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Economics

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1
Q.1. Which of the following is NOT a part of the infrastructure sector?
  • Agriculture
  • Highways
  • Power
  • Dams
2
Q.2. The shares of the public sector and the private sector in the production of steel during 1990-91 were __________, respectively.
  • 40% and 60%
  • 46% and 54%
  • 55% and 45%
  • 49% and 51%
3
Q.3. Which of the following is NOT true about the circular flow of income in a two-sector economy?
  • Total production is equal to total consumption.
  • Factor payment is equal to factor income.
  • Consumption expenditure is equal to factor income.
  • Real Flow is more than money flow.
4
Q.4. During the year 1991-92, the industrial production recorded a ______growth of ______.
  • Negative ; 1.1 Percent
  • Positive ; 1.1 Percent
  • Positive ; 0.6 Percent
  • Negative ; 0.9 Percent
5
Q.5. Which of the following is NOT an example of manufacturing activity?
  • Sugar made from sugarcane
  • Mutual fund products made by combining debt and equity funds
  • Yarn made from cotton
  • Paper made from wood
6
Q.6. Which of these is related to public goods?
  • There is a clear link between the producer and consumer which occurs through the payment process.
  • There is a possibility of free ridership in its consumption.
  • Its consumption is rivalrous in nature.
  • The principle of excludability is applicable to its consumption.
7
Q.7. Which of these is not the reason why ‘final’ goods are called so?
  • They will not pass through any more
    stages of production.
  • They are not processed or
    transformed further.
  • They are meant for final use.
  • They are the last to be consumed.
8
Q.8. What was the percentage of women working in the primary sector of India as of 2011 - 2012?
  • 62.8%
  • 61%
  • 63.08%
  • 64.5%
9
Q.9. Final goods are divided into:
  • Single goods and composite goods
  • Consumption goods and capital goods
  • Raw materials and semi-finished
    goods
  • War goods and civilian goods
10
Q.10. Which of these is NOT a characteristic of durable goods?
  • They have a relatively long life.
  • They are meant for repetitive purchases.
  • They are not extinguished by immediate consumption.
  • They are capable of repetitive use.
11
Q.11. Which of these is a component of the tertiary sector of an economy?
  • Water supply
  • Hotels and restaurants
  • Electricity
  • Mining and quarrying
12
Q.12. Which of the following can be considered a part of a parallel economy?
  • Under declared income.
  • Payments for private tuition.
  • Value of domestic work done by the
    housewife
  • Payments made to domestic helpers
    or housekeepers.
13
Q.13. Which of the following statements is/are FALSE with respect to simple model of the circular flow of economy?

i. The aggregate consumption is more than the aggregate expenditure.
ii. There is government intervention.
iii. There are no trade activities with the rest of the world.
  • Only iii
  • Only ii and iii
  • Only i
  • Only i and iii
14
Q.14. In which industrial policy was the investment limit for a tiny industry / unit increased to ₹2 lakh?
  • 1977
  • 1956
  • 1991
  • 1980
15
Q.15. Machines, tools and implements, and buildings are examples of which type of goods?
  • Capital goods
  • Inferior goods
  • Intermediate goods
  • Consumer goods
16
Q.16. How many industries were listed in Schedule A of Industrial Policy, 1956?
  • 16
  • 12
  • 17
  • 10
17
Q.17. Which of the following can be considered as an example of flow variable?

(i) Production of rice
(ii) Import of cloth
(iii) Change in capital
  • Only (i) and (ii)
  • None of (i), (ii) and (iii)
  • Only (iii)
  • All of (i), (ii), and (iii)
18
Q.18. Hindustan Aeronautics Limited comes under which sector?
  • Public sector
  • Foreign sector
  • Private sector
  • Co - operative sector
19
Q.19. In migration, the factors which cause people to leave their place of residence or origin are called ________.
  • Irregular factors
  • Push factors
  • Regular factors
  • Pull factors
20
Q.20. What is the fiscal year period in India?
  • 1st January to 31st December of the
    same year.
  • 1st April to 31st December of the
    same year.
  • 1st January of a year to 31st
    December of the next upcoming year.
  • 1st April of a year to 31st March of the next upcoming year.
21
Q.21. Change in the inventory of a firm is treated as _________.
  • Asset
  • Liability
  • Disinvestment
  • Investment
22
Q.22. Which of the following is an example of joint sector Industry?
  • Maruti Udyog Limited
  • Anand Milk Union Limited
  • Hindustan Aeronautics Limited
  • Steel Authority of India Limited
23
Q.23. Which among the following statements is incorrect?
  • Industrial Securities Market is also
    known as the gilt-edged market.
  • RBI plays a dominant role in the
    gilt-edged market through its 'Open
    Market Operations'.
  • The secondary market is the market
    for the sale and purchase of
    previously issued securities.
  • The primary market is also known as
    the new issue market.
24
Q.24. Which of the following statements is correct regarding the socialist society in the economy?

I. The government decides what goods are to be produced.
II. Distribution of goods under socialism is supposed to be based on what people need.
  • Only I
  • Only II
  • Both I and II
  • Neither I nor II
25
Q.25. Macroeconomics deals with which of the following studies?

