WBCS MAIN 2018 P-5 Economics MCQ
WBCS MAIN 2018 P-5 Economics One Liner Questions
🏦 BANKING & RESERVE BANK OF INDIA
1. Collateralized Borrowing and Lending Obligation (CBLO) is which type of instrument? Ans: Money Market Instrument
2. The concept of ‘Universal Banking’ was implemented in India on the recommendations of which committee? Ans: H.R. Khan Committee
3. How many banks were nationalised in 1969? Ans: 14
4. SIDBI stands for? Ans: Small Industries Development Bank of India
5. The one rupee note bears the signature of whom? Ans: Finance Secretary
6. Bank rate is the rate at which RBI lends to which institutions? Ans: Commercial banks
7. Interest payable on savings bank accounts in India is regulated by whom? Ans: RBI
8. Which regulatory authority has revamped panel on alternative investment? Ans: SEBI
9. Who works as RBI’s agent at places where it has no office of its own? Ans: State Bank of India
10. A Public Debt Office works as investment banker to whom? Ans: Government
11. Who mints the coins in India? Ans: Ministry of Finance
12. RBI revision of Repo/Reverse Repo rate by 10 basis points implies which fraction? Ans: 0.10%
13. Which of the following words is not used in Monetary Policy? Ans: Blue Chip
14. Which of the following is not a function of RBI? Ans: To assume responsibility of statistical analysis of data related to macroeconomy of India
15. If cash reserve ratio is lowered by RBI, its impact on credit creation will be? Ans: increase it
16. Which of the following is true about the restrictions on RBI? Ans: All of the above
17. Which of the following is called a banker’s cheque? Ans: Demand draft
18. Which of the following is not the work of RBI? Ans: Allocating funds directly to the farmers for agricultural development
19. The liabilities of commercial bank include which items? Ans: time deposits, demand deposits, advances from central bank
20. Which of the following statements regarding Regional Rural Banks (RRB) in India is correct? Ans: All statements are correct
21. How many Regional Rural Banks are working in India as of January, 2018? Ans: 56
22. The RBI issues all currency notes except which notes? Ans: one rupee notes
23. Investment in which among the following is the Most Risk Free Asset of a Bank as per the RBI guidelines? Ans: Government Approved Securities
24. If the Reserve Bank of India wants to increase the cash reserves of commercial banks, which step would it take? Ans: Buy bonds in the open market
25. The minimum interest rate of a bank below which it is not viable to lend, is known as? Ans: Base Rate
26. Which of the following is used to denote broad money? Ans: M3
27. RBI has allowed which banks to become Small Finance Banks under certain criteria? Ans: Urban Cooperative Banks
28. Narshimham Committee recommendations are regarding which sector? Ans: Banking
29. The apex organisation of Industrial finance in India is? Ans: IDBI
💰 FISCAL POLICY & PUBLIC FINANCE
30. National Small Savings Fund is a part of which fund? Ans: Public Account of India
31. Union Budget is generally presented in which month? Ans: February
32. What does ‘Revenue Neutral Tax Rule’ means in reference to GST? Ans: The rate at which tax revenues for States and Centre will remain same as before GST
33. Fiscal Deficit in Union budget means? Ans: the sum of budgetary deficit and net increase in internal and external borrowings
34. All taxes come under which type of receipts? Ans: Revenue receipts
35. Which constitutional amendment is done to pass the GST bill? Ans: 101st
36. Which of the following tax is abolished by the Goods and Services Tax? Ans: VAT
37. Which among the following correctly denotes the Primary Deficit? Ans: Fiscal Deficit – Interest Payment
38. Which among the following formulates fiscal policy? Ans: Finance Ministry
39. Consider the statements about GST: Which are correct? Ans: None of the above
40. Fiscal Responsibility and Budget Management Act concerns? Ans: Both fiscal and revenue deficit
41. Bring out the only incorrect statement about RBI operations? Ans: Reverse Repo operation by RBI aims at injecting/increasing liquidity
42. Development expenditure of the Central Government does not include? Ans: defence expenditure
43. GAAR is a set of rules aimed at? Ans: curbing aggressive tax planning
📊 FIVE YEAR PLANS & INDIAN ECONOMY
44. NABARD was established in which Five Year Plan? Ans: Sixth Five Year Plan
45. In context of India’s five year plans, a shift in pattern of industrialization with lower emphasis on heavy industries and more on infrastructure begins in which plan? Ans: Eighth Plan
