WBCS MAIN 2022 P-5 Economics MCQ
WBCS MAIN 2022 P-5 Economics One Liner Questions
GLOBALIZATION & INTERNATIONAL ECONOMICS
- Which one of the following is NOT an indicator of Globalization? Ans: Achieving exchange rate stability
- In POW camps during the Vietnam War, cigarettes were used as money. This is an example of a Ans: commodity money standard
- The Rupee was made convertible on the current account of the balance of payments in Ans: August, 1994
- The act of simultaneously buying a currency in one market and selling in another market is called Ans: Arbitrage
- Special Economic Zones in India was established in India following Ans: China model
- India’s exchange rate follows Ans: managed float
- India faced a serious balance of payments problem in Ans: 1990-91
- Under a managed float exchange rate system, the RBI can intervene in Foreign Exchange Markets to Ans: smooth out short-run fluctuations in exchange rates
- What is another name given to outsourcing? Ans: Offshoring
- Which one of the following items is included in the capital account of the balance of payments? Ans: Commercial borrowings
- India has been able to resolve, to a large extent, the trilemma of the famed ‘Impossible Trinity’ by Ans: the combination of managed flexibility and partial capital account controls
- Which of the following statements is correct about ‘Impossible Trinity’? It disallows the simultaneous achievement of Ans: exchange rate stability, monetary independence and capital market integration
- India witnessed first a positive trade balance in the Ans: None of the above
- All of the following are international reserves except Ans: Foreign credits not yet received
- Which one of the following is NOT included in the foreign exchange reserves of India? Ans: Silver holding of the RBI
RESERVE BANK OF INDIA & MONETARY POLICY
- The Taylor’s rule in monetary policy specifies that if inflation rises by 1 percentage point, Ans: the nominal interest rate should be increased by more than 1 percentage point
- Which one of the following is NOT a quantitative credit control method? Ans: Margin requirements (It is a qualitative method)
- Which of the following is not a monetary policy arrangement? Ans: Sterilization rate control
- Monetary policy’s relative strength in taming business cycles depends on the Ans: Both (A) and (B) [degree of openness of the country & degree of flexibility in the forex rate]
- The power of the RBI to fix the CRR has been given under Ans: RBI Act, 1934
- Presently the most common tool with RBI to influence interest rates in the country is Ans: Repo rate
- Which one of the following is a qualitative credit control method? Ans: Moral suasion
- The rate at which Central Bank lends to Commercial Banks is known as Ans: Discount Rate (also Bank Rate)
- Demonetization is a part of monetary policy of a country, which means Ans: decrease in supply of money to the public
- REPO Rate is always Ans: greater than Reverse REPO Rate
- When the RBI announces an increase in CRR, it means Ans: The Commercial banks will have less money to lend
- Strategically the open market operations (OMOs) is more effective than the bank rate policy to control money supply and inflationary pressure since Ans: OMOs are done exclusively by the central bank and no association or consultation with the commercial banks is required
- ‘Open market operations’ by the RBI implies Ans: sale and purchase of government securities by the RBI
- Which one of the following is NOT the objective of monetary policy of India? Ans: To regulate foreign trade
- Which of the following regarding the activities of the RBI is NOT correct? Ans: Statutory pre-emptions have been progressively increased by the RBI
- Prior to 1991, the RBI regulated Ans: Broad money
MONEY & BANKING
- M₄ Money in India is defined as Ans: M₃ + Total Post office deposits
- High powered money comprises Ans: Currency in circulation with the public + Bankers’ deposits with RBI + ‘Other’ deposits with RBI
- ‘High Powered Money’ is also known as Ans: Reserve money
