WBCS MAIN 2017 P-5 Economics MCQ
WBCS MAIN 2017 P-5 Economics One Liner Questions
🌾 AGRICULTURE & RURAL DEVELOPMENT
1. National Agricultural Insurance Scheme was implemented in which month and year? Ans: Oct. 1999
2. What is the mainstay of Indian economy? Ans: Agriculture
3. Contribution of agriculture to Gross National Products is approximately? Ans: 17.5%
4. The largest percentage of bonded labour in India belongs to which group? Ans: scheduled castes
5. Land Development banks in India are owned by which entities? Ans: Co-operative Societies
6. What kind of unemployment is found in the agricultural sector of India? Ans: Disguised
7. How much does the primary sector contribute to India’s GDP? Ans: 14%
8. National Agricultural Insurance scheme replacing comprehensive Crop Insurance Scheme was introduced in which year? Ans: 1999
9. Sources of agricultural credit for India are? Ans: All of the above (Co-operative credit, Commercial bank credit, Government loans)
10. For India, the government has taken which measures for improving the conditions of agricultural workers? Ans: All of the above (Minimum wages, Resettlement of land, Abolition of bonded labour)
11. The thrust of land reforms in India has been in respect of which three aspects? Ans: land tenurial system, redistribution of land and consolidation of scattered holding
12. Indian farmers insurance against crop failure is the process of which method of risks coverage? Ans: mixed cropping
13. What was the main objective of Green Revolution in India? Ans: Modernisation of agriculture through science and technology
14. A landmark in the evolution of agricultural finance is the establishment of NABARD in which year? Ans: 1982
15. Since 1983, RBI’s responsibility with respect to regional rural banks was transferred to? Ans: NABARD
🏦 BANKING & RESERVE BANK OF INDIA
16. When did the Foreign Exchange Regulation Act (FERA) come into being? Ans: 1973
17. Through open market operation, the RBI purchases and sells which instruments? Ans: government securities
18. When the Reserve Bank of India increases the Cash Reserve Ratio (CRR)? Ans: When the Indian economy have high rate of inflation
19. What kind of convertibility of currency is permitted in India? Ans: Current account
20. Who imposes corporation tax in India? Ans: Central govt.
21. The rate at which RBI lends to the banking system is? Ans: Bank Rate
22. Which bank provides financial assistance for Export and Import? Ans: EXIM Bank
23. In India which of the following measures of money denotes the Broad Money? Ans: M3
24. Who has the authority to mint the coins in India? Ans: Ministry of Finance
25. Which of the following is the biggest contributor of foreign exchange reserve of India? Ans: Foreign currency assets
26. How much interest is paid by the RBI on the money deposited under the CRR measure? Ans: No interest is paid by the RBI
27. The Narsimhan Committee on the Financial System of India made its recommendations in which two phases? Ans: 1991 and 1998
28. The New Industrial Policy in India was announced in which dates? Ans: 24 July, 1991; 6 August 1991
29. Under the MRTP Act 1969, firms were classified as monopolies if they had? Ans: assets above a certain size
30. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in? Ans: 1987
31. Foreign Direct Investment ceilings in the telecom sector have been raised from 74% to? Ans: 100%
💰 FISCAL POLICY & PUBLIC FINANCE
32. Which of the following taxes is levied and collected by the union, but assigned to the states? Ans: Consignment tax
33. The income tax in India is which type of tax? Ans: direct and progressive
34. The largest revenue in India is obtained from which source? Ans: Excise Duties
35. Which of the following tax is imposed by the Central government but collected and kept by the State governments? Ans: Stamp duty
36. States earn maximum revenue through which source? Ans: Commercial Taxes
37. Revenue of the state governments are raised from the following sources, except? Ans: expenditure tax
38. Tax-structure in India has become regressive in character as? Ans: share of direct taxes decreasing and indirect taxes increasing
39. Deficit financing is termed as? Ans: Inflationary method of financing
40. Government imposes taxes to? Ans: run the machinery of the state