46. Which one of the following is NOT correct about Five Year Plans? Ans: Fourth Five Year Plan : 1966-1971
47. Which among the following Industrial Policy Resolution was based upon the Mahalanobis Model of growth? Ans: Industrial Policy Resolution-1956
48. In context of India’s five year plans, in which plan was the growth rate target exceeded? Ans: First plan
49. The Government of India has established NITI Ayog to replace which body? Ans: Planning Commission
🌾 AGRICULTURE & RURAL DEVELOPMENT
50. The increase in oil seeds production was due to which revolution? Ans: Yellow revolution
51. Who is the originator of Green Revolution in India? Ans: MS Swaminathan
52. Black Revolution is related to? Ans: Crude oil production
53. Agriculture income tax is assigned to the State Government by? Ans: Constitution of India
54. Which state is the biggest tea producer in the country? Ans: Assam
55. National Rural Development Institute is situated at? Ans: Hyderabad
56. The main objective of TRYSEM was? Ans: to train rural youth for self-employment
57. Which of the following statement is not correct about INDIRA AWAS YOJNA? Ans: Its financial burden is shared by the states in the ratio of 50:50
58. Main argument in favour of small scale and cottage industries in India is? Ans: they generate large volume of employment
59. The Mahatma Gandhi National Rural Employment Guarantee Act mandates at least what fraction of the beneficiaries to be women? Ans: 30%
🌏 FOREIGN TRADE & EXCHANGE
60. Which among the following state has highest number of Export Oriented Units in India? Ans: Karnataka
61. The Tobin tax was a tax on which transactions? Ans: Currency Transactions
62. India’s first operational special economic zone (SEZ) is located at? Ans: Surat
63. According to RBI’s latest report, Import Cover of the country in December, 2017 is of how many months? Ans: 10.8 months
64. What is FEMA? Ans: Foreign Exchange Management Act
65. The main function of EXIM bank is? Ans: to promote exports and curtail imports
66. In India, the Foreign Exchange Reserves are kept in the custody of? Ans: Reserve Bank of India
67. Which of the following is likely to cause current account deficit in India? Ans: I, II & III (Reduced excise duties on SUVs, Reduced duties on Gold, Ban of export of Onions)
68. A Non-Resident Indian wants to get approval under Government Route for FDI in ‘Single Brand’ product retailing in India. Which agency to approach? Ans: Department of Industrial Policy and Promotion (Ministry of Commerce)
📈 NATIONAL INCOME
69. GDP at factor cost is? Ans: GDP minus indirect taxes plus subsidies
70. In India GDP is higher than GNP because? Ans: net factor income is negative
71. National Income of India is compiled by? Ans: Central Statistical Organisation
72. National income calculated at current price in India has shown a tendency to rise at a faster rate than national income at constant prices because? Ans: General price level has been rising fast
👥 POVERTY & SOCIAL SECTOR
73. People below poverty line in India are classified as such based on whether? Ans: they are entitled to a minimum prescribed food basket
74. Which is a nodal ministry for Beti Bachao Beti Padhao(BBBP) scheme? Ans: Ministry of Women and Child Development
75. “Golden Handshake Scheme” is associated with? Ans: Voluntary retirement
🏛️ GOVERNMENT SCHEMES & INITIATIVES
76. The Government launched the UDYAMI helpline for which enterprises? Ans: Micro, small & medium size enterprises
77. JAM trinity refers to the Government of India initiative. The ‘J.A.M.’ stands for? Ans: Jan-Dhan, Aadhaar, Mobile
78. Consider the statements about National Mission for Sustainable Agriculture. Which are correct? Ans: Both of the above
79. Which of the following three general insurance companies will be merged into single insurance company as per Budget 2018-19? Ans: UTI, Oriental Insurance and National Insurance
80. Fresh evaluation of every item of expenditure from the very beginning of each financial year is called? Ans: Zero-based budgeting
81. If the government chooses to spend money freshly printed by the RBI against government securities, it is called? Ans: Deficit financing
📜 CONSTITUTION & LEGAL
82. Which among the following is popularly known as mercantile law of India? Ans: Contract Law
83. Read the statements about Insolvency and Bankruptcy Code. Which are correct? Ans: All statements are correct
