Economy 594

Economics previous years Asked question in Various UPSC /SSC exams
1. The highest denomination of currency notes A. constant

in circulation as legal tender in India is at B. None of these
present: C. increasing
A. Rs.2000 D. decreasing
B. Rs. 50 Ans: D
C. Rs.100
D. Rs. 500 6. Which of the following is an indirect tax?
Ans: A A. Corporation Tax
B. Capital Gains Tax
2. Consider the following statement: C. Wealth Tax
The price of any currency in international D. Excise Duty
market is determined by the: Ans: D
1. WTO
2. Demand for goods/services provided by the 7. 'Liquidity trap' is a situation in which:
country concerned A. there is an excess of foregin exchange
3. Inflation differential between the country reserves in the economy leading to excess of
concerned and its major trading partners money supply
4. Stability of the government of the concerned B. people want to hold only cash because prices
country Of these statements: are falling everyday
C. people want to hold only. cash because there
A. 1, 2 and 4 are correct is too much of liquidity in the economy
B. 2, 3 and 4 are correct D. the rate of interest is so low that no one
C. 1, 3 and 4 are correct wants to hold interest bearing assets and people
D. 1, 2, 3, and 4 are correct wants to hold cash
Ans: B Ans: D
3. Which one of the following is different from 8. After textiles, India's second important
the others from the point of view of ownership? industry is :
A. Debenture of a Company A. Sugar
B. LIC Policy B. Cement
C. Bank Fixed Deposit C. Jute
D. Kisan Vikas Patra D. Iron and steel
Ans: B Ans: D
4. Match the following: Committees Chaired by 9. Consider the following statements:

A. Balance of Payments and Foreign Investment 1. Hariyali is a watershed development project
1. Rakesh Mohan sponsored by the Central Government.
B. Public Sector Enterprises Autonomy 2. Arjun 2. Hariyali also aims at enabling the urban
Sen Gupta population to conserve rain water.
C. Small Scale Industries 3. Rangarajan
D. Infrastructure Development 4. Abid Hussain A. Both 1 and 2
ABCD B. Neither 1 nor 2
C. 2 only
A. 3 2 4 1 D. 1 only
B. 1 2 3 4 Ans: D
C. 2 1 4 3
D. 1 4 2 3 10. The budget broadly comprises: (i) revenue
Ans: A budget, and (li) capital budget. Which of the
following item or items is/are not covered under
5. The contribution of agriculture to India's' the revenue budget?
economy is: I. Different proceeds of taxes and other duties
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levied by the government 15. The 'Year of Great Divide' refers to:
II. Interest and dividend on investments made by A. rapid growth rate in population after 1921
the government B. the declining sex ratio after 1921
III. Expenditure on running government and C. all the above
various services D. the slow-down in death rate after 1921
IV. Market loans raised by the government Ans: A
A. only II 16. What is Laissez-faire?

B. only IV A. Non-interference· of Government in economic
C. III and IV affairs
D. II and III B. None of these
Ans: B C. Mixed economy
D. Controlled economy
11. Which country is the largest debtor of UNO? Ans: A
A. Japan
B. India 17. Consider the following statements about
C. Mexico Sinking Fund:
D. U.S. 1. It is a method of repayment of public debt.
Ans: D 2. It is created by the government out of
budgetary revenues every year. Which of the
12. Which among the following is not correct statements given above is/are correct?
with regard to Sampoorna Grameen Rozgar A. 2 only
Yojana? B. Neither 1 nor 2
1. The case component of the programme is C. Both 1 and 2
borne exclusively by the Central Government. D. 1 only
2. Foodgrains are provided free of cost to the Ans: C
States/Union Territories.
Select the answer using the codes given below 18. Among Indian Economists who had done
A. 2 only pioneering work on National Income ?
B. 1 only A. P. N. Dhar
C. Both 1 and 2 B. V. K. R.V. Rao
D. Neither 1 nor 2 C. Prof. Shenoi
Ans: A D. Jagdish Bhagwati
Ans: B
13. Which' day is celebrated as 'National
Consumer Right Day? 19. ____ is the ex-officio chairman of Planning
A. 24th November Commission and National Development Council.
B. 24th October A. President
C. 24th December B. Commerce Minister
D. 24th September C. Finance Minister
Ans: C D. Prime Minister
Ans: D
14. Who of the following was the author of the
chapter onObjectives of Planned Development 20. Increase in Oil Pool Deficit implies:
for the Third Five Year Plan? A. domestic oil price is comparatively more than
A. Morarji Desai international price
B. Lal Bahadur Shastri B. none of these
C. C.D. Deshmukh C. increasing gap between international and
D. Jawaharlal Nehru domestic oil prices
Ans: A D. government's Fiscal Deficit goes up
Ans: C

21. What is the correct sequence of the the country
following strategies used for Five Year Plans in C. dividing national income by the population
India? D. dividing the total national capital with the
1. Balanced growth profit earned
2. Rehabilitation of the economy Ans: C
3. Industrial development
27. What is the role of 'Over-the Counter
A. 2, 3, 1 Exchange' (OTC)?
B. 3, 2, 1 A. Help in the introduction of multi-tiered
C. 1, 3, 2 markets and import liquidity to them
D. 2, 1, 3 B. All of the above
Ans: A C. To arrange funds from different foreign banks
of developing/ under developing countries
22. Who among the following are not protected D. Help to overcome the balance of payment
against inflation.? crisis
A. Salaried class Ans: A
B. Industrial workers
C. Pensioners 28. A deflator is a technique of:
D. Agricultural farmers A. adjusting for change in commodity
Ans: D B. accounting for decline of GNP
C. adjusting for changes in price level
23. What is the main source of revenue to meet D. accounting for higher increase of GNP
different expenditures? Ans: C
A. Internal borrowings
B. Customs duties 29. Which of the following pairs are correctly
C. Income tax matched?
D. Excise duties 1. Dow Jones: New York
Ans: A 2. Hang Seng: Seoul
3. FTSE-100:London
24. In India, the tax proceeds of which one of Select the correct answer using the codes given
the following as a percentage of gross tax below:
revenue has significantly declined in the last five
years? A. 1 and 2
A. Excise duty B. 1, 2 and 3
B. Service tax C. 1 and 3
C. Personal income tax D. 2 and 3
D. Corporation tax Ans: C
Ans: A
30. What does S & P 500 relate to?
25. A tax Which is paid by the person on whom A. A new technique in e-business
the tax is incident is called a : B. Supercomputer
A. direct tax C. An index of stocks of large companies
B. indirect tax D. A new technique in bridge building
C. local tax Ans: C
D. rate
Ans: A 31. Which of the following Mahatma Gandhi
series of currency notes issued by the RBI has a
26. The per capita income is obtained by: drawing of the 'Parliament House' depicted on
A. estimating the minimum income of individual it?
citizens A. Rs. 50
B. summing up the income of all the citizens of B. Rs. 500

C. Rs. 100 C. Fundamental Rights
D. Rs. 10 D. Directive Principles of State policy
Ans: A Ans: D
32. Which of the following is/are correct? 37. The basic attribute of a formal organization
I. Bulk of unemployment in India is in rural areas is :
II. The disguised unemployment in agricultural A. esteem and prestige
sector is perennial B. dominance and supremacy
III. Industrialisation has rendered several people C. rules and regulations
job-less in India D. roles and duties
Ans: C
A. I, II and III
B. I only 38. 'Conditionality' of an IMF loan to a member
C. I and II country stands for:
D. II and III A. schedule of disbursement of loan installments
Ans: C B. an assessment of the credit worthiness of the
borrower
33. Which one of the following Indian banks is C. the policy steps which the borrower country
not a nationalized bank? must take
A. Federal bank D. interest and repayment terms of the loan
B. Corporation Bank Ans: C
C. Vijaya Bank
D. Dena Bank 39. Deficit financing leads to inflation in
Ans: A general, but it can be checked if:
A. aggregate demand is increased only
34. Put in chronological order the following B. government expenditure leads to increase in
Special features/objectives of different Five Year aggregate supply in ratio of aggregate demand
Plans as they were first formulated: C. all the above
1. Mahalanobis strategy D. all the expenditure is denoted national debt
2. Modernisation payment only
3. Removal of Poverty Ans: B
4. Emphasis on employment generation
40. What percentage of country's demand for
A. 3,4,1,2 natural rubber is met by indigenous production:
B. 1,3,2,4 A. 100%
C. 2,1,3,4 B. 80%
D. 1,2,3,4 C. 97%
Ans: B D. 86%
Ans: D
35. Which of the following mints undertakes
refining of gold for licensed gold dealers and 41. Rising prices lead to all but one of the
production of medals for defence services? following:
A. None of the above A. adverse effect on speculation
B. The Kolkata Mint B. adverse effect on balance of payments
C. The Hyderabad Mint C. generation of black money
D. The Mumbai Mint D. promotion of inequalities
Ans: D Ans: A
36. Planning in India derives its objectives from: 42. Fiscal deficit in the Union Budget means:
A. Fundamental Duties A. the sum of budgetary deficit and net increase
B. Preamble in internal and external borrowings

B. the sum of monetised deficit and budgetary 3. Adopting suitable policies which attract
deficit greater FDI and more funds from FIIs.
C. the difference between current expenditure Which of the above action/actions can help in
and current revenue reducing the current account deficit?
D. net increase in Union Government's A. 1 and 3
borrowings from the Reserve Bank of India B. 2 and 3
Ans: A C. 1 and 2
D. 3 only
43. The situation with increasing unemployment Ans: A
and inflation is termed as:
A. galloping inflation 49. Who among the following was the first
B. hyperinflation Chairman of the Planning Commission?
C. reflation A. Dr. Rajendra Prasad
D. stagflation B. J.B. Kripalani
Ans: D C. Pt. Jawahar Lal Nehru
D. Sardar Vallabhbhai Patel
44. The National Development Council gets its Ans: C
administrative support from:
A. Planning Commission 50. The rate of growth of the tertiary sector has
B. Finance Commission been:
C. Administrative Reforms Commission A. lower than the overall rate of growth of the
D. Sarkaria Commission net domestic product
Ans: A B. same as the overall rate of growth of the net
domestic product
45. The ideal average NPK ratio aggregated for C. fluctuating when compared to growth of net
the country as a whole is : domestic product
A. 4 : 1 : 2 D. higher than the overall rate of growth of the
B. 2 : 4 : 1 net domestic product
C. 4 : 2 : 1 Ans: D
D. 4 : 3 : 2
Ans: C 51. The Securities and Exchange Board of India
has been set up to :
46. Stagflation implies a case of: 1. protect the interests of investors
A. adverse balance of trade 2. to regulate the activities of brokers in the
B. rising wages and employment stock market
C. recession plus inflation 3. to ensure transparency in operation in the
D. galloping inflation stock market.4. to encourage a healthy growth
Ans: C of the stock market Choose your answer from:
47. Who is the originator of Green Revolution in A. 1, 2 and 3

India? B. 1, 2, 3 and 4
A. None of these C. 1 and 2
B. M.S. Swaminathan D. 1, 2 and 4
C. Garry Backer Ans: B
D. Norman E. Borlaug
Ans: D 52. Among the causes of inflation can be listed:
1. slow growth in agricultural output
48. Consider the following actions which the 2. increasing non-development expenditure of
Government can take: Government
1. Devaluing the domestic currency. 3. rapid population growth
2. Reduction in the export subsidy. 4. rapid growth in costly imports

A. 1 and 4 only D. Chemicals other than fertilizers
B. 2 and 3 Ans: C
C. 1, 2, 3 and 4
D. 1 and 2 58. In which year was 'Rajiv Gandlii Grameen
Ans: C Vidyutikaran Yojana' launched?
A. 2004
53. One of the main factors that led to rapid B. 2005
expansion of Indian exports is : C. 2007
A. diversification of exports D. 2006
B. imposition of import duties Ans: B
C. liberalisation of the economy
D. recession in other countries 59. Over the last few years:
Ans: C 1. the value of imports has increased at a faster
rate as compared to exports
54. Under the Constitution, the power to raise 2. exports have fallen as compared to imports
and disburse public funds: 3. both exports and imports have risen
A. has not been given to anyone 4. the balance of trade has been favourable to
B. has been given to the Finance Commission India
C. has been vested in Union Government
D. has been divided between the Union and A. 1, 3 and 4
State Governments B. 1, 2 and 3
Ans: D C. 1
D. 1 and 3
55. In the context of Indian economy, consider Ans: D
the following statements:
1. The growth rate of GDP has - steadily 60. After the initiation of economic reforms in
increased in the last five years. 1991-92 the percentage share of:
2. The growth rate in per capita income has A. direct taxes decreased and that of indirect
steadily increased in the last five years. taxes increased in gross tax revenue
Which of the statements given above is/are B. Both direct and indirect taxes increased in
correct? gross tax revenue
A. 2 only C. both direct and indirect taxes decreased in
B. Both 1 and 2 gross tax revenue
C. 1 only D. direct taxes increased and that of indirect
D. Neither 1 nor 2 taxes decreased in gross tax revenue
Ans: D Ans: B
56. During which Plan did prices show a 61. Convertibility of the rupee implies:
decline? A. allowing the value of the rupee to be fixed by
A. Fifth market forces
B. Third B. freely permitting the conversion of rupee to
C. First other major currencies and vice versa
D. None of the above C. developing an international market for
Ans: C currencies in India
D. being able to convert rupee notes into gold
57. In the last one decade, which one among the Ans: B
following sectors has attracted the highest
Foreign Direct Investment inflows into India? 62. The Minimum Needs Programme aims to:
A. Food processing A. None of these
B. Services sector B. improve the living condition of the poor and
C. Telecommunication also promote their education and health

C. provide means for greater mechanization of 67. Which one of the following statements is
agriculture correct? Fiscal Responsibility and Budget
D. provide necessary resources by way of Management Act (FRBMA) concerns
refinance to primary lenders A. neither fiscal deficit nor revenue deficit
Ans: B B. revenue deficit only
C. fiscal deficit only
63. Taxation and the government's expenditure D. both fiscal and revenue deficit
policy are dealt under the : Ans: D
A. fiscal policy
B. monetary policy 68. Ever greening of patents is done by
C. trade policy A. citing another use of the same product
D. budget B. citing another product with same use
Ans: A C. applying for extension of patent term
D. citing another process of forming the same
64. MODVAT is different from VAT in the sense product
that: Ans: C
1. under MODVAT, tax is levied only on value
addition while under VAT, excise is imposed on 69. Which of the following accounts for Cost-
final value and then rebate is given on inputs Push Inflation?
2. MODVAT is only at the production stage while A. Increase in population
VAT extends both to production and distribution B. Increase in money supply
stage C. Increase in non-plan expenditure
3. under MODVAT, excise is levied on final value D. Increase in indirect taxation
and then rebate is given on inputs while under Ans: D
VAT, tax is levied only on value addition
4. MODVAT implies nationalization of excise 70. Present Industrial policy in India aims at :
duty only while VAT implies nationalization of A. promoting the private sector units
excise, sales and turnover taxes etc. also Choose B. discourage the performance of the private
correct answer from: sector
A. 2, 3 and 4 C. increasing the production of public sector
B. 1, 2 and 4 units
C. 1, 3 and 4 D. accelerating the performance of mixed
D. 1, 2, 3 and 4 economy
Ans: A Ans: D
65. What are gilt-edged securities? 71. During which Five Year Plan was the total
A. Securities issued by the private sectors expenditure on agriculture the highest?
B. Securities issued by the multinationals A. Third Five Year Plan
C. Securities issued by the joint venture B. Fourth Five Year Plan
companies C. Second Five Year Plan
D. Securities issued by the government D. First Five Year Plan
Ans: D Ans: B
66. Which of the following is not an affiliate of 72. National Income total reveals:
the Reserve Bank of India? 1. Production side of the economy
A. The Industrial Development Bank of India 2. Distribution side of the economy
B. Agricultural Refinance Corporation 3. Expenditure side of the economy
C. Unit Trust of India Choose your answer from
D. Deposit Insurance Corporation
Ans: C A. 2 only
B. 1, 2 and 3

