INDIAN ECONOMY QUIZ – 11

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?

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?

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

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?

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?

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?

Which are the norms for a welfare state?

1. Government should work hard to promote irrigation
2. Reservation policy needs to be expanded

Code:

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?

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?

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?

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?

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?

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?

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?

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:

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?

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:

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:

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?

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?

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?

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:

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.

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.

Select the correct answer using the codes given below:

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?

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:

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?

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

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?

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.

Which of the pairs given above is/are incorrectly matched?

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?

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:

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?

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?

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.

1. Gulf war

Select the incorrect answer using the codes given below: