Economy last 5 year Questions

Q1.Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

  1. The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
  2. The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
  3. The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.
  4. The incentive given by the Government, to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

Answer-C

Q2.With reference to the governance of public sector banking in India, consider the following statements 

  1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
  2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-B

Q3.With reference to digital payments, consider the following statements: 

  1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
  2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-A

Q4. Consider the following statements: 

  1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
  2. CAR is decided by each individual bank.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-A

Q5. Consider the following statements: 

  1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
  2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
  3. Treasury bills offer are issued at a discount from the par value.

Which of the statements given above is/are correct?

  1. 1 and 2 only
  2. 3 Only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer: C

Q6. Which one of the following statements correctly describes the meaning of legal tender money? 

  1. The money which is tendered in courts of law to defray the fee of legal cases
  2. The money which a creditor is under compulsion to accept in in settlement of his claims.
  3. The bank money in the form of cheques, drafts, bills of exchange, etc.
  4. The metallic money in circulation in a country

Answer-B

Q7. Which one of the following links all the ATMs in India? 

  1. Indian banks’ Association
  2. National Securities Depository Limited.
  3. National Payment Corporation of India.
  4. Reserve bank of India.

Answer-C

Q8. Consider the following statements 

  1. The Fiscal Responsibility and Budget Management ( FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
  2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
  3. As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3

Answer: C

Q9. Consider the following items: 

  1. Cereal grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. Newspapers containing advertising material

Which of the above items is/are exempted under GST (Goods and Services Tax)?

  1. 1 only
  2. 2 and 3 only
  3. 1, 2 and 4 only
  4. 1, 2, 3 and 4

Answer-A

Q10. Regarding Money Bill, which of the following statements is not correct?

  1. A bill shall be deemed to be a money Bill if it contains only provisions relating to imposition , abolition , remission, alteration or regulation of any tax,
  2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
  3. A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
  4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.

Answer-A

Q11. With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? 

  1. It is introduced as a part of the Income Tax Act.
  2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-D

Q12. India enacted The Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

  1. ILO
  2. IMF
  3. UNCTAD
  4. WTO

Answer-D

Q13. Consider the following countries: 

  1. Australia
  2. Canada
  3. China
  1. India
  2. Japan
  3. USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

  1. 1, 2, 4 and 5
  2. 3, 4, 5 and 6
  3. 1,3,4 and 5
  4. 2,3,4 and 6

Answer-C

Q14. As per the NSSO 70th Round “Situation Assessment Survey of Agricultural Households”, consider the following statements

  1. Rajasthan has the highest percentage share of agricultural households among its rural households.
  2. Out of the total agricultural households in the country, a little over 60 percent belong to OBCs.
  3. In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities.

Which of the statements given above is/are correct?

  1. 2 and 3 only
  2. 2 only
  3. 1 and 3  only
  4. 1,2 and 3

Answer-C

Q15. Consider the following: 

  1. Areca nut
  2. Barley
  3. Coffee
  4. Finger millet
  5. Groundnut
  6. Sesamum
  7. Turmeric

The Cabinet Committee on Economic Affair, has announced the Minimum Support Price for which of the above?

  1. 1, 2, 3 and 7 only
  2. 2,4,5, and 6 only
  3. 1, 3, 4, 5 and 6 only
  4. 1, 2, 3, 4, 5, 6 and 7

Answer-B

Q16. Consider the following statements 

  1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
  2. The Government does not impose any customs duty on all the imported edible oils a special case.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-A

Q17. If a commodity is provided free to the public by the Government, then 

  1. The opportunity cost is zero.
  2. The opportunity cost is ignored.
  3. The opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4. The opportunity cost is transferred from the consumers of the product to the Government.

Answer-D

Q18. Despite being a high saving economy, capital formation may not result in significant increase in output due to

  1. weak administrative machinery
  2. illiteracy
  3. high population density
  4. High capital-output ratio

Answer-D

Q19. Which of the following is/are the aim/aims of “Digital India” Plan of the Government of India? 

  1. Formation of India’s own Internet companies like China did.
  2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
  3. Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourist centres.

Select the correct answer using the code given below

  1. 1 and 2 only
  2. 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer-B

Q20. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

  1. Industrial output fails to keep pace with agricultural output.
  2. Agricultural output fails to keep pace with industrial output.
  3. Poverty and unemployment increase.
  4. Imports grow faster than exports.

Answer-C

Q21. With reference to the provisions made under the National Food Security Act, 2013 consider the following statements: 

  1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised grains.
  2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
  3. Pregnant women and lactating mothers are entitled to a take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.

Which of the statements given above is/are correct?

  1. 1 and 2
  2. 2 only
  3. 1 and 3
  4. 3 only

Answer-B

Q22. Consider the following statements: 

  1. As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualification laid down by the concerned State Council of Teacher Education.
  2. As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines.
  3. In India, more than 90% of teacher’s education institutions are directly under the State Governments.

Which of the statements given above is/are correct?

  1. 1 and 2
  2. 2 only
  3. 1 and 3
  4. 3 only

Answer-B

Q23. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements 

  1. It is the flagship scheme of the Ministry of Labour and Employment.
  2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
  3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct ?

  1. 1 and 3 only
  2. 2 only
  3. 2 and 3 only
  4. 1,2 and 3

Answer-C

Q24. Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables 

  1. Individuals of a country to accumulate more capital.
  2. Increasing the knowledge, skill levels and capacities of the people of the country.
  3. Accumulation of tangible wealth.
  4. Accumulation of intangible wealth.

Which of the statements given above is/are correct?

  1. 1 and 2
  2. 2 only
  3. 2 and 4
  4. 1,3 and 4

Answer-B

Q25. Consider the following statements 

  1. The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
  2. The Food Safety and Standards Authority of India (FSSAI) is under the charge of Director General of Health Services in the Union Ministry of Health and Family Welfare.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-A

Economy 2017 Questions & Answer

Q1. Consider the following statements:

  1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
  2.  NPCI has launched RuPay, a card payment scheme.
    Which of the statements given above is/are correct?
    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

Answer-C

Q2. Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?
(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace the physical currency in about two decades.
(c) FDI inflows will drastically increase.

(d) Direct transfer of subsidies to poor people will become very effective.

Answer-A

Q3. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?
1. It decides the RBI’s benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only

Answer-A

Q4. Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

  1.  It is a procedure for considering ecological costs of developmental schemes formulated by the Government.
  2. It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.
  3.  It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.
  4. It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Answer-B

Q5. What is the purpose of setting up of Small Finance Banks (SFBs) in India?
1. To supply credit to small business units
2. To supply credit to small and marginal farmers
3. To encourage young entrepreneurs to set up business particularly in rural areas.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer-A

Q6. Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

Answer-C

Q7. What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’?
1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India.
2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to increase its foreign exchange reserves.
3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer-A

Q8. With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. 
Which of the statements .given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 2 and 3 only

Answer-B

Gross tax to GDP
Fiscal Deficit to GDP
Years

Q9. Consider the following statements:
1. Tax revenue as a percent of GDP of India has steadily increased in the last decade.
2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct ?
(a) 1 only?
(b) 2 only
(c) both 1 and 2
(d) neither 1 nor 2

Answer-D

Q10. The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to
(a) Developing solar power production in our country(b) Granting licenses to foreign T.V. channels in our country
(c) Exporting our food products to other countries
(d) Permitting foreign educational institutions to set up their campuses in our country

Answer-A

Q11. Consider the following statements:
1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
3. TFA came into force in January 2016. 
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer-A

Q12. ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and
(a) European Union
(b) Gulf Cooperation Council
(c) Organization for Economic Cooperation and Development
(d) Shanghai Cooperation Organization

Answer-A

Q13. The term ‘Digital Single Market Strategy’ seen in the news refers to
(a) ASEAN
(b) BRICS
(c) EU
(d) G20

Answer-C

Q14. Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
1. Share of agriculture in GDP increased enormously.
2. Share of India’s exports in world trade increased.
3. FDI inflows increased.
4. India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4

Answer-B

Q15. Consider the following in respect of ‘National Career Service’:
1. National Career Service is an initiative of the Department of Personnel and Training, Government of India.
2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 nor 2

Answer-B

Q16. With reference to ‘National Skills Qualification Framework (NSQF)’, which of the statements given below is/are correct?
1. Under NSQF, a learner can acquire the certification for competency only through formal learning.
2. An outcome expected from the implementation of NSQF is the mobility between vocational and general education.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only(c) Both 1 and 2
(d) Neither 1 nor 2

Answer-B

Q17. Recognition of Prior Learning Scheme’ is sometimes mentioned in the news with reference to
(a) Certifying the skills acquired by construction workers through traditional channels.
(b) Enrolling the persons in Universities for distance learning programmes.
(c) Reserving some skilled jobs to rural and urban poor in some public sector undertakings.
(d) Certifying the skills acquired by trainees under the National Skill Development Programme.