41. An ad valorem duty is a tax on the basis of? Ans: the price of a commodity
42. In the State of India, the State Financial Corporations have given assistance mainly to develop? Ans: medium and small scale industries
43. States earn maximum revenue through? Ans: commercial taxes
📊 FIVE YEAR PLANS & INDIAN ECONOMY
44. In which of the Five Year Plan, the weaker sections of the society got priority? Ans: 5th
45. During which Five Year Plan was the total expenditure on agriculture the highest? Ans: 3rd
46. What is the duration of the revised 6th National Development Plan? Ans: 1978-83
47. Success of 4th plan was obstructed by? Ans: All of the above (problem of Bengal refugees, war with Pakistan, poor monsoon)
48. During which Five year plan did prices show a decline? Ans: 1st
49. India opted for ‘mixed economy’ in? Ans: Industrial Policy of 1948
50. A rolling plan is a plan for how many years? Ans: one year
51. Which five year plan focused on ‘growth with social justice and equity’? Ans: Ninth Five Year Plan
52. First five year plan was based on which model? Ans: Harrod – Domar model
53. From which country India adopted the Five Year Plans? Ans: USSR
54. Mixed economy means an economy where? Ans: there is co-existence of public sector along with private sector
55. Which Five-Year-Plan was terminated before the completion of its period? Ans: Fifth
56. In India, the concepts of ‘minimum needs’ and ‘anti-poverty programmes’ were the innovations of which plan? Ans: Fifth Five Year Plan
57. For internal financing of Five Year Plans, the government depends on? Ans: taxation, public borrowing and deficit financing
58. In the context of India’s Five Year Plans, a shift in the pattern of industrialisation, with lower emphasis on heavy industries and more on infrastructure begins in which plan? Ans: Eighth Plan
59. Which of the following indicate economic growth through Five Year Plans? Ans: Rise in national income and per capita income
60. In which one of the following Five Year Plans the actual growth performance in India in respect of GDP was less than the target set? Ans: Ninth Five Year Plan
61. India’s economic planning cannot be said to be? Ans: imperative
📈 NATIONAL INCOME
62. Consider the statements about India’s GDP and GNP. Which is correct? Ans: 1 only (India’s GDP is more than its GNP)
63. One of the problems in calculating the national income in India correctly is? Ans: non-monetised consumption
64. The data of estimation of India’s National Income is issued by? Ans: Central Statistical Organisation
65. Which is not added in the calculation of national income of India? Ans: Both (B) and (C) (The sold value of the old fridge, Services rendered by the housewives)
66. What base year is used to calculate per capita income in India? Ans: 2011-12
67. The most important source of capital formation in India has been? Ans: Household savings
68. The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of? Ans: 30% to 35%
👥 POVERTY & SOCIAL SECTOR
69. Who among the following did not estimate the incidence of poverty in India? Ans: Raj Krishna
70. In India, which of the following affects poverty line the most? Ans: Level of prices
71. Which of the following are the main causes of slow rate of growth of per capita income in India? Ans: 1, 2 (High capital-output ratio, High rate of growth of population)
72. The objective of the National Rural Employment Guarantee Act, 2005 is? Ans: to enhance the livelihood & security of rural people by generating wage employment through works that develop infrastructure base of that area
73. How much population is living below poverty line in India? Ans: Approx. 24%
74. India is regarded as a country with ‘Demographic Dividend’. This is due to? Ans: its high population in the age group of 15-64 years
75. Redistribution policies geared to reduce economic inequalities include? Ans: All of the above (progressive tax policies, land reforms, rural development policies)
🌏 FOREIGN TRADE & EXCHANGE
76. Which one of the following groups of items is included in India’s foreign-exchange reserves? Ans: Foreign-currency assets, gold holdings of the RBI and SDRs
77. When did India become a member of the IMF? Ans: 1947
78. India earns maximum foreign exchange by the export of? Ans: Textiles