C. 3 only government from the beneficiaries of particular
D. 1 only schemes
Ans: A D. Cess-a compulsory levy collected by the
government for a particular purpose from all
73. Which one among the following is not true persons
for Special Economic Zones? Ans: B
A. No permission for subcon- tracting
B. No licence is required for import 78. A high rate of inflation tends to worsen
C. Manufacturing and service activities are balance of payments because:
allowed A. prices of imported goods rise
D. No routine examination of cargo for B. prices of exported goods rise making exports
export/import by customs authorities less competitive
Ans: A C. prices of imported goods fall and hence more
is imported
74. Cyclical unemployment refers to: D. prices of exported goods fall and hence less
A. seasonal unemployment amount is obtained in terms of foreign exchange
B. unemployment during recessionary phase of a Ans: B
trade cycle
C. disguised unemployment 79. The growth rate of agricultural production
D. voluntary unemployment was negative in the:
Ans: B A. Fourth Plan
B. Third Plan
75. Consider the following statements: C. First Plan
1. The repo rate is the rate at which other banks D. Second Plan
borrow from the Reserve Bank of India. Ans: B
2. A value of 1 for Gini Coefficient in a country
implies that there is perfectly equal income for 80. Ten rupee notes bear the signature of:
everyone in its population. A. President
Which of the statements giver, above is/are B. Governor, Reserve Bank of India
correct? C. Secretary, Ministry of Finance
A. 2 only D. Finance Minister
B. 1 only Ans: B
C. Both 1 and 2
D. Neither 1 nor 2 81. Excise Duties are taxes on :
Ans: B A. import of commodities
B. sale of commodities
76. Which among the following sectors received C. production of commodities
the largest Central plan outlay in the last few D. export of commodities
Central Government annual budgets? Ans: C
A. Energy
B. Social Services 82. The highest sector wise contribution to
C. Agriculture and allied activities gross domestic saving comes from:
D. Communication A. household sector
Ans: A B. cooperative sector
C. private corporate sector
77. Which of the following is wrongly matched? D. public sector
A. Proportional tax-a tax levied at the same time Ans: A
at all levels of the base
B. Corporation tax-levied by corporations for 83. All taxes come under:
civic amenities A. capital receipts
C. Rate-a compulsory levy collected by the B. revenue receipts

C. public debt B. 2 only
D. both (a ) and (b ) C. 1 and 2
Ans: B D. 1, 2 and 3
Ans: D
84. World Development Report is an annual
publication of: 88. National income of India is compiled by:
A. United Nations Development Programme A. Central Statistical Organisation
B. World Trade Organisation B. Finance Commission
C. International Monetary Fund C. Indian Statistical Institute
D. International Bank of Reconstruction and D. National Development Council
Development Ans: A
Ans: D
89. Among the following who are eligible to
85. Which one among the following statements benefit from theMahatma Gandhi National Rural
is correct? Employment Guarantee Act ?
A. In spite of border problems, India's trade with A. Adult members of any household
China registered a quantum jump during the B. Adult members of only the scheduled Caste
years 2001-2010 and scheduled tribe households
B. While India-China trade has registered a C. Adult members of below poverty line (BPL)
quantum jump between the years 2001-2010, households
both the countries have ensured parity of trade D. Adult members of households of all backward
C. The stand-off between India and China on communities
Pakistan and Arunachal Pradesh did not let Ans: A
India's trade to grow with China in the years
2001-2010 as much as it grew in the years 1991- 90. Investment in public works is known as :
2001 A. capital expenditure
D. Due to border problems, India's trade with B. either (a ) or ( b)
China did not register a quantum jump between C. revenue expenditure
the years 2001·2010 D. current expenditure
Ans: A Ans: A
86. The effect of inflation on tax revenue results 91. Private Sector Mutual Funds in India were
in a situation known as : permitted in
A. disinflation A. 1994
B. reflation B. 1964
C. stagflation C. 2001
D. fiscaldrag D. 1993
Ans: D Ans: D
87. Which of the following statements about 92. The period of high inflation and low
indirect taxes in India is/are true? economic growth is termed as:
1. Yield from indirect taxes is much more than A. take-off stage in economy
that from direct taxes B. none of these
2. Indirect taxes have grown faster than direct C. stagnation
taxes since independence D. stagflation
3. Indirect taxes are ultimately paid for by Ans: D
persons who do not actually pay the taxes to the
Government 93. The minimum effect of Direct Taxes is on :
4. Increase in indirect taxes is a welcome feature A. consumer goods
in a developing country B. income
A. 1, 2 and 4 C. capital goods

D. food price 98. With reference to Union Government, which
Ans: B one of the following undertake the country-wide
Economic Census?
94. Which of the following features indicate that A. The National Sample Organization
Indian economy is of the developing category? B. Planning Commission
I. Occupation mainly agricultural C. Department of Expenditure
II. Chronic unemployment D. The Central Statistical Organization
III. Poor quality of human capital Ans: D
lIV. Low per capital intake of proteins
99. The following is the list of four integrated
A. II and III steel plants in the country
B. I and IV 1. Bhilai
C. I, II, III and IV 2. TISCO
D. I, II and III 3. IISCO
Ans: C 4. Bokaro
Which of the following combinations lists all the
95. Consider the following statements with plants in the public sector ?
regard to Statutory liquidity Ratio (SLR) :
1. To meet SLR, commercial banks can use cash A. None of these
only. B. 1, 2 and 4
2. SLR is maintained by the banks with C. 2, 3 and 4
themselves. D. 1, 3 and 4
3. SLR restricts the banks' leverage in pumping Ans: D
more money into the economy.
Which of the statements given above is/are 100. 'Globalisation of Indian Economy' means:
correct? A. giving up programmes of import substitution
A. 1 and 3 B. stepping up external borrowings
B. 2 and 3 C. establishing Indian business units abroad
C. 1, 2 and 3 D. having minimum possible restrictions on
D. 2 only economic relations with other countries
Ans: B Ans: D
96. The system of value added taxation is 101. Which of the following is called a 'banker's
applicable to: cheque' ?
A. estate duty A. Demand draft
B. excise duties B. Debit card
C. taxes on agricultural income C. Pay order
D. income tax D. Fixed deposit
Ans: B Ans: A
97. A rapid increase in the rate of inflation is 102. When does the problem of unfavourable
sometimes attributed to the base effect What balance of payment arise?
isbase effect? " A. When exports decrease
A. It is the impact of drastic deficiency in supply B. When imports increase
due to failure of crops C. When exports increase
B. It is the impact of the price levels of previous D. When imports are greater than exports
year on the calculation of inflation rate Ans: D
C. None of the statements
D. It is the impact of the surge in demand due to 103. With reference to the government's
rapid economic growth welfare schemes, consider the following
Ans: A statements:

1. Under the Antyodaya Anna Yojana, the food in India to launch a nationwide cellular service
grains are available to the poorest of the poor at one time
families at Rs. 2 per kg for wheat and Rs.3 per B. MTNL is listed on NYSE
kg for rice. C. IPCL is India's largest petrochemical
2. Under the National Old Age Pension Scheme, company
the old and destitute are provided Rs. 75 per D. RIL is the largest private sector· company in
month as Central Pension, in addition to the India
amount provided by most State Governments. Ans: C
3. Government of India has allocated 25 kg food
grains per below Poverty Line family per month, 108. The Nehru-Mahalanobis strategy of
at less than half the economic cost. development guided the planning practice in
Which of these statements are correct? India from the
A. 1 and 2 A. First Five-Year Plan to the Eighth Five-Year
B. 2 and 3 Plan
C. 1 and 3 B. Second Five-Year Plan to the Seventh Five-
D. 1, 2 and 3 Year Plan
Ans: D C. First Five-Year Plan to the Sixth Five-Year
Plan
104. The acronym SRO, being used in the D. Fourth Five-Year Plan to the Eighth Five-Year
capital market for various market participants, Plan
stands for which one of the following? Ans: B
A. Securities Regulatory Organisations
B. Securities Roll-back Operators 109. Which of the following best defines the
C. Small Revenue Operators term Letter of Credit' as used frequently in bank
D. Self-Regulatory Organisations transactions?
Ans: D A. Statement showing outstanding- deposits and
credits of a bank for a particular period
105. There are three major groups of B. An order from a bank to another bank abroad
commodities in the Wholesale Price Index. These authorising the payment of a particular amount
are: to a person named in the letter
1. primary articles 2. fuel, power, light and C. An unconditional undertaking given by a bank
lubricants ensuring the payment of a particular amount to
3. manufactured products the drawee at a given date
4. food articles and industrial raw materials D. Letter by a bank to a person stating the terms
A. 1 and 3 and conditions of the loan sanctioned to him by
B. 1, 2 and 3 the bank
C. 2, 3 and 4 Ans: D
D. 1, 3 and 4
Ans: B 110. The main function of the Exim Bank is:
A. to conserve foreign exchange
106. All of the following are subsidiaries of the B. to prevent unlicensed transaction
State Bank of India, except: C. to help RBI in the regulation of foreign
A. State Bank of Bikaner and Jaipur exchange
B. Central Bank of India D. to promote exports and curtail imports
C. State Bank of Hyderabad Ans: D
D. State Bank of Patiala
Ans: B 111. Which of the following are not correct
assessments of the decades of India's Five-Year
107. With reference to India, which one of the Plans?
following statements is NOT correct? 1. There has been very low capital formation
A. BSNL is the first telecom service organization 2. Growth has favoured the better off

3. Production has increased substantially though 2. the level of employment
often falling short of targets 3. changes in the general level of prices
4. The public sector has contributed nothing to 4. determination of prices of goods and services
economic growth
A. 3 and 4 A. 1 and 4
B. 2 and 3 B. 1 and 2
C. 1 and 4 C. 2 and 3
D. 1, 2 and 3 D. 3 and 4
Ans: C Ans: A
112. The functions of the Reserve Bank of India 117. Mashelkar Committee was constituted to
are: report on :
1. issuing all notes and coins A. auto fuel policy
2. distributing all notes and coins B. black money
3. formulating monetary policy C. constitutional changes
4. acting as agent of Government in respect of D. economic policy
India's membership of the IMF Ans: A
A. 1, 2, 3 and 4
B. 1, 3 and 4 118. Sickness of small units can be because of
C. 2, 3 and 4 the factors:
D. 2 and 3 1. under-utilisation of capacity 2. non-payment
Ans: C by the large firms
3. dependence on borrowed funds
113. EXIM Bank was set-up in : 4. lack of management expertise
A. 1986
B. 1982 A. 1, 2 and 3
C. 1985 B. 3 and 4
D. 1980 C. 1, 2 and 4
Ans: B D. 2, 3 and 4
Ans: C
114. The National Income is more at current
prices than at constant prices because: 119. What is 'Recession'?
A. increase in price is more than production A. None of these
B. increase in price is equal to increase in B. Rise in the cost of production, especially
production because of wage increase
C. increase in production is more than increase C. Increase in money supply without a matching
in price increase in production
D. of decrease in production only D. Reduction in production and employment for
Ans: C want of sufficient demand for goods
Ans: D
115. The cause of inflation is:
A. increase in money supply 120. The annual financial statement shows the
B. decrease in money supply and fall in receipts and payments of the government under
production the 3 parts in which government accounts are
C. fall in production kept in :
D. increase in money supply and fall in 1. Consolidated Fund
production 2. Contingency Fund
Ans: D 3. Public Account
Which of the following items are covered under
116. Microeconomics is concerned with: the Public Account?
1. behaviour of industrial decision-makers A. Funds placed at the disposal of the President

B. Loans raised by the government ABCD
C. All revenue received by the government
D. Transactions relating to provident fund, small A. IV II I III
savings, etc. B. III I IV II
Ans: D C. I IV III II
D. I II III IV
121. For international payments, the Indian Ans: B
currency is linked to :
A. American Dollar 125. Match the following:
B. British Sterling List I List II
C. None of the above A. TRIPS 1. World Trade Organisation
D. Gold Standard B. SLR 2. Public Issues
Ans: A C. SEBI 3. International Monetary Fund
D. NEFTA 4. Reserve Bank of India
122. Which of the following gives a correct 5. USA and Canada
picture of the share of various sectors in ABCD
economic growth in India over the years?
1. Primary sector-stagnant A. 1 4 2 5
2. Secondary sector-increasing B. 4 1 2 5
3. Tertiary sector-decreasing C. 4 1 2 5
D. 1 4 3 5
A. 2 only Ans: A
B. 2 and 3
C. 1 only 126. Which of the following are the main causes
D. 1 and 2 of slow rate of growth of per capita income in
Ans: A India?
1. High capital-output ratio
123. In a country like India, why should an 2. High rate of growth of population
increase of direct taxes be preferred to an 3. High rate of capital formation
increase in indirect taxes? 4. High level of fiscal deficits
A. It is easy to realise direct taxes and is thus
useful in a country troubled by tax evasion A. 2, 3 and 4
B. Direct taxes serve the end of Socialism by B. 1 and 4
taking away the excessive wealth from the rich C. 1, 2, and 4
C. All of the above D. 1 and 2
D. Direct taxes involve the well-off sections of Ans: D
the society while indirect taxes affect the masses
Ans: C 127. Which one of the following statements
regarding the levying, collecting and distribution
124. Match the following: of Income Tax is correct?
A. Partial convertibility I. Unified exchange rate, A. The Union levies, collects and distributes the
applied for export and import of goods only, i.e., proceeds of income tax between itself and the
visible transaction of BoP states
B. Convertibility on trade account II. Currency B. Only the surcharge levied on income tax is
can be converted on all accounts shared between the Union and the States
C. Convertibility on current account III. 60% of C. The Union levies, collects and keeps all the
the foreign exchange to be converted at market proceeds of income tax to itself
rates and rest at official rate D. The Union levies and collects the tax but all
D. Full convertibility IV. Full convertibility in all the proceeds are distributed among the states
visible and invisible transaction of goods and Ans: A
services

128. Mixed economy means an economy where need to nationalise any industry
A. both agriculture and industry are equally B. in the case of the imperative planning, the
promoted by the state market mechanism is entirely replaced by a
B. economy is controlled by military as well as command hierarchy, while in the case of
civilian rulers indicative planning, it is looked upon as a way to
C. there is importance of small scale industries improve the functioning of the market system
along with heavy industries C. it is easier to achieve targets in imperative
D. there is co-existence of public sector along type of planning
with private sector D. in the case of imperative planning, all
Ans: D economic activities belong to public sector,
while in the other type they belong to the private
129. Disguised unemployment in India is mainly sector
related to : Ans: B
1. agricultural sector
2. rural area 133. Which of the following can be used for
3. factory sector checking inflation temporarily?
4. urban area A. Increase in wages
B. Decrease in taxes
A. 2 and 4 C. Decrease in money supply
B. 1 and 2 D. None of the above
C. 3 and 4 Ans: C
D. 1 and 3
Ans: B 134. Which one of the following countries is not
a member of ASEAN?
130. Which of the following could be said to A. Bangladesh
have prevented the 'trickle down' effects in B. Vietnam
Indian economy? C. Myanmar
1. Increased dependence of agriculture on D. Brunei Darussalam
purchased inputs and privately managed Ans: A
irrigation
2. More employment of labour by larger 135. Once the demands for grants and
landholding farmers expenditure of different departments are passed
3. Lowered participation of women in by the Parliament, a bill to draw money from
agricultural workforce due to new technology Consolidated Fund India for these purposes is
4. The failure of the Green Revolution introduced. This bill is called:
A. 1 and 3 A. credit budget bill
B. 1 and 2 B. money bill
C. 2 and 3 C. finance bill
D. 2 and 4 D. appropriation bill
Ans: A Ans: D
131. Success of 4th plan was obstructed by : 136. Which of these programs has not been
A. war with Pakistan included in the Swarna Jayanti Swarozgar
B. poor monsoon Yojana?
C. All of the above A. JR
D. problem of Bengal refugees B. DWCRA
Ans: C C. IRDP
D. TRYSEM
132. The basic difference between imperative Ans: A
and indicative planning is that:
A. in the case of indicative planning, there is no 137. With reference to the Government of

