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1. The highest denomination of currency notesin circulation as legal tender in India is atpresent:A. Rs.2000B. Rs. 50C. Rs.100D. Rs. 500Ans: A

2. Consider the following statement:The price of any currency in internationalmarket is determined by the:1. WTO2. Demand for goods/services provided by thecountry concerned3. Inflation differential between the countryconcerned and its major trading partners4. Stability of the government of the concernedcountry Of these statements:

A. 1, 2 and 4 are correctB. 2, 3 and 4 are correctC. 1, 3 and 4 are correctD. 1, 2, 3, and 4 are correctAns: B

3. Which one of the following is different fromthe others from the point of view of ownership?A. Debenture of a CompanyB. LIC PolicyC. Bank Fixed DepositD. Kisan Vikas PatraAns: B

4. Match the following: Committees Chaired byA. Balance of Payments and Foreign Investment1. Rakesh MohanB. Public Sector Enterprises Autonomy 2. ArjunSen GuptaC. Small Scale Industries 3. RangarajanD. Infrastructure Development 4. Abid HussainA B C D

A. 3 2 4 1B. 1 2 3 4C. 2 1 4 3D. 1 4 2 3Ans: A

5. The contribution of agriculture to India's'economy is:

A. constantB. None of theseC. increasingD. decreasingAns: D

6. Which of the following is an indirect tax?A. Corporation TaxB. Capital Gains TaxC. Wealth TaxD. Excise DutyAns: D

7. 'Liquidity trap' is a situation in which:A. there is an excess of foregin exchangereserves in the economy leading to excess ofmoney supplyB. people want to hold only cash because pricesare falling everydayC. people want to hold only. cash because thereis too much of liquidity in the economyD. the rate of interest is so low that no onewants to hold interest bearing assets and peoplewants to hold cashAns: D

8. After textiles, India's second importantindustry is :A. SugarB. CementC. JuteD. Iron and steelAns: D

9. Consider the following statements:1. Hariyali is a watershed development projectsponsored by the Central Government.2. Hariyali also aims at enabling the urbanpopulation to conserve rain water.

A. Both 1 and 2B. Neither 1 nor 2C. 2 onlyD. 1 onlyAns: D

10. The budget broadly comprises: (i) revenuebudget, and (li) capital budget. Which of thefollowing item or items is/are not covered underthe revenue budget?I. Different proceeds of taxes and other duties

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levied by the governmentII. Interest and dividend on investments made bythe governmentIII. Expenditure on running government andvarious servicesIV. Market loans raised by the government

A. only IIB. only IVC. III and IVD. II and IIIAns: B

11. Which country is the largest debtor of UNO?A. JapanB. IndiaC. MexicoD. U.S.Ans: D

12. Which among the following is not correctwith regard to Sampoorna Grameen RozgarYojana?1. The case component of the programme isborne exclusively by the Central Government.2. Foodgrains are provided free of cost to theStates/Union Territories.Select the answer using the codes given belowA. 2 onlyB. 1 onlyC. Both 1 and 2D. Neither 1 nor 2Ans: A

13. Which' day is celebrated as 'NationalConsumer Right Day?A. 24th NovemberB. 24th OctoberC. 24th DecemberD. 24th SeptemberAns: C

14. Who of the following was the author of thechapter onObjectives of Planned Developmentfor the Third Five Year Plan?A. Morarji DesaiB. Lal Bahadur ShastriC. C.D. DeshmukhD. Jawaharlal NehruAns: A

15. The 'Year of Great Divide' refers to:A. rapid growth rate in population after 1921B. the declining sex ratio after 1921C. all the aboveD. the slow-down in death rate after 1921Ans: A

16. What is Laissez-faire?A. Non-interference· of Government in economicaffairsB. None of theseC. Mixed economyD. Controlled economyAns: A

17. Consider the following statements aboutSinking Fund:1. It is a method of repayment of public debt.2. It is created by the government out ofbudgetary revenues every year. Which of thestatements given above is/are correct?A. 2 onlyB. Neither 1 nor 2C. Both 1 and 2D. 1 onlyAns: C

18. Among Indian Economists who had donepioneering work on National Income ?A. P. N. DharB. V. K. R.V. RaoC. Prof. ShenoiD. Jagdish BhagwatiAns: B

19. ____ is the ex-officio chairman of PlanningCommission and National Development Council.A. PresidentB. Commerce MinisterC. Finance MinisterD. Prime MinisterAns: D

20. Increase in Oil Pool Deficit implies:A. domestic oil price is comparatively more thaninternational priceB. none of theseC. increasing gap between international anddomestic oil pricesD. government's Fiscal Deficit goes upAns: C





21. What is the correct sequence of thefollowing strategies used for Five Year Plans inIndia?1. Balanced growth2. Rehabilitation of the economy3. Industrial development

A. 2, 3, 1B. 3, 2, 1C. 1, 3, 2D. 2, 1, 3Ans: A

22. Who among the following are not protectedagainst inflation.?A. Salaried classB. Industrial workersC. PensionersD. Agricultural farmersAns: D

23. What is the main source of revenue to meetdifferent expenditures?A. Internal borrowingsB. Customs dutiesC. Income taxD. Excise dutiesAns: A

24. In India, the tax proceeds of which one ofthe following as a percentage of gross taxrevenue has significantly declined in the last fiveyears?A. Excise dutyB. Service taxC. Personal income taxD. Corporation taxAns: A

25. A tax Which is paid by the person on whomthe tax is incident is called a :A. direct taxB. indirect taxC. local taxD. rateAns: A

26. The per capita income is obtained by:A. estimating the minimum income of individualcitizensB. summing up the income of all the citizens of

the countryC. dividing national income by the populationD. dividing the total national capital with theprofit earnedAns: C

27. What is the role of 'Over-the CounterExchange' (OTC)?A. Help in the introduction of multi-tieredmarkets and import liquidity to themB. All of the aboveC. To arrange funds from different foreign banksof developing/ under developing countriesD. Help to overcome the balance of paymentcrisisAns: A

28. A deflator is a technique of:A. adjusting for change in commodityB. accounting for decline of GNPC. adjusting for changes in price levelD. accounting for higher increase of GNPAns: C

29. Which of the following pairs are correctlymatched?1. Dow Jones: New York2. Hang Seng: Seoul3. FTSE-100:LondonSelect the correct answer using the codes givenbelow:

A. 1 and 2B. 1, 2 and 3C. 1 and 3D. 2 and 3Ans: C

30. What does S & P 500 relate to?A. A new technique in e-businessB. SupercomputerC. An index of stocks of large companiesD. A new technique in bridge buildingAns: C

31. Which of the following Mahatma Gandhiseries of currency notes issued by the RBI has adrawing of the 'Parliament House' depicted onit?A. Rs. 50B. Rs. 500





C. Rs. 100D. Rs. 10Ans: A

32. Which of the following is/are correct?I. Bulk of unemployment in India is in rural areasII. The disguised unemployment in agriculturalsector is perennialIII. Industrialisation has rendered several peoplejob-less in India

A. I, II and IIIB. I onlyC. I and IID. II and IIIAns: C

33. Which one of the following Indian banks isnot a nationalized bank?A. Federal bankB. Corporation BankC. Vijaya BankD. Dena BankAns: A

34. Put in chronological order the followingSpecial features/objectives of different Five YearPlans as they were first formulated:1. Mahalanobis strategy2. Modernisation3. Removal of Poverty4. Emphasis on employment generation

A. 3,4,1,2B. 1,3,2,4C. 2,1,3,4D. 1,2,3,4Ans: B

35. Which of the following mints undertakesrefining of gold for licensed gold dealers andproduction of medals for defence services?A. None of the aboveB. The Kolkata MintC. The Hyderabad MintD. The Mumbai MintAns: D

36. Planning in India derives its objectives from:A. Fundamental DutiesB. Preamble

C. Fundamental RightsD. Directive Principles of State policyAns: D

37. The basic attribute of a formal organizationis :A. esteem and prestigeB. dominance and supremacyC. rules and regulationsD. roles and dutiesAns: C

38. 'Conditionality' of an IMF loan to a membercountry stands for:A. schedule of disbursement of loan installmentsB. an assessment of the credit worthiness of theborrowerC. the policy steps which the borrower countrymust takeD. interest and repayment terms of the loanAns: C

39. Deficit financing leads to inflation ingeneral, but it can be checked if:A. aggregate demand is increased onlyB. government expenditure leads to increase inaggregate supply in ratio of aggregate demandC. all the aboveD. all the expenditure is denoted national debtpayment onlyAns: B

40. What percentage of country's demand fornatural rubber is met by indigenous production:A. 100%B. 80%C. 97%D. 86%Ans: D

41. Rising prices lead to all but one of thefollowing:A. adverse effect on speculationB. adverse effect on balance of paymentsC. generation of black moneyD. promotion of inequalitiesAns: A

42. Fiscal deficit in the Union Budget means:A. the sum of budgetary deficit and net increasein internal and external borrowings





B. the sum of monetised deficit and budgetarydeficitC. the difference between current expenditureand current revenueD. net increase in Union Government'sborrowings from the Reserve Bank of IndiaAns: A

43. The situation with increasing unemploymentand inflation is termed as:A. galloping inflationB. hyperinflationC. reflationD. stagflationAns: D

44. The National Development Council gets itsadministrative support from:A. Planning CommissionB. Finance CommissionC. Administrative Reforms CommissionD. Sarkaria CommissionAns: A

45. The ideal average NPK ratio aggregated forthe country as a whole is :A. 4 : 1 : 2B. 2 : 4 : 1C. 4 : 2 : 1D. 4 : 3 : 2Ans: C

46. Stagflation implies a case of:A. adverse balance of tradeB. rising wages and employmentC. recession plus inflationD. galloping inflationAns: C

47. Who is the originator of Green Revolution inIndia?A. None of theseB. M.S. SwaminathanC. Garry BackerD. Norman E. BorlaugAns: D

48. Consider the following actions which theGovernment can take:1. Devaluing the domestic currency.2. Reduction in the export subsidy.

3. Adopting suitable policies which attractgreater FDI and more funds from FIIs.Which of the above action/actions can help inreducing the current account deficit?A. 1 and 3B. 2 and 3C. 1 and 2D. 3 onlyAns: A

49. Who among the following was the firstChairman of the Planning Commission?A. Dr. Rajendra PrasadB. J.B. KripalaniC. Pt. Jawahar Lal NehruD. Sardar Vallabhbhai PatelAns: C

50. The rate of growth of the tertiary sector hasbeen:A. lower than the overall rate of growth of thenet domestic productB. same as the overall rate of growth of the netdomestic productC. fluctuating when compared to growth of netdomestic productD. higher than the overall rate of growth of thenet domestic productAns: D

51. The Securities and Exchange Board of Indiahas been set up to :1. protect the interests of investors2. to regulate the activities of brokers in thestock market3. to ensure transparency in operation in thestock market.4. to encourage a healthy growthof the stock market Choose your answer from:

A. 1, 2 and 3B. 1, 2, 3 and 4C. 1 and 2D. 1, 2 and 4Ans: B

52. Among the causes of inflation can be listed:1. slow growth in agricultural output2. increasing non-development expenditure ofGovernment3. rapid population growth4. rapid growth in costly imports





A. 1 and 4 onlyB. 2 and 3C. 1, 2, 3 and 4D. 1 and 2Ans: C

53. One of the main factors that led to rapidexpansion of Indian exports is :A. diversification of exportsB. imposition of import dutiesC. liberalisation of the economyD. recession in other countriesAns: C

54. Under the Constitution, the power to raiseand disburse public funds:A. has not been given to anyoneB. has been given to the Finance CommissionC. has been vested in Union GovernmentD. has been divided between the Union andState GovernmentsAns: D

55. In the context of Indian economy, considerthe following statements:1. The growth rate of GDP has - steadilyincreased in the last five years.2. The growth rate in per capita income hassteadily increased in the last five years.Which of the statements given above is/arecorrect?A. 2 onlyB. Both 1 and 2C. 1 onlyD. Neither 1 nor 2Ans: D

56. During which Plan did prices show adecline?A. FifthB. ThirdC. FirstD. None of the aboveAns: C

57. In the last one decade, which one among thefollowing sectors has attracted the highestForeign Direct Investment inflows into India?A. Food processingB. Services sectorC. Telecommunication

D. Chemicals other than fertilizersAns: C

58. In which year was 'Rajiv Gandlii GrameenVidyutikaran Yojana' launched?A. 2004B. 2005C. 2007D. 2006Ans: B

59. Over the last few years:1. the value of imports has increased at a fasterrate as compared to exports2. exports have fallen as compared to imports3. both exports and imports have risen4. the balance of trade has been favourable toIndia

A. 1, 3 and 4B. 1, 2 and 3C. 1D. 1 and 3Ans: D

60. After the initiation of economic reforms in1991-92 the percentage share of:A. direct taxes decreased and that of indirecttaxes increased in gross tax revenueB. Both direct and indirect taxes increased ingross tax revenueC. both direct and indirect taxes decreased ingross tax revenueD. direct taxes increased and that of indirecttaxes decreased in gross tax revenueAns: B

61. Convertibility of the rupee implies:A. allowing the value of the rupee to be fixed bymarket forcesB. freely permitting the conversion of rupee toother major currencies and vice versaC. developing an international market forcurrencies in IndiaD. being able to convert rupee notes into goldAns: B

62. The Minimum Needs Programme aims to:A. None of theseB. improve the living condition of the poor andalso promote their education and health





C. provide means for greater mechanization ofagricultureD. provide necessary resources by way ofrefinance to primary lendersAns: B

63. Taxation and the government's expenditurepolicy are dealt under the :A. fiscal policyB. monetary policyC. trade policyD. budgetAns: A

64. MODVAT is different from VAT in the sensethat:1. under MODVAT, tax is levied only on valueaddition while under VAT, excise is imposed onfinal value and then rebate is given on inputs2. MODVAT is only at the production stage whileVAT extends both to production and distributionstage3. under MODVAT, excise is levied on final valueand then rebate is given on inputs while underVAT, tax is levied only on value addition4. MODVAT implies nationalization of exciseduty only while VAT implies nationalization ofexcise, sales and turnover taxes etc. also Choosecorrect answer from:A. 2, 3 and 4B. 1, 2 and 4C. 1, 3 and 4D. 1, 2, 3 and 4Ans: A

65. What are gilt-edged securities?A. Securities issued by the private sectorsB. Securities issued by the multinationalsC. Securities issued by the joint venturecompaniesD. Securities issued by the governmentAns: D

66. Which of the following is not an affiliate ofthe Reserve Bank of India?A. The Industrial Development Bank of IndiaB. Agricultural Refinance CorporationC. Unit Trust of IndiaD. Deposit Insurance CorporationAns: C

67. Which one of the following statements iscorrect? Fiscal Responsibility and BudgetManagement Act (FRBMA) concernsA. neither fiscal deficit nor revenue deficitB. revenue deficit onlyC. fiscal deficit onlyD. both fiscal and revenue deficitAns: D

68. Ever greening of patents is done byA. citing another use of the same productB. citing another product with same useC. applying for extension of patent termD. citing another process of forming the sameproductAns: C

69. Which of the following accounts for Cost-Push Inflation?A. Increase in populationB. Increase in money supplyC. Increase in non-plan expenditureD. Increase in indirect taxationAns: D

70. Present Industrial policy in India aims at :A. promoting the private sector unitsB. discourage the performance of the privatesectorC. increasing the production of public sectorunitsD. accelerating the performance of mixedeconomyAns: D

71. During which Five Year Plan was the totalexpenditure on agriculture the highest?A. Third Five Year PlanB. Fourth Five Year PlanC. Second Five Year PlanD. First Five Year PlanAns: B

72. National Income total reveals:1. Production side of the economy2. Distribution side of the economy3. Expenditure side of the economyChoose your answer from

A. 2 onlyB. 1, 2 and 3





C. 3 onlyD. 1 onlyAns: A

73. Which one among the following is not truefor Special Economic Zones?A. No permission for subcon- tractingB. No licence is required for importC. Manufacturing and service activities areallowedD. No routine examination of cargo forexport/import by customs authoritiesAns: A

74. Cyclical unemployment refers to:A. seasonal unemploymentB. unemployment during recessionary phase of atrade cycleC. disguised unemploymentD. voluntary unemploymentAns: B