79. In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India? Ans: Services sector
80. ‘Globalisation of Indian economy’ means? Ans: having minimum possible restriction on economic relations with other countries
🏭 INDUSTRY & INFRASTRUCTURE
81. Abid Husain Committee is related to? Ans: reform in small industries
82. The mineral in which India depends largely on imports is? Ans: mercury
83. In India, the State Financial Corporation have given assistance mainly to develop? Ans: Medium & small-scale industries
84. In which sector, the Public Sector is most dominant in India? Ans: Commercial banking
85. Which of the following sector is not covered under the Bharat Nirman Programme? Ans: Health & Nutrition
86. The Co-operative Credit Societies have a? Ans: three-tier structure
📉 INFLATION
87. In India, inflation is measured by? Ans: wholesale price index number
💼 TAXATION
88. Which Indian state gives highest income tax collection to the Government of India? Ans: Maharashtra
📊 HUMAN DEVELOPMENT INDEX
89. The Human Development Index (HDI) is a composite of which three indicators? Ans: longevity, educational attainment and standard of living
📋 SURVEYS & ORGANIZATIONS
90. National Sample Survey Organisation (NSSO) was established in? Ans: 1950
🏙️ STATE ECONOMIES
91. Which state has the highest per capita income in India? Ans: Delhi
💹 ECONOMIC INDICATORS
92. Which one of the following is/are a/an indicator of the financial health of a country? Ans: All (i), (ii) & (iii) (GDP, PPP, FDI in a year)
93. Which one of the following is a driving force influencing the industrial growth of an economy? Ans: All of the above (Economic factors, Investment, Innovation/Market base)
📅 VISION DOCUMENTS
94. Which of the following statement is not correct about INDIA VISION 2020? Ans: Environment situation will remain as unbalanced as today
💼 WAGE POLICY
95. India’s wage policy is based on? Ans: Productivity
🔍 MISCELLANEOUS
96. India’s wage policy is based on? Ans: Productivity
WBCS MAIN 2017 P-5 Economics MCQ
1. National Agricultural Insurance Scheme was implemented on
(A) Oct.1997
(B) Oct.1998
(C) Oct.1999
(D) Oct.2000
Correct Answer: (C) Oct.1999
2. What is the mainstay of Indian economy?
(A) Manufacturing
(B) Business
(C) Public sector
(D) Agriculture
Correct Answer: (D) Agriculture
3. Contribution of agriculture to Gross National Products is approximately
(A) 14%
(B) 15%
(C) 16.5%
(D) 17.5%
Correct Answer: (D) 17.5%
4. Which one of the following groups of items is included in India’s foreign-exchange reserves?
(A) Foreign-currency assets, Special Drawing Rights and loans from foreign countries.
(B) Foreign-currency assets, gold holdings of the RBI and SDRs.
(C) Foreign-currency assets, loans from the World Bank and SDRs.
(D) Foreign-currency assets, govt. holdings of the RBI and loans from the World Bank.
Correct Answer: (B) Foreign-currency assets, gold holdings of the RBI and SDRs
5. Consider the following statements:
- India’s GDP is more than its GNP.
- Net Factor Income from Abroad (NFIA) is positive for India.
Which of the statements given above is/are correct?
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 or 2
Correct Answer: (A) 1 only
6. The largest percentage of bonded labour in India belongs to
(A) scheduled castes
(B) scheduled tribes
(C) other backward classes
(D) None of the above
Correct Answer: (A) scheduled castes
7. When did the Foreign Exchange Regulation Act (FERA) come into being?
(A) 1973
(B) 1975
(C) 1980
(D) 1981
Correct Answer: (A) 1973
8. When did India become a member of the IMF?
(A) 1947
(B) 1956
(C) 1960
(D) 1951
Correct Answer: (A) 1947
9. Land Development banks in India are owned by the
(A) RBI
(B) State Governments
(C) Commercial Banks
(D) Co-operative Societies
Correct Answer: (D) Co-operative Societies
10. Which of the following taxes is levied and collected by the union, but assigned to the states?
(A) Sales tax
(B) Octroi
(C) Excise
(D) Consignment tax
Correct Answer: (D) Consignment tax
11. Through open market operation, the RBI purchase and sell
(A) foreign exchange
(B) gold
(C) government securities
(D) All of the above
Correct Answer: (C) government securities
12. In India, inflation is measured by
(A) wholesale price index number.