- Banks are required to maintain a certain ratio between their cash in the hand and total assets. This is called Ans: Statutory Liquidity Ratio (SLR)
- Which one of the following represents capital adequacy ratio for Commercial Banks? Ans: Ratio of bank’s available capital to risk-weighted assets
- FEMA was introduced in which year? Ans: 1999
- In the second Nationalization of Commercial Banks, _ banks were nationalized. Ans: 6
- The Reserve Bank of India (RBI) acts as the “banker’s bank” in the sense that Ans: The scheduled banks can borrow from the RBI in time of need
- Which of the following statements is correct about bank performance? Ans: Both (A) and (C) are correct [Gross NPAs of public sector banks have declined & Net profits in public sector banks as a percentage of total assets have increased]
- Which one is the Apex institution as a source for providing rural credit in India? Ans: NABARD
FISCAL POLICY & PUBLIC FINANCE
- The Finance Commission is constituted by the President of India every Ans: 5 years
- Under which Article of the Constitution of India is the Finance Commission appointed by President of India? Ans: Article 280
- India’s gross fiscal deficits which was 8.3% of GDP in 2008-09 (Global Financial Crisis Period) had reached in 2020-21 (COVID-19 Pandemic period) at Ans: 9.5% of GDP
- Fiscal policy refers to Ans: tax and expenditure policy used by the government to influence the size of the economy
- As of end-November 2021, India was the fourth largest foreign exchange reserves holder in the world. Reserves stand at US $634 billion on 31st December 2021. This is equivalent to Ans: 13.2 months of import cover
- The fiscal policy is weakened by the presence of Ans: All of the above (Public debt, Fear of capital flight, Interest sensitiveness of investment)
- Which year is considered as ‘Golden Year of Fiscal Discipline’ during the 2010s? Ans: 2007-08
- In India, which one among the following formulates the fiscal policy? Ans: Ministry of Finance
- Find the odd one in the following list about Finance Commission: Ans: It looks into the growing disparity between the urban and rural population
- Which of the following represents the most expansionary fiscal policy? Ans: Rs. 10 billion increase in government spending
- Deficit financing is akin to Ans: Both (A) and (B) [financing budgetary deficit through public loans and creation of new money; expenditure in excess of current revenue and public borrowing]
- Budget deficit does NOT take into account Ans: balance of payments deficit
- GST was recommended by Ans: None of the above (Kelkar Task Force)
- Which one of the following is NOT a source of the State tax revenue? Ans: Corporate tax
FIVE YEAR PLANS & INDIAN ECONOMY
- Which Industrial Policy is known as the ‘Economic Constitution of India’? Ans: 1956
- Which of the following Five Year Plan has laid emphasis on ‘faster, sustainable and inclusive growth’? Ans: Twelfth Five Year Plan (2012-2017)
- India’s Second Five Year Plan was based on Ans: Nehruvian-Feldman-Mahalanobis Model
- To achieve a high rate of growth of capital formation, P.C. Mahalanobis suggested that allocation of investment to capital goods sector should be Ans: 50%
- The First Five Year Plan was based on Ans: a simple variant of Harrod-Domar model
- In the past, Planners announced the Plan Holiday for three years. They were as follows: Ans: 1966-67, 1967-68, 1968-69
- India’s Fourth Plan could not be launched on time due to Ans: both Chinese aggression in 1962 and conflict with Pakistan in 1965
- The main foundation of Fifth Five Year Plan was Ans: Harrod-Domar one sector model, Leontief Input-Output Model and a Consumption sub-model
- NITI Aayog came into operation on Ans: 1st January, 2015
- NITI Aayog was set up by Ans: resolution by Union Cabinet
- Arrange the following in chronological order: (a) Mahalanobis model (b) Introduction of rolling plan (c) Declaration of plan holiday (d) Inclusive growth strategy Ans: (a), (c), (b), (d)
- Early phases of Indian development planning experienced Ans: Import substitution