📊 CENSUS & DEMOGRAPHY
84. As per 2011 Census, the Indian State with highest literacy rate is? Ans: Kerala
85. Women to men ratio in India as per 2011 Census is? Ans: 940:1000
86. India is said to be in the second stage of demographic transition because? Ans: birth rate is high but death rate is declining due to improving healthcare
🏭 INDUSTRY & INFRASTRUCTURE
87. The biggest public sector undertaking in India is? Ans: Railways
88. Which among the following was the first Government Company to be privatized in India? Ans: Modern Foods Industries Limited
💹 STOCK MARKET
89. The basic regulatory authority for mutual funds and stock exchange lies with? Ans: Securities and Exchange Board of India
90. The oldest stock market of India is? Ans: Bombay Stock Exchange
🏥 HEALTH
91. Select the correct answer about the Indian states in Health-Sector? Ans: Both (A) and (B) are correct
📚 BOOKS & AUTHORS
92. Who wrote a book describing the theory of economic drain of India during British rule? Ans: Dadabhai Naoroji
🏙️ CITIES & RANKINGS
93. As per Mercer’s 24th Annual Cost of Living Survey 2018, which is India’s most expensive city? Ans: Mumbai
🔍 MISCELLANEOUS
94. Public Distribution System (PDS) distributes which commodities? Ans: All of the above (Wheat, Rice, Sugar, Pulses, Kerosene)
95. Which of the following sector does not come under the service sector in India? Ans: Formation of electronic television
96. Which of the following is wrongly matched? Ans: Interest rate—fiscal policy
97. If the Reserve Bank of India wants to block/hinder the capital outflows and contain the currency depreciation, which action would it take? Ans: Increase Interest Rates
98. The Insurance Regulatory and Development Authority of India (IRDAI) has approved which agency to acquire a majority stake in IDBI bank? Ans: LIC
WBCS MAIN 2018 P-5 Economics MCQ
1. Which among the following state has highest number of Export Oriented Units in India?
(A) Tamil Nadu
(B) Maharashtra
(C) Karnataka
(D) Andhra Pradesh
Ans: (C) Karnataka
2. The Tobin tax, initially suggested, by James Tobin was a tax on which among the following transactions?
(A) Property Transactions
(B) Currency Transactions
(C) Industrial Transactions
(D) All of the above
Ans: (B) Currency Transactions
3. Collateralized Borrowing and Lending Obligation (CBLO) is a
(A) Money Market Instrument
(B) Monetary Policy Instrument
(C) Investment fund
(D) Capital Market Instrument
Ans: (A) Money Market Instrument
4. India’s first operational special economic zone (SEZ) is located at
(A) Ahamadabad
(B) Surat
(C) Jaipur
(D) Indore
Ans: (B) Surat
5. The Government launched the UDYAMI helpline for which among the following?
(A) Large capital industries
(B) Female entrepreneur
(C) Farmers introducing technology in farming
(D) Micro, small & medium size enterprises
Ans: (D) Micro, small & medium size enterprises
6. What are the General Anti- Avoidance Rules?
(A) GAAR is a set of rules aimed at curbing aggressive tax planning.
(B) GAAR is a set of rules aimed at curbing money laundering by Indians to foreign countries.
(C) GAAR is a set of rules aimed at regulating investments by Indians in foreign countries.
(D) GAAR is a set of rules aimed at regulating investments by Foreigners in India.
Ans: (A) GAAR is a set of rules aimed at curbing aggressive tax planning.
7. National Small Savings Fund is a part of which among the following?
(A) Consolidated Fund of India
(B) Public Account of India
(C) Contingency Fund of India
(D) Prime Minister’s Relief Fund
Ans: (B) Public Account of India
8. Public Distribution System (PDS) means distribution of essential commodities to a large number of people through a network of Fair Price Shops on a recurring basis. The Commodities distributed under PDS are
(1) Wheat
(2) Rice
(3) Sugar
(4) Pulses
(5) Kerosene
Select the correct option:
(A) 1,2 and 4
(B) 1,2,3 and 4
(C) 1,2,3 and 5
(D) All of the above
Ans: (D) All of the above
9. The concept of ‘Universal Banking’ was implemented in India on the recommendations of
(A) Abid Hussain Committee
(B) H.R. Khan Committee
(C) S. Padmanabhan Committee
(D) Y.H. Malegam Committee
Ans: (B) H.R. Khan Committee
10. Union Budget is generally presented in which of the following month?
(A) January
(B) February
(C) July
(D) December
Ans: (B) February
11. What does ‘Revenue Neutral Tax Rule’ means in reference to GST?
(A) The rate at which tax revenues for States and Centre will remain same as before GST.
(B) The tax rate will remain the same for Central and State.