India's various programmes, what is D. steel production
NirmalGram Puraskar? Ans: C
A. It is an incentive scheme of scholarships for
the single girl child in families in villages. 142. Consider the following events:
B. It is an incentive scheme Panchayati Raj 1. Conversion of Imperial Bank of India into
institutions. S.B.I.
C. It is an incentive scheme for schools in the 2. Establishment of NABARD
villages for computer education. 3. Setting up of RRBs
D. It is an incentive scheme of scholarships for 4. Nationalisation of R.B.I.
female sportspersons from villages who The correct chronological sequence of these
represent their states in any game. events is :
Ans: B A. 1, 4, 2, 3
B. 4, 1, 3, 2
138. Which of the following would signify C. 4, 1, 2, 3
scarcity in economics? D. 1, 4, 3, 2
A. Availability of post-graduates for jobs of Ans: B
typists
B. Availability of 10 kg of rice against a demand 143. Among the remedies of inflation we cannot
for 15 kg include:
C. Quantity supplied remains the same when A. lowering bank rate
price changes B. reducing budgetary deficit
D. Production of 100 kg of a certain item instead C. better capacity utilisation
of the targeted 150 kg D. an efficient public distribution system
Ans: B Ans: A
139. The Green Revolution has led to : 144. Unemployment in a developing country
1. spurt in all foodgrains production generally takes place due to :
2. increase in regional inequalities A. switch over from one job to another
3. reduction in inter-personal inequalities within B. seasonal factors
a region C. lack of effective demand
4. good production in wheat D. lack of complementary factors of production
Ans: D
A. 2, 3 and 4
B. 1 and 3 145. Who is the Deputy Chairman of Planning
C. 1, 2 and 3 Commission?
D. 2 and 4 A. Commerce Minister
Ans: D B. Finance Minister
C. None of the above
140. Gross National Income is always more than D. Prime Minister
Net National Income because it includes: Ans: C
A. indirect taxes
B. direct taxes 146. The World Bank and IMF gives
C. capital consumption allowance respectively:
D. foreign income A. both long term credits
Ans: C B. long term and short term credits
C. short term and long term credits
141. In India, the Public Sector is most D. both short term credits
dominant in : Ans: B
A. organised term-lending financial institutions
B. transport 147. The States' debt does not include:
C. commercial banking A. loans from the Central Government

B. treasury bills issued to international financial 153. In India, maximum number of workers are
institutions employed in :
C. Provident Funds A. iron and steel industry
D. loans from State Bank of India B. textile industry
Ans: B C. petrochemical industry
D. automobile industry
148. Oil Pool Deficit is a deficit: Ans: B
1. in the balance of payments
2. that the government owes to the world bank 154. Devaluation of currency by a country is
3. in the oil pool account meant to lead to :
4. that the government owes to the oil 1. expansion of import trade
companies 2. promotion of import substitution
Choose your answer from: 3. expansion of export trade
A. 1 and 3
B. 2 and 3 A. 1 and 4
C. 2 and 4 B. 1 and 2
D. 3 and 4 C. 2 and 3
Ans: D D. 1 only
Ans: C
149. In which one of the following countries is
Rupee its currency? 155. Who among the following is most
A. Malaysia benefitted from inflation?
B. Seychelles A. Debtors
C. Maldives B. Savings Bank Account holders
D. Bhutan C. Creditors
Ans: B D. Government pensioners
Ans: A
150. 'Devaluation' means:
A. converting rupee into gold 156. Which of the following gives an accurate
B. None of these measurement of economic development through
C. making rupee dealer in comparison to some Five Year Plans?
foreign currency A. Rise in national income and per capital
D. lowering of the value of one currency in income
comparison of some foreign currency B. Development of industrial towns and
Ans: D industrial estates
C. Development of railways and roadways
151. Rolling plan was designed for the period: D. Development of education and health services
A. 1985-90 Ans: A
B. 1980-85
C. 1978-83 157. The most appropriate measure of a
D. 1974-97 country's economic growth is the:
Ans: C A. gross domestic product
B. net national product
152. Which one of the following is the most C. per capita real income
important item of non-plan expenditure? D. net domestic product
A. Interest payment Ans: C
B. Loans to public enterprises
C. Fertiliser subsidies 158. Which of the following is not required
D. Defence while computing Gross National Product (GNP)?
Ans: A A. Per capita income of citizens
B. Purchase of goods by government

C. Net foreign investment Ans: B
D. Private investment
Ans: A 165. In 1921, the Presidency Banks of Bengal,
Madras and Bombay were nationalised to give
159. World Bank is a body: birth to:
A. of non-official, generous individuals A. State Bank of India
B. of major banks operating in different B. Syndicate Bank
countries C. Punjab and Sindh Bank
C. that controls worldwide foreign exchange D. Punjab National Bank
operations Ans: A
D. that gives aid to developing countries
Ans: D 166. Which is the best measure of economic
growth of a country ?
160. The largest Public Sector Bank in India is: A. GDP
A. Indian Overseas Bank B. Net revenue
B. State Bank of India C. GNP
C. Punjab National Bank D. None of these
D. Central Bank Ans: C
Ans: B
167. Which Committee's recommendations are
161. When the productive capacity of the being followed for estimating Poverty Line in
economic system of a State is inadequate to India?
create sufficient number of jobs, it is called A. Lakdawala Committee
A. seasonal unemployment B. Chakravorty Committee
B. disguised unemployment C. Chelliah Committee
C. structural unemployment D. Dutt Committee
D. cyclical unemployment Ans: A
Ans: C
168. Operation Blackboard aims at
162. Which industry earns the second highest, A. providing education to urban slum dwellers
net foreign exchange from the trade? B. opening of new schools specially for female
A. Gems and ornaments children
B. Engineering goods industry C. providing primary education in an
C. Steel industry educationally backward area
D. Textile industry D. promoting adult literacy
Ans: B Ans: D
163. Which Agriculture export item is second in 169. Match the following:
case of India? A. Boom 1. Business activity at a high level with
A. Oil cake increasing income, output and employment at
B. Marine product macro level
C. Sugar B. Recession 2. Gradual fall in income, output
D. Rice and employment with business activity in a low
Ans: D gear
C. Recovery 3. Steady rise in the general price
164. When was decimal coinage introduced in level and income, output and employment
India? D. Depression 4. Unprecedented level of
A. 1960 unemployment and drastic fall in income and
B. 1957 output
C. 1947 ABCD
D. 1950 A. 2 1 4 3

B. 1 2 4 3 D. 1, 2 and 4
C. 2 1 3 4 Ans: C
D. 1 2 3 4
Ans: D 175. Bank rate is the rate at which:
A. the Reserve Bank of India gives credit to
170. The banks are required to maintain a commercial banks
certain ratio between their cash in hand and B. a bank lends to the public
total assets. This is called: C. the Reserve Bank of India lends to the public
A. SLR (Statutory Liquid Ratio) D. the Government of India lends to other
B. CBR (Central Bank Reserve) countries
C. SBRC (Statutory Bank Ratio) Ans: A
D. CLR (Central Liquid Reserve)
Ans: A 176. Which of the following is correct regarding
the Gross Domestic Saving In India?
171. Which of the following Mahatma Gandhi A. Contribution of Corporate sector is the
series of currency notes issued by the RBI has largest
ecology depicted on it? B. None of these
A. Rs. 100 C. Contribution of Household sector is the
B. Rs. 500 largest
C. Rs. 5 D. Contribution of Government sector is the
D. Rs. 50 largest
Ans: A Ans: C
172. Broad money in India is : 177. Consider the following statements: (A ) In

A. M4 India since independence the share of the
B. M1 primary sector has been declining while the
C. M2 shares. of the secondary and tertiary sectors
D. M3 have been increasing (B ) This trend shows that
Ans: D Indian economy is passing through the transition
from an agricultural to an industrial economy
173. A Multinational is: While one of the following is correct?
A. a company operating in several countries A. A is wrong, B is correct
B. a company that operates only in those B. both A and B are correct
countries that do not have import restrictions C. both A and B are wrong
C. a company which does charitable work in D. A is correct, B is wrong
poor countries Ans: B
D. a company having shareholders from more
than one country 178. Which of the following are the public
Ans: A sector undertakings of the Government of India?
1. Balmer Lawrie and Company Ltd.
174. Which of the following constitute short- 2. Dredging Corporation of India
term sources of finance for small scale 3. Educational Consultants of India Ltd.
industries? Select the correct answer using the code given
1. Private money lenders below
2. Loans by commercial banks
3. Credit Guarantee schemes A. 1 and 3 only
4. National Small Industries Corporation B. 1 and 2 only
C. 1, 2 and 3
A. 1 only D. 2 and 3 only
B. 1, 2, 3 and 4 Ans: C
C. 1, 2 and 3

179. Import substitution implies below:
A. increasing domestic supply of goods by A. 1 and 2
imposing import restrictions B. 1, 2 and 4
B. importing new items in place of old items of C. 1, 2, 3 and 4
import D. 1, 2 and 3
C. replacing import items by domestic Ans: C
production of such items
D. gradual reduction of imported goods to save 185. Which of the following agencies has the
foreign exchange power to declare any industrial unit as a
Ans: C potentially sick unit?
A. FICCI
180. Nationalisation of banks was done with the B. BIFR
purpose of: C. IRBI
A. consolidating the economy D. MRTPC
B. financing the industries Ans: B
C. improving credit facilities
D. improving security of deposits 186. Which bank gives long term loan to
Ans: A farmers?
A. Rural banks
181. The success of the Green Revolution does B. NABARD
not require: C. SBI
A. large scale mechanization D. Land Development Bank
B. pesticides and chemical fertilizers Ans: D
C. adequate irrigation facilities
D. availability of high yielding seeds 187. Which of the following constitute the World
Ans: A Bank?
1. International Bank of Reconstruction and
182. The measure of a worker's real wage is : Development
A. the change in his productivity over a given 2. International Finance Corporation
time 3. International Development Association
B. the purchasing power of his earnings 4. International Monetary Fund
C. his daily earnings Choose the correct answer from the codes given
D. his earning after deduction at source below:
Ans: B
A. 1 and 3
183. Hard Currency is defined as currency: B. 1 and 2
A. which loses its value very fast C. 1, 2, 3 and 4
B. traded in foreign exchange market for which D. 1, 2 and 3
demand is persistently relative to the supply Ans: D
C. which can hardly be used for international
transactions 188. To know whether the rich are getting
D. which is used in times of war richer and the poor getting poorer, it is
Ans: B necessary to compare;
A. the wholesale price index over different
184. The sum of which of the following periods of time for different regions
constitutes Broad Money in India? B. the distribution of income of different sets of
1. Currency with the public income recipients at a point of time
2. Demand deposits with banks C. the distribution of income of an identical set
3. Time deposits with banks of income recipients in different periods of time
4. Other deposits with RBI D. the availability of foodgrains among two sets
Choose the correct answer using the codes given of people, one rich and the other poor, over

different periods of time 2. Gurupadswamy Committee dealt with the
Ans: C issues of child labour.
Which of the statements given above is/are
189. Real national income denotes: correct?
A. national income at constant prices A. 1 only
B. net factor income B. 2 only
C. national income at current prices C. Neither 1 nor 2
D. per capita income D. Both 1 and 2
Ans: A Ans: D
190. Funds belonging to Government of India 195. Which of the following is not a method of
are kept in: estimating national income?
1. Consolidated Fund of India A. Export-import method
2. Public Account Fund of India B. Expenditure method
3. Contingency Fund of India C. Income method
D. Value-added method
A. 1 and 2 Ans: A
B. 1, 2 and 3
C. 1 and 3 196. India's oldest iron and steel plant is :
D. 2 and 3 A. TISCO at Jamshedpur
Ans: B B. TISCO at Burnpur
C. Rourkela Iron and Steel Plant
191. The decentralisation system was D. Durgapur Iron and Steel Plant
recommended by : Ans: A
A. C.Rajagopalachari
B. J.B. Kripalan 197. Put in chronological order 1. Constitution
C. Balwant Rai Mehta of National Planning Committee -by the Indian
D. Ashok Mehta National Congress under Jawaharlal Nehru
Ans: C 2. Planned Economy for India by Visvesvaraya
published
192. Which State stands first in the length of 3. Bombay Plan
roads in the country? 4. Setting up of the National Development
A. Madhya Pradesh Council
B. Rajasthan
C. Maharashtra A. 3, 2, 4, 1
D. Uttar Pradesh B. 1, 2, 3, 4
Ans: C C. 2, 3, 1, 4
D. 2, 1, 3, 4
193. Fiscal deficit in the budget means: Ans: D
A. Primary deficit minus capital deficit
B. Capital deficit plus revenue deficit 198. The first estimate of national income in
C. Budgetary deficit plus the net borrowings of India was made by:
the government A. Mahalanobis
D. Revenue deficit plus the net borrowings of B. V.K.R.V. Rao
the government C. Dadabhai Naoroji
Ans: C D. Prof. Sheroi
Ans: C
194. Consider the following statements:
1. The nation-wide scheme of the National Child 199. Estimation of national income in India is
Labour Projects (NCLP) is run by the Union difficult due to :
Ministry of Social Justice and Empowerment. I. illiteracy of people

II. non-monetised consumption D. investment
III. inflation Ans: B
IV. people holding multiple jobs
204. One of the problems in calculating the
A. I and IV national income in India correctly is :
B. II and III A. non-monetised consumption
C. I, II and IV B. under-er-employment
D. I, II, III and IV C. inflation
Ans: C D. low savings
Ans: A
200. Who is the chairman of 13th Finance
Commission? 205. Which of the following pairs are correctly
A. Bimal Jalan matched? Enterprise Industrial Group
B. Vijay Kelkar 1. VSNL : Bharati Group
C. M.N. Vohra 2. Mundra Special Economic Zone Ltd. : Adani
D. C. Rangarajan Group
Ans: B 3. CMC Ltd. : Tata Group
4. IPCL : Reliance Group
201. Consider the following statements: Select the correct answer using the codes given
1. The highest deciding body for planning in below:
India is the Planning Commission of India.
2. The Secretary of the Planning Commission of A. 2, 3 and 4
India is also the Secretary of National B. 1, 2 and 4
Development Council C. 1, 2 and 3
3. The Constitution includes economic and social D. 3 and 4
planning in the Concurrent List in the Seventh Ans: A
Schedule of the Constitution of India.
Which of the statements given above is/are 206. Tarapore Committee was associated with
correct? which one of the following?
A. 3 only A. Special Economic Zones
B. 1 and 2 B. Effect of oil-prices on the Indian economy
C. 2 only C. Fuller capital account convertibility
D. 2 and 3 D. Foreign exchange reserves
Ans: C Ans: C
202. Regional rural banks: 207. The book Wealth of Nations' was written
1. have limited area of operation by:
2. have free access to liberal refinance facilities A. Eric Roll
from NABARD B. Adam Smith
3. are required to lend only to weaker sections C. Harold Laski
D. J.M. Keynes
A. 1 and 3 Ans: B
B. 1 and 2
C. 1, 2 and 3 208. A country is said to be in a debt trap if:
D. 2 and 3 A. the World Bank charges a very high rate of
Ans: C interest on outstanding as well as new loans
B. it has to abide by the conditionalities imposed
203. Companies pay Corporation Tax on their: by the International Monetary Fund
A. production C. it has to borrow to make interest payments on
B. incomes outstanding loans
C. sales proceeds D. it has been refused loans or aid by creditors

abroad C. minimum Rs. 10 lakh
Ans: C D. minimum Rs.5 lakh
Ans: B
209. Value-added tax is :
A. tax on final consumption collected at the 214. 'Repo rate' is the rate at which:
consumption stage A. the Reserve Bank of India lends to State
B. an ad valorem tax on domestic final Government
consumption collected at all stages between B. the Reserve Bank of India lends to banks
production and the point of final sale C. the banks lend to Reserve Bank of India
C. a special tax levised by states on products D. the international aid agencies lend to Reserve
from other states Bank of India
D. an ad valorem tax on final consumption Ans: C
collected at the manufacturing level
Ans: B 215. Self-reliance in the economic context
implies that a country:
210. Consider the following statements: 1. meets its demands for all goods and services
1. National Thermal Power Corporation has from its domestic production
diversitled into hydropower sector 2. exports some of its goods but does not need to
2. Power Grid Corporation of India has import anything
diversified into telecom sector 3. has sufficient foreign exchange reserves to
Which of the statements given above is/are buy all its needs
correct? 4. meets its demand for certain vital goods and
services from its domestic production
A. 1 only
B. both 1 and 2 A. 1 and 3
C. 2 only B. 2 and 4
D. neither 1 nor 2 C. 3 and 4
Ans: A D. 1, 2 and 3
Ans: C
211. Buyer's market denotes the place where:
A. commodities are available at competitive 216. Why is the Government of India
rates disinvesting its equity in the Central Public
B. the demand and supply are well balanced Sector Enterprises (CPSEs)?
C. the supply exceeds the demand 1. The Government intends to use the revenue
D. the demand exceeds the supply earned from the disinvestment mainly to pay
Ans: D back the external debt.
2. The Government no longer intends to retain
212. If the cash-reserve ratio is lowered by the the management control of the CPSEs. Which of
Central bank, what will be its effect on credit the statements given above is/are correct?
creation?
A. None of these A. Both 1 and 2
B. Decrease B. 1 only
C. Increase C. 2 only
D. No change D. Neither 1 nor 2
Ans: C Ans: D
213. According to the RBI directions, a NBFC 217. The first Bank established in India was
(Non-Banking Finance Company) must possess a A. Punjab National Bank
Net-owned Fund of the amount: B. Traders Bank
A. minimum Rs. 50 lakh C. State Bank of India
B. minimum Rs. 25 lakh D. Bank of Hindustan

