Economics MCQ PDF
Economics MCQ PDF
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GK MCQ : Economics
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(a) Income tax (b) Customs duty (c) Professional tax (d) Excise duty
16. Tire supply of agricultural products is generally
(a) elastic (b) inelastic (c) perfectly elastic (d) perfectly inelastic
17. With which form of economy is the term ‘Laissez-faire’ associated?
(a) Capitalist economy (b) Socialist economy (c) Mixed economy (d) Command economy
18. When the total product rises at an increasing rate, the
(a) marginal product is zero (b) marginal product is rising
(c) marginal product is falling (d) marginal product remains constant
19. The definition of ‘small-scale industry’ in India is based on
(a) sales by the unit (b) Investment in machines and equipments (c) market coverage (d) export capacity
20. Economies of Scale means reduction in
(a) unit cost of production (b) unit cost of distribution (c) total cost of production (d) total cost of
distribution
21. Free Trade refers to
(a) free movement of goods from one country to another (b) movement of goods free of cost
(c) unrestricted exchange of goods and service (d) trade free of duty
22. Imputed gross rent of owner occupied buildings is a part of
(a) capital formation (b) final consumption (c) intermediate consumption (d) consumer durable
23. Purchasing Power Parity theory is related with
(a) Interest rate (b) Bank rate (c) Wage rate (d) Exchange rate
24. Excise duty on a commodity is payable with reference to its
(a) production (b) production and sale (c) production and transportation (d) production, transportation and sale
25. Knowledge, technical skill, education etc. in economics, are regarded as
(a) social-overhead capital (b) human capital (c) tangible physical capital (d) working capital
26. Which is the most essential function of an entrepreneur ?
(a) Supervision (b) Management (c) Marketing (d) Risk bearing
27. Bank Rate refers to the Interest rate at which
(a) Commercial banks receive deposits from the public (b) Central bank gives loans to Commercial banks
(c) Government loans are floated (d) Commercial banks grant loans to their customers
28. All of the goods which are scarce and limited in supply are called
(a) Luxury goods (b) Expensive goods (c) Capital goods (d) Economic goods
29. Which of the following is a better measurement of Economic Development?
(a) GDP (b) Disposable income (c) NNP (d) Per capita income
30. Foreign currency which has a tendency of quick migration is called
(a) Scarce currency (b) Soft currency (c) Gold currency (d) Hot currency
31. In India, disguised unemployment is generally observed in
(a) the Agricultural sector (b) the Factory sector (c) the Service sector (d) All these sectors
32. The demand curve for a Giffen good is
(a) upward rising (b) downward falling (c) parallel to the quantity axis (d) parallel to the price axis
33. "Supply creates its own demand" - Who said this ?
(a) J. B. Say (b) J.S. Mill (c) J. M. Keynes (d) Senior
34. Engel’s Law states the relationship between
(a) quantity demanded and price of a commodity (b) quantity demanded and price of substitutes
(c) quantity demanded and tastes of the consumers (d) quantity demanded and income of the consumers
35. Which one of the following items is not included in the current account of India's Balance of Payments ?
(a) Short-term commercial borrowings (b) Non-monetary gold movements
(c) Investment income (d) Transfer payments
36. Capital : Output Ratio of a measures
(a) its per unit cost of production (b) the amount of capital invested per unit of output
(c) the ratio of capital depreciation to quantity of output (d) the ratio of working capital employed to quantity of output
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37. ‘The national income consists of a collection of goods and services reduced to common basis by being measured in
terms of money.”— Who says this?
(a) Samuelson (b) Kuznets (c) Hicks (d) Pigou
38. What does ECS in banking transactions stand for?
(a) Excess Credit Supervisor (b) Extra Cash Status
(c) Exchange Clearing Standard (d) Electronic Clearing Service
39. Which of the following is the classification of Industries on the basis of raw-materials?
(a) Small Scale -Large scale (b) Primary and Secondary
(c) Basic and Consumer (d) Agro-based and Mineral based
40. Who propounded the 'market law?
(a) Adam Smith (b) J.B. Say (c) T.R. Malthus (d) David Recardo
41. The practice of selling goods in a foreign country at a price below their domestic selling price is called
(a) 'diplomacy' (b) 'discrimination' (c) ‘dumping’ (d) ‘double pricing
42. An expenditure that has been made and cannot be recovered is called
(a) Variable cost (b) Opportunity cost (c) Sunk cost (d) Operational cost
43. Bank deposits that can be withdrawn without notice are called
(a) account payee deposits (b) fixed deposits (c) variable deposits (d) demand deposits
44. New capital issue is placed in
(a) Secondary market (b) Grey market (c) Primary market (d) Black market
45. Prime cost is equal to
(a) Variable cost plus administrative cost (b) Variable cost plus fixed costs
(c) Variable cost only (d) Fixed cost only
46. If the tax rate increases with the higher level of income, it shall be called
(a) Proportional tax (b) Progressive tax (c) Lump sum tax (d) Regressive tax
47. Capital formation in an economy depends on
(a) Total Income (b) Total demand (c) Total savings (d) Total production
48. Industrial exit policy means
(a) forcing foreign companies to leave India (b) forcing business units to move out of congested localities
(c) allowing manufacturers to shift their line of products (d) allowing business units to dose down
49. Which of the following does not determine supply of labour?
(a) Size and age-structure of population (b) Nature of work
(c) Marginal productivity of labour (d) Work-leisure ratio
50. if the price of tea fails, demand for coffee will
(a) increase (b) decrease (c) remain same (d) None of these
51. Seawater, fresh air, etc., are regarded in Economics as
(a) Giffen goods (b) inferior goods (c) free goods (d) normal goods
52. The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be
produced and in what quantities is known as
(a) Consumer Protection (b) Consumer's Decision (c) Consumer Preference (d) Consumer’s Sovereignty
53. According to modem thinking, the law of diminishing returns applies to
(a) agriculture (b) industry (c) mining (d) all fields of production
54. In Economics, production means
(a) manufacturing (b) making (c) creating utility (d) farming
55. Inflation occurs when aggregate supply is
(a) more than aggregate demand (b) less than aggregate demand
(c) equal to aggregate demand (d) None of these
56. ‘Golden Handshake Scheme’ is associated with
(a) inviting foreign companies (b) private investment in public enterprises
(c) establishing joint enterprises (d) voluntary retirement
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57. When a large number of investors in a country transfer investments elsewhere because of disturbed economic
conditions, it is called
(a) Transfer of Capital (b) Escape of Capital (c) Outflow of Capital (d) Flight of Capital
58. How will a reduction in ‘Bank Rate’ affect the availability of credit ?
(a) Credit will increase (b) Credit will not increase (c) Credit will decrease (d) None of these
59. A mixed economy works primarily through the
(a) market mechanism (b) central allocative machinery
(c) market mechanism regulated by Government policy (d) market mechanism guided by Government participation
and planning
60. ‘Gresham’s Law’ in Economics relates to
(a) supply and demand (b) circulation of currency
(c) consumption of supply (d) distribution of goods and services
61. The ‘Interest Rate Policy’ is a component of
(a) Fiscal Policy (b) Monetary Policy (c) Trade Policy (d) Direct Control
62. What is referred to as 'Depository Services' ?
(a) A new scheme of fixed deposits (b) A method for regulating stock exchanges
(c) An agency for safe-keeping of securities (d) An advisory service to investors
63. The term ‘Green GNP’ emphasises
(a) rapid growth of GNP (b) increase in per capita income (c) economic development (d) sustainable
development
64. The outcome of 'devaluation of currency’ is
(a) increased export and improvement in balance of payment (b) increased export and foreign reserve deficiency
(c) increased import and improvement in balance of payment (d) increased export and import
65. What is Value Added Tax(VAT)?
(a) A simple, transparent, easy to pay tax imposed on consumers
(b) A new initiative taken by the Government to increase the tax-burden of high income groups
(c) A single tax that replaces State taxes like, surcharge, turnover tax, etc.
(d) A new tax to be imposed on the producers of capital goods
66. The difference between visible exports and visible imports is defined as
(a) Balance of trade (b) Balance of payment (c) Balanced terms of trade (d) Gains from trade
67. Given the money wages, if the price level in an economy increases, then the real wages will
(a) increase (b) decrease (c) remain constant (d) become flexible
68. A firm is in equilibrium when its
(a) marginal cost equals the marginal revenue (b) total cost is minimum
(c) total revenue is maximum (d) average revenue and marginal revenue are equal
69. In the law of demand, the statement “Other things remain constant" means
(a) income of consumer should not change (b) price of other goods should not change
(c) taste of consumer should not change (d) All of the above
70. Which organization collects data for the unorganized sector ?
(a) NSSO (b) CSO (c) ASI (d) RBI
71. Scheduled Banks have to be registered with
(a) SEBI (b) RBI (c) Finance Ministry (d) SBI
72. Which of the following is not viewed as national debt ?
(a) Life Insurance Policies (b) Long-term Government Bonds
(c) National Savings Certificates (d) Provident Fund
73. Excise duty on a commodity is payable with reference to its
(a) production (b) production and sale (c) production and transportations (d) production, transportation and sale
74. The data collection for national income estimation is conducted in India by—
(a) The Finance Ministry of the Government of India (b) The RBI
(c) The NSSO (National Sample Survey Organization) (d) None of these
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(a) Gross domestic product (b) National income (c) Gross domestic income (d) Gross national income
95. “Legal Tender Money” refers to:
(a) Cheques (b) Drafts (c) Bill of exchange (d) Currency notes
96. Sellers market denotes a situation where :
(a) commodities are available at competitive rates (b) demand exceeds supply
(c) supply exceeds demand (d) supply and demand are evenly balanced
97. “Dear Money” means
(a) low rate of interest (b) high rate of interest (c) depression (d) inflation
98. Which of the following is not required while computing Gross National Product (GNP) ?
(a) Net foreign investment (b) Private investment
(c) Per capita income of citizens (d) Purchase of goods by government
99. Investment and savings are kept equal through a change in the level of
(a) Consumption (b) Investment (c) Government expenditure (d) Income
100. A commercial bank law creates credit only if it has .
(a) Cash in the vault (b) Excess reserves
(c) Permission of Reserve Bank of India (d) Cooperation of other banks
101. Interest on public debt is part of
(a) Transfer payments by the enterprises (b) Transfer payments by the government
(c) National income (d) Interest payments by households
102. Which of the following can be used for checking inflation temporarily ?
(a) Increase in wages (b) Decrease in money supply (c) Decrease in taxes (d) None of these
103. Operating Surplus arises in the
(a) Government Sector (b) Production for self-consumption (c) Subsistence farming (d) Enterprise Sector
104. Bank rate is the rate of interest:
(a) At which public borrows money from Commercial Banks (b) At which public borrows money from R.B.I.
(c) At which Commercial Banks borrow money from R.B.I. (d) At which Commercial Banks borrow money from the
public
105. A closed economy is one which
(a) Does not trade with other countries (b) Does not possess any means of international transport
(c) Does not have a coatastal line (d) Is not a member of the U.N.O.
106. Deficit financing is an instrument of
(a) monetary policy (b) credit policy (c) fiscal policy (d) tax policy
107. The difference between the GNP and the NNP is equal to the
(a) consumer expenditure on durable goods (b) direct tax revenue
(c) indirect tax revenue (d) capital depreciation
108. In a business, raw materials, components, work in progress and finished goods are jointly regarded as
(a) capital stock (b) inventory (c) investment (d) net worth
109. Investment is equal to
(a) gross total of all types of physical capital assets (b) gross total of all capital assets minus wear and tear
(c) stock of plants, machines and equipments (d) None of these
110. The ratio of a bank's cash holdings to its total deposit liabilities is called the
(a) Variable Reserve Ratio (b) Cash Reserve Ratio (c) Statutory Liquidity Ratio (d) Minimum Reserve Ratio