(B) consumer price index number for urban non-manual workers.
(C) net national product at market prices.
(D) gross national product at market prices.
Correct Answer: (A) wholesale price index number
13. When, for the first time, did the Prime Minister of India announce the 20-point Economic Programme?
(A) 1973
(B) 1974
(C) 1975
(D) 1976
Correct Answer: (C) 1975
14. The income tax in India is
(A) indirect and progressive
(B) direct and proportional
(C) direct and progressive
(D) indirect and proportional
Correct Answer: (C) direct and progressive
15. The largest revenue in India is obtained from
(A) Sales Tax
(B) Direct Taxes
(C) Excise Duties
(D) None of the above
Correct Answer: (C) Excise Duties
16. One of the problems in calculating the national income in India correctly is
(A) under-employment
(B) inflation
(C) non-monetised consumption
(D) low savings
Correct Answer: (C) non-monetised consumption
17. India’s wage policy is based on
(A) Cost of living
(B) Standard of living
(C) Productivity
(D) None of the above
Correct Answer: (C) Productivity
18. The most important source of capital formation in India has seen
(A) Household savings
(B) Public sector savings
(C) Government revenue surpluses
(D) Corporate savings
Correct Answer: (A) Household savings
19. When the Reserve Bank of India increases the Cash Reserve Ratio (CRR)?
(A) When the Indian economy have high rate of inflation.
(B) When the Indian economy have low rate of inflation.
(C) The demand of goods and services is very low.
(D) None of the above
Correct Answer: (A) When the Indian economy have high rate of inflation
20. What kind of convertibility of currency is permitted in India?
(A) Capital account
(B) Current account
(C) Both (A) and (B)
(D) Partial in both (A) and (B)
Correct Answer: (B) Current account
21. Who imposes corporation tax in India?
(A) State govt.
(B) Central govt.
(C) Both State and Central govt.
(D) Local govt.
Correct Answer: (B) Central govt
22. What kind of unemployment is found in the agricultural sector of India?
(A) Situational
(B) Voluntary
(C) Frictional
(D) Disguised
Correct Answer: (D) Disguised
23. Which of the following tax is imposed by the Central government but collected and kept by the State governments?
(A) Excise duty
(B) Custom duty
(C) Stamp duty
(D) Wealth tax
Correct Answer: (C) Stamp duty
24. The data of estimation of India’s National Income is issued by
(A) Planning Commison
(B) National Data Centre
(C) Central Statistical Organisation
(D) None of the above
Correct Answer: (C) Central Statistical Organisation
25. Which of the following sector is not covered under the Bharat Nirman Programme?
(A) Health & Nutrition
(B) Irrigation
(C) Road
(D) Housing
Correct Answer: (A) Health & Nutrition
26. Which Indian state gives highest income tax collection to the Government of India?
(A) Uttar Pradesh
(B) Kerala
(C) Maharashtra
(D) Goa
Correct Answer: (C) Maharashtra
27. Which is not added in the calculation of national income of India?
(A) The value of goods and services.
(B) The sold value of the old fridge.
(C) Services rendered by the housewives.
(D) Both (B) and (C)
Correct Answer: (D) Both (B) and (C)
28. How much does the primary sector contribute to India’s GDP?
(A) 26%
(B) 20%
(C) 53%
(D) 14%
Correct Answer: (D) 14%
29. What base year is used to calculate per capita income in India?
(A) 2004-05
(B) 2011-12
(C) 2001-02
(D) 2014-15
Correct Answer: (B) 2011-12
30. Who among the following did not estimate the incidence of poverty in India?
(A) B. S. Minhas
(B) P. K. Bardhan
(C) V. M. Dandekar and N. Rath
(D) Raj Krishna
Correct Answer: (D) Raj Krishna
31. In which of the Five Year Plan, the weaker sections of the society got priority?
(A) 5th
(B) 4th
(C) 3rd
(D) None of the above
Correct Answer: (A) 5th
32. During which Five Year Plan was the total expenditure on agriculture the highest?
(A) 1st
(B) 2nd
(C) 3rd
(D) 4th
Correct Answer: (C) 3rd
33. What is the duration of the revised 6th National Development Plan?
(A) 1974-79
(B) 1978-83
(C) 1980-85
(D) 2013-16
Correct Answer: (B) 1978-83
34. Success of 4th plan was obstructed by
(A) problem of Bengal refugees.