75. Consider the following statements:1. The repo rate is the rate at which other banksborrow from the Reserve Bank of India.2. A value of 1 for Gini Coefficient in a countryimplies that there is perfectly equal income foreveryone in its population.Which of the statements giver, above is/arecorrect?A. 2 onlyB. 1 onlyC. Both 1 and 2D. Neither 1 nor 2Ans: B

76. Which among the following sectors receivedthe largest Central plan outlay in the last fewCentral Government annual budgets?A. EnergyB. Social ServicesC. Agriculture and allied activitiesD. CommunicationAns: A

77. Which of the following is wrongly matched?A. Proportional tax-a tax levied at the same timeat all levels of the baseB. Corporation tax-levied by corporations forcivic amenitiesC. Rate-a compulsory levy collected by the

government from the beneficiaries of particularschemesD. Cess-a compulsory levy collected by thegovernment for a particular purpose from allpersonsAns: B

78. A high rate of inflation tends to worsenbalance of payments because:A. prices of imported goods riseB. prices of exported goods rise making exportsless competitiveC. prices of imported goods fall and hence moreis importedD. prices of exported goods fall and hence lessamount is obtained in terms of foreign exchangeAns: B

79. The growth rate of agricultural productionwas negative in the:A. Fourth PlanB. Third PlanC. First PlanD. Second PlanAns: B

80. Ten rupee notes bear the signature of:A. PresidentB. Governor, Reserve Bank of IndiaC. Secretary, Ministry of FinanceD. Finance MinisterAns: B

81. Excise Duties are taxes on :A. import of commoditiesB. sale of commoditiesC. production of commoditiesD. export of commoditiesAns: C

82. The highest sector wise contribution togross domestic saving comes from:A. household sectorB. cooperative sectorC. private corporate sectorD. public sectorAns: A

83. All taxes come under:A. capital receiptsB. revenue receipts





C. public debtD. both (a ) and (b )Ans: B

84. World Development Report is an annualpublication of:A. United Nations Development ProgrammeB. World Trade OrganisationC. International Monetary FundD. International Bank of Reconstruction andDevelopmentAns: D

85. Which one among the following statementsis correct?A. In spite of border problems, India's trade withChina registered a quantum jump during theyears 2001-2010B. While India-China trade has registered aquantum jump between the years 2001-2010,both the countries have ensured parity of tradeC. The stand-off between India and China onPakistan and Arunachal Pradesh did not letIndia's trade to grow with China in the years2001-2010 as much as it grew in the years 1991-2001D. Due to border problems, India's trade withChina did not register a quantum jump betweenthe years 2001·2010Ans: A

86. The effect of inflation on tax revenue resultsin a situation known as :A. disinflationB. reflationC. stagflationD. fiscaldragAns: D

87. Which of the following statements aboutindirect taxes in India is/are true?1. Yield from indirect taxes is much more thanthat from direct taxes2. Indirect taxes have grown faster than directtaxes since independence3. Indirect taxes are ultimately paid for bypersons who do not actually pay the taxes to theGovernment4. Increase in indirect taxes is a welcome featurein a developing countryA. 1, 2 and 4

B. 2 onlyC. 1 and 2D. 1, 2 and 3Ans: D

88. National income of India is compiled by:A. Central Statistical OrganisationB. Finance CommissionC. Indian Statistical InstituteD. National Development CouncilAns: A

89. Among the following who are eligible tobenefit from theMahatma Gandhi National RuralEmployment Guarantee Act ?A. Adult members of any householdB. Adult members of only the scheduled Casteand scheduled tribe householdsC. Adult members of below poverty line (BPL)householdsD. Adult members of households of all backwardcommunitiesAns: A

90. Investment in public works is known as :A. capital expenditureB. either (a ) or ( b)C. revenue expenditureD. current expenditureAns: A

91. Private Sector Mutual Funds in India werepermitted inA. 1994B. 1964C. 2001D. 1993Ans: D

92. The period of high inflation and loweconomic growth is termed as:A. take-off stage in economyB. none of theseC. stagnationD. stagflationAns: D

93. The minimum effect of Direct Taxes is on :A. consumer goodsB. incomeC. capital goods





D. food priceAns: B

94. Which of the following features indicate thatIndian economy is of the developing category?I. Occupation mainly agriculturalII. Chronic unemploymentIII. Poor quality of human capitallIV. Low per capital intake of proteins

A. II and IIIB. I and IVC. I, II, III and IVD. I, II and IIIAns: C

95. Consider the following statements withregard to Statutory liquidity Ratio (SLR) :1. To meet SLR, commercial banks can use cashonly.2. SLR is maintained by the banks withthemselves.3. SLR restricts the banks' leverage in pumpingmore money into the economy.Which of the statements given above is/arecorrect?A. 1 and 3B. 2 and 3C. 1, 2 and 3D. 2 onlyAns: B

96. The system of value added taxation isapplicable to:A. estate dutyB. excise dutiesC. taxes on agricultural incomeD. income taxAns: B

97. A rapid increase in the rate of inflation issometimes attributed to the base effect Whatisbase effect? "A. It is the impact of drastic deficiency in supplydue to failure of cropsB. It is the impact of the price levels of previousyear on the calculation of inflation rateC. None of the statementsD. It is the impact of the surge in demand due torapid economic growthAns: A

98. With reference to Union Government, whichone of the following undertake the country-wideEconomic Census?A. The National Sample OrganizationB. Planning CommissionC. Department of ExpenditureD. The Central Statistical OrganizationAns: D

99. The following is the list of four integratedsteel plants in the country1. Bhilai2. TISCO3. IISCO4. BokaroWhich of the following combinations lists all theplants in the public sector ?

A. None of theseB. 1, 2 and 4C. 2, 3 and 4D. 1, 3 and 4Ans: D

100. 'Globalisation of Indian Economy' means:A. giving up programmes of import substitutionB. stepping up external borrowingsC. establishing Indian business units abroadD. having minimum possible restrictions oneconomic relations with other countriesAns: D

101. Which of the following is called a 'banker'scheque' ?A. Demand draftB. Debit cardC. Pay orderD. Fixed depositAns: A

102. When does the problem of unfavourablebalance of payment arise?A. When exports decreaseB. When imports increaseC. When exports increaseD. When imports are greater than exportsAns: D

103. With reference to the government'swelfare schemes, consider the followingstatements:





1. Under the Antyodaya Anna Yojana, the foodgrains are available to the poorest of the poorfamilies at Rs. 2 per kg for wheat and Rs.3 perkg for rice.2. Under the National Old Age Pension Scheme,the old and destitute are provided Rs. 75 permonth as Central Pension, in addition to theamount provided by most State Governments.3. Government of India has allocated 25 kg foodgrains per below Poverty Line family per month,at less than half the economic cost.Which of these statements are correct?A. 1 and 2B. 2 and 3C. 1 and 3D. 1, 2 and 3Ans: D

104. The acronym SRO, being used in thecapital market for various market participants,stands for which one of the following?A. Securities Regulatory OrganisationsB. Securities Roll-back OperatorsC. Small Revenue OperatorsD. Self-Regulatory OrganisationsAns: D

105. There are three major groups ofcommodities in the Wholesale Price Index. Theseare:1. primary articles 2. fuel, power, light andlubricants3. manufactured products4. food articles and industrial raw materialsA. 1 and 3B. 1, 2 and 3C. 2, 3 and 4D. 1, 3 and 4Ans: B

106. All of the following are subsidiaries of theState Bank of India, except:A. State Bank of Bikaner and JaipurB. Central Bank of IndiaC. State Bank of HyderabadD. State Bank of PatialaAns: B

107. With reference to India, which one of thefollowing statements is NOT correct?A. BSNL is the first telecom service organization

in India to launch a nationwide cellular serviceat one timeB. MTNL is listed on NYSEC. IPCL is India's largest petrochemicalcompanyD. RIL is the largest private sector· company inIndiaAns: C

108. The Nehru-Mahalanobis strategy ofdevelopment guided the planning practice inIndia from theA. First Five-Year Plan to the Eighth Five-YearPlanB. Second Five-Year Plan to the Seventh Five-Year PlanC. First Five-Year Plan to the Sixth Five-YearPlanD. Fourth Five-Year Plan to the Eighth Five-YearPlanAns: B

109. Which of the following best defines theterm Letter of Credit' as used frequently in banktransactions?A. Statement showing outstanding- deposits andcredits of a bank for a particular periodB. An order from a bank to another bank abroadauthorising the payment of a particular amountto a person named in the letterC. An unconditional undertaking given by a bankensuring the payment of a particular amount tothe drawee at a given dateD. Letter by a bank to a person stating the termsand conditions of the loan sanctioned to him bythe bankAns: D

110. The main function of the Exim Bank is:A. to conserve foreign exchangeB. to prevent unlicensed transactionC. to help RBI in the regulation of foreignexchangeD. to promote exports and curtail importsAns: D

111. Which of the following are not correctassessments of the decades of India's Five-YearPlans?1. There has been very low capital formation2. Growth has favoured the better off





3. Production has increased substantially thoughoften falling short of targets4. The public sector has contributed nothing toeconomic growthA. 3 and 4B. 2 and 3C. 1 and 4D. 1, 2 and 3Ans: C

112. The functions of the Reserve Bank of Indiaare:1. issuing all notes and coins2. distributing all notes and coins3. formulating monetary policy4. acting as agent of Government in respect ofIndia's membership of the IMFA. 1, 2, 3 and 4B. 1, 3 and 4C. 2, 3 and 4D. 2 and 3Ans: C

113. EXIM Bank was set-up in :A. 1986B. 1982C. 1985D. 1980Ans: B

114. The National Income is more at currentprices than at constant prices because:A. increase in price is more than productionB. increase in price is equal to increase inproductionC. increase in production is more than increasein priceD. of decrease in production onlyAns: C

115. The cause of inflation is:A. increase in money supplyB. decrease in money supply and fall inproductionC. fall in productionD. increase in money supply and fall inproductionAns: D

116. Microeconomics is concerned with:1. behaviour of industrial decision-makers

2. the level of employment3. changes in the general level of prices4. determination of prices of goods and services

A. 1 and 4B. 1 and 2C. 2 and 3D. 3 and 4Ans: A

117. Mashelkar Committee was constituted toreport on :A. auto fuel policyB. black moneyC. constitutional changesD. economic policyAns: A

118. Sickness of small units can be because ofthe factors:1. under-utilisation of capacity 2. non-paymentby the large firms3. dependence on borrowed funds4. lack of management expertise

A. 1, 2 and 3B. 3 and 4C. 1, 2 and 4D. 2, 3 and 4Ans: C

119. What is 'Recession'?A. None of theseB. Rise in the cost of production, especiallybecause of wage increaseC. Increase in money supply without a matchingincrease in productionD. Reduction in production and employment forwant of sufficient demand for goodsAns: D

120. The annual financial statement shows thereceipts and payments of the government underthe 3 parts in which government accounts arekept in :1. Consolidated Fund2. Contingency Fund3. Public AccountWhich of the following items are covered underthe Public Account?A. Funds placed at the disposal of the President





B. Loans raised by the governmentC. All revenue received by the governmentD. Transactions relating to provident fund, smallsavings, etc.Ans: D

121. For international payments, the Indiancurrency is linked to :A. American DollarB. British SterlingC. None of the aboveD. Gold StandardAns: A

122. Which of the following gives a correctpicture of the share of various sectors ineconomic growth in India over the years?1. Primary sector-stagnant2. Secondary sector-increasing3. Tertiary sector-decreasing

A. 2 onlyB. 2 and 3C. 1 onlyD. 1 and 2Ans: A

123. In a country like India, why should anincrease of direct taxes be preferred to anincrease in indirect taxes?A. It is easy to realise direct taxes and is thususeful in a country troubled by tax evasionB. Direct taxes serve the end of Socialism bytaking away the excessive wealth from the richC. All of the aboveD. Direct taxes involve the well-off sections ofthe society while indirect taxes affect the massesAns: C

124. Match the following:A. Partial convertibility I. Unified exchange rate,applied for export and import of goods only, i.e.,visible transaction of BoPB. Convertibility on trade account II. Currencycan be converted on all accountsC. Convertibility on current account III. 60% ofthe foreign exchange to be converted at marketrates and rest at official rateD. Full convertibility IV. Full convertibility in allvisible and invisible transaction of goods andservices

A B C D

A. IV II I IIIB. III I IV IIC. I IV III IID. I II III IVAns: B

125. Match the following:List I List IIA. TRIPS 1. World Trade OrganisationB. SLR 2. Public IssuesC. SEBI 3. International Monetary FundD. NEFTA 4. Reserve Bank of India5. USA and CanadaA B C D

A. 1 4 2 5B. 4 1 2 5C. 4 1 2 5D. 1 4 3 5Ans: A

126. Which of the following are the main causesof slow rate of growth of per capita income inIndia?1. High capital-output ratio2. High rate of growth of population3. High rate of capital formation4. High level of fiscal deficits

A. 2, 3 and 4B. 1 and 4C. 1, 2, and 4D. 1 and 2Ans: D

127. Which one of the following statementsregarding the levying, collecting and distributionof Income Tax is correct?A. The Union levies, collects and distributes theproceeds of income tax between itself and thestatesB. Only the surcharge levied on income tax isshared between the Union and the StatesC. The Union levies, collects and keeps all theproceeds of income tax to itselfD. The Union levies and collects the tax but allthe proceeds are distributed among the statesAns: A





128. Mixed economy means an economy whereA. both agriculture and industry are equallypromoted by the stateB. economy is controlled by military as well ascivilian rulersC. there is importance of small scale industriesalong with heavy industriesD. there is co-existence of public sector alongwith private sectorAns: D

129. Disguised unemployment in India is mainlyrelated to :1. agricultural sector2. rural area3. factory sector4. urban area

A. 2 and 4B. 1 and 2C. 3 and 4D. 1 and 3Ans: B

130. Which of the following could be said tohave prevented the 'trickle down' effects inIndian economy?1. Increased dependence of agriculture onpurchased inputs and privately managedirrigation2. More employment of labour by largerlandholding farmers3. Lowered participation of women inagricultural workforce due to new technology4. The failure of the Green RevolutionA. 1 and 3B. 1 and 2C. 2 and 3D. 2 and 4Ans: A

131. Success of 4th plan was obstructed by :A. war with PakistanB. poor monsoonC. All of the aboveD. problem of Bengal refugeesAns: C

132. The basic difference between imperativeand indicative planning is that:A. in the case of indicative planning, there is no

need to nationalise any industryB. in the case of the imperative planning, themarket mechanism is entirely replaced by acommand hierarchy, while in the case ofindicative planning, it is looked upon as a way toimprove the functioning of the market systemC. it is easier to achieve targets in imperativetype of planningD. in the case of imperative planning, alleconomic activities belong to public sector,while in the other type they belong to the privatesectorAns: B

133. Which of the following can be used forchecking inflation temporarily?A. Increase in wagesB. Decrease in taxesC. Decrease in money supplyD. None of the aboveAns: C

134. Which one of the following countries is nota member of ASEAN?A. BangladeshB. VietnamC. MyanmarD. Brunei DarussalamAns: A

135. Once the demands for grants andexpenditure of different departments are passedby the Parliament, a bill to draw money fromConsolidated Fund India for these purposes isintroduced. This bill is called:A. credit budget billB. money billC. finance billD. appropriation billAns: D

136. Which of these programs has not beenincluded in the Swarna Jayanti SwarozgarYojana?A. JRB. DWCRAC. IRDPD. TRYSEMAns: A

137. With reference to the Government of





India's various programmes, what isNirmalGram Puraskar?A. It is an incentive scheme of scholarships forthe single girl child in families in villages.B. It is an incentive scheme Panchayati Rajinstitutions.C. It is an incentive scheme for schools in thevillages for computer education.D. It is an incentive scheme of scholarships forfemale sportspersons from villages whorepresent their states in any game.Ans: B

138. Which of the following would signifyscarcity in economics?A. Availability of post-graduates for jobs oftypistsB. Availability of 10 kg of rice against a demandfor 15 kgC. Quantity supplied remains the same whenprice changesD. Production of 100 kg of a certain item insteadof the targeted 150 kgAns: B

139. The Green Revolution has led to :1. spurt in all foodgrains production2. increase in regional inequalities3. reduction in inter-personal inequalities withina region4. good production in wheat

A. 2, 3 and 4B. 1 and 3C. 1, 2 and 3D. 2 and 4Ans: D

140. Gross National Income is always more thanNet National Income because it includes:A. indirect taxesB. direct taxesC. capital consumption allowanceD. foreign incomeAns: C