(C) Both of the above
(D) None of the above
Ans: (A) The rate at which tax revenues for States and Centre will remain same as before GST.
12. Read the statements
(i) Insolvency and Bankruptcy Code, recognised home buyers as financial creditors to real estate developers.
(ii) Home buyers will get due representation in the committee of creditors.
(iii) The amended Insolvency and Bankruptcy Code specifies home buyers will be treated as secured creditors.
Which statements are correct in reference to Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018?
(A) Only (i) and (ii) are correct.
(B) Only (i) and (iii) are correct.
(C) Only (ii) and (iii) are correct.
(D) All statements are correct.
Ans: (D) All statements are correct.
13. According to RBI’s latest report, Import Cover of the country in December, 2017 is of how many months?
(A) 12 months
(B) 10.8 months
(C) 15 months
(D) 19 months
Ans: (B) 10.8 months
14. Which is a nodal ministry for Beti Bachao Beti Padhao(BBBP) scheme?
(A) Ministry of Home Affairs
(B) Ministry of Women and Child Development
(C) Ministry of Health and Family Welfare
(D) Niti Aayog
Ans: (B) Ministry of Women and Child Development
15. “Golden Handshake Scheme” is associated with
(A) Inviting foreign companies
(B) Private investment in public enterprises
(C) Establishing Joint Enterprises
(D) Voluntary retirement
Ans: (D) Voluntary retirement
16. The main objective of TRYSEM was
(A) to train rural youth for self-employment.
(B) to train urban youth for self-employment.
(C) Both of the above
(D) None of the above
Ans: (A) to train rural youth for self-employment.
17. Narshimham Committee recommendations are regarding which sector?
(A) Banking
(B) Industries
(C) Rural
(D) Service
Ans: (A) Banking
18. The apex organisation of Industrial finance in India is
(A) IDBI
(B) RBI
(C) ICICI
(D) IFCI
Ans: (A) IDBI
19. Agriculture income tax is assigned to the State Government by
(A) Finance Commission
(B) National Development Council
(C) Inter-state Council
(D) Constitution of India
Ans: (D) Constitution of India
20. As per 2011 Census, the Indian State with highest literacy rate is
(A) Goa
(B) Kerala
(C) Mizoram
(D) Tripura
Ans: (B) Kerala
21. Women to men ratio in India as per 2011 Census is
(A) 920:1000
(B) 930:1000
(C) 940:1000
(D) 980:1000
Ans: (C) 940:1000
22. The Government of India has established NITI Ayog to replace the
(A) Human Rights Commission
(B) Finance Commission
(C) Law Commission
(D) Planning Commission
Ans: (D) Planning Commission
23. NABARD was established in the
(A) Fourth Five Year Plan
(B) Fifth Five Year Plan
(C) Sixth Five Year Plan
(D) Eighth Five Year Plan
Ans: (C) Sixth Five Year Plan
24. GDP at factor cost is
(A) GDP minus indirect taxes plus subsidies
(B) GNP minus depreciation allowances
(C) NNP plus depreciation allowances
(D) GDP minus subsidies plus indirect taxes
Ans: (A) GDP minus indirect taxes plus subsidies
25. What is FEMA?
(A) First Exchange Management Act
(B) Foreign Exchequer Management Act
(C) Foreign Exchange Management Act
(D) Foreign Evaluation Management Act
Ans: (C) Foreign Exchange Management Act
26. The increase in oil seeds production was due to
(A) White revolution
(B) Yellow revolution
(C) Green revolution
(D) Brown revolution
Ans: (B) Yellow revolution
27. Select the correct answer about the Indian states in Health-Sector:
(A) Kerala is the best performer in term of the expectancy at birth (both male and female) in last decade.
(B) Madhya Pradesh the worst in terms of life expectancy at birth (both male and female) in last five years.
(C) The highest birth rate in India is found in Goa.
(D) Both the statement given in (A) and (B) are correct.
Ans: (D) Both the statement given in (A) and (B) are correct.