(B) war with Pakistan.
(C) poor monsoon
(D) All of the above
Correct Answer: (D) All of the above
35. During which Five year plan did prices show a decline?
(A) 1st
(B) 3rd
(C) 5th
(D) 6th
Correct Answer: (A) 1st
36. India opted for ‘mixed economy’ in
(A) framing of the constitution.
(B) Industrial Policy of 1948.
(C) Second Five Year Plan.
(D) None of the above
Correct Answer: (B) Industrial Policy of 1948
37. A rolling plan is a plan for
(A) one year
(B) two years
(C) three years
(D) five years
Correct Answer: (A) one year
38. The government imposes taxes to
(A) check the accumulation of wealth among the rich.
(B) run the machinery of state.
(C) uplift weaker sections.
(D) None of the above
Correct Answer: (B) run the machinery of state
39. In India, which of the following affects poverty line the most?
(A) Level of prices
(B) Production quantum
(C) Per capita income
(D) Quantum of gold reserve
Correct Answer: (A) Level of prices
40. Which of the following are the main causes of slow rate of growth of per capita income in India?
- High capital – output ratio
- High rate of growth of population
- High rate of capital formation
- High level of fiscal deficits
(A) 1, 2
(B) 2, 3, 4
(C) 1, 4
(D) All of the above
Correct Answer: (A) 1, 2
41. National Sample Survey Organisation (NSSO) was established in
(A) 1947
(B) 1948
(C) 1949
(D) 1950
Correct Answer: (D) 1950
42. Abid Husain Committee is related to
(A) reform in taxes.
(B) reform in government projects.
(C) reform in small industries.
(D) reform in middle level industries.