141. In India, the Public Sector is mostdominant in :A. organised term-lending financial institutionsB. transportC. commercial banking

D. steel productionAns: C

142. Consider the following events:1. Conversion of Imperial Bank of India intoS.B.I.2. Establishment of NABARD3. Setting up of RRBs4. Nationalisation of R.B.I.The correct chronological sequence of theseevents is :A. 1, 4, 2, 3B. 4, 1, 3, 2C. 4, 1, 2, 3D. 1, 4, 3, 2Ans: B

143. Among the remedies of inflation we cannotinclude:A. lowering bank rateB. reducing budgetary deficitC. better capacity utilisationD. an efficient public distribution systemAns: A

144. Unemployment in a developing countrygenerally takes place due to :A. switch over from one job to anotherB. seasonal factorsC. lack of effective demandD. lack of complementary factors of productionAns: D

145. Who is the Deputy Chairman of PlanningCommission?A. Commerce MinisterB. Finance MinisterC. None of the aboveD. Prime MinisterAns: C

146. The World Bank and IMF givesrespectively:A. both long term creditsB. long term and short term creditsC. short term and long term creditsD. both short term creditsAns: B

147. The States' debt does not include:A. loans from the Central Government





B. treasury bills issued to international financialinstitutionsC. Provident FundsD. loans from State Bank of IndiaAns: B

148. Oil Pool Deficit is a deficit:1. in the balance of payments2. that the government owes to the world bank3. in the oil pool account4. that the government owes to the oilcompaniesChoose your answer from:A. 1 and 3B. 2 and 3C. 2 and 4D. 3 and 4Ans: D

149. In which one of the following countries isRupee its currency?A. MalaysiaB. SeychellesC. MaldivesD. BhutanAns: B

150. 'Devaluation' means:A. converting rupee into goldB. None of theseC. making rupee dealer in comparison to someforeign currencyD. lowering of the value of one currency incomparison of some foreign currencyAns: D

151. Rolling plan was designed for the period:A. 1985-90B. 1980-85C. 1978-83D. 1974-97Ans: C

152. Which one of the following is the mostimportant item of non-plan expenditure?A. Interest paymentB. Loans to public enterprisesC. Fertiliser subsidiesD. DefenceAns: A

153. In India, maximum number of workers areemployed in :A. iron and steel industryB. textile industryC. petrochemical industryD. automobile industryAns: B

154. Devaluation of currency by a country ismeant to lead to :1. expansion of import trade2. promotion of import substitution3. expansion of export trade

A. 1 and 4B. 1 and 2C. 2 and 3D. 1 onlyAns: C

155. Who among the following is mostbenefitted from inflation?A. DebtorsB. Savings Bank Account holdersC. CreditorsD. Government pensionersAns: A

156. Which of the following gives an accuratemeasurement of economic development throughFive Year Plans?A. Rise in national income and per capitalincomeB. Development of industrial towns andindustrial estatesC. Development of railways and roadwaysD. Development of education and health servicesAns: A

157. The most appropriate measure of acountry's economic growth is the:A. gross domestic productB. net national productC. per capita real incomeD. net domestic productAns: C

158. Which of the following is not requiredwhile computing Gross National Product (GNP)?A. Per capita income of citizensB. Purchase of goods by government





C. Net foreign investmentD. Private investmentAns: A

159. World Bank is a body:A. of non-official, generous individualsB. of major banks operating in differentcountriesC. that controls worldwide foreign exchangeoperationsD. that gives aid to developing countriesAns: D

160. The largest Public Sector Bank in India is:A. Indian Overseas BankB. State Bank of IndiaC. Punjab National BankD. Central BankAns: B

161. When the productive capacity of theeconomic system of a State is inadequate tocreate sufficient number of jobs, it is calledA. seasonal unemploymentB. disguised unemploymentC. structural unemploymentD. cyclical unemploymentAns: C

162. Which industry earns the second highest,net foreign exchange from the trade?A. Gems and ornamentsB. Engineering goods industryC. Steel industryD. Textile industryAns: B

163. Which Agriculture export item is second incase of India?A. Oil cakeB. Marine productC. SugarD. RiceAns: D

164. When was decimal coinage introduced inIndia?A. 1960B. 1957C. 1947D. 1950

Ans: B

165. In 1921, the Presidency Banks of Bengal,Madras and Bombay were nationalised to givebirth to:A. State Bank of IndiaB. Syndicate BankC. Punjab and Sindh BankD. Punjab National BankAns: A

166. Which is the best measure of economicgrowth of a country ?A. GDPB. Net revenueC. GNPD. None of theseAns: C

167. Which Committee's recommendations arebeing followed for estimating Poverty Line inIndia?A. Lakdawala CommitteeB. Chakravorty CommitteeC. Chelliah CommitteeD. Dutt CommitteeAns: A

168. Operation Blackboard aims atA. providing education to urban slum dwellersB. opening of new schools specially for femalechildrenC. providing primary education in aneducationally backward areaD. promoting adult literacyAns: D

169. Match the following:A. Boom 1. Business activity at a high level withincreasing income, output and employment atmacro levelB. Recession 2. Gradual fall in income, outputand employment with business activity in a lowgearC. Recovery 3. Steady rise in the general pricelevel and income, output and employmentD. Depression 4. Unprecedented level ofunemployment and drastic fall in income andoutputA B C DA. 2 1 4 3





B. 1 2 4 3C. 2 1 3 4D. 1 2 3 4Ans: D

170. The banks are required to maintain acertain ratio between their cash in hand andtotal assets. This is called:A. SLR (Statutory Liquid Ratio)B. CBR (Central Bank Reserve)C. SBRC (Statutory Bank Ratio)D. CLR (Central Liquid Reserve)Ans: A

171. Which of the following Mahatma Gandhiseries of currency notes issued by the RBI hasecology depicted on it?A. Rs. 100B. Rs. 500C. Rs. 5D. Rs. 50Ans: A

172. Broad money in India is :A. M4B. M1C. M2D. M3Ans: D

173. A Multinational is:A. a company operating in several countriesB. a company that operates only in thosecountries that do not have import restrictionsC. a company which does charitable work inpoor countriesD. a company having shareholders from morethan one countryAns: A

174. Which of the following constitute short-term sources of finance for small scaleindustries?1. Private money lenders2. Loans by commercial banks3. Credit Guarantee schemes4. National Small Industries Corporation

A. 1 onlyB. 1, 2, 3 and 4C. 1, 2 and 3

D. 1, 2 and 4Ans: C

175. Bank rate is the rate at which:A. the Reserve Bank of India gives credit tocommercial banksB. a bank lends to the publicC. the Reserve Bank of India lends to the publicD. the Government of India lends to othercountriesAns: A

176. Which of the following is correct regardingthe Gross Domestic Saving In India?A. Contribution of Corporate sector is thelargestB. None of theseC. Contribution of Household sector is thelargestD. Contribution of Government sector is thelargestAns: C

177. Consider the following statements: (A ) InIndia since independence the share of theprimary sector has been declining while theshares. of the secondary and tertiary sectorshave been increasing (B ) This trend shows thatIndian economy is passing through the transitionfrom an agricultural to an industrial economyWhile one of the following is correct?A. A is wrong, B is correctB. both A and B are correctC. both A and B are wrongD. A is correct, B is wrongAns: B

178. Which of the following are the publicsector undertakings of the Government of India?1. Balmer Lawrie and Company Ltd.2. Dredging Corporation of India3. Educational Consultants of India Ltd.Select the correct answer using the code givenbelow

A. 1 and 3 onlyB. 1 and 2 onlyC. 1, 2 and 3D. 2 and 3 onlyAns: C





179. Import substitution impliesA. increasing domestic supply of goods byimposing import restrictionsB. importing new items in place of old items ofimportC. replacing import items by domesticproduction of such itemsD. gradual reduction of imported goods to saveforeign exchangeAns: C

180. Nationalisation of banks was done with thepurpose of:A. consolidating the economyB. financing the industriesC. improving credit facilitiesD. improving security of depositsAns: A

181. The success of the Green Revolution doesnot require:A. large scale mechanizationB. pesticides and chemical fertilizersC. adequate irrigation facilitiesD. availability of high yielding seedsAns: A

182. The measure of a worker's real wage is :A. the change in his productivity over a giventimeB. the purchasing power of his earningsC. his daily earningsD. his earning after deduction at sourceAns: B

183. Hard Currency is defined as currency:A. which loses its value very fastB. traded in foreign exchange market for whichdemand is persistently relative to the supplyC. which can hardly be used for internationaltransactionsD. which is used in times of warAns: B

184. The sum of which of the followingconstitutes Broad Money in India?1. Currency with the public2. Demand deposits with banks3. Time deposits with banks4. Other deposits with RBIChoose the correct answer using the codes given

below:A. 1 and 2B. 1, 2 and 4C. 1, 2, 3 and 4D. 1, 2 and 3Ans: C

185. Which of the following agencies has thepower to declare any industrial unit as apotentially sick unit?A. FICCIB. BIFRC. IRBID. MRTPCAns: B

186. Which bank gives long term loan tofarmers?A. Rural banksB. NABARDC. SBID. Land Development BankAns: D

187. Which of the following constitute the WorldBank?1. International Bank of Reconstruction andDevelopment2. International Finance Corporation3. International Development Association4. International Monetary FundChoose the correct answer from the codes givenbelow:

A. 1 and 3B. 1 and 2C. 1, 2, 3 and 4D. 1, 2 and 3Ans: D

188. To know whether the rich are gettingricher and the poor getting poorer, it isnecessary to compare;A. the wholesale price index over differentperiods of time for different regionsB. the distribution of income of different sets ofincome recipients at a point of timeC. the distribution of income of an identical setof income recipients in different periods of timeD. the availability of foodgrains among two setsof people, one rich and the other poor, over





different periods of timeAns: C

189. Real national income denotes:A. national income at constant pricesB. net factor incomeC. national income at current pricesD. per capita incomeAns: A

190. Funds belonging to Government of Indiaare kept in:1. Consolidated Fund of India2. Public Account Fund of India3. Contingency Fund of India

A. 1 and 2B. 1, 2 and 3C. 1 and 3D. 2 and 3Ans: B

191. The decentralisation system wasrecommended by :A. C.RajagopalachariB. J.B. KripalanC. Balwant Rai MehtaD. Ashok MehtaAns: C

192. Which State stands first in the length ofroads in the country?A. Madhya PradeshB. RajasthanC. MaharashtraD. Uttar PradeshAns: C

193. Fiscal deficit in the budget means:A. Primary deficit minus capital deficitB. Capital deficit plus revenue deficitC. Budgetary deficit plus the net borrowings ofthe governmentD. Revenue deficit plus the net borrowings ofthe governmentAns: C

194. Consider the following statements:1. The nation-wide scheme of the National ChildLabour Projects (NCLP) is run by the UnionMinistry of Social Justice and Empowerment.

2. Gurupadswamy Committee dealt with theissues of child labour.Which of the statements given above is/arecorrect?A. 1 onlyB. 2 onlyC. Neither 1 nor 2D. Both 1 and 2Ans: D

195. Which of the following is not a method ofestimating national income?A. Export-import methodB. Expenditure methodC. Income methodD. Value-added methodAns: A

196. India's oldest iron and steel plant is :A. TISCO at JamshedpurB. TISCO at BurnpurC. Rourkela Iron and Steel PlantD. Durgapur Iron and Steel PlantAns: A

197. Put in chronological order 1. Constitutionof National Planning Committee -by the IndianNational Congress under Jawaharlal Nehru2. Planned Economy for India by Visvesvarayapublished3. Bombay Plan4. Setting up of the National DevelopmentCouncil

A. 3, 2, 4, 1B. 1, 2, 3, 4C. 2, 3, 1, 4D. 2, 1, 3, 4Ans: D

198. The first estimate of national income inIndia was made by:A. MahalanobisB. V.K.R.V. RaoC. Dadabhai NaorojiD. Prof. SheroiAns: C

199. Estimation of national income in India isdifficult due to :I. illiteracy of people





II. non-monetised consumptionIII. inflationIV. people holding multiple jobs

A. I and IVB. II and IIIC. I, II and IVD. I, II, III and IVAns: C

200. Who is the chairman of 13th FinanceCommission?A. Bimal JalanB. Vijay KelkarC. M.N. VohraD. C. RangarajanAns: B

201. Consider the following statements:1. The highest deciding body for planning inIndia is the Planning Commission of India.2. The Secretary of the Planning Commission ofIndia is also the Secretary of NationalDevelopment Council3. The Constitution includes economic and socialplanning in the Concurrent List in the SeventhSchedule of the Constitution of India.Which of the statements given above is/arecorrect?A. 3 onlyB. 1 and 2C. 2 onlyD. 2 and 3Ans: C

202. Regional rural banks:1. have limited area of operation2. have free access to liberal refinance facilitiesfrom NABARD3. are required to lend only to weaker sections

A. 1 and 3B. 1 and 2C. 1, 2 and 3D. 2 and 3Ans: C

203. Companies pay Corporation Tax on their:A. productionB. incomesC. sales proceeds

D. investmentAns: B

204. One of the problems in calculating thenational income in India correctly is :A. non-monetised consumptionB. under-er-employmentC. inflationD. low savingsAns: A

205. Which of the following pairs are correctlymatched? Enterprise Industrial Group1. VSNL : Bharati Group2. Mundra Special Economic Zone Ltd. : AdaniGroup3. CMC Ltd. : Tata Group4. IPCL : Reliance GroupSelect the correct answer using the codes givenbelow:

A. 2, 3 and 4B. 1, 2 and 4C. 1, 2 and 3D. 3 and 4Ans: A

206. Tarapore Committee was associated withwhich one of the following?A. Special Economic ZonesB. Effect of oil-prices on the Indian economyC. Fuller capital account convertibilityD. Foreign exchange reservesAns: C

207. The book Wealth of Nations' was writtenby:A. Eric RollB. Adam SmithC. Harold LaskiD. J.M. KeynesAns: B

208. A country is said to be in a debt trap if:A. the World Bank charges a very high rate ofinterest on outstanding as well as new loansB. it has to abide by the conditionalities imposedby the International Monetary FundC. it has to borrow to make interest payments onoutstanding loansD. it has been refused loans or aid by creditors





abroadAns: C

209. Value-added tax is :A. tax on final consumption collected at theconsumption stageB. an ad valorem tax on domestic finalconsumption collected at all stages betweenproduction and the point of final saleC. a special tax levised by states on productsfrom other statesD. an ad valorem tax on final consumptioncollected at the manufacturing levelAns: B

210. Consider the following statements:1. National Thermal Power Corporation hasdiversitled into hydropower sector2. Power Grid Corporation of India hasdiversified into telecom sectorWhich of the statements given above is/arecorrect?

A. 1 onlyB. both 1 and 2C. 2 onlyD. neither 1 nor 2Ans: A

211. Buyer's market denotes the place where:A. commodities are available at competitiveratesB. the demand and supply are well balancedC. the supply exceeds the demandD. the demand exceeds the supplyAns: D

212. If the cash-reserve ratio is lowered by theCentral bank, what will be its effect on creditcreation?A. None of theseB. DecreaseC. IncreaseD. No changeAns: C

213. According to the RBI directions, a NBFC(Non-Banking Finance Company) must possess aNet-owned Fund of the amount:A. minimum Rs. 50 lakhB. minimum Rs. 25 lakh

C. minimum Rs. 10 lakhD. minimum Rs.5 lakhAns: B

214. 'Repo rate' is the rate at which:A. the Reserve Bank of India lends to StateGovernmentB. the Reserve Bank of India lends to banksC. the banks lend to Reserve Bank of IndiaD. the international aid agencies lend to ReserveBank of IndiaAns: C

215. Self-reliance in the economic contextimplies that a country:1. meets its demands for all goods and servicesfrom its domestic production2. exports some of its goods but does not need toimport anything3. has sufficient foreign exchange reserves tobuy all its needs4. meets its demand for certain vital goods andservices from its domestic production

A. 1 and 3B. 2 and 4C. 3 and 4D. 1, 2 and 3Ans: C

216. Why is the Government of Indiadisinvesting its equity in the Central PublicSector Enterprises (CPSEs)?1. The Government intends to use the revenueearned from the disinvestment mainly to payback the external debt.2. The Government no longer intends to retainthe management control of the CPSEs. Which ofthe statements given above is/are correct?