28. Which state is the biggest tea producer in the country?
(A) Andhra Pradesh
(B) Sikkim
(C) Assam
(D) West Bengal
Ans: (C) Assam
29. Who wrote a book describing the theory of economic drain of India during British rule?
(A) Late Lajpat Rai
(B) Mahatma Gandhi
(C) Jawaharlal Nehru
(D) Dadabhai Naoroji
Ans: (D) Dadabhai Naoroji
30. How many banks were nationalised in 1969?
(A) 12
(B) 13
(C) 14
(D) 15
Ans: (C) 14
31. Black Revolution is related to
(A) Fish production
(B) Coal production
(C) Crude oil production
(D) Mustard production
Ans: (C) Crude oil production
32. SIDBI stands for
(A) Small Industrial Development Banker Institute
(B) Small Industries Design Bank of India
(C) Small Industries Development Bank of India
(D) Small Innovation Development Banker’s Institute
Ans: (C) Small Industries Development Bank of India
33. The one rupee note bears the signature of
(A) RBI Governor
(B) President of India
(C) Finance Minister
(D) Finance Secretary
Ans: (D) Finance Secretary
34. JAM trinity refers to the Government of India initiative to plug the leakage and deliver direct benefits to India’s poor in form of Direct Subsidy Transfer. The ‘J.A.M.’ stands for
(A) Jan-Dhan, Aadhaar, Mobility
(B) Jan-Dhan, Aadhaar, Mobile
(C) Jan-Dhan, Ayush, Mobility
(D) None of the above
Ans: (B) Jan-Dhan, Aadhaar, Mobile
35. Consider the following statements and identify the right ones:
(i) National Mission for Sustainable Agriculture has been conceptualized to recognize the challenge of climate change to Indian agriculture.
(ii) It is one of the eight missions under the NAPCC.
(A) (i) only
(B) (ii) only
(C) Both of the above
(D) None of the above
Ans: (C) Both of the above
36. India is said to be in the second stage of demographic transition because
(A) both birth and death rates are high.
(B) birth rate is high but death rate is declining due to improving healthcare.
(C) death rates and birth rates are falling.
(D) None of the above
Ans: (B) birth rate is high but death rate is declining due to improving healthcare.
37. Who is the originator of Green Revolution in India?
(A) Normal E. Borlaug
(B) MS Swaminathan
(C) Garry Backer
(D) None of the above
Ans: (B) MS Swaminathan
38. The biggest public sector undertaking in India is
(A) Iron and Steel plants
(B) Airways
(C) Railways
(D) Roadways
Ans: (C) Railways
39. Fresh evaluation of every item of expenditure from the very beginning of each financial year is called
(A) Fresh budgeting
(B) Deficit budgeting
(C) Performance budgeting
(D) Zero-based budgeting
Ans: (D) Zero-based budgeting
40. Fiscal Deficit in Union budget means
(A) the difference between current expenditure and current revenue.
(B) net increase in Union government’s borrowings from RBI.
(C) the sum of budgetary deficit and net increase in internal and external borrowings.
(D) the sum of monetised deficit and budgetary deficit.
Ans: (C) the sum of budgetary deficit and net increase in internal and external borrowings.
41. In India GDP is higher than GNP because
(A) import is higher than exports.
(B) capital inflow is higher than capital outflow.
(C) net factor income is negative.
(D) government expenditure is more than income.
Ans: (C) net factor income is negative.
42. National Income of India is compiled by
(A) Finance Commission
(B) Indian Statistical Institute
(C) National Development Council
(D) Central Statistical Organisation
Ans: (D) Central Statistical Organisation
43. The basic regulatory authority for mutual funds and stock exchange lies with
(A) Government of India
(B) Reserve Bank of India
(C) Securities and Exchange Board of India
(D) Stock Exchange
Ans: (C) Securities and Exchange Board of India
44. People below poverty line in India are classified as such based on whether
(A) they are entitled to a minimum prescribed food basket.
(B) they get work for a minimum number of days in a year.
(C) they belong to minority groups.
(D) their daily wages follows below prescribed minimum wages.
Ans: (A) they are entitled to a minimum prescribed food basket.
45. All taxes come under
(A) Revenue receipts
(B) Capital receipts
(C) Public debt
(D) Both (A) and (B)
Ans: (A) Revenue receipts
46. The main function of EXIM bank is
(A) to help RBI in regulation of foreign exchange.
(B) to prevent unlicensed transaction.
(C) to promote exports and curtail imports.
(D) to conserve foreign exchange.
Ans: (C) to promote exports and curtail imports.
47. The liabilities of commercial bank are
(i) time deposits
(ii) security holdings
(iii) demand deposits
(iv) advances from central bank
(A) (i), (ii), (iii)
(B) (i), (iii), (iv)
(C) (ii) and (iii)
(D) (iii) and (i)
Ans: (B) (i), (iii), (iv)
48. Which of the following statements regarding Regional Rural Banks (RRB) in India is correct?
(i) The basic aim of setting up RRBs is to develop rural economy.