- First three decades of development planning observed Ans: Hindu rate of growth of GDP
- India’s first effort to eradicate poverty was started from Ans: Fifth Five Year Plan (1974-79)
- Which Plan in India is called a plan for managing the transition from a centrally planned economy to a market economy? Ans: Eighth Five Year Plan (1992-97)
POVERTY & SOCIAL SECTOR
- Independent India’s serious efforts to alleviate poverty began with the famous slogan Ans: ‘Garibi Hatao’ of the 1970s
- Under MGNREGS, guarantee is provided for Ans: at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work
- The Employment Guarantee Act underlying the MGNREGS is a Ans: Demand-driven scheme
- PM SVANidhi Scheme is a scheme recently in light to Ans: provide working capital loan to urban street vendors to resume their businesses
- In order to reduce the impact of the shock caused by the COVID-19 second wave, which one among the following is NOT the stimulus package for COVID-19 reliefs? Ans: Non-Release of climate resilient special traits varieties
- Which of the following is dedicated to empowerment of girl students in India? Ans: Beti Bachao Beti Padhao
- The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) Ans: is a placement-linked skill development scheme for rural youth who are poor
SECTORS OF INDIAN ECONOMY
- Which one among the following sectors was the least impacted by the COVID-19 pandemic-related disruptions? Ans: Agriculture
- In India, the main source of national income is Ans: Tertiary sector (Services sector)
- The most striking feature of the structural change in the Indian economy as the major contributor to growth has been Ans: pre-eminence of services sector
- Dr. M.S. Swaminathan is associated with Ans: agriculture
MISCELLANEOUS
- Find the odd one out: (A) Income Tax (B) Capital Gains Tax (C) Goods and Services Tax (GST) (D) Securities Transaction Tax (STT) Ans: Goods and Services Tax (GST) (GST is indirect tax; others are direct taxes)
- Which one of the following is generally regarded as the true index of economic growth? Ans: A sustained increase in real per capita income
- The Union Government has accepted the recommendations made by the Fifteenth Finance Commission (XV-FC) relating to grants-in-aid to the States amounting to Ans: Rs. 2,33,233 crore
- During inflation Ans: creditors are losers and borrowers are gainers
- “The Third Pillar: How Markets and the State Leave the Community Behind” – the book was written by Ans: Raghuram G. Rajan
- Rate of interest rate is being reduced in India Ans: to create easy credit facilities
- Sukhomoy Chakravarty Committee is famous for Ans: Reforms of the monetary system
- In the Indian context, which one of the following pairs is NOT correctly matched? Ans: Female work participation rate : Disinvestment
- Which of the following pairs is NOT correctly matched? Ans: Chakravarty : Power Sector Reforms Committee (Sukhamoy Chakravarty Committee was on Monetary System)
- Against the backdrop of Disinvestment Policy of the Government of India, New Public Sector Enterprise (PSE) Policy for Atmanirbhar Bharat was notified on Ans: 4th February, 2021
- The system of Panchayati Raj involves Ans: Village, Block and District levels
- Guidotti Rule is associated with Ans: reserve management
- Stagflation refers to a situation which is characterized by Ans: inflation and rising unemployment
- When power is taken away from state governments and is given to local government, it is called Ans: Decentralization
- What is the third tier of government known as? Ans: Local self-government
- Consider the following statements regarding Bharatmala Programme: Ans: (B) and (C) only [It includes backward areas, religious, tourist places connectivity & Setubharatam Pariyojana for construction of major bridges]
- The year 2015 witnessed one landmark international event: The Millennium Development Goals were replaced by the Ans: Sustainable Development Goals
- The practice of using fiscal and monetary policy to stabilize the economy is known as Ans: Fine tuning of demand