111. Which amidst the following is not a credit rating agency ?
(a) CRISIL (b) CARE (c) ICRA (d) IFCI
112. Which unit of valuation is known as “Paper gold” ?
(a) Eurodollar (b) Petrodollar (c) SDR (d) GDR
113. Which one of the following taxes is collected and utilized by the State Governments ?
(a), Personal income tax (b) Corporation tax (c) Land revenue (d) Custom duties
114. When marginal utility is zero, the total utility is
(a) Minimum (b) Increasing (c) Maximum (d) Decreasing
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(a) decrease in the internal value of money (b) decrease in the external value of money
(c) decrease in both internal and external value of money (d) the government takes back currency notes of any
denominations
134. Government securities are considered liquid because they are
(a) backed by the Government treasury (b) convertible into other types of saving deposits
(c) quickly and easily marketable (d) stable in value
135. The method of calculating the national income by the product method is otherwise known as :
(a) Income method (b) Value added method (c) Expenditure method (d) Net output method
136. What is “book-building” ?
(a) Preparing the income and expenditure ledgers of a company (book-keeping)
(b) Manipulating the profit and loss statements of a company
(c) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
(d) Publishers' activity
137. The incidence of sales tax falls on
(a) Consumers (b) Wholesale dealers (c) Retail dealers (d) Producers
138. An economy is in equilibrium when
(a) planned consumption exceeds planned saving (b) planned consumption exceeds planned investment
(c) intended investment equals intended investment (d) intended investment exceeds intended savings
139. Which of the following groups suffer the most from inflation?
(a) Debtros (b) Creditors (c) Business class (d) Holders of real assets
140. The existence of a Parallel Economy or Black Money
(a) makes the economy more competitive (b) makes the monetary policies less effective
(c) ensures a better distribution of income and wealth (d) ensures increasing productive investment
141. In equilibrium, a perfectly competitive firm will equate
(a) marginal social cost with marginal social benefit (b) market supply with market demand
(c) marginal profit with marginal cost (d) marginal revenue with marginal cost
142. The Marginal Utility Curve slopes downward from left to right indicating
(a) A direct relationship between marginal utility and the stock of commodity
(b) A constant relationship between marginal utility and the stock of commodity .
(c) A proportionate relationship between marginal utility and the stock of commodity
143. If the price of an inferior good falls, its demand
(a) rises (b) falls (c) remains constant (d) can be any of the above
144. What is referred to as “Depository Services” ?
(a) A new scheme of fixed deposits (b) A method of regulating stock exchanges
(c) An agency for safe-keeping of securities (d) An advisory service to investors
145. Economic rent refers to
(a) Payment made for the use of labour (b) Payment made for the use of capital
(c) Payment made for the use of organization (d) Payment made for the use of land
146. Average Revenue means
(a) the revenue per unit of commodity sold (b) the revenue from all commodities sold
(c) the profit realized from the marginal unit sold (d) the profit realized by sale of all commodities
147. The measure of a worker's real wage is
(a) The change in his productivity over a given time (b) His earnings alter deduction at source
(c) His daily earnings (d) The purchasing power of his earnings
148. When there is one buyer and many sellers then that situation is called
(a) Monopoly (b) Single buyer right (c) Downright (d) Double buyers right
149. The standard of living in a country is represented by its:
(a) poverty ratio (b) per capita income (c) national income (d) unemployment rate
150. Buoyancy of a tax is defined as
(a) percentage increase in tax revenue/percentage increase in tax base
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(c) the concerns of the foreign investors in India with regard to taxation matters
(d) aspects of generation of black money, its transfer abroad and bringing back such money into India’s legitimate
financial system
262. Per capita income is equal to
(a) National Income Total Population of the country (b) National Income + Population
(c) National Income- Population (d) National Income x Population
263. A favourable Balance of Trade of a country implies that
(a) Imports are greater than Exports (b) Exports are greater than Imports
(c) Both Imports and Exports are equal (d) Rising Imports and Falling Exports
264. The value of a commodity expressed in terms of money is known as
(a) Price (b) Utility (c) Value (d) Wealth
265. Reserve. Bank of India was nationalized in
(a) 1948 (b) 1947 (c) 1949 (d) 1950
266. National Social Assistance Programme is aimed at providing
(a) financial support to Scheduled Castes and Scheduled Tribes (b) old age pension to very poor
(c) insurance for the poor (d) All of the above
267. In a Capitalistic Economy, the prices are determined by :
(a) Demand and Supply (b) Government Authorities (c) Buyers in the Market (d) Sellers in the Market
268. Tooth paste is a product sold under :
(a) Monopolistic Competition (b) Perfect Competition (c) Monopoly (d) Duopoly
269. In a period of inflation and price rise the supply of money remains
(a) the same (b) increases (c) decreases (d) increases or decreases proportionately.
270. ‘Personal Income’ equals
(a) The household sector's income (b) Private income minus savings of the corporate sector minus corporation tax
(c) Personal disposable income plus miscellaneous receipts of the Government (d) All of the above
271. What is dual pricing?
(a) Wholesale price and Retail pricing (b) Pricing by agents and Pricing by retailers
(c) Price fixed by Government and Price in open market (d) Daily prices and Weekly prices
272. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for
(a) Coke will decrease (b) 7-Up will decrease (c) Coke and 7-Up will increase (d) Coke and 7-Up will decrease
273. The demand curve shows that price and quantity demanded are
(a) directly related only (b) directly proportional and also directly related
(c) inversely proportional and also inversely related (d) inversely related only
274. As output increases, average fixed cost
(a) increases (b) falls (c) remains constant (d) first increases, then falls
275. Which of the following is a part of tertiary sector?
(a) Power and transportation (b) Animal Husbandly (c) Cotton manufacturing (d) Cultivation of crops
276. Fixed cost is known as
(a) Special cost (b) Direct cost (c) Prime cost (d) Overhead cost
277. What was the objective of Command Area Development Programme?
(a) To ensure that land is given to the tillers (b) To ensure better utilization of irrigation potential
(c) To develop the areas under the command of Army (d) Poverty alleviation in selected areas
278. A mixed economy refers to an economic system where
(a) The economy functions with foreign collaboration
(b) Only the private sector operates under government control
(c) Both the government and the private sectors operate sectors operate simultaneously'
