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DOWNLOAD MOBILE APPLICATION TO LEARN MORE: INDIAN ECONOMY CHARACTERISTICS
Table of Contents
INDIAN ECONOMY CHARACTERISTICS
1. Which of the following statements is/are true about the Report of the Financial Sector Assessment Programme for India?
i The level of non-performing loans in India remains high
ii IMF has favoured bolstering the level of capitalization of some banks, particularly private banks.
a .Only i
b. Only ii
c. Both i and ii
d .Neither i nor ii
Ans. (a)
2. Which of the following organisation has/have prepared the report of the Financial Sector Assessment Programme for India?
i IMF
ii World Bank
a. Only i
b. Only ii
c. Both i and ii
d. Neither i nor ii
Ans. (c)
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3. When the common people of a nation start getting very high salary or wages, the consumption of the goods like eatables and white goods, also start increasing. This situation brings which of the following types of inflation in the economy?
i Cost inflation
ii Demand pull inflation
iii Low Inflation
a. Only i and iii
b. Only ii
c. Only iii
d. All i , ii and iii
Ans. (b)
4 Which of the following is/are the objectives of the Public Distribution system?
i To put an in direct check on the open market prices of various items.
ii Providing food grains and other essential items to
the vulnerable section of the society.
iii To provide competitive price of the products to farmers.
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a. Only i
b. Only ii
c. Only i and ii
d. Only ii and iii
Ans. (b)
5. The Chakravyuh Challenge has been a menace for the Indian economy. Which of the following is/are measures by the Government to counter this problem?
a. Recapitalization of PSBs
b. Promoting competition via the private sector
c. Handing over idle land from PSUs to start-up companies
d. All of these
Ans. (b)
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6. Reserve Bank of India (RBI) has approved that all branches of Vijaya Bank and Dena Bank will function as branches of …… from April 1, 2019.
a. Bank of India
b. State Bank of India
c. Punjab National Bank
d. None of the above
Ans. d
7. Which are the norms for a welfare state?
i. Government should work hard to promote irrigation
ii. Reservation policy needs to be expanded
Code:
a. Only i
b. Only ii
c. Both i & ii
d. Neither i nor ii
Ans. c
8 Select the correct statement about ‘communitisation’:
a. Ownership of property by a community which is allowed by the Government of India to certain tribes.
b. Privatising public service delivery by transferring financial and revenue collection responsibilities to the community.
c. In it, the community owning the financial responsibilities, tough works with profit motive, and the profits are re-invested for the well-being of the community itself.
d. Such ownership of national assets is today prevalent in China and rest of the East European economies.
Ans. b
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9. Select the correct statement regarding ‘debt swap’:
a.. It occurs when unpaid part of loan of a borrower is written off by the lender.
b. It is a phenomenon of replacing old loans with newer ones.
c. It is the process when two countries trade in local currency.
d. None of these
Ans. b
10. What does ‘disgorgement’ in India means?
a. Influencing public policy with the help of power-brokers.
b. Allowing rich individuals and firms to stash their income away from India.
c. Repayment of illegal incomes to those who were affected by the action.
d. Letting defaulters escape the country.
Ans. c
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11. Consider the statements regarding ‘equity linked saving schemes (ELSS)’:
i They are offered by mutual fund companies.
ii They do not have a lock-in period.
iii They fall under ‘low risk’ and ‘high return’ category. Select the incorrect statements:
a. Only 1 and 2
b. Only 2 and 3
c. Both 1 and 3
d. 1, 2 and 3
Ans. d
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12. Consider the following situations regarding ‘forced saving’:
i In a joint-stock life insurance company the company has no capital to begin with.
ii In a mutual-stock life insurance company, the company has some capital to commence its businesses with.
Which of the above is/are correct?
a. Only i
b. Only ii
c. Both i and ii
d. Neither i nor ii
Ans. d
13. Select the correct difference between NEER and REER:
a. While in NEER the current rate of inflation is adjusted, it is not adjusted in REER.
b.While the rate of inflation is adjusted in REER, it is left un-adjusted in the NEER
c. While the NEER is calculated by the IMF for currency, the REER is calculated by the economy whose currency it is.
d. While REER shows the nominal value of the exchange rate of a currency, the NEER shows it in comparative context.