(ii) The area of RRBs is limited to a specific region comprising one or more districts.
(iii) RRBs are sponsored by Commercial Banks.
Select the answer:
(A) (i) only
(B) (i) and (ii) only
(C) (ii) and (iii) only
(D) (i), (ii), (iii)
Ans: (D) (i), (ii), (iii)
49. Main argument in favour of small scale and cottage industries in India is that
(A) cost of production is low.
(B) they require small capital investment.
(C) they advance the goal of equitable distribution of wealth.
(D) they generate large volume of employment.
Ans: (D) they generate large volume of employment.
50. Bank rate is the rate at which
(A) a bank lends to public.
(B) RBI lends to public.
(C) Government of India lends to other countries.
(D) RBI lends to commercial banks.
Ans: (D) RBI lends to commercial banks.
51. GST will be levied on
(A) Manufacturers
(B) Retailers
(C) Consumers
(D) All of the above
Ans: (D) All of the above
52. Interest payable on savings bank accounts in India is
(A) not regulated
(B) regulated by RBI
(C) regulated by Central Government
(D) regulated by State Governments
Ans: (B) regulated by RBI
53. Which regulatory authority has revamped panel on alternative investment?
(A) RBI
(B) IRDA
(C) SEBI
(D) PDRA
Ans: (C) SEBI
54. Which of the following statement is not correct about INDIRA AWAS YOJNA?
(A) It was launched in 1985-86.
(B) Now it became the part of Bharat Nirman Programme.
(C) A minimum of 60% fund is used for the constructions of houses of SC/STs.
(D) Its financial burden is shared by the states in the ratio of 50:50.
Ans: (D) Its financial burden is shared by the states in the ratio of 50:50.
55. Who works as RBI’s agent at places where it has no office of its own?
(A) State Bank of India
(B) Ministry of Finance
(C) Government of India
(D) International Monetary Fund
Ans: (A) State Bank of India
56. Which constitutional amendment is done to pass the GST bill?
(A) 101st
(B) 120th
(C) 122nd
(D) 115th
Ans: (A) 101st
57. The Insurance Regulatory and Development Authority of India (IRDAI) has approved which of the following agencies to acquire a majority stake in IDBI bank?
(A) LIC
(B) GIC
(C) National Insurance Co. Ltd.
(D) None of the above
Ans: (A) LIC
58. A Public Debt Office works as investment banker to the
(A) Public
(B) Commercial Banks
(C) RBI
(D) Government
Ans: (D) Government
59. Which of the following tax is abolished by the Goods and Services Tax?
(A) Property Tax
(B) Corporation Tax
(C) VAT
(D) All of the above
Ans: (C) VAT
60. Who mints the coins in India?
(A) Ministry of Finance
(B) Reserve Bank of India
(C) Prime Minister’s Office
(D) Commerce and Industry Ministry
Ans: (A) Ministry of Finance
61. As per Mercer’s 24th Annual Cost of Living Survey 2018, which is India’s most expensive city?
(A) Gurugram
(B) Mumbai
(C) Bengaluru
(D) Hyderabad
Ans: (B) Mumbai
62. Which of the following statement is correct about Budget?
I. It is a statement of financial position for a future period, setting out proposed expenditure and means of financing it.
II. Article 111 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year.
Select correct one:
(A) Only I
(B) Only II
(C) Both I & II
(D) Neither I nor II
Ans: (A) Only I
63. Which of the following three general insurance companies will be merged into single insurance company as per Budget 2018-19?
(A) UTI, Oriental Insurance and National Insurance
(B) LIC, Bharti AXA and United Insurance
(C) General Insurance, Max Bupa and UTI
(D) Agriculture Insurance Company of India Limited, Bharti AXA and United Insurance
Ans: (A) UTI, Oriental Insurance and National Insurance
64. The oldest stock market of India is
(A) Bombay Stock Exchange
(B) Ahmedabad Stock Exchange
(C) Bengalore Stock Exchange
(D) Hyderabad Stock Exchange
Ans: (A) Bombay Stock Exchange
65. If the government chooses to spend money freshly printed by the RBI against government securities, it should be kept in which among the following?
