing order?
(a) Service—Industry—Agriculture
(b) Agriculture—Industry—Service
(c) Industry—Service—Agriculture
(d) Agriculture—Service—Industry
Ans: (a)

496. Consider the following statements
1. In Indian economy, the employment generated by the private sector is more than that of the public sector.
2. In Indian economy, the growth rate of public sector in the industrial areas like heavy and basic industries, machine goods sector etc is more than that of the private sector.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

497. The income elasticity of demand for inferior goods is
(a) less than one
(b) less than zero
(c) equal to one
(d) greater than one
Ans: (b)

498. Which of the following is true about Index of Industrial Production (IIP)?
1. It measures the general level of industrial activity.
2. It does not show volume of activity.
3. It only shows the magnitude which represents the status of production.
4. The first IIP was published in 1990. Choose the correct answer using the codes given below
(a) 1 and 2 (b) 2 and 3
(c) 1, 2 and 3 (d) All of these
Ans: (c)

499. Consider the following statements
1. Disinvestment is using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units rather than receiving the distributions in cash.
2. Disinvestment refers to selling of equity of a Public Sector Undertaking (PSU) to a private organisation or to general public.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of them
Ans: (b)

500. Which one of the following is not an immediate indicator of Industrial Sickness?
(a) Drop in profitability
(b) Labour unrest
(c) Shrinking of market credit
(d) Decline in market share
Ans: (d)

501. Which one of the following committees recommended the abolition of reservation of items of small scale sector in industry?
(a) Abid Hussain Committee
(b) Narsimhan Committee
(c) Nayak Committee
(d) Rakesh Mohan Committee
Ans: (a)

502. Which of the following costs is related to Marginal cost?
(a) Fixed cost (b) Implicit cost
(c) Prime cost (d) variable cost
Ans: (d)

503. Consider the following statements
1. Public sector also in the telecom, insurance and commercial banking.
2. All industries of public sector are profit oriented.
3. Jobs secured in the public sector industries.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (b)

504. National Renewal Fund was constituted for the purpose of
(a) Providing pension for retiring employees
(b) Social security
(c) Rural reconstruction
(d) Reconstruction and modernisation of industries
Ans: (d)

505. Which one of the following Industrial Policies has abolished (with a few exception) the Industrial Licensing?
(a) Industrial Policy, 1970
(b) Industrial Policy, 1980
(c) Industrial Policy, 1991
(d) Industrial Policy, 1985
Ans: (c)

506. Which one of the following states is industrially the most advanced state in India?
(a) Punjab (b) Tamil Nadu
(c) Gujarat (d) Maharashtra
Ans: (d)

507. Consider the following factors regarding an industry
1. Capital investment
2. Business turnover
3. Labour force
4. Power consumption
Which of the factors given above determine the nature and size of the industry?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 3 and 4 (d) 3 and 4
Ans: (c)

508. Division at labour often involves
1. Specialised economic activity
2. highly distinct productive roles
3. involving everyone in many types of activities
4. individuals engage in only a sing activity and are dependent on others meet their various needs Select the correct answer using the codes given show
(a) 1, 3 and 4 (b) 1, 2 and 4
(c) Only 3 (d) 2 and 4
Ans: (b)

509. Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?
1. The government intends to use the revenue earn from the disinvestment mainly to pay back the external debt.
2. The government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

510. Consider the following statements
1. The expansion of public sector was based on Industrial Policy Resolution, 1956.
2. Government has announced New Industrial Policy in July, 1991.
3. Government has not announced any Industrial Policy at all.
Which of the statements given above is/are correct?
(a) 1, 2 and 3 (b) 1 and 2
(c) 2 and 3 (d) Only 2
Ans: (b)

511. Match List I with List II and select the correct answer using the codes given below the lists
List I (Phase of Industrial Revolution) List II (Feature)
A. First Phase 1. Rise of steel, chemicals and electricity industries
B. Second Phase 2. Rise of cotton mills
C. Third Phase 3. Rise of steam engine
D. Fourth Phase 4. Rise of petro-chemicals, jet aircraft and computers
Codes A B C D A B C D
(a) 2 1 3 4 (b) 2 3 1 4
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (b)

512. Which of the following industries were established by the Walehand Group of companies prior to independence?
1. Hindustan Aircraft
2. Sciendia Steam Navigation
3. Premier Automobiles
4. Hindustan Motors
(a) 2, 3 and 4 (b) 1, 2 and 3
(c) 1, 2 and 4 (d) 1, 3 and 4
Ans: (b)

513. Which one of the following is not a feature of Limited Liability Partnership Firm?
(a) Partners should be less than 20.
(b) Partners and management need not to be separate.
(c) Internal governance should be decided by mutual agreement among partners.
(d) It is a corporate body with perpetual succession.
Ans: (a)

514. Which of the following statements are correct?
1. The global economy relied on oil for much of the twentieth century as a portable and indispensable fuel.
2. The immense wealth associated with oil generates political struggles to control it.
3. History of petroleum is the history of war and struggle.
4. Nowhere this is more obvious the case of war and struggle than inWest Asia and Central America.
Which of the statements given above is/are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

515. The SEZ Acts, 2005 which came into effect in February 2006 has certain objectives. In this context consider the following
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of export of services only.
Which of the above is/are objective of this Act?
(a) 1, 2 and 3 (b) 1 and 2
(c) 2 and 3 (d) Only 2
Ans: (b)

516. The International Development Association, a lending agency is administered by the
(a) International Bank for Reconstruction and Development
(b) International Fund for Agricultural Development
(c) UNDP
(d) UNIDO
Ans: (a)

517. Which one of the following committee recommended the establishment of Joint Venture Sector in Indian Industry?
(a) Rangarajan Committee
(b) Dutta Committee
(c) Santhanam Committee
(d) None of the above
Ans: (b)

518. With reference to India, consider the following statements
1. WPI is available on a monthly basis only.
2. As compare to Consumer Price Index for the IndustrialWorker (CPI-IW), the WPI gives less weightage to food articles.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

519. Which of the following industries fell under the purview of industrial licensing that requires compulsory licensing?
1. Coal and Lignite
2. Hazardous chemicals
3. Drugs and pharmaceuticals
4. Electronic, aerospace and all types of defense equipment
5. Animal fats and oils Choose the correct answer using the codes given below
(a) 2 and 4
(b) 1 and 2
(c) 1, 2, 3 and 4
(d) 1, 2, 3, 4 and 5
Ans: (c)

520. WTO came into existence at the conclusion of which round of GATT?
(a) Singapore (b) Uruguay
(c) Tokyo (d) Marrakesh
Ans: (d)

521. What is Small Industries Development Fund (SIDF)?
(a) It provides technical, managerial, economic and marketing assistance to SSIs through its network.
(b) It provides refinance assistance for development, expansion, modernisation, rehabilitation of SSIs.
(c) It provides initial capital for setting up of new projects in small scale sector in the form of equity.
(d) It provides short term as well as long term financial assistance to SSIs.
Ans: (b)

522. Which of the following is not a feature of New Industrial Policy, 1991?
(a) Foreign Capital Investment limit was raised from 40% to 51%.
(b) The threshold limit of ` 100 crores worth of assets for classification of a company as MRTP company was removed.
(c) Automatic approval was granted for foreign technology agreements upto the limit of ` 500 crore subject to 7% loyalty on domestic sales and 8% on exports.
(d) A separate policy announced for the promotion of small scale industries.
Ans: (c)

523. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in
(a) 1980 (b) 1986 (c) 1991 (d) 1997
Ans: (b)

524. When was the Maharatna Scheme introduced?
(a) 15thMay, 2009 (b) 19thMay, 2009
(c) 19thMay, 2010 (d) 15thMay, 2010
Ans: (c)

525. Consider the following Public Sector Enterprises (PSEs)
1. Steel Authority of India Limited
2. Indian Oil Corporation Limited
3. Oil and Natural Gas Corporation Limited
4. Hindustan Aeronautics Limited
Which of the PSEs given above are ‘Maharatna PSU’ in India?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (b)

526. Consider the following statements about the Industrial Park permitted by Indian Government
1. It would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area.
2. The minimum percentage of the area to be allocated for industrial activity shall not be less than two third of the total allocable area.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

527. Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro, small and Medium Enterprises Development Act, 2016?
(a) More than ` 10 lakh and lessthan ` 2 crore
(b) More than ` 2 crore and less than ` 5 crore
(c) More than ` 5 crore and less than ` 10 crore
(d) More than ` 10 crore
Ans: (c)

528. Consider the following statements
1. Miniratna Public Sector Enterprises can be a joint venture, set subsidiary company or overseas office but with certain conditions.
2. Till now less than 50 Public Sector Enterprises have been given Miniratna Status by the Indian Government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

529. Which of the following are Navaratna CPSEs?
1. Bharat Electronics Limited
2. Oil India Limited
3. Power Finance Corporation Limited
4. Shipping Corporation of India Limited Choose the correct answer using the codes given below
(a) 1 and 2 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) 1, 2, 3 and 4
Ans: (d)

530. Which of the following is/are the criteria for Maharatna status?
1. Having Navaratna status
2. An average annual turn over or more than ` 25000 crore during the last 3 years
3. An average annual net worth of more than ` 10000 crore during the last 3 years
4. An average annual net profit after tax of more than ` 5000 crore during the last 3 years Choose the correct answer from the codes given below
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 1, 2 and 4 (d) All of these
Ans: (a)

531. Consider the following statements
1. The Navaratna status is offered to Public Sector Enterprises by Department of Public Sector Enterprises.
2. A company must have be a Miniratna and have four independent directors on its board before it can be made a Navaratna.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of them
Ans: (c)

532. The first modern industry to develop in India was
(a) Iron and Steel Industry
(b) Cement Industry
(c) Computer Industry
(d) Food Processing Industry
Ans: (a)

533. World Investment Report is published by which of the following?
(a) WEF (b) WTO
(c) GATT (d) UNCTAD
Ans: (d)

534. Consider the following Industrial sub-sectors
1. Atomic Energy 2. Railway transport
3. National Highways
Which of the Industrial sub-sectors given above is/are not privatised/ liberalised?
(a) 1, 2 and 3 (b) 1 and 2
(c) 1 and 3 (d) Only 2
Ans: (b)

535. Which among the following are the functions of Board for Reconstruction of Public Sector Enterprises?
1. Studying the proposals of all those units that are referred as sick industries and considering other loss making central PSUs either Suo moto or upon reference by the administrative ministry.
2. Advise the government on ways and means for strengthening PSUs in general and to make them more autonomous and professional.
3. Advise the government on disinvestment/closure/sale in respect of chronically sick/loss making companies which cannot be revived.
4. Attract foreign companies to set up factories in India and invest in the country’s infrastructure. Choose the correct answer using the codes given below
(a) 1 and 4 (b) 2 and 3
(c) 1, 2 and 4 (d) 1, 2 and 3
Ans: (d)

536. When was the Board for Industrial and Financial Reconstruction started?
(a) 15thMay, 1987 (b) 7th July, 1987
(c) 20th December, 1987
(d) 16th April, 1987
Ans: (a)

537. Consider the following statements about the sugar industries in India
1. The main reason for sickness in sugar industries is due to the practice of State Advised Prices (SAPs).
2. There is no price control on the sale of free sugar.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

538. In 1985, Industrial Reconstruction Corporation of India renamed as
(a) Industrial and Financial Reconstruction
(b) Industrial Reconstruction Bank of India
(c) Industrial Investment Bank of India
(d) Industrial Investment for Reconstruction Bank of India
Ans: (b)

539. Which one of the following Public Sector Enterprises (PSEs) is not of Navratna Status PSEs?
(a) Rural Electrification Corporation Limited
(b) Neyveli Lignite Corporation Limited
(c) Shipping Corporation of India Limited
(d) Bharat Dynamics Limited
Ans: (d)

540. The law of increasing returns means
(a) Increasing cost
(b) Decreasing cost
(c) Increasing production
(d) Increasing income
Ans: (a)

541. Make in India Programme has launched on
(a) 26th December, 2014
(b) 20thOctober, 2014
(c) 25th September, 2014
(d) None of the above
Ans: (c)

542. Consider the following statements
1. The Per Capita consumption of plastics in India is the highest in the world.
2. The Petrochemical industry in India gives a big boost to the small scale industries.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

543. What is the weightage of natural gas in the Index of eight crore industries?
(a) 4.38% (b) 1.71%
(c) 5.22% (d) 0.93%
Ans: (b)

544. Which of the following statements are correct?
1. Central Silk Board is a statutory body under the administrative control of the ministry of textiles.
2. Technology mission on cotton was launched by the Government of India in February 2000.
3. Cotton contributes 10% to the industrial production, 2% to the GDP and 12% to the country’s export earnings. Select from the codes given below
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (a)

545. SIDBI was established in October 1989, by amalgamation of
(a) National Manufacturing Fund and Industries Fund
(b) Small Industries Development Fund and National Equity Fund
(c) Industrial Reconstruction Fund and Industrial Restructuring Fund
(d) None of the above
Ans: (b)

546. Consider the following statements about Competition Commission of India
1. Competition Commission of India (CCI) was established with effect from 14th October, 2003
2. The goal is to restrict the monopoly tendencies and increase the competition among public enterprises.
3. CCI Consists of a chairperson and 6 members appointed by the Certral Government.
(a) Only 1 (b) 1 and 2
(c) Only 2 (d) All of these
Ans: (c)

547. The way total output changes due to change in all inputs in same proportion is known as law of
(a) returns to scale
(b) diminishing
(c) increasing returns
(d) Constant returns
Ans: (d)

548. Which key sectors have been identified in India which have the potential of becoming a World Leader?
1. IT 2. Pharmaceuticals
3. Textiles 4. Ports
5. Leather Select the right code
(a) 1, 3 and 4
(b) 1, 2 and 4
(c) 2, 3 and 4
(d) 1, 2, 3, 4 and 5
Ans: (d)

549. Consider the following statements
1. The recent decision of government of India to partially decontrol the sugar industry gives the millers the freedom to sell sugar in open market and removes their obligation to supply sugar at subsidised prices to ration shops.
2. C. Rangarajan Panel also suggested decontrolling of sugar industry in India.
Which of the statements given above is/are correct ?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

550. By the late 19th century, India was one of the largest producers and exporters of
(a) cotton yarn and wheat
(b) sugar and rice
(c) sugar and alcohol
(d) iron and steel
Ans: (a)

551. The average fixed cost curve will always be
(a) a rectangular hyperbola
(b) a downward sloping convex to the origin
(c) a downward sloping straight line
(d) a U-shaped curve
Ans: (c)

552. The production function of a firm will change whenever
(a) input price changes
(b) the firm employs more of any input
(c) the firm increases its level of output
(d) the relevant technology changes
Ans: (a)

Part 6 RBI & Monetary System
553. Which of the following measures would result in an increase in the money supply in the economy?
1. Purchase of government securities from the public by the Central Bank.
2. Deposit of currency in commercial banks by the public.
3. Borrowing by the government from the Central Bank.
4. Sale of government securities to the public by the Central Bank. Select the correct answer using the codes given below
(a) Only 1 (b) 2 and 4
(c) 1 and 3 (d) 2, 3 and 4
Ans: (c)

554. The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below
(a) Only 2
(b) 1 and 2
(c) 2 and 3
(d) All of the above
Ans: (b)

555. Which one of the following laws stated that bad money drives out good if their exchange rate is set by law?
(a) Gresham’s law (b) Gilbert’s law
(c) Keynes’ law (d) Kuznet’s law
Ans: (a)

556. Consider the following sources
1. Net bank credit to the government.
2. Bank credit to the commercial sector.
3. Net foreign exchange assets of the banking systems.
Which of the sources given above is/are the major sources of the ‘Broad Money’ in the India economy?
(a) Only 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

557. Rise in the price of a commodity means
(a) rise in the value of currency only.
(b) fall in the value of currency only.
(c) rise in the value of commodity only.
(d) fall in the value of currency and rise in the value of commodity.
Ans: (b)

558. Consider the following statements with regard to SLR
1. To meet SLR, commercial banks can use cash only.
2. SLR is maintained by the banks with themselves.
3. SLR restricts the banks leverage in pumping more money into the economy.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (c)

559. Which one of the following is emerged as a major instrument of Monetary Policy in the Indian economy?
(a) Liquidity Adjustment Facility
(b) Commercial Papers
(c) Treasury Bills
(d) None of the above
Ans: (a)

560. Consider the following statements The price of any currency in international market is decided by the
1. World Bank.
2. demand for goods/services provided by the country concerned.
3. stability of the government of the concerned country.
4. economic potential of the country in question.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 2 and 3
(c) 3 and 4 (d) 1 and 4
Ans: (b)

561. The Reserve Bank of India regulates the commercial banks in matters of
1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding-up of banks Select the correct answer using the codes given below
(a) 1 and 4
(b) 2, 3 and 4
(c) 1, 2 and 3
(d) 1, 2, 3 and 4
Ans: (d)

562. Which one of the following is the composition of Liquidity aggregate-2 (L2) other than Liquidity aggregate-1 (L1) in the Indian Monetary System?
(a) Term deposits with Term Lending Institutions and Refinancing Institutions
(b) Term Borrowing by Refinancing Institutions
(c) Certificates of Deposit issued by Refinancing Institutions
(d) All of the above
Ans: (d)

563. Which one among the following is the precious metal (Gold) or other approved securities that a commercial bank must maintain as reserves other than the cash with RBI?
(a) Cash Reserve Requirement
(b) Statutory Liquidity Requirement
(c) Forward Fund
(d) Reserve Money
Ans: (b)

564. Which one among the following is the globally traded currency that can serve as a reliable and stable store of value?
(a) Soft Currency
(b) Broad Currency
(c) Local Currency
(d) Hard Currency
Ans: (d)

565. With reference to Indian economy, consider the following
1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue
Which of the given is/are component (s) of Monetary Policy ?
(a) Only 1 (b) 2, 3 and 4
(c) 1 and 2 (d) 1, 3 and 4
Ans: (c)

566. Consider the following statements
1. Reserve Bank of India was nationalised in the year 1955.
2. Reserve Bank of India is a member bank of the Asian Clearing Union.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

567. Supply of money regaining the same when there is an increase in demand for money, there will be
(a) a fall in the level of prices
(b) an increase in the rate of interest
(c) a decrease in the rate of interest
(d) an increase in the level of income and employment
Ans: (b)

568. Consider the following statements
1. Reserve Bank of India can print and issue currency notes of denominations from two rupee notes to ten-thousand rupee notes.
2. Reserve Bank of India maintains a separate issue department to look after currency issue.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

569. 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)

570. With reference to inflation in India, which of the following statements is correct ?
(a) Controlling the inflation in India is the responsibility of the government of India only.
(b) The Reserve Bank of India has no role in controlling the inflation.
(c) Decreased money circulation helps in controlling the inflation.
(d) Increased money circulation helps in controlling the inflation.
Ans: (c)

571. When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen ?
(a) India’s GDP growth rate increases drastically.
(b) Foreign Institutional Investors may bring more capital into our country.
(c) Scheduled Commercial Banks may cut their lending rates.
(d) It may drastically reduce the liquidity to the banking system.
Ans: (c)

572. With reference to Fiat Money, consider the following statements
1. It is the money declared by a government to be legal tender.
2. It is themoney without intrinsic value.
3. It is the state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) Only 1
(c) Only 2 (d) All of these
Ans: (d)

573. Which one of the following is the custodian of Foreign Exchange Reserve of the Indian Government?
(a) Security Exchange Board of India
(b) Insurance Regulatory Development Authority
(c) Reserve Bank of India
(d) None of the above
Ans: (c)

574. Consider the following statements
1. Liquidity Adjustment Facility operations help the RBI effectively transmit interest rate signals to the market.
2. Under the repo or repurchase option, banks borrow money from the RBI via the sale of securities with an agreement to purchase the securities back at a fixed rate at a future date.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

575. Which one of the following issues the currency notes and coins of one rupee and lower denomination in India?
(a) SBI
(b) RBI
(c) Government of India
(d) Ministry of Finance
Ans: (d)

576. Consider the following statements
1. Buying and selling of the eligible securities by Reserve Bank of India is an important feature of the open market operation.
2. Open market operation influences the volume of loans and advances made by the commercial banks in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

577. Which one among the following is correct about the money whose value comes from a commodity out of which it is made?
(a) Fiat money
(b) Commodity money
(c) Near money
(d) Electronic money
Ans: (b)

578. Consider the following
1. New Broad Money (NM3)
2. New Narrow Money
3. All Deposits with the Post Office Savings Banks
4. National Savings Certificates
Which of the components given above are correct included in the Liquidity Aggregates (L1) in the Indian Economy?
(a) 1, 2, 3 and 4 (b) 2 and 3
(c) 1 and 3 (d) 2 and 4
Ans: (c)

579. Consider the following measures
1. Repo Rate
2. Cash Reserve Requirement
3. Reverse Repo Rate
Which of the measures given above is/are major instrument(s) used in the Liquidity Adjustment Facility (LAF)?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (b)

580. Which one of the following money supplies is also known as Narrow Money in the Indian economy?
(a) M1 (b) M2
(c) M3 (d) M4
Ans: (a)

581. Which of the following is/are examples of ‘Near Money’?
1. Treasury bill
2. Credit card
3. Savings accounts and small time deposits
4. Retail money market mutual funds Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) 1, 2 and 3 (d) 1, 3 and 4
Ans: (d)

582. Consider the following statements about the Reserve Requirements
1. Reserve requirement can be used as an instrument of monetary policy.
2. Required reserve ratio is used as a tool to influence the country’s borrowing and interest rates.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

583. Which one among is correct about the Sucre Currency in the world economy?
(a) It is a proposed regional currency for the Eastern European Union.
(b) It is a proposed regional currency for the South Asian Association of Regional Cooperation (SAARC).
(c) It is a proposed regional currency for the Bolivarian Alliance for the Americas (ALBA).
(d) None of the above
Ans: (c)

584. Convertibility of rupee implies
(a) being able to convert rupee notes into gold.
(b) allowing the value of rupee to be fixed by market forces.
(c) freely permitting the conversion of rupee to other currencies and vice – versa.
(d) developing an international market for currencies in India.
Ans: (c)

585. Which of the following is/are the selective credit control measures of RBI ?
1. Cash Reserve Ratio
2. Statutory Liquidity Ratio
3. Margin requirements
4. Moral suasion Choose the correct answer using the codes given below
(a) 1 and 2 (b) 3 and 4
(c) Only 4 (d) All of these
Ans: (b)

586. The RBI was established on 1st April, 1935 on the recommendation of
(a) Khandwal Commission
(b) Narasimham Commission
(c) Nachiket Mor Commission
(d) Hilton Young Commission
Ans: (d)

587. Which one among the following is correct about the Repo Rate in the Indian Economy?
(a) It is the rate at which banks borrow funds from the RBI.
(b) It is the rate at which banks park their funds with the Central Bank.
(c) It is the difference in the prices of repurchase of the bills from the original prices.
(d) Both ‘a’ and ‘c’.
Ans: (d)

588. With reference to Gilt-edge Securities, consider the following statements
1. It is a long-term fixed-rate bonds.
2. It is very sensitive to changes in interest rates.
3. It is less demanding in the market than the private commercial papers.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 2 and 3
(c) Only 2 (d) All of these
Ans: (d)