Ans. b
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14. Select the incorrect statement from the given list:
a. Banking year of India runs from January to December
b. Financial year of the IMF runs from July to June
c. Financial year of India runs from April to March.
d. Financial year of the USA and Pakistan are not similar to that of the IMF.
Ans. d
15. Select the correct statement about the Mumbai Inter Bank Bid (MIBID):
a. The weighted average interest rate at which certain banks in Mumbai are ready to borrow from the long term lenders.
b. The weighted average interest rate at which certain. banks in Mumbai are ready to lend for long term purpose.
c. The weighted average interest rate at which certain banks in Mumbai are ready to borrow from the call money market.
d. The freighted average interest rate which certain banks in Mumbai are ready to lend in the call money market.
Ans. c
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16. Match the following
| List-I (Plan Model) | List-II (Proposer) |
| a. Bombay Plan | i. Sriman Narayan |
| b. Gandhian Plan | ii M.N. Roy |
| c. People’s Plan | iii Jai Prakash Narain |
| d. Sarvodaya | iv Birla and Tata Group Approach |
Select the correct answer from the codes given below:
a b c d
a. iv i ii iii
b. i ii iii iv
c. iii ii iv i
d. I iv ii iii
Ans. a
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17. If a state is to be declared a special category state, then which of the following need not be a criterion?
a. Large uncontrolled population
b. Poor infrastructure
c. Hilly and difficult terrain
d. Non-viable state finances
Ans. a
18. By what sources do the state governments in India finance their Gross Fiscal Deficit?
i Loans from the Central Government.
ii Market Borrowing
iii External Borrowing
a. i and ii
b. ii and iii
c. ii only
d. i only
Ans. a
19. Assertion (A): The T-bills are sold through an auction.
Reason (R): The method helps in price discovery.
Select the answer from the code below.
Codes:
a. (A) is true, but (R) is false
b. Both (A) and (R) are true
c. (A) is false, but (R) is true
d. Both (A) and (R) are false
Ans. b
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20. Which of the following led majorly to the high growth of the service sector in India?
i The LPG reforms of 1991.
ii Availability of cheap labour and skilled labour at lower wage rate
iii The revolution in Information Technology (IT) field in India.
Select the correct answer using the codes given below
a. i, ii and iii
b. i and ii only
c. i and iii only
d. ii and iii only
Ans. a
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21. Consider the statements regarding the Inter-national
Financial Service Centre (IFSC)
i It has been made mainly for customers outside the jurisdiction of domestic economy.
ii It exclusively deals with Fund-raising services for individuals and corporations only.
iii The SEZ Act 2005 prohibits setting up an IFSC in an SEZ or as an SEZ.
iv There are no IFSCS as of now in India.
Which of the statements given above is/are incorrect?
a. i and iv only
b. ii, iii and iv
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c. i only
d. iv and iii
Ans. b
22. Consider the following statements regarding budget deficit:
i Decreasing taxes reduces budgetary deficit.
ii Decreasing expenditure on subsidies and welfare schemes government may reduce budgetary deficit.
iii Increasing expenditure on subsidies and welfare schemes may reduce the budgetary deficit. Which of the statements given above is/are not correct?
a. i and iii only
b. ii only
c. i only
d. i and ii only
Ans. a
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23. Consider the following statements about exchange rate:
i Real exchange rate is the ratio of product of nominal exchange rate and price levels abroad to price level of home country.
ii Real exchange rate is an indicator of the purchasing power parity.
Which of the statements given above is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. c
24. Consider the following statements regarding purchasing power parity:
i If the real exchange rate is equal to zero, currencies are at purchasing power parity.
ii If the real exchange rises above one, this means that goods from abroad have become more expensive than goods at home.
Which of the statements given above is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. b
25. With respect to Indian Economy during British rule, which of the following statements is/are incorrect?
i The economic policies of the colonial government in India were concerned more with the protection and promotion of the economic interests of their home country than with the development of the Indian economy.
ii Such policies brought about a fundamental change in the structure of the Indian economy – transforming the country into supplier of raw materials and consumer of finished industrial products from Britain.
iii British Indian Government officially started measuring National income and Per capita income in 1871.
a. i, ii and iii
b. iii only
c. i and ii only
d. ii and iii only
Ans. b
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26. Consider the following jobs –
i Permanent Driver in Excise department
ii Roadside Tea stall
iii Rickshaw puller
iv Domestic Servant
Which among the above jobs are examples of unorganized sector in India?
a. 2,3 and 4 only
b.1, 2, 3 and 4
c. 3 and 4 only
d.1,2 and 4 only
Ans. a
27. Consider the following statements regarding rural credit in India:
i NABARD supervises the functioning of formal sources of loans in rural India.
ii MUDRA bank supervises the credit activities of lenders in the informal sector.