(A) Fiscal adjustment
(B) Deficit financing
(C) Mandatory spending
(D) Retrenchment
Ans: (B) Deficit financing
66. RBI revision of Repo/Reverse Repo rate by 10 basis points implies, which among the following fractions?
(A) 1%
(B) 10%
(C) 100%
(D) 0.10%
Ans: (D) 0.10%
67. Which of the following sector does not come under the service sector in India?
(A) Real Estate
(B) Transport
(C) Restaurants & Hotels
(D) Formation of electronic television
Ans: (D) Formation of electronic television
68. Which of the following is likely to cause current account deficit in India?
I. Reduced excise duties on Sports Utility Vehicles
II. Reduced duties on Gold
III. Ban of export of Onions
(A) Both I & II
(B) Both II & III
(C) Only I & III
(D) I, II & III
Ans: (D) I, II & III
69. Which among the following correctly denotes the Primary Deficit?
(A) Revenue Expenditure – Revenue Receipts
(B) Sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market borrowing of the government
(C) Budgetary Deficit + Govt. market borrowings and liabilities
(D) Fiscal Deficit – Interest Payment
Ans: (D) Fiscal Deficit – Interest Payment
70. Which of the following is true about the restrictions on RBI?
(i) It is not to compete with the commercial banks.
(ii) It is not allowed to pay interest on its deposits.
(iii) It cannot engage directly or indirectly in trade.
(iv) It cannot acquire or advance loans against immovable property.
(v) It is prohibited from purchasing its own shares or the shares of any other bank or any company or granting loans on such security.
(A) Only (i), (ii), (iii) and (iv)
(B) Only (v)
(C) All of the above
(D) None of the above
Ans: (C) All of the above
71. Which of the following is called a banker’s cheque?
(A) Demand draft
(B) Debit card
(C) Pay order
(D) Fixed deposit
Ans: (A) Demand draft
72. Which of the following is not the work of RBI?
(A) Bank of the banks
(B) Credit controller
(C) Custodian of foreign currency
(D) Allocating funds directly to the farmers for agricultural development
Ans: (D) Allocating funds directly to the farmers for agricultural development
73. Which of the following words is not used in Monetary Policy?
(A) Cash Reserve Ratio
(B) Repo Rate
(C) Bank Rate
(D) Blue Chip
Ans: (D) Blue Chip
74. Which of the following is not a function of RBI?
(A) To assume responsibility of meeting directly or indirectly all reasonable demands for accommodation
(B) To hold cash reserves of commercial banks
(C) To assume responsibility of all banking operations of the government
(D) To assume responsibility of statistical analysis of data related to macroeconomy of India
Ans: (D) To assume responsibility of statistical analysis of data related to macroeconomy of India
75. If cash reserve ratio is lowered by RBI, its impact on credit creation will be to
(A) increase it
(B) decrease it
(C) no impact
(D) cannot be determined
Ans: (A) increase it
76. National income calculated at current price in India has shown a tendency to rise at a faster rate than national income at constant prices because
(A) General price level has been rising fast.
(B) India’s population has been rising.
(C) Base year chosen is abnormal.
(D) None of the above
Ans: (A) General price level has been rising fast.
77. National Rural Development Institute is situated at
(A) Delhi
(B) Shimla
(C) Hyderabad
(D) Mumbai
Ans: (C) Hyderabad
78. Which of the following is wrongly matched?
(A) Share market—stock exchange
(B) Interest rate—fiscal policy
(C) Export subsidy—fiscal policy
(D) General price index—inflation
Ans: (B) Interest rate—fiscal policy
79. Which among the following formulates fiscal policy?
(A) RBI
(B) Finance Ministry
(C) SEBI
(D) Planning Commission
Ans: (B) Finance Ministry
80. Consider the following statements about GST:
i) Both Central and State taxes will be collected at the point of sale.
ii) The Central and State GST will be charged on the manufacturing cost.
Which of the above statements are correct?
(A) Only (i)
(B) Only (ii)
(C) Both of the above
(D) None of the above
Ans: (D) None of the above
81. In context of India’s five year plans, a shift in pattern of industrialization with lower emphasis on heavy industries and more on infrastructure begins in
(A) Fourth Plan
(B) Fifth Plan
(C) Eighth Plan
(D) Ninth Plan
Ans: (C) Eighth Plan
82. How many Regional Rural Banks are working in India as of January, 2018?
(A) 59
(B) 60
(C) 61
(D) 56
Ans: (D) 56
83. The RBI issues
(A) all currency notes
(B) all currency notes except one rupee notes
(C) all currency notes except 100 rupee notes
(D) only notes of Rs.10 and above
Ans: (B) all currency notes except one rupee notes
84. Fiscal Responsibility and Budget Management Act concerns
(A) Fiscal deficit only
(B) Revenue deficit only
(C) Both fiscal and revenue deficit
(D) Neither fiscal nor revenue deficit
Ans: (C) Both fiscal and revenue deficit
85. Bring out the only incorrect statement:
(A) Reverse Repo operation by RBI aims at injecting/increasing liquidity.