I. Reasons behind the unemployment of resources.

Il. Determination of total output.
  • Neither I nor II
  • Only I
  • Only II
  • Both I and II
26
Q.26. A free-market economy is a crucial aspect of _______.
  • Socialism
  • Functionalist
  • Capitalism
  • Feudalism
27
Q.27. Which of the given sectors is largely driven by considerations of social welfare?
  • Public sector
  • Co-operative sector
  • Private sector
  • Foreign sector
28
Q.28. Name the two states in which land reform was successful?
  • Maharashtra and Tamil Nadu
  • West Bengal and Kerala
  • Karnataka and West Bengal
  • Uttar Pradesh and Bihar
29
Q.29. Aid or auxiliary to trade includes which of the following?
  • Warehousing
  • Production
  • Selling
  • Buying
30
Q.30. In the Industrial Policy Resolution of 1948, which of the following was NOT the monopoly of the Central Government?
  • Atomic energy
  • Iron and Steel
  • Arms and ammunition
  • Railway
31
Q.31. What is the emigration of a significant proportion of a country’s highly skilled, highly educated professional population to other countries offering better economic and social opportunities called?
  • Demographic transition
  • Carrying capacity
  • Closed population
  • Brain drain
32
Q.32. In the context of Economics, what does P stand for in EPF?
  • Provident
  • Profit
  • Promotion
  • Planning
33
Q.33. Which of the following is NOT important for individual health?
  • Harmony
  • Social equality
  • Public transport
  • Public cleanliness
34
Q.34. Which of the following statements is related to positive economics?
  • An increase in money supply implies a price rise in an economy.
  • Inflation is better than deflation.
  • Inequalities in the distribution of wealth and incomes should be reduced.
  • More production of luxury goods is not good for a less developed country.
35
Q.35. Which branch of economics deals with the depletion of natural resources stock and pollution, which are a result of rapid economic development?
  • Developmental Economics
  • Environmental Economics
  • Public Economics
  • International Economics
36
Q.36. All monetary transfers or kinds sent by migrants to their place of origin are called ______.
  • Payments
  • Drafts
  • Bills
  • Remittances
37
Q.37. People like small farmers and seasonal workers who regularly move in and out of poverty are categorised as ______.
  • occasionally poor
  • always poor
  • Churning poor
  • usually poor
38
Q.38. An unexpected rise in sales of a product leads to ______.
  • Unplanned accumulation of inventory
  • Planned decumulation of inventory
  • Unplanned decumulation of inventory
  • Planned accumulation of inventory
39
Q.39. An industrial economy is best defined as an economy whose 50% or more produce value comes from the ______ sector.
  • Primary
  • Secondary
  • Banking
  • Tertiary
40
Q.40. 'Income and employment theory' is the other name for which branch of Economics?
  • Microeconomics
  • Macroeconomics
  • International economics
  • Public finance
41
Q.41. ______ is defined as the study of the behaviour of individual decision-making units, such as consumers, resource owners, and firms.
  • Microeconomics
  • Macroeconomics
  • Health economics
  • Econometrics
42
Q.42. John Maynard Keynes, best known for his economic theories (Keynesian theories), hailed from which country?
  • Australia
  • Sweden
  • England
  • Denmark
43
Q.43. Which of these statements is true Under competitive asset market conditions?
  • The present value must exceed the price of a bond to benefit the seller.
  • The price of a bond must always be equal to its present value in equilibrium.
  • The price of a bond must exceed its present value to benefit the buyer.
  • The price of a bond must be less than its present value to benefit the seller
44
Q.44. If the interest rate goes up, the demand for money will _______.
  • First rise and then falls
  • Remain the same
  • Rise
  • Fall
45
Q.45. According to the law of demand, the consumer's demand for a good must be ______.
  • Directly related to the supply of the
    good
  • Inversely related to the supply of the
    good
  • Directly related to the price of the
    good
  • Inversely related to the price of the good.
46
Q.46. If ex ante aggregate demand and ex ante aggregate supply are plotted together in a graphical diagram, then at which point equilibrium will be reached?
  • Where ex ante aggregate demand is less than ex ante aggregate supply
  • Where ex ante aggregate demand is zero
  • Where ex ante aggregate demand is equal to ex ante aggregate supply
  • Where ex ante aggregate demand is more than ex ante aggregate supply
47
Q.47. If the price elasticity of demand is less than one, then the demand for the goods is said to be _______.
  • Perfectly elastic
  • Perfectly inelastic
  • Inelastic
  • Unitary-elastic
48
Q.48. The simultaneous shifts of both the demand curve and the supply curve can happen in which of the following ways?

I. Supply curve shifts leftward and
demand curve shifts rightward.
II. Both supply and demand curves shift leftwards.
III. Supply curve shifts rightward and demand curve shifts leftward.
  • All I, II, and III
  • Only II and III
  • Only I
  • Only I and II
49
Q.49. Which of the following assumptions is made to determine the level of aggregate demand for final goods in the economy?

I. A constant final goods price and
constant rate of interest over short run are assumed.
II. The aggregate supply is assumed to be perfectly elastic.
  • Only I
  • Both I and II
  • Only II
  • Neither I nor II
50
Q.50. _________ demand for money arises mainly due to the uncertainty of future receipts and expenses.
  • Precautionary
  • Generic
  • Speculative
  • Transactions
51
Q.51. Trade liberalisation has helped India improve its _____________ in industries with medium-to-high technology content.
  • Comparative advantage
  • Fuel efficiency
  • Labour intensity
  • Imports
52
Q.52. Factor cost is also known as _________.
  • Input cost
  • Output cost
  • Ex-factory cost
  • Market cost
53
Q.53. Import substitution strategy is commonly called ________.
  • Inward Looking Trade Strategy
  • Outward looking trade strategy
  • Balanced trade strategy
  • Make in India campaign
54
Q.54. The consumption of fixed capital is also known as _________.
  • Depreciation
  • Appreciation
  • Gross investment
  • Net investment
55
Q.55. Commercialisation of agriculture is an indication of _________ .
  • Marketable surplus
  • Income surplus
  • Producers' surplus
  • Consumer surplus
56
Q.56. What was the minimum consumption expenditure (₹ per capita per month) set as a benchmark of the poverty line for rural India in 1979?
  • 49.09
  • 43.5
  • 56.7
  • 62.1
57
Q.57. The production function can be expressed as _________ (where L is labour and C is capital and Q is the maximum output that can be produced).
  • Q = f(L)
  • Q = f(C)
  • Q = f(L, C)
  • L = f(Q, C)
58
Q.58. Which of the following statements is correct regarding the features of a perfectly competitive market?
I. The market consists of a large number of buyers and sellers.
II. Information is perfect.
  • Neither I nor II
  • Only II
  • Only I
  • Both I and II
59
Q.59. Which of the following statements is correct regarding the marginal utility of a commodity?