A. Both 1 and 2B. 1 onlyC. 2 onlyD. Neither 1 nor 2Ans: D

217. The first Bank established in India wasA. Punjab National BankB. Traders BankC. State Bank of IndiaD. Bank of Hindustan





Ans: D

218. From the view of International economy,Third World implies:A. None of theseB. the developed countriesC. the developing countriesD. block led by U.S.A., U.K. etc.Ans: C

219. Which one of the following forms thelargest share of deficit in Govt. of India budget?A. Primary deficitB. Fiscal deficitC. Revenue deficitD. Budgetary deficitAns: B

220. Match the following. :A. First Plan 1. Rapid industrialisationB. Second Plan 2. Community DevelopmentProgrammeC. Third Plan 3. Expansion of basic industriesD. Fourth Plan 4. Minimum Needs ProgrammeE. Fifth Plan 5. Achievement of self-reliance andgrowth with stabilityA B C D E

A. 2 1 3 4 5B. 1 2 3 4 5C. 2 1 4 5 3D. 2 1 3 5 4Ans: D

221. A closed economy is an economy in whichA. neither exports nor imports take placeB. the money supply is fully controlledC. only exports take placeD. deficit financing takes placeAns: A

222. Since independence, both development andnon-development expenditures have Increased,the increase in the former being a little morethan in the other. Non development expenditureinvolves:1. interest payment2. subsidies3. defence4. irrigation

A. 1 and 2B. 1, 2 and 3C. 1 onlyD. 2, 3 and 4Ans: B

223. Which of these are nicknamed 'BrettonWoods Twins' ?1. IDA2. IMF3. IBRD4. WTO

A. 3 and 4B. 1and 4C. 2and 4D. 2 and 3Ans: D

224. Which of the following is the basis fordetermining the national income?A. Production of goods and servicesB. Net profit earned and expenditure incurredby the StateC. Total revenue of the StateD. All of the aboveAns: A

225. The concept of Five Year Plans in India wasintroduced byA. Lord MountbattenB. Lal Bahadur ShastriC. Jawaharlal NehruD. Indira GandhiAns: C

226. The per capital income has been low inIndia because:A. more people are in rural areasB. of regional imbalancesC. of price riseD. of population growthAns: D

227. The basic feature of the Rolling Plans wasthat:A. no physical targets were visualizedB. annual fluctuations in prices and majoreconomic developments could be consideredwhile fixing targetsC. no financial target except in the term of





annual plans was envisagedD. revision of the achievements, of previous yearAns: B

228. The principal reason why nationaleconomic planning is still being pursued inspiteof embracing a market economy since 1991 isthat:A. Five Year Plans can continue to provide along-term perspective to the economy in marketfriendly fashionsB. the vast quantity of capital already deployedin the public sector needs to be nurturedC. it is a constitutional requirementD. the market economy is mainly confined toindustry and commerce and central planning inagriculture is necessaryAns: A

229. Which of the following committees wasassigned to recommend reforms in theinsurancesector?A. Chelliah CommitteeB. Rekhi CommitteeC. Malhotra CommitteeD. Nadkarni CommitteeAns: C

230. The core sector includes:I. CoalII. PowerIII. PetroleumIV. Soaps and Detergent

A. II and IIIB. IC. I, II and IIID. I and IIAns: C

231. The sum total of incomes received for theservices of labour, land or capital in a country iscalled:A. gross domestic productB. gross national incomeC. gross domestic incomeD. national incomeAns: D

232. According to the law of demand, when:A. price decreases demand decreases

B. price increases demand decreasesC. price decreases demand does not changeD. price increases demand increasesAns: B

233. The National Housing Bank was set up inIndia as a wholly-owned subsidiary of which oneof the following?A. State Bank of IndiaB. ICICI BankC. Life Insurance Corporation of IndiaD. Reserve Bank of IndiaAns: D

234. Which of the following groups of states hasthe largest concentration of rural poor andpeople living below the poverty line?A. Karnataka, Maharashtra, GoaB. Andhra Pradesh, Karnataka, Tamil NaduC. Goa, Andhra Pradesh, MaharashtraD. Tamil Nadu, Kerala, GoaAns: B

235. The basic regulatory authority for mutualfunds and stock markets lies with the:A. Stock ExchangesB. Securities and Exchange Board of IndiaC. Government of IndiaD. Reserve Bank of IndiaAns: B

236. Which of the following is not an indirecttax?A. Entertainment taxB. Customs dutiesC. Sales taxD. Land revenueAns: D

237. Consider the following statements:1. The first newsprint plant set up in India wasat Nepanagar.2. The first modern steel plant in India was setup at Bhadrawati.Which of these statements is/are correct?

A. Both 1 and 2B. Neither 1 nor 2C. 2 onlyD. 1 onlyAns: D





238. Consider the following statements:1. ICICI Bank is the largest private sector bankin India.2. Postal life Insurance is the oldest lifeinsurance organization in India.Which of the statements give above is/arecorrect?A. 2 onlyB. Neither 1 nor 2C. Both 1 and 2D. 1 onlyAns: B

239. DWCRA stands for:A. Development and Welfare of Catchment RuralAreasB. Direct Welfare of Children in Rural AreasC. All of the aboveD. Development of Women and Children in RuralAreasAns: D

240. The rate of growth of per capita income isequal to:A. Rate of growth of national income minus therate of growth of populationB. Rate of growth of national income divided bythe rate of growth of populationC. Rate of growth of national incomeD. Growth in national income divided by theincrease in populationAns: A

241. The 11th Five Year Plan strategy to raiseagricultural output envisages which of thefollowing?1. Greater attention to land reforms.2. Double the rate of growth of irrigated area.3. Promote animal husbandry and fishery.4. Interest free credit to the farmers.Select the correct answer

A. 2 and 3 onlyB. 2 and 4 onlyC. 1, 2 and 3D. 1 and 2 onlyAns: C

242. The rising prices in India can be checkedthrough:1. Budgetary policy

2. Monetary policy3. Increasing production4. Increasing income levelsChoose your answer from:A. 1 and 2B. 2 and 3C. 1, 2 and 3D. 1, 2, 3 and 4Ans: C

243. National income calculated at currentprices in India has shown a tendency to rise at afaster rate than national income at constantprices. This is because:A. India's population has been rising fastB. Base year chosen is an abnormal yearC. General price level in the economy has beenrising rapidlyD. Statistically manipulations are employed bythe PlanningAns: C

244. National Development Council was set upin:A. 1952B. 1951C. 1948D. 1950Ans: A

245. Which among the following is the oldestDevelopment Financial Institution of India?A. ICICIB. UTIC. IDBID. IFCIAns: D

246. Which of the following statements iscorrect?A. The Prime Minister is the Chairman of thePlanning CommissionB. The draft plan is prepared by the NationalDevelopment CouncilC. The Minister of Planning is always necessarilythe Deputy Chairman of Planning CommissionD. Planning Commission is a constitutional bodyAns: A

247. What do you understand by Bear raid?A. An attempt to bring down the price of strong





short sellingB. Simulataneous buying of shares anddebentures in view of getting more values innear futureC. Higher rate of price paid for the particulargovernment share or debenturesD. Any of the aboveAns: A

248. The 'Slack Season' in the Indian Economyis:A. Jan. - JuneB. Sept. - Dec.C. Feb. – AprilD. March - AprilAns: A

249. Which of the following schemes wasintended to tap the black money?A. Long term Operations SchemeB. India Development BondsC. UTI BondsD. SBI Deposit SchemeAns: B

250. In India, present trend of rapidurbanisation is due to:A. break up of joint family systemB. influence of cinema and electronic mediaC. abolition of zamindari systemD. lack of employment opportunities in ruralareasAns: D

251. Which of the following is incorrect aboutconvertibility?A. It would discourage black markettransactionsB. The RBI will be a direct player now ratherthan being an indirect oneC. The exchange rate should be determined bythe forces of demand and supply of the currencyD. The exchange rate' would indicate thestrength of the economyAns: B

252. The main source of fund for the NationalHighway Authority of India isA. CessB. Foreign assistanceC. Budgetary support Government of Union

D. Market borrowingsAns: A

253. Which of the following are definiteimplications of a fall in inflation?1. Prices have fallen2. Prices are increasing more slowly than before3. Food supply has increased4. There is industrial stagnation

A. 1 and 3B. 1, 3 and 4C. 1 onlyD. 2 onlyAns: D

254. The first attempt to initiate economicplanning in India was made by:A. Jawaharlal NehruB. Vallabhbhai PatelC. M. VisvesvarayaD. Balwantrai MehtaAns: C

255. A crossed cheque is one, which can beencashed only:A. through a bank,B. after it has been transferred to anotherpersonC. at the State Bank of IndiaD. by the draweeAns: A

256. Which amidst the following rural banks hasbeen named after a river?A. Aravali Kshetriya Grameen BankB. Prathama BankC. Thar Anchalik Grameen BankD. Varada Grameen BankAns: D

257. On account of some national emergency orin order to carry out some secret mission, thegovernment sometimes requires funds but maynot give the details of the expenditure estimates.The House grants some lumpsum for this called :A. emergency budgetB. vote of CreditC. supplementary budgetD. contingency billAns: B





258. India's progress has been reasonablysatisfactory in connection with:A. reduction in inequalitiesB. growth of GNPC. growth of per capital incomeD. reduction of unemploymentAns: B

259. Which of the following statementsregarding the iron and steel plants at Bhilai,Rourkela and Durgapur are correct?1. These plants were established in public sectorduring the Second Five Year Plan2. These are located in the steel raw materialbelt3. These were established with the help fromBritain, Soviet Union and West Germanyrespectively

A. 1 and 3B. 2 and 3C. 1 and 2D. 2 and 3Ans: C

260. Which among the following is theregulatory authority for giving clearance forExternal Commercial borrowing?A. Foreign Investment Promotion CouncilB. RBIC. Foreign Investment Promotion BoardD. SEBIAns: B

261. Which of the following measures is notlikely to help in improving India's balance ofpayments position?A. Devaluation of the rupeeB. Imposition of higher duty on exportsC. Imposition of higher duty on importsD. Encouragement of import substitutionAns: B

262. Which one of the following statementsappropriately describes the fiscal stimulus ?A. It is a massive investment by the Governmentin manufacturing sector to ensure the supply ofgoods to meet the demand surge caused byrapid economic growthB. It is Government's intensive action onfinancial institutions to ensure disbursement of

loans to agriculture and allied sectors topromote greater food production and containfood inflationC. It is an intense affirmative action of theGovernment to boost economic activity in thecountryD. It is an extreme affirmative action by theGovernment to pursue- its policy of financialinclusionAns: C

263. Which among the following is true?1. Decrease in cash reserve ratio injects higherliquidity in the system2. Higher liquidity in the system may softeninterest rates3. Higher market borrowing by the governmentleads to rise in interest rates Choose youranswer from:

A. 1 and 3B. 1 and 2C. 2 and 3D. 1, 2 and 3Ans: D

264. Agricultural marketing in India has certaindefects which do not include:A. inadequate transport facilitiesB. insufficient price incentives by thegovernmentC. agricultural produce not being properlygradedD. lack of standard measures and weightsAns: B

265. Among the structural changes which of thefollowing is not wholly welcome?A. Relative contribution of agriculture to ourGNP is decliningB. Marked improvement in the contribution ofmanufacturing to the GNPC. Substantial increase in the percentagecontribution of public administration anddefence to GDPD. Increase in the share of construction in theGNPAns: C

266. The difference between a bank and a non-banking financial institution (NBFI) is that:





A. a bank indulges in a number of activitiesrelating to finance with a range of customers,while an NBFI is , mainly concerned with theterm loan needs of large enterprisesB. a bank's main interest is to help in businesstransactions and saving/investment activitieswhile an NBFl's main interest is in thestabilisation of the currencyC. a bank interacts directly with customerswhile an NBFI interacts with banks andgovernmentsD. a bank deals with both internal andinternational customers while an NBFI is mainlyconcerned with the finances of foreigncompaniesAns: A

267. National income is the same as:A. Net Domestic Product at cost factorB. Net Domestic Product at market priceC. Net National Product at factor costD. Net National Product at market priceAns: C

268. Arbitrage implies:A. the practice of over-invoicing importsB. practice of taking advantage of ricedifference in two marketsC. the practice of under invoicing exportsD. the practice of dumping viz., selling goods ina foreign market cheaper than the home marketAns: B

269. M3 includes:A. M1 + T.DB. M1 + post office saving depositC. M1 +- post office total depositD. M1 + national saving certificateAns: A

270. Which of the following was formed tosuggest means for eradicating black money?A. Finance CommissionB. Shah CommissionC. Chelliah CommitteeD. Sarkaria CommissionAns: C

271. Which one of the following categories ofworkers is termed as cultivators?A. Those who cultivate the land of others

B. Those who lease in land and cultivateC. Those who own land and lease in from othersor institutions and cultivateD. Those who own land and cultivateAns: A

272. Which of the following governmental stepshas proved relatively effective in controlling thedouble digit rate of inflation in the Indianeconomy during recent years?A. Containing budgetory deficits andunproductive expenditureB. Streamlined public distribution systemC. Pursuing an export-oriented strategyD. Enhanced rate of production of all consumergoodsAns: A

273. Match the following:Publishers PublicationA. Ministry of Industry 1. Report on Currencyand FinanceB. Central Statistical Organisation 2. EconomicSurveyC. Reserve Bank of India 3. Wholesale PriceIndexD. Ministry of Finance 4. National AccountsStatisticsA B C D

A. 4 3 2 1B. 3 4 2 1C. 4 3 1 2D. 3 4 1 2Ans: D

274. 70% of working population of India isengaged in:A. secondary sectorB. tertiary sectorC. public sectorD. primary sectorAns: D

275. Consider the following items of wholesaleprice index: 1. Primary articles2. Fuel, power, lights and lubricants3. Manufacturing productsArrange the above items in descending order interms of their weightage in calculatingwholesale price index





A. 3, 2, 1B. 3, 1, 2C. 1, 3, 2D. 1, 2, 3Ans: C

276. Gross National Product at market prices isdefined as :A. the market value of all final goods andservices produced in an economyB. the market value of all final goods andservices produced in an economy plus indirecttaxes minus subsidiesC. the market value of all final goods andservices produced in an economy taking intoaccount net factor income from abroadD. the market value of all final goods andservices produced in an economy plus indirecttaxesAns: C

277. Dadabhai Naoroji theorised on the drain ofwealth from India in his book:A. Poverty in British Rule in IndiaB. Poverty under British Rule in IndiaC. Poverty and Un-British Rule in IndiaD. Poverty of Economic Drain in British IndiaAns: C

278. When the ratio of indirect taxes to totaltaxation revenue is very high, it leads to : 1. risein the price level2. higher taxation burden on the rich3. higher taxation burden on the poor4. fall in tax revenues

A. 1 and 2B. 1, 3 and 4C. 1, 2 and 4D. 1 and 3Ans: D

279. Unemployment which occurs whenworkers move from one job to another job isknown as :A. seasonal unemploymentB. technological unemploymentC. frictional unemploymentD. cyclical unemploymentAns: C

280. National income ignoresA. sale of landB. sales of firmC. exports of the IT sectorD. salary of employeesAns: D

281. Which of the following is not a direct tax?A. Sales taxB. Wealth taxC. Corporation taxD. Estate taxAns: A

282. Consider the following statements:1. Reserve Bank of India was nationalized on 26January, 19502. The borrowing programme of the Governmentof India is handled by the Department ofExpenditure, Ministry of FinanceWhich of the statements given above is/arecorrect?A. Neither 1 nor 2B. 1 onlyC. 2 onlyD. Both 1 and 2Ans: A

283. Identify the correct sequence of theestablishment of steel plants in India from theearliest to the latest:A. Bokaro, Jamshedpur, Vishakhapatnam, BhilaiB. Jamshedpur, VishakhapatnamC. Bhilai, Jamshedpur, Vishakhapatnam, BokaroD. Jamshedpur, Bhilai, Bokaro, VishakhapatnamAns: D

284. Which of the following statements is/arecorrect?1. NIFTY is based upon 50 firms in India.2. NIFTY is governed and regulated by theReserve Bank of India.3. NIFTY does not trade in mutual fundsSelect the correct answer using the code givenbelow:A. 2 onlyB. 3 onlyC. 1 and 3D. 1 onlyAns: D





285. 'The strategy of Rolling plan was adoptedduring the Prime Ministership of:A. Morarji DesaiB. Indira GandhiC. Lal Bahadur ShastriD. Rajiv GandhiAns: A

286. After 1991, the Central Governmentimplemented various far-reaching reforms in thearea of taxation. This was based on therecommendations of the:A. Wanchoo CommitteeB. Rajah Chelliah CommitteeC. Narsimhan CommitteeD. Raj CommitteeAns: B

287. Consider the following:1. Market Borrowing2. Treasury Bills3. Special Securities to the RBIWhich of these is/are components of internaldebt of the government?