Answer-A

Q18. Consider the following statements:
1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes.
2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO).
Which of the statements given above is/are correct?
(a) 1 only(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer-A

Q19. With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements:
1. It reiterates India’s commitment to the Doha Development Agenda and the TRIPS Agreement.
2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2(d) Neither 1 nor 2

Answer-C

Q20. With reference to ‘Quality Council of India (QCI)’, consider the following statements:
1. QCI was set up jointly by the Government of India and the Indian Industry.
2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer-C

Q21. What is the aim of the programme ‘Unnat Bharat Abhiyan’?
(a) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities.
(b) Connecting institutions of higher education with local communities to address development challenges through appropriate technologies.
(c) Strengthening India’s scientific research institutions in order to make India a scientific and technological power.
(d) Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them.

Answer-B

Q22. With reference to ‘Asia Pacific Ministerial Conference on Housing and Urban Development (APMCHUD)’, consider the following statements:
1. The first APMCHUD was held in India in 2006 on the theme ‘Emerging Urban Forms — Policy Responses and Governance Structure’.
2. India hosts all the Annual Ministerial Conferences in partnership with ADB, APEC and ASEAN.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer-D

Q23. With reference to the role of UN-Habitat in the United Nations programme working towards a better urban future, which of the statements is/are correct?
1. UN-Habitat has been mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities to provide adequate shelter for all.
2. Its partners are either governments or local urban authorities only.
3. UN-Habitat contributes to the overall objective of the United Nations system to reduce poverty and to promote access to safe drinking water and basic sanitation.
Select the correct answer using the code given below:
(a) 1, 2 and 3
(b) 1 and 3 only(c) 2 and 3 only
(d) 1 only

Answer-B

Q24. The Global Infrastructure Facility is a/an
(a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank.
(b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) to enable mobilization of private sector and institutional investor capital.(c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilize private investment.
(d) UNCTAD funded initiative that seeks to finance and facilitate infrastructure development in the world.

Answer-B

Q25. With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crore at present.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer-D

Q26. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world?
(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization

Answer-A

Q27. Which of the following are the objectives of ‘National Nutrition Mission’?
1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
2. To reduce the incidence of anemia among young children, adolescent girls and women.
3. To promote the consumption of millets, coarse cereals and unpolished rice.
4. To promote the consumption of poultry eggs.
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1, 2 and 4 only
(d) 3 and 4 only

Answer-C

Q28. What is the purpose of Vidyanjali Yojana’?
1. To enable the famous foreign educational institutions to open their campuses in India.
2. To increase the quality of education provided in government schools by taking help from the private sector and the community.
3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.
Select the correct answer using the code given below :
(a) 2 only
(b) 3 only
(c) 1 and 2 only
(d) 2 and 3 only

Answer-A

Q29. Which of the following statements is/are correct regarding Smart India Hackathon 2017?
1. It is a centrally sponsored scheme for developing every city of our country into Smart Cities in a decade.
2. It is an initiative to identify new digital technology innovations for solving the many problems faced by our country.
3. It is a programme aimed at making all the financial transactions in our country completely digital in a decade.
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 only(c) 3 only
(d) 2 and 3 only

Answer-B

Economy 2016 Questions & Answer

Q1. What is/are the purpose/purposes of the `Marginal Cost of Funds based Lending Rate (MCLR)’ announced by RBI?
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
Select the correct answer using the code given below.

  1.  1 only
  2. 2 only
  3. Both 1 and 2
  4.  Neither 1 nor 2

Answer-C

Q2. The establishment of ‘Payment Banks’ is being allowed in India to promote financial inclusion. Which of the following statements is/are correct in this context?
1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks.
2. Payment Banks can issue both credit cards and debit cards.
3. Payment Banks cannot undertake lending activities.
Select the correct answer using the code given below.

  1. 1 and 2 only
  2.  1 and 3 only
  3. 2 only
  4.  1, 2 and 3

Answer-B

Q3. The term ‘Core Banking Solutions’ is sometimes seen in the news. Which of the following statements best describes/describe this term? 
1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts.
2. It is an effort to increase RBI’s control over commercial banks through computerization.
3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.
Select the correct answer using the code given below.