Which of the above statements is/are correct?
a. Both i and ii
b. i only
c. ii only
d. None of the above
Ans. d
28. Which of the following objectives can be achieved by the SHG model?
i Providing loans at cheaper rate to poor in rural India.
ii Developing habit of saving among the poor.
iii Women empowerment. 4. Social reform.
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Select the correct answer using the codes given below:
a. 1, 2, 3 and 4
b. 1 and 2 only
c. 1 only
d. 1, 2 and 3 only
Ans. a
29. Consider the following statements with respect to economic Liberalization in India:
i India allowed imports of only essential items such as machinery, fertilisers, petroleum, etc., in 1950’s and 1960’s.
ii Government has removed all restrictions on businesses with respect to what they wish to import or export after 1991 LPG reforms.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. c
30. Consider the following statements about commercialisation of agriculture during the British Rule:
i Commercialisation of agriculture in India began during the British rule.
ii Commercialisation of Agriculture led to reduction in the occurrence of famines in India.
iii It was beneficial to the British planters, traders and manufacturers, because it provided them with the opportunity to make huge profits by getting the commercialised agricultural products at, throw away prices.
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Which of the statements given above is/are correct?
a. i, ii and iii
b. i and iii only
c. i and ii only
d. i only
Ans. b
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31. Consider the following statements:
i The restrictive policies of commodity production, trade and tariff pursued by the colonial government
adversely affected the structure, composition and volume of India’s foreign trade.
ii By middle of 19th century India became an exporter
of finished consumer goods like cotton, silk and woollen clothes.
iii Balance of trade of India was in deficit throughout the colonial period.
Which of the statements given above is/are correct?
a. i only
b. ii and iii only
c. i and ii only
d. i, ii and iii
Ans. a
32. On which of the following premises was the land reform which was undertaken in India after 1947?
i Land reform is based on the idea that the cultivators will take more interest-they will have more incentive-in increasing output if they are the owners of the land. This is because ownership of land enables the tiller to make profit from the increased output.
ii It would improve the equity as well as efficiency aspect in Indian Agriculture. Select the incorrect statement using the codes given below:
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. c
33. Consider the following statements about land reform in India:
i The goal of equity was not fully served by abolition of intermediaries as the Zamindars had identified many loopholes in the law and continued with their large land-holdings.
ii Land was given to the poorest of tenant i.e., landless. labours and share croppers under the land ceiling laws of the land reform.
iii Land reforms were most successful in West-Bengal and Kerala.
Select the correct answer using the codes given below:
a. i, ii and iii
b. ii only
c. i only
d. i and iii only
Ans. d
34. Consider the possible factors that caused the economic crisis of 1991?
i Fiscal consolidation measures of the Government in late 1980’s.
ii Lack of attention Paid towards boosting exports.
iii Dismal performance of Public sector enterprises.
iv. Gulf war
Select the incorrect answer using the codes given below:
a. i only
b. ii and iv only
c. i, iii and iv only
d. i and iv only
Ans. a
35. 1991 economic reforms did not touch:
i Labor laws
ii Agriculture sector reform iii Industrial sector reforms
iv Exchange rate reforms
Select the incorrect answer using the codes given below:
a. i only
b. i and iv only
c. iii and iv only
d. i and ii only
Ans. c
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36. Consider the following statements about economic reforms of 1991:
i The reform policies led to the establishment of private sector banks, however, foreign investment continued to be disallowed in the Banking sector.
ii The control of RBI on Banks was increased further.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. c
37. Consider the following statements with respect to exchange rate reforms of 1991.
i Rupee was revalued by 21%.
ii Freed the determination of rupee value in the foreign exchange market from government control.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. a
38. Consider the following statement regarding Strategic sales:
i Strategic Sale refers to the sale of 51% or more stake of a PSU to the private sector who bids the highest.
ii The ownership of PSU still remains with the government.
iii In India strategic sales method was first used during the tenure of PV Narsimha Rao.