A. 1 onlyB. 1 and 2C. 1 and 3D. 1, 2 and 3Ans: D

288. Consider the following statements:The price of any currency in internationalmarket is decided by the1. World Bank2. Demand for goods/services provided by thecountry concerned3. stability of the government of the concernedcountry4. economic potential of the country in questionOf these statements:

A. 3 and 4 are correctB. 2 and 3 are correctC. 1, 2, 3 and 4 are correctD. 1 and 4 are correctAns: B

289. What is Green Gold?A. CoffeeB. Tea

C. RiceD. GoldAns: B

290. Consider the following statements aboutWholesale Price Index (WPI) :1. It captures the price movement extensivelyand is, therefore, taken as an indicator ofinflation.2. The office of the Economic adviser (OEA) isentrusted with the function of compilation andpublication of the weekly wholesale price indexnumber in India.Which of the statements given above is/arecorrect?A. Both I and IIB. II onlyC. Neither I nor IID. I onlyAns: A

291. Which of the following prints currencynotes of the denomination of Rs. 100?A. The Security Printing Press, HyderabadB. The Indian Security Press, Nasik RoadC. All of the aboveD. The Bank Note Press, DewasAns: D

292. Deficit financing creates additional papercurrency to fill the gap between expenditure andrevenue. This device aims at economicdevelopment but if it fails, it generates :A. inflationB. demonetizationC. deflationD. devaluationAns: A

293. An amount given by a government agencyor even private body to encourage a particulareconomic activity is a :A. loanB. mutual fundC. grantD. subsidyAns: D

294. A tax that takes away a higher proportionof one's income as the income rises is termed asA. indirect tax





B. proportional taxC. progressive taxD. regressive taxAns: C

295. India is regarded as a country withDemographic Dividend. This is due toA. Its high population in the age group below 15yearsB. Its high population in the age group above 65yearsC. Its high population in the age group of 15-64yearsD. Its high total populationAns: C

296. The Indian Rupee is fully convertible:1. In respect of Current Account of Balance ofPayments2. In respect of Capital Account of Balance ofPayments3. Into GoldWhich of these statements is/are correct ?

A. 1, 2 and 3B. 3 onlyC. 1 onlyD. 1 and 2 onlyAns: C

297. Consider the following statements:2. NTPC is the largest power utility in India.3. ONGC accounts for half of the LPG productionin India.4. Indian Oil Corporation operates all the oilrefineries in India.5. The Indian Ordnance Factory is the largestdepartmentally run industrial undertaking in thecountry.Which of these statements is/are correct?A. 1 and 4B. 2 and 3C. 1 onlyD. 2, 3 and 4Ans: A

298. Match the following:Commission Matter of EnquiryA. Wadhwa Commission 1. The assassination ofRajiv GandhiB. Liberhan Commission 2. Killing of Graham

StainesC. Sri Krishna Commission 3. Demolition of areligious structure at AyodhyaD. Jain Commission 4. Riots in Mumbai in 1993A B C D

A. 3 2 4 1B. 2 3 1 4C. 3 2 1 4D. 2 3 4 1Ans: D

299. Which of the following is the Banker of theBanks?A. SBI and RBIB. RBIC. SBID. IDBIAns: B

300. The Second Five Year Plan laid more stressupon:A. removing povertyB. self-relianceC. industrialisationD. agricultureAns: C

301. The objective of self-reliance and zero netforeign aid was declared in :A. Third 5-Yr PlanB. Fifth 5-Yr PlanC. Fourth 5-Yr PlanD. Second 5-Yr PlanAns: C

302. When the Reserve Bank of India announcesan increase of the Cash Reserve 'Ratio, whatdoes it mean?A. The Reserve Bank of India will have lessmoney to lendB. The Union Government will have less moneyto lendC. The commercial banks will have more moneyto lendD. The commercial banks will have less moneyto lendAns: D

303. To meet the growing needs for coins in thecountry, where does the Government propose to





set up another mint?A. NasikB. HoshangabadC. NoidaD. DewasAns: C

304. The main argument advanced in favour ofsmall scale and cottage industries in India isthat:A. they require small capital investmentB. they advance the goal of equitabledistribution of wealthC. they generate a large volume of employmentD. cost of production is lowAns: C

305. In order to be scheduled to the ReserveBank of India, a bank should have capital andreserve of not less than:A. 5 lakhsB. 1 lakhC. 50 IakhsD. 10 lakhsAns: A

306. In gross domestic saving by sector oforigin, the four sectors in order of importanceare:A. Household Sector, Public Enterprises,Government Sector, Corporate SectorB. Household Sector, Government Sector, PublicEnterprises, Corporate SectorC. Household Sector, Corporate Sector,Government Sector, Public EnterprisesD. Government Sector, Household Sector, PublicEnterprises, Corporate SectorAns: C

307. An underdeveloped economy is generallycharacterised by :1. Iow per capital income2. Iow rate of capital formation3. Iow dependency figure4. working force largely in the tertiary sector

A. 1 and 4B. 2 and 3C. 1 and 2D. 3 and 4Ans: C

308. Which of the following organisations inIndia is mainly' working to meet the credit needsof all types of agricultural and rural developmentactivities?A. FCIB. NABARDC. ICARD. IDBIAns: B

309. India's economic zone extends ______ milesoff its coast:A. 200B. 100C. 250D. 150Ans: A

310. Math the following:List I List IIA. Income Tax 1. Levied and collected by theCentral GovernmentB. Corporation 2. Levied and collected Tax bythe Central Government and shared with theState GovernmentsC. Professional 3. Levied by the Central TaxGovernment but collected and appropriated bythe State GovernmentsD. Stamp Duties 4. Levied and collected by theState Governments5. Levied and collected by the local bodiesA B C D

A. 2 1 5 3B. 1 2 3 5C. 2 1 4 3D. 1 2 3 4Ans: C

311. Which of the following are not features ofIndia's small-scale industries in general?1. large employment potential2. great export potential3. highly skilled labour4. efficient marketing system

A. 3 and 4B. 1 and 3C. 1 and 2D. 2 and4Ans: A





312. Sunrise Industries are Industries:A. which improve export performance of thecountryB. which have high growth potential and meetfurther requirements of the economyC. which are well-developed and have amplescope for further developmentD. which are small-scale industriesAns: B

313. Ad Valorem means:A. according to sizeB. according to valueC. according to weightD. according to advertisement costsAns: B

314. Which among the following formulatesfiscal policy?A. Finance MinistryB. RBIC. Planning CommissionD. SEBIAns: A

315. Which of the following sectors does notcome under tertiary sector?A. ElectricityB. TransportC. TradeD. Business ServicesAns: A

316. CENVAT is associated with:A. rate of direct taxB. rate of income taxC. none of the aboveD. rate of indirect taxAns: D

317. A budgetary deficit means:A. total expenditure is more than total revenueB. current expenditure is more than currentrevenueC. total expenditure is more than currentrevenueD. capital expenditure is more than capitalrevenueAns: A

318. Match the following :

Five Year Plan EmphasisA. First 1. Food Security and womenempowermentB. Second 2. Heavy industriesC. Fifth 3. Agriculture and communitydevelopmentD. Ninth 4. Removal of povertyA B C D

A. 3 4 2 1B. 1 4 2 3C. 1 2 4 3D. 3 2 4 1Ans: D

319. India earns maximum foreign exchangefrom the export of:A. garmentsB. gems and jewelleryC. juteD. cottonAns: B

320. A steady increase in the general level ofprices as a result of excessive increase inaggregate demand as compared to aggregatesupply is termed as :A. structural inflationB. stagflationC. cost-push inflationD. demand-pull inflationAns: D

321. The Indian income tax is :1. direct2. progressive3. indirect4. proportional

A. 1 and 2B. 1 and 4C. 3 and 4D. 2 and 3Ans: A

322. Of the various ways of financinggovernment's investment expenditure, the leastinflationary is :A. foreign aidB. taxationC. deficit financing





D. public borrowingAns: B

323. Match the following:Aluminium Company LocationA. BALCO 1. HirakudB. HINDALCO 2. KorbaC. Indian Aluminium Company 3. KoraputD. NALCO 4. RenukootA B C D

A. 3 4 1 2B. 3 1 4 2C. 2 1 4 3D. 2 4 1 3Ans: D

324. The existence of a Parallel Economy orBlack Money:A. makes the monetary policies less effectiveB. ensures increasing productive investmentC. makes the economy more competitiveD. ensures a better distribution of income andwealthAns: A

325. The type of unemployment mostly found inIndia can be characterised as :A. cyclicalB. structuralC. frictionalD. disguisedAns: D

326. If saving exceeds investment, the nationalincome will :A. remain constantB. riseC. fluctuateD. fallAns: A

327. The national income of India is estimatedmainly through:A. production and expenditure methodsB. production and income methodsC. expenditure method aloneD. production method aloneAns: B

328. The main reason for low growth rate in

India, inspite of high rate of savings and capitalformation is:A. low level of foreign aidB. high birth rateC. low capital/output ratioD. high capital/output ratioAns: C

329. When was the Reserve Bank of India takenover by the Government?A. 1945B. 1956C. 19S2D. 1948Ans: D

330. What is the difference between Debenturesand Equity?A. An equity shareholder cannot withdraw hisamount whereas debentures can be withdrawnby taking back the amountB. Both debenture and equity holders have theright of voting irrespective of the proportion ofholdings but debentures are of lower value thanequityC. Equity shareholding is more risky, comparedto debentures which are bound to return goodinterest on the principalD. Debentures are sealed bonds acknowledgingthat money has been borrowed; equity is ashareholder's share voting rights in proportionto his shareholdingAns: D

331. Deficit financing is spending:A. in excess of revenueB. by getting foreign aidC. less than what is neededD. by borrowing from abroadAns: A

332. Match the following:Institutions Year of FormationA. National Stock Exchange 1. 1989B. OTCEI 2. 1992C. SEBI 3. 1993D. CARE 4. 1988A B C D

A. 1 2 3 4B. 3 1 4 2





C. 2 1 3 4D. 2 1 4 3Ans: D

333. The liabilities of a commercial bank are:1. time deposits2. security holdings3. demand deposits4. advances from the central bank

A. 1 and 3B. 1, 2 and 3C. 2 and 4D. 1, 3 and 4Ans: D

334. Which one among the following is not acomponent of fiscal policy?A. Public debt policyB. Public expenditure policyC. Taxation policyD. Trade policyAns: D

335. 40. The arguments to support opening upof the Insurance sector in India were:1. It will provide wider choice to customers2. It will infuse competition and efficiency3. It will widen the base of long term funds 4. Itwill improve balance of payments positionChoose the correct answer from:A. B. C. 1D. Ans: AAns: BAns: D

336. Which industry in India was worst affectedbecause of the partition?A. Cotton and SugarB. Jute and CottonC. Engineering and CementD. Paper and IronAns: B

337. Which one of the following is not a featureof Value Added Tax?A. It is a multi-point destination-based system oftaxation""

B. It is a tax on the final consumption of goodsor services and must ultimately be borne by theconsumerC. It is basically a subject of the CentralGovernment and the State Governments are onlya facilitator for its Successful implementationD. It is a tax levied on value addition at eachstage of transaction in the productiondistribution chainAns: C

338. The Planning Commission is :A. a Government departmentB. an Advisory bodyC. an Autonomous CorporationD. a MinistryAns: B

339. The headquarters of IMF and World Bankare located at :A. Geneva and MontrealB. Both Washington DCC. Geneva and ViennaD. New York and GenevaAns: B

340. An essential attribute of inflation is:A. fall in productionB. absence of black marketC. presence of black marketD. increase in pricesAns: D

341. The total value of goods and services,produced' in a country during a given period isA. Per capital incomeB. Disposable incomeC. National incomeD. Net national incomeAns: C

342. In which of the following industries is themaximum number of women employed in India?A. TeaB. JuteC. TextileD. CoalAns: A

343. Which of the following is not an asset heldby commercial banks?





A. Money lent at short noticeB. Bills of exchangeC. Current account depositsD. Credit balances with the Reserve BankAns: C

344. Match the following:A. Fiscal Deficit 1. Difference between TotalExpenditure and total receiptsB. Budget Deficit 2. Difference between RevenueExpenditure and Revenue ReceiptC. Revenue Deficit 3. Difference between TotalExpenditure and Revenue Receipts plus non-debt creating capital receiptsD. Primary Deficit 4. Difference between TotalExpenditure and Revenue Receipts plus non-debt creating capital receipts minus interestpaymentsA B C D

A. 4 3 2 1B. 1 3 2 4C. 3 1 2 4D. 3 1 4 2Ans: C

345. How many languages are used on a tenrupee note?A. 10B. 15C. 2D. 7Ans: B

346. Which of the following are the functions ofthe Central Bank of India?1. Regulation of currency and flow of creditsystem2. Maintaining exchange value of rupee3.Formulating monetary policy of India4. Supervisory powers over the indigenousbankers and leasing companies

A. 1, 2 and 4B. 1, 2, 3 and 4C. 1 and 3D. 1, 2 and 3Ans: B

347. For internal financing of Five Year Plans,the government depends on:

A. taxation and public borrowingB. public borrowing and deficit financingC. taxation, public borrowing and deficitfinancingD. taxation onlyAns: D

348. Economic Planning is a subject:A. unspecified in any special listB. in the Concurrent ListC. in the Union ListD. in the State ListAns: C

349. One of the reasons for India's occupationalstructure remaining more or less the same overthe years has been that:A. productivity in agriculture has been highenough to induce people to stay with agricultureB. ceilings on land holdings have enabled morepeople to- own land and hence their preferenceto stay with agricultureC. investment pattern has been directed towardscapital intensive industriesD. people are largely unaware of thesignificance of transition from agriculture toindustry for economic developmentAns: D

350. A rolling plan was a plan for:A. three yearsB. five yearsC. year to year basisD. one yearAns: D

351. National income refers to:A. money value of capital goods produced by acountry during a year.B. money value of stocks and shares of a countryduring a year.C. money value of goods 'and services producedin a country during a year.D. money value of consumer goods produced bya country during a year.Ans: C

352. Share of Direct tax in post economicreform is:A. decreasingB. can't say anything





C. fluctuatingD. increasingAns: D

353. What is the animal on the insignia of theRBI ?A. LionB. TigerC. ElephantD. PantherAns: D

354. Which of the following is not shared by theCentre and the States?A. Corporation TaxB. Sales TaxC. Income TaxD. Union Excise DutiesAns: B

355. The best means of saving during inflationis to keep:A. time deposits with BanksB. equityC. moneyD. Government BondsAns: C

356. Who was the first Deputy Chairman ofPlanning Commission of India?A. Shri V.T.KrishnamachariB. Shri Jawaharlal NehruC. Dr.Rajendra PrasadD. Shri C.RajagopalachariAns: A

357. The Reserve Bank of India issues:A. all the currency notes except the hundredrupee noteB. all the currency notesC. all the currency notes except the one rupeenoteD. only notes of Rs. 10 and aboveAns: C

358. Which of the following is wronglymatched?A. Depression: Insufficient demand causinglarge scale unemployment of men and machineryover a long period of timeB. Recession: Reduction in demand and

production/ investment over a short period oftimeC. Stagflation: slow pace of economic activitydue to falling pricesD. Boom: Rapid and all-round spurt in economicactivityAns: C

359. In which year, some more commercialbanks (in addition to the first lot of 14) werenationalised in India?A. 1980B. 1979C. 1982D. 1976Ans: A

360. Rupee was devalued by what percent inJuly 1991 ?A. 22B. 20C. 18D. 25Ans: B

361. Who is regarded as the founder of thescientific Socialism?A. EngelsB. Karl MarxC. LeninD. RousseauAns: B

362. In India GDP is higher than GNP becausecountry's:A. net factor income is negativeB. capital inflow > capital outflowC. Govt. expenditure is more than it's incomeD. import > exportAns: D