589. Consider the following statements about Sinking Fund
1. It is a method of repayment of public debt.
2. It is created by the government out of budgetary revenues every year.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of these
Ans: (a)

590. Consider the following objectives
1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in government securities.
3. To ensure solvency of banks.
Which of the objectives given above are the main objectives of the Statutory Liquidity Requirements (SLRs)?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

591. Which one of the following is the type of currency whose value may depreciate rapidly or that is difficult to convert into other currencies?
(a) Hard currency
(b) Soft currency
(c) Fiat currency
(d) Alternative currency
Ans: (b)

592. Consider the following repo options
1. Term repo option refers to a repo with a specified end date in the money market.
2. Overnight repo option has a one-day maturity transaction period in the money market.
3. Open repo option has no end date.
Which of the repo rates given above is/are correct?
(a) Only 1 (b) 1 and 3
(c) 2 and 3
(d) All of the above
Ans: (d)

593. Consider the following statements
1. In India, the Cash Reserve Requirement is between 3 to 15% of the total demand and time deposits of the commercial banks.
2. In India, the Statutory Liquidity Requirement is not less than 25% of the total demand and time deposits of the commercial banks.
Which of the statements given above is/are correct about the General Credit Control measures used by the RBI?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

594. Consider the following roles
1. Bank of issue
2. Controller of credit
3. Supervision to bring sound banking
4. Banker to government
Which of the roles given above are the functions or roles of the Reserve Bank of India?
(a) 1 and 2 (b) 1 and 3
(c) 1, 2 and 4 (d) All of these
Ans: (d)

595. Consider the following statements
1. During inflation, RBI increases the Cash Reserve Ratio.
2. During deflation , RBI increases the cash Reserve Ratio.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) None of them
Ans: (a)

596. Consider the following statements
1. The printing of notes is the total management of Reserve Bank of India.
2. The volume of rupee coins and smaller coins are controlled by the Ministry of Finance.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

597. What are the scheme to reduce interest burden of the State Government in India through gradual conversion of high cost debt into a low cost debt is known as?
(a) Debt-swap scheme
(b) Debt-write off scheme
(c) Grants-in-aid scheme
(d) Debt consolidation scheme
Ans: (a)

598. Consider the following transactions
1. Payment between Nepal and India.
2. Payment between Bhutan and India.
Which of the payments given above is/are the payments not eligible for settlement though the Asian Clearing Union?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

599. Match List I with List II and select the correct answer using the codes given below
List I (Committees) List II (Chaired by)
A. Balance of Payments and Foreign Investment 1. Rakesh Mohan
B. Public Sector Enterprise Autonomy 2. Arjun Sen Gupta
C. Small Scale Industries 3. Rangaranjan
D. Infrastructure Development 4. Abid Hussain
Codes A B C D A B C D
(a) 2 4 3 1 (b) 3 2 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (b)

600. Which one of the following is the correct sequence of the countries having Foreign Exchange Reserve from high to low?
(a) China – Russia – India – France
(b) China – France – India – Russia
(c) France – China – Russia – India
(d) France – China – India – Russia
Ans: (a)

601. Who was the first Governor of RBI ?
(a) CD Deshmukh
(b) Sir James Taylor
(c) PC Bhattacharya
(d) Sir Osbornesmith
Ans: (d)

602. Where is India’s modernised currency notes press situated ?
(a) Nasik (b) Mysore
(c) Hoshangabad (d) Hyderabad
Ans: (b)

603. Consider the following statements
1. Good money is money that shows little difference between its face value of the coin and its commodity value.
2. Bad money is money that has a commodity value considerably less than its face value.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

604. Which one the following is the proposed currency of the Gulf Cooperation Council (GCC)?
(a) Khaleeji (b) Sucre
(c) Minar (d) None of these
Ans: (a)

605. Which of the following would include Foreign Direct Investment in India?
1. Subsidiaries of companies in India.
2. Majority foreign equity holding in Indian companies.
3. Companies exclusively financed by foreign companies.
4. Portfolio investment. Select the correct answer using the codes given below
(a) 1, 2, 3 and 4 (b) 2 and 4
(c) 1 and 3 (d) 1, 2 and 4
Ans: (d)

606. A foreign-exchange agreement between two parties to exchange the principal and/or interest payments of a loan for equivalent aspects of an equal in net present value loan in the form of each other’s currency is known as
(a) debt swap
(b) currency swap
(c) interest swap
(d) principal swap
Ans: (d)

607. Consider the following kinds of credit controls
1. Minimum margins for lending against specific securities
2. Ceiling on the amounts of credit for certain purposes
3. Discriminatory rate of interest charged on certain types of advances
Which of the credit controls given above are used by RBI as a selective credit control measures?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

608. Consider the following statements
1. Bank Rate is the rate at which RBI lends to the commercial banks through its discount window to help the banks meet depositor’s demands and reserve requirements.
2. Bank Rate imposed by the RBI is stable and not changes with the market conditions.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

609. Consider the following components
1. Notes in circulation
2. Circulation of rupee coins
3. Circulation of small coins
4. Cash on hand with banks
Which of the components given above is/are part of the currency with the public?
(a) Only 2 (b) 1, 2 and 3
(c) 2, 3 and 4 (d) All of these
Ans: (d)

610. After a gap of over 20 years, ` 1 note has been released in the country and it bears the signature of
(a) Finance Secretary
(b) RBI Governor
(c) Prime Minister
(d) Speaker
Ans: (a)

611. Which one of the following is the component of the deposit money with the public?
(a) Demand deposits of banks
(b) Time deposits with banks
(c) Other deposits with RBI
(d) Both ‘a’ and ‘c’
Ans: (d)

612. Which one among the following is the total amount of money available in an economy at a specific time?
(a) Near money (b) Narrow money
(c) Money volume (d) Money stock
Ans: (d)

613. Which one of the following is the major component of the money supply in the Indian Economy?
(a) Currency component
(b) Deposit component
(c) Treasury bills with public
(d) Both ‘a’ and ‘b’
Ans: (d)

614. Consider the following statements
1. The rupee coin and half-rupee coins have unlimited legal tenders.
2. The subsidiary coins also have unlimited legal tenders.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

615. Which one of the following money supplies in the Indian economy consist the total post office savings?
(a) M1 (b) M2
(c) M3 (d) M4
Ans: (d)

616. Consider the following money supplies
1. Narrow money
2. Saving deposits in the post office
3. Time deposits of the public with bank
4. Total post office savings
Which of the money supplies given above are the major components of the Broad Money?
(a) 1, 2 and 3 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) 2 and 4
Ans: (a)

617. Consider the following statements
1. Sectoral currency is a form of complementary currency that is restricted to a specific sector.
2. Digital gold currency is a form of electronic money based on ounces of gold.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

618. Which one of the following agencies given below has started the RESIDEX in India?
(a) NHB (b) ICICI bank
(c) HDFC (d) None of these
Ans: (a)

619. Consider the following statements
1. Repo bills are typically short-term bills.
2. Repo bills are not unusual to see with a maturity as long as two years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

620. Which one among the following is the ratio to determine the ‘Money Deepening’ of an economy?
(a) Ratio of average M3 to GDP
(b) Ratio of average M3 to M1
(c) Average ratio of M to M0
(d) Both ‘b’ and ‘c’
Ans: (a)

621. Consider the following statements
1. The rank of India in International Monetary Fund (IMF) is 13th is the list.
2. China ranks second just after the United States in the quota terms of IMF.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

622. Which one of the following pairs is correctly matched?
(a) M0 : Reserve Money
(b) M1 : Broad Money
(c) M2 : Narrow Money
(d) None of the above
Ans: (a)

623. Which one among the following is the source of the Reserve Money (M0) in India?
(a) Net foreign exchange assets of RBI
(b) Government’s currency liabilities to the public
(c) Net non-monetary liabilities of the RBI
(d) All of the above
Ans: (d)

624. Foreign Exchange Reserves are accumulated when there is absorption of the excess foreign exchange flows by the RBI through intervention in foreign exchange markets. Which of the following currency is used by the RBI as an intervention currency?
(a) US Dollar (b) Euro
(c) Japanese Yen (d) Both ‘a’ and ‘b’
Ans: (d)

625. Which one among the following is used to determine the monetisation of the economy?
(a) The ratio of average M1 to GDP
(b) The ratio of average M3 to GDP
(c) The ratio of average M3 to M0
(d) The ratio of average M1 to M0
Ans: (a)

626. Consider the following elements
1. Broad Money (M3)
2. All deposits with Post Office Savings Banks
3. National Savings Certificates
Which of the elements given above are the parts of the M4 -Money Supply in Indian Economy?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (a)

627. The Reserve Bank of India has initiated publication of a new set of monetary and liquidity aggregates as per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation. Then, which one of the following money supplies in India is remained unchanged as that of the old definitions?
(a) M0
(b) M1
(c) M3
(d) Both M0 and M1
Ans: (d)

628. On which of the following committee’s recommendation, RBI introduced base rate system?
(a) MV Nair Committee
(b) Deepak Mohanty Committee
(c) Khandewal Committee
(d) Nachiket Mor Committee
Ans: (b)

629. The higher rate of expansion in currency with the public and reserves as compared to that in deposits in an economy leads to
(a) the money multiplier remains unchanged
(b) increases at the first then decreases later on
(c) an increase in the money multiplier
(d) a decrease in the money multiplier
Ans: (d)

630. Consider the following
1. Currency in Circulation.
2. Bankers’ deposits with the RBI.
3. Call/Term Funding from Financial Institutions.
4. ‘Other’ deposits with the RBI.
Which of the components given above is/are included in the calculation of Reserve Money in India?
(a) 1 and 2 (b) 2, 3 and 4
(c) 1, 2 and 4 (d) Only 2
Ans: (c)

631. Which one of the following is used to determine the Money Multiplier in an economy?
(a) M3/M2 (b) M0/M3
(c) M1/M3 (d) M3/M0
Ans: (d)

632. Consider the following statements
1. During inflation, RBI buys government securities in the open market.
2. During deflation, RBI sells government securities in the open market.
Which of the above statements is/are true?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) None of the above
Ans: (d)

633. Which one of the following is the main composition of the New Broad Money (NM3) as per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation?
1. Narrow Money
2. Short-term time deposits of residents maturing at one year
3. Long-term time deposits of residents
4. Term Funding from Financial Institutions Select the correct answer using the code given below
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) All of the above
Ans: (d)

634. With the aim of containing inflation and anchoring inflationary expectations, recent time, Reserve Bank of India actively managed liquidity through the appropriate use of which one of the following?
(a) Liquidity Adjustment Facility
(b) Interest Subvention
(c) Open Market Operations
(d) Both ‘a’ and ‘c’
Ans: (d)

635. Consider the following
1. Normal ways and means advances are clean and without the pledge of the Union Government.
2. Special ways and means advances are secured advances provided against the dated securities and pledge of Government of India.
Which of the statements given above is/are correct about the ways and means advances made by the Reserve Bank of India?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

636. Which one of the following is the mechanism used by Reserve Bank of India (RBI) under its credit policy by which provides to the States banking with it to help them to tide over temporary mismatches in the cash flow of their receipts and payments?
(a) State Liquidity Adjustment Facility
(b) Cash Reserve Requirement
(c) Liquidity Adjustment Facility
(d) Ways and means advances
Ans: (d)

637. Consider the following objectives
1. To secure regional co-operation as regards the settlement of monetary transactions among the members of the Union.
2. To provide a system for clearing payments among the member countries on a multilateral basis.
Which of the objectives given above is/are the primary objective of Asian Clearing Union (ACU)?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

638. Foreign currency which has a tendency of quick migration is called
(a) Hot currency (b) Gold currency
(c) Soft currency (d) Hard currency
Ans: (a)

639. Consider the following functions of the LAF in Indian Monetary Policy
1. It influences the volume of liquidity in the money market.
2. It stabilises the short-term rate of interest or the call rates.
Which of the functions given above is/are the main functions of the LAF?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

640. Which one of the following is correct about the ‘Commercial Papers (CPs)’ in the Indian money market?
(a) It is issued by Indian Commercial Banks
(b) It is issued by the Central Government
(c) It is issued by the companies with a net worth more than 5 crore
(d) It is issued by the companies with a net worth less than 50 lakh
Ans: (c)

641. Which of the following constitutes reserve money ?
1. Currency in circulation
2. Banker’s deposits with RBI
3. Other deposits with RBI
4. Office savings of Banks
5. Call/Term funding from financial institutions Choose the correct answer using the codes given below
(a) 2, 3 and 5 (b) 1, 4 and 5
(c) 1, 2 and 3 (d) All of these
Ans: (c)

642. The Central Banks of a country is the member of the Asian Clearing Union (ACU). Which one of the following countries is not the member of the ACU?
(a) Bangladesh (b) Bhutan
(c) Myanmar (d) Thailand
Ans: (d)

643. Consider the following instruments
1. Credit Monitoring Arrangement
2. Credit Authorisation Scheme
3. Cash Reserve Requirement
4. Statutory Liquidity Requirement
Which of the instruments given above are used in the Selective Credit Control in India?
(a) 1, 2 and 3 (b) 1, 2 and 4
(c) 2 and 3 (d) 1 and 2
Ans: (d)

644. Which one of the liquidity aggregates as per the recommendations of the Working Group on Money Supply: Analytics and Methodology of Compilation, includes the Public Deposits of Non-banking Financial Companies?
(a) L1 (b) L2
(c) L3 (d) None of these
Ans: (c)

645. Consider the following statements
1. Among liquidity aggregates, the data on L1 and L2 are publishedmonthly by the Reserve Bank of India.
2. Data on Reserve Money (M0) in India is published by the Commercial Banks.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

646. Which one of the following rates is the rate at which banks park their funds with the Central Bank?
(a) Repo Rate
(b) Bank Rate
(c) Prime Lending Rate
(d) Reverse Repo Rate
Ans: (d)

647. Which one of the following is not a qualitative control of credit by the Central Bank of a country?
(a) Rationing of credit
(b) Regulation of consumer credit
(c) Variation of the reserve ratio
(d) Regulation of margin requirements
Ans: (b)

648. Consider the following elements
1. New Broad Money (NM3).
2. All Deposits with the Post Office Savings Banks.
3. National Savings Certificates.
4. Term deposits with Term Lending Institutions and Refinancing Institutions (FIs) .
5. Term Borrowing by FIs.
6. Certificates of Deposit issued by FIs.
7. Public Deposits of Non-banking Financial Companies.
Which of the elements given above are the major components of Liquidity Aggregate-3 (L3) of the Indian Monetary policy?
(a) 1, 3, 4 and 6
(b) 1, 2, 4, 5, 6 and 7
(c) 1, 2, 3, 4, 5 and 7
(d) All of the above
Ans: (b)

649. Which of the following denominations of Bank notes mint in the Dewas Bank Notes Press usually ?
1. 10 2. 20 3. 50
4. 100 5. 500 6. 1000 Choose the correct answer using the codes given below
(a) 1, 2, 3 and 4 (b) 3, 4, 5 and 6
(c) 2, 3, 4 and 5 (d) All of these
Ans: (c)

650. Gilt-edged means
(a) bullion market
(b) market of Government securities
(c) market of guns
(d) market of pure metals
Ans: (b)

651. Which one of the following agencies of the Indian Government publishes the Narrow Money (M1) and Broad money (M3) on fortnightly basis?
(a) State Bank of India
(b) Security Exchange Board of India
(c) Reserve Bank of India
(d) Central Statistical Organisation
Ans: (c)

652. Consider the following statements
1. Liquidity aggregates (L3) is disseminated once in a quarter in the Indian Monetary System.
2. Among liquidity aggregates, data on L1 and L2 are published monthly by the Indian Government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

653. In the parlance, of financial investments, the term ‘bear’ denotes
(a) an investor who feels that the price of a particular security is going to fall.
(b) an investors who expects the price of a particular shares to rise.
(c) a shareholder on a bondholder who has an interest in a company, financial or otherwise.
(d) Any lender whether by making a loan or buying a bond.
Ans: (a)

654. Consider the following statements
1. Reserve Bank of India (RBI) was established in 1935.
2. The share capital RBI was divided into shares of 100 each which was entirely owned by private shareholders in the beginning.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

655. Which one of the following is traded only in a small area and the currency is not backed by a national government and necessarily legal tender?
(a) Local currency
(b) Soft currency
(c) Commodity currency
(d) None of the above
Ans: (a)

656. Consider the following statements
1. The repo rate is the rate at which other banks borrow from the RBI.
2. A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

657. Select the All India Financial Institutions (AFFI’s) currently regulated by the RBI from the given list, using the codes:
1. Exim Bank 2. NHB
3. NABARD
Codes
(a) 1 and 2 (b) 2 and 3
(c) 1 and 3 (d) 1, 2 and 3
Ans: (d)

658. Under which of the following circumstances may ‘capital gains’ arise?
1. When there is an increase in the sales of a product.
2. When there is a. natural increase in the value of the property owned.
3. When you purchase a painting and there is a growth in its value due to increase in its popularity. Select the correct answer using the codes given below
(a) Only 1 (b) 2 and 3
(c) Only 2 (d) 1, 2 and 3
Ans: (b)

659. If the Cash Reserve Ratio is lowered by the RBI, its impact on credit creation will be to
(a) increase it (b) decrease it
(c) no impact (d) None of these
Ans: (a)

660. If all the banks in an ecomony are nationalised and converted into monopoly banks, the total deposits
(a) will decrease (b) will increase
(c) Neither increase nor decrease
(d) None of the above
Ans: (a)

661. Select the incorrect one in the conditions of depreciating rupee from the give list of the situations
(a) Exports become competitive in the global market
(b) Import substitution becomes impossible
(c) Costlier imports results into higher prices propelling further depreciation
(d) Both ‘a’ and ‘b’
Ans: (b)

662. Final decision of printing currency in India rests with the
(a) RBI
(b) Ministry of Finance
(c) Cabinet Committee on Economic Affairs
(d) Both ‘a’ and ‘b’
Ans: (b)

663. If the RBI decides to adopt an ‘expansionist’ monetary policy, which of the following it would not do?
1. Cut CRR and optimise SLR
2. Increase MSFR (Marginal Standing Facility Rate)
3. Cut bank rate and increase Reverse Repo Rate
(a) 1 and 2 (b) Only 1
(c) 2 and 3 (d) Only 2
Ans: (d)

664. Consider the following statements regarding India’s Minimum Reserve system and select the incorrect one/one’s using the codes given below
1. In minimum reserve system, RBI had to keep a minimum reserve of gold worth ` 115 crore and rest in Indian rupees.
2. The minimum requirement of foreign securities was diluted when minimum reserve system was launched.
(a) Only 1 (b) Only 2
(c) 1 and 2 (d) Neither 1 nor 2
Ans: (c)

665. When the RBI reduces statutory liquidity Ratio by 50 basis points, which of the following is likely to happen?
(a) India’s GDP growth rate increases radically
(b) Foreign institutional investors may bring more capital into our country.
(c) Scheduled commercial Banks may cut their lending rates.
(d) It may drastically reduce the liquidity to the banking system.
Ans: (c)

666. Which one of the following currencies is used by RBI to construct the Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate (REER) of Indian Currency?
(a) Japanese Yen
(b) Chinese Renminbi
(c) Pound Sterling
(d) All of the above
Ans: (d)

667. The monetary and credit policy is announced by which of the following ?
(a) Ministry of Finance in Centre
(b) RBI
(c) SBI
(d) Planning Commission
Ans: (b)

668. The Government of India and RBI have decided to introduce 1 billion pieces of ` 10 notes in polymer / plastic on a field trial basis. Which of the following is or are the objectives behind this move?
1. Increase of the lifetime of the notes
2. Combating counterfeiting
3. Reducing cost of minting of currency. Select the correct answer using the codes given below
(a) 1 and 2 (b) Only 2
(c) Only 3 (d) All of these
Ans: (d)

669. Consider the following statements.
1. Bank rate is the rate of interest which RBI charges its clients on their short term borrowing.
2. Repo rate is the rate of interest which RBI charges its clients on their long term borrowing.
Which of the statements given above is/are correct ?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

Part 7 Banking System
670. The basic aim of Lead Bank Scheme is that
(a) big banks should try to open offices in each district
(b) there should be stiff competition among the various nationalized banks
(c) individual banks should adopt particular districts for intensive development
(d) all the banks should make intensive efforts to mobilize deposits
Ans: (c)

671. Which of the following are the associates of State Bank of India ?
1. State Bank of Hyderabad
2. State Bank of Mysore
3. State Bank of Tamil Nadu
4. State Bank of Travancore Choose the correct answer using the codes given below
(a) 1, 2 and 4 (b) 3 and 4
(c) 1 and 2 (d) All of these
Ans: (a)

672. With reference to Indian commercial banks Consider the following statements
1. The base rate system for the interest of the commercial banks was introduced in 2010.
2. The base rate system has enabled a more informed assessment of the transmission of monetary policy impulses to banks’ lending rates.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

673. Consider the following statements
1. In India, the minimum denomination coin acceptable for transaction is 50 paise.
2. Coin below 50 paise is not a legal tender for payment.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

674. With reference to Indian economy, consider the following statements
1. Service Area Approach programme was started in the late nineties.
2. Service Area Approach was devised to bring economic growth in the assigned specific semi-urban and rural areas.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

675. Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment Select the correct answer using the codes given below
(a) 1, 2 and 3 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) 1, 3 and 4
Ans: (b)

676. When did the Lead Bank Scheme to reduce the developmental gap between different regions of the country launched in India?
(a) Towards the end of First Five Year Plan
(b) Towards the close of the Second Five Year Plan
(c) Towards the close of the Plan Holiday in Indian economy
(d) Towards the end of the Eight Five Year Plan
Ans: (c)

677. Consider the following statements
1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly owned subsidiary of the RBI.
2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1and 2
(d) Neither 1 nor 2
Ans: (c)

678. Which one of the following is the main objective of the Service Area Approach Programme launched in India?
(a) To accelerate the process to open bank branches in the urban areas
(b) To devise a new strategy for rural lending to bring economic growth in rural areas
(c) To formulate new devise to enhance the transparency and functioning of bank branches
(d) Both ‘a’ and ‘c’ are correct
Ans: (b)

679. Which of the following terms indicates a mechanism used by commercial banks for providing credit to Government?
(a) Cash Credit Ratio
(b) Debt Service Obligation
(c) Liquidity Adjustment Facility
(d) Statutory Liquidity Ratio
Ans: (d)

680. When the Reserve Bank of India announced an increased of the Cash Reserve Ratio (CRR), what does it means?
(a) The commercial banks will have less money to lend
(b) The Reserve Bank of India will have less money to lend
(c) The Union Government will have less money to lend
(d) None of the above
Ans: (a)

681. Consider the following statements
1. Indian money market is the market of short-term funds.
2. Number of the private sector banks are more in than the public sector banks of the Indian scheduled commercial bank.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

682. Consider the following statements
1. Integrated Rural Development Programme (IRDP) was launched to lift the target groups above the below poverty line.
2. The IRDP was started as an initiative of the Lead Bank Scheme to create additional employment opportunities in rural areas.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