(d) No foreign investment is allowed
279. The demand for which of the Following commodity will not rise in spite of a fall in its price?
(a) Television (b) Refrigerator (c) Salt (d) Meat
280. In the long-run equilibrium, a competitive firm earns
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(a) Super-normal profit (b) Profits equal to other firms (c) Normal profit (d) No profit
281, Production function relates
(a) Cost to output (b) Cost to input (c) Wages to profit (d) Inputs to output
282. According to the classical system, saving is a function of
(a) Income (b) The interest rate (c) The real wage (d) The Price level
283. A Black Market is a situation Where in
(a) Goods are loaded by the producers (b) Goods are sold secretly
(c) Goods are sold at prices higher than what is fixed by the Government
(d) Goods are made available (sold) only after there is a rise in prices
284. Distribution of food rains operates under a two tier system with the introduction of
(a) Targetted Public Distribution System (b) The Consumers Cooperatives
(c) The Cooperative Marketing Societies (d) Tire Service Cooperatives
285. If total utility is maximum at a point, then marginal utility is
(a) positive (b) zero (c) negative (d) positive but decreasing
286. Which one of the following items is included in the national income account?
(a) Services of housewives (b) Income of smugglers (c) Services of Sadhus (d) Services of night-watchmen
287. The situation in which total revenue is equal to total cost, is known as
(I) monopolistic competition (b) equilibrium level of output (c) break-even point (d) perfect competition
288. The relationship between price of a commodity and the demand for it
(a) is a positive relationship (b) is an inverse relationship
(c) They are independent of each other (d) They do not have any relationship
289. An increase in national income because of an increase in price is called
(a) an increase in national income in real terms (b) an increase in national income at constant prices
(c) an increase in money national income (d) an increase in national income at base year prices
290. Commercialization of agriculture implies
(a) cultivation of timbers (b) plantation (c) production of crops for sale (d) production of crops like wheat or rice
291. Payment of water charges by the fanners to the government represents
(a) intermediate consumption (b) final consumption (c) fixed investment (d) inventory investment
292. In accounting terms, what constitutes the ‘closings tock’?
(a) Net Investment (b) Gross Investment-Capital Losses
(c) Opening Stock-Capital Losses (d) Opening Stock + Net Investment -Capital Losses
293. ‘Quota’ is
(a) tax levied on imports (b) imports of capital goods
(c) limit on the quantity of imports (d) limit on the quantity of exports
294. The ‘Canons of Taxation’ were propounded by
(a) Edwin Canon (b) Adam Smith (c) J.M. Keynes (d) Dalton
295. 'PROTECTION' means
(a) Restrictions imposed on import trade (b) Protection to home industries
(c) No free exchange of goods and services between two countries (d) All of the above
296. National income accounting is the study of the income and expenditure of the entire
(a) family (b) state (c) economy (d) organization
297. The problem of Economics arises from
(a) Plenty (b) Scarcity of goods (c) More wants and less goods (d) All of the above
298. Agricultural income tax is a source of revenue to
(a) Central Government (b) State Government (c) Local Administration (d) Centre and State
Governments
299. Beyond a certain point deficit financing will certainly lead to
(a) inflation (b) deflation (c) recession (d) economic stagnation
300. In public budgets, zero-base budgeting was first introduced in
(a) USA (b) UK (c) France (d) Sweden
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(c) by adding normal profit to the marginal cost (d) by the total cost of production
380. Economic growth is dependent mainly on
(a) level of consumption (b) price stability (c) level of investment (d) population growth
381. Interest paid by the government on the loans raised is called
(a) Debt Servicing (b) Deficit Financing (c) Discounted Budgeting (d) Bridge-loan
382. The 'sunrise industries' Imply
(a) petrochemicals and electronics industry (b) sunflower oil industry
(c) computer industry (d) chemical industry
383. Regional Rural Banks are sponsored by
(a) Nationalized Commercial Bank (b) Reserve Bank of India
(c) State Bank of India (d) Government of India
384. What is selling cost?
(a) Cost incurred on transportation of commodities to market
(b) Cost incurred on promoting the sale of the product
(c) Cost incurred on commission and salaries personnel
(d) Cost incurred on advertisement
385. Countries that depend mainly on the export of primary products for their income, are prone to
(a) inflation (b) economic instability (c) increasing unemployment (d) stable economic growth
386. A Trade Policy consists of
(a) Export-Import Policy (b) Licensing Policy (c) Foreign Exchange Policy (d) Balance of Payment Policy
387, What is needed for creating demand?
(a) Production (b) Price (c) Income (d) Import
388. Who said, "Economics is the Science of Wealth" ?
(a) Robbins (b) J.S. Mill (c) Adam Smith (d) ' Keynes
389. A fall in demand or rise in supply of a commodity-
(a) Increases the price of that commodity (b) decreases the price of that commodity
(c) neutralizes the changes it the price (d) determines the price elasticity
390. The relationship between the value of money and the price level in an economy is
(a) Direct (b) Inverse (c) Proportional (d) Stable
391. Depreciation is equal to—
(a) Gross national product —Net national product (b) Net national product —Gross national product
(c) Gross national product —Personal income (d) Personal income— Personal taxes
392, In an economy, the sectors are classified into public and private on the basis of
(a) employment conditions (b) nature of economic activities
(c) ownership of enterprises (d) use of raw materials
393. Stagflation is a situation of
(a) stagnation and deflation (b) stagnation and recession (c) stagnation and inflation (d) stagnation and
recovery
394. National Income Estimates in India are prepared by:
(a) National Development Council (b) National Productivity Council
(c) National Income Committee (d) Central Statistical Organization
395. The best Index of Economic Development is provided by:
(a) Growth in Per capita Real Income from year to year. (b) Growth in National Income at Current Prices.
(c) Growth in savings ratio. (d) Improvement in the Balance of Payments Position.
396. Consumer's sovereignty means:
(a) consumers are free to spend their income as they like. (b) consumers have the power to manage the economy.
(c) consumer’s expenditures influence the allocation of resources. (d) consumer goods are free from government
control.
397. National Income include:
(a) Financial help to earthquake victims (b) Pocket money of a child
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464. Which one of the following is not included while estimating national income through income method?