363. Consider the followingstatements:Regional disparities in India are highand have been rising in recent years because:1. There is persistent investment over time onlyin Select locales2. Some areas are agro climatically lessconducive to development3. Some are as continue to face little or noaqrarian transformation and the consequent lackof social and economic opportunities





4. Some areas have faced continuous politicalinstability.Which of the above statements are correct?A. 1, 3 and 4B. 2, 3 and 4C. 1, 2 and 3D. 1, 2 and 4Ans: C

364. Which one of the following statements isnot correct?A. Nikkei is the stock market index for the TokyoStock ExchangeB. S and P CNX Nifty is the index for 50 largecompanies on the Bombay Stock ExchangeC. Hang Seng Indexes record daily changes ofthe largest companies of the Hong Kong stockmarketD. The National Association of SecuritiesDealers Automated Quotations known asNASDAQ, is an American stock exchangeAns: B

365. The inflation experienced in the country atpresent is:A. unrealistic inflationB. galloping inflationC. cost-push inflationD. secondary inflationAns: C

366. Which of the following bodies finalises theFive Year Plan proposals?A. Planning CommissionB. National Development CouncilC. Ministry of PlanningD. Union CabinetAns: B

367. New exim policy has choosen a town forthe pottery export :A. MoradabadB. KhurjaC. PanipatD. AgraAns: B

368. Match the following:A. Dutt Committee 1. Village and Small ScaleIndustriesB. Raj Committee 2. Direct Taxes

C. Wanchoo Committee 3. Agricultural TaxesD. Karve Committee 4. Industrial LicensingA B C D

A. 4 3 2 1B. 1 4 3 2C. 2 3 4 1D. 1 2 3 4Ans: A

369. The central banking functions in India areperformed by the:A. State Bank of IndiaB. Reserve Bank of IndiaC. Central BankD. Both (b ) and (c )Ans: B

370. The Zero Base Budgeting in India was firstexperimented from:A. None of theseB. April, 1987C. April, 1991D. April, 2000Ans: B

371. Which of the following measures should betaken when an economy is going throughinflationary pressures?1. The direct taxes should be increased.2. The interest rate should be reduced.3. The public spending should be increasedSelect the correct answer using the code givenbelow:Code:

A. 2 and 3B. 2 onlyC. 1 and 2D. 1 onlyAns: B

372. Buffer stocks of foodgrains have helped theGovernment to achieve all but one of thefollowing:A. provide balanced diet to massesB. implement employment generationprogrammesC. maintain Public Distribution SystemD. solve food problemAns: A





373. Which of the following are under thepurview of Industrial Development Bank ofIndia?1. Unit Trust of India2. Life Insurance Corporation of India3. Export-Import Bank4. State Finance Corporation of India

A. 1, 2 and 3B. 2, 3 and 4C. 1, 3 and 4D. 1, 2 and 4Ans: B

374. Consider the following taxes:1. Corporation Tax2. Value Added Tax3. Wealth Tax4. Import dutyWhich of these is/are Indirect taxes?

A. 1, 2 and 4B. 2 and 4C. 1 onlyD. 1 and 3Ans: B

375. Which of the following is not true about theReserve Bank of India?A. Foreign exchange reserves are kept by RBIB. One rupee notes and coins are issued by RBIC. It maintains the exchange value of the rupeeD. It regulates the currency and credit system ofIndiaAns: B

376. Rate of growth of an economy is measuredin terms of:A. per capita incomeB. industrial developmentC. national incomeD. number of people who have been lifted abovethe poverty lineAns: C

377. Who wrote the book 'Planned Economy forIndia'?A. M. VisvesvarayaB. Mahatma GandhiC. Jawaharlal NehruD. Sardar Vallabhbhai Patel

Ans: A

378. Which state produces maximum Soyabean?A. Madhya PradeshB. Uttar PradeshC. BiharD. RajasthanAns: A

379. The principal source of revenue to theState Government in India is :A. Land RevenueB. Sales TaxC. State Excise DutiesD. Income TaxAns: B

380. Which one of the following pairs is notcorrectly matched?A. Jet Airways - Air SaharaB. Kingfisher Airlines - MDLR AirlinesC. Hindalco Industries - NovelisD. Tata Steel - Corus GroupAns: B

381. Railway Budget in India was separatedfrom general budget in :A. 1941-42B. 1950-51C. 1924-25D. 1947-48Ans: C

382. Consider the following statements:1. The Ministry of External Affairs is in-charge ofmonetary policy in India.2. The. Ministry of External Affairs is in-chargeof foreign exchange rate determination in India.3. The Ministry of Commerce puts forward theExport-Import Policy in India.4. The Planning Commission prepares theAnnual Budget of the GovernmentWhich of the statements is/are correct ?A. 3 onlyB. 2 onlyC. 2 and 4D. 1, 2, and 3Ans: A

383. Which one of the following is the task ofthe Planning Commission?





A. Financing of the planB. Implementation of the planC. Both ( a) and (b )D. Preparation of the planAns: D

384. UTI has been divided into two parts UTI-Iand UTI-II. Which part has been kept under thecontrol of the government?A. UTI-IB. UTI-IIC. Both the aboveD. None of the aboveAns: A

385. The tax whose share in overall taxationrevenue has gone up rapidly during the planningperiod is :A. wealth taxB. capital gains taxC. income taxD. tax on productionAns: D

386. The prices at which the governmentpurchases food grains for maintaining the publicdistribution system and for building up bufferstocks are known as :A. Issue PricesB. Ceiling PricesC. Procurement PricesD. Minimum Support PricesAns: C

387. Which statement is correct for IndianPlanning Commission?A. Members and Vice-Chairman of it do not havefixed working durationB. Members do not require any minimumeducationC. It is not defined in Indian ConstitutionD. All of the theseAns: D

388. In recent years the capital outlays for thedefence service have been:A. increasing steadilyB. more or less constantC. fluctuating frequentlyD. going down steeplyAns: A

389. Main bearers of the burden of indirect taxare:A. consumesB. tax payersC. manufacturersD. tradersAns: A

390. An advalorem duty is a tax on the basis of:A. the advertisement expenditureB. the unit of the commodityC. the price of a commodityD. the value addedAns: C

391. The special paper required for printing ofcurrency notes by the Security Presses In thecountry is manufactured at :A. HyderabadB. DewasC. HoshangabadD. KolkataAns: C

392. The Issue Department of the RBI maintainsa _______ against printing of notes:A. Proportional Reserve SystemB. Proportional Foreign Securities ReserveSystemC. Minimum Reserve SystemD. Proportional Gold Reserve SystemAns: C

393. GDR means:A. 'global development range' which has beenset up by UNO for developing countriesB. 'geographically developed regions' as definedby the UNDPC. 'gross domestic ratio' which is a macroaggregateD. 'global depository receipt' which is themechanism to raise funds from internationalmarketAns: D

394. The earlier name of the WTO was:A. OECDB. UNCTADC. GATTD. UNIDOAns: C





395. The main difference between shares anddebentures is :A. debentures can only be issued after sharesB. shareholders receive dividend on shareswhereas debenture holders receive interest ondebenturesC. debentures can be partly converted intoshares whereas shares cannot be converted intodebenturesD. shareholders are the owners of the companywhereas debenture holders are the creditors ofthe companyAns: D

396. What is the minimum calorie intakedecided by the Planning Commission for ruraland urban areas, respectively ?A. 2100 and 2200B. 2400 and 2200C. 2400 and 2100D. 2100and 2400Ans: C

397. The International DevelopmentAssociation, a lending agency, is administered bytheA. International Fund for AgriculturalDevelopmentB. International Bank for Reconstruction andDevelopmentC. United Nations Industrial DevelopmentOrganizationD. United Nations Development ProgrammeAns: B

398. Consider the following statements inrespect of the National Rural EmploymentGuarantee Act, 2005 :1. Under the provisions of the Act, 100 days ofemployment in a year to every household whoseadult members volunteer to do unskilled manualwork has become a fundamental right.2. Under the provisions of the Act, women are toget priority to the extent that one-half of personswho are given employment are women who haveasked for work. Which of the statements givenabove is/are correct?

A. Neither 1 and 2B. 1 onlyC. 2 only

D. Both 1 and 2Ans: C

399. VAT is alternate of:A. central taxB. state taxC. neither ( a) nor ( b)D. both (a ) and (b )Ans: A

400. In India, the service tax was firstintroduced in the year:A. 1994B. 1992C. 1996D. 1998Ans: A

401. 'Take off stage' in an economy means:A. economy is stagnantB. steady growth beginsC. economy is about to collapseD. all controls are removedAns: B

402. One-rupee currency notes bear thesignature of:A. Prime Minister of IndiaB. Finance Minister of IndiaC. President of IndiaD. Finance Secretary of IndiaAns: D

403. Which of the following are referred to asthe developed economies?A. Countries proficient in trade and exportB. Countries having large per capita incomeC. Countries earning huge industrial profitsD. Countries advanced in technologyAns: B

404. Indian Railways revenue from:A. freightB. passenger taxC. passenger fareD. traffic taxAns: A

405. Which one of the following statements isnot correct?A. Salem Steel Plant is a premier producer of





stainless steel in India.B. Maharashtra Elektrosmelt Ltd. is a subsidiaryof the Steel Authority of India Ltd.C. Visakhapatnam Steel Plant is a unit of theRashtriya Ispat Nigam Ltd.D. Rourkela Steel Plant, the first integrated steelplant in the Public Sector of India was set upwith the Soviet Union collaboration.Ans: D

406. Poverty in less developed countries islargely due toA. lack of intelligence of the peopleB. voluntary idlenessC. income inequalityD. lack of cultural activitiesAns: C

407. Basel II relates to which one of thefollowing?A. Measures against cyber crimesB. International standards for measuring theadequacy of a bank's capitalC. International standards for safety in civilaviationD. Measures against drug abuse by sportspersonsAns: B

408. Which one of the following situationsmakes a firm most efficient?A. Falling average costsB. Constant average costsC. Rising average costsD. Lowest average costsAns: D

409. Which of the following provides the largestpart of the demand for loanable funds in India?A. Corporate businessesB. Private-house purchasersC. Hire-purchase borrowersD. FarmersAns: A

410. Which of the following taxes is not leviedby the Union Government?A. Profession TaxB. Income TaxC. Wealth TaxD. Excise Duty

Ans: A

411. The 'Uruguay Round' negotiations resultedin the establishment of:A. WHOB. OECDC. NATOD. WTOAns: D

412. The deputy chairman of the PlanningCommission:A. is an economist of reputeB. is the Prime MinisterC. holds the rank of a cabinet ministerD. is the Planning MinisterAns: C

413. Under VAT, how many slabs are there?A. 4B. 3C. 2D. 5Ans: A

414. Consequent 'upon the recommendations ofthe Working Group on Rural Banks, 5 RuralRegional Banks were initially set up in the yearA. 1973B. 1975C. 1974D. 1976Ans: B

415. Which one of the following Five-Year Plansrecognised human development as the core of alldevelopmental efforts?A. The Eighth Five-Year PlanB. The Sixth Five-Year PlanC. The Fifth Five-Year PlanD. The Third Five-Year PlanAns: A

416. The primary objective of Unit Trust of Indiais:A. to promote the investment habit among thosewho have not been able to diversify investmentriskB. to accumulate funds for public investmentexpenditureC. to assist the industries in financial difficulties





D. to diffuse the benefit of development amongthe massesAns: A

417. The recommendations of the FinanceCommission are:A. not binding on the governmentB. binding on the governmentC. accepted or rejected by the governmentaccording to its convenienceD. generally accepted as a matter of conventionAns: C

418. Consider the following financialinstitutions of India:1. Industrial Finance Corporation of India (IFCI)2. Industrial Credit and Investment Corporationof India (ICICI)3. Industrial Development Bank of India (IDBI)4. National Bank for Agriculture and RuralDevelopment (NABARD)The correct chronological sequence of theestablishment of these institutions is :A. 1, 2, 3, 4B. 2, 3, 4, 1C. 3, 4, 1, 2D. 4, 1, 2, 3Ans: A

419. Who is called the 'Father of Economics' ?A. Max MullerB. None of theseC. Adam SmithD. Karl MarxAns: C

420. Monetary policy is regulated by:A. Central BankB. private entrepreneursC. money lendersD. Government policyAns: A

421. Consider the following statements:In India, stamp duties on financial transactionsare:1. levied and collected by the State Government2. appropriated by the Union GovernmentWhich of the statements is/are correct?A. Only 2B. Only 1

C. Both 1 and 2D. Neither 1 nor 2Ans: D

422. Consider the following statements:Full convertibility of the rupee may mean:1. its free float with other internationalcurrencies.2. its direct exchange with any otherinternational currency at any prescribed placeinside and outside the country.3. it acts just like any other internationalcurrency.Which of these statements are correct?A. 1 and 3B. 1, 2 and 3C. 1 and 2D. 2 and 3Ans: C

423. Octroi is levied and collected by:A. local bodiesB. State GovernmentC. all the aboveD. CentreAns: A

424. How do we define the terms bull and bearwith regard to stock markets?A. There is nothing significantly different asboth operate in the capital marketB. A bull is ready to buy any share; a bear onlydeals in government securitiesC. A bull is an optimistic operator who first buysand then sells shares in expectation of the pricegoing up; a bear is a pessimistic market operatorwho sells the shares in expectation of buyingthem back at a lower priceD. Bull is one who first sells a share and thenbuys it at a lower price; bear means one whofirst buys and then sells it in expectation ofprices going upAns: C

425. Which of the following is/are treated asartificial currency?A. Both ADR and SDRB. SDRC. GDRD. ADRAns: B





426. Word Bull and Big are associated withwhich branch of commercial activity?A. Foreign TradeB. BankingC. Share MarketD. ManufacturingAns: C

427. Among the following, which one is not acredit rating agency operating in India?A. CAREB. Dow JonesC. ICRAD. CRISILAns: B

428. India is said to be in the second stage ofthe demographic transition because:A. death rates and birth rates are decliningsharplyB. none of the aboveC. birth rate is high but -death rate is decliningdue to improvement in healthy servicesD. both birth and death rates are highAns: C

429. Inflation is caused as a result of:A. fall in productionB. increase in money supplyC. increase in money supply without acorresponding increase in productionD. decrease in money supply without acorresponding decrease in productionAns: C

430. The place where bankers meet and settletheir mutual claims and accounts is known as :A. collection CentreB. treasuryC. clearing HouseD. dumping GroundAns: C

431. Sector-wise, maximum employment in thepublic sector is in :A. finance, insurance and real estateB. transport, storage and communicationC. community, social and personal servicesD. electricity, gas and waterAns: C

432. Among the reasons for disguisedunemployment in the rural areas is :A. high illiteracy rateB. heavy pressure of population along with slowimplementation of land reformsC. choice of a heavy industry model foreconomic developmentD. low levels of technological development in thecountryAns: D

433. In India, the first bank of limited liabilitymanaged by Indians and founded in 1881 was:A. Punjab and Sind BankB. Punjab National BankC. Hindustan Commercial BankD. Oudh Commercial BankAns: D

434. Which of the following is not a direct tax?A. Tax on incomeB. Tax on entertainmentC. Tax on expenditureD. Tax on wealthAns: B

435. Which of the following factors contributesto an inflationary trend?A. 15% fall in production of industrial goodsB. 15% increase in prices of agriculturalproductsC. 15% increase in supply of money in themarketD. none of theseAns: C

436. The basic objectives of Indian planning are:1. economic growth2. self-reliance3. employment generation4. population growth

A. 1, 2 and 4B. 1, 2 and 3C. 1, 2, 3 and 4D. 2 and 3Ans: B

437. The steel plants at Durgapur, Bhilai andRourkela were established during the period of:A. Fourth Five Year PIan





B. First Five Year PlanC. Third Five Year PlanD. Second Five Year PlanAns: D

438. India opted for 'Mixed Economy' in :A. Industrial Policy of 1948B. Second Five Year PlanC. None of the aboveD. Framing of the ConstitutionAns: A

439. In which one of the following five yearplans the actual growth performance in India inrespect of GDP (at factor cost) was less than thetarget set?A. Ninth five year planB. Eighth five year planC. Sixth five year planD. Seventh five year planAns: A

440. Which neighbouring country has objectionson Indian Baglihar Hydro-electric Project?A. NepalB. PakistanC. BangladeshD. BhutanAns: B