683. Consider the following statements
1. Primary Agricultural Credit Societies are the grass-root level arms of the short-term cooperative credit structure.
2. Primary Agricultural Credit Societies can be started with ten or more people belonging to a village.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

684. Which of the following is not the function of Reserve Bank of India?
(a) Provide Credit facility to the general public
(b) Keep government money in various account heads
(c) Frame Monetary and Credit Policy
(d) All are RBI’s functions
Ans: (a)

685. Which one of the following is the basic objective for the setting up of Regional Rural Banks (RRBs) in India?
(a) Development of more diverse banking systems in Indian money market
(b) Diversification of scheduled commercial banking systems in India to tap the deposit potential of rural areas
(c) Development of rural area by providing credits to agriculture, trade, commerce and other productive activities in rural areas
(d) Both ‘a’ and ‘b’
Ans: (c)

686. Which one of the following is the correct description about the Bank Rate in the Indian Money market?
(a) Rate of interest charged by commercial banks fromthe borrowers
(b) Rate of interest which commercial banks discounted bills of their borrowers
(c) Rate of interest allows by commercial banks on their deposits
(d) Rate at which RBI purchase or rediscounts bill of exchange of commercial banks
Ans: (d)

687. Which one of the following States had started the Central Land Development Banking System for the first time in India?
(a) Chennai, Tamil Nadu
(b) Pune, Maharashtra
(c) Baroda, Gujarat
(d) Bengaluru, Karnataka
Ans: (a)

688. Which one of the following is correctly matched?
Bank Headquarters
1. Federal Bank : Kerala Limited
2. Dhanlaxmi : Maharashtra Bank Limited
3. Industrial Bank : Delhi Limited Select the correct answer using the codes given below
(a) 1 and 2 (b) Only 2
(c) 2 and 3 (d) Only 1
Ans: (a)

689. Match List I (Banks) with List II (Headquarters) and select the correct answer using the codes given below the lists
List I List II
A. Allahabad Bank 1. Delhi
B. Central Bank of India 2. Kolkata
C. Indian Overseas Bank 3. Mumbai
D. Punjab National Bank 4. Chennai
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (b)

690. Government of India, for the first time nationalised 14 large commercial banks in the year
(a) 1956 (b) 1959 (c) 1969 (d) 1963
Ans: (c)

691. With reference to Cooperative Credit Structure of the Indian economy, consider the following statements
1. Central Cooperative Bank is the federation of the primary agricultural Credit Societies in a specified area.
2. State Cooperative banks form the apex of the Cooperative Credit Structure.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

692. Which among the following is an asset for a commercial bank?
(a) Credit to farmers
(b) Deposit of public
(c) Borrowings from RBI
(d) Demand deposits of industries
Ans: (c)

693. With reference to RRBs, consider the following statements
1. Regional Rural Banks (RRBs) are the Scheduled Commercial Bank in Indian Banking System.
2. Regional Rural Banks in India are established in the Fifth Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

694. Which of the followings committees has given its recommendations on ‘Financial Inclusion’?
(a) Rakesh Mohan Committee
(b) Rangarajan Committee
(c) Sinha Committee
(d) Kelkar Committee
Ans: (b)

695. Which one of the following agencies funded for the adoption of indigenous technology and previously imported technology in the Indian economy?
(a) Mutual funds
(b) Insurance funds
(c) Venture capital funds
(d) Retail banking
Ans: (c)

696. Consider the following statements
1. Scheduled Commercial Banks are those which have been included in the First Scheduled of RBI Act, 1934.
2. Non-scheduled Commercial Banks are those which have been included in the Second Scheduled of RBI Act,1934.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

697. With regards to Scheduled Commercial Banks, consider the following statements about Regional Rural Banks (RRBs) in India
1. RRBs are limited to a specific region comprising one or more districts of a State.
2. RRBs grant direct loans and advances only to small and marginal farmers.
3. The lending rate of the RRBs is always less than the prevailing rates of Indian Commercial Banks.
4. RRBs are functioned under the supervision of Security Exchange Board of India.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (b)

698. The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called
(a) SLR (b) CBR
(c) SBR (d) CRR
Ans: (d)

699. Consider the following statements
1. In Indian Commercial Banking System, the number of the Non-scheduled Bank is more than the Scheduled Banks.
2. The Non-Scheduled Banks in Indian Commercial Banking System are even less than a dozen in number.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

700. Which of the following is not a part of Schedule Banking Structure in India?
(a) Money lenders
(b) Public Sectors Banks
(c) Private Sectors Banks
(d) State Co-operative Banks
Ans: (a)

701. With reference to Indian economy, consider the following statements
1. The Lead Bank Scheme was started towards the close of 1980.
2. The Lead Bank Scheme was aimed to bring a balanced regional development in the country.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

702. What is Repo Rate?
(a) It is the rate at which RBI sells government securities to banks.
(b) It is the rate at which RBI buys government securities from banks.
(c) It is the rate at which RBI allows small loan in the market.
(d) None of the above
Ans: (b)

703. Which one of the following banks can be included in the Scheduled Commercial Banking System of India?
(a) Regional Rural Banks
(b) Private Sector Banks
(c) Foreign Banks in India
(d) All of the above
Ans: (d)

704. Open market operations of Reserve Bank of India refers to
(a) trading in securities
(b) auctioning of foreign exchange
(c) transaction in gold
(d) None of the above
Ans: (a)

705. Which one of the following committee was constituted by the RBI to study issues and concerns in the micro-finance sector?
(a) M Narsimham Commitee
(b) S Janikiraman Committe
(c) Chakarvarti Committee
(d) YH Malegam Committee
Ans: (d)

706. In India, the interest rate on saving accounts in all nationalised banks is fixed by
(a) Union Minister of Finance
(b) Union Finance Commission
(c) Indian’s Banker Association
(d) None of the above
Ans: (d)

707. With reference to India consider the following
1. Nationalisation of banks
2. Formation of Regional Rural Banks
3. Adoption of village by bank branches
Which of the statements given above are correct about the Indian banking System?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) 1, 2 and 3
Ans: (d)

708. Which of the following is the most important component of the liabilities of commercial bank in India?
(a) Time deposits
(b) Demand deposits
(c) Inter-bank liabilities
(d) Other borrowings
Ans: (a)

709. As we all know, Indian money market is divided in three sectors, namely organised sector, unorganised sector and co-operative sectors. Call money market is the part of which of the following?
(a) Organised sector
(b) Unorganised sector
(c) Co-operative sector
(d) All of the above
Ans: (a)

710. Consider the following liquid assets
1. Demand deposits with the banks
2. Time deposits with the banks
3. Savings deposits with the banks
4. Currency The correct sequence 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)

711. The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to
(a) banking operations
(b) communication networking
(c) military strategies
(d) supply and demand of agricultural products
Ans: (a)

712. Priority sector lending by banks in India constitutes the lending to
(a) agriculture
(b) micro and small enterprises
(c) weaker sections
(d) All of the above
Ans: (d)

713. Consider the following statements
1. Foreign banks are allowed to operate in India through branches and representative offices only.
2. The largest branch network of foreign banks in India is the Standard Chartered Bank.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

714. Shishu, Kishor and Tarun are the schemes of
(a) Regional Rural Banks
(b) Micro Units Development and Refinance Agency Limited (MUDRA)
(c) Small Industries Development Bank of India
(d) Industrial Development Bank of India
Ans: (b)

715. Which among the following is/are recommended by the Basel accord?
1. Banking
2. Regulations with regard to capital risk
3. Regulations with regard tomarket risk
4. Regulations with regard to operational risk Choose the correct answer from the codes given below
Codes
(a) Only 1 (b) 2 and 3
(c) 2, 3 and 4 (d) All of these
Ans: (d)

716. Consider the following criteria with regards to the allotment of different districts to Indian banks under the Lead Bank Scheme
1. Size of the Banks.
2. Adequacy of its resources to take part in Lead bank scheme. 3.Regional orientation of the banks
4. Banks wishes to involve in LoanMela.
Which of the criteria given above are considered for the selection of banks to take part in the ‘Lead Bank Scheme’?
(a) 1, 2, 4 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (b)

717. Consider the following statements
1. Differential Interest Rate (DIR) Scheme was introduced in the Fifth Five Year Plan in India.
2. Under the DIR Scheme, Public Sector Banks give loans and advance to the weaker sections of the society who have no tangible security.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

718. Consider the following statements
1. Priority Sector Lending is started since the establishment of the Banking system in India.
2. Priority Sector Lending is mainly aimed to give adequate assistance to those sectors which contributed a significant proportion of national product.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

719. Which of the following grants/grant direct credit assistance to rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks Select the correct answer using the codes given below
(a) 1 and 2
(b) Only 2
(c) 1 and 3
(d) All of the above
Ans: (c)

720. Retail Banking is to provide banking services
(a) only to individual customers in an integrated manner.
(b) entirely to agricultural sector only.
(c) only to Self-Help Group for their survival.
(d) None of the above
Ans: (a)

721. Consider the following statements
1. Global Trust Bank (GTB) has been amalgamated with the Punjab National Bank.
2. The second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendation including the abolition of exemptions relating to housing loans.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

722. Consider the following statements
1. Allahabad Bank was the first bank to be established exclusively by Indians.
2. Seven banks forming subsidiary of State Bank of India was nationalised in 1960.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

723. Which of the following is the objective of Net Stable Funding Ratio ?
(a) To ensure that banks maintain a stable deposit ratio in and off balance sheet activities
(b) To ensure that banks maintain a stable statutory liquidity ratio
(c) To ensure that banks maintain a stable funding profile and off balance sheet activities
(d) None of the above
Ans: (c)

724. Consider the following statements
1. The maximum limit for house holding of India promoters in private sectors banks in India is 49% of the paid up capital.
2. Foreign Direct Investment (FDI) upto 49% from all sources is permitted in private sector banks in India under the automatic route. Arrange the following correctly
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

725. Which of the following Public Sector Bank’s emblem figures a dog and the words ‘faithful friendly’ in it?
(a) Punjab National Bank
(b) Syndicate Bank
(c) Oriental Bank of India
(d) State Bank of India
Ans: (b)

726. Which among the following committees was on banking sector reforms?
(a) Narasimham I
(b) Narasimham II
(c) Narasimham III
(d) Damodaran Committee
Ans: (b)

727. In India, the interest rate on savings accounts in all the nationalised commercial banks is fixed by
(a) Union Minister of Finance
(b) Union Finance Commission
(c) Indian Bank’s Association
(d) None of the above
Ans: (c)

728. In India, the first bank of limited liabilities managed by Indians and founded in 1881 was
(a) Hindustan Commercial Bank
(b) Oudh Commercial Bank
(c) Punjab National Bank
(d) Punjab and Sind Bank
Ans: (b)

729. Which of the following Indian banks is not a nationalised bank?
(a) Corporation (b) Dena Bank
(c) Federal Bank (d) Vijaya Bank
Ans: (c)

730. Consider the following events in the Indian Financial System
1. Nationalisation of Reserve Bank of India.
2. Foundation of Punjab National Bank.
3. Nationalisation of State Bank of India.
4. Establishment of NABARD. Arrange the events given above chronologically and select the correct answer using the codes given below
(a) 1, 2, 3, 4 (b) 1, 2, 4, 3
(c) 2, 1, 4, 3 (d) 2, 1, 3, 4
Ans: (d)

731. Which of the following committees was constituted to scrutinise the application for new banks in India ?
(a) Bandhan Committee
(b) Deepak Mohanty Committee
(c) Bimal Jalan Committee
(d) Khandewal Committee
Ans: (c)

732. Which among the following is/are the recommendations of Nachiket Mor Committee?
1. Every adult of our country should have a bank amount by 1st January, 2016.
2. Abolition of interest subsidies.
3. Unified financial redress agency under Finance Ministry for customer grievances
4. Raising priority sector lending cap for bank to 70% from current 40%. Choose the right answer from the following
(a) 1, 2 and 3
(b) Only 4
(c) 2 and 4
(d) All of the above
Ans: (a)

733. Which among the following currencies is the costliest?
(a) French Franc (b) Swiss Franc
(c) Euro (d) Pound sterling
Ans: (d)

734. Which of the following is/are the objectives of MUDRA Bank ?
1. Regulate the lender and borrower of microfinance and bring stability to microfinance system.
2. Extent finance and credit support to Microfinance Institutions and agencies.
3. Develop the standardised covenants that will form the backbone of the last mile business in future.
4. Introduce appropriate technologies to assist in the process of efficient lending, borrowing and monitoring of distributed capital. Choose the right answer from the following codes
(a) 1 and 2 (b) 1, 2, 3 and 4
(c) 3 and 4 (d) None of these
Ans: (b)

735. Which among the following rural banks has been named after a river?
(a) Prathana Bank
(b) Varada Grameen Bank
(c) Thar Anchalik Grameen Bank
(d) None of the above
Ans: (b)

736. Which one of the following is correctly matched?
List I (Bank) List II (Headquarters)
1. Standard Chartered : United Kingdom
2. Citibank : United States
3. Dresdner Bank AG : Germany Select the correct answer using the codes given below
(a) 1 and 2 (b) Only 1
(c) 2 and 3 (d) All of these
Ans: (d)

737. A scheduled bank is the one which is included in the
(a) II Schedule of Banking Regulation Act
(b) II Schedule of Constitution
(c) II Schedule of RBI Act
(d) None of the above
Ans: (b)

738. Which of the following banks newly introduced smart up for startups to fulfil all their banking needs ?
(a) HDFC (b) ICICI
(c) RBI (d) SBI
Ans: (a)

739. Consider the following about the Lead Banks’ role in the Lead Bank Scheme
1. To co-ordinate the Co-operative banks, commercial banks and other financial institutions in their allotted districts.
2. To survey and Identify the unbanked districts and take initiatives to open bank branches.
3. To estimate the deposits potential and the credit gaps and fill the vacuum in the districts.
Which of the roles given above is/are correct?
(a) Only 1 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

740. Which among the following is/are true about the contactless credit cards launched by ICICI ?
1. The card is powered by ‘VISA Pay Wave’ contactless technology.
2. The card can also be used by dipping or swiping at non-contactless merchants.
3. It offers dual advantage of reward programme on the expenses and repayments of credit cards.
4. The technology enables cardholder to make payments by simply tapping card at contactless enabled terminals in more than 48 countries including India. Choose the right answer from the following codes
(a) 1, 2, 3 and 4 (b) 1 and 4
(c) 2 and 3 (d) 1, 3 and 4
Ans: (a)

741. Consider the following statements. Regional Rural Banks 1.have limited area of operations. 2.have free access to liberal refinance facilities with NABARD. 3.are required to lend only to weaker sections. Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

742. Which of the followings is called a ‘Banker’s Cheque’?
(a) Demand Draft
(b) Debit Card
(c) Pay Order
(d) Fixed Deposit
Ans: (a)

743. Consider the following statements
1. The Lok Sabha has unanimously passed insolvancy and bankruptcy code 2015 by a voice vote.
2. The code has no time bound for its process.
Which of the above statements is/are true ?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of them
Ans: (a)

744. Whose signature is found on one rupee notes in India?
(a) The Secretary, Finance
(b) The Governor, RBI
(c) The PM of India
(d) None of the above
Ans: (a)

745. Which of the following is the first private sector bank to open dedicated branch for start ups in India?
(a) ICICI (b) HDFC
(c) RBI (d) Indus Ind Bank
Ans: (c)

746. Consider the following statements
1. The Lead Bank Scheme was started after the nationalisation of the 14-banks.
2. None of the private banks were participated in the lead bank scheme.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

747. Which of the following is the correct definition of Hot Money?
(a) This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence bring high returns.
(b) This is the fund which is provided by a bank in US Dollar at very short notice at a very high rate of interest and for a longer period of repayment.
(c) This is the fund which is pushed into market through Hawala or some other such illegal method and is sometime referred to also as Black Money.
(d) Both ‘a’ and ‘c’
Ans: (a)

748. Which one among the following Nationalised Banks is the most latest in the term of establishment?
(a) Punjab National Bank
(b) Punjab and Sind Bank
(c) Bank of Baroda
(d) Oriental Bank of Commerce
Ans: (d)

749. With regards to the Service Area Approach Programme, consider the following
1. Avoidance of duplication of development efforts.
2. Organised and planned lending in the designated areas.
3. Monitoring and assessment of the service and its impact on production level.
4. Optimise the credit and linkages between the production and productivity.
Which of the benefits given above are actually accrued from the Service Area Approach Programme?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 4 (d) 3 and 4
Ans: (a)

750. The major aim of devaluation is to
(a) encourage exports
(b) encourage imports
(c) encourage both exports and imports
(d) discourage both exports and imports
Ans: (a)

751. Which of the following terms indicate a mechanism used by commercial banks for providing credit to the Government?
(a) Cash Credit Ratio
(b) Debit Service Obligation
(c) Liquidity Adjustment Facility
(d) Satutory Liquidity Ratio
Ans: (d)

752. With reference to Indian economy, consider the following statements
1. Special Agricultural Credit Plan (SACP) is mainly implemented by the Public Sector Banks.
2. Special Agricultural Credit Plan (SACP) was launched in the Fourth Five Year Plan.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

753. Which one of the following is correct about the Hundis in the Indian Banking System?
(a) A Counter of trade the commodities produced in a season
(b) An internal bill of exchange of the Indigenous Banking System
(c) A bill of exchange sold in the Indian secondary capital market
(d) None of the above
Ans: (b)

754. Which one of the following committees was constituted to bring reform in the Indian Banking System?
(a) Abhijit Sen Committee
(b) Abid Hussain Committee
(c) Suresh Tendulkar Committee
(d) M Narsimham Committee
Ans: (d)

755. Which one of the following is not correct about the microfinance?
(a) It is a provision of financial services to low-income groups of a society.
(b) It is aimed to assist the selfemployed who traditionally lack access to banking system.
(c) It is the credit policy which does not cover the insurance of the borrower.
(d) It is mainly aimed to reduce the unemployment and poverty of a country.
Ans: (c)

756. Which one of the following is correctly matched?
(a) NBFC : Organised Banking sector
(b) SHROFFS : Indigenous Banking system
(c) NIDHI : Scheduled Banking system
(d) None of the above
Ans: (b)

757. Banks of India are required to maintain a certain ratio between their risky assets and capital which is known as
(a) Cap Adequacy Ratio (CAR)
(b) Statutory Liquidity Ratio (SLR)
(c) General Bank Reserve (GBR)
(d) Capital-to-risk-weighted Adequacy Ratio (CRAR)
Ans: (d)

758. Select the incorrect one/(s) about the Regional Rural Banks (RRBs) in India from the given statements using the codes given below
1. They are now being merged with the public sector banks under whom they used to function.
2. The original mandate of their clientele has now been abolished
3. They cannot forward advances at commercial interest rates.
(a) Only 1 (b) 2 and 3
(c) Only 3 (d) 1 and 3
Ans: (c)

759. Select the correct one/ones about a Local Area Banks (LABs) using the code given below
1. They ensure focussed savings and credit mobilisation by defining their clear boundary of operation.
2. They operate in narrow geographical area of three continuous districts.
3. Private sector is allowed to enter the segment.
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) All of the above
Ans: (d)

760. Select the correct statement regarding the Priority Sector Lending (PSL) obligations of the banks operating in India
(a) the number of items in the PSL has been decreased by the Government of India, following the recommendations of the Narsimham committee-I
(b) nationalised banks have to fulfil higher targets of the PSL than the Indian private sector banks
(c) for foreign private banks the PSL compulsion has been withdrawn
(d) poorest among the poor’s also come under the PSL
Ans: (d)

761. Select the correct one/ones about the cooperative banks in India from the given choices using the codes
1. The Urban Co-operative Banks (ICBS), Until 1996, could only lend for non-agricultural purposes.
2. These banks provide most services, such as savings and current accounts, safe deposit lockers, loan or mortgages to private and business customers.
(a) Only 1 (b) 1 and 2
(c) Only 2 (d) None of these
Ans: (b)

762. Select the correct one/ones about the Banking Financial Supervision (BFS) in India
1. The RBI performs financial supervision function under the guidance of the Board for Financial Supervision (BFS).
2. Primary objective of BFS is to undertake consolidate supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies.
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

763. State Bank of India was previously known as
(a) Cooperative Bank of India
(b) Syndicate Bank
(c) Imperial Bank of India
(d) Canara Bank
Ans: (c)

764. If the interest rate is decreased in an economy, it will
(a) decrease in consumption expenditure in the economy.
(b) increase the tax collection of the government.
(c) increase the investment expenditure of the economy.
(d) increase in total saving of the economy.
Ans: (c)

765. What does the letter ‘e’ denotes in the term ‘e – banking’ ?
(a) Essential Banking
(b) Economic Banking
(c) Electronic Banking
(d) Expansion Banking
Ans: (c)

766. RRBs are owned by
(a) Central Government
(b) State Government
(c) Sponser Bank
(d) Jointly by all of the above
Ans: (c)

767. Which bank is limited to the needs of agriculture and rural finance?
(a) SBI (b) NABARD
(c) IFC (d) RBI
Ans: (b)

Part 8 Capital Markets
768. Purchase or sale of government securities by the Central bank from the general public in the bond market, in a bid to increase or decrease the money supply in the economy is referred to as
(a) open market operation
(b) rationing of credit
(c) variable reserve ratio
(d) dear money policy
Ans: (a)

769. Consider the following statements
1. Indian Depository Receipt is an instrument denominated in Indian rupees in the form of a depository receipt created by the custodian of securities registered with the Securities and Exchange Board of India against the underlying equity of issuing company.
2. Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

770. Which one of the following statements is correct with reference to FEMA in India?
(a) The Foreign Exchange Regulating Act (FERA) was replaced by Foreign Exchange Management Act (FEMA) in the year 2001.
(b) FERA was given a sunset clause of one year till 31st May, 2002 to enable enforcement directorate to complete the inrenttigation of pending issues.
(c) Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence.
(d) As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rule.
Ans: (c)

771. Consider the following statements
1. Foreign Exchange Management Act (FEMA) was passed in 1991 to replace Foreign Exchange Regulation Act.
2. FEMA serves to make transactions for external trade (exports and imports) easier.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

772. In which one of the following Five Year Plan of the Indian economy did the Security Exchange Board of India (SEBI) make a statutory Institution?
(a) Fourth Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan
Ans: (d)

773. Consider the following statements. In India, taxes on transaction in stock exchanges and future markets are
1. Levied by the union
2. Collected by the states
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of these
Ans: (a)

774. Which one of the following agencies in the Indian capital market has authority to regulate the mutual fund markets in India?
(a) IRDA (b) SEBI (c) RBI (d) IBPS
Ans: (b)

775. In the context of Indian economy, ‘Open Market Operations’ refers to
(a) borrowing by scheduled banks from the RBI
(b) lending by commercial banks to industry and trade
(c) purchase and sale of government securities by the RBI
(d) None of the above
Ans: (c)

776. With reference to Indian capital market, consider the following statements
1. CRISIL was set-up in the Eighth Five Year Plan.
2. CRISIL rates the debt instruments of the public sectors.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

777. India’s market regulator SEBI is on course to relax investment norms for sovereign wealth funds, the investment vehicles which are directly controlled by the government of a country. The main reason behind this move is
(a) the desire of the Government of India to attract more foreign investment.
(b) pressure by foreign governments on India to execute specific mutual agreements on financial services.
(c) SEBI’s desire to create a more level playing field for foreign investors.
(d) RBIs relevant directive to SEBI.
Ans: (a)