Which of the statements given above is/are incorrect?
a. i only
b. ii and iii only
c. i and ii only
d. i, ii and iii
Ans. b
39. Which of the following have been the results of economic reforms of 1991?
i Increase in FDI and FIL
ii Decrease in economic inequality.
iii Reforms benefitted Agriculture enormously where growth accelerated in 1990’s.
Select the correct answer using the codes given below:
a. ii only
b. ii and iii only
c. i only
d. i and ii only
Ans. c
40. Consider the following statements about DigiLocker:
i It is a dedicated personal storage space used to securely store e-documents.
ii DigiLocker is one of the key initiatives under the Digital India Programme.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. d
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41. Consider the following statements regarding Wholesale Price Index (WPI):
i WPI has 676 commodities among which services have the highest proportion.
ii WPI is computed by the Central Statistical Organization.
Which of the above statement is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. d
42. Consider the following statements
i RBI uses CPI (combined) released by CSO for inflation purpose.
ii Base year for CPI (Rural, Urban, and Combined) is 2004-05.
Which of the statements given above is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. a
43. Consider the following statements regarding Anti Dumping duty:
i It is trade levy imposed by any government on imported products which have prices less than their fair normal values in their domestic market.
ii It is imposed under the multilateral World Trade Organisation (WTO) regime.
iii In India, anti-dumping duty is imposed by the Union Ministry of Commerce (i.e., by Directorate General of Anti-dumping & Allied Duties.
Which of the statements given above is/are incorrect?
a. i and ii only
b. ii and iii only
c. iii only
d. i, ii and iii
Ans. c
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44. Consider the following statements about Rupee Devaluation and Rupee Depreciation:
i When the government reduces the value of a currency under Fixed Rate System, it is called depreciation.
ii When the value of the currency falls under Floating Rate System, it is called devaluation.
Which of the statements given above is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. d
45. Consider the following statements regarding vote on account:
i It is a special provision by which Government obtains the Vote of Parliament for a sum sufficient to incur expenditure on various items for a part of the year.
ii It allows government to get money for the period between presentation and passing of budget.
Which of the statements given above is/are correct?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. c
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46. Consider the following statements about the annual budget and vote on account:
i It deals with both expenditure and revenue side but Vote-on-account deals only with the expenditure side of the government’s budget.
ii It is normally valid for two months but vote on account is valid for 12 months (a financial year).
Which of the statements given above is/are incorrect?
a. 1only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. b
47. Consider the following statements regarding interim budget:
i It is a full budget, but made by the government during the last year of its term.
ii it is a complete set of accounts, including both expenditure and receipts along with big policy proposals.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. d
48. Consider the following pairs:
i Policy Cut Motions – The amount of the demand be reduced by a specified amount.
ii Economy Cut Motions – The amount of the demand be reduced by ₹100.
iii Token Cut Motions – The amount of the demand be reduced to ₹1.
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Which of the pairs given above is/are incorrectly matched?
a. i and ii
b. ii and iii
c. i and iii
d. i, ii and iii
Ans. d
49. Consider the following statements regarding Vittiya Saksharta Abhiyan:
i The programme has been launched to spread awareness about the cashless economic system by actively engaging the youth/ students of Higher Education Institutions.
ii It was launched by Union Ministry for Human Resource Development (HRD).
Which of the statements given above is/ are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. d
50. Consider the following pairs about types of loans given under MUDRA loans.
i Kishor: covering loans upto 50,000/
ii Tarun: covering loans above 50,000/- and upto 5lakh.
iii Shishu: covering loans above 5 lakh and upto 10 lakh.
Which of the pairs given above is/are incorrectly matched?
a. i and ii only
b. ii and iii only
c. i, ii and iii
d. None of the above
Ans. c
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51. Consider the following statements about SEBI:
i Its primary function is to protect the interests of investors in securities and to regulate the securities market.
ii Collective investment schemes of NIDHI and Chit Fund are regulated by SEBI.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. b
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52. Consider the following changes that have been introduced by Union Cabinet in a year’s budget?
i Merger of Railway budget with the general budget.
ii Advancement of budget date.
iii Scrapping the distinction between plan and non-plan expenditure.