441. Consider the following statements:1. The loans disbursed to farmers under KisanCredit Card Scheme are covered underRashtriya Krishi Beema Yojna of Life InsuranceCorporation of India.2. The Kisan Credit Card holders are providedpersonal accident insurance of Rs.50000 foraccidental death and Rs. 25000 for permanentdisability.Which of the statement given above is/arecorrect?A. Neither 1 or 2B. 1 onlyC. Both 1 and 2D. 2 onlyAns: D

442. BoP (Balance of Payment) refers to :A. transactions relating only to exports andimportsB. systematic record of all its economic

transaction with the rest of the worldC. transactions in the flow of capitalD. transactions relating to receipts and paymentof invisiblesAns: B

443. In India, which of the following have thehighest share in the disbursement of credit toagriculture and allied activities?A. Commercial BanksB. Microfinance InstitutionsC. Cooperative BanksD. Regional Rural BanksAns: A

444. Consider the following statements:1. The National Housing Bank, the apexinstitution in housing finance in India, was setup as a wholly owned subsidiary of the ReserveBank of India2. The Small Industries Development Bank ofIndia was established as a wholly ownedsubsidiary of the Industrial Development Bank ofIndiaWhich of the statements given above is/arecorrect?A. Both 1 and 2B. 2 onlyC. 1 onlyD. Neither 1 nor 2Ans: A

445. The most important small-scale industry inIndia is that of:A. textilesB. handloomC. jewelleryD. juteAns: B

446. Consider the following statements withreference to Indira Gandhi National Old AgePension Scheme1. All persons of 60 years or above belonging tothe households below poverty line in rural areasare eligible.2. The Central Assistance under this Scheme isat the rate of Rs. 300 per month per beneficiary.Under the Scheme, States have been urged togive matching amounts.Which of the statements given above is/are





correct?A. Both 1 and 2B. 1 onlyC. Neither 1 nor 2D. 2 onlyAns: C

447. Which of the following groups suffer themost from inflation?A. CreditorsB. DebtorsC. Business classD. Holders of real assetsAns: A

448. Which organisation promotes the foreigntrade?A. MMTCB. STCC. All of theseD. ECGCAns: C

449. The National Stock Exchange functionsfrom:A. MumbaiB. KolkataC. New DelhiD. NagpurAns: A

450. Which one of the following statements isnot correct?A. Ministry of Social Justice and Empowermenthas scheme in which indigent people living inwelfare institutions like orphanges are given 15kg of food grains per person per month at BPLratesB. Under the Targeted Public DistributionSystem, the families Below Poverty Line areprovided 50 kg. of food grains per month perfamily at subsidised priceC. Under Annapurna Scheme, indigent seniorcitizens of 65 years of age or above eligible forNational Old Age Pension but not gettingpension can get 10 kg of food grains per personper month free of costD. Ministry of Human Resource Developmentgives financial support to Mid-Day Meal Schemefor the benefit of class I to V students inGovernment or Government aided Schools

Ans: B

451. Which of the following industries wasstarted first in India?A. PaperB. CottonC. TeaD. JuteAns: C

452. Human Development Index comprisesliteracy rates, life expectancey at birth and:A. gross national product in US dollarsB. gross domestic product per head in the USdollarsC. national income per head in US dollarsD. gross domestic product per head at realpurchasing powerAns: D

453. Which of the following is now a punishableoffence by a Bank Account holder ?A. If a cheque is not crossedB. If a post-dated cheque is issuedC. If a cheque drawn by him is dishonoured forinsufficiency of funds in his accountD. Issuing a cheque without signatureAns: C

454. The per capital foodgrains consumption:A. has fluctuatedB. has fallen steadily over the yearsC. has risen very slowlyD. has remained stagnantAns: C

455. The Rural Landless Employment GuaranteeProgramme (RLEGP) is an extension of:A. Integrated Rural Development Programme(IRDP)B. Training of Rural Youth for Self Employment(TRYSEM)C. Minimum Needs Programme (MNP)D. National Rural Employment Programme(NREP)Ans: D

456. Which of the following gives the maximumproduction of edible oil?A. MustardB. Groundnut





C. RapeseedD. SunflowerAns: B

457. Which one of the following is not a featureof Limited Liability Partnership firm?A. Internal governance may be decided bymutual agreement among partnersB. Partners should be less than 20C. It is a corporate body with perpetualsuccessionD. Partnership and management need not beseparateAns: B

458. Tax collection of Central govt. was lowestas compare to G.D.P., in which of the followingyear?A. 2000-2001B. 1999-2000C. 2002-2003D. 2001-2002Ans: B

459. By which bill does the government makearrangement for the collection of revenues for ayear?A. Economic BillB. Fiscal BudgetC. Finance BillD. Supplementary BudgetAns: C

460. Regional Rural Banks are designed to workin which of the following ideals?A. Work on innovative and adaptive idealsB. Work on basics of commercial banksC. Help the targetted groupsD. Keep lending rates lower than cooperativeinstitutionsAns: C

461. G-77 summit is a forum for:A. East-West CooperationB. South-South CooperationC. North-South CooperationD. North-North CooperationAns: C

462. Which of the following statementsregarding Indian agriculture is correct?

A. It contributes nearly 25 per cent of the GDPB. The share of foodgrains in gross cropped areahas increased since independenceC. India has the least area in the world underpulse cropsD. Agriculture accounts for twenty per cent ofIndia's exportsAns: A

463. Consider the following countries:1. Brazil2. Mexico3. South AfricaAccording to UNCTAD, which of the above is/arecategorized asEmerging Economies?A. 1 only""B. 1C. 2 and 3 onlyD.

464. Put the main sources of revenue of theCentral Government in ascending order ofimportance:1. Income tax2. Corporation tax3. Customs4. Excise duties

A. 3, 2, 4, 1B. 4, 3, 1, 2C. 4, 3, 2, 1D. 1, 2, 3, 4Ans: C

465. Which of the following is wronglymatched?A. Central Duck Breeding Farm – ChikmagalurB. Central Institute of Coastal Engineering forFisheries – BangaloreC. Indian Institute of Sugarcane Research –LucknowD. National Institute of Animal Genetics – KarnalAns: A

466. Which of the following authority sanctionsforeign exchange for the import of goods?A. Exchange BankB. Reserve Bank of IndiaC. Ministry of FinanceD. Any Nationalised BankAns: B





467. Which of the following is not sponsor ofnewly established UTI-II?A. General Insurance CorporationB. Punjab National BankC. State Bank of IndiaD. Life Insurance Corporation of IndiaAns: A

468. In the short run, a producer continues hisproduction as long as he covers:A. marginal costB. average costC. fixed costD. variable costAns: C

469. Voting rights in the IMF are distributed onthe basis of:A. proportion to quota alloted to countries fromtime to timeB. one country, one voteC. proportion to the share of the income of thecountry in the world incomeD. proportion to contributions given by eachcountryAns: A

470. India has:A. Mixed economyB. Free economyC. Socialistic economyD. Gandhian economyAns: A

471. The Five Year Plans of India intend todevelop the country industrially through:A. the public sectorB. the private sectorC. increasing collaboration with non-residentIndiansD. the public, private, joint and CooperativesectorsAns: D

472. The Imperial Bank of India, afternationalisation was given the name of:A. Bank of IndiaB. Reserve Bank of IndiaC. State Bank of IndiaD. Indian Overseas BankAns: C

473. Minimum inflation in post economic reformwas in :A. 1999-2000B. 2002-03C. 2001-02D. 2000-01Ans: A

474. The best way, a bank can avoid loss is to :A. give only short-term loansB. accept sound collateralC. lend only to individuals known to the bankD. lend only to bank's old customersAns: C

475. Gross National Product is less than GrossDomestic Product depending upon whether:A. net factor income from abroad is positive ornegativeB. indirect taxes are more than subsidiesC. indirect taxes are less than subsidesD. depreciation is included or notAns: A

476. Among the achievements of Indianplanning, we may include:1. development of strong infrastructure2. diversification of industry and exports3. high growth of national income4. strong control over prices

A. 2 and 3B. 1, 2 and 4C. 1, 2 and 3D. 1 and 2Ans: D

477. One of the following leads tounderestimation of national income in India: 1.Inflation2. Devaluation3. Non-Monetary consumption4. Large unorganized sectorChoose correct answer from:A. 1, 3 and 4B. 2, 3 and 4C. 1, 2, 3 and 4D. 3 and 4Ans: D

478. When was the decimal system of currency





introduced in India?A. 1957B. 1950C. 1948D. 1954Ans: A

479. Core industries include:A. industries catering to defence requirementsB. basic industriesC. all the aboveD. critical industriesAns: C

480. How does the consumer benefit with VAT?A. It reduces the cost of productionB. With the abolition of the sales taxC. Due to the exemption of small Businessesfrom the tax within certain limits prescribed bythe StateD. It removes tax on tax and thus reduces price-riseAns: D

481. Dear Money Policy implies:A. large money supplyB. high price levelC. high productionD. high interest ratesAns: D

482. Which one of the following is NOT with inthe duties of the Planning Commission?A. To define the stage of growth and suggestallocation of resourcesB. To determine the nature of machineryrequired for implementation of plan proposalsC. To make an assessment of the material,capital and human resources of the countryD. To prepare the annual central budgetAns: D

483. NAFED is concerned with:1. promotion of inter-state and export trade offarm produce2. import of foodgrains for buffer stocking andpublic distribution3. marketing of eggs and poultry' at nationallevel4. movement of consumer goods from surplusareas to scarcity areas

A. 1, 3 and 4B. 1, 2 and 3C. 3 and 4D. 1 and 2Ans: A

484. Which of the following is wrongly matched:A. interest rate-fiscal policyB. general price index-inflationC. export subsidy-fiscal policyD. share market-stock exchangeAns: A

485. In the context of Indian economy, considerthe following pairs: Term Most appropriatedescription1. Melt down Fall in stock prices2. Recession Fall in growth rate3. Slow down Fall in GDPWhich of the pairs given above is/are correctlymatched?

A. 1 and 3 onlyB. 2 and 3 onlyC. 1 onlyD. 1, 2 and 3Ans: C

486. Which one of the following is the correctstatements? Service tax is a/anA. indirect tax levied by the Central GovernmentB. direct tax levied by the State GovernmentC. indirect tax levied by the State GovernmentD. direct tax levied by the Central GovernmentAns: A

487. Special Drawing Rights (SOR) facility isavailable at :A. World Bank (IBRD)B. International Monetary Fund (IMF)C. Organisation of Economic Cooperation andDevelopment (OECD)D. International Development Association (lDA)Ans: B

488. 157. Which of the following statementsis/are correct?1. If a country is experiencing increase in its percapita GDPA. B.





C. D. Ans: AAns: BAns: CAns: D

489. The main objective of First Five-year Planwas:A. development of agriculture includingirrigation and power projectsB. self-relianceC. industrial growthD. economic growthAns: A

490. The Planning Commission of India:I. was set up in 1950II. is a constitutional bodyIII. is an advisory bodyIV. is a government departmentA. I and IIB. III onlyC. II and IIID. I and IIIAns: D

491. Consider the following statements:In India, taxes on transactions in StockExchanges and Futures Markets are 1. levied bythe Union2. collected by the StatesWhich of the statements given above is/arecorrect?A. 2 onlyB. Both 1 and 2C. Neither 1 nor 2D. 1 onlyAns: D

492. The increase in agricultural production isdue to: 1. increase in area under crops2. improvement in yield3. improvement in cropping pattern4. effective implementation of land reforms

A. 1, 2, 3 and 4B. 1 andC. 1, 2 and 3D. 1 and 3Ans: C

493. Which of the following expenses do notrequire the sanction of Parliament?I. Salary and allowances of the President andCAGII. Debt charges of the GovernmentIII. Defence expenditureIV. Maintenance expenditure of embassies

A. I, IIB. I, II, IIIC. II, IVD. I, II, III, IVAns: A

494. 'Balanced Growth' means:A. growth which brings about a balance betweenthe traditional and modern sectorB. growth which brings about a balancebetween the public and private sectorsC. growth pattern on which simultaneousinvestments are made in all the sectors of theeconomy, viz., Agriculture, Industry, Transport,Communication, etc.D. growth which brings about a balancebetween the rich and the poorAns: C

495. Which of the following may be termed aslong-term objectives of Indian planning?1. Self-reliance2. Productive employment generation3. Growth of 7 per cent per annum4. Growth in infrastructure

A. 1, 2 and 4B. 3 and 4C. 2, 3 and 4D. 1 and 2Ans: D

496. Which one of the following is a revamp ofthe Integrated Rural Development Programme?A. Community-based Pro-poor InitiativeB. Swarnajayanti Gram Swarozgar YojanaC. Jawahar Gram Samridhi YojanaD. National Social Assistance ProgrammeAns: B

497. The standard of living in a country isrepresented by its:A. poverty ratio





B. national incomeC. per capita incomeD. unemployment rateAns: C

498. Which two of the following nationalizedbanks have been merged as per therecommendation of the Narsimhan Committee?A. New Bank of India and Bank of IndiaB. Parur Bank of India and Bank of IndiaC. Punjab National Bank and New Bank of IndiaD. Central Bank of India and Corporation BankAns: C

499. Which one of the following is not related toUnited Nations?A. International Finance CorporationB. Multilateral Investment Guarantee AgencyC. International Centre for Settlement ofInvestment DisputesD. Bank for International SettlementsAns: D

500. The headquarters of World TradeOrganisation is in :A. GenevaB. MontrealC. The HagueD. SeattleAns: A

501. Which of the following is not part of statetax?A. Stamp duty other than financial documentsB. Sales and purchase of newspapersC. Entertainment taxD. Land revenueAns: B

502. In which Plan was the growth rate targetexceeded?A. FirstB. FifthC. None of theseD. SixthAns: A

503. Who is responsible for the collection andpublication of monetary and financialinformation?A. Finance Commission

B. Finance MinistryC. Auditor and Comptroller General of IndiaD. Reserve Bank of IndiaAns: D

504. Which of the statements given above is/arecorrect?1. The USSR assisted in the building of theBhilai Steel plant.2. The British assisted in the building of theBokaro Steel plant.

A. Neither 1 nor 2B. Both 1 and 2C. 1 onlyD. 2 onlyAns: C

505. Which one of the following Public Sectorbanks' emblem figures a dog and the words'faithful, friendly' in it ?A. Syndicate BankB. Oriental Bank of CommerceC. Punjab National BankD. State Bank of IndiaAns: A

506. Poverty Gap is :A. gap between the rich and the poorB. the difference between poverty line andactual income levels of all those living below thatlineC. gap between developed nations anddeveloping nationsD. gap in infrastructural facilities betweendeveloped and developing nationsAns: B

507. The Indian budget includes:A. revised estimates for the current yearB. budget estimates for the following yearC. actual figures of the preceding yearD. all of theseAns: D

508. M1 includes:A. demand deposit with bankB. other deposits with RBIC. currency with publicD. all of the aboveAns: D





509. Both Foreign Direct Investment (FOI) andForeign Institutional Investor (FII) are related toinvestment in a country. Which one of thefollowing statements best represents animportant difference between the two?A. FII is considered to be more stable than FDIB. FII helps in increasing capital availability ingeneral, while FDI only targets specific sectorsC. FII helps bring better management skills andtechnology, while FDI only brings in capitalD. FDI flows only into the secondary market,while FII targets primary marketAns: B

510. Under perfect competition:A. no firm can influence price and supply in themarketB. any firm can influence price in the marketC. any firm can influence supply in the marketD. any firm can influence price and supply in themarketAns: D

511. Consider the following statements:1. life Insurance Corporation of India is theoldest insurance company in India.2. National Insurance Company limited wasnationalized in the year 1972 and made asubsidiary of General Insurance Corporation ofIndia.3. Headquarters of United India InsuranceCompany limited are located at Chennai.Which of the statements given above arecorrect?A. 1 and 3, onlyB. 1 and 2, onlyC. 2 and 3, onlyD. 1, 2 and 3Ans: C

512. With reference to Indian economy,consider the following statements:1. The Gross Domestic Product (GDP) hasincreased by four times in the last 10 years.2. The percentage share of Public Sector in GDPhas declined in the last 10 years.Which of the statements given above is/arecorrect?A. 1 onlyB. Both 1 and 2C. 2 only

D. Neither 1 nor 2Ans: C

513. The oldest stock exchange of India is :A. Bombay Stock ExchangeB. Hyderabad Stock ExchangeC. Bangalore Stock ExchangeD. Ahmedabad Stock ExchangeAns: A

514. What is the current account of balance ofpayments?A. It is the account showing transactions like netexternal assistance, NRI deposits, etc.B. It is the account showing transactions ininvisible account like tourism, shipping,insurance etc.C. It is the account showing trade balance plusinvisible balanceD. It is the account showing difference of totalexports and imports in one yearAns: C

515. Which of the statements given below is/arecorrect?1. Food for Work Programme was launched inIndia during the 10th Five Year Plan.2. The Planning Commission in India is aconstitutional body.