778. Consider the following statements
1. Housing Development Finance Corporation Limited (HDFC) is a national level housing Finance institution set up in 1977.
2. HDFC was established as a subsidiary company of the ICICI.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

779. Which one of the following companies is eligible for the financial assistance and loans from the Industrial Finance Corporation of India (IFCI)?
(a) Limited Public Companies
(b) Public Co-Operatives
(c) Private Limited Companies
(d) All of the above
Ans: (d)

780. Consider the following statements
1. National Housing Bank (NHB) was established by the RBI in 1980.
2. NHB is directly financing the schemes of housing for women in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

781. Which of the following statements with regard to New Development Bank (NBC), formerly referred to as the BRICS Development Bank, is/are correct?
1. The headquarters of the bank is situated at Moscow, Russia.
2. KV Kamath is the first President of the bank. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

782. Micro-finance is the provision of financial services to the people of low income groups. This includes both consumer and the self-employed. The service/ services rendered under micro-finance is/are
1. Credit facilities 2. Saving facilities
3. Insurance facilities
4. Fund transfer facilities
Which of the statements given above is/are correct?
(a) 1, 2, 3 and 4 (b) 1 and 4
(c) 2 and 3 (d) Only 1
Ans: (a)

783. What is ‘NIKKEI’?
(a) Share Price Index of Tokyo Share Market
(b) Name of Japanese Central Bank
(c) Japanese name of country’s Planning Commission
(d) Foreign exchange market of Japan
Ans: (a)

784. Consider the following statements about the Indian capital market
1. The Security Exchange Board of India (SEBI) was set-up in the Seventh Five Year Plan.
2. The Capital Issue (Control) Act-1947 was repealed and replaced by the SEBI.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

785. Which one of the following missions of the World Bodies/Organisation had set-up the Industrial Credit and Investment Corporation of India (ICICI) bank for the developing small and medium industries in India in the Private Sector?
(a) World Bank
(b) International Monetary Fund
(c) Asian Development Bank
(d) World Trade Organisation
Ans: (a)

786. Consider the following statements about the Indian capital market
1. Primary Market in India is mainly dealt in the new issues and debentures.
2. Primary Market in India is supervised by the Insurance Regulatory Development Authority.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

787. Consider the following statements
1. LIBOR is the average interest rate provided by leading banks in London.
2. MIBOR and MIBID are the reference rates in inter-bank call money market.
Which of the above statements is/are true ?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

788. To obtain full benefits of demographic dividend, what should India do?
(a) Promoting skill development
(b) Introducing more social security schemes
(c) Reducing infant mortality rate
(d) Privatisation of higher education
Ans: (a)

789. Which among the following are the indices of Bombay Stock Exchange?
1. MIDCAP
2. SMLCAP
3. CNX MIDCAP
4. S and P CNX 500 Choose the right answer using the codes given below
(a) 1 and 3 (b) 2 and 4
(c) 1, 2,3 and 4 (d) 1 and 2
Ans: (d)

790. Which of the following statements are true about T-Bills?
1. 14 days T-bill is auctioned on every Friday every week.
2. 91 days T-bill is auctioned on every Friday every week.
3. 182 days T-bill and 364 days T-bill are auctioned on every alternate Wednesday.
4. 182 days T-bill and 364 days T-bill are auctioned on a fortnight basis. Choose the right answer from the codes given below
(a) 1, 2 and 3 (b) 1 and 4
(c) 2 and 3 (d) 1, 2 and 4
Ans: (b)

791. Tarapore committee submitted its report on ‘Full Convertibility on Rupee’ in
(a) Current account
(b) Capital account
(c) Both ‘a’ and ‘b’
(d) Special Drawing Rights (SDR)
Ans: (b)

792. With reference to functions of Security Exchange Board of India, consider the following statements
1. It has power to ensure the orderly development of capital market.
2. It has power to protect the investors in the capital market.
3. It has power to ensure proper functioning of insurance market in India. 4 It has power to regulate the merchant banking in India.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 2 and 3
(c) 2, 3 and 4 (d) 1, 2 and 4
Ans: (d)

793. Which one of the following acts had established the Small Industries Development Bank of India (SIDBI)?
(a) Act of Parliament,1956
(b) Act of Parliament,1970
(c) Act of Parliament,1990
(d) Act of Parliament,1996
Ans: (c)

794. Consider the following statements
1. Forward Markets Commission (FMC) regulates commodity trades in India.
2. Forward Markets Commission (FMC), a financial regulatory agency is overseen by the Ministry of Finance in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

795. Consider the following statements
1. ISE is a national level stock exchange.
2. It aims to address the needs of small companies and retail investors.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

796. Which among the following is not an approved stock exchange in India?
(a) UP Stock Exchange, Kanpur
(b) Vadodara Stock Exchange, Vadodara
(c) Assam Stock Exchange, Assam
(d) Bhubaneshwar Stock Exchange, Bhubaneshwar
Ans: (c)

797. Which body in India does the regulation of insurance sector?
(a) DFHI (b) CII (c) SEBI (d) IRDA
Ans: (d)

798. Consider the following functions of the Foreign Exchange Management Act (FEMA)
1. FEMA restricts activities such as payments made to any person outside India or receipts from them.
2. FEMA imposes restriction on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad.
3. FEMA regulates the exporters to furnish their export details to RBI.
Which of the statements given above is/are correct?
(a) 1, 2, and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 1
Ans: (a)

799. Which one of the following banks is the new set of owner of the Unit Trust of India-2 (UTI-2) after the repealed of original UTI Act?
(a) State Bank of India
(b) Bank of Baroda
(c) Punjab National Bank
(d) All of the above
Ans: (d)

800. Consider the following statements
1. Global depository receipt is a certificate issued by a depository bank which purchases shares of foreign companies and deposits it on the account.
2. Global depository receipts are used to invest in companies from developing or emerging markets.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

801. ‘Liquidity trap’ is a situation in which
(a) people want to hold only cash because prices are falling everyday.
(b) people want to hold only cash because there is toomuch of liquidity in the economy.
(c) the rate of interest is so low that no one wants to hold interest bearing assets and people want to hold cash.
(d) there is an excess of foreign exchange reserves in the economy leading to excess of money supply.
Ans: (d)

802. Which of the following is not the recommendation of the Arvind Mayaram Committee on rationalising the FDI/FPI definition (June, 2014)?
(a) Foreign investment of 10% or more in a listed company will be treated as Foreign Direct Investment (FDI).
(b) In a particular company, an investor can hold the investments either under the Foreign Portfolio Investment (FPI) route or under the FDI route, but not both.
(c) Any investment by way of equity shares, compulsorily convertible preference shares/debentures which is less than 10% of the post-issue paid up equity capital of a company shall be treated as FPI.
(d) On NRI Investors, the committee recommended treating non – repartriable investment as FDI.
Ans: (c)

803. Where is the headquarters of Forward Markets Commission ?
(a) Mumbai (b) Delhi
(c) Bangaluru (d) Hyderabad
Ans: (a)

804. Which of the following Development Financial Institutions in India had started the Soft Loan Scheme for the Modernisation of the Industrial sector in the country since 1980s?
(a) State Finance Corporations
(b) Industrial Development Bank of India
(c) Industrial Credit and Investment Corporation of India
(d) None of the above
Ans: (b)

805. The capital market has witnessed major reforms in the 1990s. Which of the following are the major reforms of capital market?
1. Set-up of the Investors Education and Protection Fund in 2001 under the purview of SEBI.
2. The Insurance Regulatory and Development Authority was set-up in 2000.
3. The Multi Commodity Exchange is set up.
4. Credit rating agencies were set up. Choose the right answer using the codes given below
(a) 1, 2 and 4 (b) 2 and 4
(c) 1 and 3 (d) 1, 2, 3 and 4
Ans: (d)

806. Which one of the following Development Financial Institutions of India had created a Special Financial Fund called Development Assistance Fund to assist those industrial concerns whose return is low?
(a) ICICI (b) IFCI
(c) IDBI (d) SFCs
Ans: (c)

807. For regulation of insurance trade in the country the Government has formed
(a) SEBI (b) RBI
(c) IRDAI (d) GIC
Ans: (c)

808. In the parlance of economy/ commerce, what is ‘Gilt-edged market’?
(a) Gold and Silver market
(b) Industrial securities market
(c) Market for safe (such as Government) securities
(d) Market for software technology/ service products
Ans: (c)

809. Which of the following does not come under the functions of the stock exchanges in India? 1.Keeping 1% of the issued capital of the listed companies at the exchange as security, on behalf of the SEBI. 2.Providing liquidity to the stocks and catering different information services to the stakeholders in the security market of India.
Codes
(a) Only 1 (b) Only 2
(c) 1 and 2 (d) Neither 1 nor 2
Ans: (d)

810. Consider the following functions
1. Refinance loans and advances extended by the Primary Lending Institutions to Small Scale Industries (SSIs).
2. Provides services like leasing, factory to SSIs.
3. Discounts and rediscounts the bills arising from the sale of machinery to SSIs.
Which of the functions given above is/are correct with respect to SIDBI?
(a) 1 and 2
(b) Only 2
(c) 2 and 3
(d) All of the above
Ans: (d)

811. What was the Saudi Arabian currency called?
(a) Dirham (b) Peso
(c) Dinar (d) Riyal
Ans: (d)

812. Consider the following statements
1. Regulation of the insider trading in the Indian secondary capital market is under the provision of SEBI.
2. SEBI has been empower to file complaints in the court and to notify its regulation without prior approval of the government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

813. Which of the following statements is relation to Bombay Stock Exchange, is correct?
(a) It is the oldest exchange of India.
(b) It is known by the name of Dalal Steet.
(c) It’’s share index is known by the name of SENSEX.
(d) All of sthe above
Ans: (d)

814. Consider the following statements
1. A credit default swap is referred to as a credit derivative contract, where the purchaser of the swap makes payments up until maturity date of a contract .
2. Payments are made to the mediator and then the mediator deals with the seller. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of them
Ans: (a)

815. Bolivar is monetary unit of
(a) Venezuela (b) Bolivia
(c) Brazil (d) Belarus
Ans: (a)

816. With reference to Industrial Finance Corporation of India (IFCI), consider the following functions
1. IFCI guarantees the loans raised by the industrial concerns in the Indian capital market.
2. IFCI subscribes to the debentures floated the industrial concerns.
Which of the functions given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

817. Commercial paper is a source of credit for which one of the following?
(a) Corporate Industry
(b) Small Scale Industry
(c) Commercial Bank
(d) Foreign Bank
Ans: (a)

818. Select the correct one/ones about the debentureholders of a company using the codes given below
1. They are like shareholders of the company.
2. They are creditors to the company.
3. They are called in the company’s Annual General Meetings.
Codes
(a) Only 1 (b) Only 2
(c) 2 and 3 (d) 1 and 3
Ans: (a)

819. Which of the following is true about the distinction between money market and capital market?
1. Money market deals long term funds and capital market deals short-term funds.
2. Money market deals in securities like treasury bills, commercial papers etc and capital market deals with securities like shares, debentures etc.
3. Money market participants are Commercial Banks, NBFs etc and capital market participants are stock brokers, individual investors etc.
4. Money market is regulated by SEBI and capitalmarket is regulated by RBI.
(a) 1, 3 and 4 (b) 2 and 3
(c) 1 and 4 (d) All of these
Ans: (b)

820. Which of the following are the functions of IRDAI ?
1. Settlement of Insurance claim
2. Surrender value of policy holders
3. Creation of management information system
4. Code of conduct of insurance intermediaries Choose the right answer using the codes given below
(a) 1, 2 and 4 (b) 1 and 4
(c) 2 and 4 (d) 1, 2, 3 and 4
Ans: (d)

821. The acronym SRO, being used in the capital market for various market participants, stands for which one of the followings?
(a) Self Regulatory Organisations
(b) Small Revenue Operators
(c) Securities Roll-back Operators
(d) Securities Regulatory Organisations
Ans: (a)

822. Consider the following statements
1. LIBOR is the primary benchmark for short-term interest rates around the world.
2. Euribor is the usual reference rates for the euro which is compiled by the European Banking Federation.
Which of the statements given above is/are correct?
(a) Only 2 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

823. Which of the following is the correct definition of the term ‘Commercial Paper’?
(a) It is nothing but the popular name of the judicial stamp papers used to register financial transactions.
(b) It is one of the instrument through which corporate raise debts from the market.
(c) It is the name of the ‘Certificate of Deposits’ provided by the bank to all its retail customers.
(d) All of the above
Ans: (b)

824. Consider the following statements Full convertibility of the rupee may mean
1. Its free float with other international currencies.
2. Its direct exchange with any other international currency at any prescribed place inside and outside the country.
3. It acts just like any other national currency.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

825. In the parlance of financial investment, the term bear denotes
(a) an investor, who feels that the price of a particular security is going to fall.
(b) an investor, who expects the price of a particular share to rise.
(c) a shareholder, who has an interest in a company, financially or otherwise.
(d) any lender, whether by making a loan or buying a bond.
Ans: (a)

826. Consider the following statements
1. American depositary receipts are securities of a non-US company that trade in the US financial markets.
2. ADR is a negotiable security that represents securities of companies that is foreign to the market on which the DR trades.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

827. The financial sector Legislative Reforms Commission report submitted recently, among others, contained which of the following proposals ?
1. All regulators will have an empowered Board, the role of each of the members has been defined.
2. The commission envisages an important process of judicial review of the regulations.
3. The draft code does not mention about executive powers Select the correct answer using the codes given below.
(a) 1 and 2 (b) Only 2
(c) 1 and 3 (d) 1, 2 and 3
Ans: (b)

828. Which one of the following market is primarily related with the S&P CNX?
(a) Primary market
(b) Secondary market
(c) Commodity market
(d) None of the above
Ans: (b)

829. Match the following
List I Publishers List II Publication
A. Ministry of Industry 1. Report on Currency and Finance
B. Central Statistical Organisation 2. Economic Survey
C. Reserve Bank of India 3. Wholesale Price Index
D. Ministry of Finance 4. National Accounts Statistics
Codes A B C D A B C D
(a) 2 4 3 1 (b) 3 4 1 2
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (b)

830. With reference to State Financial Corporations, consider the following functions 1 It guarantees the loans raised by the Industrial concerned payable in 20-years. 2 It underwrites the stocks, shares, bonds or debentures in the Indian Capital Market. 3 It subscribes directly to the shares or stocks of any companies having limited liability. Which of the functions given above is/are correct?
(a) 1 and 2 (b) Only 2
(c) 2 and 3 (d) All of these
Ans: (d)

831. Which one of the following functions is the major function of the Industrial Reconstruction Bank of India?
(a) Revival of sick industrial units
(b) Construction and establishment of new heavy industries
(c) Repurchase of the stocks and debentures from the general public
(d) Both ‘a’ and ‘b’
Ans: (d)

832. Consider the following statements
1. Individuals, trusts and non-profit making organisations are not eligible to raise External Commercial Borrowings (ECBs).
2. ECB for investment in the real sector especially infrastructure sector in India is allowed under the Automatic Route.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

833. Consider the following statements regarding the Unit Trust of India (UTI)
1. RBI is one of the major subscriber of the initial capital of the UTI.
2. UTI was collapsed in 2001-02.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

834. Which one of the following is allowed to invest in all the securities traded on the primary and secondary markets as also in unlisted companies?
(a) Pension funds
(b) Mutual funds
(c) Asset Management companies
(d) All of the above
Ans: (b)

835. Consider the following statements
1. Foreign Currency Convertible Bonds are issued in currencies different from the issuing company’s domestic currency.
2. Foreign Currency Convertible Bonds are quasi-debt instruments and tradable on the primary capital market.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

836. Which one of the following is correct?
(a) Life Insurance Corporation of India was set-up after the General Insurance Corporation.
(b) General Insurance Corporation was set-up in the Fifth Five Year Plan.
(c) Life Insurance Corporation of India was set-up in the Second Five Year Plan
(d) None of the above
Ans: (c)

837. Which of the following insurance companies is not the subsidiary of the General Insurance Company of India?
(a) National Insurance Company Limited
(b) New India Assurance Company Limited
(c) Oriental Insurance Company Limited
(d) Life Insurance Corporation of India Limited
Ans: (d)

838. Consider the following banks
1. Industrial Investment Bank of India
2. Industrial Reconstruction Bank of India
3. Industrial Reconstruction Corporation of India Arrange the above banks chronologically and select the correct answer using the codes given below
(a) 3, 1, 2 (b) 1, 3, 2
(c) 3, 2, 1 (d) 1, 2, 3
Ans: (a)

839. Which one of the following is the component of the Balance of Payments in the current account?
(a) Net earnings on exports minus payments for imports
(b) Earnings on foreign investments minus payments made to foreign investors
(c) Cash transfers
(d) All of the above
Ans: (c)

840. Consider the following objectives
1. Stimulates and pools the saving of middle and low income groups.
2. Share the benefits and prosperity of the rapidly growing industries with the middle and low income groups.
Which of the objectives given above is/are the main objectives of the Unit Trust of India?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

841. Consider the following statements about Sinking Fund
1. It is a method of repayment of public debt.
2. It is created by the government out of budgetary revenues every year.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) None of the above
Ans: (c)

842. Consider the following statements
1. Capital account surplus of a country means the money is flowing into the country.
2. Capital account deficit of a nation suggests that the nation is increasing its claims on foreign assets.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

843. The business in stock markets and other securities markets is regulated by
(a) Securities and Exchange Board of India
(b) State and Exchange Bank of India
(c) Stock and Exchange Bank of India
(d) Stock Trade and Exchange Bank of India
Ans: (c)

844. Consider the following statements
1. Oriental Life Insurance Company offering life insurance coverage was established in 1818.
2. Oriental Life Insurance Company offering life insurance coverage was established by Bipin Behari Dasgupta.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

845. Which one of the following areas is related with the MCX in India?
(a) Trading of multiple-commodities in the market
(b) Trading of multiple-shares of different countries
(c) Trading of consultation services in the market
(d) None of the above
Ans: (c)

846. Open market operations, one of the measures taken by RBI in order to control credit expansion in the economy, means
(a) Sale or purchase of government securities
(b) Issuance of different types of bonds
(c) Auction of gold
(d) To make available direct finance to borrowers
Ans: (d)

847. Consider the following statements
1. Financial Stability And Development Council is set-up to strengthen and institutionalise the mechanism for maintaining financial stability and development.
2. The Chairman of the Financial Stability and Development Council is the Finance Minister of India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

848. Consider the following statements
1. S&P CNX Nifty is one of several leading stock market index.
2. Nifty is owned and managed by a joint venture company between National Stock Exchange and Credit Rating and Information Services of India Ltd.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

849. Nifty Junior is related with which one of the following markets of the Indian economy?
(a) Indian money market
(b) Indian commodity market
(c) Indian currency market
(d) Indian equity market
Ans: (a)

850. When did the United Stock Exchange of India Limited launch in the Indian capital market?
(a) 1990 (b) 1995 (c) 2000 (d) 2010
Ans: (c)

851. In which one of the following Five Year Plan, did the EXIM bank establish in India?
(a) Second Five Year Plan
(b) Third Five Year Plan
(c) Sixth Five Year Plan
(d) Seventh Five Year Plan
Ans: (a)

852. Consider the following statements
1. External Commercial Borrowings are being permitted as an additional source of funds to all Indian Corporates and PSUs.
2. External Commercial Borrowings refer to commercial loans availed from non-resident lenders with a minimumaveragematurity of 3 years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

853. Which one of the following is the Recognised lender of the external commercial borrowings in the international capital market?
(a) Export credit agencies
(b) Asian Development Bank
(c) International Finance Corporation
(d) All of the above
Ans: (c)

854. Consider the following statements
1. Mutual funds are not allowed to participate in the derivatives market in Indian Capital Market.
2. Mutual funds are permitted to invest in ADRs, GDRs and foreign securities.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

855. Consider the following statements
1. A scheme for attracting portfolio from Foreign Institutional Investors (FIIs) in India was launched in 1992.
2. A scheme to raise ADR/GDR/ FCCBS Issues from the international capital markets in India was initiated during 1992-1993.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

856. Which one of the following is correct about the LIBOR in the international capital market?
(a) It is the average interest rate estimated by leading banks in London.
(b) It is the mechanism of calculation of the interest subvention given to loans in the international market.
(c) It is the credit given to the oil importers in the world petroleum market.
(d) All of the above
Ans: (d)

857. Financial sector reforms in India consist of
(a) Lowering down of CRR and SLR
(b) Entry of private firms in Insurance sector
(c) deregulation of rate of interest.
(d) All of the above
Ans: (d)

858. Which one of the following commissions was constituted to identify the sectors in which Foreign Institutional Investors (FIIs) portfolio investments will not be subject to the sectoral limits for Foreign Direct Investment except in specified sectors in India?
(a) M Narsimham Committee
(b) Lahiri Committee
(c) B K Chaturvedi Committee
(d) Y V Reddy Committee
Ans: (d)

859. The market in which loans of money can be obtained is called
(a) Reserve market
(b) Institutional market
(c) Money market
(d) Exchange market
Ans: (c)

860. The financial year of a cooperative organisation is
(a) April 1 to March 31
(b) January 1 to December 31
(c) July 1 to June 30
(d) May 1 to April 30
Ans: (c)

861. India earns maximum foreign exchange by the export of
(a) Iron (b) Tea
(c) Textile (d) Rubber
Ans: (c)

862. As per newspapers report, what per cent of government stake will be disinvested in Rashtriya Ispat Nigam
Ltd. (RINL)?
(a) 5% (b) 50% (c) 10% (d) 12%
Ans: (c)

863. RN Malhotra committee is associated with
(a) Sick industries (b) tax reforms
(c) Insurance sector
(d) Banking sector
Ans: (c)

Part 9 Public Finance and Budget
864. Value-added tax is
(a) an ad valorem tax on domestic final consumption collected at all stages between production and point of final sale
(b) an ad valorem tax on final consumption collected at the manufacturing level
(c) tax on final consumption collected at the consumption stage
(d) a special tax levied by the states on products from other states
Ans: (a)

865. Which one of the following forms the important receipts of the Capital Budget?
(a) Net market borrowing
(b) Net small savings
(c) Provident funds collections
(d) All of the above
Ans: (d)

866. Consider the following statements
1. Revenue budget deals with receipts from taxation and non-tax sources and the expenditure met out from these sources.
2. Net recoveries of loans and advances to states and public sector enterprises form the revenue receipts of the government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

867. Consider the following statements
1. The proceed of personal income tax is shared between the Central and State Governments.
2. The proceeds of the central excise duty is not shared between the Central and State Governments.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

868. MODVAT is different from VAT in the sense that
1. Under MODVAT, tax is levied only on value addition while under VAT, excise is imposed on final value and then rebate is given on inputs.
2. MODVAT is only at the production stage while VAT extends both to production and distribution stage.
3. Under MODVAT, excise is levied on final value and then rebate is given on inputs while under VAT, tax is levied only on value addition.
4. MODVAT implies rationalisation of excise duty only while VAT implies rationalisation of excise sales and turnover taxes etc also.
Which of the statements given above are correct?
(a) 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