I. It is the change in total utility due to consumption of one additional unit of a commodity.
II. It diminishes with increase in consumption of the commodity.
  • Only I
  • Both I and II
  • Neither I nor II
  • Only II
60
Q.60. Consider the given consumption function of country X and answer the following question. C = 100 + 0.8Y. What is the value of autonomous consumption (A) and marginal propensity to consume (MPC) in the given equation?
  • A = 100, MPC = 80
  • A = 100, MPC = 0.8
  • A = 0.8, MPC = 100
  • A = 80, MPC = 0.10
61
Q.61. Which of the following statements is correct regarding the production possibility frontier?

I. It gives the combinations between two goods that can be produced when the resources of the economy are fully utilised.
II. It illustrates the production possibilities of the economy.
  • Only II
  • Both I and II
  • Only I
  • Neither I nor II
62
Q.62. In India, which of the following is NOT an objective of the National Manufacturing Policy?
  • To enhance global competitiveness, domestic value addition, technological depth and environmental sustainability of growth.
  • To increase the rate of job creation so as to create 100 million additional jobs by 2022.
  • To increase the sectoral share of
    manufacturing in the GDP to at least 25% by 2022.
  • To double the exports of manufacturing goods by 2022.
63
Q.63. Which department of the Government of India declares the minimum support prices?
  • Department of Disinvestment
  • Department of Agriculture and Cooperation
  • Department of Expenditure
  • Department of Economic Affairs
64
Q.64. What is the full form of WPI?
  • Wholesale Price Index
  • Wholesale Price Information
  • World Product Index
  • Wholesale Product Index
65
Q.65. The 'transformation curve' is also known as the:
  • Production possibility curve
  • Supply curve
  • Demand curve
  • Indifference curve
66
Q.66. ______ refers to money that has already been spent and which cannot be recovered.
  • Imputed cost
  • Opportunity cost
  • Replacement cost
  • Sunk cost
67
Q.67. A higher ____ index reflects inequality in income distribution.
  • Gini
  • CPI
  • GDP
  • NDP
68
Q.68. Which of the following statements about transfer payments are correct?

1) Transfer payments are made by the government to households.
2) Pension, scholarship etc. are not a part of the transfer payments.
3) Transfer payments are often used as a means of redistributing income within a society.
  • 1 and 3 only
  • 2 and 3 only
  • 1 and 2 only
  • 1, 2 and 3
69
Q.69. Which of the following statements about GDP and Welfare are correct?

1) GDP of a country is an indicator of the welfare of the people.
2) If GDP is rising, welfare may not rise equally.
3) GDP and Welfare both are not related to each other.
  • Only 1 and 2
  • All 1, 2 and 3
  • Only 2 and 3
  • Only 1 and 3
70
Q.70. Which of the following options represents the total income earned by individuals from all the sources before deduction of personal income taxes?
  • Gross income
  • Personal income
  • National income
  • Disposable income
71
Q.71. Which of the following is the correct formula for calculating Net Indirect Taxes?
  • Indirect Taxes + Subsidies
  • Indirect Taxes − Subsidies
  • Direct Taxes + Subsidies
  • Direct Taxes − Subsidies
72
Q.72. Which of the following is a FALSE statement in the context of the government budget?
  • Profit earned through Indian Railways is a part of non-tax revenue.
  • There is no future obligation to return the amount in case of revenue receipts.
  • Fees and fines collected is an example of capital receipt
  • Recovery of a loan is a capital receipt.
73
Q.73. Which of the following is considered as a good indicator of economic growth?
  • Steady increase in the GDP
  • Steady increase in loan
  • Steady increase in population
  • Steady increase in international trade
74
Q.74. A government budget shows a primary deficit of ₹6,900 crore. The revenue expenditure on interest payment is ₹400 crore. Fiscal deficit is equal to:
  • ₹7,100 crore
  • ₹6,900 crore
  • ₹6,500 crore
  • ₹7,300 crore
75
Q.75. In which type of tax is the marginal tax rate higher than the average tax rate?
  • Digressive tax
  • Progressive tax
  • Proportional tax
  • Regressive tax
76
Q.76. Recoveries of loans and advances, borrowings, are an example of __________
  • Non-tax receipts
  • Capital receipts
  • Revenue receipts
  • Tax receipts
77
Q.77. Expenditure of the government on health facilities, education and fixed-asset acquisition is termed as ____ .
  • Revenue expenditure
  • Capital expenditure
  • Non-plan revenue expenditure
  • Plan expenditure
78
Q.78. Which of the following is NOT included in inventory investment when calculating national income?
  • Change in stock of finished goods
  • Change in stock of raw material
  • Change in stock of semi-finished goods
  • Change in sales during the year
79
Q.79. Which of the following is a source of tax revenue?
  • Profits
  • Customs
  • Penalties
  • Grants
80
Q.80. Calculate the GDP at factor cost given in the following data.