WBCS MAIN 2022 P-5 Economics MCQ
GLOBALIZATION & INTERNATIONAL ECONOMICS
1. Which one of the following is NOT an indicator of Globalization?
(A) Opening of the economy for unrestricted imports and exports
(B) Allowing free capital movement among nations
(C) Free movement of technology among nations
(D) Achieving exchange rate stability
Ans: (D) Achieving exchange rate stability
2. In POW camps during the Vietnam War, cigarettes were used as money. This is an example of a
(A) commodity money standard
(B) gold standard
(C) gold exchange standard
(D) Bretton Woods Institution
Ans: (A) commodity money standard
3. The Rupee was made convertible on the current account of the balance of payments in
(A) July, 1991
(B) April, 1992
(C) August, 1994
(D) April, 1995
Ans: (C) August, 1994
4. The act of simultaneously buying a currency in one market and selling in another market is called
(A) Speculation
(B) Spotting
(C) Forwarding
(D) Arbitrage
Ans: (D) Arbitrage
5. Special Economic Zones in India was established in India following
(A) Japanese model
(B) American model
(C) Russian model
(D) China model
Ans: (D) China model
6. India’s exchange rate follows
(A) fixed exchange rate policy
(B) flexible exchange rate policy
(C) managed float
(D) None of the above
Ans: (C) managed float
7. India faced a serious balance of payments problem in
(A) 1980-81
(B) 1990-91
(C) 2000-2001
(D) 2010-2011
Ans: (B) 1990-91
8. Under a managed float exchange rate system, the RBI can intervene in Foreign Exchange Markets to
(A) smooth out short-run fluctuations in exchange rates
(B) control inflation
(C) increase demand
(D) decrease the supply of money
Ans: (A) smooth out short-run fluctuations in exchange rates
9. What is another name given to outsourcing?
(A) Multilateralism
(B) Mercantilism
(C) Offshoring
(D) Dumping
Ans: (C) Offshoring
10. Which one of the following items is included in the capital account of the balance of payments?
(A) Invisibles
(B) Investment income
(C) Commercial borrowings
(D) Private transfers
Ans: (C) Commercial borrowings
11. India has been able to resolve, to a large extent, the trilemma of the famed ‘Impossible Trinity’ by
(A) altering fixed rate
(B) the combination of managed flexibility and partial capital account controls
(C) altering money supply and removing distortions in the market
(D) borrowing from the IMF
Ans: (B) the combination of managed flexibility and partial capital account controls
12. Which of the following statements is correct about ‘Impossible Trinity’? It disallows the simultaneous achievement of
(A) exchange rate variability, monetary dependence and capital market integration
(B) fixed exchange rate, monetary independence and capital account opening
(C) exchange rate stability, monetary independence and capital market integration
(D) monetary independence, pegged exchange rate and capital control
Ans: (C) exchange rate stability, monetary independence and capital market integration
13. India witnessed first a positive trade balance in the
(A) 1970s
(B) 1980s
(C) 1990s
(D) None of the above
Ans: (D) None of the above
14. All of the following are international reserves except
(A) SDRs
(B) Gold
(C) Foreign credits not yet received
(D) Foreign Currency Assets
Ans: (C) Foreign credits not yet received
15. Which one of the following is NOT included in the foreign exchange reserves of India?
(A) Foreign currency assets held by the RBI
(B) Gold holding of the RBI
(C) Silver holding of the RBI
(D) SDRs (Special Drawing Rights)
Ans: (C) Silver holding of the RBI
RESERVE BANK OF INDIA & MONETARY POLICY
16. The Taylor’s rule in monetary policy specifies that if inflation rises by 1 percentage point,
(A) the nominal interest rate should be increased by 1 percentage point
(B) the nominal interest rate should be increased by twice that rate
(C) the nominal interest rate should be increased by more than 1 percentage point
(D) the nominal interest rate should be brought down by 1 percentage point
Ans: (C) the nominal interest rate should be increased by more than 1 percentage point
17. Which one of the following is NOT a quantitative credit control method?
(A) Open market operation
(B) Repo rate and reverse repo rate
(C) Variable cash reserve ratio
(D) Margin requirements
Ans: (D) Margin requirements
18. Which of the following is not a monetary policy arrangement?
(A) Exchange rate anchor
(B) Monetary aggregate target
(C) Inflation targeting framework
(D) Sterilization rate control
Ans: (D) Sterilization rate control
19. Monetary policy’s relative strength in taming business cycles depends on the
(A) degree of openness of the country
(B) degree of flexibility in the forex rate
(C) size of the interest elasticity of money demand
(D) Both (A) and (B)
Ans: (D) Both (A) and (B)
20. The power of the RBI to fix the CRR has been given under
(A) Banking Regulation Act
(B) Companies Act
(C) RBI Act
(D) Finance Act
Ans: (C) RBI Act, 1934
21. Presently the most common tool with RBI to influence interest rates in the country is
(A) Bank rate
(B) Repo rate
(C) Exchange rate
(D) Treasury bills rate
Ans: (B) Repo rate
22. Which one of the following is a qualitative credit control method?
(A) Open market operation
(B) Repo rate and reverse repo rate
(C) Variable cash reserve ratio
(D) Moral suasion
Ans: (D) Moral suasion
23. The rate at which Central Bank lends to Commercial Banks is known as
(A) Open Market Operation
(B) Reserve Rate
(C) Discount Rate
(D) SLR
Ans: (C) Discount Rate
24. Demonetization is a part of monetary policy of a country, which means
(A) increase in supply of money to the public
(B) decrease in supply of money to the public
(C) Control of inflation
(D) All of the above
Ans: (B) decrease in supply of money to the public
25. REPO Rate is always
(A) greater than Reverse REPO Rate
(B) less than Reverse REPO Rate
(C) equal to Reverse REPO Rate
(D) Only (A) and (C)
Ans: (A) greater than Reverse REPO Rate
26. When the RBI announces an increase in CRR, it means
(A) The Union Government will have less money to lend
(B) The RBI will have less money to lend
(C) The Commercial banks will have less money to lend
(D) All of the above
Ans: (C) The Commercial banks will have less money to lend
27. Strategically the open market operations (OMOs) is more effective than the bank rate policy to control money supply and inflationary pressure since
(A) OMOs are done by the commercial banks
(B) OMOs are not used to make bank rate policy effective
(C) OMOs are done exclusively by the central bank and no association or consultation with the commercial banks is required
(D) None of the above
Ans: (C) OMOs are done exclusively by the central bank and no association or consultation with the commercial banks is required