Ans: D A. 1 and 2
B. 1, 2 and 3
218. From the view of International economy, C. 1 only
Third World implies: D. 2, 3 and 4
A. None of these Ans: B
B. the developed countries
C. the developing countries 223. Which of these are nicknamed 'Bretton
D. block led by U.S.A., U.K. etc. Woods Twins' ?
Ans: C 1. IDA
2. IMF
219. Which one of the following forms the 3. IBRD
largest share of deficit in Govt. of India budget? 4. WTO
A. Primary deficit
B. Fiscal deficit A. 3 and 4
C. Revenue deficit B. 1and 4
D. Budgetary deficit C. 2and 4
Ans: B D. 2 and 3
Ans: D
220. Match the following. :
A. First Plan 1. Rapid industrialisation 224. Which of the following is the basis for
B. Second Plan 2. Community Development determining the national income?
Programme A. Production of goods and services
C. Third Plan 3. Expansion of basic industries B. Net profit earned and expenditure incurred
D. Fourth Plan 4. Minimum Needs Programme by the State
E. Fifth Plan 5. Achievement of self-reliance and C. Total revenue of the State
growth with stability D. All of the above
ABCDE Ans: A
A. 2 1 3 4 5 225. The concept of Five Year Plans in India was

B. 1 2 3 4 5 introduced by
C. 2 1 4 5 3 A. Lord Mountbatten
D. 2 1 3 5 4 B. Lal Bahadur Shastri
Ans: D C. Jawaharlal Nehru
D. Indira Gandhi
221. A closed economy is an economy in which Ans: C
A. neither exports nor imports take place
B. the money supply is fully controlled 226. The per capital income has been low in
C. only exports take place India because:
D. deficit financing takes place A. more people are in rural areas
Ans: A B. of regional imbalances
C. of price rise
222. Since independence, both development and D. of population growth
non-development expenditures have Increased, Ans: D
the increase in the former being a little more
than in the other. Non development expenditure 227. The basic feature of the Rolling Plans was
involves: that:
1. interest payment A. no physical targets were visualized
2. subsidies B. annual fluctuations in prices and major
3. defence economic developments could be considered
4. irrigation while fixing targets
C. no financial target except in the term of

annual plans was envisaged B. price increases demand decreases
D. revision of the achievements, of previous year C. price decreases demand does not change
Ans: B D. price increases demand increases
Ans: B
228. The principal reason why national
economic planning is still being pursued inspite 233. The National Housing Bank was set up in
of embracing a market economy since 1991 is India as a wholly-owned subsidiary of which one
that: of the following?
A. Five Year Plans can continue to provide a A. State Bank of India
long-term perspective to the economy in market B. ICICI Bank
friendly fashions C. Life Insurance Corporation of India
B. the vast quantity of capital already deployed D. Reserve Bank of India
in the public sector needs to be nurtured Ans: D
C. it is a constitutional requirement
D. the market economy is mainly confined to 234. Which of the following groups of states has
industry and commerce and central planning in the largest concentration of rural poor and
agriculture is necessary people living below the poverty line?
Ans: A A. Karnataka, Maharashtra, Goa
B. Andhra Pradesh, Karnataka, Tamil Nadu
229. Which of the following committees was C. Goa, Andhra Pradesh, Maharashtra
assigned to recommend reforms in the D. Tamil Nadu, Kerala, Goa
insurancesector? Ans: B
A. Chelliah Committee
B. Rekhi Committee 235. The basic regulatory authority for mutual
C. Malhotra Committee funds and stock markets lies with the:
D. Nadkarni Committee A. Stock Exchanges
Ans: C B. Securities and Exchange Board of India
C. Government of India
230. The core sector includes: D. Reserve Bank of India
I. Coal Ans: B
II. Power
III. Petroleum 236. Which of the following is not an indirect
IV. Soaps and Detergent tax?
A. Entertainment tax
A. II and III B. Customs duties
B. I C. Sales tax
C. I, II and III D. Land revenue
D. I and II Ans: D
Ans: C
231. The sum total of incomes received for the 1. The first newsprint plant set up in India was
services of labour, land or capital in a country is at Nepanagar.
called: 2. The first modern steel plant in India was set
A. gross domestic product up at Bhadrawati.
B. gross national income Which of these statements is/are correct?
C. gross domestic income
D. national income A. Both 1 and 2
Ans: D B. Neither 1 nor 2
C. 2 only
232. According to the law of demand, when: D. 1 only
A. price decreases demand decreases Ans: D

238. Consider the following statements: 2. Monetary policy
1. ICICI Bank is the largest private sector bank 3. Increasing production
in India. 4. Increasing income levels
2. Postal life Insurance is the oldest life Choose your answer from:
insurance organization in India. A. 1 and 2
Which of the statements give above is/are B. 2 and 3
correct? C. 1, 2 and 3
A. 2 only D. 1, 2, 3 and 4
B. Neither 1 nor 2 Ans: C
C. Both 1 and 2
D. 1 only 243. National income calculated at current
Ans: B prices in India has shown a tendency to rise at a
faster rate than national income at constant
239. DWCRA stands for: prices. This is because:
A. Development and Welfare of Catchment Rural A. India's population has been rising fast
Areas B. Base year chosen is an abnormal year
B. Direct Welfare of Children in Rural Areas C. General price level in the economy has been
C. All of the above rising rapidly
D. Development of Women and Children in Rural D. Statistically manipulations are employed by
Areas the Planning
Ans: D Ans: C
240. The rate of growth of per capita income is 244. National Development Council was set up
equal to: in:
A. Rate of growth of national income minus the A. 1952
rate of growth of population B. 1951
B. Rate of growth of national income divided by C. 1948
the rate of growth of population D. 1950
C. Rate of growth of national income Ans: A
D. Growth in national income divided by the
increase in population 245. Which among the following is the oldest
Ans: A Development Financial Institution of India?
A. ICICI
241. The 11th Five Year Plan strategy to raise B. UTI
agricultural output envisages which of the C. IDBI
following? D. IFCI
1. Greater attention to land reforms. Ans: D
2. Double the rate of growth of irrigated area.
3. Promote animal husbandry and fishery. 246. Which of the following statements is
4. Interest free credit to the farmers. correct?
Select the correct answer A. The Prime Minister is the Chairman of the
Planning Commission
A. 2 and 3 only B. The draft plan is prepared by the National
B. 2 and 4 only Development Council
C. 1, 2 and 3 C. The Minister of Planning is always necessarily
D. 1 and 2 only the Deputy Chairman of Planning Commission
Ans: C D. Planning Commission is a constitutional body
Ans: A
242. The rising prices in India can be checked
through: 247. What do you understand by Bear raid?
1. Budgetary policy A. An attempt to bring down the price of strong

short selling D. Market borrowings
B. Simulataneous buying of shares and Ans: A
debentures in view of getting more values in
near future 253. Which of the following are definite
C. Higher rate of price paid for the particular implications of a fall in inflation?
government share or debentures 1. Prices have fallen
D. Any of the above 2. Prices are increasing more slowly than before
Ans: A 3. Food supply has increased
4. There is industrial stagnation
248. The 'Slack Season' in the Indian Economy
is: A. 1 and 3
A. Jan. - June B. 1, 3 and 4
B. Sept. - Dec. C. 1 only
C. Feb. – April D. 2 only
D. March - April Ans: D
Ans: A
254. The first attempt to initiate economic
249. Which of the following schemes was planning in India was made by:
intended to tap the black money? A. Jawaharlal Nehru
A. Long term Operations Scheme B. Vallabhbhai Patel
B. India Development Bonds C. M. Visvesvaraya
C. UTI Bonds D. Balwantrai Mehta
D. SBI Deposit Scheme Ans: C
Ans: B
255. A crossed cheque is one, which can be
250. In India, present trend of rapid encashed only:
urbanisation is due to: A. through a bank,
A. break up of joint family system B. after it has been transferred to another
B. influence of cinema and electronic media person
C. abolition of zamindari system C. at the State Bank of India
D. lack of employment opportunities in rural D. by the drawee
areas Ans: A
Ans: D
256. Which amidst the following rural banks has
251. Which of the following is incorrect about been named after a river?
convertibility? A. Aravali Kshetriya Grameen Bank
A. It would discourage black market B. Prathama Bank
transactions C. Thar Anchalik Grameen Bank
B. The RBI will be a direct player now rather D. Varada Grameen Bank
than being an indirect one Ans: D
C. The exchange rate should be determined by
the forces of demand and supply of the currency 257. On account of some national emergency or
D. The exchange rate' would indicate the in order to carry out some secret mission, the
strength of the economy government sometimes requires funds but may
Ans: B not give the details of the expenditure estimates.
The House grants some lumpsum for this called :
252. The main source of fund for the National A. emergency budget
Highway Authority of India is B. vote of Credit
A. Cess C. supplementary budget
B. Foreign assistance D. contingency bill
C. Budgetary support Government of Union Ans: B

258. India's progress has been reasonably loans to agriculture and allied sectors to
satisfactory in connection with: promote greater food production and contain
A. reduction in inequalities food inflation
B. growth of GNP C. It is an intense affirmative action of the
C. growth of per capital income Government to boost economic activity in the
D. reduction of unemployment country
Ans: B D. It is an extreme affirmative action by the
Government to pursue- its policy of financial
259. Which of the following statements inclusion
regarding the iron and steel plants at Bhilai, Ans: C
Rourkela and Durgapur are correct?
1. These plants were established in public sector 263. Which among the following is true?
during the Second Five Year Plan 1. Decrease in cash reserve ratio injects higher
2. These are located in the steel raw material liquidity in the system
belt 2. Higher liquidity in the system may soften
3. These were established with the help from interest rates
Britain, Soviet Union and West Germany 3. Higher market borrowing by the government
respectively leads to rise in interest rates Choose your
answer from:
A. 1 and 3
B. 2 and 3 A. 1 and 3
C. 1 and 2 B. 1 and 2
D. 2 and 3 C. 2 and 3
Ans: C D. 1, 2 and 3
Ans: D
260. Which among the following is the
regulatory authority for giving clearance for 264. Agricultural marketing in India has certain
External Commercial borrowing? defects which do not include:
A. Foreign Investment Promotion Council A. inadequate transport facilities
B. RBI B. insufficient price incentives by the
C. Foreign Investment Promotion Board government
D. SEBI C. agricultural produce not being properly
Ans: B graded
D. lack of standard measures and weights
261. Which of the following measures is not Ans: B
likely to help in improving India's balance of
payments position? 265. Among the structural changes which of the
A. Devaluation of the rupee following is not wholly welcome?
B. Imposition of higher duty on exports A. Relative contribution of agriculture to our
C. Imposition of higher duty on imports GNP is declining
D. Encouragement of import substitution B. Marked improvement in the contribution of
Ans: B manufacturing to the GNP
C. Substantial increase in the percentage
262. Which one of the following statements contribution of public administration and
appropriately describes the fiscal stimulus ? defence to GDP
A. It is a massive investment by the Government D. Increase in the share of construction in the
in manufacturing sector to ensure the supply of GNP
goods to meet the demand surge caused by Ans: C
rapid economic growth
B. It is Government's intensive action on 266. The difference between a bank and a non-
financial institutions to ensure disbursement of banking financial institution (NBFI) is that:

A. a bank indulges in a number of activities B. Those who lease in land and cultivate
relating to finance with a range of customers, C. Those who own land and lease in from others
while an NBFI is , mainly concerned with the or institutions and cultivate
term loan needs of large enterprises D. Those who own land and cultivate
B. a bank's main interest is to help in business Ans: A
transactions and saving/investment activities
while an NBFl's main interest is in the 272. Which of the following governmental steps
stabilisation of the currency has proved relatively effective in controlling the
C. a bank interacts directly with customers double digit rate of inflation in the Indian
while an NBFI interacts with banks and economy during recent years?
governments A. Containing budgetory deficits and
D. a bank deals with both internal and unproductive expenditure
international customers while an NBFI is mainly B. Streamlined public distribution system
concerned with the finances of foreign C. Pursuing an export-oriented strategy
companies D. Enhanced rate of production of all consumer
Ans: A goods
Ans: A
267. National income is the same as:
A. Net Domestic Product at cost factor 273. Match the following:
B. Net Domestic Product at market price Publishers Publication
C. Net National Product at factor cost A. Ministry of Industry 1. Report on Currency
D. Net National Product at market price and Finance
Ans: C B. Central Statistical Organisation 2. Economic
Survey
268. Arbitrage implies: C. Reserve Bank of India 3. Wholesale Price
A. the practice of over-invoicing imports Index
B. practice of taking advantage of rice D. Ministry of Finance 4. National Accounts
difference in two markets Statistics
C. the practice of under invoicing exports ABCD
D. the practice of dumping viz., selling goods in
a foreign market cheaper than the home market A. 4 3 2 1
Ans: B B. 3 4 2 1
C. 4 3 1 2
269. M3 includes: D. 3 4 1 2
A. M1 + T.D Ans: D
B. M1 + post office saving deposit
C. M1 +- post office total deposit 274. 70% of working population of India is
D. M1 + national saving certificate engaged in:
Ans: A A. secondary sector
B. tertiary sector
270. Which of the following was formed to C. public sector
suggest means for eradicating black money? D. primary sector
A. Finance Commission Ans: D
B. Shah Commission
C. Chelliah Committee 275. Consider the following items of wholesale
D. Sarkaria Commission price index: 1. Primary articles
Ans: C 2. Fuel, power, lights and lubricants
3. Manufacturing products
271. Which one of the following categories of Arrange the above items in descending order in
workers is termed as cultivators? terms of their weightage in calculating
A. Those who cultivate the land of others wholesale price index

A. 3, 2, 1 280. National income ignores
B. 3, 1, 2 A. sale of land
C. 1, 3, 2 B. sales of firm
D. 1, 2, 3 C. exports of the IT sector
Ans: C D. salary of employees
Ans: D
276. Gross National Product at market prices is
defined as : 281. Which of the following is not a direct tax?
A. the market value of all final goods and A. Sales tax
services produced in an economy B. Wealth tax
B. the market value of all final goods and C. Corporation tax
services produced in an economy plus indirect D. Estate tax
taxes minus subsidies Ans: A
C. the market value of all final goods and
services produced in an economy taking into 282. Consider the following statements:
account net factor income from abroad 1. Reserve Bank of India was nationalized on 26
D. the market value of all final goods and January, 1950
services produced in an economy plus indirect 2. The borrowing programme of the Government
taxes of India is handled by the Department of
Ans: C Expenditure, Ministry of Finance
Which of the statements given above is/are
277. Dadabhai Naoroji theorised on the drain of correct?
wealth from India in his book: A. Neither 1 nor 2
A. Poverty in British Rule in India B. 1 only
B. Poverty under British Rule in India C. 2 only
C. Poverty and Un-British Rule in India D. Both 1 and 2
D. Poverty of Economic Drain in British India Ans: A
Ans: C
283. Identify the correct sequence of the
278. When the ratio of indirect taxes to total establishment of steel plants in India from the
taxation revenue is very high, it leads to : 1. rise earliest to the latest:
in the price level A. Bokaro, Jamshedpur, Vishakhapatnam, Bhilai
2. higher taxation burden on the rich B. Jamshedpur, Vishakhapatnam
3. higher taxation burden on the poor C. Bhilai, Jamshedpur, Vishakhapatnam, Bokaro
4. fall in tax revenues D. Jamshedpur, Bhilai, Bokaro, Vishakhapatnam
Ans: D
A. 1 and 2
B. 1, 3 and 4 284. Which of the following statements is/are
C. 1, 2 and 4 correct?
D. 1 and 3 1. NIFTY is based upon 50 firms in India.
Ans: D 2. NIFTY is governed and regulated by the
Reserve Bank of India.
279. Unemployment which occurs when 3. NIFTY does not trade in mutual funds
workers move from one job to another job is Select the correct answer using the code given
known as : below:
A. seasonal unemployment A. 2 only
B. technological unemployment B. 3 only
C. frictional unemployment C. 1 and 3
D. cyclical unemployment D. 1 only
Ans: C Ans: D