(a) Rent (b) Mixed incomes (c) Pension (d) Undistributed profits
465. Golden Handshake Scheme is associated with
(a) Inviting foreign companies (b) Private investment in public enterprises
(c) Establishing joint enterprises (d) Voluntary retirement
466. Which of the following is an inverted 'U' shaped curve ?
(a) Average cost (b) Marginal cost (c) Total cost (d) Fixed cost
467. Per capita income =
Total Population National Income
(a) (b) (c) (d)
National Income Total Population
468. In which market structure is the demand curve of the market represented by the demand curve of the firm ?
(a) Monopoly (b) Oligopoly (c) Duopoly (d) Perfect Competition
469. Which of the following would not constitute an economic activity in Economics?
(a) A teacher teaching students in his college (b) A teacher teaching students in a coaching institute
(c) A teacher teaching his own daughter at home (d) A teacher teaching students Under Sarva Shiksha Abbiyan Scheme
470. Which of the following is not a fixed cost ?
(a) Salaries of administrative staff (b) Rent of factory bidding (c) Property taxes (d) Electricity charges
471. ‘Mixed economy' refers to
(a) the co-existence of heavy, small scale and cottage industries
(b) the promotion of agriculture As well as cottage industries
(c) the co-existence of rich as well as poor
(d) the co-existence of public as well as private sector
472. Consumption function expresses the relationship between consumption and '
(a) savings (b) income (c) investment (d) price
473. Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a
(a) change in the price of the goods (b) change in the price of substitutes
(c) change in the price of the complements (d) change in the price of joint products
474. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology" depicted on it?
(a) Rs. 500 (b) Rs. 100 (c) Rs. 50 (d) Rs. 5
475. What is the extent of change of the literacy rate envisaged by the end of the Xth Five Year Plan ?
(a) From 65% to 75% (b) From 60% to 70% (c) From 50% to 55% (d) From 45% to 50%
476. A Scheduled Bank is one which is included in the
(a) II Schedule of Banking Regulation Act (b) II Schedule of Constitution
(c) II Schedule of Reserve Bank of India Act (d) None of the above
477. National income refers to
(a) money value of goods and services produced in a country during a year.
(b) money value of stocks and shares of a country during a year.
(c) money value of capital goods produced by a country during a year.
(d) money value of consumer goods produced by a country during a year.
478. The proceeds of income tax go to
(a) Central Government (b) State Government (c) Centre and States (d) Corporation authorities
479. To achieve high rates of growth of national output, the economy has to
(a) reduce the rate of growth of population (b) borrow foreign capital
(c) step up the rate of savings (d) increase the rate of investment and reduce the capital output ratio
480. The main source of revenue for a State Government in India is
(a) Sales tax (b) Excise duty (c) Income tax (d) Property tax
481. What is the animal on the insignia of the RBI ?
(a) Lion (b) Tiger (c) Panther (d) Elephant
482. For whom was the first departmental life insurance started?
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(a) Activities of SEBI registered brokers (b) Selling of currency by the RBI
(c) Selling of gilt-edged securities by the Government (d) Sale of shares by FIIs
503. Why did the Government ban the import of ‘Terminator seeds"?
(a) To contain a virus which can destroy local crops
(b) These seeds are injurious to human and animal health
(c) These seeds contain genetically engineered properties to prevent further multiplication
(d) These seeds multiply at very slow rates
504. How does the consumer benefit with VAT?
(a) It removes tax on tax and thus reduces prise-rise (b) Reduces the cost of production
(c) With the abolition of the sales tax
(d) Due to the exemption of small businesses from the tax within certain limits prescribed by the State
505. In estimating the budgetary deficit, the official approach in India is to exclude
(a) long term borrowing from the market (b) borrowings from the . Reserve Bank of India
(c) drawing down of the cash balance (d) borrowing from Reserve Bank in the form of ways and means advance
506. The best way, a bank can avoid loss is to
(a) lend only to individuals known to the bank (b) accept sound collateral
(c) give only short-term loans (d) lend only to bank's old customers
507. Which amidst the following rural banks has been named after a river ?
(a) Prathama Bank (b) Varada Grameen Bank
(c) Thar Anchalik Grameen Bank (d) Aravali Kshetriya Grameen Banks
508. Which of the following is an open market operation of the RBI ?
(a) Buying and selling of shares (b) Trading in securities
(c) Transactions in gold (d) Lending to commercial banks
509. During which Five-Year Plan did India lay down the objective of the need to ensure environmental sustainability of
the development strategy ?
(a) 6th Five Year Plan (b) 7th Five Year Plan (c) 8th Five Year Plan (d) 9th Five Year Plan
510. Which of the following is not an objective of the monetary policy of the RBI?
(a) Boost economic development (b) Direct credit in desirable direction
(c) Control inflationary pressure (d) Ensure social justice
511. Which Bank was merged in the Punjab National Bank in February, 2003?
(a) Catholic Syrian Bank Ltd. (b) Nainital Bank Ltd. (c) Nedungadi Bank Ltd. (d) Madurai Bank Ltd.
512. State which amongst the following is not true about VAT ?
(a) All States have uniform VAT for the same product
(b) State have discretion to fix the rate of tax within the four rates prescribed
(c) It will promote production efficiency of investments
(d) It will make our exports more competitive
513. Reserve Bank of India keeps some securities against notes. These securities are always less in comparison to
(a) Gold and foreign bonds (b) Gold (c) Government bonds (d) Gold, foreign bonds and Government bonds.
514. Merchant Banking is an institution which provides finances to :
(a) domestic whole sale trade (b) international trade among countries
(c) domestic retail trade among (d) international aid agencies.
515. The system of issuing and monitoring of money in the market is known as-
(a) Proportional reserve ratio (b) Fixed reserve ratio (c) Minimum reserve ratio (d) Floating reserve ratio
516. Which among the following Indian State does not transacts its business through Reserve Bank of India ?
(a) Sikkim (b) Jammu and Kashmir (c) Arunachal Pradesh (d) Mizoram
517. Which among the following subjects is not an aim of the monetary policy of the Reserve Bank of India?
(a) Giving impetus to economic development (b) Direct credit with objective criteria
(c) To control pressure of inflation (d) To ensure social justice.
518. The Government of India made it obligatory on the part of all commercial banks that they should give some cash
amount while purchasing Government bonds. What would you call this?
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(a) Statutory Liquidity Ratio (b) Cash Reserve Ratio (c) Minimum Reserve Ratio (d) Floating Reserve Ratio
519. The receipts of which of the following taxes/duties are not shared with the States?
(a) Tax on income except agriculture (b) Corporation tax (c) Surcharge on income tax (d) Capital gain tax
520. The national income of a country is-
(a) Government annual revenue (b) Total productive income
(c) Surplus of the public sector enterprise (d) Export— (Loan) Import
521. Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issue is required to
maintain assets worth not less than
(a) 115 crores of rupees (b) 85 crores of rupees
(c) 200 crores of rupees (d) 210 crores of rupees
522. Which amidst the following taxes collected by the Union is NOT mandated to be assigned to the States?
(a) Terminal taxes on goods or passengers carried by railway, sea or air. (b) Taxes on railway fares and freights.