869. Match List I with List II and select the correct answer using the codes given below the lists
List I (Term) List II (Explanation)
A. Fiscal deficit 1. Excess of total expenditure over receipts
B. Budget deficit 2. Excess of revenue expenditure
C. Revenue deficit 3. Excess of total expenditure over total receipts less borrowings
D. Primary deficit 4. Excess of total expenditure over total receipts less borrowings and interest payments
Codes A B C D A B C D
(a) 3 1 2 4 (b) 2 3 4 1
(c) 4 3 1 2 (d) 4 1 3 2
Ans: (a)

870. Fiscal deficit in the Union Budget means
(a) Difference between current expenditure and current revenue
(b) Net increase in Union Government’s borrowings from the Reserve Bank of India
(c) The sum of budgetary deficit and net increase in internal and external borrowing
(d) The sum of monetised deficit and budgetary deficit
Ans: (c)

871. Fiscal deficit in the budget means
(a) revenue deficit plus the net borrowings of the governments
(b) budgetary deficit plus the net borrowings of the government
(c) capital deficit plus revenue deficit
(d) primary deficit minus capital deficit
Ans: (b)

872. Which one of the following acts is going to be replaced by the Direct Taxes Code (DTC) in India?
(a) Income Tax Act 1961
(b) Wealth Tax Act 1957
(c) Custom Duty Act 1956
(d) Both ‘a’ and ‘b’
Ans: (d)

873. Consider the following taxes
1. Sales tax 2. Value-added tax
3. Property tax
Which of the taxes given above are Ad valorem tax/taxes?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

874. Match List I with List II and select the correct answer using the codes given below the lists
List I List II
A. Income Tax 1. Levied and collected by the Central Government
B. Corporation Tax 2. Levied and collected by the Central Government and shared by the State Government
C. Professional Tax 3. Levied by the Central Government but collected and appropriated by the State Government
D. Stamp Duties 4. Levied and collected by the State Governments
Codes A B C D A B C D
(a) 2 4 3 1 (b) 2 3 4 1
(c) 2 1 4 3 (d) 4 1 3 2
Ans: (c)

875. Which of the following is /are among the noticeable features of the recommendations of the Thirteenth Finance Commission?
1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.
2. A design for the creation of lakhs of jobs in the next ten years in consonance with India’s demographic dividend.
3. Devolution of a specified share of central taxes to local bodies as grants. Select the correct answer using the codes given below
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 1
Ans: (d)

876. Minimum Alternate Tax (MAT) is imposed by the Indian Government in addition to which one of the following tax?
(a) Personal Income tax
(b) Corporation tax
(c) Service tax (d) Expenditure tax
Ans: (b)

877. Which among the following is/are true?
1. Deficit financing does not lead to inflation if adopted in small doses.
2. Deficit financing is an often used tool for financing budgetary deficits. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) None of these
Ans: (c)

878. Which of the following statements appropriately describes the ‘fiscal stimullus’?
(a) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge by rapid economic growth.
(b) It is an intense affirmative action of the government to boost economic activity in the country.
(c) It is the government intensive action of financial institutions to ensure disbursement of loans to agriculture and allied sector to promote greater food production and contain food inflation.
(d) None of the above
Ans: (b)

879. Consider the following statements
1. Value-added tax was introduced for the first time in France.
2. Value-added tax is levied on the added value that results from each exchange.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

880. In India. The tax proceeds of which one of the following as a% of gross tax revenue has significantly declined in the last five year?
(a) Service tax
(b) Personal income tax
(c) Excise duty (d) Corporation tax
Ans: (c)

881. Consider the following expenditures
1. Interest payments
2. Subsidies
3. Defence expenditure
Which of the expenditures given above is/are Non-Plan Revenue Expenditure?
(a) 1 and 2 (b) 1 and 3
(c) Only 1 (d) All of these
Ans: (d)

882. Which one of the following was not stipulated in the Fiscal Responsibility and Budget Management Act, 2003?
(a) Elimination of revenue deficit by the end of the fiscal year 2007-08
(b) Non-borrowing the Central Government from Reserve Bank of India except under certain circumstances
(c) Elimination of primary deficit by the end of the fiscal year 2008-09
(d) None of the above
Ans: (c)

883. Which one of the following is refer to the use of taxation, public expenditure and the management of public debt in order to achieve certain specified objectives?
(a) Fiscal Policy (b) Trade Policy
(c) Revenue Policy (d) None of these
Ans: (c)

884. The existence of a parallel economy/black money
(a) makes the economymore competitive
(b) makes the monetary policies less effective
(c) ensure a better distribution of income and wealth
(d) ensure increasing productive investment
Ans: (b)

885. Which one of the following forms the Capital Expenditure of the Central Government?
(a) Loans and advances made to states
(b) Grants given to states
(c) Interest payments
(d) None of the above
Ans: (a)

886. Consider the following sources
1. Mint
2. Revenue from Indian Security Press
3. Grant-in-aid from other countries
Which of the sources given above is/are revenue sources of the Central Government from the Fiscal Services?
(a) Only 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

887. Which of the following statements is/are correct? Fiscal Responsibility and Budget Management Act (FRBM) concerns
(a) Fiscal deficit (b) Revenue deficit
(c) Both ‘a’ and ‘b’ (d) None of these
Ans: (b)

888. Consider the following statements
1. Expenditure tax is a progressive tax in India.
2. Expenditure tax is levied on the expenditure incurred in the accommodation.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

889. In our Constitution, the term ‘Budget’ is used under
(a) Article 112 (b) Article 72
(c) Schedule 5 (d) No where used
Ans: (d)

890. The Interest Tax is imposed on which one the following in India?
(a) Interest accrued to commercial banks on loans and advances
(b) Interest accrued to states on the loans and advances made to public sectors
(c) Interest accrued to India postal services on the loans and advances made to Central Government
(d) None of the above
Ans: (a)

891. Which one of the following taxes in India is imposed by the Central Government on the basis of the ability to pay principle?
(a) Wealth tax (b) Gift tax
(c) Corporate tax (d) Income tax
Ans: (d)

892. Consider the following statements
1. Libor rates are calculated for ten different currencies in the world capital market.
2. Libor rates are calculated for 15 borrowing periods ranging from overnight to one year in the world capital market.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

893. The Goods and Services Tax (GST) proposed to be introduced, covers taxes like
(a) Trade/Sale Tax (b) Service Tax
(c) Service, Excise
(d) Service, Excise, VAT
Ans: (d)

894. In India, deficit financing is used for raising resources for
(a) economic development
(b) redemption of public debt
(c) adjusting the Balance of Payments
(d) reducing the foreign debt
Ans: (a)

895. Which one of the following is correct for primary deficit?
(a) Gross Fiscal deficit—Net Fiscal deficit
(b) Gross Fiscal deficit—Net Interest liabilities
(c) Gross Fiscal deficit—Capital disbussment
(d) Gross Fiscal deficit—Interest receipts
Ans: (b)

896. Consider the following
1. Fringe Benefit Tax 2. Interest Tax
3. Securities Transaction Tax
Which of the mentioned above are Direct tax/taxes?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

897. Economic growth in country X will necessarily have to occur if
(a) there is technical progress in the world economy
(b) there is population growth in X
(c) there is capital formation in X
(d) the volume of trade grows in the world economy
Ans: (c)

898. Consider the following statements about the Ad valorem tax
1. Ad valorem tax is a tax based on the value of real estate or personal property.
2. Ad valorem tax is imposed only at the time of a transaction.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

899. ‘Other liabilities’ of the Central Government of India include out-standings against which one of the following?
(a) Small saving schemes
(b) Securities issued to Industrial Development Bank of India, Unit Trust of India and nationalised banks
(c) Deposits under the special deposit schemes
(d) All of the above
Ans: (d)

900. Consider the following statements
1. The custom duty is imposed on the commodities produced in India.
2. In the last few years, the importance of the custom duty in the revenue receipts of the Central Government is declined.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

901. Which one of the following cities in India imposed the General Sales Tax for the first time?
(a) Madras (b) Bombay
(c) Calcutta (d) Poona
Ans: (a)

902. Consider the following actions by the government
1. Cutting the tax rates
2. Increasing the government spending
3. Abolishing the subsidies
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

903. Which one of the following is correctly matched?
(a) Expenditure tax : Non-progressive tax
(b) Reserve funds and deposits : Other liabilities of the Central Government
(c) Excise duty : Direct tax
(d) None of the above
Ans: (b)

904. Consider the following taxes
1. Corporation tax 2. Customs duty
3. Wealth tax 4. Excise duty
Which of the statements given above is/are indirect taxes?
(a) Only 1 (b) 2 and 4
(c) 1 and 3 (d) 2 and 3
Ans: (b)

905. Which one of the following financial instruments has used the LIBOR as a reference rate?
(a) Interest rate swaps and inflation swaps
(b) Floating rate notes and syndicated loans
(c) Variable rate mortgages
(d) All of the above
Ans: (d)

906. In the context of governance, consider the following
1. Encouraging foreign direct investment inflows.
2. Privatisation of higher educational institutions.
3. Down-sizing of bureaucracy.
4. Selling/offloading the shares of public sector undertakings.
Which of the above can be used as measures to control the fiscal deficit in India?
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 1, 2 and 4 (d) 2 and 3
Ans: (a)

907. Which committee recommended abolition of tax rebates under section 88?
(a) Chelliah Committee
(b) Kelkar Committee
(c) Shome Committee
(d) None of the above
Ans: (b)

908. Consider the following statements In India, stamp duties on financial transactions are
1. Levied and collected by the State Government.
2. Appropriated by the Union Government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

909. Consider the following statements
1. Service Tax is a part of Central Excise in India.
2. The responsibility of collecting Service Tax lies with the Central Board of Excise and Customs.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

910. Which of the following is/are the central sources of revenue ?
1. Corporation Tax 2.Foreign loans
3. Reserve Bank of India
4. Post Office Savings Bank
5. Tolls Choose the right answer from the following codes
(a) 1, 3, 4 and 5 (b) 1,2,3 and 5
(c) 1, 2, 3 and 4 (d) All of these
Ans: (c)

911. Consider the following statements
1. In the last five years, the revenue from the direct taxes constitute more than the half of revenue receipts in India.
2. The Corporation Tax constitutes more than 50% of the Direct Tax revenue source of the Central Government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

912. Which one of the following taxes is impose on the accumulated property of the Hindu Undivided Family?
(a) Income Tax (b) Wealth Tax
(c) Corporate tax (d) Estate duty
Ans: (b)

913. The composting plant of South Delhi Municipal Corporation in Okhla, New Delhi, became the first in India to receive the carbon credits worth ` 25 lakh from which of the following organisations?
(a) The World Bank
(b) International Monetary Fund
(c) Asian Development Bank
(d) United Nations Framework on Climate Change
Ans: (d)

914. Which one of the following duties/ taxes is the major component of the customs duties in the Indian Economy?
(a) Import duties (b) Export duties
(c) Both ‘a’ and ‘b’ (d) None of these
Ans: (a)

915. Consider the following acts
1. Banking Cash Transaction Tax Act 2005.
2. Securities Transaction Tax Act 2004.
3. Interest Tax Act 1974.
4. Fringe Benefit Tax Act 2004.
Which of the Acts given above are Direct Tax Acts?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

916. The Union Government and RBI decided to introduce one billion pieces of ` 10 Bank notes made of plastic on a field trial basis in which of the following cities?
1. Mumbai 2. Mysore
3. Shimla 4. Jaipur Select the answer from codes given below.
(a) 1 and 4 (b) 2 and 4
(c) 2, 3 and 4 (d) 1, 2 and 3
Ans: (c)

917. Which of the following statements are correct?
1. Ability to pay principle of taxation holds that the amount of taxes people pay should relate to their income or wealth.
2. The benefit principle of taxation states that individuals should be taxed in proportion to the benefit they receive from government programmes.
3. A progressive tax takes a larger share of tax from poor families that it does from rich families.
4. Indirect taxes have the advantage of being cheaper and easier to collect. Select the correct answer using the codes given below
(a) 1 and 3 (b) 2 and 4
(c) 1,2 and 4 (d) 1,2,3 and 4
Ans: (c)

918. With reference to Union Budget, which of the following is/are covered under Non – plan Expenditure ?
1. Defence expenditure
2. Interest payments
3. Salaries and pensions
4. Subsidies Select the correct answer using the codes given below
(a) Only 1
(b) 2 and 3
(c) 1,2,3 and 4
(d) None of the above
Ans: (c)

919. Which one of the following is not correct in the current Indian scenario ?
(a) Life expectancy is on the increase and is about 67 years as of now.
(b) Infant mortality rate is on the decline and has reached 47 per thousand.
(c) Maternal mortality rate is on the rise due to lack of medical facilities.
(d) Percentage of women giving birth in health institutions is on the rise.
Ans: (d)

920. Consider the following statements
1. Introduction of service tax in India ushers a major structural change in indirect taxes in the form of a wider tax base.
2. Over the years, there has been an increase in the number of services and the rate of service tax leviable by the Central Government.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

921. Consider the following taxes
1. Personal income tax
2. Import duty 3. Service tax
Which of the taxes given above is/are Indirect Tax/Taxes?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (c)

922. Human Development Report for each year at global level is published by
(a) WTO (b) World Bank
(c) UNDP (d) IMF
Ans: (d)

923. Which one of the following is the major source of the revenue to State Government in India?
(a) Agricultural Income Tax
(b) Professional Tax
(c) General Sales Tax
(d) Stamp Duties
Ans: (c)

924. Which one of the following is the major source of the States Taxes on income in the Indian economy?
(a) Agricultural Income Tax
(b) Professional tax
(c) Both ‘a’ and ‘b’
(d) None of the above
Ans: (c)

925. Which one of the following is correct about the component of the State Government’s Budget in India?
1. The first part consist the current receipts and expenditure.
2. The second part consist the capital receipts and expenditure.
3. The third part consist market borrowings and grants receipts from the Union Government. Select the correct answer using the codes given below
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (a)

926. Which of the following is/are the example(s) of Transfer Payment(s)?
1. Unemployment allowance
2. Payment of salary
3. Social security payments
4. Old age pension Select the correct answer using the codes given below
(a) 1 and 3 (b) 1, 2 and 3
(c) 1, 3 and 4 (d) None of these
Ans: (d)

927. India has experienced persistent and high food inflation in the recent past. What could be the reasons?
1. As a consequence of increasing incomes, the consumption pattern of the people have undergone a significant change.
2. The food supply chain has structural constraints.
3. Due to gradual switch over to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

928. A country is said to be in a debt trap if
(a) it has to borrow to make interest payments on outstanding loans.
(b) it has to borrow to make interest payments on standing loans.
(c) it has been refused loans or aid by creditors abroad.
(d) the World Bank charges a high rate of interest on outstanding as well as new loans.
Ans: (b)

929. One which one among the following subjects the State’s Excise Duties is imposed in India?
(a) Alcoholic drinks (b) Opium
(c) Hemps (d) All of these
Ans: (d)

930. Human Development Index comprises literacy rates, life expectancy at birth and
(a) Gross Domestic Product per head in the US dollars
(b) Gross Domestic Product per head at at real purchasing power
(c) Gross National Product in US dollars
(d) National Income per head in US dollars
Ans: (b)

931. Consider the following statements
1. The Union Government of India passed the General Sales Tax in 1956.
2. The General Sales Tax in the State is imposed at special rate on the sale of goods in inter-state trade.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

932. Consider the following statements
1. The Cooporate tax is gradually decreased since the liberalisation of the Indian economy.
2. The rates of the Cooporate tax of the domestic and foreign companies are different.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

933. Which of the following Mahatama Gandhi series of currency note issued by the RBI has ‘ecology’ depicted on it?
(a) ` 500 (b) ` 100
(c) ` 50 (d) ` 5
Ans: (b)

934. Which one the following was the chairman of the committee on pricing and taxation of petroleum products?
(a) Raja J Chelliah (b) C Rangarajan
(c) Y V Reddy (d) Abid Hussain
Ans: (b)

935. Consider the following statements
1. Central Excise duty is imposed on the goods produced in the country.
2. The commodities on which State Government impose excise duties are exempted fromthe Central Excise duties.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

936. Consider the following taxes
1. Wealth tax 2. Estate duty
3. Gift tax
Which of the taxes given above is/are imposed on the property?
(a) 1 and 2 (b) Only 1
(c) 2 and 3 (d) All of these
Ans: (d)

937. Consider the following statements
1. The General Sale Tax is imposed on all the goods passing through the hands of dealer on his total turnover.
2. Selective Sales tax is imposed on the some selective article in the some states.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

938. Which one of the following taxes is posed on the commodities in the Indian economy?
(a) Taxes on Vehicles
(b) Foreign Travel Tax
(c) Inland Air Travel tax
(d) All of the above
Ans: (d)

939. Which of the following taxes are levied and collected by the union, but assigned by the state ?
1. Taxes on railway taxes and freights
2. Stamp Duties and Duties of Excise on medicinal and toilet preparations
3. Duties in respect of succession to property other than agricultural land
4. Taxes other than Stamp Duties on transactions in stock exchanges and future markets. Choose the right answer using the codes given below
(a) 1, 3 and 4 (b) 2 and 3
(c) 1, 2 and 4 (d) All of these
Ans: (a)

940. The basis of determining dearness allowance (DA) to Government employees in India is
(a) National Income
(b) Consumer Price Index
(c) Standard for living
(d) Per Capita Income
Ans: (b)

941. Consider the following statements
1. The basic defect of the Sale Tax is that it is regressive in nature.
2. The basic defect of the sales tax is that it is easily evade in the high priced goods.
Which of the statements given above is/are the main defect/defects of the Sales Tax in India?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

942. Which from the followings is NOT true when the interest rate in the economy goes up?
(a) Saving increases
(b) Lending decreases
(c) Cost of production increases
(d) Return on capital increases
Ans: (c)

943. Octroi is levied and collected by
(a) Central Government
(b) State Government
(c) Local bodies (d) Both ‘a’ and ‘b’
Ans: (c)

944. Consider the following statements
1. Interest Tax is the tax imposed on the interest income of commercial banks on their gross loans and advances.
2. Interest tax is in effect currently only in India.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

945. The Eurozone Finance Ministers and the International Monetary Fund signed a deal in Brussels to and Cyprus with a bailout worth 10 billion Euros. Which of the following is/are features of the bailout deal?
1. Cyprus agreed for increasing the nominal corporate tax rate to 112.5%. Thus increasing it by 2.5%.
2. An imposition of 9.9% apart from the bank deposits above 100000 Euros in the Banks a part from the 6.75% tax on the smaller deposits.
3. The tax on interest, which will be generated by the deposits will also be levied.
4. The tax measures will help in boosting the revenues of Cyprus a part from limiting the loan size, which is required from Eurozone. Choose the correct answer from codes given below.
(a) Only 1 (b) 2, 3 and 4
(c) 3 and 4 (d) All of these
Ans: (c)

946. Consider the following Taxes/duties
1. Stamp and Registration Duties
2. Land Revenue
3. Tax on Urban Immovable property
4. General Sales Tax
Which of the taxes/duties given above are the main sources of the revenue from the property and capital transaction of the State Government in India?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 2 and 4
Ans: (b)

947. Which one of the following is the major component of budget of the financial year of the Union Government in India?
(a) Actual figures for the preceding year
(b) Budget and revised figures for the current Year
(c) Budget estimates for the following year
(d) All of the above
Ans: (d)

948. Consider the following
1. VAT is the neutral tax since it does not influence the organisation of production.
2. VAT is easier to enforce than the Sales Tax to impose through cross-checking.
Which of the statements given above is/are correct about Value Added Tax (VAT)?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

949. In which one of the following years, the Value-Aided Tax was imposed in India except some States?
(a) 1991 (b) 1995 (c) 2005 (d) 2010
Ans: (c)

950. Consider the following sources
1. State’s share in the Central Taxes
2. Grand-in aid from the Central Government
3. States’ own non-tax revenue
Which of the sources given above is/are the important source of revenue for the States?
(a) 1 and 2 (b) Only 1
(c) 2 and 3 (d) All of these
Ans: (d)

951. Which one of the following deficits deducted the interest payments to internal and external debt from the fiscal deficit to calculate the deficit of an economy?
(a) Revenue deficit (b) Twin deficit
(c) Primary deficit (d) Budgetary deficit
Ans: (c)

952. Consider the following taxes
1. Taxes on passenger
2. Taxes on electricity consumption
3. Entertainment tax
Which of the taxes given above are the main taxes under the commodities and services in the Indian states?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

953. Which one of the following deficits of the Union Government of India which includes the market borrowing and other government liabilities only?
(a) Revenue deficit (b) Budgetary deficit
(c) Fiscal deficit (d) Primary deficit
Ans: (c)

954. Which one of the following deficits is used in the calculation of the twin/double deficit of an economy?
1. Current account deficit
2. Fiscal deficit 3. Primary deficit Select the correct answer using the codes given below
(a) 2 and 3 (b) 1 and 2
(c) 1 and 3 (d) All of these
Ans: (b)

955. Who is the Chairman of Financial Stability and Development Council ?
(a) Prime Minister of India
(b) Cabinet Secretary
(c) Chief Justice of Supreme Court
(d) Finance Minister
Ans: (d)

956. Select the correct statement/ statements related to the Central Sales Tax (CST) and the VAT (Value Added Tax) from the list given below, using the codes
1. CST is a destination based tax of the centre while VAT is an origin based tax of the states.
2. CST is inconsistent with the VAT
3. CST is a cascading type tax not rebatable against the VAT.
Codes
(a) Only 1 (b) 1 and 3
(c) Only 3 (d) 1, 2 and 3
Ans: (d)

957. Deficit financing leads to inflation in general, but it can be checked if
(a) government expenditure leads to increase in the Aggregate Supply (AS) in ratio of Aggregate Demand
(b) only aggregate demand is increased.
(c) all the expenditure is devoted to the payment of national debt.
(d) All of the above
Ans: (a)

958. Which of the following set of the canons of taxation has not been made the part of Indian tax reforms process till date? Select your answer using the codes given below
1. Equality 2. Certainity
3. Convenience 4. Economy
Codes
(a) 1 and 2 (b) 2, 3 and 4
(c) 1 and 3 (d) 1, 2, 3 and 4
Ans: (d)

959. The Union Government decided to prove a Financial Assistance of ` 41.21 crore rupees to protect pashmina goat, which produces world-famous fine luxury fibre. Which of the following is/are features of the scheme?
1. It includes assistance for foundation stock in new areas for pashmina rearing activities.
2. Inclusion of health coverage and feed supplement.
3. Strengthening of existing Fodder Bank and pashima goat breeding farm.
4. It includes establishment of multipurpose extension centre and pasture farm on migratory route. Select the answer from codes given below.
(a) 1, 2 and 3 (b) 2, 3 and 4
(c) 2 and 4 (d) All of these
Ans: (d)

960. Select the correct one/ones from the given list which belong to the non-plan expenditures of India
1. Interest payments of internal and external loans
2. Subsidies on different heads
3. Defence expenses
4. Capacity creation in the irrigation sector
Codes
(a) Only 1 (b) 1 and 2
(c) 1, 2 and 3 (d) 2 and 3
Ans: (c)