In which year these were done?
a. 2015
b. 2016
c. 2017
d. 2018
Ans. c
53. Consider the following statements regarding NPCI:
i. It is a private company charged with a responsibility of guiding India towards being a cashless society.
ii. Its objective is to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems.
iii. It aims to facilitate an affordable payment mechanism to help financial inclusion.
Which of the statements given above is/ are correct?
a. i and ii only
b. ii and iii only
c. i only
d. I, ii and iii
Ans. b
54. Consider the following statements about Market Economy Status (MES):
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i. Exports from a country with Market Economy Status (MES) are accepted at the production costs and selling price as the benchmark.
ii. It allows the country to impose unlimited anti-dumping duty on the goods imported from that country.
Which of the statements given above is/ are incorrect?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. b
55. Consider the following statements regarding Market Stabilization scheme (MSS):
i. It is a monetary policy intervention to withdraw excess liquidity by selling government securities in the economy.
Ii. These bonds are floated on behalf of the government by the RBI.
iii. These are long-tenure bonds, of more than 2 years maturity.
Which of the statements given above is/are incorrect?
a. i and ii only
b. ii and iii only
c. iii only
d. i, ii and iii
Ans. c
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56. Consider the following statements regarding ‘Sovereign Gold Bonds’ scheme:
i. These are government securities denominated in grams of gold.
ii. These are issued by RBI on behalf of Govt. of India.
iii. If the market price of gold declines, investors will be protected against capital loss.
Select the incorrect statement/s using the code given below:
a. i and ii only
b. iii only
c. i, ii and iii
d. i, ii, iii and iv
Ans. b
57. Which of the following are components of India’s Foreign Exchange Reserves?
i. Special Drawing Rights
ii. Foreign Currency Assets
iii. Reserve Tranche Position
iv. Gold
Select the correct answer using the code given below:
a. ii only
b. ii and iv only
c. i, ii and iv only
d. i, ii ,iii and iv
Ans. d
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58. Which of the following have occurred in the short run due to “Demonetization”?
i. Aggregate demand shock
ii. Aggregate supply shock
iii. Increase in discretionary consumption expenditure
iv. Uncertainty regarding investment plans
Select the correct answer using the code given below:
a. i and ii only
b. i and iii only
c. i, ii and iv only
d. i, ii, iii and iv
Ans. c
59. Consider the following statements regarding the ‘Benami Transactions Act 2016’:
i. A transaction where a property is held by a person, but has been paid by another person is called a benami transaction.
ii. Unaccounted cash deposited in others’ account is benami transaction.
iii. Property transactions among the family members is benami transaction.
Which of the statements given above is/are incorrect?
a. iii only
b. i and ii only
c. ii and iii only
d. i, ii, and iii
Ans. a
60. Consider the following statements regarding ‘Contingency Fund of India:
i. It is at the disposal of the president of India.
ii. It is at the disposal of the Prime Minister of India.
iii. The funds spent shall ultimately be approved by the parliament.
iv. The funds spent are recouped from the Consolidated Fund of India.
Select the correct statement/s using the code given below:
a. i only
b. ii and iv only
c. i, iii and iv
d. i and iv
Ans. c
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61. Consider the following statements regarding the ‘Gold Monetization Scheme”:
i. It will help in the mobilization of gold held by households and institutions.
ii. It will facilitate the use of gold for productive purpose.
iii. It will help in reducing import of gold and Current Account Deficit (CAD).
Which of the statements given above is/are incorrect?
a. 1 and 2 only
b. 1 and 3 only
c. 1, 2 and 3
d. None of these
Ans. d
62. Consider the following statements regarding ‘Banks Board Bureau (BBB)’:
i. It will recommend for appointment of heads in PSBs and Financial Institutions.
ii. It will help PSBs in developing strategies and capital raising plans.
iii. It will improve the governance of the Public Sector Banks (PSBs).
Select the correct statements
a. i only
b. i and iii only
c. ii and iii only
d. i, ii and iii
Ans. d
63. The Indian Railway budget has been merged with the Union budget from FY 2017-18. Consider the following statements given below in context to the Railway budget before the merger:
i. The budgetary support given by the Central government to the Railways was treated as loan in perpetuity (Capital-at-Charge).
ii. Ministry of Railway used to remit dividend to the Central government.