GDP at market price = 600 crores,

Consumption of fixed capital = 100 crores,
Indirect taxes = 200 crores,

Subsidies = 50 crores.
  • 950 crores
  • 350 crores
  • 850 crores
  • 450 crores
81
Q.81. Assessment of the country’s GDP growth, external balance and fiscal balance are presented in which part of the budget document?
  • Fiscal Policy Strategy Statement
  • Macroeconomic Framework Statement
  • Medium-term Fiscal Policy Statement
  • Appropriation bill
82
Q.82. Which of the following is used to measure the total output of goods and services in an economy including depreciation during a specific period within a country?
  • Net Domestic Product (NDP)
  • Gross National Product (GNP)
  • Net National Product (NNP)
  • Gross Domestic Product (GDP)
83
Q.83. Which of the following is an example of capital receipt in the government budget?
  • Tax revenue collected from citizens
  • Income from government-owned
    enterprises
  • Grants received from foreign
    countries
  • Sale of government bonds
84
Q.84. What is a budget deficit?
  • The excess of government revenue over expenditure.
  • The excess of government expenditure over revenue.
  • The amount of money allocated for social welfare programmes.
  • The amount of money allocated for defence spending.
85
Q.85. Which of the following is an example of a non-debt capital receipt in the government budget?
  • Sale of government-owned land
  • Loans from international financial
    institutions
  • Interest payment on government
    bonds
  • Tax revenue collected from citizens
86
Q.86. What is personal income?
  • The income earned by individuals
    through their own business or
    self-employment.
  • The income earned by individuals and households after taxes and other deductions.
  • The total income earned by
    businesses and corporations in an economy.
  • The total income earned by individuals and households before taxes and other deductions.
87
Q.87. Which of the following methods is used to calculate national income by summing up the total spending on final goods and services in an economy?
  • Value-added method
  • Income method
  • Output method
  • Expenditure method
88
Q.88. Which of the following represents disposable income?
  • The income earned by individuals
    through their own business or
    self-employment.
  • The total income earned by
    businesses and corporations in an
    economy.
  • The total income earned by
    individuals and households before taxes and other deductions.
  • The income earned by individuals and households after taxes and other deductions.
89
Q.89. What do you mean by balanced budget?
  • Expenditure equal to revenue
  • Expenditure is less than revenue
  • Expenditure more the revenue
  • Expenditure not equal to revenue
90
Q.90. Why are intermediate goods NOT included in the calculation of national income?
  • Intermediate goods are not important
    for measuring economic activity.
  • Including intermediate goods would result in double counting.
  • Including intermediate goods would
    decrease the value of national
    income.
  • Intermediate goods are not produced
    within the country's borders.
91
Q.91. Which of the following is true about disposable income in relation to personal income?
  • Disposable income is equal to
    personal income.
  • Disposable income is always greater
    than personal income.
  • Disposable income is always less than personal income.
  • Disposable income can be greater or
    less than personal income, depending
    on taxes and deductions.
92
Q.92. Which of the following statements(s) is true?

A) Higher inflation means lower real GDP, ceteris paribus.

B) Price Index is 200 if nominal GDP and real GDP are the same.
  • Only B
  • Both A and B
  • Neither A nor B
  • Only A
93
Q.93. Usually, the reduction in the taxes will have ______ multiplier effect compared to an increase in government spending on aggregate demand.
  • Smaller
  • No
  • Higher
  • Equivalent
94
Q.94. Calculate the NNP (₹ in crore) at market price from the given data:
Particulars Value (₹ in crore)

NDP at factor cost - 1,25,250

Net income from abroad - (-) 581

Net indirect taxes - 18,120.
  • 1,42,789
  • 1,25,831
  • 1,24,669
  • 1,43,951
95
Q.95. Which of the following is a correct expression?
  • Gross investment = Net investment -
    Depreciation
  • Net investment = Gross investment - Depreciation.
  • Depreciation = Net investment - Gross
    investment
  • Net investment Gross investment +
    Depreciation
96
Q.96. NDP at FC plus net factor income from abroad is equal to _______.
  • GDP at FC
  • NNP at MP
  • NNP at FC
  • GNP at MP
97
Q.97. According to David Ricardo, during a high deficit situation taxation and borrowings are _____ means of spending.
  • Subsidised
  • Equivalent
  • Differentiated
  • Prudent
98
Q.98. Which of the following is an objective of the Government Budget?

A) GDP Growth.
B) Reallocation of Resources.
C) Balanced Regional Growth.
  • Only B
  • Only A
  • All - A, B and C
  • Only A and C
99
Q.99. Identify the true statement.
  • If real GDP is 500 and price index is
    200, nominal GDP is 700.
  • If real GDP is 240 and price index is 120, nominal GDP is 288.
  • If real GDP is 500 and price index is
    200, nominal GDP is 250.
  • If real GDP is 240 and price index is
    120, nominal GDP is 200.
100
Q.100. Match the items is List I with those in List II.
Measure of National Income. Formula.