28. ‘Open market operations’ by the RBI implies
(A) control of lending operation by the RBI
(B) closure of banks on the directions of the RBI
(C) sale and purchase of government securities by the RBI
(D) inspection of commercial banks by the RBI
Ans: (C) sale and purchase of government securities by the RBI
29. Which one of the following is NOT the objective of monetary policy of India?
(A) To accelerate economic development
(B) To achieve price stability
(C) To regulate foreign trade
(D) To stabilize exchange rate
Ans: (C) To regulate foreign trade
30. Which of the following regarding the activities of the RBI is NOT correct?
(A) The RBI now accords substantial freedom to banks in optimizing their portfolios as well as pricing their products
(B) Prudential norms have been instituted and the supervisory framework strengthened
(C) The RBI now offers incentives to banks in the areas of infrastructure financing and housing loans
(D) Statutory pre-emptions have been progressively increased by the RBI
Ans: (D) Statutory pre-emptions have been progressively increased by the RBI
31. Prior to 1991, the RBI regulated
(A) Reserve money
(B) Narrow money
(C) Broad money
(D) Arbitrage
Ans: (C) Broad money
MONEY & BANKING
32. M₄ Money in India is defined as
(A) M₃ + Total Post office deposits
(B) Time deposits of the public with the banks
(C) Currency with the public
(D) Total Post office deposits
Ans: (A) M₃ + Total Post office deposits
33. High powered money comprises
(A) Currency held by the public + cash reserves with banks
(B) Currency with the public + Demand deposits with the banks + time deposits with the banks + ‘Other’ deposits with the RBI
(C) Currency in circulation with the public + Bankers’ deposits with RBI + ‘Other’ deposits with RBI
(D) Currency held by the public + ‘Other’ deposits with RBI
Ans: (C) Currency in circulation with the public + Bankers’ deposits with RBI + ‘Other’ deposits with RBI
34. ‘High Powered Money’ is also known as
(A) Narrow money
(B) Reserve money
(C) Broad money
(D) Both (B) and (C)
Ans: (B) Reserve money
35. Banks are required to maintain a certain ratio between their cash in the hand and total assets. This is called
(A) Statutory Liquidity Ratio (SLR)
(B) Central Liquid Reserve (CLR)
(C) Statutory Bank Ratio (SBR)
(D) Central Bank Reserve (CBR)
Ans: (A) Statutory Liquidity Ratio (SLR)
36. Which one of the following represents capital adequacy ratio for Commercial Banks?
(A) Ratio of bank’s available capital to risk-weighted assets
(B) Ratio of capital to short-term deposits
(C) Ratio of capital to non-performing assets
(D) Ratio of capital to advances
Ans: (A) Ratio of bank’s available capital to risk-weighted assets
37. FEMA was introduced in which year?
(A) 1999
(B) 2000
(C) 2002
(D) 2004
Ans: (A) 1999
38. In the second Nationalization of Commercial Banks, _ banks were nationalized.
(A) 8
(B) 6
(C) 5
(D) 4
Ans: (B) 6
39. The Reserve Bank of India (RBI) acts as the “banker’s bank” in the sense that
(A) The scheduled banks can borrow from the RBI in time of need
(B) The RBI fixes the conditions of cash reserve requirement which the scheduled banks have to follow
(C) The RBI controls the credit operation of the scheduled banks
(D) The RBI controls the banking system through the system of licensing
Ans: (A) The scheduled banks can borrow from the RBI in time of need
40. Which of the following statements is correct about bank performance?
(A) Gross non-performing loans of public sector banks have declined
(B) Net nonperforming loans as a percentage of total assets have increased
(C) Net profits in public sector banks as a percentage of total assets have increased
(D) Both (A) and (C) are correct
Ans: (D) Both (A) and (C) are correct
41. Which one is the Apex institution as a source for providing rural credit in India?
(A) Regional Rural Banks
(B) State Cooperative Bank
(C) Central Cooperative Bank
(D) NABARD
Ans: (D) NABARD
FISCAL POLICY & PUBLIC FINANCE
42. The Finance Commission is constituted by the President of India every
(A) 2 years
(B) 3 years
(C) 4 years
(D) 5 years
Ans: (D) 5 years
43. Under which Article of the Constitution of India is the Finance Commission appointed by President of India?
(A) 279
(B) 280
(C) 281
(D) 282
Ans: (B) Article 280
44. India’s gross fiscal deficits which was 8.3% of GDP in 2008-09 (Global Financial Crisis Period) had reached in 2020-21 (COVID-19 Pandemic period) at
(A) 9% of GDP
(B) 9.5% of GDP
(C) 10.2% of GDP
(D) 11% of GDP
Ans: (B) 9.5% of GDP
45. Fiscal policy refers to
(A) tax and expenditure policy used by the government to influence the size of the economy
(B) the government’s regulation of financial intermediaries
(C) the actions of the central bank in controlling money supply
(D) None of the above
Ans: (A) tax and expenditure policy used by the government to influence the size of the economy
46. As of end-November 2021, India was the fourth largest foreign exchange reserves holder in the world. Reserves stand at US $634 billion on 31st December 2021. This is equivalent to