Correct Answer: (C) reform in small industries
43. Which state has the highest per capita income in India?
(A) Delhi
(B) Punjab
(C) Bihar
(D) West Bengal
Correct Answer: (A) Delhi
44. The mineral in which India depends largely on imports is
(A) iron ore
(B) mercury
(C) mica
(D) bauxite
Correct Answer: (B) mercury
45. India earns maximum foreign exchange by the export of
(A) Iron
(B) Tea
(C) Handloom
(D) Textiles
Correct Answer: (D) Textiles
46. Which one among the following formulate the fiscal policy in India?
(A) Planning Commission
(B) Finance Commission
(C) The Reserve Bank of India
(D) Ministry of Finance
Correct Answer: (D) Ministry of Finance
47. States earn maximum revenue through
(A) Tax Fines
(B) Customs
(C) License sales
(D) Commercial Taxes
Correct Answer: (D) Commercial Taxes
48. In India, the State Financial Corporation have given assistance mainly to develop
(A) Irrigation projects
(B) Small-scale industries
(C) Medium-scale industries
(D) Medium & small-scale industries
Correct Answer: (D) Medium & small-scale industries
49. Which five year plan focused on ‘growth with social justice and equity’?
(A) Ninth Five Year Plan
(B) Eighth Five Year Plan
(C) Seventh Five Year Plan
(D) Sixth Five Year Plan
Correct Answer: (A) Ninth Five Year Plan
50. First five year plan was based on
(A) Harrod – Domar model
(B) P. C. Mahalanobis model
(C) Both of the above
(D) None of the above
Correct Answer: (A) Harrod – Domar model
51. The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of
(A) 15% to 20%
(B) 20% to 25%
(C) 25% to 30%
(D) 30% to 35%
Correct Answer: (D) 30% to 35%
52. National Agricultural Insurance scheme replacing comprehensive Crop Insurance Scheme was introduced in the year
(A) 1997
(B) 1998
(C) 1999
(D) 2000
Correct Answer: (C) 1999
53. Revenue of the state governments are raised from the following sources, except
(A) entertainment tax
(B) expenditure tax
(C) agricultural income tax
(D) land revenue
Correct Answer: (B) expenditure tax
54. In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?
(A) Chemicals other than fertilisers
(B) Services sector
(C) Food processing
(D) Telecommunication
Correct Answer: (B) Services sector
55. Tax-structure in India has become regressive in character as
(A) share of direct taxes and indirect taxes are same.
(B) share of direct taxes increasing and indirect taxes decreasing.
(C) share of direct taxes decreasing and indirect taxes increasing.
(D) share of direct taxes and indirect taxes both falling.
Correct Answer: (C) share of direct taxes decreasing and indirect taxes increasing
56. Deficit financing is termed as
(A) Inflationary method of financing
(B) deflationary method of financing
(C) hyper-inflationary method of financing
(D) financing development expenditure
Correct Answer: (A) Inflationary method of financing
57. The Narsimhan Committee on the Financial System of India made its recommendations in two phases
(A) 1991 and 1999
(B) 1991 and 1998
(C) 1990 and 1999
(D) 1990 and 1998
Correct Answer: (B) 1991 and 1998
58. The rate at which RBI lends to the banking system is
(A) Bank Rate
(B) Statutory Liquidity Rate
(C) Cash Reserve Ratio
(D) None of the above
Correct Answer: (A) Bank Rate
59. The New Industrial Policy in India was announced in 2 phases
(A) 24 July, 1992; 6 August 1992
(B) 6 July, 1991; 24 August 1991
(C) 24 July, 1991; 6 August 1991
(D) 6 July, 1992; 24 August 1991
Correct Answer: (C) 24 July, 1991; 6 August 1991
60. Under the Monopolies and Restrictive Trade Practices Act (MRTP Act) 1969, those firms were classified as monopolies or MRTP firms which have
(A) assets above a certain size
(B) high expenditure in research & development
(C) transfer-pricing
(D) marketing services
Correct Answer: (A) assets above a certain size
61. The objective of the National Rural Employment Guarantee Act, 2005 is
(A) to enhance the livelihood & security of rural people by generating wage employment through works that develop infrastructure base of that area.
(B) to provide financial assistance and technical advice for generation of employment in rural areas.
(C) to impart new technical skill and upgrade the traditional skill of rural people.
(D) to generate employment in health, primary education, drinking water, housing and rural roads in rural areas.
Correct Answer: (A) to enhance the livelihood & security of rural people by generating wage employment through works that develop infrastructure base of that area
62. A landmark in the evolution of agricultural finance is the establishment of the National Bank for Agriculture and Rural Development which was set up in the year
(A) 1980
(B) 1986
(C) 1982
(D) 1985
Correct Answer: (C) 1982
63. Sources of agricultural credit for India are
(A) Co-operative credit
(B) Commercial bank credit
(C) Government loans
(D) All of the above
Correct Answer: (D) All of the above
64. For India, the government has taken the following measures for improving the conditions of agricultural workers
(A) Minimum wages
(B) Resettlement of land
(C) Abolition of bonded labour
(D) All of the above
Correct Answer: (D) All of the above
65. The thrust of land reforms in India has been in respect of the three aspects of the agrarian system which are
(A) land tenurial system, strengthening legal system and high investment
(B) land tenurial system, redistribution of land and consolidation of scattered holding
(C) ensuring people’s participation, co-operative farming and high investment
(D) None of the above
Correct Answer: (B) land tenurial system, redistribution of land and consolidation of scattered holding
66. The Human Development Index (HDI) is a composite of three indicators such as
(A) longevity, educational attainment and standard of living
(B) longevity, poverty and change in output
(C) growth, poverty and educational attainment
(D) poverty, standard of living and educational attainment
Correct Answer: (A) longevity, educational attainment and standard of living
67. Indian farmers insurance against crop failure is the process of one of the major methods of risks coverage by Indian farmers in
(A) mixed cropping
(B) dry farming
(C) relay cropping
(D) share cropping
Correct Answer: (A) mixed cropping
68. What was the main objective of Green Revolution in India?
(A) To increase the extent of cash crop cultivation.