i. GNP. a. GNP - Depreciation
ii. NNP. b. C + I + G + Net exports
iii. GDP. c. GDP - Depreciation
iv. NDP. d. GDP + Net factor
income from abroad
  • i-d, ii-a, iii-b, iv-c
  • i-b, ii-d, iii-a, iv-c
  • i-a, ii-c, iii-d, iv-b
  • i-c, ii-b, iii-d, iv-a
101
Q.101. Which of the following is the correct sequence of national income from broader to narrower concepts?
GNP at factor cost - NNP at factor cost- Personal income - Personal disposable income
102
Q.102. Which of these is NOT the correctly stated component of the expenditure method of measuring national income?
Export plus import expenditure
103
Q.103. ____________is the income of the Government, which arises out of the property left by the people without a legal heir.
Escheat
104
Q.104. The stabilisation function of the government budget mainly includes ________.
Intervention to expand or reduce the demand
105
Q.105. Which of the following items is NOT a part of the non-plan revenue expenditure of the government budget?
Central assistance for states and union territories
106
Q.106. In the estimation of national income, which of the following items will be subtracted from NNP at market price?
Net indirect taxes
107
Q.107. Proportional taxes would help to reduce the autonomous expenditure multiplier because_____________.
Taxes reduce the MPC
108
Q.108. Identify the correct statement/s regarding budgetary deficit?
Only i and iii
109
Q.109. CBIC stands for ________.
Central Board of Indirect Taxes and Customs
110
Q.110. Which of these is one of the functions of the Government budget?
Redistribution of income and wealth
111
Q.111. Which country first introduced zero-based budgeting?
The US
112
Q.112. Which of these expressions is correct?
If the factor income from abroad is greater than the factor income paid abroad, then GNP would be greater than GDP.
113
Q.113. Match List I with List II and choose your answer from the code below:
List - I. List - II.
i. Service tax. a. Capital receipt
ii. Interest receipt. b. Revenue expenditure
iii. Sale of shares c. Non-tax revenue
of PSUs.
iv. Salaries and d. Tax revenue
pension.
  • i-d, ii-c, iii-a, iv-b
  • i-d, ii-c, iii-b, iv-a
  • i-c, ii-b, iii-a, iv-d
  • i-d, ii-a, iii-c, iv-b
114
Q.114. Which of the following is NOT included in 'Operating Surplus'?
Wages in cash
115
Q.115. What is the basic difference in the aggregates at market price and factor cost?
Net indirect taxes
116
Q.116. What is the nominal GDP if the real GDP is 500 and price index is 150?
750
117
Q.117. Identify the correct match.
Only B
118
Q.118. Exports of mangoes by India is a part of_____method of measurement of its national income.
Expenditure
119
Q.119. When did the Government of India bring the gender sensitivities of the budgetary allocation in its statement for the first time?
2005-06
120
Q.120. _________ is an item for which both, GST and central excise duty are applicable in India.
Tobacco and tobacco products
121
Q.121. In India, the financial year runs from________ to_______.
April 1, March 31
122
Q.122. Which of the following aggregates best describes the National Income?
NNP at FC
123
Q.123. While computing Net Economic Welfare (NEW), which of the following items is subtracted from GNP?
Adjustments for congestion of urban life
124
Q.124. Revenue expenditure minus revenue receipts is _________.
Revenue deficit
125
Q.125. Which of the following statements is/are FALSE?
Only A
126
Q.126. In which year did the Central Statistical Office adopt the GVA concept in India?
2015
127
Q.127. Which of the following is an example of direct tax?
Income Tax
128
Q.128. GDP deflator = _______
(Nominal GDP / Real GDP) × 100
129
Q.129. In which union budget was India's first sovereign wealth fund named 'National Investment and Infrastructure Fund (NIIF)' announced?
2015-16
130
Q.130. _____ expenditure and _________ receipts are shown by the government budget.
Estimated; estimated
131
Q.131. Non-Tax revenue is part of _________.
Revenue Receipts
132
Q.132. Which of the following is NOT an example of factor payment?
Pension
133
Q.133. In national income accounting, GVA stands for
Gross value added
134
Q.134. GDP calculated at some constant set of prices is called___________.
Real GDP
135
Q.135. Duties levied on goods produced within the country are _______.
Excise taxes
136
Q.136. Which of the following is referred to as 'paper taxes'?
Both I and II
137
Q.137. If the value of gross fiscal deficit will be more than net interest liabilities, the value of gross primary deficit will be ___________ .
Positive
138
Q.138. When was the Direct Tax Code Bill introduced in the Parliament of India?
2010
139
Q.139. The collection of all bundles that the consumer can buy with her income at the prevailing market prices is called the _________.
Budget Set
140
Q.140. Which of the following is correct regarding the National Income?
Both I and II
141
Q.141. If there are N firms in the economy, each assigned with a serial number from 1 to N, then as per the product method, GDP can be written as_____.
GVA + ..... + GVA N
142
Q.142. Assume that the exchange rate between the US Dollar and Indian Rupee is \$1 = 55. Now if this exchange rate increases to \$1 = ₹60, then in this case the Indian Rupee has _______ in comparison to the US dollar.