Which of the above statements is/are correct?
a. i only
b. ii only
c. Both I and ii
d. Neither i nor ii
Ans. c
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64. Consider the following statements regarding the ‘Banking Ombudsman Scheme”:
i. Banking Ombudsman is appointed by the RBI.
ii. RBI acts as the banking Ombudsman.
iii. It resolves customer complaints against deficiency in certain banking services.
iv.It has been introduced under the Reserve Bank of India Act 1934.
Which of the statements given above is/are incorrect?
a. i and iii only
b. ii and iv only
c. ii, iii and iv only
d. i and iv only
Ans. b
65. Consider the following statements regarding the functions of RBI:
i. It is known as the lender of last resort.
ii. Apart from acting as a banker to the commercial banks, RBI acts as a banker to the Government of India only, and not to the state governments.
iii. It acts as the controller of money supply and credit creation in the economy.
Which of the above statement/s is/are incorrect?
a. i and ii only
b. ii only
c. i and iii only
d. i, ii and iii
Ans. b
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66. Consider the following actions:
i. Devaluing the value of rupee by government.
ii. Sale of assets held by foreigners in India.
iii. Reduction in food subsidy by the government.
iv. Increasing FDI limit in various sectors.
Which of the above can help in overcoming Balance of Payment crisis?
a. i and iv only
b. ii and iii only
c. ii, iii and iv only
d. iii and iv only
Ans. a
67. Consider the following statements:
i. A policy of low repo rate by the RBI decreases the money supply in the economy.
ii. A policy of high repo rate by the RBI increases the money supply in the economy.
Which of the statements given above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans. d
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68. Consider the following statements:
i. GNP is always higher than GDP.
ii. GDP does not include the net factor income from abroad.
Which of the statements given above is/are incorrect?
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. a
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69. Consider the following statements:
i. RBI increases repo rate to reduce inflation.
ii. To reduce inflation government can increase taxes and cut spending.
iii. RBI uses Wholesale Price Index (WPI) as the key measure of inflation.
Which of the statements given above are correct?
a. i and ii only
b. ii and iii only
c. i and iii only
d. i, ii and iii
Ans. a
70. Which of the following will help in achieving inclusive growth in the Indian economy?
i. Higher employment growth rate.
ii. Reducing gender discrimination.
iii. Higher level of income inequality.
Select the correct answer using the code given below:
a. i only
b. i and ii only
c. ii and iii only
d. iii and iv only
Ans. b
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71. Consider the following problems faced by India:
i. Large scale poverty
ii. High mortality rate of children of poor parents
iii. Prevalence of under-age marriages
iv. Adverse sex-ratio
Which of the above socio-economic factors are responsible for high birth rate?
a. i and ii
b. i, iii and iv
c. i, ii and iv
d. i, ii and iii
Ans. b
72. Which among the following are the recommendations of the Urjit Patel Committee report of on monetary policy?
i. Curtailment of the fiscal deficit.
ii. Inflation anchor at four per cent.
iii. Providing adequate liquidity in the money and capital market.
iv. Pegging the exchange value of Indian Currency.
Select the answer from the code below:
a. i, ii and iii
b. ii and iv
c. iii and iv
d. i, ii and iv
Ans. a
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73. Which of the following statements are correct about rising NPAs of banks in India?
i. Rising NPAs are due to slow down in the world economy.
ii. Private Sector banks have lower NPAs in comparison Public Sector Banks.
iii. Rising NPAs are due to droughts in India.
Use the codes:
a. Only i
b. i and iii
c. i and ii
d. i, ii and iii
Ans. c
74. Consider the following statements with respect to the Indian context:
i. A Sick Company is defined as one whose accumulated losses in any financial year are equal to or more than 50% of its average net worth during previous four financial years.
ii. The Government had set-up Board of Industrial and Financial Reconstruction in 1987.