(A) 13.2 months of import cover
(B) 12.1 months of import cover
(C) 9 months of import cover
(D) 5 months of import cover
Ans: (A) 13.2 months of import cover
47. The fiscal policy is weakened by the presence of
(A) Public debt
(B) Fear of capital flight
(C) Interest sensitiveness of investment
(D) All of the above
Ans: (D) All of the above
48. Which year is considered as ‘Golden Year of Fiscal Discipline’ during the 2010s?
(A) 2005-06
(B) 2006-07
(C) 2007-08
(D) 2008-09
Ans: (C) 2007-08
49. In India, which one among the following formulates the fiscal policy?
(A) NITI Aayog
(B) Ministry of Finance
(C) Finance Commission
(D) The Reserve Bank of India
Ans: (B) Ministry of Finance
50. Find the odd one in the following list about Finance Commission:
(A) The Finance Commission reviews the state of finances of the Union and the States
(B) It suggests a plan for restructuring public finances
(C) It maintains macroeconomic stability
(D) It looks into the growing disparity between the urban and rural population
Ans: (D) It looks into the growing disparity between the urban and rural population
51. Which of the following represents the most expansionary fiscal policy?
(A) Rs. 10 billion increase in government spending
(B) Rs. 10 billion decrease in government spending
(C) Rs. 10 billion tax cut
(D) Rs. 10 billion tax increase
Ans: (A) Rs. 10 billion increase in government spending
52. Deficit financing is akin to
(A) financing the budgetary deficit through public loans and creation of new money
(B) the expenditure which is in excess of current revenue and public borrowing
(C) Both (A) and (B)
(D) None of the above
Ans: (C) Both (A) and (B)
53. Budget deficit does NOT take into account
(A) revenue deficit
(B) capital budget deficit
(C) balance of payments deficit
(D) interest payments on public debt
Ans: (C) balance of payments deficit
54. GST was recommended by
(A) 13th Finance Commission
(B) 14th Finance Commission
(C) 15th Finance Commission
(D) None of the above
Ans: (D) None of the above
55. Which one of the following is NOT a source of the State tax revenue?
(A) Land revenue
(B) Motor Vehicle tax
(C) Entertainment tax
(D) Corporate tax
Ans: (D) Corporate tax
FIVE YEAR PLANS & INDIAN ECONOMY
56. Which Industrial Policy is known as the ‘Economic Constitution of India’?
(A) 1948
(B) 1956
(C) 1977
(D) 1991
Ans: (B) 1956
57. Which of the following Five Year Plan has laid emphasis on ‘faster, sustainable and inclusive growth’?
(A) Eleventh Five Year Plan
(B) Twelfth Five Year Plan
(C) Tenth Five Year Plan
(D) Ninth Five Year Plan
Ans: (B) Twelfth Five Year Plan (2012-2017)
58. India’s Second Five Year Plan was based on
(A) Harrod-Domar Model
(B) Nehruvian-Feldman-Mahalanobis Model
(C) Romer Growth Model
(D) Leontief Input-Output Model
Ans: (B) Nehruvian-Feldman-Mahalanobis Model
59. To achieve a high rate of growth of capital formation, P.C. Mahalanobis suggested that allocation of investment to capital goods sector should be
(A) 40%
(B) 33.3%
(C) 66.6%
(D) 50%
Ans: (D) 50%
60. The First Five Year Plan was based on
(A) simple Harrod-Domar model
(B) Solow model
(C) a simple variant of Harrod-Domar model
(D) Leontief model
Ans: (C) a simple variant of Harrod-Domar model
61. In the past, Planners announced the Plan Holiday for three years. They were as follows:
(A) 1951-52, 1952-53, 1953-54
(B) 1961-62, 1962-63, 1963-64
(C) 1966-67, 1967-68, 1968-69
(D) 1971-72, 1972-73, 1973-74
Ans: (C) 1966-67, 1967-68, 1968-69
62. India’s Fourth Plan could not be launched on time due to
(A) Chinese aggression
(B) conflict with Pakistan
(C) both Chinese aggression in 1962 and conflict with Pakistan in 1965
(D) None of the above
Ans: (C) both Chinese aggression in 1962 and conflict with Pakistan in 1965
63. The main foundation of Fifth Five Year Plan was
(A) Harrod-Domar Model
(B) Investment Model
(C) Harrod-Domar one sector model, Leontief Input-Output Model and a Consumption sub-model
(D) None of the above
Ans: (C) Harrod-Domar one sector model, Leontief Input-Output Model and a Consumption sub-model
64. NITI Aayog came into operation on
(A) 1st April, 2014
(B) 1st April, 2015
(C) 1st January, 2015
(D) 1st January, 2016
Ans: (C) 1st January, 2015
65. NITI Aayog was set up by
(A) resolution by Union Cabinet
(B) amending the Constitution of India
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Ans: (A) resolution by Union Cabinet
66. Arrange the following in chronological order: (a) Mahalanobis model (b) Introduction of rolling plan (c) Declaration of plan holiday (d) Inclusive growth strategy
(A) (b), (a), (c), (d)
(B) (a), (c), (b), (d)
(C) (c), (a), (b), (d)
(D) (a), (c), (d), (b)
Ans: (B) (a), (c), (b), (d)
67. Early phases of Indian development planning experienced
(A) Export-led growth
(B) Import substitution
(C) Managed float exchange rate
(D) Hefty amount of foreign exchange reserves
Ans: (B) Import substitution
68. First three decades of development planning observed
(A) High growth rate of GDP
(B) Hindu rate of growth of GDP
(C) Very high agricultural growth rate
(D) All of the above
Ans: (B) Hindu rate of growth of GDP
69. India’s first effort to eradicate poverty was started from
(A) Second Five Year Plan
(B) Fourth Five Year Plan
(C) Fifth Five Year Plan
(D) Sixth Five Year Plan
Ans: (C) Fifth Five Year Plan (1974-79)
70. Which Plan in India is called a plan for managing the transition from a centrally planned economy to a market economy?