Depreciated
143
Q.143. Which of the following is NOT one of the methods of national income estimation?
Banking method
144
Q.144. Gross primary deficit is the difference between ________.
Gross fiscal deficit and Net interest liabilities
145
Q.145. Which Indian budget introduced a statement highlighting the gender sensitivities of the budgetary allocations?
2005-06
146
Q.146. The value of GDP at the current prevailing prices is called_________.
Nominal GDP
147
Q.147. The subject of the Study of Macroeconomics is based on which principle?
The principle of National Income
148
Q.148. Which of the following functions of the government budget is associated with distribution of income?
Only II
149
Q.149. Which of the following organisations of the Government of India has been reporting the GDP at factor cost and at market prices?
National Statistics Office
150
Q.150. Which type of tax acts as an automatic stabiliser in the economy?
Proportional income tax
151
Q.151. Who among the following headed the National Income Committee?
PC Mahalanobis
152
Q.152. The difference between a farmer's output over and above his on-farm consumption is known as ______.
Marketable Surplus
153
Q.153. In 1950-51, what percentage of GDP of India was contributed by the industrial sector?
13%
154
Q.154. Which of the following commodities are exempted from GST?
Alcohol for human consumption
155
Q.155. When tax collection exceeds the required expenditure, the budget is said to be ______.
Surplus
156
Q.156. The tax imposed on goods imported into and exported out of India is called _____
Custom duty
157
Q.157. Lack of financial discipline by the government can lead to ______________.
A and B
158
Q.158. GDP that takes into account the costs in terms of environmental pollution and exploitation of natural resources is called __________.
Green GDP
159
Q.159. NDP at FC = GDP at FC minus ___.
Depreciation
160
Q.160. Which of the following angles of the flow of factor payments forms the basis to estimate the national income?
Income distribution angle
161
Q.161. What is the domestic income if national income is ₹10,000 crore and net factor income from abroad is ₹2,000 crore?
₹8,000 crore
162
Q.162. To combat inflation, what is the usual monetary policy stance adopted?
Hawkish
163
Q.163. Which of the following statements is/are correct?
I, II and III
164
Q.164. The value of the Gross Domestic Product (GDP) of India is published by PIB in ______.
Indian Rupee
165
Q.165. In which year did India's ratio of public debt to GDP go up to a record 84.2% ?
2003
166
Q.166. ______ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.
Progressive tax
167
Q.167. According to the Output Method, GDP is calculated as:
GDP at Constant Prices – Taxes + Subsidies
168
Q.168. Which of the following is India’s first Paperless Budget?
Union Budget 2021-22
169
Q.169. Which of the given statements about the Union Budget is/are true?
a, b and c
170
Q.170. The GDP deflator is also called:
Implicit price deflator
171
Q.171. As per the recommendations of the National Statistical Commission, the Base Year of the GDP Series in India was revised from 2004-05 to ______ with effect from January 2015.
2011-12
172
Q.172. Ronald Reagan, the 40th President of the US, signed the largest tax cut in the history of their country in 1981. Which economic theory was this policy centred around?
Laffer Curve
173
Q.173. In which year was the Value Added Tax introduced in India?
2005
174
Q.174. Which of the following items does NOT directly affect the Current Account Balance of India?
Revenue income
175
Q.175. The Union Budget, 2020-21, increased deposit insurance coverage for bank deposits to ₹ ____ (lakhs) per depositor.
5 Lakhs
176
Q.176. Which of the following sectors of the economy has the highest share in India’s GDP?
Services
177
Q.177. Who among the following publishes the Economic Survey of India?
Ministry of Finance
178
Q.178. Who issued guidelines for the microfinance institutions in India?
Reserve Bank of India
179
Q.179. The Reserve Bank of India was established in:
1935
180
Q.180. When RBI decides to decrease the repo rate, money supply will _________ .
increase
181
Q.181. The Reserve Bank of India was nationalised on ________.
January 1, 1949
182
Q.182. For providing a non-microfinance loan to a low-income household, there is a limit of ____________ on monthly loan repayment obligations of a household as a percentage of monthly household income.
50%
183
Q.183. ________ is an instrument under the Liquidity Adjustment Facility (LAF) at which RBI lends to commercial banks.
Repo rate
184
Q.184. The maximum limit on microfinance loans for NBFCs other than NBFC-MFIs is_________ .
25% of the total assets
185
Q.185. In the concept of money supply, M4 refers to ________.
M3+ total post office deposits
186
Q.186. Identify the correct statement in the context of money supply:
Only (i) and (iii)
187
Q.187. Which of the following is a function performed by commercial banks in India?
Credit creation
188
Q.188. In India all loans that are below _______ are considered as micro loans.
one lakh rupees
189
Q.189. Which of the following microfinance institutions was established in India at the time of independence?