285. 'The strategy of Rolling plan was adopted C. Rice
during the Prime Ministership of: D. Gold
A. Morarji Desai Ans: B
B. Indira Gandhi
C. Lal Bahadur Shastri 290. Consider the following statements about
D. Rajiv Gandhi Wholesale Price Index (WPI) :
Ans: A 1. It captures the price movement extensively
and is, therefore, taken as an indicator of
286. After 1991, the Central Government inflation.
implemented various far-reaching reforms in the 2. The office of the Economic adviser (OEA) is
area of taxation. This was based on the entrusted with the function of compilation and
recommendations of the: publication of the weekly wholesale price index
A. Wanchoo Committee number in India.
B. Rajah Chelliah Committee Which of the statements given above is/are
C. Narsimhan Committee correct?
D. Raj Committee A. Both I and II
Ans: B B. II only
C. Neither I nor II
287. Consider the following: D. I only
1. Market Borrowing Ans: A
2. Treasury Bills
3. Special Securities to the RBI 291. Which of the following prints currency
Which of these is/are components of internal notes of the denomination of Rs. 100?
debt of the government? A. The Security Printing Press, Hyderabad
B. The Indian Security Press, Nasik Road
A. 1 only C. All of the above
B. 1 and 2 D. The Bank Note Press, Dewas
C. 1 and 3 Ans: D
D. 1, 2 and 3
Ans: D 292. Deficit financing creates additional paper
currency to fill the gap between expenditure and
288. Consider the following statements: revenue. This device aims at economic
The price of any currency in international development but if it fails, it generates :
market is decided by the A. inflation
1. World Bank B. demonetization
2. Demand for goods/services provided by the C. deflation
country concerned D. devaluation
3. stability of the government of the concerned Ans: A
country
4. economic potential of the country in question 293. An amount given by a government agency
Of these statements: or even private body to encourage a particular
economic activity is a :
A. 3 and 4 are correct A. loan
B. 2 and 3 are correct B. mutual fund
C. 1, 2, 3 and 4 are correct C. grant
D. 1 and 4 are correct D. subsidy
Ans: B Ans: D
289. What is Green Gold? 294. A tax that takes away a higher proportion
A. Coffee of one's income as the income rises is termed as
B. Tea A. indirect tax

B. proportional tax Staines
C. progressive tax C. Sri Krishna Commission 3. Demolition of a
D. regressive tax religious structure at Ayodhya
Ans: C D. Jain Commission 4. Riots in Mumbai in 1993
ABCD
295. India is regarded as a country with
Demographic Dividend. This is due to A. 3 2 4 1
A. Its high population in the age group below 15 B. 2 3 1 4
years C. 3 2 1 4
B. Its high population in the age group above 65 D. 2 3 4 1
years Ans: D
C. Its high population in the age group of 15-64
years 299. Which of the following is the Banker of the
D. Its high total population Banks?
Ans: C A. SBI and RBI
B. RBI
296. The Indian Rupee is fully convertible: C. SBI
1. In respect of Current Account of Balance of D. IDBI
Payments Ans: B
2. In respect of Capital Account of Balance of
Payments 300. The Second Five Year Plan laid more stress
3. Into Gold upon:
Which of these statements is/are correct ? A. removing poverty
B. self-reliance
A. 1, 2 and 3 C. industrialisation
B. 3 only D. agriculture
C. 1 only Ans: C
D. 1 and 2 only
Ans: C 301. The objective of self-reliance and zero net
foreign aid was declared in :
297. Consider the following statements: A. Third 5-Yr Plan
2. NTPC is the largest power utility in India. B. Fifth 5-Yr Plan
3. ONGC accounts for half of the LPG production C. Fourth 5-Yr Plan
in India. D. Second 5-Yr Plan
4. Indian Oil Corporation operates all the oil Ans: C
refineries in India.
5. The Indian Ordnance Factory is the largest 302. When the Reserve Bank of India announces
departmentally run industrial undertaking in the an increase of the Cash Reserve 'Ratio, what
country. does it mean?
Which of these statements is/are correct? A. The Reserve Bank of India will have less
A. 1 and 4 money to lend
B. 2 and 3 B. The Union Government will have less money
C. 1 only to lend
D. 2, 3 and 4 C. The commercial banks will have more money
Ans: A to lend
D. The commercial banks will have less money
298. Match the following: to lend
Commission Matter of Enquiry Ans: D
A. Wadhwa Commission 1. The assassination of
Rajiv Gandhi 303. To meet the growing needs for coins in the
B. Liberhan Commission 2. Killing of Graham country, where does the Government propose to

set up another mint? 308. Which of the following organisations in
A. Nasik India is mainly' working to meet the credit needs
B. Hoshangabad of all types of agricultural and rural development
C. Noida activities?
D. Dewas A. FCI
Ans: C B. NABARD
C. ICAR
304. The main argument advanced in favour of D. IDBI
small scale and cottage industries in India is Ans: B
that:
A. they require small capital investment 309. India's economic zone extends ______ miles
B. they advance the goal of equitable off its coast:
distribution of wealth A. 200
C. they generate a large volume of employment B. 100
D. cost of production is low C. 250
Ans: C D. 150
Ans: A
305. In order to be scheduled to the Reserve
Bank of India, a bank should have capital and 310. Math the following:
reserve of not less than: List I List II
A. 5 lakhs A. Income Tax 1. Levied and collected by the
B. 1 lakh Central Government
C. 50 Iakhs B. Corporation 2. Levied and collected Tax by
D. 10 lakhs the Central Government and shared with the
Ans: A State Governments
C. Professional 3. Levied by the Central Tax
306. In gross domestic saving by sector of Government but collected and appropriated by
origin, the four sectors in order of importance the State Governments
are: D. Stamp Duties 4. Levied and collected by the
A. Household Sector, Public Enterprises, State Governments
Government Sector, Corporate Sector 5. Levied and collected by the local bodies
B. Household Sector, Government Sector, Public ABCD
Enterprises, Corporate Sector
C. Household Sector, Corporate Sector, A. 2 1 5 3
Government Sector, Public Enterprises B. 1 2 3 5
D. Government Sector, Household Sector, Public C. 2 1 4 3
Enterprises, Corporate Sector D. 1 2 3 4
Ans: C Ans: C
307. An underdeveloped economy is generally 311. Which of the following are not features of
characterised by : India's small-scale industries in general?
1. Iow per capital income 1. large employment potential
2. Iow rate of capital formation 2. great export potential
3. Iow dependency figure 3. highly skilled labour
4. working force largely in the tertiary sector 4. efficient marketing system
A. 1 and 4 A. 3 and 4
B. 2 and 3 B. 1 and 3
C. 1 and 2 C. 1 and 2
D. 3 and 4 D. 2 and4
Ans: C Ans: A

312. Sunrise Industries are Industries: Five Year Plan Emphasis
A. which improve export performance of the A. First 1. Food Security and women
country empowerment
B. which have high growth potential and meet B. Second 2. Heavy industries
further requirements of the economy C. Fifth 3. Agriculture and community
C. which are well-developed and have ample development
scope for further development D. Ninth 4. Removal of poverty
D. which are small-scale industries ABCD
Ans: B
A. 3 4 2 1
313. Ad Valorem means: B. 1 4 2 3
A. according to size C. 1 2 4 3
B. according to value D. 3 2 4 1
C. according to weight Ans: D
D. according to advertisement costs
Ans: B 319. India earns maximum foreign exchange
from the export of:
314. Which among the following formulates A. garments
fiscal policy? B. gems and jewellery
A. Finance Ministry C. jute
B. RBI D. cotton
C. Planning Commission Ans: B
D. SEBI
Ans: A 320. A steady increase in the general level of
prices as a result of excessive increase in
315. Which of the following sectors does not aggregate demand as compared to aggregate
come under tertiary sector? supply is termed as :
A. Electricity A. structural inflation
B. Transport B. stagflation
C. Trade C. cost-push inflation
D. Business Services D. demand-pull inflation
Ans: A Ans: D
316. CENVAT is associated with: 321. The Indian income tax is :

A. rate of direct tax 1. direct
B. rate of income tax 2. progressive
C. none of the above 3. indirect
D. rate of indirect tax 4. proportional
Ans: D
A. 1 and 2
317. A budgetary deficit means: B. 1 and 4
A. total expenditure is more than total revenue C. 3 and 4
B. current expenditure is more than current D. 2 and 3
revenue Ans: A
C. total expenditure is more than current
revenue 322. Of the various ways of financing
D. capital expenditure is more than capital government's investment expenditure, the least
revenue inflationary is :
Ans: A A. foreign aid
B. taxation
318. Match the following : C. deficit financing

D. public borrowing India, inspite of high rate of savings and capital
Ans: B formation is:
A. low level of foreign aid
323. Match the following: B. high birth rate
Aluminium Company Location C. low capital/output ratio
A. BALCO 1. Hirakud D. high capital/output ratio
B. HINDALCO 2. Korba Ans: C
C. Indian Aluminium Company 3. Koraput
D. NALCO 4. Renukoot 329. When was the Reserve Bank of India taken
ABCD over by the Government?
A. 1945
A. 3 4 1 2 B. 1956
B. 3 1 4 2 C. 19S2
C. 2 1 4 3 D. 1948
D. 2 4 1 3 Ans: D
Ans: D
330. What is the difference between Debentures
324. The existence of a Parallel Economy or and Equity?
Black Money: A. An equity shareholder cannot withdraw his
A. makes the monetary policies less effective amount whereas debentures can be withdrawn
B. ensures increasing productive investment by taking back the amount
C. makes the economy more competitive B. Both debenture and equity holders have the
D. ensures a better distribution of income and right of voting irrespective of the proportion of
wealth holdings but debentures are of lower value than
Ans: A equity
C. Equity shareholding is more risky, compared
325. The type of unemployment mostly found in to debentures which are bound to return good
India can be characterised as : interest on the principal
A. cyclical D. Debentures are sealed bonds acknowledging
B. structural that money has been borrowed; equity is a
C. frictional shareholder's share voting rights in proportion
D. disguised to his shareholding
Ans: D Ans: D
326. If saving exceeds investment, the national 331. Deficit financing is spending:
income will : A. in excess of revenue
A. remain constant B. by getting foreign aid
B. rise C. less than what is needed
C. fluctuate D. by borrowing from abroad
D. fall Ans: A
Ans: A
332. Match the following:
327. The national income of India is estimated Institutions Year of Formation
mainly through: A. National Stock Exchange 1. 1989
A. production and expenditure methods B. OTCEI 2. 1992
B. production and income methods C. SEBI 3. 1993
C. expenditure method alone D. CARE 4. 1988
D. production method alone ABCD
Ans: B
A. 1 2 3 4
328. The main reason for low growth rate in B. 3 1 4 2

C. 2 1 3 4 B. It is a tax on the final consumption of goods
D. 2 1 4 3 or services and must ultimately be borne by the
Ans: D consumer
C. It is basically a subject of the Central
333. The liabilities of a commercial bank are: Government and the State Governments are only
1. time deposits a facilitator for its Successful implementation
2. security holdings D. It is a tax levied on value addition at each
3. demand deposits stage of transaction in the production
4. advances from the central bank distribution chain
Ans: C
A. 1 and 3
B. 1, 2 and 3 338. The Planning Commission is :
C. 2 and 4 A. a Government department
D. 1, 3 and 4 B. an Advisory body
Ans: D C. an Autonomous Corporation
D. a Ministry
334. Which one among the following is not a Ans: B
component of fiscal policy?
A. Public debt policy 339. The headquarters of IMF and World Bank
B. Public expenditure policy are located at :
C. Taxation policy A. Geneva and Montreal
D. Trade policy B. Both Washington DC
Ans: D C. Geneva and Vienna
D. New York and Geneva
335. 40. The arguments to support opening up Ans: B
of the Insurance sector in India were:
1. It will provide wider choice to customers 340. An essential attribute of inflation is:
2. It will infuse competition and efficiency A. fall in production
3. It will widen the base of long term funds 4. It B. absence of black market
will improve balance of payments position C. presence of black market
Choose the correct answer from: D. increase in prices
A. Ans: D
B.
C. 1 341. The total value of goods and services,
D. produced' in a country during a given period is
Ans: A A. Per capital income
Ans: B B. Disposable income
Ans: D C. National income
D. Net national income
336. Which industry in India was worst affected Ans: C
because of the partition?
A. Cotton and Sugar 342. In which of the following industries is the
B. Jute and Cotton maximum number of women employed in India?
C. Engineering and Cement A. Tea
D. Paper and Iron B. Jute
Ans: B C. Textile
D. Coal
337. Which one of the following is not a feature Ans: A
of Value Added Tax?
A. It is a multi-point destination-based system of 343. Which of the following is not an asset held
taxation"" by commercial banks?

A. Money lent at short notice A. taxation and public borrowing
B. Bills of exchange B. public borrowing and deficit financing
C. Current account deposits C. taxation, public borrowing and deficit
D. Credit balances with the Reserve Bank financing
Ans: C D. taxation only
Ans: D
344. Match the following:
A. Fiscal Deficit 1. Difference between Total 348. Economic Planning is a subject:
Expenditure and total receipts A. unspecified in any special list
B. Budget Deficit 2. Difference between Revenue B. in the Concurrent List
Expenditure and Revenue Receipt C. in the Union List
C. Revenue Deficit 3. Difference between Total D. in the State List
Expenditure and Revenue Receipts plus non- Ans: C
debt creating capital receipts
D. Primary Deficit 4. Difference between Total 349. One of the reasons for India's occupational
Expenditure and Revenue Receipts plus non- structure remaining more or less the same over
debt creating capital receipts minus interest the years has been that:
payments A. productivity in agriculture has been high
ABCD enough to induce people to stay with agriculture
B. ceilings on land holdings have enabled more
A. 4 3 2 1 people to- own land and hence their preference
B. 1 3 2 4 to stay with agriculture
C. 3 1 2 4 C. investment pattern has been directed towards
D. 3 1 4 2 capital intensive industries
Ans: C D. people are largely unaware of the
significance of transition from agriculture to
345. How many languages are used on a ten industry for economic development
rupee note? Ans: D
A. 10
B. 15 350. A rolling plan was a plan for:
C. 2 A. three years
D. 7 B. five years
Ans: B C. year to year basis
D. one year
346. Which of the following are the functions of Ans: D
the Central Bank of India?
1. Regulation of currency and flow of credit 351. National income refers to:
system A. money value of capital goods produced by a
2. Maintaining exchange value of rupee3. country during a year.
Formulating monetary policy of India B. money value of stocks and shares of a country
4. Supervisory powers over the indigenous during a year.
bankers and leasing companies C. money value of goods 'and services produced
in a country during a year.
A. 1, 2 and 4 D. money value of consumer goods produced by
B. 1, 2, 3 and 4 a country during a year.
C. 1 and 3 Ans: C
D. 1, 2 and 3
Ans: B 352. Share of Direct tax in post economic
reform is:
347. For internal financing of Five Year Plans, A. decreasing
the government depends on: B. can't say anything

C. fluctuating production/ investment over a short period of
D. increasing time
Ans: D C. Stagflation: slow pace of economic activity
due to falling prices
353. What is the animal on the insignia of the D. Boom: Rapid and all-round spurt in economic
RBI ? activity
A. Lion Ans: C
B. Tiger
C. Elephant 359. In which year, some more commercial
D. Panther banks (in addition to the first lot of 14) were
Ans: D nationalised in India?
A. 1980
354. Which of the following is not shared by the B. 1979
Centre and the States? C. 1982
A. Corporation Tax D. 1976
B. Sales Tax Ans: A
C. Income Tax
D. Union Excise Duties 360. Rupee was devalued by what percent in
Ans: B July 1991 ?
A. 22
355. The best means of saving during inflation B. 20
is to keep: C. 18
A. time deposits with Banks D. 25
B. equity Ans: B
C. money
D. Government Bonds 361. Who is regarded as the founder of the
Ans: C scientific Socialism?
A. Engels
356. Who was the first Deputy Chairman of B. Karl Marx
Planning Commission of India? C. Lenin
A. Shri V.T.Krishnamachari D. Rousseau
B. Shri Jawaharlal Nehru Ans: B
C. Dr.Rajendra Prasad
D. Shri C.Rajagopalachari 362. In India GDP is higher than GNP because
Ans: A country's:
A. net factor income is negative
357. The Reserve Bank of India issues: B. capital inflow > capital outflow
A. all the currency notes except the hundred C. Govt. expenditure is more than it's income
rupee note D. import > export
B. all the currency notes Ans: D
C. all the currency notes except the one rupee
note 363. Consider the following
D. only notes of Rs. 10 and above statements:Regional disparities in India are high
Ans: C and have been rising in recent years because:
1. There is persistent investment over time only
358. Which of the following is wrongly in Select locales
matched? 2. Some areas are agro climatically less
A. Depression: Insufficient demand causing conducive to development
large scale unemployment of men and machinery 3. Some are as continue to face little or no
over a long period of time aqrarian transformation and the consequent lack
B. Recession: Reduction in demand and of social and economic opportunities