(A) Fifth Plan
(B) Eighth Plan
(C) Sixth Plan
(D) Second Plan
Ans: (B) Eighth Five Year Plan (1992-97)
POVERTY & SOCIAL SECTOR
71. Independent India’s serious efforts to alleviate poverty began with the famous slogan
(A) ‘Joy Jawan, Joy Kishan’
(B) ‘Garibi Hatao’ of the 1970s
(C) ‘Workers of the World Unite’
(D) None of the above
Ans: (B) ‘Garibi Hatao’ of the 1970s
72. Under MGNREGS, guarantee is provided for
(A) every person for the whole year
(B) one person in the family for the whole year
(C) at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work
(D) Every person for 100 days in the family in a year
Ans: (C) at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work
73. The Employment Guarantee Act underlying the MGNREGS is a
(A) Demand-driven scheme
(B) Supply-driven scheme
(C) Both demand as well as supply driven scheme
(D) None of the above
Ans: (A) Demand-driven scheme
74. PM SVANidhi Scheme is a scheme recently in light to
(A) provide concessional credit to farmers
(B) reduce poverty by organizing the rural poor women into Self Help Groups
(C) provide working capital loan to urban street vendors to resume their businesses
(D) provide loan to COVID-affected people
Ans: (C) provide working capital loan to urban street vendors to resume their businesses
75. In order to reduce the impact of the shock caused by the COVID-19 second wave, which one among the following is NOT the stimulus package for COVID-19 reliefs?
(A) Extension of Atmanirbhar Bharat Rozgar Yojana
(B) Credit Guarantee Scheme for Micro Finance institutions
(C) Non-Release of climate resilient special traits varieties
(D) Free food grains under PMGKY (May to November, 2021)
Ans: (C) Non-Release of climate resilient special traits varieties
76. Which of the following is dedicated to empowerment of girl students in India?
(A) Sarva Siksha Abhiyan
(B) Beti Bachao Beti Padhao
(C) UDAN
(D) Mid-day Meals
Ans: (B) Beti Bachao Beti Padhao
77. The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)
(A) is a youth development program for the urban sector
(B) is a placement-linked skill development scheme for rural youth who are poor
(C) is a women empowerment scheme
(D) poverty eradication scheme
Ans: (B) is a placement-linked skill development scheme for rural youth who are poor
SECTORS OF INDIAN ECONOMY
78. Which one among the following sectors was the least impacted by the COVID-19 pandemic-related disruptions?
(A) Agriculture
(B) Industry
(C) Infrastructure
(D) External sector
Ans: (A) Agriculture
79. In India, the main source of national income is
(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) Foreign sector
Ans: (C) Tertiary sector
80. The most striking feature of the structural change in the Indian economy as the major contributor to growth has been
(A) pre-eminence of agricultural sector
(B) pre-eminence of services sector
(C) pre-eminence of industrial sector
(D) pre-eminence of external sector
Ans: (B) pre-eminence of services sector
81. Dr. M.S. Swaminathan is associated with
(A) industry
(B) agriculture
(C) infrastructure
(D) foreign trade
Ans: (B) agriculture
MISCELLANEOUS
82. Find the odd one out:
(A) Income Tax
(B) Capital Gains Tax
(C) Goods and Services Tax (GST)
(D) Securities Transaction Tax (STT)
Ans: (C) Goods and Services Tax (GST)