Which of the statement given above is/are incorrect?
a. Only i
b. Only ii
c. Both i and ii
d. Neither i nor ii
Ans. d
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75. Consider the following economists:
i. Dandekar and Rath
ii. P.K. Bardhan Who had made the study of poverty in the Indian context?
iii. B.S. Minhas
iv. IJ. Ahluwalia
a. i and ii
b. ii and iii
c. i, ii and iii
d. i, ii, iii and iv
Ans. c
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76. Which of the following were recommended Narsimham Committee – I regarding the PSL norms of banks:
i. Cutting it to 10 percent from its present level of 40 percent.
ii. Shuffling of the items covered by it.
iii. Phasing out of the PSL, obligation.
Codes:
a. Only i
b. i and ii
c. Only iii
d. i, ii and iii
Ans. d
77. Consider the following statements regarding ‘headlines inflation’ in the context of India Economy?
i. It is measured at the wholesale as well as consumer price.
ii. We see enough diversity among the India consumer; that is why we have four variants of the inflation index at the consumer prices.
iii. The concept was first forwarded by Mr. C.Rangarajan in the late 1980s.
Codes:
a. Only i
b. i and ii
c. Only ii
d. None of these
Ans. d
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78. Consider the given statements regarding subsidies’:
i. They are ideally short-term measures
ii. While everybody benefits from it, they are paid by few.
Which of the above is/are correct?
a. Only i
b. i and ii
c. Only ii
d. None of these
Ans. c
79. Consider the following cases in an economy:
i. Domestic currency heads for depreciation.
ii. Exports become less competitive with imports getting costlier.
iii. Real cost of borrowing decreases.
Which of the above are consequences of inflation?
a. i and ii
b. Only ii
c. i and iii
d. Only iii
Ans. d
80. Consider the following statements about SEBI:
i. There are total six members excluding the Chairman, on the Board.
ii. Central Government appoints four members representing 4 ministries.
iii. RBI and the Banking Division have one member each on the Board.
Select the incorrect statements:
a. Only i
b. ii and iii
c. Only iii
d. i, ii and iii
Ans. d
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81. What were the expected outcomes of the Jan Dhan Yojana?
i. It Increased credit creation power of banks.
ii. It decreased dependency on cash.
a. Only i
b. Only ii
c. Both i and ii
d. Neither i nor ii
Ans. c
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82. Read these following sentences and answer it.
i. Asia’s First Export Processing Zone was set-up in Kandla, India in 1965
ii. India is one of the first in Asia to recognise the effectiveness of the Export Processing.
Which of the statement/s given above is/are correct?
a. Only i
b. Only ii
c. Neither i and ii
d. Both i nor ii
Ans. d
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83. Which of the following were in the Fiscal Responsibility and Budget Management Act, 2003?
i. Primary deficit to be abolished 2008-09.
ii. Fiscal deficit should be brought down 3% of GDP.
Which of the above statement/s is/are correct. Select from the codes given below:
a. Only i
b. Only ii
c. Both i and ii
d. Neither i nor ii
Ans. c
84. Assertion (A): India has a big potential demographic dividend.
Reason (R): India’s population growth rate is declining.
Codes:
a. Both (A) and (R) are correct and (R) is the correct explanation of (A)
b. (A) is correct but (R) is not correct
c. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
d. (R) is correct but (A) is incorrect
Ans. c
85. Consider the following:
i. Annual increment in salary.
ii. Payment of bonus to employees.
iii. Interest payment on public debt.
iv. Pension payment.
Which of the above is/are not transfer payments?
a. iii and iv
b. ii, iii and iv
c. i and ii
d. i and iii
Ans. c
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86. Identify some of the effects of parallel economy in India:
i. Loss of revenue to the Government.
ii. Greater burden on honest tax payers.
iii. Results in equitable distribution of wealth and income.
iv. Encouragement to non-essential item of conspicuous consumption.
Find the correct combination from the codes given below:
a. i, ii and iii
b. i, ii and iv
c. ii, iii and iv
d. i and iv
Ans. b
87. Match the items given in List-I with List-II:
| List-I | List-II |
| Rangrajan Committee | a Report on small Industries |
| Karve Committee | b Disinvestment of shares in PSE’s |
| Dr. R.K. Hazari Committee | c Review of the Policy for public Enterprises |
| Arjun Sengupta Committee | d Industrial Licensing |
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Codes:
I II III IV
a. a c d b
b. c b d a
c. b a d c
d. b d a c
Ans. c
88. Natural growth of population is the outcome of the following:
i. Crude Birth Rate
ii. Crude Death Rate
iii. Migration
iv. Marriages
Codes:
a. Only i
b. Only iii
c. ii and iv
d. i and ii
Ans. d
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89. Assertion (A): Investment companies have not been able to attract much public savings in India. Reason (R): Investment companies are pure financial intermediaries and they specialise in the mobilisation of public saving for investment in corporate securities.