  1. 1 only
  2.  2 and 3 only
  3. 1 and 3 only
  4.  1, 2 and 3

Answer-A

Q4. With reference to ‘Financial Stability and Development Council’, consider the following statements:
1. it is an organ of NITI Aayog. 
2. It is headed by the Union Finance Minister.
3. It monitors macro prudential supervision of the economy.
Which of the statements given above is/are correct? 

  1. 1 and 2 only
  2. 3 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer-C

Q5. With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?
1. Bitcoins are tracked by the Central Banks of the countries.
2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
3. Online payments can be sent without either side knowing the identity of the other.
Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 2 and 3 only
  3.  3 only
  4. 1, 2 and 3

Answer-B

Q6. Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct? 
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.
2. Only one member of a family can join the scheme. 
3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below.

  1.  1 only
  2. 2 and 3 only 
  3. 1 and 3 only
  4. 1,2 and 3

Answer-C

Q7. The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of

  1. mining operation by multinational companies in resource-rich but backward areas
  2. Curbing of the tax evasion by multinational companies.
  3. Exploitation of genetic resources of a country by multinational companies.
  4.  lack of consideration of environmental costs in the planning and implementation of developmental projects

Answer-B               

Q8. There has been a persistent deficit budget year after year. Which action/actions of the following can be taken by the Government to reduce the deficit?
1. Reducing revenue expenditure
2. Introducing new welfare schemes
3. Rationalizing subsidies
4. Reducing import duty
Select the correct answer using the code given below.

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1,2,3 and 4

Answer-C

Q9. Which of the following is/are included in the capital budget of the Government of India?
1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
2. Loans received from foreign governments
3. Loans and advances granted to the States and Union Territories
select the correct answer using the code given below.

  1. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1,2 and 3

Answer-D

Q10. With reference to the ‘Trans-Pacific Partnership’, consider the following statements: 
1. It is an agreement among all the Pacific Rim countries except China and Russia.
2. It is a strategic alliance for the purpose of maritime security ONLY
Which of the statements given above is/are correct?

  1.  1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-D

Q11. ‘European Stability Mechanism’, sometimes seen in the news, is an

  1. agency created by EU to deal with the impact of millions of refugees arriving from Middle East
  2. Agency of EU that provides financial provision to eurozone countries.
  3.  agency of EU to deal with all the bilateral and multilateral agreements on trade
  4. agency of EU to deal with the conflicts arising among the member countries

Q12. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as
(a)G20

(b) ASEAN

(C) SCO

(d) SAARC

Answer-B

Q13. In the context of which of the following do you sometimes find the terms `amber box, blue box and green box’ in the news?

  1. WTO affairs
  2. SAARC affairs
  3.  UNFCCC affairs
  4.  India-EU negotiations on FTA

Answer-A

Q14. Recently, which one of the following currencies has been proposed to be added to the basket of IMF’s SDR?

  1. Ruble
  2.  Rand
  3.  Indian Rupee
  4. Renminbi

Answer-D

Q15. With reference to `IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/are correct?
1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Select the correct answer using the code given below.

  1.  1 only
  2.  2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q16. Consider the following statements:
1. New Development Bank has been set up by APEC. 
2. The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-B

Q17. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and jewellery sector
3. To reduce India’s dependence on gold imports
select the correct answer using the code given below.

  1. 1 only
  2.  2 and 3 only
  3. 1 and 3 only
  4. 1,2 and 3

Answer-C

Q18. ‘Global Financial Stability Report’ is prepared by the

  1.  European Central Bank
  2. International monetary Fund
  3.  International Bank for Reconstruction and Development
  4. Organization for Economic Cooperation and Development

Answer-B

Q19. With reference to the International Monetary and Financial Committee (IMFC), consider the following statements:
1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work.
2. The World Bank participates as observer in IMFC’s meetings.
Which of the statements given above is/are correct?

  1.  1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q20. Which of the following best describes the term ‘import cover’, sometimes seen in the news?
(a) It is the ratio of value of imports to the Gross Domestic Product of a country
(b) It is the total value of imports of a country in a year
(c) It is the ratio between the value of exports and that of imports between two countries
(d) It is the number of months of imports that could be paid for by  a country’s international reserves

Answer-D

Q21. With reference to ‘stand up India scheme’, which of the following statement is/are correct?
1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs.
2. It provides for refinance through SIDBI.
Select the correct answer using the code given below.

