Q.1) Fiscal Consolidation is one of the objectives of India’s economic policy. Which of the following would help in fiscal consolidation?
1. Increasing taxes
2. Getting more loans
3. Reducing subsidies
Choose the correct answer using the codes given below:
a) 1 and 2 only
b) 1 and 3 only
c) 1 only
d) 1, 2 and 3
Q.2) The Fiscal Responsibility and Budget Management Act aimed for
1. Eliminating revenue deficit and fiscal deficit
2. Giving flexibility to RBI for inflation management
Which of the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
c) Neither 1 nor 2
Q.3) Consider the following statements regarding Index of Industrial Production (IIP):
1. It is released monthly by Central Statistical Organisation(CSO)
2. It shows the volume of Industrial activity
Which of the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Q.4) Gross Capital Formation will increase if :
1. Gross domestic savings increase
2. Gross domestic consumption increases
3. GDP increases
Choose the correct answer using the codes given below:
a) 1 and 2 only
b) Either 1 or 2
c) 3 only
d) None of the above
Q.5) The WTO follows the method of “Self Selection”. This means
1. Member countries decide to which agreement they want to be a party
2. Member countries decide the rate of tariff and tariff reduction
3. Member countries decide whether they want to be in developed or developing category
Which of the above statements is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 1 only
d) 3 only
Q.6) World Economic Outlook is a report published by
a) World Bank
b) IMF
c) OECD
d) None of the above
Q.7) How does National Rural Livelihood Mission seek to improve livelihood options of rural poor?
1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
2. By strengthening ‘self-help’ groups and providing skill development
3. By supplying seeds, fertilizers, diesel pump sets and micro irrigation equipment free of cost to farmers
Select the correct answer by using the codes given below:
a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 3 only
Q.8) Which of the following is/are treated as artificial currency?
a) ADR
b) GDR
c) SDR
d) Both ADR and SDR
Q.9) Consider the following actions by the government:
1. Cutting the tax rates
2. Increasing government spending
3. Abolishing the subsidies
In the context of an economic recession, which of the above actions can be considered a part of the ‘fiscal stimulus’ package?
a) 1 and 2 only
b) 2 only
c) 2 and 3 only
d) 1, 2 and 3
Q.10) Consider the following:
1. Fringe Benefit Tax
2. Securities Transaction Tax
3. Interest Tax
Which of the above taxes is/are indirect taxes?
a) 1 only
b) 1 and 2 only
c) 1, 2 and 3
d) None of the above
Q1) Consider the following statements
- When economy grows, market forces increase inequality at first
- When economy grows, market forces ultimately decrease inequality
Which of the below curves represent the above hypothesis?
a) Phillips Curve
b) Kuznets Curve
c) Bell Curve
d) Lorenz Inequality Curve
Q.2) What is the meaning of ‘take off stage’ in an economy?
a) hyper growth rate in an economy
b) economic growth takes place automatically
c) economy is de-linked from primary sector and growth is occurring in secondary sector
d) none of the above
Q.3) The price of any currency in international market is decided by the
1. World Bank
2. Demand for goods/services provided by the country concerned
3. Stability of the government of the concerned country
4. Economic potential of the country in question
Select the correct answer using the codes given below.
a) 2 and 3 only
b) 3 and 4 only
c) 1 and 4 only
d) 1, 2, 3 and 4
Q.4) The function of the Reserve Bank of India are:
1. Issuing all notes and coins
2. Distributing all notes and coins
3. Formulating monetary policy
4. Acting as agent of Government in respect of India’s membership of the IMF
Select the correct answer using the codes given below.
a) 1, 3 and 4
b) 2 and 3
c) 2, 3 and 4
d) 1, 2, 3 and 4
Q.5) Regional rural banks:
1. Have limited area of operation
2. Have free access to liberal refinance facilities from NABARD
3. Are required to lend only to weaker sections
Select the correct answer using the codes given below.
a) 1 and 3 only
b) 2 and 3 only
c) 1 and 2 only
d) 1, 2 and 3
Q.6) The per capita income has been low in India because:
a) of population growth.
b) of inflation reducing the purchasing power of people.
c) of insufficient increase in total income.
d) of regional imbalances
Q.7) Consider the following statements
1. Inflation in every form is bad for the economic growth of a country.
2. Right monetary policy by the Central Bank control all inflation.
Select the Incorrect statements using the codes given below.
a) 1 only
b) 2 only
c) Both 1 & 2
d) Neither 1 nor 2
Q.8) Which of the following would be considered as tools of economic stimulus?
1. Increasing taxes so that government has more money to spend
2. Quantitative Easing
3. Decreasing Interest Rates
Select the correct statements using the codes given below:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3
Q.1) The National Food Security Mission (NFSM) aims to enhance the production of
1. Rice
2. Wheat
3. Fruits
4. Vegetables
5. Pulses
6. Coarse cereals
Select the correct answer using the codes given below.
a) 1, 2, 3 and 4 only
b) 1 ,2 and 5 only
c) 1, 2 ,3 and 5 only
d) 1 ,2, 5 and 6 only
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Q.2) Which of the following schemes has an impact on women empowerment?
1. ICDS
2. ASIDE
3. Swadhar
4. Ujjawala
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1,3 and 4 only
c) 2,3 and 4 only
d) 1,2, 3 and 4
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Q.3) Bringing Green Revolution to eastern India is a sub scheme of
a) National Mission on Agriculture Extension and Technology
b) National Mission for sustainable agriculture
c) Rashtriya Krishi Vikas Yojana
d) it is not a subscheme
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Q.4) With reference to Special Economic Zone (SEZ), consider the following statements :
1. SEZs have full freedom for subcontracting.
2. They are exempted from routine examination by custom authorities.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
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Q.5) Consider the following statements about International Finance Corporation:
1. It is known as the private arm of the world bank.
2. It lends money to private sector companies of all countries.
Which of the statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
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Q.6) Inclusive growth is an important objective of the development process. In this context, which of the following would amount to inclusive growth?
1. Poverty reduction.
2. Disinvestment.
3. Good governance.
4. Skill building.
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1 3 and 4 only
c) 2,3 and 4 only
d) 1,2, and 4 only
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Q.7) India maintains buffer stocks of food grains. The buffer stocks helps in
1. Providing food security
2. Incentivizing farmers
3. Stabilizing prices
4. Running PDS
Select the correct answer using the codes given below.
a) 1, 2 and 3 only
b) 1, 3 and 4 only
c) 2, 3 and 4 only
d) 1, 2 and 4 only