961. Which one of the following taxes will be included in the amendments of tax laws by the Direct Tax Codes in India?
(a) Income Tax
(b) Wealth Tax
(c) Dividend Distribution Tax
(d) All of the above
Ans: (d)

962. Who is the Chairman of 14th Finance Commission?
(a) AM Khusro
(b) Yaga Venugopal Reddy
(c) K Brahmananda Reddy
(d) Dr Vijay L Kelkar
Ans: (b)

963. Consider the following important sources of tax revenue for the central government.
1. Corporation tax
2. Taxes on income other than corporation tax.
3. Customs
4. Consumer price Index for urban Non – manual employees.
Which of the above indices is/are compiled by Central Statistical Organisation (CSO)?
(a) 3 and 4 (b) 1, 2 and 3
(c) Only 4 (d) 1, 2, 3 and 4
Ans: (b)

964. Consider the following statements about the Direct Tax Codes
1. The exemption limit for the senior citizens will be higher.
2. The tax imposed on women will be eliminated altogether to bring gender equality in our society.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

965. The controlling authority of government expenditure is the
(a) RBI
(b) Planning Commission
(c) Finance Ministry
(d) Finance Commission
Ans: (c)

966. Which of the following method is not used in determining National Income of a country?
(a) Income Method
(b) Output Method
(c) Input Method
(d) Investment Method
Ans: (d)

967. The Pension Fund Regulatory and Development Authority (PFRDA) has introduced chages in the new pension scheme. Which of the following is/are part of the new pension scheme?
1. The investors are allowed to opt for deferred withdrawal of their money at the time of exit, as against the current practice of phased withdrawal.
2. Subscribers can defer or time the entire lump sum withdrawal maximum of 60% at the time of exit from NPS.
3. No fresh contributions will be accepted and also no partial withdrawals will be allowed during such a period of deferment. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) 2 and 3 (d) All of these
Ans: (d)

968. Match the following
Finance Commission Chairman
A. First 1. C Rangarajan
B. Fifth 2. NKP Salve
C. Seventh 3. KC Neogy
D. Ninth 4. Mahavir Tyagi
E. Twelfth 5. JM Shelat A B C D E
(a) 3 4 5 2 1
(b) 2 3 1 4 5
(c) 5 4 3 2 1
(d) 1 2 3 4 5
Ans: (a)

969. Which one of the following is the major source at Gross Tax Revenue (GTR) for the Government at India?
(a) Income Tax (b) Corporation Tax
(c) Custom Duty (d) Service Tax
Ans: (b)

970. Which one of the following statement is incorrect?
(a) India is the third largest importer of the defence equipments
(b) India meets more than 50% of its requirement at the defence equipments through imports.
(c) Defence budget of 2015-16 accounts for less than 2% of GDP.
(d) Certain financial powers are delegated to the vice-Chief of Army staff for campital acquisitions.
Ans: (a)

971. A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rate.
2. Less equitable distribution of national chrome. Select the correct answer using the codes given below.
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)

972. Which one of the following represents a progressive tax structure?
(a) Tax rate is the same across all incomes
(b) Tax rate increases as income increases
(c) Tax rate decreases as Income increases
(d) Each household pays equal amount of tax
Ans: (b)

973. Ad hoc Treasury Bill system of meeting budget deficit in India was abolished on
(a) April 1, 1992
(b) April 1, 1994
(c) March 31, 1996
(d) March 31, 1997
Ans: (d)

974. Which one of the following is not a recommendation of the 14th Finance commission?
(a) Share at states in central Divisible pool is increased from 32% to 42%.
(b) Area under forest cover is an important variable in distribution of states share among states.
(c) Fiscal discipline is dropped as a variable in distribution of states share among states.
(d) Sector specific grant is recommended as in the previous Finance Commissions.
Ans: (d)

975. Which one among the following is not a source of tax revenue for the central government in India?
(a) Income tax (b) Customs duties
(c) Service tax (d) Motor vehicle tax
Ans: (d)

976. Corporation tax is imposed by
(a) State Government
(b) Central Government
(c) Local Government
(d) State as well as Central.
Ans: (b)

977. Service tax in India was introduced in the year
(a) 1994-95 (b) 1996-97
(c) 1998-99 (d) 1991-92
Ans: (a)

978. There has been a persistent deficit budget year after year, which of the following actions can be taken by the government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalising subsidies
4. Expanding industries
(a) 1 and 3 (b) 2 and 3
(c) Only 1 (d) 1, 2, 3 and 4
Ans: (a)

979. Interest Payment is an item of
(a) Revenue expenditure
(b) Capital expenditure
(c) Plan expenditure
(d) None of the above
Ans: (a)

980. Effective Revenue Deficit was introduced in the Union Budget of
(a) 2010-11 (b) 2011-12
(c) 2009-10 (d) 2012-13
Ans: (d)

Part 10 Inflation and Subsidies
981. Which one of the following factors leads to the Agflation in an economy?
(a) Inflation led by rises in the Black economy
(b) Deflation led by declines in agricultural commodity prices
(c) Inflation led by rises in agricultural commodity prices
(d) None of the above
Ans: (c)

982. Consider the following statements
1. Headline inflation is a measure of the total inflation within an economy.
2. Headline inflation is affected by areas of the market which may experience sudden inflationary spikes such as food, vegetables or energy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

983. Economic growth is usually coupled with
(a) deflation (b) inflation
(c) stagflation (d) hyper inflation
Ans: (b)

984. Consider the following items
1. Food products
2. Energy
Which of the items given above are mainly responsible for the Core Inflation?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

985. A rapid increase in the rate of inflation is sometimes attributed to the ‘Base Effect’. What is the ‘Base Effect’ ?
(a) It is the impact of drastic deficiency in supply due to failure of crops.
(b) It is the impact of the surge in demand due to rapid economic growth.
(c) It is the impact of price levels of the previous year on the calculation of inflation rate.
(d) None of the above
Ans: (c)

986. Consider the following statements
1. Deflation is a decrease in the general price level of goods and services.
2. Deflation is the negative inflation rate which falls below 0%.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

987. Consider the following factors
1. Deficit financing
2. Black money in an economy
3. High rate of population growth
Which of the factors given above are responsible for the Demand-Pull inflation in an economy?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

988. Which of the following statements is/are correct?
1. High growth will led to inflation.
2. High growth will lead to deflation. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

989. To convert GDP at market prices into factor cost we need to
(a) deduct indirect taxes and added subsidies from it
(b) subtract subsidies from it and add indirect taxes to it
(c) deduct indirect taxes and subsidies from it
(d) deduct weight of inflation for the period from it
Ans: (a)

990. Consider the following statements about the Inflation
1. Inflation can lead to inequality in the distribution of income in an economy.
2. Inflation can lead to recession in the many sectors of an economy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

991. Which one of the following has been the main measure of the rate of inflation in India?
(a) Consumer Price Index
(b) Consumer Price Index-Industrial worker
(c) Consumer Price Index-Agricultural labour
(d) Wholesale Price Index
Ans: (d)

992. Consider the following services/ goods
1. Police
2. National defence
3. Tax subsidies
Which of the services/goods given above is/are included in the ‘public goods’ of an economy?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

993. The existence of a parallel economy/ black money
(a) makes the economy more competitive.
(b) makes the monetary policies less effective.
(c) ensures a better distribution of income and wealth.
(d) ensures increasing productive investment.
Ans: (b)

994. Consider the following statements
1. Disinflation is a decrease in the rate of inflation.
2. In the disinflation, the inflation is falls below the zero per cent level.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

995. With reference to Indian economy, consider the following statements
1. Three types of Consumer Price Index are used in the determination of Consumer Price Index.
2. Consumer Price Index of Industrial Worker and Consumer Price Index of Rural Labour has given same weight in the determination of inflation.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

996. Which one of the following is related with the core inflation of an economy?
(a) Inflation which excludes certain items that face volatile price movements
(b) Inflation which includes certain items that face volatile price movements
(c) Inflation due to rise in the production of non-agricultural products
(d) Both ‘a’ and ‘b’
Ans: (a)

997. Consider the following statements
1. In the disinflation the prices are still rising during disinflation but at a lower rate.
2. Deflation results into a sustained increase in the real value of money and other monetary items.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

998. Which one of the following is correct about the Phillips Curve of an economy?
(a) An inverse relationship between the rate of unemployment and the rate of inflation
(b) A directly proportionate of the rate of unemployment and the rate of the inflation
(c) An inverse relationship between the rate of GDP growth and the rate of inflation
(d) A directly proportionate of the rate of unemployment and the rate of the unemployment
Ans: (a)

999. Consider the following statements
1. Headline inflation may not present an accurate picture of the current state of the economy.
2. Inflationary spikes occur when a particular section of the economy experiences a sudden price rise.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1000. Which one of the following is commonly occurred in the biflation in an economy?
(a) Inflation (b) Deflation
(c) Disinflation (d) Both ‘a’ and ‘b’
Ans: (d)

1001. Which one of the following is likely to be the most inflationary, in its effect?
(a) Repayment of public debt
(b) Borrowing from the public to finance a budget deficit
(c) Borrowing from banks to finance a budget deficit
(d) Creating new money to finance a budget deficit
Ans: (d)

1002. 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)

1003. Which one of the following inflations is the type of inflation that results frompast events and persists in the present?
(a) Hyperinflation (b) Sogflation
(c) Built-in inflation (d) Biflation
Ans: (c)

1004. Consider the following statements
1. Tobin tax is a tax on all spot conversions of one currency into another.
2. Tobin tax is a currency transaction tax to find a way to manage exchange-rate volatility.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1005. Which one of the following factors can cause the Cost-Push inflation in an economy?
(a) Oil price shocks in the world
(b) Fluctuation in the production of food-grains
(c) Imposition of high commodity taxes
(d) All of the above
Ans: (d)

1006. Consider the following services/ goods
1. Universalisation of Secondary Education.
2. Cleaning of Ganga and Yamuna Rivers.
3. Polio Vaccination.
Which of the services/goods given above are merit goods of an economy?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

1007. Which one of the following laws stated that the size of a firm and its growth rate are independent?
(a) Gibrat’s law
(b) Goodhart’s law
(c) Hubbert’s law
(d) None of the above
Ans: (a)

1008. With reference to inflationary indices, consider the following statements
1. At present theWPI for all commodities including manufactured products is released only on a monthly basis in India.
2. International practice for reporting CPI inflation is also on a monthly basis.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1009. Which one of the following coin the term ‘Stagflation’ in the economy?
(a) Iain Macleod (b) Milton Friedman
(c) J M Keynes (d) William Phillips
Ans: (a)

1010. Consider the following statements
1. Short-term Phillips Curve looked like a normal Phillips Curve.
2. In long-term Philips Curve, a single rate of unemployment was consistent with a stable inflation rate.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1011. Which one of the following goods/ services is not the non-merit good/ service of an economy?
(a) Fertiliser subsidies
(b) Priority sector loans/lending
(c) Tax exemption on medical expenses
(d) Subsidies on road and bridges constructions
Ans: (d)

1012. Which of the following statements is/are true with respect to Phillips Curve?
1. It shows the trade-off between unemployment and inflation.
2. The downward sloping curve of Phillips Curve is generally held to be valid only in the short run.
3. In the long run, Phillips Curve is usually thought to be horizontal at the Non-Accelerating Inflation Rate of Unemployment (NAIRU). Select the correct answer using the codes given below
(a) Only 1 (b) 2 and 3
(c) 1 and 2 (d) 1, 2 and 3
Ans: (d)

1013. Consider the following statements about the measurement of the Inflation
1. Prices of the items of particular sets are compared to prices of items of five year ago.
2. Inflation is measured based on the Consumer Price Index (CPI) which measures the change in prices of a selection of goods at retail rates.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

1014. Which one of the following consequences can be observed when there is an undue expansion or increase of the money supply in an economy?
(a) Headline inflation
(b) Chronic deflation
(c) Chronic inflation
(d) Core inflation
Ans: (c)

1015. Consider the following statements regarding the determination of inflation in India
1. Food price index consists of two subcomponents, namely primary food articles and manufactured food products.
2. The weight of the primary food articles is less than the manufactured food products.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1016. Which one of the following measures is generally used the government to contain the recession of the economy?
(a) Increasing money supply
(b) Increasing government spending
(c) Decreasing taxation
(d) All of the above
Ans: (d)

1017. Consider the following items
1. Sugar
2. Sugarcane
3. Vegetable oils
Which of the items given above is/are the essential commodities under the Essential Commodities Act, 1955?
(a) Only 1 (b) 1 and 3
(c) 2 and 3
(d) All of the above
Ans: (d)

1018. Consider the following statements
1. Inflation benefits the debtors.
2. Inflation benefits the bondholders.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1019. Consider the following statements
1. Inflation swap is an over-the-counter and exchange-traded derivative that is used to transfer inflation risk from one counter party to another.
2. Limited price inflation swaps are inflation swaps which are capped and floored between 0% and 5%.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1020. Gross National Product at market prices is defined as
(a) the market value of all final goods and services produced in an economy taking into account Net Factor Income from Abroad.
(b) the market value of all final goods and services produced in an economy.
(c) the market value of all final goods and services produced in an economy plus indirect taxes.
(d) the market value of all final goods and services produced in an economy plus indirect taxes minus subsidies.
Ans: (a)

1021. Which of the following factors led to a decline in inflation rate in India during 2014-15?
1. Persistent decline in crude oil prices
2. Softness in global prices of tradables such as edible oils and coal
3. Tight monetary policy pursued by the Reserve Bank of India Select the correct answer using the codes given below
(a) Only 1 (b) 1 and 2
(c) 2 and 3 (d) 1, 2 and 3
Ans: (d)

1022. Which one of the following statements is/are correct about the determination of inflation in India?
(a) The overall weight of the composite food index in theWPI is around 50%.
(b) The weight of primary food articles is around 15% in the WPI.
(c) The weight of manufactured food products is less than 10%.
(d) Both ‘b’ and ‘c’ are correct.
Ans: (d)

1023. Which of the following income groups has/have benefits during inflation?
1. Business community
2. Fixed income groups
3. Farmers
4. Investors (who invest in debentures) Select the correct answer using the codes given below
(a) 1 and 4 (b) 1 and 3
(c) 2 and 4 (d) All of these
Ans: (b)

1024. ‘World Development Report’ is an annual publication of
(a) United Nations Development Programme
(b) International Bank of Reconstruction and Development
(c) World Trade Organisation
(d) International Monetary Fund
Ans: (b)

1025. Consider the following statements
1. Paul A Samuelson is credited as the first economist to develop the theory of public goods.
2. Public good is a good that is non-rival and non-excludable.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1026. A rise in general level of prices may be caused by
1. an increase in the money supply.
2. a decrease in the aggregate level of output.
3. an increase in the effective demand. Select the correct answer using the codes given below
(a) Only 1 (b) 1 and 2
(c) 2 and 3 (d) All of these
Ans: (d)

1027. With reference to inflation in India, which of the following statement is correct?
(a) Controlling the inflation in India is the responsibility of the Government of India only.
(b) the Reserve Bank of India has no role in controlling the inflation.
(c) Decreased money circulation helps in controlling the inflation.
(d) Increased money circulation helps in controlling the inflation.
Ans: (c)

Part 11 Infrastructure
1028. Consider the following statements
1. National Highways comprise 20% of the total length of roads.
2. National Highways carry over 40% of the total traffic across the length and breadth of the country.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1029. With what purpose is the Government of India promoting the concept of ‘Mega Food Park’?
1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to entrepreneurs.
Which of the statements given above is/are correct?
(a) Only 1 (b) 1 and 2
(c) 2 and 3 (d) All of these
Ans: (a)

1030. Which of the following is true about the National Investment and Infrastructure Fund?
1. Established by Union Government as a Category II Alternate Investment Fund.
2. Main objective is to maximise economic growth of the country through infrastructure development.
3. For the investment purpose, NIIF will solicit equity participation from strategic anchor partners.
4. The establishment of UAE-India Investment Fund facilitates for mobilisation of long-term investments on infrastructure. Choose the correct answer using the codes given below
(a) 1, 2 and 3 (b) 1, 2 and 4
(c) 1, 2, 3 and 4 (d) 2 and 4
Ans: (c)

1031. Consider the following statements
1. Green bond is a debt instrument with which a bond issue gets capital while the investors receive fixed income in the form of interest.
2. The issue of Green bond gets capital from the investors only if the investment is being raised to fund ‘green’ projects relating to renewable energy or emission reductions etc.
Which of the above statements is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1032. Consider the following statements
1. Ultra Mega Power Projects (UMPPs) are coal-based super critical power projects.
2. UMPPs are capable of generating about 400 MWwith each project.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1033. Consider the following statements
1. Less than 70% of the country’s trade by volume is moved by sea.
2. India has the largest merchant shipping fleet among the developing countries.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1034. Which one of the following sequences is the correct sequence about the power generation by power sources?
1. Hydroelectric 2. Nuclear
3. Thermal 4. Bhutan import Select the correct answer from the codes given below
(a) 1, 3, 2, 4 (b) 1, 3, 4, 2
(c) 3, 2, 1, 4 (d) 3, 1, 2, 4
Ans: (d)

1035. Consider the following statements
1. NTPC is the largest power utility in India.
2. ONGC accounts for half of the LPG production in India.
3. IOC operates all the refineries in India.
4. The India Ordinance Factory is the largest departmentally run industrial undertaking in the country.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 1 and 4
Ans: (d)

1036. Which one of the following statements is/are correct about the Pradhan Mantri Gram Sadak Yojana (PMGSY)?
(a) It provides connectivity to all the unconnected habitations of more than 1000 persons in the rural areas by good quality all-weather roads.
(b) It was launched in 2005 as a fully funded centrally sponsored scheme.
(c) It provides connectivity to all unconnected habitations of more than 250 persons in the hilly and desert areas by good quality all-weather roads.
(d) Both ‘a’ and ‘c’
Ans: (c)

1037. Consider the following statements
1. In India, the railway finance remains separated from general revenues since 1924-25.
2. Indian Railway exports rolling stock to other countries and non-railway customers.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1038. Which one of the following areas is associated with Shale gas which is estimated to be abundantly found in India?
(a) Off-shore rocks
(b) Ignitious rocks
(c) Sedimentary rocks
(d) Marsh land
Ans: (c)

1039. Consider the following statements with regard to the first Renewable Energy Global Investors Meet and Expo(2015)
1. This is a follow – up the ‘Make in India’ initiative.
2. The central theme of the meet is to attract large scale investments in the renewable energy sector in India.
Which of the statements is given above is/are correct ?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1040. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?
1. It is a Public Limited Government Company.
2. It is a Non-banking Financial Company. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1041. Which one of the following institutions implements the insurance schemes like Suraksha (Whole Life Assurance), Suvidha (Convertible Whole Life Assurance) and Santosh (Endowment Assurance)?
(a) Life Insurance Corporation
(b) General Insurance Corporation
(c) Commercial Banks
(d) Indian Posts
Ans: (d)

1042. Consider the following statements
1. Airports Authority of India (AAI) was constituted by merging National Airports Authority (NAA) and International Airports Authority of India (IAAI).
2. Airports Authority of India (AAI) maintains and operates around 125 airports.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1043. Which one of the following schemes subsumed the Valmiki Awas Yojana?
(a) Integrated Housing and Slum Development Programme (IHSDP)
(b) Sampoorna Grameen Swarozgar Yojana (SGSRY)
(c) Rajiv Awas Yojana (RAY)
(d) Integrated Rural Development Programme (IRDP)
Ans: (a)

1044. The Central Government is responsible for development and maintenance of the National Highways system.
1. National Highways Authority of India (NHAI)
2. State Public Works Departments (PWDs)
3. Border Road Organisation (BRO)
Which of the above agencies are participated in carrying out development and maintenance work of National Highways?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

1045. Which one of the following bodies/agencies implements the largest National Highways Development Project (NHDP) in the country?
(a) BRO (b) CPWD
(c) NHAI (d) None of these
Ans: (c)

1046. Consider the following statements
1. The Shipping Corporation of India Ltd (SCI) is a Navratna Public Sector Company.
2. The status of SCI has changed from a private limited company to public limited from 1992.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1047. Which of the following statements with regard to the proposed Asian Infrastructure Investment Bank is/are correct?
1. India is one of the founding members of the bank.
2. The bank is to be headquartered in Shanghai. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1048. How much percentage of the cost incurred in the Indira Awas Yojana Scheme for rural housing is shared between Centre and States?
(a) 50 : 50 (b) 65 : 35
(c) 75 : 25 (d) 90 : 10
Ans: (c)

1049. Which one of the following is the best source of generating electricity in India from the view point of sustainable development?
(a) Coal
(b) Mineral oil and gas
(c) Hydro-electricity (d) Atomic energy
Ans: (c)

1050. Which one of the following sequences is the correct sequence about the uses of raw material for the thermal power generation from highest to lowest?
1. Gas turbine 2. Lignite
3. Coal 4. Diesel Select the correct answer from codes given below
(a) 1, 3, 2, 4 (b) 1, 3, 4, 2
(c) 3, 2, 1, 4 (d) 3, 1, 2, 4
Ans: (d)

1051. Which one of the following is not an important industry of Chhattisgarh from the point of view of production?
(a) Iron and Steel (b) Cement
(c) Chemical (d) Aluminium
Ans: (c)

1052. Consider the following statements
1. Cochin Shipyard is the largest shipyard in the country.
2. Garden Reach Shipbuilders & Engineers Limited (GRSE) is a Mini-Ratna company.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1053. Which kind of power accounts for the largest share of power generation of India?
(a) Hydro-electricity (b) Thermal
(c) Nuclear (d) Solar
Ans: (b)

1054. Which one of the following maintains the Rural Infrastruture Development Fund established in 1995-96?
(a) Reserve Bank of India
(b) State Bank of India
(c) Regional Rural Banks
(d) National Bank for Agriculture and Rural Development
Ans: (d)

1055. Consider the following statements
1. Golden Quadrilateral is a National Highway Development Project connecting Delhi, Pune, Chennai and Kolkata.
2. North-South Corridor which comprises 4-laning of National Highways connecting Srinagar to Kanyakumari vla Cochin-Salem.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1056. Consider the following statements
1. The NTPC was incorporated in November, 1975 and is a Navratna Company.
2. NTPC Limited is the single largest power generator in India.
3. NTPC accounts for 28.60% of the entire electricity generated in the country. Find the correct code from below
(a) 1, 2 (b) 2, 3
(c) 1, 3 (d) 1, 2 and 3
Ans: (d)

1057. Which one of the following is the objective of the Special Accelerated Road Development Programme for North-East Region (SARDPNE)?
(a) To improve the road connectivity to remote places and places of strategic importance in NE region
(b) To establish the 4-lane ring-ring model of highways connection all state capitals of NE region
(c) To upgrade National Highways connecting all State Capitals to 2/4 lane and provide connectivity of state district headquarters
(d) Both a and c
Ans: (d)

1058. The Oil and Natural Gas Commission was set-up in
(a) 1956 (b) 1957
(c) 1959 (d) 1965
Ans: (a)

1059. Consider the following statements
1. India is the 17th largest maritime country in the world.
2. The ministry of shipping have set up an Indian Maritime University (IMU) in Chennai.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1060. Consider the following statements
1. India has 22 major ports and about 200 non-major ports.
2. Ennore port is not included in the major port category.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