(c) Taxes on consignment of goods. (d) Service Tax.
523. One of the objectives of Indus trial Licensing Policy in India was to ensure :
(a) creation of adequate employment opportunities. (b) free flow of foreign capital in Indian industries.
(c) use-of modem technology. (d) balanced industrial development across regions.
524. Currency notes of Rs. 2 denomination and above are liabilities of :
(a) Government of India (b) Reserve Bank of India (c) State Bank of India (d) All of the above
525. The type of note issue system followed in India is :
(a) Maximum fiduciary system (b) Minimum reserve system
(c) Proportional fiduciary system (d) Fixed fiduciary system
526. Inflation is caused by :
(a) Increase in supply of goods (b) Increase in cash with the government
(c) Decrease in money supply (d) Increase in money supply
527. A firm sells new shares worth Rs. 1000 directly to individuals. This trans-action will cause.
(a) Gross National product to rise by Rs. 1000 (b) Gross Domestic Product to rise by Rs. 1000
(c) National Income to rise by Rs. 1000 (d) No impact on Gross National Product
528. What is the revised upper limit for foreign direct investment in telecom service companies ?
(a) 49 per cent (b) 51 per cent (c) 66 per cent (d) 74 per cent
529. Which from the following is not true when the interest rate in the economy goes up ?
(a) Savings increases (b) Lending decreases (c) Cost of production increases (d) Return on capital increases
530. Open market operation refers to
(a) borrowing by commercial banks from the R.B.I. (b) lending by scheduled banks to non-scheduled banks
(c) purchase and sale of Government securities by the R.B.I. (d) purchase and sale of bonds and securities by the
Central Govt.
531. Which is the first Public Sector Corporation of independent India?
(a) Hindustan Steel Corporation, Bhilai (b) State Trading Corporation of India
(c) Food Corporation of India (d) Damodar Valley Corporation
532. Which one of the following is not considered as an infrastructure investment ? Investment in a
(a) Power project (b) Railways project (c) Telecommunication (d) Automobile industry
533. Which one of the following currencies has the highest value in terms of rupee ?
(a) Pound (b) Dollar (c) Euro (d) Saudi Rial
534. What is known as the open market operation of the RBI ?
(a) Buying and selling of stocks (b) Auctioning of foreign exchange (c) Trading in securities (d) Transactions in gold
535. Which of the following functions as a controller of credit in India ?
(a) The Central Government (b) The Reserve Bank of India (c) The State Bank of India (d) The Planning Commission
536. When did the Rupee become a freely convertible currency on current account, in India ?
(a) 2000 (b) 2001 (c) 1994 (d) 1999
537. Antyodaya Programme is associated with
(a) Liberation of bonded labour (b) Bringing up cultural revolution in India
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(c) Demands of textile labourers (d) Upliftment of the poorest of the poor
538. The Government resorts to devaluation of its currency in order to promote
(a) national income (b) international goodwill (c) exports (d) savings
539. The basic regulatory authority for mutual funds and stock markets lies with the
(a) Government of India (b) Reserve Bank of India (c) SEBI (d) Stock Exchange
540. The Employment Guarantee Scheme, which is now an important component of the NCMP, was first introduced in
which State ?
(a) Kerala (b) Maharashtra (c) Andhra Pradesh (d) West Bangal
541. Identify the Navratna Company in the following
(a) ICICI Bank (b) Infosys (c) HPCL Ltd (d) Air India
542. Which car has been the best seller in India in 2004-2005 ?
(a) Maruti800 (b) Maruti Suzuki Alto (c) Tata lndica (d) Santro Xing
543. Consider the following statements:
a. NTPC has diversified to hydropower sector
b. Power Grid Corporation has diversified into telecom sector. Which of the statements below is correct ?
(a) Only a (b) Only b (c) Both of a and b (d) None of a and b
544. Which Indian company secured the highest export revenue from IT software and services during the past two years
?
(a) TCS (b) Infosys Technologies Ltd. (c) Wipro Technologies Ltd (d) Satyam Computer Services Ltd.
545. Match the Indian and foreign companies as joint ventures in the field of life insurance : Indian Company
A. Tata B. ICICI Ltd.
C. Bajaj Ltd. D. HDFC Bank Foreign Company
1. AIG 2. Standard Life Insurance 3. Prudential Life Insurance 4. Allianz
Codes:
A B C D
(a) 1 3 4 2
(b) 2 4 3 1
(c) 4 1 2 3
(d) 3 4 1 2
546. Which of the following is apex bank for industrial loans ?
(a) RBI (b) NABARD (c) ICICI (d) IDBI
547. What is the main function of Central Statistical Organization (CSO) ?
(a) Determination of money supply (b) Collection of estimates of national income
(c) Collection of detail data regarding employment (d) Price determination
548. Planning and control are so related that
(a) Planning initiates control (b) Control initiates planning
(c) Both are equivalent (d) Both go on simultaneously in cycle
549. What does National Income mean?
(a) The total value of all goods and services produced in the country during a period of one year
(b) The total value of all stocks and shares in the country during a period of one year
(c) The total value of all capital goods produced in the country during a period of one year
(d) The total value of all consumer goods produced in the country during a period of one year
550. Which of the following taxes is levied by the Union and appropriated and planned by the states ?
(a) Service tax (b) Stamp duty (c) Property tax (d) Passenger and freight duty
551. Which of the following taxes is not shared between the Union and the states ?
(a) Income tax (b) Excise duty (c) Corporation tax (d) Sales tax
552. Which of the following is the most important domestic source of planned finance ?
(a) Balance of current revenue (b) Profit from public sector units
(c) Domestic private savings (d) Additional taxation
553. Consider the following reasons of continuous decline in average land-holding size in India : .
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(a) Bank Rate Policy (b) Open Market Operations (c) Cash Reserve Ratio (d) Moral Suasion
577. Which one of the following is not an objective of Fiscal Policy in India?
(a) Full Employment (b) Price Stability
(c) Equitable Distribution of Wealth and Incomes (d) Regulation of International Trade
578. While computing national income estimates, which of the following is required to be observed?
(a) The value of exports to be added and the value of imports to be subtracted
(b) The value of exports to be subtracted and the value of imports to be added
(c) The value of both exports and imports to be added
(d) The value of both exports and imports to be subtracted
579. The fish catch by Indian fishermen in the international waters are part of the GDP of
(a) Sri Lanka (b) India and Sri Lanka (c) India (d) India and Indonesia
580. The latest volume of food grains to be given per family as determined under. ‘Annapurna Scheme' is —
(a) 35 kg (b) 20 kg (c) 10 kg (d) 40 kg
581. The Accounting Year of Reserve Bank of India runs from ;
(a) April to March (b) July to June (c) January to December (d) August to July
582. Who estimated the National Income for the first time in India?
(a) Mahalanobis (b) Dadabhai Naoroji (c) V.K.R.V. Rao (d) Sardar Patel
583. Which of the following States has the highest number of slums as per the data recently released by the Ministry of
Housing and ' Urban Poverty Alleviation?