Rural Cooperatives
190
Q.190. Which of the following options is not an example of small savings?
Mutual Funds
191
Q.191. What is the difference between a debit card and a credit card?
Debit cards withdraw money directly from a bank account, while credit cards allow borrowing up to a certain limit.
192
Q.192. Which of the following is NOT a characteristic of money?
Perishability
193
Q.193. The important milestones of the SHG Bank linkage movement was spearheaded by __________ with support from RBI.
NABARD
194
Q.194. What is a dimension related to the sustainability of microfinance institutions in India?
Dependency on donor funding
195
Q.195. What does the term 'interest' refer to in banking?
The additional amount earned on a loan or deposit
196
Q.196. What is the main role of commercial banks in the economy?
To promote economic growth and development
197
Q.197. Which of the following is a key objective of Micro Finance Institutions in India?
Promoting financial inclusion and poverty alleviation
198
Q.198. Which of the following statements best defines a Micro Finance Institution (MFI)?
MFIs are non-profit organisations that provide financial services to low-income individuals and small businesses.
199
Q.199. What is the main function of money in an economy?
To facilitate exchange
200
Q.200. What is the meaning of the term 'Collateral' in banking?
An asset pledged as security for a loan
201
Q.201. What is the purpose of a savings account?
Earning interest on deposits
202
Q.202. Which of the following is an example of a microfinance institution (MFI) in India?
Bandhan Bank
203
Q.203. What is the main source of income for commercial banks?
Interest earned on loans and advances
204
Q.204. Which institution mainly provides financial assistance and support to microfinance institutions in India?
Small Industries Development Bank of India (SIDBI)
205
Q.205. What does the term 'Overdraft' mean in banking?
Short-term financing facility
206
Q.206. Who said the following? "Money is what money does."
Prof. Walker
207
Q.207. What is the main purpose of a bank statement?
To track income and expenses
208
Q.208. Women SHG member appointed as a banking agent is called _________.
Bank Sakhi
209
Q.209. In 2014, Bandhan Financial Services, microlender with Headquarters at _____________, was granted in-principal approval by RBI to start a universal bank.
Kolkata
210
Q.210. When the general interest rate reaches a very low level, which of the following statements will be correct?
Most people will expect the interest rate to rise in the future
211
Q.211. NABARD launched a special pilot project in 2004-05 called ______ mainly to fulfill the credit needs of the small and marginal farmers and tenant farmers.
JLGs
212
Q.212. Which of the following is not an example of fiat money in India?
₹200 bank cheque
213
Q.213. Who gave the concept of 'money illusion' for the first time?
Irving Fisher
214
Q.214. Due to which of the following reasons can money be differentiated from other physical assets that can perform the function of store of value?
Money is easy to store
215
Q.215. In which year did RBI introduce the regulatory framework for microfinance loans?
2022
216
Q.216. In any economy, the income velocity of the hoarded money (idle) by the public is equal to ______
Zero
217
Q.217. Prathama Bank, the first Regional Rural Bank of India, had its Head Office in which state?
Uttar Pradesh
218
Q.218. Which of the following statements is/are correct regarding liquidity trap?
Only Statement iii is correct
219
Q.219. Which of the following is NOT a common product offered by microfinance institutions in India?
Credit cards
220
Q.220. In 1987, an Action Research Programme was launched by NABARD with____________ based on which a pilot project for linking 500 SHGS with banks was launched.
MYRADA
221
Q.221. It is possible to derive the value of GDP of a country. Which function of money is applicable here?
Unit of account
222
Q.222. Which of the given statements is/are correct with respect to NAFED?
Only Statements i and ii are correct
223
Q.223. With regard to the Currency Deposit Ratio (CDR), all of the following is true, EXCEPT:
During festive season the CDR typically declines
224
Q.224. Which of the following programmes was launched by NABARD in 2015 to promote the livelihood of the people in both farm and off-farm activities?
LEDP
225
Q.225. Who issues ₹10 notes in India?
Reserve Bank of India
226
Q.226. Which measure(s) is the Reserve Bank most likely to take to combat inflation in the economy?
Only A
227
Q.227. Which of the following is the compelling factor that produced a very high repayment rate of 98% in the concept of lending to groups of poor women, initiated by Dr Yunus?
Joint liability putting social pressure to repay loans
228
Q.228. In which year did RBI accord approval to Equitas Holdings to launch a small finance bank?
2016
229
Q.229. Which state is the largest in terms of the outstanding portfolio of microfinance loans, as per the MFIN Micrometer Q4 FY21-22?
Tamil Nadu
230
Q.230. Which of the following statements is/are true about currency notes?
Only i and ii
231
Q.231. Match the following items with respect to money.
List I List II