(B) To increase the area of Green forest under social forestry scheme.
(C) Modernisation of agriculture through science and technology.
(D) To introduce the Japanese method of paddy cultivation.
Correct Answer: (C) Modernisation of agriculture through science and technology
69. From which country India adopted the Five Year Plans?
(A) USSR
(B) USA
(C) Australia
(D) Germany
Correct Answer: (A) USSR
70. An ad valorem duty is a tax on the basis of
(A) the unit of the commodity.
(B) the advertisement expenditure.
(C) the price of a commodity.
(D) None of the above
Correct Answer: (C) the price of a commodity
71. Government imposes taxes to
(A) run the machinery of the state.
(B) uplift weaker sections.
(C) check the accumulation of wealth among the rich.
(D) None of the above
Correct Answer: (A) run the machinery of the state
72. Mixed economy means an economy where
(A) there is co-existence of public sector along with private sector.
(B) both agriculture and industry are equally promoted by the state.
(C) economy is controlled by military as well as civilian live
(D) there is importance of small scale industries along with heavy industries.
Correct Answer: (A) there is co-existence of public sector along with private sector
73. Which bank provides financial assistance for Export and Import?
(A) RBI
(B) NABARD
(C) EXIM Bank
(D) SIDBI
Correct Answer: (C) EXIM Bank
74. Which Five-Year-Plan was terminated before the completion of its period?
(A) Fifth
(B) Sixth
(C) Seventh
(D) Eighth
Correct Answer: (A) Fifth
75. In India which of the following measures of money denotes the Broad Money?
(A) M1
(B) M2
(C) M3
(D) M4
Correct Answer: (C) M3
76. Which of the following statement is not correct about INDIA VISION 2020?
(A) It expects elimination of poverty, unemployment and illiteracy by 2020.
(B) It expects that India’s per capita income will get down by 2020.
(C) Environment situation will remain as unbalanced as today.
(D) It was designed by Dr. Sam Pitroda.
Correct Answer: (C) Environment situation will remain as unbalanced as today
77. Who has the authority to mint the coins in India?
(A) Reserve Bank of India
(B) Ministry of Finance
(C) Ministry of Corporate Affairs
(D) Ministry of Affairs
Correct Answer: (B) Ministry of Finance
78. Which of the following is the biggest contributor of foreign exchange reserve of India?
(A) Foreign currency assets
(B) Gold
(C) Reserve tranche with IMF
(D) Special drawing rights (SDR)
Correct Answer: (A) Foreign currency assets
79. Which one of the following is/are a/an indicator of the financial health of a country?
(i) GDP
(ii) PPP
(iii) FDI in a year
(A) Only (i)
(B) Only (ii)
(C) Only (iii)
(D) All (i), (ii) & (iii)
Correct Answer: (D) All (i), (ii) & (iii)
80. Which one of the following is a driving force influencing the industrial growth of an economy?
(A) Economic factors only
(B) Investment only
(C) Innovation/Market base only
(D) All of the above
Correct Answer: (D) All of the above
81. In India, the concepts of ‘minimum needs’ and ‘anti-poverty programmes’ were the innovations of
(A) Fourth Five Year Plan
(B) Fifth Five Year Plan
(C) Sixth Five Year Plan
(D) Eighth Five Year Plan
Correct Answer: (B) Fifth Five Year Plan
82. In which sector, the Public Sector is most dominant in India?
(A) Transport
(B) Commercial banking
(C) Steel production
(D) Organised term-lending financial institutions
Correct Answer: (B) Commercial banking
83. For internal financing of Five Year Plans, the government depends on
(A) taxation only.
(B) public borrowing and deficit financing.