Codes:
a. (A) is true, but (R) is false.
b. Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
c. (A) is not correct, but (R) is correct.
d. Both (A) and (R) are correct and (R) is the correct explanation of (A).
Ans. b
90. Assertion (A): There was remarkable acceleration in deposit mobilisation of commercial banks after the nationalisation of 14 commercial banks in 1969.
Reason (R): There was tremendous branch expansion, rise in interest rates and introduction of myriad
innovative deposit scheme.
Choose the correct answer from the codes given below:
Codes:
a. (A) is correct, but (R) is not correct.
b. Both (A) and (R) are not correct.
c. Both (A) and (R) are correct, but (R) is not the correct explanation.
d. Both (A) and (R) are correct and (R) is the correct explanation of (A).
Ans. d
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91. Arrange in chronological order, the establishment of the following in India:
i. Industrial Investment Bank of India.
ii. R.B.I. working group on Development Financial Institutions.
iii. Small Industrial Development Bank of India.
iv. Insurance Regulatory and Development Authority (IRDA).
a. i, iv, iii, ii
b. iii, iv, ii
c. iii, iv, i, ii
d. iv, i, iii, ii
Ans. b
92. Which of the following facts are correct about the Competition Commission of India?
i. It was established in 2003.
ii. It was established on the recommendations of Raghavan Committee.
Codes:
a. Both i and ii are true
b. Both i and ii are not true
c. Only i is true
d. Only ii is true
Ans. a
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93. Which of the following statement incorrect?
a. The duration of Tenth Five Year Plan was 2002-2007
b. Ryotwari tenure has been the intermediary in Indian land system.
c. Zamindari system was introduced by Lord Dalhousie
d. land tenure system was introduced in Agra and Oudh.
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94. Assertion (A): In India, the traditional small scale industries have greater employment
potential than the modern small scale industries.
Reason (R): The value of capital per worker in traditional small scale industries is small than the value of capital per worker in modern small scale industries.
Codes:
a. Beth (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
95. Green Bonds in India…………..
i. can be issued both by public and private sector banks.
ii. is a low-risk bonds.
a. i only
b. ii only
c. Both i and ii
d. None of these
Ans. c
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96. Which of the following statements is/are true?
i. Fiscal deficit indicates the total borrowing requirements of Government.
ii. Effective Revenue deficit refers to the excess of revenue expenditure.
iii. Primary Deficit is the difference between fiscal deficit and revenue expenditure.
a. i only
b. ii and iii only
c iii only
d. None
Ans. c
97. Depreciation of value of a currency results in ………..
i. Increased value of remittances country receives.
ii. Increase in trade deficit.
iii. Increase in Exports. 4. Rise in inflation.
Select the correct answer using the code given below:
a. i, ii and iii only
b. i, iii and iv only
c. ii and iv only
d. i, ii, iii and iv
Ans. d
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98. The components of the Indian money market are ………?
i. Treasury bills
ii. Call Money market
iii. Commercial Bills
iv. Repo and Reverse repo markets
v. Mutual Funds
a. i, ii, iii and iv only
b. i, iv and v only
c. ii, iii and v only
d. i, ii, iii, iv and v
Ans. d
99………………increase/s the level of inflation in an economy.
i. Deficit financing
ii. Reduction in Indirect taxes
iii. Increase in Black money in the economy
iv. Defective supply chain
a. i and ii only
b. ii and iii only
c. i, iii and iv only
d. i, ii, iii and iv
Ans. c
100. Indigenously Designed, Developed and Manufactured (IDDM), defence products means:
i. Indigenously designed, developed and manufactured with minimum 40% indigenous
ii. Not indigenously designed or developed but have a least 60% indigenous content.
a. i only
b. ii only
c. Both i and ii
d. Neither i nor ii
Ans. c
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ALSO VISIT: INDIAN ECONOMY
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