i. Primary functions. a. Distribution of national income

ii. Secondary functions. b. Measure of value

iii. Evils of money. c. Store of value

iv. Contingent functions. d. Instability of value
  • i-b, ii-c, iii-d, iv-a
  • i-d, ii-c, iii-a, iv-b
  • i-a, ii-d, iii-b, iv-c
  • i-c, ii-b, iii-a, iv-d
232
Q.232. The novel Self-Help Group Bank Linkage Program (SHG-BLP) project which grew into a dominant microfinance model, was piloted by ________.
NABARD
233
Q.233. Under the current regulatory framework, what is the maximum tenure of a microfinance loan in India?
36 months
234
Q.234. How many digits does the MMID code of any commercial bank have?
7
235
Q.235. In which of the following economic accounts are transfer payments included?
Government account
236
Q.236. Which of these measures of money supply is referred to as the aggregate monetary resources?
M3
237
Q.237. In which of the following states did NABARD launch the E-Shakti project for the first time?
Jharkhand and Maharashtra
238
Q.238. The net worth of any bank is equal to________________
(Reserves + Loans) - Liabilities
239
Q.239. In India,_________________ fixes the CRR for the banks in the economy.
Reserve Bank of India
240
Q.240. In India, credit creation is done by:
Only C
241
Q.241. Which of the following is the most problematic and primary difficulty of barter exchanges as against money-based exchanges?
Barter exchanges require a double coincidence of wants
242
Q.242. Which of the following is a transfer payment?
All of a, b and c
243
Q.243. Fisher's quantity theory is explained by his famous equation given as __________.
MV = PT
244
Q.244. Arrange the following Development Financial Institutions (DFI) in the correct chronological order, according to the year they were set up.
(iii)-(i)-(ii)
245
Q.245. MUDRA is a financial institution set up by the Government of India for the development and refinancing of micro unit enterprises. The full form of MUDRA is:
Micro Units Development and Refinance Agency
246
Q.246. 'BFSI' stands for Banking, Financial Services and _________ in India. It is a broad term for industries that offer financial products and services.
Insurance
247
Q.247. Which of the following is also known as the 'lender of the last resort'?
RBI
248
Q.248. The central bank may________ to discourage credit in the economy.
increase bank rate
249
Q.249. Which of the following committees was constituted to study the issues and concerns in the Micro Finance Institution in 2010?
Malegam Committee
250
Q.250. Which of the following is NOT one of the scheduled public sector banks in India?
Bandhan Bank
251
Q.251. As of 2022, what was the highest-denomination currency note printed by the Reserve Bank of India?
₹10,000
252
Q.252. For a bank, the main liability is the____________
Deposits
253
Q.253. Cash reserve ratio is a _____ tool to control money supply.
Only II
254
Q.254. Which law of economics states "Bad money drives out good money"?
Gresham's Law
255
Q.255. Which among the following is the oldest joint stock bank in India?
Allahabad Bank
256
Q.256. The bank rate in the Indian economy is determined by the ________ .
Reserve Bank of India
257
Q.257. Which among the following is the sole note issuing authority in India?
Reserve Bank of India
258
Q.258. Money multiplier uses which of the following monetary instruments for its calculation?
Cash reserve ratio
259
Q.259. The minimum rate below which banks are not allowed to lend money except in cases specified by the Reserve Bank of India is called .
Base rate
260
Q.260. Which among the following was set up in 1956 by the Indian government by nationalising all the existing private sector life insurance companies?
Life Insurance Corporation of India
261
Q.261. Small Industries Development Bank of India (SIDBI) is regulated by ____.
Reserve Bank of India
262
Q.262. Α _______ account is one which is maintained by an Indian Bank in the foreign countries, usually in the currency of that country for the purpose of carrying out transactions there.
NOSTRO
263
Q.263. _______ became the first bank to get Reserve Bank of India's approval for rupee trade.
UCO Bank
264
Q.264. The National Payments Corporation of India was set up under the provisions of which act?
Payment and Settlement Systems Act, 2007
265
Q.265. In the XXI phase of sale of electoral bonds can be only purchased from which of the following institution?
SBI
266
Q.266. ________ is a legal declaration of a person who is unable to pay off debts.
Bankruptcy
267
Q.267. A bank that has a paid-up capital of and above qualifies for the schedule bank category as listed in the RBI Act 1934.
Rs 5 lakhs
268
Q.268. A type of loan that allows borrowers to make low payments in the initial phases but repayment of the balance amount in lump sum at maturity is known as ________.
Balloon Mortgage
269
Q.269. Which among the following is not an All India Financial Institution?
ICICI Bank
270
Q.270. The Reserve Bank of India introduced a comprehensive regulatory framework for NBFC-MFI on __________.
2 December 2011
271
Q.271. ________ is a record of assets and liabilities of any firm.
Balance sheet
272
Q.272. Which of the following is NOT a part of the institutional structure of rural banking?
Moneylenders
273
Q.273. If marginal propensity to consume is denoted by c, then government expenditure multiplier can be expressed as _______.
1 / (1 - c)
274
Q.274. _______ are those where a monthly installment is deposited in the accounts every month.
Recurring deposits
275
Q.275. The _______ and ______ determine the corridor for the daily movement in the weighted average call money rate.
Marginal standing facility, Reverse repo rate
276
Q.276. ________ is the currency in the hands of the public plus commercial bank reserves, also called ‘high-powered money’.
Monetary base
277
Q.277. Capital adequacy ratio for a NBFC - MFI is ________.
15% of the aggregate risk weighted assets
278
Q.278. Which one of these organisations issues one rupee currency notes and coins in India?
Ministry of Finance
279
Q.279. Open Market Operations conducted by the Reserve Bank of India (RBI) are of ______ types.
Two
280
Q.280. What is the total stock of money in circulation among the public at a particular point of time called?
Money supply
281
Q.281. Which of the following statements is INCORRECT?
Vault cash is also a part of money supply
282
Q.282. Commercial banks keep their deposits with RBI. These deposits are called ______.
Reserves
283
Q.283. For a NBFC- MFI, the maximum variance permitted for individual loans between the minimum and maximum interest rate ___________.
Cannot exceed 4 per cent
284
Q.284. ___________ is the money which is accepted as a medium of exchange because of the trust between the payer and the payee.
Fiduciary money
285
Q.285. Which of the following has been designated as the self-regulatory organisation for Micro finance institutions in India?
Sa-Dhan
286
Q.286. The Regional Rural Banks Act was passed in __________.
1976
287
Q.287. At a Regional Rural Bank, the share of the Government of India is______.
50%
288
Q.288. Which of the following was the first development bank in India?
Industrial Finance Corporation of India
289
Q.289. The Regional Rural Banks were established on the recommendations of the ______ on Rural Credit.
Narasimham Committee
290
Q.290. To which of the following sectors of the economy do Basel III norms belong?
Banking
291
Q.291. Which of the following is NOT a public sector insurance company?
SBI Life Insurance
292
Q.292. The 'Clean Note Policy' was announced by the Reserve Bank of India in the year ______.
1999
293
Q.293. What is the minimum amount which can be remitted through Real Time Gross Settlement (RTGS)?
₹2,00,000
294
Q.294. A paper instructing the bank to pay a specific amount from a person's account to another person in whose name it has been issued is known as:
Cheque
295
Q.295. Which of the following is a comprehensive and in-depth analysis of a country’s financial sector, done jointly by the World Bank and IMF in developing and emerging market countries?
Financial Sector Assessment Program
296
Q.296. In which year was the Securities Appellate Tribunal (SAT) established in India?
1992
297
Q.297. The Central Board of Directors of the RBI (Reserve Bank of India) is appointed/nominated for a period of _____ years.
Four
298
Q.298. In which year was the State Bank of India created following the passage of the Imperial Bank of India into state ownership?
1955
299
Q.299. The Reserve Bank of India also acted as the central bank for _______ till April 1947.
Burma
300
Q.300. Where is the corporate office of RBL Bank located?
Mumbai

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