(C) taxation and public borrowing.
(D) taxation, public borrowing and deficit financing.
Correct Answer: (D) taxation, public borrowing and deficit financing
84. In the context of India’s Five Year Plans, a shift in the pattern of industrialisation, with lower emphasis on heavy industries and more on infrastructure begins in
(A) Tenth Plan
(B) Eighth Plan
(C) Sixth Plan
(D) Fourth Plan
Correct Answer: (B) Eighth Plan
85. Which of the following indicate economic growth through Five Year Plans?
(A) Rise in national income and per capita income.
(B) Development of railways and roadways.
(C) Development of education and health services.
(D) Development of industrial towns and industrial estates.
Correct Answer: (A) Rise in national income and per capita income
86. ‘Globalisation of Indian economy’ means:
(A) stepping up external borrowings.
(B) establishing Indian shopping malls in abroad.
(C) giving up programmes of import substitution.
(D) having minimum possible restriction on economic relations with other countries.
Correct Answer: (D) having minimum possible restriction on economic relations with other countries
87. The basic feature of the Rolling Plans was that
(A) revision of the achievement of previous year.
(B) no physical target were visualised.
(C) no financial target except in the term of annual plans was envisaged.
(D) annual fluctuations in prices and major economic developments could be considered while fixing target.
Correct Answer: (D) annual fluctuations in prices and major economic developments could be considered while fixing target
88. The contribution of agriculture to India’s economy is
(A) constant
(B) increasing
(C) decreasing
(D) None of the above
Correct Answer: (C) decreasing
89. In which one of the following Five Year Plans the actual growth performance in India in respect of GDP (at factor cost) was less than the target set?
(A) Sixth Five Year Plan
(B) Seventh Five Year Plan
(C) Eighth Five Year Plan
(D) Ninth Five Year Plan
Correct Answer: (D) Ninth Five Year Plan
90. India’s economic planning cannot be said to be
(A) indicative
(B) imperative
(C) limited
(D) democratic
Correct Answer: (B) imperative
91. How much population is living below poverty line in India?
(A) Approx. 24%
(B) Approx. 25%
(C) Approx. 26%
(D) Approx. 27%
Correct Answer: (A) Approx. 24%
92. How much interest is paid by the RBI on the money deposited under the CRR measure?
(A) Equal to the rate of CRR
(B) More than the CRR
(C) Less than the CRR
(D) No interest is paid by the RBI
Correct Answer: (D) No interest is paid by the RBI
93. India is regarded as a country with ‘Demographic Dividend’. This is due to
(A) its high population in the age group below 15 years.
(B) its high population in the age group of 15-64 years.
(C) its high population in the age group above 65 years.
(D) its high total population.
Correct Answer: (B) its high population in the age group of 15-64 years
94. In the State of India, the State Financial Corporations have given assistance mainly to develop
(A) agricultural farms
(B) cottage industry
(C) large-scale industries
(D) medium and small scale industries
Correct Answer: (D) medium and small scale industries
95. States earn maximum revenue through
(A) land revenue
(B) custom revenue
(C) commercial taxes
(D) excise duties on intoxicants
Correct Answer: (C) commercial taxes
96. The Co-operative Credit Societies have a
(A) two-tier structure
(B) three-tier structure
(C) four-tier structure
(D) five-tier structure
Correct Answer: (B) three-tier structure
97. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in
(A) 1984
(B) 1986
(C) 1987
(D) 1989
Correct Answer: (C) 1987
98. Foreign Direct Investment ceilings in the telecom sector have been raised from 74% to
(A) 80%
(B) 83%
(C) 90%
(D) 100%
Correct Answer: (D) 100%
99. Since 1983, RBI’s responsibility with respect to regional rural banks was transferred to
(A) ARDC
(B) SBI
(C) NABARD
(D) PACs
Correct Answer: (C) NABARD
100. Redistribution policies geared to reduce economic inequalities include
(A) progressive tax policies
(B) land reforms
(C) rural development policies
(D) All of the above
Correct Answer: (D) All of the above