83. Which one of the following is generally regarded as the true index of economic growth?
(A) An increase in national income at constant prices during a year
(B) A sustained increase in real per capita income
(C) An increase in national income at current prices over time
(D) An increase in national income along with increase in population
Ans: (B) A sustained increase in real per capita income
84. The Union Government has accepted the recommendations made by the Fifteenth Finance Commission (XV-FC) relating to grants-in-aid to the States amounting to
(A) Rs. 2,00,000 crore
(B) Rs. 2,33,233 crore
(C) Rs. 2,50,000 crore
(D) Rs. 3,00,000 crore
Ans: (B) Rs. 2,33,233 crore
85. During inflation
(A) creditors are losers and borrowers are gainers
(B) creditors are gainers and borrowers are losers
(C) Both are losers
(D) Both are gainers
Ans: (A) creditors are losers and borrowers are gainers
86. “The Third Pillar: How Markets and the State Leave the Community Behind” – the book was written by
(A) Raja Chelliah
(B) Raghuram G. Rajan
(C) Amartya Sen
(D) Urjit Patel
Ans: (B) Raghuram G. Rajan
87. Rate of interest rate is being reduced in India
(A) to reduce the burden of public debt
(B) to create easy credit facilities
(C) to align the interest rate structure with world interest rates
(D) to control the inside trading of share
Ans: (B) to create easy credit facilities
88. Sukhomoy Chakravarty Committee is famous for
(A) Agricultural reform
(B) Trade reform
(C) Tax system
(D) Reforms of the monetary system
Ans: (D) Reforms of the monetary system
89. In the Indian context, which one of the following pairs is NOT correctly matched?
(A) Tax Evasion : Parallel economy
(B) High-Powered money : RBI
(C) Female work participation rate : Disinvestment
(D) Liberalization : 1991 Economic Policy
Ans: (C) Female work participation rate : Disinvestment
90. Which of the following pairs is NOT correctly matched?
(A) Rangarajan : Balance of Payments Committee
(B) Kelkar : Tax Reforms Committee
(C) Tarapore : Capital Account Convertibility Committee
(D) Chakravarty : Power Sector Reforms Committee
Ans: (D) Chakravarty : Power Sector Reforms Committee
91. Against the backdrop of Disinvestment Policy of the Government of India, New Public Sector Enterprise (PSE) Policy for Atmanirbhar Bharat was notified on
(A) 5th January, 2021
(B) 4th February, 2021
(C) 5th March, 2022
(D) 10th March, 2022
Ans: (B) 4th February, 2021
92. The system of Panchayati Raj involves
(A) Village, State and Union levels
(B) Village, District and State levels
(C) Village and State levels
(D) Village, Block and District levels
Ans: (D) Village, Block and District levels
93. Guidotti Rule is associated with
(A) reserve management
(B) exchange rate management
(C) inflation management
(D) stagflation management
Ans: (A) reserve management
94. Stagflation refers to a situation which is characterized by
(A) deflation and high unemployment
(B) inflation and rising employment
(C) inflation and rising unemployment
(D) stagnant employment and deflation
Ans: (C) inflation and rising unemployment
95. When power is taken away from state governments and is given to local government, it is called
(A) Decentralization
(B) Centralization
(C) Panchayat Samiti
(D) Federalism
Ans: (A) Decentralization
96. What is the third tier of government known as?
(A) Village Panchayats
(B) State Government
(C) Local self-government
(D) Zilla Parishad
Ans: (C) Local self-government
97. Consider the following statements regarding Bharatmala Programme:
(A) It includes development of State Road along coastal areas
(B) It includes backward areas, religious, Tourist Places Connectivity Programme
(C) It includes Setubharatam Pariyojana which is for the construction of about 1500 major bridges
(D) (B) and (C) only
Ans: (D) (B) and (C) only
98. The year 2015 witnessed one landmark international event: The Millennium Development Goals were replaced by the
(A) Sustainable Development Goals
(B) attaining goals of regional balance and income equality
(C) attaining goals of removing global poverty and unemployment
(D) attaining goals of Paris Convention, 2015
Ans: (A) Sustainable Development Goals
99. The practice of using fiscal and monetary policy to stabilize the economy is known as
(A) Laissez-Faire economics
(B) Fine tuning of demand
(C) Supply side economics
(D) Monetarism
Ans: (B) Fine tuning of demand
100. Mutual funds are regulated in India by which among the following?
(A) RBI
(B) SEBI
(C) Stock exchanges
(D) RBI and SEBI both
Ans: (B) SEBI