1061. The Union Railway Ministry has launched an application namely ‘Project Management and Information System’ (PMIS). What is the main objective of this application?
(a) Proper monitoring of power projects throughout the country
(b) Proper monitoring of irrigation facilities
(c) Proper monitoring of all the railway projects
(d) Proper monitoring of road accidents throughout the nation
Ans: (c)

1062. Which is the first hydro power plant in India?
(c) Kerala
(d) Darjeeling
(a) Himachal Pradesh
(b) Jammu Kashmir
Ans: (b)

1063. Which one of the following departments of the Indian Government carry out the online domestic money transmission service, Instant Money Order (IMO)?
(a) Commercial Banks
(b) Regional Rural Banks
(c) Indian Postal system
(d) None of the above
Ans: (c)

1064. Where was the electricity supply first introduced in India?
(a) Kolkata (b) Chennai
(c) Mumbai (d) Darjeeling
Ans: (d)

1065. Which of the railway lines is opened by Prime Minister Narendra Modi recently in Jammu and Kashmir?
(a) Katra-Udhampur Railway line
(b) Katra-Banihal Railway line
(c) Banihal-Baramulla Railway line
(d) None of them
Ans: (a)

1066. Which one of the following is related with Bharat Nirman Scheme?
(a) Foodgrain production self sufficiency
(b) Family welfare programme
(c) Infrastructure development
(d) Employment generation programme
Ans: (c)

1067. Which committee is appointed on Revisiting and Revitalising the PPP Model?
(a) Tendulkar Committee
(b) Vijay Kelkar Committee
(c) Mittal Committee
(d) None of the above
Ans: (b)

1068. Which one of the following regions of India is not connected to the Integrated Power Transmission Grid ‘National Grid’ synchronously?
(a) Northern region (b) Eastern region
(c) North-Eastern region
(d) Southern region
Ans: (d)

1069. Which of the following is/are the recommendations of Vijay Kelkar Committee on Revisiting and Revitalising the PPP Model?
1. Strengthening of 3 main pillars of the PPP framework viz Governance, Institutions and Capacity.
2. The Prevention of Corruption Act, 1988 should be amended at the earliest.
3. After competition of the projects, equity in the project may be offered to long-term investors including overseas institutional buyers.
4. Independent sectoral regulators should be set up as and when a new sector is declared to adopt PPP model, the regulators should follow a unified approach. Choose the right answer from the following codes
(a) 1, 2 and 4 (b) 2, 3 and 4
(c) 1, 2 and 3 (d) All of these
Ans: (d)

1070. Which one of the following sectors of the Indian Economy established a committee under Sam Pitroda to implement smart grid to predict and intelligently respond to the behaviour and actions of all users connected to it?
(a) Telecom sector
(b) Electricity sector
(c) Transport sector (d) Banking sector
Ans: (b)

1071. Consider the following statements
1. In the Eleventh Five Year Plan, the capacity addition of electricity generation in power sector is more than the target set in the plan.
2. The electricity generated from the nuclear power plant in India is more than 25% of the total power generation.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

1072. Consider the following statements
1. Coal-fired plants account for 55% of India’s installed electricity capacity.
2. Thermal power plants constitute 75% of the installed capacity of electricity in India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1073. Consider the following statements about the Indian Postal Services of the Indian Postal System?
1. The first-class mails are airlift without any surcharge.
2. Second-class mail such as book packets, registered newspapers and periodicals are carried by surface transport.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1074. Which one of the following features of the Indian Postal Systemis not correct?
(a) A post office on an average in India serves an area of more than 20 sq km.
(b) A post office on an average in India serves a population of more than 7000.
(c) After China, India has the largest postal network in the world.
(d) The postal system in India was established by Lord Clive in the year 1766.
Ans: (c)

1075. Consider the following components
1. Bring an additional one crore hectares under assured irrigation.
2. To provide road connectivity to all villages that has a population of 2000.
3. To give telephone connectivity to the remaining villages.
Which of the components given above is/are included in the Bharat Nirman Scheme?
(a) 1, 2 and 3 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (c)

1076. Which kind of the power accounts for the largest share of power generation in India?
(a) Nuclear (b) Hydro-electricity
(c) Thermal (d) Solar
Ans: (c)

1077. Which one of the river basins has the highest potential for the Hydel Power?
(a) Brahmaputra basin
(b) Ganga basin
(c) East flowing rivers of South India
(d) West flowing rivers of South India
Ans: (a)

1078. Which one of the following is not a nuclear power centre?
(a) Narora (b) Kakrapara
(c) Chamera (d) Kota
Ans: (c)

1079. Consider the following statements
1. In India more than 90% of the coal produced is of non-cooking coal type.
2. International Coal Ventures Limited (ICVL) is a Special Purpose Vehicle (SPV) formed for the acquisition of coal resources abroad.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1080. Among other things, which one of the following was the purpose for which Deepak Parekh Committee was constituted?
(a) To study the current socio-economic conditions of certain minority communities
(b) To suggest measures for financing the development of infrastructure
(c) To frame a policy on the genetically modified organisms
(d) To suggest measures to reduce the fiscal deficit in the Union budget
Ans: (b)

1081. Consider the following statements
1. In India, more than 50% of total track kilometre of Railway is electrified.
2. The Railway network in India is divided into 16 zones.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

1082. With reference to India, which one of the following statements is not correct?
(a) IPCL is the largest Indian petrochemical company.
(b) Reliance is the largest private sector company in India.
(c) MTNL is listed of NYSE.
(d) BSNL is the first telecom service organisation in India to launch a nationwide cellular service at once.
Ans: (a)

1083. Which one of the following service organisations is the subsidiary of the National Civil Aviation India Limited (Air India)?
(a) Alliance Air
(b) Air India Charters Limited
(c) Inter Globe Aviation Limited
(d) Both ‘a’ and ‘b’
Ans: (d)

1084. Which one of the following shares of the total traffic is handled by major ports in India?
(a) Around 50%
(b) Around 60%
(c) Around 75%
(d) Around 85%
Ans: (c)

1085. Consider the following statements.
1. The major ports of India are managed by the Port Trust of India under Central Government Jurisdiction.
2. The minor ports are managed by the Central Government with assistant of the respective State Governments.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1086. Which one of the following statements is incorrect?
(a) Power generation capacity addition during the XI Plan would be about 74000 MW.
(b) In its mid-term review, the Planning Commission had reduced power generation capacity addition target by over 20% to 62374 MW, from 78577 MW.
(c) During the X Plan 21080 MW was added against the target of 41000 MW.
(d) ‘Bachat Lamp Yojana’ was launched with incandescent bulbs are replaced by energy efficient CFL’s bulbs in the country. This will result in a saving of 5000 MW of power.
Ans: (d)

1087. Consider the following statements
1. The acquisition of overseas oil and gas has been primarily spearheaded by Indian Oil Corporation Limited (IOCL).
2. Gujarat State Petroleum Corporation (GSPC), a Government of Gujarat enterprise has also acquired overseas hydrocarbon-bearing assets.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1088. What is the position of India in the term of proven coal reserves in the world?
(a) First (b) Second
(c) Third (d) Fourth
Ans: (d)

1089. Which one of the following ports is not the major port of India?
(a) Port Blair Port
(b) Ennore
(c) Paradeep
(d) None of these
Ans: (d)

1090. Which one of the following contributes the maximum earnings in Indian Railways?
(a) Passenger earning
(b) Goods traffic earning
(c) Sundry earning
(d) Other coach earning
Ans: (b)

Part 12 Services Sector
1091. Which one of the following services is included in the services sector of Indian Economy?
(a) Transport, storage, and communication
(b) Financing, insurance, real estate, and business services
(c) Community, social, and personal services
(d) All of the above
Ans: (d)

1092. Which one of the following cities is identified as the hottest (i.e. first ranking) outsourcing destination in the world?
(a) Dublin, Ireland
(b) Bengaluru, India
(c) Makati City, the Philippine
(d) Tokyo, Japan
Ans: (b)

1093. Consider the following statements
1. In the last decade, India is second to China in the developing countries in the terms of Compounded Annual Growth Rate (CAGR) in services sector.
2. In the last decade, Russia had higher Compounded Annual Growth Rate (CAGR) in services sector than India.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1094. Consider the following statements about an economy
1. When a country progresses further, the manufacturing sector takes a back seat and give a way to the services sector in terms of both output and employment.
2. When a country progresses further manufacturing sector become increasingly service centric.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1095. In which area is the Public sector the most dominant in Indian Economy?
(a) Transport
(b) Steel production
(c) Commercial banking
(d) Trade and hotels
Ans: (c)

1096. Which one of the following countries has the highest percentage share of services sector in the country’s GDP?
(a) China (b) Japan
(c) Brazil (d) India
Ans: (b)

1097. Indian Air Force has launched its Electronic Maintenance Management System (e-MMS) project. Which of the following is true about this system?
1. The project has been designed and developed by the Indian IT giant Wipro.
2. It seeks to seamlessly connect squadrons, wings, commands and Air Headquarters after implementation.
3. It will help to transform work environment of IAF to become more efficient.
4. The e-MMS system has a central console that will help IAF to get rid of paper works and heavy log books. Choose the right answer using the following codes
(a) 1 and 4
(b) 1, 2, 3 and 4
(c) 2, 3 and 4
(d) None of the above
Ans: (b)

1098. Which one of the following sub-sector of the Services sector in India has contributed the highest per cent in the annual growth rate of the GDP?
(a) Real estate, ownership of dwellings, and business services
(b) Community, social, and personal services
(c) Transport, storage, and communication
(d) Trade, hotels, and restaurants
Ans: (d)

1099. The Union Cabinet has appraised of the MoU for promoting bilateral cooperation in the field of Information Communication Technology with Qatar Government in
(a) May 2016 (b) April 2016
(c) March 2014 (d) March 2015
Ans: (d)

1100. The RBI will shortly issue bank notes of 1000 rupees denominations with inset letter ‘R’ in both the number panels. These notes will issue in
(a) Mahatma Gandhi series – 1990
(b) Mahatma Gandhi series – 2005
(c) Mahatma Gandhi series – 2000
(d) Mahatma Gandhi series – 1999
Ans: (b)

1101. Which of the following is true about Second Liquid Chemical Berth of Mumbai Port Trust (MbPT) at Pair Pau?
1. It is a modern state of art facility built at an expense of 127 crore rupees.
2. It is equipped with quick release mooring hooks and also with 4 mooring dolphins.
3. It is designed to handle 550000 WT vessels carrying liquid bulk chemicals.
4. It has been designed to keep in view the safety standards conforming to the oil industry safety directorate norms. Choose the right answer from the following Codes.
(a) 1, 2, 3 and 4
(b) 1, 3 and 4
(c) 2, 3 and
(d) 1, 2 and 3
Ans: (a)

1102. Which one of the following services of the Indian Economy has the highest percentage of share in the Services sector export?
(a) Computer software
(b) Financial and non-financial
(c) Computer hardware
(d) Legal consultancy
Ans: (a)

1103. Consider the following sectors of the Indian economy with respect to share of employment
1. Agricultural Sector
2. Industrial Sector 3. Services Sector Arrange these sectors from the highest to lowest in the term of share of employment and select the correct answer using the codes given below
(a) 1, 2, 3 (b) 1, 3, 2
(c) 3, 1, 2 (d) 3, 2, 1
Ans: (b)

1104. Consider the following statements about The ‘Top Five Sectors’ of the Services sector of Indian economy
1. Finance and non-finance
2. Telecommunication
3. Computer software and hardware
4. Hospital and diagnostic centres/services
5. Construction activities
Which of the Services sector given above are included in the ‘Top Five Services Sector’ of the Indian economy?
(a) 1, 2, 3 and 5 (b) 1, 3, 4 and 5
(c) 1, 2, 3 and 4
(d) All of the above
Ans: (c)

1105. Which one of the following ranges is the percentage of the services sector’s contribution to the GDP at the factor cost excluding the construction activities of the Indian economy?
(a) 40 to 45 (b) 45 to 50
(c) 50 to 55 (d) 55 to 60
Ans: (c)

1106. Which one of the following services of Services sector of the Indian economy has the highest growth rate in the Eleventh Five Year Plan?
(a) Banking and Insurance
(b) Public Administration and Defence
(c) Hotels and Restaurants
(d) Communication
Ans: (d)

1107. Consider the following statements
1. In Private sector banking 100% Foreign Direct Investment through automatic route in India is allowed.
2. Foreign Direct Investment is not allowed in real estate business in Indian economy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both and 2 (d) Neither 1 nor 2
Ans: (d)

1108. What is the contribution of Services sector to employment generation in India?
(a) 40% (b) 56%
(c) 15% (d) 23%
Ans: (d)

1109. Consider the following statements
1. Software is one sector in which India has achieved a remarkable global brand identity.
2. The contribution of the services sector to the national economy, both in terms of value addition and employment generation is growing over the years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1110. Consider the following statements
1. 74% Foreign Direct Investment in Insurance sector in Indian economy is allowed with subject to licensing by the Insurance Regulatory and Development through automatic route.
2. Insurance is included in the secondary sector of Indian economy.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

1111. Consider the following statements about Indian economy
1. Indian Government has initiated measures like bringing acquisition of all types of ships under open general licence.
2. Indian Government has allowed 100% FDI in the shipping and port sectors.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1112. Consider the following statements about Indian shipping industry
1. 95% of the country’s trade by volume is being transported by sea.
2. China is around three times higher than India in the shipping tonnage (capacity).
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1113. Which one of the following areas is related with the Grameen Bhandaran Yojana launched by Indian Government?
(a) Construction of warehousing infrastructures
(b) Construction of National Highways
(c) To facilitate financial inclusion
(d) None of the above
Ans: (a)

1114. Which one of the following agencies of the Indian Government launched the Grameen Bhandaran Yojana?
(a) RBI
(b) SEBI
(c) NABARD
(d) None of the above
Ans: (c)

1115. India’s rank in the World Service Output is
(a) 13th (b) 15th
(c) 21st (d) 10th
Ans: (b)

1116. Which one of the following services of the Services sector in the Indian Economy contributed the highest percentage in the Gross Domestic Product at the Factor Cost in the last ten years?
(a) Hotels and restaurants
(b) Railways transport
(c) Banking and insurance
(d) Trade
Ans: (d)

1117. Which one of the following countries has not been included in the Visa-on-Arrival scheme started along with the continuation of promotional efforts under the Incredible India Campaign by the Government of India for tourists?
(a) Singapore
(b) Finland
(c) Japan
(d) All of the above
Ans: (d)

1118. Consider the following statements
1. Tourism plays an important role in the country’s foreign exchange earnings in the Indian economy.
2. Domestic tourism plays an important role than the foreign tourism in overall tourism development in the country.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1119. Which one of the following is not a part of Services sector in India?
(a) Transport
(b) Construction
(c) Hotels and restaurants
(d) Insurance
Ans: (b)

1120. Consider the following statements
1. In India, imposition of taxes on the services as a separate services taxes has been started since independence.
2. BPO, ITeS and Software Products are only taxed by the Indian Government under Services Taxes.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (d)

1121. Consider the following compounded annual growth rate of the major components of the Services sector in the Eleventh Five Year Plan
1. Software Products
2. Business Process Outsourcing (BPO)
3. Engineering Services
4. IT Services
Which of the following is the correct sequence (the highest to the least) of the compounded annual growth rate for the major component of the Services sector in the Eleventh Five Year Plan
(a) 1, 2, 3, 4
(b) 1, 3, 4, 2
(c) 3, 2, 4, 1
(d) 3, 2, 1, 4
Ans: (d)

1122. Consider the following major components of the ITES industry
1. IT Services
2. Business Process Outsourcing (BPO)
3. Engineering Services and R&D
4. Software Products
Which of the statements given above are the major components of the ITES, Industry in India?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2, 3 and 4 (d) 1 and 2
Ans: (a)

1123. Which one of the following percentage of Foreign Direct Investment (FDI) is allowed in the Indian entities publishing newspapers and periodicals dealing with news and current affairs?
(a) 26% (b) 49% (c) 74% (d) 100%
Ans: (a)

1124. With reference to India, consider the following statements about the cultural services of the economy
1. Indian filmindustry is the largest in the world.
2. High rates of entertainment tax and lack of uniformity in tax structure across states are major factors inhibiting growth of the film industry.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1125. Which one of the following areas is related with the ‘RESIDEX’ indices formulated for the Services sector of the Indian economy?
(a) Share prices in the stock exchanges
(b) Mutual fund prices in the Indian capital markets
(c) Speculative spot prices in commodities markets
(d) Land prices in the real estate sector
Ans: (d)

1126. Which one of the following states has the highest share of the Services sector in the Gross State Domestic Product in India?
(a) Maharashtra (b) Goa
(c) Haryana (d) Tamil Nadu
Ans: (a)

1127. Which one of the following is the correct sequence of employment generation by the different sectors of Indian Economy?
(a) Primary > Secondary > Tertiary
(b) Primary > Tertiary > Secondary
(c) Tertiary > Primary > Secondary
(d) Tertiary > Secondary > Primary
Ans: (b)

Part 13 Foreign Trade & International Organisations
1128. Which among the following statements is/are true with regards to WTO membership?
1. All WTO members automatically receive the ‘most favourable nation’ status.
2. Over 75% ofWTO members are from developing countries, and the membership allows them access to develop markets at lower tariff.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1129. Which one of the following organisations is related with NAMA?
(a) IMF (b) World Bank
(c) WTO (d) IFC
Ans: (c)

1130. Regarding the International Monetary Fund (IMF), which one of the following statements is correct?
(a) It can grant loans to any country.
(b) It can grant loans to only developing countries.
(c) It can grant loans to only member countries.
(d) It can grant loans to the Central Bank of a country.
Ans: (c)

1131. With reference to India’s International trade, consider the following statements
1. For more than a decade, Indian export growth story has been dominated by the Services sector.
2. More than 75% of Indian export of services commodities is mainly software services.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1132. Which one of the following group of countries has formed the NAMA-11 of World Trade Organisation?
(a) Developed countries
(b) Least developing countries
(c) Developing countries
(d) None of the above
Ans: (c)

1133. Which one of the following export items of India has the highest share in the world in the last five years?
(a) Diamonds
(b) Oil-cake and other solid residues
(c) Ferro-alloys
(d) Footwear with outer soles of rubber, plastic and leather
Ans: (a)

1134. Which of the following International Organisations is India a member of?
1. Indian Ocean Rim Association for Regional Cooperation.
2. Organisation for Economic Cooperation and Development.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1135. The Balance of Payments (BoP) of a country is a systematic record of
(a) all import and export transactions of a country during a given period of time, normally a year
(b) goods exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another
Ans: (a)

1136. Consider the following objectives of the Bretton-Woods System
1. To maintain the exchange rate by tying its currency to the US dollar.
2. To bridge temporary imbalances of payments.
Which of the objectives given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1137. Consider the following
1. Edible oil
2. Sugar
3. Medicinal and Pharma-products
4. Fertilisers
5. Petroleum crude and product
Which of the items given above are the components of the bulk import in the Indian economy?
(a) 1, 3, 4, 5
(b) 1, 2, 4, 5
(c) 2, 3, 4, 5
(d) All of the above
Ans: (b)

1138. ‘World Economic Outlook’ report is published by
(a) IMF (b) World Bank
(c) RBI
(d) UNCTAD
Ans: (a)

1139. The earlier name of WTO was
(a) UNCTAD (b) GATT
(c) UNIDO (d) OECD
Ans: (b)

1140. The term ‘Paper Gold’ means
(a) Special Drawing Rights (SDRs) of the IMF
(b) Special accommodation facility of the World Bank
(c) Currencies still on Gold standard
(d) Deficit financing
Ans: (a)

1141. Which one of the following agencies given below is not the rating agency of an economy?
(a) Fitch Group
(b) Credit Rating and Information Services of India Limited
(c) Moody’s Investor Service
(d) Samuel’s Investor Group
Ans: (d)

1142. Consider the following statements
1. India has started the Duty Free Tariff Preference (DFTP) Scheme with highly developed countries.
2. Under DFTP Scheme, the beneficiary countries have to submit to the Government of India letters of intent and details of officials authorised to issue the certificates of origin.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1143. The problem of international liquidity is related to non-availability of
(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus
Ans: (c)

1144. Consider the following organisations
1. International Bank for Reconstruction and Development (IBRD)
2. International Finance Corporation (IFC)
3. International Fund for Agricultural Development (IFAD)
4. International Monetary Fund (IMF)
Which of these are agencies of United Nations?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (a)

1145. Which one of the following international financial institutions has offered investment, advisory, and asset management services to encourage private sector development in developing countries?
(a) International Monetary Fund
(b) World Bank
(c) International Development Association
(d) International Finance Corporation
Ans: (d)

1146. Which one of the following organisations is related with Doha Development Agenda?
(a) International Monetary Fund
(b) World Trade Organisation
(c) World Bank
(d) United Nations Organisation
Ans: (b)

1147. Consider the following
1. Manufacturing products
2. Fuel products
3. Fish and fish products
4. Forestry products
5. Mining products
Which of the items given above are included in the NAMA?
(a) 1 and 5 (b) 1, 2, 3 and 5
(c) 1, 2 and 5 (d) All of these
Ans: (d)

1148. Consider the following statements
1. World Trade Organisation (WTO) is an organisation that intends to supervise and liberalise international trade.
2. World Trade Organisation (WTO) is come to exist on 1st January, 1995.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1149. Consider the following statements
1. WTO has 199 members representing less than 50% of total world trade.
2. WTO’s headquarters is at the Centre William Rappard, Geneva.
3. WTO is governed by a ministerial conference meeting every two years.
Which of the statements given above are correct?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (c)

1150. Which one of the following credit rating agencies is the ‘Big Three credit rating agencies’ of the world?
(a) Fitch group
(b) Moody’s Corporation
(c) Standard & Poor’s
(d) All of the above
Ans: (d)

1151. Which one of the following stated that holding dollars was more valuable than gold because constant US Balance of Payments deficits helped to keep the system liquid and fuel economic growth?
(a) Hubbert Curve
(b) Triffin’s Dilemma
(c) Walras’ Law
(d) None of the above
Ans: (b)

1152. India is not a member of which of the following?
(a) Commonwealth of Independent States
(b) South Asian Association for Regional Cooperation
(c) South Asian Free Trade Agreement
(d) World Trade Organisation
Ans: (a)

1153. Which one of the following International Institutions has offered the concessional loans and grants to the world’s poorest developing countries?
(a) IFC (b) IDA
(c) IMF (d) WB
Ans: (b)

1154. Match List I with List II and select the correct answer using the codes given below the lists
List I (WTO Session) List II (Centre)
A. First 1. Doha, Qatar
B. Second 2. Singapore
C. Third 3. Geneva, Switzerland
D. Fourth 4. Seattle, US
Codes A B C D
(a) 2 4 3 1
(b) 2 3 4 1
(c) 4 3 1 2
(d) 4 1 3 2
Ans: (b)

1155. Which one of the following groups of items is included in India’s foreignexchange reserves?
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
Ans: (b)

1156. Who among the following served as the Chief Economist of the International Monetary Fu
(a) Ashok Lahiri
(b) Sumantra Ghoshal
(c) Saumitra Chaudhuri
(d) Raghuram Rajan
Ans: (d)