A. Both 1 and 2B. Neither 1 nor 2C. 1 onlyD. 2 onlyAns: C

516. Economic growth is usually coupled withA. stagflationB. hyperinflationC. deflationD. inflationAns: D

517. Which one of the following is the correctsequence in the decreasing order of contributionof different sectors to the Gross DomesticProduct of India ?A. Services-Industry-AgricultureB. Services-Agriculture-IndustryC. Industry-Agriculture-ServicesD. Industry-Services-Agriculture





Ans: A

518. Which of the following combinations iscorrect?A. NABARD-Industrial LoansB. RRB-Agricultural financeC. RBI-Long term financeD. IDBI-Short term loansAns: B

519. Which one among the following is not aclause of World Trade Organization?A. Providing financial support to the countrieshaving deficit balance of paymentsB. Most favoured nation. treatmentC. Discouraging unfair trade practices such asantidumping and export subsidiesD. Lowering trade barriers with negotiationsAns: A

520. In India, the concepts ofminimum heedsanddirected anti-poverty programmes were theinnovations of: "A. Sixth Five-year PlanB. Seventh Five-year PlanC. Fourth Five-year PlanD. Fifth Five-year PlanAns: D

521. Inflationary Gap is a situationcharacterized by:A. excess of Aggregate Demand over AggregateSupply at the full employment levelB. Inflation coupled with recessionC. gap between Galloping Inflation and RunawayInflationD. Inflation that usually prevails in a developingcountryAns: A

522. With reference to BRIC countries, considerthe following statements:1. At present, China's GDP is more than thecombined GDP of all the three other countries.2. China's population is more than the combinedpopulation of any two other countries.Which of the statements given above is/arecorrect?

A. Both 1 and 2B. 2 only

C. 1 onlyD. Neither 1 nor 2Ans: C

523. Low productivity of agriculture in India isnot caused by:A. inadequate availability of inputsB. poor finance facilitiesC. subdivision of land holdingsD. less area under cultivationAns: D

524. What is the main objective of Antyodayaprogramme?A. Uplift the urban poorB. Uplift the landless labourC. Uplift the farmerD. Uplift the poorAns: D

525. Participatory Notes (PNs) are associatedwith which one of the following?A. United Nations Development ProgrammeB. Foreign Institutional InvestorsC. Consolidated Fund of IndiaD. Kyoto ProtocolAns: B

526. In India, which of the following isregulated by the Forward Markets Commission?A. Currency Futures TradingB. Both Commodities Futures and FinancialFutures TradingC. Commodities Futures TradingD. Equity Futures TradingAns: C

527. An individual's actual standard of livingcan be assessed byA. Per Capital IncomeB. Disposable Personal IncomeC. Gross National IncomeD. Net National IncomeAns: B

528. Match the following:List-I List-IIA. Depression 1. Coexistence-of inflation andstagnationB. Recession 2. Recovery from depressionC. Reflation 3. Reduction in production over ashort period





D. Stagflation 4. Insufficient demand leading toidle men and machinery over a long time5. Reduction in level of economy due to fallingpricesA B C DA. 3 4 2 1B. 4 3 2 1C. 4 3 2 5D. 1 2 3 5Ans: B

529. Temporary tax levied to obtain additionalrevenue is called:A. rateB. surchargeC. feeD. cessAns: B

530. For regulation of the Insurance Trade inthe country the Government has formed:A. General Insurance CorporationB. Insurance Regulatory and DevelopmentAuthorityC. SEBID. Reserve Bank of IndiaAns: B

531. To prevent recurrence of scams in IndianCapital Market, the Government has assignedregulatory powers to:A. SEBIB. SBIC. RBID. ICICIAns: A

532. Invisible trade is a trade:A. of government with other countriesB. of government with public institutionsC. of corporate and financial institutions withgovernmentD. of the services like the bank, marinecompanies and shipping companiesAns: D

533. The headquarters of OPEC (Organisationof Petroleum Countries) is at :A. AlgeriaB. TehranC. Vienna

D. Kuwait CityAns: A

534. Which of the following is the largest (interms of' turnover) Public Sector organisation inIndia?A. Indian Oil CorporationB. Bharat PetroleumC. Oil and Natural Gas CommissionD. Steel Authority of IndiaAns: A

535. In which of the Five Year Plans, preferencewas given to the weaker sections of the society ?A. FifthB. ThirdC. SecondD. FourthAns: A

536. Inflation implies:A. rise in prices of consumer goodsB. rise in money supplyC. rise in general price indexD. rise in budget deficitAns: C

537. In India the co-operative movement wasinitiated in the sector of :A. agricultural creditB. farmingC. consumer goods productionD. marketing of agricultural productsAns: A

538. Net factor income from abroad added toGDP gives:A. NDPB. GNPC. per capital incomeD. NNPAns: B

539. Match the following:List-I List-IIA. Year of the Great Divide 1. 1950B. Industrial Policy Resolution 2. 1921C. Setting up of Planning Commission 3. 1969D. Nationalisation of 14 Commercial banks 4.1956A B C D





A. 4 3 1 2B. 2 4 1 3C. 2 1 3 4D. 1 3 4 2Ans: B

540. The system of Budget was introduced inIndia during the viceroy alty of:A. DalhousieB. RiponC. CanningD. ElginAns: C

541. Which of the following activities wouldSmall Industries Development Bank of India(SIDBI) undertake under the new ruralindustrialisation programme?1. Consultation in erecting the project2. Providing marketing assistance and refinancefacilities at later stage3. Running the project during initial stage

A. Only 1B. Only 1and 2C. Only 2D. Only 2 and 3Ans: B

542. Open market operations of a Central Bankare sale and purchase of:A. trade billsB. government securitiesC. corporate securitiesD. foreign currenciesAns: A

543. Which part of separated UTI is underSEBl's regulation?A. UTI-IIB. None of the aboveC. Both the aboveD. UTI-IAns: A

544. Grants or advances made by the House toenable the government to carry on until thevoting of the demands for grants and passing ofthe General Appropriation Bill is called:A. supplementary budgetB. complementary budget

C. vote on accountD. contingency budgetAns: C

545. What are Open Market Operations ?A. Selling of currency by the RBIB. Sale of shares by FIIsC. Selling of gilt-edged securities by theGovernmentD. Activities of SEBI-registered brokersAns: C

546. Gadgil Formula refers to the allocation of:A. market borrowings between the StatesB. Central Plan assistance between the StatesC. tax proceeds between the StatesD. foreign aid between the Centre and StatesAns: C

547. India's wage policy is based on :A. productivityB. cost of livingC. standard of livingD. None of the aboveAns: B

548. A very rapid growth in prices in whichmoney loses its value to the point where evenbarter may be preferable is known as:A. inflationB. hyper-inflationC. deflationD. disinflationAns: B

549. The 'gilt-edged' market deals in :A. Corporate bondsB. bullionC. Govt. securitiesD. worn and torn currency notesAns: B

550. Which of the following is not true about'vote-on-account'?A. This allows the Government to withdraw anamount for a period with the consent ofParliamentB. It does not allow the Government to set forthe economic policies of the new plan whichstarts from April 1C. It prevents the Government from imposing





fresh taxes or withdrawing old oneD. It is a budget presented in the Parliament tocover the deficit left by the last budgetAns: D

551. Consider the following statements relatingto estimation of National Income :1. Foreigners working in Indian Embassies arenormal residents of India.2. Foreigners working in the office of WHO,World Bank. UNO etc. located in India are notnormal residents of India.3. Indians working in foreign embassies in Indiaare not normal residents of India. Which of thestatements given above is/are correct?

A. 1, 2 and 3B. 1 and 2C. 1 onlyD. 3 onlyAns: B

552. The area under cultivation is declining fastin the case of:A. sugarcaneB. juteC. cottonD. teaAns: B

553. Black money is :A. income on which payment of tax is usuallyevadedB. money earned through underhand dealsC. illegally earned moneyD. counterfeit currencyAns: A

554. In the context of India's Five Year Plans, ashift in the pattern of industrialization, withlower emphasis on heavy industries and more oninfrastructure begins inA. tenth PlanB. eighth PlanC. fourth PlanD. sixth PlanAns: B

555. Since 1951, in India:A. national income has increased but per capitalincome has decreased

B. national income has increased and per capitalincome has also increased but at a slower rateC. national income and per capital income haveincreased every yearD. national and per capital incomes have bothincreased fastAns: B

556. India had a plan holiday:A. after the liberation of Bangladesh in 1971B. after the India-Pakistan War in 1965C. after the China-India War of 1962D. after the drought of 1966Ans: D

557. Why has the general budget till recentlyalways been presented at 5 o' clock in theevening?A. It is a carry-over from times of British rulewhen the Budget could be discussed in theBritish Payment simultaneouslyB. It is a convention of official secrecyC. All countries present their budgets at thistimeD. So that there is no time for traders tomanipulate the pricesAns: A

558. Which of the following states ranks first interms of the maximum number of agrobasedindustries?A. PunjabB. GujaratC. West BengalD. KeralaAns: A

559. Which of the following is poorest state inIndia?A. BiharB. OdishaC. M.P.D. U.P.Ans: B

560. Persons below the poverty line in India areclassified as such based on whether:A. their daily wages fall below the prescribedminimum wagesB. they belong to agricultural labourerhousehold and the scheduled caste/tribe social





groupC. they are entitled to a minimum prescribedfood basketD. they get work for a prescribed minimumnumber of days in a yearAns: C

561. In India, the bank NABARD does notprovide refinance to :A. Regional Rural BanksB. State Land Development BanksC. Export-Import BanksD. Scheduled Commercial BanksAns: C

562. Inflation can be contained by:A. surplus budgetB. reduction in public expenditureC. increase in taxationD. all the aboveAns: D

563. Pradhan Mantri Gramodaya Yojana aimsat:A. generating employment in the rural areasB. meeting rural needs like Primary education;health care, drinking water, housing, rural roadsC. alleviating poverty micro-enterprisesD. strengthening the Panchayati Raj System inrural areasAns: B

564. The exports of India:A. are spread over several commodity groupsB. have not shown much of a change since1960-61C. are confined to a few itemsD. comprise mainly of agro-based productsAns: A

565. The number of Banks nationalised since1969 is :A. 20B. 14C. 12D. 8Ans: A

566. If the price of an inferior good falls, itsdemand:A. falls

B. can be any of the aboveC. remains constantD. risesAns: C

567. Development is :A. narrower than economic growthB. wider than economic growthC. synonymous with economic growthD. not related to economic growthAns: B

568. Swarn Jayanti Gram Swa-Rozgar Yojnacame into being in :A. April 1999B. July 2001C. April 1995D. April 1997Ans: A

569. Which one of the following is not a memberof Organization of the Petroleum ExportingCountries (OPEC)?A. AlgeriaB. BrazilC. EcuadorD. NigeriaAns: B

570. Highest milk producer in India is :A. PunjabB. GujaratC. HaryanaD. U.P.Ans: D

571. A Scheduled Bank is one which is includedin the:A. II Schedule of Banking Regulation ActB. II Schedule of Reserve Bank of India ActC. None of the aboveD. II Schedule of ConstitutionAns: A

572. Who was the chairman of National IncomeCommittee?A. V.K.R.V. RaoB. D.R. GadgilC. P. C. MahalanobisD. A.M. KhusroAns: C





573. Which institution provides long run financeto industries?A. GICB. All of theseC. UTID. LICAns: B

574. Which State produces maximum pulses inthe country?A. MaharashtraB. OdishaC. Madhya PradeshD. Uttar PradeshAns: C

575. Absolute Poverty means:A. poverty in terms of the basic minimum calorierequirementsB. poverty in terms of the prevailing price levelC. poverty in terms of absolute number of peopleD. poverty in terms of the absolute level ofunemploymentAns: A

576. Which one amongst the following has thelargest livestock population in the world?A. ChinaB. USAC. BrazilD. IndiaAns: D

577. Consider the following about the 'RollingPlan':I. A plan for the current year which includes theannual budgetII. A plan for a fixed number of years, say 3, 4 or5III. It is revised every year as per requirementsof the economyIV. A perspective plan for 10, 15 or 20yearsWhich of the above are correct?

A. I, II, III and IVB. I and IIIC. I and IID. II and IIIAns: B

578. India's economic planning CANNOT be

said to be :A. indicativeB. limitedC. imperativeD. democraticAns: C

579. The largest importer country of Indiantextile is :A. SingaporeB. ItalyC. GermanyD. USAAns: D

580. Indicative Planning being pursued in Indiasince the 8th Plan aims at ensuring that:1. Planning mechanism plays a facilitatory role2. Planning mechanism brings about a balancebetween need and supply3. Planning mechanism concerns itself withoptima! utilisation of resources4. Planning concerns itself with laying downbroad directions in which the economy shouldmoveChoose the correct answer from:A. 1, 2 and 4B. 2, 3 and 4C. 1 and 2D. 1, 2, 3 and 4Ans: D

581. Which of the following is at the apex ofIndustrial Finance in India?A. Reserve Bank of IndiaB. Industrial Credit and Investment Corporationof IndiaC. Industrial Finance CorporationD. Industrial Development Bank of IndiaAns: D

582. Bouncing of cheques has become anoffence. What is the punishment for the same:A. 1year imprisonmentB. 3 years imprisonmentC. 2 years imprisonmentD. 6 months imprisonmentAns: D

583. The RBI uses the following instruments forquantitative central of credit:





(i) Cash Reserve Ratio(ii) Bank Rate(iii) Open Market Operations(iv) Margin RequirementsChoose your answer from:

A. (ii) and (iv)B. (i), (ii), (iii) and (iv)C. (i) and (ii)D. (i), (ii) and (iii)Ans: D

584. More than one-third of the crude steelproduction of the world comes fromA. RussiaB. ChinaC. U.S.A.D. JapanAns: B

585. 'Dumping' in the context of internationaltrade refers to :A. exporting goods of inferior qualityB. exporting goods at prices below the actualcost of productionC. exporting goods only to re-import them atcheaper ratesD. exporting goods without paying theappropriate taxes in the receiving countryAns: B

586. The strategic aim of IRDP is :A. to provide more opportunities for ruralemployment and credit facilities at concessionalrate of interestB. to provide the required inputs for increasingagricultural productivityC. to reduce unemploymentD. none of theseAns: A

587. Match the following: Industry Product /serviceA. Grasim 1. CementB. Ranbaxy 2. AutomobilesC. Reliance 3. Oil and gasD. TELCO 4. PharmaceuticalsA B C D

A. 3 2 1 4B. 3 4 1 2

C. 1 4 3 2D. 1 2 3 4Ans: C

588. Under increasing returns the supply curveisA. parallel to the quantity-axisB. positively sloped from left to rightC. negatively sloped from left to rightD. parallel to the price-axisAns: B

589. Consider the following:1. Life expectancy at birth2. Gross enrolment ratio for schools3. Adult Literacy rate4. Per capita incomeWhich of the above is/are the parameters for themeasurement of Human Development Index byUNDP?A. 1, 2 and 4B. 4 onlyC. 1, 2, 3 and 4D. 1 and 3Ans: C

590. Fresh evalution of every item ofexpenditure from the very beginning of eachfinancial year is called:A. deficit BudgetingB. performance BudgetingC. fresh BudgetingD. zero-based BudgetingAns: D

591. Bokaro Steel Limited was established withthe assistance of:A. USAB. GermanyC. Soviet UnionD. UKAns: C

592. In terms of economy, the visit by foreignnationals to witness the XIX Common WealthGames in India amounted toA. ImportB. ExportC. ConsumptionD. ProductionAns: B





593. The Food For Work programme wasrenamed as:A. National Rural Employment Programme(NREP)B. Jawahar Rozgar Yojana (JRY)C. Rural Landless Employment GuaranteeProgramme (RLEGP)D. Integrated Rural Development Programme(IRDP)Ans: A

594. Economic survey is published by :A. Indian Statistical InstituteB. Planning CommissionC. Govt. of IndiaD. Ministry of FinanceAns: D




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