(a) Uttar Pradesh (b) West Bengal (c) Maharashtra (d) Andhra Pradesh
584. The RBI issues currency notes under the
(a) Fixed Fiduciary System (b) Maximum Fiduciary System
(c) Fixed Minimum Reserve System (d) Proportional Reserve System
585. The implementation of Jawahar Rojgar Yojana rests with.
(a) Gram Panchayats (b) District Collectors (c) State Governments (d) Union Government
586. What does the open market operation of the RBI mean ?
(a) Buying and selling shares (b) Auctioning of foreign exchange (c) Trading is securities (d) Transactions in gold
587. Which of the following is a Navaratna PSE?
(a) Steel Authority of India Ltd. (b) MMTC Ltd (c) National Aluminium Company Ltd. (d) Oil India Ltd,
588. Which of the following is not the source of the revenue of central Government?
(a) Income Tax (b) Corporate Tax (c) Agricultural Income Tax. (d) Excise Dufy
589. Which of the following is Navaratna PSE?
(a) Hindustan Aeronautics Ltd. (b) Container Corporation of India Ltd.
(c) Mahanagar Telephone Nigam Ltd. (d) Engineers India Ltd.
590. The Government of India derives its single largest source of revenue from
(a) Direct Taxes (b) Customs Duties (c) Deficit Financing (d) Union Excise Duties
591. Mahalanobis Model has been associated with which Five- Year Plan?
(a) First Five-Year Plan (b) Second Five-Year Plan (c) Third Five-Year Plan (d) Fourth Five-Year Plan
592. Who had estimated National Income in India first?
(a) V.K. R. V. Rao (b) Dadabhai Naoroji (c) RC. Dutt (d) D.R. Gadgil
593. Which bank in India performs duties of Central Bank ?
(a) Central Bank of India (b) State Bank of India
(c) Reserve Bank of India (d) Above (a) and (b)
594. Which from the following is NOT a Navaratna PSU ?
(a) SAIL (b) –BHEL (c) NTPC (d) Shipping Corporation of India
595. Which amidst the following is a PSU?
(a) Bank of Rajasthan (b) Bank of India (c) Bank of Punjab (d) Karnataka Bank
596. Who among the following Indian Economists has done pioneering work on National Income ?
(a) Jagdish Bhagwati (b) M.L. Seth (c) Amartya Sen (d) V.K.R.V. Rao
597. Which from the following is not a Navaratna PSU?
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(a) Rajahmundry in Andhra Pardesh (b) Neyveli in Tamil Nadu (c) Korba in Madhya Pradesh (d) Dabhol in
Maharashtra
640. The highest foreign exchanged earners have been the export of
(a) engineering goods (b) gems and jewellery (c) minerals (d) tea
641. Which of the following sectors contributed more to the savings in India?
(a) Public sector (b) Household sector (c) Corporate sector (d) Private sector
642. The objective of ‘Jawahar Rojgar Yojana' is to
(a) provide employment to youth in rural areas (b) create employment opportunities for unemployed persons
(c) strengthen the rural economic and social structure (d) All of the above
643. The Annapurna Scheme was implemented in the year
(a) 1998 (b) 1996 (c) 1999 (d) 2000
644. Insurance sector in India is regulated by
(a) RBI (b) CII (c) IRDA (d) SEBI
645. The abbreviation 'SEBI' stands for
(a) Savings and Exchange Bank of India (b) Securities and Exchange Bank of India
(c) Survey of essential business in India (d) Securities and Exchange Board of India
646. The Reserve Bank of India was nationalized in the year
(a) 1935 (b) 1969 (c) 1949 (d) 1980
647. The Government has renamed NREGA scheme and the name associated with the scheme is that of
(a) Rajiv Gandhi (b) Jawahar Lal Nehru (c) Mahatma Gandhi (d) Indira Gandhi
648. Which is the biggest tax paying sector in India?
(a) Agriculture sector (b) Industrial sector (c) Transport sector (d) Banking sector
649. Who is the Ex-officio Chairman of the Planning Commission?
(a) Minister for Planning & Development (b) Finance Minister
(c) Prime Minister (d) Minister for Rural &Community Development
650. The Draft of the Five Year Plans in India is approved by the
(a) National Development Council (b) Planning Commission
(c) National Productivity Council (d) Ministry of Finance
651. Gross Domestic Product is defined as the value of all
(a) goods produced in an economy, in a year (b) goods and services produced in an economy in a year
(c) final goods produced in an economy in a year (d) final goods and services produced in an economy in a year
652. The present Indian monetary system is based on
(a) Gold Reserve System (b) Proportional Reserve System
(c) Convertible Currency System (d) Minimum Reserve System
653. India is called a mixed economy because of the existence of
(a) Public Sector (b) Private Sector (c) Joint Sector (d) Cooperative Sector
(a) a, d (b) a, b (c) c, d (d) b, d
654. NREGP is the abbreviated form of
(a) National Rural Employment Guarantee Programme
(b) National Rural Educational Guarantee Programme
(c) National Rapid Educational Guarantee Programme
(d) National Rapid Employment Guarantee Programme
656. The term ‘Mixed Economy' denotes
(a) existence of both rural and urban sectors (b) existence of both private and public sectors
(c) existence of both heavy and small industries (d) existence of both developed and underdeveloped sectors
657. FERA in India has been replaced by
(a) FEPA (b) FEMA (c) FENA (d) FETA
658. GDP at Factor Cost is
(a) GDP minus indirect taxes plus subsidies (b) GDP minus depreciation allowances
(c) NNP plus depreciation allowances (d) GDP minus subsidies plus indirect taxes
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659. Which plan gave emphasis on removal of poverty for the first time?