1157. Consider the following statements regarding the NAMA
1. Tariff reduction is at the core of the negotiations over NAMA.
2. Swiss formula takes into account the tariff profile of the countries while carrying out tariff reductions.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1158. Foreign Direct Investment (FDI) is investment directly into production in a country by a company located in another country, then which one of the following modes is correct about the FDI?
(a) Buying a company in the target country
(b) Expanding operations of an existing business in that country
(c) Investing in the shares and stocks of a company in the target country
(d) Both ‘a’ and ‘b’
Ans: (d)

1159. BOP (Balance of Payment) refers to
(a) transactions in the flow of capital
(b) transactions relating to receipts and payment of invisible
(c) transactions relating only to exports and imports
(d) systematic record of all its economic transaction with the rest of the world
Ans: (d)

1160. In which year wasWorld Bank formed?
(a) 1945 (b) 1956
(c) 1960 (d) 1988
Ans: (a)

1161. Which one of the following pairs is correctly matched?
(a) Amber Subsidies : Subsidies Intended to encourage more production
(b) Blue Box Subsidies : Subsidies provided in the name of environment and livestock
(c) Green Box Subsidies : Incentives to limit the production
(d) None of the above
Ans: (a)

1162. The capital of IMF is made up by contribution of the
(a) credit
(b) deficit financing
(c) member nations
(d) borrowings
Ans: (c)

1163. Which one of the following countries has the highest percentage of voting powers in the World Bank?
(a) Japan (b) China
(c) United States (d) Germany
Ans: (c)

1164. Consider the following statements
1. India is one of the first in Asia to recognise the effectiveness of the Export Processing Zone.
2. Asia’s first Export Processing Zone was set-up in Kandla, India in 1965.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1165. Which of the following does not form part of current account of Balance of Payments
(a) Export and import of goods
(b) Export and import of services
(c) Income receipts and payments
(d) Capital receipts and payments
Ans: (b)

1166. Consider the following statements
1. Agreement on Agriculture came into effect with the establishment of the WTO at the beginning of 1995.
2. Agreement on the Application of Sanitary and Phytosanitary Measures entered into force with the establishment of the GATT in 1948.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1167. Consider the following statements
1. Asian Development Bank (ADB) is a regional development bank established in 1966.
2. Asian Development Bank (ADB) admits the members of the United Nations Economic and Social Commission for Asia and the Pacific.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1168. Consider the following areas
1. Infrastructure
2. Education
3. Clean water and sanitation facilities
4. Environmental friendly projects
5. Healthcare
Which of the areas given above are mainly funded by the International Development Agency in the developing countries?
(a) 1, 2 and 5 (b) 1, 2, 3 and 5
(c) 1, 3, 4 and 5 (d) All of these
Ans: (a)

1169. Consider the following statements
1. In the World Bank, India has more voting powers than China.
2. After Voice Reform Phase-2, India has gained the significant voting powers in the World Bank.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1170. Consider the following statements
1. International Bank for Reconstruction and Development has same number of members as that of the International Development Association.
2. International Finance Corporation is the member of theWorld Bank Group and headquartered in New York, United States.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1171. Which one of the following nations is not a member of the Eurasian Economic Union?
(a) Belarus (b) Russia
(c) Kazakhstan (d) Uzbekistan
Ans: (d)

1172. Consider the following statements
1. All members of the International Monetary Fund are the members of International Bank for Reconstruction and Development.
2. International Monetary Fund quota, the maximum amount of financial resources that it is obligated to contribute to the fund determines the allotment of Special Drawing Rights to its members.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1173. Consider the following statements
1. Multilateral Investment Guarantee Agency is a member of the World Bank Group.
2. Multilateral Investment Guarantee Agency is headquartered in Geneva, Switzerland.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1174. The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Pease Clause’ appear in the news frequently in the context of the affairs of the
(a) Food and Agriculture Organisation
(b) United Nations Framework Conference on Climate Change
(c) World Trade Organisation
(d) United Nations Environment Programme
Ans: (c)

1175. Which one of the following countries is the first borrower of fund from the International Monetary Fund?
(a) United States (b) France
(c) Spain (d) India
Ans: (b)

1176. Which of the following statements is true about IMF?
(a) It is not an agency of UNO.
(b) It can grant loan to any country of the world.
(c) It can grant loan to State Government of a Country.
(d) It grants loan only to member nations.
Ans: (b)

1177. Consider the following pillars
1. Domestic support
2. Market access
3. Export subsidies
Which of the pillars given above is/are included in Agreement on Agriculture of the WTO?
(d) Only 2 (b) 1 and 3
(c) 2 and 3 (d) All of these
Ans: (d)

1178. Which one of the following continents accounts for the maximum share of exports from India ?
(a) Asia (b) Europe
(c) Africa (d) North America
Ans: (a)

1179. With reference to Asian Development Bank, consider the following statements
1. United States has the largest proportion of shares for the voting system.
2. China and India have the same percentage of shares for the voting system.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1180. Which one of the following institutions is related with the Green/Blue Box Subsidies?
(a) United Nations (b) World Bank
(c) World Tourism Organisation
(d) World Trade Organisation
Ans: (d)

1181. Which one of the following rights is a set of exclusive rights granted by a state to an inventor or their assignee for a limited period of time in exchange for a public disclosure of an invention?
(a) Copyright (b) Trade right
(c) Patent right (d) None of these
Ans: (c)

1182. Which of the following is not true for South Asian Free Trade Area (SAFTA)?
(a) it is a step towards a South Asian customs union and common market.
(b) the agreement came into effect in 2006.
(c) the SAFTA is a trade liberalisation
(d) The SAFTA agreement takes precedence over Any other agreement a member country may have with state outside SAFTA.
Ans: (d)

1183. Which one of the following is the final session of the General Agreement on Tariff and Trade (GATT)?
(a) Singapore Session
(b) Geneva Session
(c) Washington Session
(d) Uruguay session
Ans: (d)

1184. Choose the correct option related to World Bank organisations, IBRD and IDA
1. India use IDA funds on social sector.
2. India use IBRD funds on infrastructure development.
3. IBRD loans are cheaper than IDA loans. Select the correct answer using the codes given below
(a) Only 1 (b) Only 2
(c) 1 and 2 (d) 2 and 3
Ans: (c)

1185. The IMF and World Bank were conceived as institution to
(a) strengthen international economy and to help create a more stable and prosperous global economy
(b) promotes international monetary operation
(c) promotes long-term economic development and poverty reduction
(d) All of the above
Ans: (d)

1186. Which one of the following institutions publish the report of ‘World Economic Outlook’?
(a) IMF (b) World Bank
(c) RBI (d) UNCTAD
Ans: (a)

1187. Which one of the following areas is the main aim of ASIDE scheme started by Indian Government?
(a) To facilitate the import in the country
(b) To encourage the export
(c) To facilitate the movement of expatriates
(d) None of the above
Ans: (b)

1188. Consider the following statements
1. Multilateral Investment Guarantee Agency was become operational in 1945.
2. Multilateral Investment Guarantee Agency is the insurance wing of the World Bank Group.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1189. IMF was established to meet which of the following objectives?
1. Promoting international monetary co-operation.
2. Expanding international trade.
3. Lessening the disequilibrium in Balance of Trade.
4. Avoiding competitive exchange depreciations.
Which of the statements given above are correct?
(a) 1, 2, 3 and 4 (b) 1, 2 and 3
(c) 2 and 3 (d) 3 and 4
Ans: (b)

1190. Consider the following statements
1. General Agreement on Trade in Services is a treaty of the World Trade Organisation (WTO) that entered into force in January 1995.
2. All members of the WTO are signatories to the General Agreement on Trade in Services.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1191. Consider the following modes of participation of FDI
1. Participation in management.
2. Buying of shares in the stock exchanges.
3. Transfer of technology and expertise.
Which of the modes given above is/are involved in the FDI?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (b)

1192. Consider the following statements regarding WTO agreements
1. Genetically Modified Organisms (GMOs) is covered under the Agreement on the Application of Sanitary and Phyto-Sanitary Measures (SPS).
2. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety as well as animal and plant health about imported pests and diseases.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1193. Which one of the following administers the International Development Association?
(a) UNDP (b) UNIDO
(c) IFAD (d) IBRD
Ans: (d)

1194. Which one of the following institutions publish the report of ‘World Investment Report’?
(a) World Bank (b) IMF
(c) UNCTAD (d) WTO
Ans: (c)

1195. Consider the following statements
1. International Centre for Settlement of Investment Disputes is an institution of the World Bank Group.
2. International Centre for Settlement of Investment Disputes provides facilities for the conciliation and arbitration of investment disputes between member countries and individual investors.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1196. Which one of the following countries has the highest share in the World Export among the Asian countries?
(a) South Korea (b) Singapore
(c) India (d) China
Ans: (d)

1197. Which of the following is/are not FDI policy changes after 2010?
1. Permission of 100% FDI in automotive sector.
2. Permitting foreign airlines to make FDI upto 49%.
3. Permission of upto 51% FDI under the government approval route in multi-brand retailing, subject to specified conditions.
4. Amendment of policy on FDI in single-brand product retail trading for aligning with global practices. Select the correct answer using the code given below
(a) Only 1 (b) 2 and 4
(c) 1 and 2 (d) 1, 2 and 3
Ans: (a)

1198. IMF has raised the quota and voting share of India, in which India has been placed among 184 members of the organisation?
(a) 10th (b) 11th (c) 12th (d) 13th
Ans: (b)

1199. Which one of the following countries has the highest export-import ratio of the international trade of India in the last five years?
(a) UAE (b) China
(c) United States (d) Japan
Ans: (c)

1200. Which one of the following items has the highest share of India in the World Exports?
(a) Coffee, tea, mate, spices etc
(b) Pearls, precious stones, metals, coins, etc
(c) Lac, gums, resins, vegetable saps, and extracts etc
(d) Vegetable plaiting materials, vegetable products etc
Ans: (c)

1201. Which one of the following countries has the highest share of composition of exports of agriculture and allied products by major markets in the world?
(a) United States (b) EU
(c) China (d) India
Ans: (c)

1202. Consider the following items
1. Gems and Jewellery
2. Chemicals and Related Products
3. Engineering Goods
4. Textiles
Which of the items given above are the top four items in India’s manufactured exports?
(a) 1, 2 and 3 (b) 1, 2 and 4
(c) 2, 3 and 4 (d) All of these
Ans: (d)

1203. Which one of the following regions has the highest share of the India’s export in the world?
(a) Europe (b) America
(c) Asia and ASEAN (d) Caribbean
Ans: (c)

1204. Consider the following statements
1. India’s share in world merchandise exports had started rising fast since 2004.
2. China has more than India in terms of share in international trade.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1205. What is a blue chip company?
(a) Fast growing hi-technology company
(b) Semi conductor chip making company
(c) Highly valuable company
(d) Big companies in their maturity stage
Ans: (c)

1206. Which one of the following countries is the largest source of the Foreign Direct Investment in the Indian Economy?
(a) United States (b) Switzerland
(c) Singapore (d) Mauritius
Ans: (d)

1207. Which one of the following is the investment in securities that is intended for financial gain only and does not create a lasting interest in or effective management control over an enterprise?
(a) Foreign Direct Investment
(b) Portfolio Investment
(c) Equity Direct Investment
(d) Both ‘a’ and ‘c’
Ans: (b)

1208. Which one of the following statements is correct about the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organisation (WTO)?
(a) The patent right is covered under the TRIPS of the WTO
(b) Geographical Indication (GI) certification is enforceable under the TRIPS of the WTO
(c) Copyright is the important component of the TRIPS of WTO
(d) All of the above
Ans: (d)

1209. Which one of the following percentage of FDI is allowed as per the provisions of the SEZ Act, 2005 in SEZs through the automatic route?
(a) 25% (b) 51% (c) 74% (d) 100%
Ans: (d)

1210. Consider the following states
1. Gujarat 2.Maharashtra
3. Haryana
Which of the states given above is/are the ‘Top Two States’ of India share more than 45% of exports from India as per the data on state of origin of exports of goods in the last few years?
(a) 1 and 2 (b) 1 and 3
(c) 2 and 3 (d) Only 2
Ans: (a)

1211. Which one of the following is the major constituent of the Indian Foreign Exchange Reserve?
(a) Gold
(b) SDRs
(c) Foreign Currency Assets (FCA)
(d) Reserve Tranche Position of India in IMF
Ans: (c)

1212. Consider the following statements
1. Countervailing duties are trade import duties imposed under the United Nations Organisation.
2. Countervailing duties are imposed under World Trade Organisation (WTO) Rules to neutralise the negative effects of subsidies.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1213. Consider the following barriers
1. Anti-dumping practice
2. Packaging, labeling, and marking standards
3. Charges on imports
4. Rules of origin
5. Sanitary and phyto-sanitary conditions
Which of the barriers given above is/are come under the Non-Tariff Barriers (NTBs) of WTO?
(a) 1, 2, 3 and 5 (b) 1, 3, 4 and 5
(c) 2, 3, 4 and 5 (d) All of these
Ans: (d)

1214. Consider the following statements
1. MFN (Most Favoured Nation) is a status or level of treatment accorded by one state to another in international trade.
2. MFN is one of the cornerstones of World Trade Organisation trade law.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (c)

1215. Consider the following statements
1. Technical Barriers to Trade (TBT) are the category of non tariff barriers to trade under the WTO agreements.
2. TBT have the greatest impact on agriculture due to sanitary and phyto-sanitary measures designed to protect humans, animals, and plants, from diseases, pests, and other contaminants.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1216. Which one of the following percentages is the share of the Indian Export in the International Trade?
(a) Less than 1%
(b) More than 1 but less than 3%
(c) More than 3 but less than 5%
(d) More than 5 but less than 7%
Ans: (b)

1217. Which one of the following countries is commonly used by the investors to take the advantage of Round-Tripping of Assets to invest in India?
(a) Sri Lanka (b) Malaysia
(c) Mauritius (d) Pakistan
Ans: (c)

1218. Consider the following statements
1. For the last five years India is maintaining than US Dollar 50 billion in its Foreign Exchange Reserves.
2. Long-term debt constitutes more than 50% of the India’s external debt in the last five years.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1219. Consider the following statements
1. A Framework Agreement on Comprehensive Economic Cooperation was signed between India and ASEAN in 2003.
2. India-ASEAN Comprehensive Economic Cooperation Agreement covering Trade in Services and Investment has become active with the signing of Framework Agreement on Comprehensive Economic Cooperation.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1220. Which one of the following is related with the Baltic Dry Index?
(a) An assessment of the price of moving the major raw materials by sea
(b) An index showing the rising and falling prices of shares and equities in the Baltic Region
(c) An assessment showing the prices of the crude oil produced in the Baltic region
(d) None of the above
Ans: (a)

1221. Consider the following statements
1. India-Japan CEPA has come into force on 1st August, 2009.
2. India-Japan Comprehensive Economic Partnership Agreement (CEPA) covers more than 90% of the trade, a vast gamut of services, investment, IPR, customs, and other trade-related issues.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (b)

1222. Which one of the following countries has signed the bilateral Social Security Agreements with India to protect the interests of expatriate workers and companies on a reciprocal basis?
(a) Belgium and Denmark
(b) Switzerland and Norway
(c) Netherlands and France
(d) All of the above
Ans: (d)

1223. India is a member of which among the following?
1. Asia-Pacific Economic Cooperation
2. Association of South-East Asian Nations
3. East Asia Summit Select the correct answer using the codes given below
(a) 1 and 2 (b) Only 3
(c) 1, 2 and 3
(d) India is a member of none of them
Ans: (d)

1224. Which one of the following countries is listed first in the rank of the World Bank and International Finance Corporation (IFC) publication doing business 2013 on ‘ease of doing business’?
(a) China (b) United States
(c) India (d) Singapore
Ans: (d)

1225. Consider the following statements
1. India’s Trade Policy Review (TPR) is carried out every four years.
2. WTO has a mechanism for regular review of the trade policies ofmember countries.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1226. Which one of the following items has gained the highest growth rate in the import composition of the Indian economy in the last decade?
(a) Pearls, precious and semiprecious stones
(b) Gold and silver
(c) Oil-cake and other solid residues
(d) None of the above
Ans: (b)

1227. Consider the following statements
1. International Development Agency’s Capitals is replenished every three years.
2. India is not a member of the International Development Agency.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (a)

1228. The headquarters of IMF and World Bank are located at
(a) Geneva and Montreal
(b) Geneva and Vienna
(c) New York and Geneva
(d) Washington DC
Ans: (d)

1229. Consider the following statements about the India’s Look East Policy
1. It was articulated during the reign of HD Deve Gowda as India’s Prime Minister.
2. It is directed towards South Asian Region.
3. It is about controlling terrorism.
4. It seeks to develop a bond among various countries on the basis of economic cooperation.
Which of the statements given above are correct?
(a) 1 and 2 (b) 1 and 4
(c) 3 and 4 (d) 2 and 4
Ans: (d)

1230. ‘Global Competitiveness Report’ is released by which of the following organisations?
(a) World Trade Organisation
(b) European Union
(c) World Bank
(d) World Economic Forum
Ans: (d)

1231. In the context of the bilateral trade negotiation between India and European Union, what is the difference between European Commission and European Council?
1. European Commission represents the EU in the trade negotiation whereas European Council participates in the legislation of matters pertaining to economic policies of the EU.
2. European Commission comprises the Head of States Government of member countries whereas the European Council comprises the persons nominated by the European Parliament.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

1232. In terms of economy, the visit by foreign nations to witness the XIX Common Wealth Games in India amounted to
(a) export (b) import
(c) production (d) consumption
Ans: (a)

1233. Consider the following statements
1. Marrakech Agreement was an agreement signed in Marrakech, Morocco to establish theWorld Trade Organisation.
2. Marrakech Agreement developed out of the General Agreement on Tariffs and Trade.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1234. Which one of the following factors is taken account to calculate the Balance of Payment (BOP) of a country?
(a) Current Account
(b) Changes in the Foreign Exchange Reserves
(c) Errors and Omissions
(d) All of the above
Ans: (d)

1235. Singapore issues refer to four working groups set up during the World Trade Organisation Ministerial Conference of 1996 in Singapore. Consider the following
1. Transparency in government procurement.
2. Trade facilitation or customs issues.
3. Trade and investment.
4. Trade and competition.
Which of the issues given above are the main Singapore Issues?
(a) 1, 2 and 4 (b) 1, 3 and 4
(c) 2, 3 and 4 (d) All of these
Ans: (d)

1236. Which of the following countries is not a member of ASEAN?
(a) Brunei Darussalam
(b) Cambodia
(c) Vietnam
(d) India
Ans: (d)

1237. Which one of the following factors forms the invisible account of the Balance of Payment of a country?
(a) International trade in services
(b) Income associated with non-resident assets and liabilities.
(c) Remittance of workers incomes
(d) All of the above
Ans: (d)

1238. Consider the following statements about Indian External Sector
1. In the Eleventh Five Year Plan, the share of percentage of the export of primary products is more than the manufactured products.
2. The share of the India is half of China in the world export trade.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (d)

1239. Which of the following is not a member of Organisation of the Petroleum Exporting Countries (OPEC)?
(a) Algeria (b) Brazil
(c) Ecuador (d) Nigeria
Ans: (b)

1240. With reference to India’s International Trade, consider the following statements
1. On average, UAE has the highest total trade share with India in the last five years.
2. China has more total trade share with India than the United States in the last five years.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2
(c) Both 1 and 2 (d) Neither 1 nor 2
Ans: (c)

1241. Which one of the following international organisations offers political risk insurance guarantees to help investors to protect Foreign Direct Investments made in developing countries against political risk?
(a) IDA (b) IFC
(c) IMF (d) MIGA
Ans: (d)

1242. Consider the following statements
1. BIMSTEC (Bay of Bengal Initiative for Multi- Sectoral Technical and Economical Cooperation) is visualised as a bridging link between ASEAN and SAARC.
2. It was formerly know as the Bangkok Agreement.
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1243. Consider the following statements on Bay of Bengal initiative for Multi-sectoral Technical and Economic Cooperations.
1. BIMSTEC has seven members Bangladesh, Bhutan, India Myanmar, Sri Lanka and Thailand.
2. BIMSTEC provides a link between South Asia and South – East Asia by way of economic cooperation and linkages in identified areas of cooperation
3. BIMSTEC was rechristened a BISTEC in the year 2014 Select the correct answer using the coded given below
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1, 2 and 3
Ans: (c)

1244. Voting rights in the IMF are distributed on the basis of
(a) one country, one vote
(b) proportion to the share of the income of the country in the world income
(c) proportion to contributions given by each country
(d) proportion to quota allotted to countries from time to time
Ans: (d)

1245. Which one of the following is not a member of MERCOSUR (Southern Common Market)?
(a) Argentina (b) Paraguay
(c) Uruguay (d) Chile
Ans: (d)

1246. Which one of the following is not correct in the context of balance of payments of India during 2013-14?
(a) India’s exports were less than its imports.
(b) Trade balance was negative
(c) Net invisibles were positive
(d) Capital account balance was negative.
Ans: (d)

1247. Consider the following statements relating to the World Banks.
1. The World Bank was established in 1946, which is headquarters in New York
2. The World Bank Group has set for itself the goal to end extreme poverty from the world by 2030.
3. The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.
4. In World Bank Group comprises five institution managed by there member countries in order to promoto shared prosperity by fostering the income growth of the bottom 40% for every country.
Which of the statement given above are correct ?
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 2 and 4
Ans: (b)

1248. Which one among the following does not form part of current account of Balance of Payments ?
(a) Export and import of goods
(b) Export and import of services
(c) Income receipts and payments
(d) Capital receipt and payments
Ans: (d)

1249. With reference to a grouping of countries known as BRICS, consider the following statements :
1. The first summit of BRICS was held in Rio – etc janerio in 2009
2. South Africa was the last to join the BRICS grouping
Which of the statements given above is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)

1250. Which of the following theories form the basis of international trade?
1. Absolute cost differences
2. Comparative cost difference
3. Opportunity cost Select the correct answer using the codes given below
(a) Only 1
(b) Only 2
(c) 1 and 2
(d) 1, 2 and 3
Ans: (d)

1251. In which of the following years was the trade balance favourable to India ?
(a) 1970-71 and 1974-75
(b) 1972-73 and 1976-77
(c) 1972-73 and 1975-76
(d) 1971-72 and 1976-77
Ans: (b)

1252. Which of the following organisations brings out the publication known as World Economic Outlook?
(a) The International Monetary fund
(b) The United Nations Development Programme
(c) The World Economic Forum
(d) The World Bank
Ans: (a)

1253. Which of the following is not the recommendation of the Aarvind Mayaram Committee on rationalising the FDI/FPI definition (June, 2014)?
(a) Foreign investment of 10% or more in a listed company will be treated as Foreign Direct Investment.
(b) In a particular company, an investor can hold the investments either under the FPI route or under the FDI route, but not both.
(c) Any investment by way of equity shares, compulsorily convertible preference shares / debentures which is less than 10% of the post issue paid up equity capital of a company shall be treated as FPI.
(d) On NRI investors, the committee recommended treating nonrepartriable investment as FDI.
Ans: (d)

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