(B) SDR refers to special drawing rights.
(C) Rupee appreciation results in decrease in imports.
(D) Increase in inflation rate leads to decline in real interest rate.
Ans: (A) Reverse Repo operation by RBI aims at injecting/increasing liquidity.
86. Investment in which among the following is the Most Risk Free Asset of a Bank as per the RBI guidelines?
(A) Housing Loans
(B) Government Approved Securities
(C) Venture Capital Investments
(D) Loans against Jewellery
Ans: (B) Government Approved Securities
87. Which one of the following is NOT correct?
(A) First Five Year Plan : 1951-1956
(B) Second Five Year Plan : 1956-1961
(C) Third Five Year Plan : 1961-1966
(D) Fourth Five Year Plan : 1966-1971
Ans: (D) Fourth Five Year Plan : 1966-1971
88. Which among the following Industrial Policy Resolution/Statement was based upon the Mahalanobis Model of growth?
(A) Industrial Policy Resolution-1956
(B) Industry Policy Statement-1973
(C) Industrial Policy Statement-1977
(D) None of the above
Ans: (A) Industrial Policy Resolution-1956
89. Which among the following was the first Government Company to be privatized in India?
(A) Hotel Corporation of India
(B) Rashtriya Chemicals & Fertilizers Ltd.
(C) Maruti Udyog Limited
(D) Modern Foods Industries Limited
Ans: (D) Modern Foods Industries Limited
90. If the Reserve Bank of India wants to block/hinder the capital outflows and contain the currency depreciation, which among the following will be the most possible action?
(A) Increase Interest Rates
(B) Decrease Interest Rates
(C) Purchase Government Bonds
(D) Decrease Statutory Liquidity Ratio
Ans: (A) Increase Interest Rates
91. The Mahatma Gandhi National Rural Employment Guarantee Act mandates at least what fraction of the beneficiaries to be women?
(A) 25%
(B) 30%
(C) 40%
(D) 50%
Ans: (B) 30%
92. RBI has allowed which banks to become Small Finance Banks under certain criteria?
(A) Rural Cooperative Banks
(B) District Cooperative Banks
(C) Urban Cooperative Banks
(D) None of the above
Ans: (C) Urban Cooperative Banks
93. In context of India’s five year plans, in which plan was the growth rate target exceeded?
(A) First plan
(B) Fifth plan
(C) Sixth plan
(D) None of the above
Ans: (A) First plan
94. Development expenditure of the Central Government does not include
(A) defence expenditure
(B) expenditure on economic services
(C) expenditure on social and community services
(D) grant to states
Ans: (A) defence expenditure
95. A Non-Resident Indian wants to get approval under Government Route for FDI in ‘Single Brand’ product retailing in India. Which among the following would be the appropriate agency to approach for this application?
(A) Regional Office of Reserve Bank of India
(B) Head Office of Reserve Bank of India
(C) Department of Economic Affairs (Ministry of Finance)
(D) Department of Industrial Policy and Promotion (Ministry of Commerce)
Ans: (D) Department of Industrial Policy and Promotion (Ministry of Commerce)
96. In India, the Foreign Exchange Reserves are kept in the custody of which among the following?
(A) Ministry of Finance
(B) EXIM bank
(C) Reserve Bank of India
(D) Selected Public Sector Banks
Ans: (C) Reserve Bank of India
97. If the Reserve Bank of India wants to increase the cash reserves of commercial banks, which among the following would be the most probable step taken by it?
(A) Release Gold from its reserves
(B) Buy bonds in the open market
(C) Prohibit the transactions that involve bill of exchange
(D) Increase the tranche reserves with the IMF
Ans: (B) Buy bonds in the open market
98. The minimum interest rate of a bank below which it is not viable to lend, is known as
(A) Reserved Rate
(B) Base Rate
(C) Marginal Rate
(D) Prime Lending Rate
Ans: (B) Base Rate
99. Which of the following is used to denote broad money?
(A) M1
(B) M2
(C) M3
(D) M4
Ans: (C) M3
100. Which among the following is popularly known as mercantile law of India?
(A) Contract Law
(B) Law of Torts
(C) Labour Law
(D) Property Law
Ans: (A) Contract Law