(a) Fourth (b) Fifth (c) Sixth (d) Seventh
660. The Planning Commission of India was constituted in the year
(a) 1942 (b) 1947 (c) 1950 (d) 1955
661. Token privatization or deficit privatization of public sector units occur when the government sells
(a) 5% of shares (b) 10% of shares (c) 15% of shares (d) 20% of shares
662. Per capita income is obtained by dividing National Income by
(a) Total population of the country (b) Total working population
(c) Area of the country (d) Volume of capital used
663. The Centre for Agricultural Marketing is located at
(a) Jaipur (b) New Delhi (c) Nagpur (d) Hyderabad
664. Where is the Indian Institute of Foreign Trade Located?
(a) New Delhi (b) Hyderabad (c) Mumbai (d) Ahmedabad
665. Which is not the objective of Public Procurement and Distribution system followed by Indian Government?
(a) Maintain price stability through creation of buffer stocks
(b) Protect the interests of both consumers and poor farmers
(c) Control the production of food grains (d) Reduce personal and regional inequality in the distribution
666. Reserve Bank of India was nationalized in
(a) 1947 (b) 1948 (c) 1949 (d) 1951
667. When was the Jawahar Rozgar Yojna launched ?
(a) 1985 (b) 1987 (c) 1989 (d) 1991
668. ‘Next zone’ an information technology SEZ is being established at
(a) Panki in Uttar Pradesh (b) Panvel in Maharashtra
(c) Bangalore in Karnataka (d) Secunderabad in Andhra Pradesh
669. With the inclusion of Shipping Corporation of India recently in the list of Nav Ratna PSEs, their number now stands
at
(a) 15 (b)16 (c) 17 (d)18
670. ICI is the name associated with
(a) a MNC which manufactures chemicals (b) Indian Cement Industry
(c) Chamber of Commerce and Industry (d) a private sector bank
671. The Report of Vijay Kelkar Committee relates to
(a) Trade Reforms (b) Centre-State Financial Relations
(c) Disinvestment in Public Sector Enterprises (d) Tax Reforms
672. In the post-independence period, economic reforms were first introduced in India under
(a) P.V. Narasimha Rao Government (1990) (b) Indira Gandhi Government (1980).
(c) Rajiv Gandhi Government (1985) (d) Janata Party Government (1977)
673. Which one of the following is not correct?
(a) First Five Year Plan-1951-56 (b) Second FiveYearPlanl956-61
(c) Third Five Year Plan-1961-66 (d) FourthFiveYearPlan-1966-71
674. The Commission in India dealing with minimum support price, procurement price, etc in connection with
agricultural goods is the
(a) Planning Commission (b) Agricultural Costs and Prices Commission
(c) Agricultural Price Commission (d) National Marketing Commission
675. Which of the following Indian banks became the first to touch a market capitalization of Rs. 1,00,000 crore in India?
(a) ICICI (b) HDFC (c) SBI (d) PNB
676. Who coined the term ‘Hindu rate of growth’ for Indian economy?
(a) A.K. Sen (b) Kirit S. Parikh (c) Raj Krishna (d) Montek Singh Ahluwalia
677. In the budget figures of the Government of India, interest payments, subsidies, pensions, social services and the like
are parts of the
(a) Plan Expenditure (b) State Government Expenditure
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(c) Public Debt in the form of Capital Expenditure (d) Non-plan Expenditure
678. RBI does not transact the business of which State Government?
(a) Nagaland (b) Jammu and Kashmir (c) Punjab (d) Assam
679. The highest body which approves the Five Year Plan in India is the
(a) Planning Commission (b) National Development Council
(c) Finance Ministry (d) Union Cabinet
680. The official agency responsible for estimating National Income in India is
(a) Indian Statistical Institute (b) Reserve Bank of India
(c) Central Statistical Organization (d) National. Council for Applied Economics and Research
681. India’s biggest nationalized enterprise today
(a) the Indian Railways (b) the Indian Commercial Banking System
(c) the Indian Power Sector (d) the Indian Tele communication System
682. In the budget figures of the Government of India the difference between total expenditure and total receipts is
called
(a) Fiscal deficit (b) Budget deficit (c) Revenue deficit (d) Current deficit
683. Which of the following has the sole right of issuing currency (except one rupee coins and notes) in India ?
(a) The Government of India (b) The Planning Commission
(c) The State Bank of India (d) The Reserve Bank of India
684. The famous slogan “GARIBIHATAO" (Remove Poverty) was launched during the
(a) First Five Year Plan (1951-56) (b) Third Five Year Plan (1961-66)
(c) Fourth Five Year Plan(1964-66) (d) Fifth Five Year Plan (1974-79)
685. In which plan was self-reliance first emphasized
(a) Second Plan (b) Third Plan (c) Fourth Plan (d) Fifth Plan
686. The total number of nationalized banks in India is
(a) 14 (b) 19 (c) 21 (d) 30
687. In India, one-rupee coins and notes and subsidiary coins are issued by
(a) the Reserve Bank of India (b) the Central Government (c) the State Bank of India (d) the Unit Trust of India
688. Which authority decides about The States’ share in central taxes?
(a) Finance Commission (b) Planning Commission (c) Election Commission (d) Finance Ministry
689. Which State has the lowest per capita income in India ?
(a) Bihar (b) Orissa (c) Rajasthan (d) Gujarat
690. In the budget figures of the Government of India, fiscal deficit is
(a) total expenditure – total receipts (b) revenue expenditure- revenue receipts
(c) capital expenditure-capital receipts + market borrowings
(d) sum of budget deficit and Government’s market borrowings and liabilities
691. Which of the following is not in the infrastructure sector?
(a) Power generation (b) Construction of roads (c) Food production (d) Expansion of air ports
692. The Narasimham Committee (1991) on financial reforms proposed for establishment of a
(a) Four tier hierarchy of the Banking structure
(b) Three tier hierarchy of the Banking structure
(c) Two tier hierarchy of the Banking structure
(d) Unified control by the apex institutions
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