4. Some areas have faced continuous political C. Wanchoo Committee 3. Agricultural Taxes
instability. D. Karve Committee 4. Industrial Licensing
Which of the above statements are correct? ABCD
A. 1, 3 and 4
B. 2, 3 and 4 A. 4 3 2 1
C. 1, 2 and 3 B. 1 4 3 2
D. 1, 2 and 4 C. 2 3 4 1
Ans: C D. 1 2 3 4
Ans: A
364. Which one of the following statements is
not correct? 369. The central banking functions in India are
A. Nikkei is the stock market index for the Tokyo performed by the:
Stock Exchange A. State Bank of India
B. S and P CNX Nifty is the index for 50 large B. Reserve Bank of India
companies on the Bombay Stock Exchange C. Central Bank
C. Hang Seng Indexes record daily changes of D. Both (b ) and (c )
the largest companies of the Hong Kong stock Ans: B
market
D. The National Association of Securities 370. The Zero Base Budgeting in India was first
Dealers Automated Quotations known as experimented from:
NASDAQ, is an American stock exchange A. None of these
Ans: B B. April, 1987
C. April, 1991
365. The inflation experienced in the country at D. April, 2000
present is: Ans: B
A. unrealistic inflation
B. galloping inflation 371. Which of the following measures should be
C. cost-push inflation taken when an economy is going through
D. secondary inflation inflationary pressures?
Ans: C 1. The direct taxes should be increased.
2. The interest rate should be reduced.
366. Which of the following bodies finalises the 3. The public spending should be increased
Five Year Plan proposals? Select the correct answer using the code given
A. Planning Commission below:
B. National Development Council Code:
C. Ministry of Planning
D. Union Cabinet A. 2 and 3
Ans: B B. 2 only
C. 1 and 2
367. New exim policy has choosen a town for D. 1 only
the pottery export : Ans: B
A. Moradabad
B. Khurja 372. Buffer stocks of foodgrains have helped the
C. Panipat Government to achieve all but one of the
D. Agra following:
Ans: B A. provide balanced diet to masses
B. implement employment generation
368. Match the following: programmes
A. Dutt Committee 1. Village and Small Scale C. maintain Public Distribution System
Industries D. solve food problem
B. Raj Committee 2. Direct Taxes Ans: A

373. Which of the following are under the Ans: A
purview of Industrial Development Bank of
India? 378. Which state produces maximum Soyabean?
1. Unit Trust of India A. Madhya Pradesh
2. Life Insurance Corporation of India B. Uttar Pradesh
3. Export-Import Bank C. Bihar
4. State Finance Corporation of India D. Rajasthan
Ans: A
A. 1, 2 and 3
B. 2, 3 and 4 379. The principal source of revenue to the
C. 1, 3 and 4 State Government in India is :
D. 1, 2 and 4 A. Land Revenue
Ans: B B. Sales Tax
C. State Excise Duties
374. Consider the following taxes: D. Income Tax
1. Corporation Tax Ans: B
2. Value Added Tax
3. Wealth Tax 380. Which one of the following pairs is not
4. Import duty correctly matched?
Which of these is/are Indirect taxes? A. Jet Airways - Air Sahara
B. Kingfisher Airlines - MDLR Airlines
A. 1, 2 and 4 C. Hindalco Industries - Novelis
B. 2 and 4 D. Tata Steel - Corus Group
C. 1 only Ans: B
D. 1 and 3
Ans: B 381. Railway Budget in India was separated
from general budget in :
375. Which of the following is not true about the A. 1941-42
Reserve Bank of India? B. 1950-51
A. Foreign exchange reserves are kept by RBI C. 1924-25
B. One rupee notes and coins are issued by RBI D. 1947-48
C. It maintains the exchange value of the rupee Ans: C
D. It regulates the currency and credit system of
India 382. Consider the following statements:
Ans: B 1. The Ministry of External Affairs is in-charge of
monetary policy in India.
376. Rate of growth of an economy is measured 2. The. Ministry of External Affairs is in-charge
in terms of: of foreign exchange rate determination in India.
A. per capita income 3. The Ministry of Commerce puts forward the
B. industrial development Export-Import Policy in India.
C. national income 4. The Planning Commission prepares the
D. number of people who have been lifted above Annual Budget of the Government
the poverty line Which of the statements is/are correct ?
Ans: C A. 3 only
B. 2 only
377. Who wrote the book 'Planned Economy for C. 2 and 4
India'? D. 1, 2, and 3
A. M. Visvesvaraya Ans: A
B. Mahatma Gandhi
C. Jawaharlal Nehru 383. Which one of the following is the task of
D. Sardar Vallabhbhai Patel the Planning Commission?

A. Financing of the plan 389. Main bearers of the burden of indirect tax
B. Implementation of the plan are:
C. Both ( a) and (b ) A. consumes
D. Preparation of the plan B. tax payers
Ans: D C. manufacturers
D. traders
384. UTI has been divided into two parts UTI-I Ans: A
and UTI-II. Which part has been kept under the
control of the government? 390. An advalorem duty is a tax on the basis of:
A. UTI-I A. the advertisement expenditure
B. UTI-II B. the unit of the commodity
C. Both the above C. the price of a commodity
D. None of the above D. the value added
Ans: A Ans: C
385. The tax whose share in overall taxation 391. The special paper required for printing of
revenue has gone up rapidly during the planning currency notes by the Security Presses In the
period is : country is manufactured at :
A. wealth tax A. Hyderabad
B. capital gains tax B. Dewas
C. income tax C. Hoshangabad
D. tax on production D. Kolkata
Ans: D Ans: C
386. The prices at which the government 392. The Issue Department of the RBI maintains
purchases food grains for maintaining the public a _______ against printing of notes:
distribution system and for building up buffer A. Proportional Reserve System
stocks are known as : B. Proportional Foreign Securities Reserve
A. Issue Prices System
B. Ceiling Prices C. Minimum Reserve System
C. Procurement Prices D. Proportional Gold Reserve System
D. Minimum Support Prices Ans: C
Ans: C
393. GDR means:
387. Which statement is correct for Indian A. 'global development range' which has been
Planning Commission? set up by UNO for developing countries
A. Members and Vice-Chairman of it do not have B. 'geographically developed regions' as defined
fixed working duration by the UNDP
B. Members do not require any minimum C. 'gross domestic ratio' which is a macro
education aggregate
C. It is not defined in Indian Constitution D. 'global depository receipt' which is the
D. All of the these mechanism to raise funds from international
Ans: D market
Ans: D
388. In recent years the capital outlays for the
defence service have been: 394. The earlier name of the WTO was:
A. increasing steadily A. OECD
B. more or less constant B. UNCTAD
C. fluctuating frequently C. GATT
D. going down steeply D. UNIDO
Ans: A Ans: C

395. The main difference between shares and D. Both 1 and 2
debentures is : Ans: C
A. debentures can only be issued after shares
B. shareholders receive dividend on shares 399. VAT is alternate of:
whereas debenture holders receive interest on A. central tax
debentures B. state tax
C. debentures can be partly converted into C. neither ( a) nor ( b)
shares whereas shares cannot be converted into D. both (a ) and (b )
debentures Ans: A
D. shareholders are the owners of the company
whereas debenture holders are the creditors of 400. In India, the service tax was first
the company introduced in the year:
Ans: D A. 1994
B. 1992
396. What is the minimum calorie intake C. 1996
decided by the Planning Commission for rural D. 1998
and urban areas, respectively ? Ans: A
A. 2100 and 2200
B. 2400 and 2200 401. 'Take off stage' in an economy means:
C. 2400 and 2100 A. economy is stagnant
D. 2100and 2400 B. steady growth begins
Ans: C C. economy is about to collapse
D. all controls are removed
397. The International Development Ans: B
Association, a lending agency, is administered by
the 402. One-rupee currency notes bear the
A. International Fund for Agricultural signature of:
Development A. Prime Minister of India
B. International Bank for Reconstruction and B. Finance Minister of India
Development C. President of India
C. United Nations Industrial Development D. Finance Secretary of India
Organization Ans: D
D. United Nations Development Programme
Ans: B 403. Which of the following are referred to as
the developed economies?
398. Consider the following statements in A. Countries proficient in trade and export
respect of the National Rural Employment B. Countries having large per capita income
Guarantee Act, 2005 : C. Countries earning huge industrial profits
1. Under the provisions of the Act, 100 days of D. Countries advanced in technology
employment in a year to every household whose Ans: B
adult members volunteer to do unskilled manual
work has become a fundamental right. 404. Indian Railways revenue from:
2. Under the provisions of the Act, women are to A. freight
get priority to the extent that one-half of persons B. passenger tax
who are given employment are women who have C. passenger fare
asked for work. Which of the statements given D. traffic tax
above is/are correct? Ans: A
A. Neither 1 and 2 405. Which one of the following statements is

B. 1 only not correct?
C. 2 only A. Salem Steel Plant is a premier producer of

stainless steel in India. Ans: A
B. Maharashtra Elektrosmelt Ltd. is a subsidiary
of the Steel Authority of India Ltd. 411. The 'Uruguay Round' negotiations resulted
C. Visakhapatnam Steel Plant is a unit of the in the establishment of:
Rashtriya Ispat Nigam Ltd. A. WHO
D. Rourkela Steel Plant, the first integrated steel B. OECD
plant in the Public Sector of India was set up C. NATO
with the Soviet Union collaboration. D. WTO
Ans: D Ans: D
406. Poverty in less developed countries is 412. The deputy chairman of the Planning
largely due to Commission:
A. lack of intelligence of the people A. is an economist of repute
B. voluntary idleness B. is the Prime Minister
C. income inequality C. holds the rank of a cabinet minister
D. lack of cultural activities D. is the Planning Minister
Ans: C Ans: C
407. Basel II relates to which one of the 413. Under VAT, how many slabs are there?
following? A. 4
A. Measures against cyber crimes B. 3
B. International standards for measuring the C. 2
adequacy of a bank's capital D. 5
C. International standards for safety in civil Ans: A
aviation
D. Measures against drug abuse by sports 414. Consequent 'upon the recommendations of
persons the Working Group on Rural Banks, 5 Rural
Ans: B Regional Banks were initially set up in the year
A. 1973
408. Which one of the following situations B. 1975
makes a firm most efficient? C. 1974
A. Falling average costs D. 1976
B. Constant average costs Ans: B
C. Rising average costs
D. Lowest average costs 415. Which one of the following Five-Year Plans
Ans: D recognised human development as the core of all
developmental efforts?
409. Which of the following provides the largest A. The Eighth Five-Year Plan
part of the demand for loanable funds in India? B. The Sixth Five-Year Plan
A. Corporate businesses C. The Fifth Five-Year Plan
B. Private-house purchasers D. The Third Five-Year Plan
C. Hire-purchase borrowers Ans: A
D. Farmers
Ans: A 416. The primary objective of Unit Trust of India
is:
410. Which of the following taxes is not levied A. to promote the investment habit among those
by the Union Government? who have not been able to diversify investment
A. Profession Tax risk
B. Income Tax B. to accumulate funds for public investment
C. Wealth Tax expenditure
D. Excise Duty C. to assist the industries in financial difficulties

D. to diffuse the benefit of development among C. Both 1 and 2
the masses D. Neither 1 nor 2
Ans: A Ans: D
417. The recommendations of the Finance 422. Consider the following statements:
Commission are: Full convertibility of the rupee may mean:
A. not binding on the government 1. its free float with other international
B. binding on the government currencies.
C. accepted or rejected by the government 2. its direct exchange with any other
according to its convenience international currency at any prescribed place
D. generally accepted as a matter of convention inside and outside the country.
Ans: C 3. it acts just like any other international
currency.
418. Consider the following financial Which of these statements are correct?
institutions of India: A. 1 and 3
1. Industrial Finance Corporation of India (IFCI) B. 1, 2 and 3
2. Industrial Credit and Investment Corporation C. 1 and 2
of India (ICICI) D. 2 and 3
3. Industrial Development Bank of India (IDBI) Ans: C
4. National Bank for Agriculture and Rural
Development (NABARD) 423. Octroi is levied and collected by:
The correct chronological sequence of the A. local bodies
establishment of these institutions is : B. State Government
A. 1, 2, 3, 4 C. all the above
B. 2, 3, 4, 1 D. Centre
C. 3, 4, 1, 2 Ans: A
D. 4, 1, 2, 3
Ans: A 424. How do we define the terms bull and bear
with regard to stock markets?
419. Who is called the 'Father of Economics' ? A. There is nothing significantly different as
A. Max Muller both operate in the capital market
B. None of these B. A bull is ready to buy any share; a bear only
C. Adam Smith deals in government securities
D. Karl Marx C. A bull is an optimistic operator who first buys
Ans: C and then sells shares in expectation of the price
going up; a bear is a pessimistic market operator
420. Monetary policy is regulated by: who sells the shares in expectation of buying
A. Central Bank them back at a lower price
B. private entrepreneurs D. Bull is one who first sells a share and then
C. money lenders buys it at a lower price; bear means one who
D. Government policy first buys and then sells it in expectation of
Ans: A prices going up
Ans: C
In India, stamp duties on financial transactions 425. Which of the following is/are treated as
are: artificial currency?
1. levied and collected by the State Government A. Both ADR and SDR
2. appropriated by the Union Government B. SDR
Which of the statements is/are correct? C. GDR
A. Only 2 D. ADR
B. Only 1 Ans: B

426. Word Bull and Big are associated with 432. Among the reasons for disguised
which branch of commercial activity? unemployment in the rural areas is :
A. Foreign Trade A. high illiteracy rate
B. Banking B. heavy pressure of population along with slow
C. Share Market implementation of land reforms
D. Manufacturing C. choice of a heavy industry model for
Ans: C economic development
D. low levels of technological development in the
427. Among the following, which one is not a country
credit rating agency operating in India? Ans: D
A. CARE
B. Dow Jones 433. In India, the first bank of limited liability
C. ICRA managed by Indians and founded in 1881 was:
D. CRISIL A. Punjab and Sind Bank
Ans: B B. Punjab National Bank
C. Hindustan Commercial Bank
428. India is said to be in the second stage of D. Oudh Commercial Bank
the demographic transition because: Ans: D
A. death rates and birth rates are declining
sharply 434. Which of the following is not a direct tax?
B. none of the above A. Tax on income
C. birth rate is high but -death rate is declining B. Tax on entertainment
due to improvement in healthy services C. Tax on expenditure
D. both birth and death rates are high D. Tax on wealth
Ans: C Ans: B
429. Inflation is caused as a result of: 435. Which of the following factors contributes
A. fall in production to an inflationary trend?
B. increase in money supply A. 15% fall in production of industrial goods
C. increase in money supply without a B. 15% increase in prices of agricultural
corresponding increase in production products
D. decrease in money supply without a C. 15% increase in supply of money in the
corresponding decrease in production market
Ans: C D. none of these
Ans: C
430. The place where bankers meet and settle
their mutual claims and accounts is known as : 436. The basic objectives of Indian planning are:
A. collection Centre 1. economic growth
B. treasury 2. self-reliance
C. clearing House 3. employment generation
D. dumping Ground 4. population growth
Ans: C
A. 1, 2 and 4
431. Sector-wise, maximum employment in the B. 1, 2 and 3
public sector is in : C. 1, 2, 3 and 4
A. finance, insurance and real estate D. 2 and 3
B. transport, storage and communication Ans: B
C. community, social and personal services
D. electricity, gas and water 437. The steel plants at Durgapur, Bhilai and
Ans: C Rourkela were established during the period of:
A. Fourth Five Year PIan

B. First Five Year Plan transaction with the rest of the world
C. Third Five Year Plan C. transactions in the flow of capital
D. Second Five Year Plan D. transactions relating to receipts and payment
Ans: D of invisibles
Ans: B
438. India opted for 'Mixed Economy' in :
A. Industrial Policy of 1948 443. In India, which of the following have the
B. Second Five Year Plan highest share in the disbursement of credit to
C. None of the above agriculture and allied activities?
D. Framing of the Constitution A. Commercial Banks
Ans: A B. Microfinance Institutions
C. Cooperative Banks
439. In which one of the following five year D. Regional Rural Banks
plans the actual growth performance in India in Ans: A
respect of GDP (at factor cost) was less than the
target set? 444. Consider the following statements:
A. Ninth five year plan 1. The National Housing Bank, the apex
B. Eighth five year plan institution in housing finance in India, was set
C. Sixth five year plan up as a wholly owned subsidiary of the Reserve
D. Seventh five year plan Bank of India
Ans: A 2. The Small Industries Development Bank of
India was established as a wholly owned
440. Which neighbouring country has objections subsidiary of the Industrial Development Bank of
on Indian Baglihar Hydro-electric Project? India
A. Nepal Which of the statements given above is/are
B. Pakistan correct?
C. Bangladesh A. Both 1 and 2
D. Bhutan B. 2 only
Ans: B C. 1 only
D. Neither 1 nor 2
441. Consider the following statements: Ans: A
1. The loans disbursed to farmers under Kisan
Credit Card Scheme are covered under 445. The most important small-scale industry in
Rashtriya Krishi Beema Yojna of Life Insurance India is that of:
Corporation of India. A. textiles
2. The Kisan Credit Card holders are provided B. handloom
personal accident insurance of Rs.50000 for C. jewellery
accidental death and Rs. 25000 for permanent D. jute
disability. Ans: B
Which of the statement given above is/are
correct? 446. Consider the following statements with
A. Neither 1 or 2 reference to Indira Gandhi National Old Age
B. 1 only Pension Scheme
C. Both 1 and 2 1. All persons of 60 years or above belonging to
D. 2 only the households below poverty line in rural areas
Ans: D are eligible
.2. The Central Assistance under this Scheme is
442. BoP (Balance of Payment) refers to : at the rate of Rs. 300 per month per beneficiary.
A. transactions relating only to exports and Under the Scheme, States have been urged to
imports give matching amounts.
B. systematic record of all its economic Which of the statements given above is/are

correct? Ans: B
A. Both 1 and 2
B. 1 only 451. Which of the following industries was
C. Neither 1 nor 2 started first in India?
D. 2 only A. Paper
Ans: C B. Cotton
C. Tea
447. Which of the following groups suffer the D. Jute
most from inflation? Ans: C
A. Creditors
B. Debtors 452. Human Development Index comprises
C. Business class literacy rates, life expectancey at birth and:
D. Holders of real assets A. gross national product in US dollars
Ans: A B. gross domestic product per head in the US
dollars
448. Which organisation promotes the foreign C. national income per head in US dollars
trade? D. gross domestic product per head at real
A. MMTC purchasing power
B. STC Ans: D
C. All of these
D. ECGC 453. Which of the following is now a punishable
Ans: C offence by a Bank Account holder ?
A. If a cheque is not crossed
449. The National Stock Exchange functions B. If a post-dated cheque is issued
from: C. If a cheque drawn by him is dishonoured for
A. Mumbai insufficiency of funds in his account
B. Kolkata D. Issuing a cheque without signature
C. New Delhi Ans: C
D. Nagpur
Ans: A 454. The per capital foodgrains consumption:
A. has fluctuated
450. Which one of the following statements is B. has fallen steadily over the years
not correct? C. has risen very slowly
A. Ministry of Social Justice and Empowerment D. has remained stagnant
has scheme in which indigent people living in Ans: C
welfare institutions like orphanges are given 15
kg of food grains per person per month at BPL 455. The Rural Landless Employment Guarantee
rates Programme (RLEGP) is an extension of:
B. Under the Targeted Public Distribution A. Integrated Rural Development Programme
System, the families Below Poverty Line are (IRDP)
provided 50 kg. of food grains per month per B. Training of Rural Youth for Self Employment
family at subsidised price (TRYSEM)
C. Under Annapurna Scheme, indigent senior C. Minimum Needs Programme (MNP)
citizens of 65 years of age or above eligible for D. National Rural Employment Programme
National Old Age Pension but not getting (NREP)
pension can get 10 kg of food grains per person Ans: D
per month free of cost
D. Ministry of Human Resource Development 456. Which of the following gives the maximum
gives financial support to Mid-Day Meal Scheme production of edible oil?
for the benefit of class I to V students in A. Mustard
Government or Government aided Schools B. Groundnut

C. Rapeseed A. It contributes nearly 25 per cent of the GDP
D. Sunflower B. The share of foodgrains in gross cropped area
Ans: B has increased since independence
C. India has the least area in the world under
457. Which one of the following is not a feature pulse crops
of Limited Liability Partnership firm? D. Agriculture accounts for twenty per cent of
A. Internal governance may be decided by India's exports
mutual agreement among partners Ans: A
B. Partners should be less than 20
C. It is a corporate body with perpetual 463. Consider the following countries:
succession 1. Brazil
D. Partnership and management need not be 2. Mexico
separate 3. South Africa
Ans: B According to UNCTAD, which of the above is/are
categorized asEmerging Economies?
458. Tax collection of Central govt. was lowest A. 1 only""
as compare to G.D.P., in which of the following B. 1
year? C. 2 and 3 only
A. 2000-2001 D.
B. 1999-2000
C. 2002-2003 464. Put the main sources of revenue of the
D. 2001-2002 Central Government in ascending order of
Ans: B importance:
1. Income tax
459. By which bill does the government make 2. Corporation tax
arrangement for the collection of revenues for a 3. Customs
year? 4. Excise duties
A. Economic Bill
B. Fiscal Budget A. 3, 2, 4, 1
C. Finance Bill B. 4, 3, 1, 2
D. Supplementary Budget C. 4, 3, 2, 1
Ans: C D. 1, 2, 3, 4
Ans: C
460. Regional Rural Banks are designed to work
in which of the following ideals? 465. Which of the following is wrongly
A. Work on innovative and adaptive ideals matched?
B. Work on basics of commercial banks A. Central Duck Breeding Farm – Chikmagalur
C. Help the targetted groups B. Central Institute of Coastal Engineering for
D. Keep lending rates lower than cooperative Fisheries – Bangalore
institutions C. Indian Institute of Sugarcane Research –
Ans: C Lucknow
D. National Institute of Animal Genetics – Karnal
461. G-77 summit is a forum for: Ans: A
A. East-West Cooperation
B. South-South Cooperation 466. Which of the following authority sanctions
C. North-South Cooperation foreign exchange for the import of goods?
D. North-North Cooperation A. Exchange Bank
Ans: C B. Reserve Bank of India
C. Ministry of Finance
462. Which of the following statements D. Any Nationalised Bank
regarding Indian agriculture is correct? Ans: B

467. Which of the following is not sponsor of 473. Minimum inflation in post economic reform
newly established UTI-II? was in :
A. General Insurance Corporation A. 1999-2000
B. Punjab National Bank B. 2002-03
C. State Bank of India C. 2001-02
D. Life Insurance Corporation of India D. 2000-01
Ans: A Ans: A
468. In the short run, a producer continues his 474. The best way, a bank can avoid loss is to :
production as long as he covers: A. give only short-term loans
A. marginal cost B. accept sound collateral
B. average cost C. lend only to individuals known to the bank
C. fixed cost D. lend only to bank's old customers
D. variable cost Ans: C
Ans: C
475. Gross National Product is less than Gross
469. Voting rights in the IMF are distributed on Domestic Product depending upon whether:
the basis of: A. net factor income from abroad is positive or
A. proportion to quota alloted to countries from negative
time to time B. indirect taxes are more than subsidies
B. one country, one vote C. indirect taxes are less than subsides
C. proportion to the share of the income of the D. depreciation is included or not
country in the world income Ans: A
D. proportion to contributions given by each
country 476. Among the achievements of Indian
Ans: A planning, we may include:
1. development of strong infrastructure
470. India has: 2. diversification of industry and exports
A. Mixed economy 3. high growth of national income
B. Free economy 4. strong control over prices
C. Socialistic economy
D. Gandhian economy A. 2 and 3
Ans: A B. 1, 2 and 4
C. 1, 2 and 3
471. The Five Year Plans of India intend to D. 1 and 2
develop the country industrially through: Ans: D
A. the public sector
B. the private sector 477. One of the following leads to
C. increasing collaboration with non-resident underestimation of national income in India: 1.
Indians Inflation
D. the public, private, joint and Cooperative 2. Devaluation
sectors 3. Non-Monetary consumption
Ans: D 4. Large unorganized sector
Choose correct answer from:
472. The Imperial Bank of India, after A. 1, 3 and 4
nationalisation was given the name of: B. 2, 3 and 4
A. Bank of India C. 1, 2, 3 and 4
B. Reserve Bank of India D. 3 and 4
C. State Bank of India Ans: D
D. Indian Overseas Bank
Ans: C 478. When was the decimal system of currency

introduced in India? A. 1, 3 and 4
A. 1957 B. 1, 2 and 3
B. 1950 C. 3 and 4
C. 1948 D. 1 and 2
D. 1954 Ans: A
Ans: A
484. Which of the following is wrongly matched:
479. Core industries include: A. interest rate-fiscal policy
A. industries catering to defence requirements B. general price index-inflation
B. basic industries C. export subsidy-fiscal policy
C. all the above D. share market-stock exchange
D. critical industries Ans: A
Ans: C
485. In the context of Indian economy, consider
480. How does the consumer benefit with VAT? the following pairs: Term Most appropriate
A. It reduces the cost of production description
B. With the abolition of the sales tax 1. Melt down Fall in stock prices
C. Due to the exemption of small Businesses 2. Recession Fall in growth rate
from the tax within certain limits prescribed by 3. Slow down Fall in GDP
the State Which of the pairs given above is/are correctly
D. It removes tax on tax and thus reduces price- matched?
rise
Ans: D A. 1 and 3 only
B. 2 and 3 only
481. Dear Money Policy implies: C. 1 only
A. large money supply D. 1, 2 and 3
B. high price level Ans: C
C. high production
D. high interest rates 486. Which one of the following is the correct
Ans: D statements? Service tax is a/an
A. indirect tax levied by the Central Government
482. Which one of the following is NOT with in B. direct tax levied by the State Government
the duties of the Planning Commission? C. indirect tax levied by the State Government
A. To define the stage of growth and suggest D. direct tax levied by the Central Government
allocation of resources Ans: A
B. To determine the nature of machinery
required for implementation of plan proposals 487. Special Drawing Rights (SOR) facility is
C. To make an assessment of the material, available at :
capital and human resources of the country A. World Bank (IBRD)
D. To prepare the annual central budget B. International Monetary Fund (IMF)
Ans: D C. Organisation of Economic Cooperation and
Development (OECD)
483. NAFED is concerned with: D. International Development Association (lDA)
1. promotion of inter-state and export trade of Ans: B
farm produce
2. import of foodgrains for buffer stocking and 488. 157. Which of the following statements
public distribution is/are correct?
3. marketing of eggs and poultry' at national 1. If a country is experiencing increase in its per
level capita GDP
4. movement of consumer goods from surplus A.
areas to scarcity areas B.

C. 493. Which of the following expenses do not
D. require the sanction of Parliament?
Ans: A I. Salary and allowances of the President and
Ans: B CAG
Ans: C II. Debt charges of the Government
Ans: D III. Defence expenditure
IV. Maintenance expenditure of embassies
489. The main objective of First Five-year Plan
was: A. I, II
A. development of agriculture including B. I, II, III
irrigation and power projects C. II, IV
B. self-reliance D. I, II, III, IV
C. industrial growth Ans: A
D. economic growth
Ans: A 494. 'Balanced Growth' means:
A. growth which brings about a balance between
490. The Planning Commission of India: the traditional and modern sector
I. was set up in 1950 B. growth which brings about a balance
II. is a constitutional body between the public and private sectors
III. is an advisory body C. growth pattern on which simultaneous
IV. is a government department investments are made in all the sectors of the
A. I and II economy, viz., Agriculture, Industry, Transport,
B. III only Communication, etc.
C. II and III D. growth which brings about a balance
D. I and III between the rich and the poor
Ans: D Ans: C
491. Consider the following statements: 495. Which of the following may be termed as
In India, taxes on transactions in Stock long-term objectives of Indian planning?
Exchanges and Futures Markets are 1. levied by 1. Self-reliance
the Union 2. Productive employment generation
2. collected by the States 3. Growth of 7 per cent per annum
Which of the statements given above is/are 4. Growth in infrastructure
correct?
A. 2 only A. 1, 2 and 4
B. Both 1 and 2 B. 3 and 4
C. Neither 1 nor 2 C. 2, 3 and 4
D. 1 only D. 1 and 2
Ans: D Ans: D
492. The increase in agricultural production is 496. Which one of the following is a revamp of
due to: 1. increase in area under crops the Integrated Rural Development Programme?
2. improvement in yield A. Community-based Pro-poor Initiative
3. improvement in cropping pattern B. Swarnajayanti Gram Swarozgar Yojana
4. effective implementation of land reforms C. Jawahar Gram Samridhi Yojana
D. National Social Assistance Programme
A. 1, 2, 3 and 4 Ans: B
B. 1 and
C. 1, 2 and 3 497. The standard of living in a country is
D. 1 and 3 represented by its:
Ans: C A. poverty ratio

B. national income B. Finance Ministry
C. per capita income C. Auditor and Comptroller General of India
D. unemployment rate D. Reserve Bank of India
Ans: C Ans: D
498. Which two of the following nationalized 504. Which of the statements given above is/are
banks have been merged as per the correct?
recommendation of the Narsimhan Committee? 1. The USSR assisted in the building of the
A. New Bank of India and Bank of India Bhilai Steel plant.
B. Parur Bank of India and Bank of India 2. The British assisted in the building of the
C. Punjab National Bank and New Bank of India Bokaro Steel plant.
D. Central Bank of India and Corporation Bank
Ans: C A. Neither 1 nor 2
B. Both 1 and 2
499. Which one of the following is not related to C. 1 only
United Nations? D. 2 only
A. International Finance Corporation Ans: C
B. Multilateral Investment Guarantee Agency
C. International Centre for Settlement of 505. Which one of the following Public Sector
Investment Disputes banks' emblem figures a dog and the words
D. Bank for International Settlements 'faithful, friendly' in it ?
Ans: D A. Syndicate Bank
B. Oriental Bank of Commerce
500. The headquarters of World Trade C. Punjab National Bank
Organisation is in : D. State Bank of India
A. Geneva Ans: A
B. Montreal
C. The Hague 506. Poverty Gap is :
D. Seattle A. gap between the rich and the poor
Ans: A B. the difference between poverty line and
actual income levels of all those living below that
501. Which of the following is not part of state line
tax? C. gap between developed nations and
A. Stamp duty other than financial documents developing nations
B. Sales and purchase of newspapers D. gap in infrastructural facilities between
C. Entertainment tax developed and developing nations
D. Land revenue Ans: B
Ans: B
507. The Indian budget includes:
502. In which Plan was the growth rate target A. revised estimates for the current year
exceeded? B. budget estimates for the following year
A. First C. actual figures of the preceding year
B. Fifth D. all of these
C. None of these Ans: D
D. Sixth
Ans: A 508. M1 includes:
A. demand deposit with bank
503. Who is responsible for the collection and B. other deposits with RBI
publication of monetary and financial C. currency with public
information? D. all of the above
A. Finance Commission Ans: D

509. Both Foreign Direct Investment (FOI) and D. Neither 1 nor 2
Foreign Institutional Investor (FII) are related to Ans: C
investment in a country. Which one of the
following statements best represents an 513. The oldest stock exchange of India is :
important difference between the two? A. Bombay Stock Exchange
A. FII is considered to be more stable than FDI B. Hyderabad Stock Exchange
B. FII helps in increasing capital availability in C. Bangalore Stock Exchange
general, while FDI only targets specific sectors D. Ahmedabad Stock Exchange
C. FII helps bring better management skills and Ans: A
technology, while FDI only brings in capital
D. FDI flows only into the secondary market, 514. What is the current account of balance of
while FII targets primary market payments?
Ans: B A. It is the account showing transactions like net
external assistance, NRI deposits, etc.
510. Under perfect competition: B. It is the account showing transactions in
A. no firm can influence price and supply in the invisible account like tourism, shipping,
market insurance etc.
B. any firm can influence price in the market C. It is the account showing trade balance plus
C. any firm can influence supply in the market invisible balance
D. any firm can influence price and supply in the D. It is the account showing difference of total
market exports and imports in one year
Ans: D Ans: C
511. Consider the following statements: 515. Which of the statements given below is/are
1. life Insurance Corporation of India is the correct?
oldest insurance company in India. 1. Food for Work Programme was launched in
2. National Insurance Company limited was India during the 10th Five Year Plan.
nationalized in the year 1972 and made a 2. The Planning Commission in India is a
subsidiary of General Insurance Corporation of constitutional body.
India.
3. Headquarters of United India Insurance A. Both 1 and 2
Company limited are located at Chennai. B. Neither 1 nor 2
Which of the statements given above are C. 1 only
correct? D. 2 only
A. 1 and 3, only Ans: C
B. 1 and 2, only
C. 2 and 3, only 516. Economic growth is usually coupled with
D. 1, 2 and 3 A. stagflation
Ans: C B. hyperinflation
C. deflation
512. With reference to Indian economy, D. inflation
consider the following statements: Ans: D
1. The Gross Domestic Product (GDP) has
increased by four times in the last 10 years. 517. Which one of the following is the correct
2. The percentage share of Public Sector in GDP sequence in the decreasing order of contribution
has declined in the last 10 years. of different sectors to the Gross Domestic
Which of the statements given above is/are Product of India ?
correct? A. Services-Industry-Agriculture
A. 1 only B. Services-Agriculture-Industry
B. Both 1 and 2 C. Industry-Agriculture-Services
C. 2 only D. Industry-Services-Agriculture

Ans: A C. 1 only
D. Neither 1 nor 2
518. Which of the following combinations is Ans: C
correct?
A. NABARD-Industrial Loans 523. Low productivity of agriculture in India is
B. RRB-Agricultural finance not caused by:
C. RBI-Long term finance A. inadequate availability of inputs
D. IDBI-Short term loans B. poor finance facilities
Ans: B C. subdivision of land holdings
D. less area under cultivation
519. Which one among the following is not a Ans: D
clause of World Trade Organization?
A. Providing financial support to the countries 524. What is the main objective of Antyodaya
having deficit balance of payments programme?
B. Most favoured nation. treatment A. Uplift the urban poor
C. Discouraging unfair trade practices such as B. Uplift the landless labour
antidumping and export subsidies C. Uplift the farmer
D. Lowering trade barriers with negotiations D. Uplift the poor
Ans: A Ans: D
520. In India, the concepts ofminimum heeds 525. Participatory Notes (PNs) are associated
anddirected anti-poverty programmes were the with which one of the following?
innovations of: " A. United Nations Development Programme
A. Sixth Five-year Plan B. Foreign Institutional Investors
B. Seventh Five-year Plan C. Consolidated Fund of India
C. Fourth Five-year Plan D. Kyoto Protocol
D. Fifth Five-year Plan Ans: B
Ans: D
526. In India, which of the following is
521. Inflationary Gap is a situation regulated by the Forward Markets Commission?
characterized by: A. Currency Futures Trading
A. excess of Aggregate Demand over Aggregate B. Both Commodities Futures and Financial
Supply at the full employment level Futures Trading
B. Inflation coupled with recession C. Commodities Futures Trading
C. gap between Galloping Inflation and Runaway D. Equity Futures Trading
Inflation Ans: C
D. Inflation that usually prevails in a developing
country 527. An individual's actual standard of living
Ans: A can be assessed by
A. Per Capital Income
522. With reference to BRIC countries, consider B. Disposable Personal Income
the following statements: C. Gross National Income
1. At present, China's GDP is more than the D. Net National Income
combined GDP of all the three other countries. Ans: B
2. China's population is more than the combined
population of any two other countries. 528. Match the following:List-I List-II
Which of the statements given above is/are A. Depression 1. Coexistence-of inflation and
correct? stagnation
B. Recession 2. Recovery from depression
A. Both 1 and 2 C. Reflation 3. Reduction in production over a
B. 2 only short period

D. Stagflation 4. Insufficient demand leading to D. Kuwait City
idle men and machinery over a long time Ans: A
5. Reduction in level of economy due to falling
prices 534. Which of the following is the largest (in
ABCD terms of' turnover) Public Sector organisation in
A. 3 4 2 1 India?
B. 4 3 2 1 A. Indian Oil Corporation
C. 4 3 2 5 B. Bharat Petroleum
D. 1 2 3 5 C. Oil and Natural Gas Commission
Ans: B D. Steel Authority of India
Ans: A
529. Temporary tax levied to obtain additional
revenue is called: 535. In which of the Five Year Plans, preference
A. rate was given to the weaker sections of the society ?
B. surcharge A. Fifth
C. fee B. Third
D. cess C. Second
Ans: B D. Fourth
Ans: A
530. For regulation of the Insurance Trade in
the country the Government has formed: 536. Inflation implies:
A. General Insurance Corporation A. rise in prices of consumer goods
B. Insurance Regulatory and Development B. rise in money supply
Authority C. rise in general price index
C. SEBI D. rise in budget deficit
D. Reserve Bank of India Ans: C
Ans: B
537. In India the co-operative movement was
531. To prevent recurrence of scams in Indian initiated in the sector of :
Capital Market, the Government has assigned A. agricultural credit
regulatory powers to: B. farming
A. SEBI C. consumer goods production
B. SBI D. marketing of agricultural products
C. RBI Ans: A
D. ICICI
Ans: A 538. Net factor income from abroad added to
GDP gives:
532. Invisible trade is a trade: A. NDP
A. of government with other countries B. GNP
B. of government with public institutions C. per capital income
C. of corporate and financial institutions with D. NNP
government Ans: B
D. of the services like the bank, marine
companies and shipping companies 539. Match the following:
Ans: D List-I List-II
A. Year of the Great Divide 1. 1950
533. The headquarters of OPEC (Organisation B. Industrial Policy Resolution 2. 1921
of Petroleum Countries) is at : C. Setting up of Planning Commission 3. 1969
A. Algeria D. Nationalisation of 14 Commercial banks 4.
B. Tehran 1956
C. Vienna ABCD

A. 4 3 1 2 C. vote on account
B. 2 4 1 3 D. contingency budget
C. 2 1 3 4 Ans: C
D. 1 3 4 2
Ans: B 545. What are Open Market Operations ?
A. Selling of currency by the RBI
540. The system of Budget was introduced in B. Sale of shares by FIIs
India during the viceroy alty of: C. Selling of gilt-edged securities by the
A. Dalhousie Government
B. Ripon D. Activities of SEBI-registered brokers
C. Canning Ans: C
D. Elgin
Ans: C 546. Gadgil Formula refers to the allocation of:
A. market borrowings between the States
541. Which of the following activities would B. Central Plan assistance between the States
Small Industries Development Bank of India C. tax proceeds between the States
(SIDBI) undertake under the new rural D. foreign aid between the Centre and States
industrialisation programme? Ans: C
1. Consultation in erecting the project
2. Providing marketing assistance and refinance 547. India's wage policy is based on :
facilities at later stage A. productivity
3. Running the project during initial stage B. cost of living
C. standard of living
A. Only 1 D. None of the above
B. Only 1and 2 Ans: B
C. Only 2
D. Only 2 and 3 548. A very rapid growth in prices in which
Ans: B money loses its value to the point where even
barter may be preferable is known as:
542. Open market operations of a Central Bank A. inflation
are sale and purchase of: B. hyper-inflation
A. trade bills C. deflation
B. government securities D. disinflation
C. corporate securities Ans: B
D. foreign currencies
Ans: A 549. The 'gilt-edged' market deals in :
A. Corporate bonds
543. Which part of separated UTI is under B. bullion
SEBl's regulation? C. Govt. securities
A. UTI-II D. worn and torn currency notes
B. None of the above Ans: B
C. Both the above
D. UTI-I 550. Which of the following is not true about
Ans: A 'vote-on-account'?
A. This allows the Government to withdraw an
544. Grants or advances made by the House to amount for a period with the consent of
enable the government to carry on until the Parliament
voting of the demands for grants and passing of B. It does not allow the Government to set for
the General Appropriation Bill is called: the economic policies of the new plan which
A. supplementary budget starts from April 1
B. complementary budget C. It prevents the Government from imposing

fresh taxes or withdrawing old one B. national income has increased and per capital
D. It is a budget presented in the Parliament to income has also increased but at a slower rate
cover the deficit left by the last budget C. national income and per capital income have
Ans: D increased every year
D. national and per capital incomes have both
551. Consider the following statements relating increased fast
to estimation of National Income : Ans: B
1. Foreigners working in Indian Embassies are
normal residents of India. 556. India had a plan holiday:
2. Foreigners working in the office of WHO, A. after the liberation of Bangladesh in 1971
World Bank. UNO etc. located in India are not B. after the India-Pakistan War in 1965
normal residents of India. C. after the China-India War of 1962
3. Indians working in foreign embassies in India D. after the drought of 1966
are not normal residents of India. Which of the Ans: D
statements given above is/are correct?
557. Why has the general budget till recently
A. 1, 2 and 3 always been presented at 5 o' clock in the
B. 1 and 2 evening?
C. 1 only A. It is a carry-over from times of British rule
D. 3 only when the Budget could be discussed in the
Ans: B British Payment simultaneously
B. It is a convention of official secrecy
552. The area under cultivation is declining fast C. All countries present their budgets at this
in the case of: time
A. sugarcane D. So that there is no time for traders to
B. jute manipulate the prices
C. cotton Ans: A
D. tea
Ans: B 558. Which of the following states ranks first in
terms of the maximum number of agrobased
553. Black money is : industries?
A. income on which payment of tax is usually A. Punjab
evaded B. Gujarat
B. money earned through underhand deals C. West Bengal
C. illegally earned money D. Kerala
D. counterfeit currency Ans: A
Ans: A
559. Which of the following is poorest state in
554. In the context of India's Five Year Plans, a India?
shift in the pattern of industrialization, with A. Bihar
lower emphasis on heavy industries and more on B. Odisha
infrastructure begins in C. M.P.
A. tenth Plan D. U.P.
B. eighth Plan Ans: B
C. fourth Plan
D. sixth Plan 560. Persons below the poverty line in India are
Ans: B classified as such based on whether:
A. their daily wages fall below the prescribed
555. Since 1951, in India: minimum wages
A. national income has increased but per capital B. they belong to agricultural labourer
income has decreased household and the scheduled caste/tribe social

group B. can be any of the above
C. they are entitled to a minimum prescribed C. remains constant
food basket D. rises
D. they get work for a prescribed minimum Ans: C
number of days in a year
Ans: C 567. Development is :
A. narrower than economic growth
561. In India, the bank NABARD does not B. wider than economic growth
provide refinance to : C. synonymous with economic growth
A. Regional Rural Banks D. not related to economic growth
B. State Land Development Banks Ans: B
C. Export-Import Banks
D. Scheduled Commercial Banks 568. Swarn Jayanti Gram Swa-Rozgar Yojna
Ans: C came into being in :
A. April 1999
562. Inflation can be contained by: B. July 2001
A. surplus budget C. April 1995
B. reduction in public expenditure D. April 1997
C. increase in taxation Ans: A
D. all the above
Ans: D 569. Which one of the following is not a member
of Organization of the Petroleum Exporting
563. Pradhan Mantri Gramodaya Yojana aims Countries (OPEC)?
at: A. Algeria
A. generating employment in the rural areas B. Brazil
B. meeting rural needs like Primary education; C. Ecuador
health care, drinking water, housing, rural roads D. Nigeria
C. alleviating poverty micro-enterprises Ans: B
D. strengthening the Panchayati Raj System in
rural areas 570. Highest milk producer in India is :
Ans: B A. Punjab
B. Gujarat
564. The exports of India: C. Haryana
A. are spread over several commodity groups D. U.P.
B. have not shown much of a change since Ans: D
1960-61
C. are confined to a few items 571. A Scheduled Bank is one which is included
D. comprise mainly of agro-based products in the:
Ans: A A. II Schedule of Banking Regulation Act
B. II Schedule of Reserve Bank of India Act
565. The number of Banks nationalised since C. None of the above
1969 is : D. II Schedule of Constitution
A. 20 Ans: A
B. 14
C. 12 572. Who was the chairman of National Income
D. 8 Committee?
Ans: A A. V.K.R.V. Rao
B. D.R. Gadgil
566. If the price of an inferior good falls, its C. P. C. Mahalanobis
demand: D. A.M. Khusro
A. falls Ans: C

573. Which institution provides long run finance said to be :
to industries? A. indicative
A. GIC B. limited
B. All of these C. imperative
C. UTI D. democratic
D. LIC Ans: C
Ans: B
579. The largest importer country of Indian
574. Which State produces maximum pulses in textile is :
the country? A. Singapore
A. Maharashtra B. Italy
B. Odisha C. Germany
C. Madhya Pradesh D. USA
D. Uttar Pradesh Ans: D
Ans: C
580. Indicative Planning being pursued in India
575. Absolute Poverty means: since the 8th Plan aims at ensuring that:
A. poverty in terms of the basic minimum calorie 1. Planning mechanism plays a facilitatory role
requirements 2. Planning mechanism brings about a balance
B. poverty in terms of the prevailing price level between need and supply
C. poverty in terms of absolute number of people 3. Planning mechanism concerns itself with
D. poverty in terms of the absolute level of optima! utilisation of resources
unemployment 4. Planning concerns itself with laying down
Ans: A broad directions in which the economy should
move
576. Which one amongst the following has the Choose the correct answer from:
largest livestock population in the world? A. 1, 2 and 4
A. China B. 2, 3 and 4
B. USA C. 1 and 2
C. Brazil D. 1, 2, 3 and 4
D. India Ans: D
Ans: D
581. Which of the following is at the apex of
577. Consider the following about the 'Rolling Industrial Finance in India?
Plan': A. Reserve Bank of India
I. A plan for the current year which includes the B. Industrial Credit and Investment Corporation
annual budget of India
II. A plan for a fixed number of years, say 3, 4 or C. Industrial Finance Corporation
5 D. Industrial Development Bank of India
III. It is revised every year as per requirements Ans: D
of the economy
IV. A perspective plan for 10, 15 or 20 582. Bouncing of cheques has become an
yearsWhich of the above are correct? offence. What is the punishment for the same:
A. 1year imprisonment
A. I, II, III and IV B. 3 years imprisonment
B. I and III C. 2 years imprisonment
C. I and II D. 6 months imprisonment
D. II and III Ans: D
Ans: B
583. The RBI uses the following instruments for
578. India's economic planning CANNOT be quantitative central of credit:

(i) Cash Reserve Ratio C. 1 4 3 2
(ii) Bank Rate D. 1 2 3 4
(iii) Open Market Operations Ans: C
(iv) Margin Requirements
Choose your answer from: 588. Under increasing returns the supply curve
is
A. (ii) and (iv) A. parallel to the quantity-axis
B. (i), (ii), (iii) and (iv) B. positively sloped from left to right
C. (i) and (ii) C. negatively sloped from left to right
D. (i), (ii) and (iii) D. parallel to the price-axis
Ans: D Ans: B
584. More than one-third of the crude steel 589. Consider the following:
production of the world comes from 1. Life expectancy at birth
A. Russia 2. Gross enrolment ratio for schools
B. China 3. Adult Literacy rate
C. U.S.A. 4. Per capita income
D. Japan Which of the above is/are the parameters for the
Ans: B measurement of Human Development Index by
UNDP?
585. 'Dumping' in the context of international A. 1, 2 and 4
trade refers to : B. 4 only
A. exporting goods of inferior quality C. 1, 2, 3 and 4
B. exporting goods at prices below the actual D. 1 and 3
cost of production Ans: C
C. exporting goods only to re-import them at
cheaper rates 590. Fresh evalution of every item of
D. exporting goods without paying the expenditure from the very beginning of each
appropriate taxes in the receiving country financial year is called:
Ans: B A. deficit Budgeting
B. performance Budgeting
586. The strategic aim of IRDP is : C. fresh Budgeting
A. to provide more opportunities for rural D. zero-based Budgeting
employment and credit facilities at concessional Ans: D
rate of interest
B. to provide the required inputs for increasing 591. Bokaro Steel Limited was established with
agricultural productivity the assistance of:
C. to reduce unemployment A. USA
D. none of these B. Germany
Ans: A C. Soviet Union
D. UK
587. Match the following: Industry Product / Ans: C
service
A. Grasim 1. Cement 592. In terms of economy, the visit by foreign
B. Ranbaxy 2. Automobiles nationals to witness the XIX Common Wealth
C. Reliance 3. Oil and gas Games in India amounted to
D. TELCO 4. Pharmaceuticals A. Import
ABCD B. Export
C. Consumption
A. 3 2 1 4 D. Production
B. 3 4 1 2 Ans: B

593. The Food For Work programme was
renamed as:
A. National Rural Employment Programme
(NREP)
B. Jawahar Rozgar Yojana (JRY)
C. Rural Landless Employment Guarantee
Programme (RLEGP)
D. Integrated Rural Development Programme
(IRDP)
Ans: A
594. Economic survey is published by :

A. Indian Statistical Institute
B. Planning Commission
C. Govt. of India
D. Ministry of Finance
Ans: D

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Economics previous years Asked question in Various UPSC /SSC exams

1. The highest denomination of currency notes A. constant

4. Match the following: Committees Chaired by 9. Consider the following statements:

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A. only II 16. What is Laissez-faire?

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47. Who is the originator of Green Revolution in A. 1, 2 and 3

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172. Broad money in India is : 177. Consider the following statements: (A ) In

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A. 2 1 3 4 5 225. The concept of Five Year Plans in India was

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316. CENVAT is associated with: 321. The Indian income tax is :

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A. Neither 1 and 2 405. Which one of the following statements is

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