  1.  1 only
  2.  2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q22. Pradhan Mantri MUDRA Yojana is aimed at 

  1. Bringing the small entrepreneurs into formal financial system
  2.  providing loans to poor farmers for cultivating particular crops
  3.  providing pensions to old and destitute persons
  4.  funding the voluntary organizations involved in the promotion of skill development and employment generation

Answer-A

Q23. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking? 

  1. Organization for Economic Cooperation and Development (OECD)
  2.  World Economic Forum
  3. World Bank
  4. World Trade Organization(WTO)

Answer-C

Q24. Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in

  1. Andhra Pradesh
  2.  Gujarat
  3.  Maharashtra
  4. Uttar Pradesh

Answer-A

Q25. Which one of the following is a purpose of `UDAY’, a scheme of the Government?

  1.  Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
  2.  Providing electricity to every household in the country by 2018
  3.  Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
  4. Providing for financial turnaround and revival of power distribution companies.

Answer-D

   Q26. What is/are the purpose/purposes of `District Mineral Foundations’ in India?
     1. Promoting mineral exploration activities in mineral-rich districts

     2. Protecting the interests of the persons affected by mining operations.

     3. Authorizing State Governments to issue licences for mineral exploration

    Select the correct answer using the code given below.

  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1,2 and 3

Answer-B

     Q27. `SWAYAM’, an initiative of the Government of India, aims at 
     (a) promoting the Self Help Groups in rural areas
     (b) providing financial and technical assistance to young start-up entrepreneurs
     (c) promoting the education and health of adolescent girls

     (d) Providing affordable and quality education to the citizens for free

Answer-D

Q28. Regarding DigiLocker, sometimes seen in the news, which of the following        statements is/are correct?
1 It is a digital locker system offered by the Government under Digital India Programme.
2. It allows you to access your e-documents irrespective of your physical location.
Select the correct answer using the code given below.

  1.  1 only
  2.  2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q29. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?
1. Undernourishment
2. Child stunting
3. Child mortality
Select the correct answer using the code given below.

  1.  1 only
  2.  2 and 3 only
  3. 1,2 and 3
  4. 1 and 3 only

Answer-C

Economy 2015 Questions & Answer

Q1.In the ‘Index of Eight Core Industries’ Which one of the following is given the highest weight?

  1. Coal production
  2. Electricity generation
  3. Fertilizer production
  4. Steel production

Answer-B

Q2. Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers?

  1. The Reserve Bank of India
  2. The Department of Economic Affairs
  3. The Labour Bureau
  4. The Department of Personnel and Training

Answer-C

Q3.Which one of the following issues the ‘Global Economic Prospects’ report periodically?

  1. The Asian Development Bank
  2. The  European Bank for Reconstruction and Development
  3. The US Federal Reserve bank
  4. The World Bank

Answer-D

Q4. The Terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the

  1. Food and Agriculture Organization
  2. United Nations Framework Conference on Climate change
  3. World Trade Organization
  4. United Nations Environment programme

Answer-C

    Q5. With reference to Indian economy, consider the following

  1. Bank rate
  2. Open market operation
  3. Public debt
  4. Public revenue
    which of the above is/are component/components of monetary Policy?
  5. 1 only
  6. 2,3 and 4
  7. 1 and 2
  8. 1,3 and 4

Answer-C

Q6. When the Reserve Bank of India reduces the statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

  1. India’s GDP growth rate increases drastically
  2. Foreign Institutional Investors may bring more capital into our country.
  3. Scheduled Commercial banks may cut their lending rates
  4. It may Drastically reduce the liquidity to the banking systems

Answer-C

Q7. ‘Basel 3rd Accord’ or simply ‘Basel 3rd’ often seen in the news, seeks to

  1. Develop national strategies for the conservation and sustainable use of biological diversity
  2. Improve banking sectors’ ability to deal with financial and economic stress and improve  risk management.
  3. Reduce the greenhouse gas emissions but places a heavier burden on developed countries.
  4. Transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

Answer-B

Q8.Convertibility of rupee implies

  1. Being able to convert rupee notes into gold
  2. Allowing the value of rupee to be fixed by market forces
  3. Freely permitting the conversion of rupee to other currencies and vice versa
  4. Developing an international market for currencies in India.

Answer-C

Q9.There has been a persistent deficit budget year after year. Which of the following actions can be taken by the government to reduce the deficit?

  1. Reducing revenue expenditure
  2. Introducing  new welfare schemes
  3. Rationalizing subsidies
  4. Expanding industries

Answer-A

        Q10.With reference to inflation in India, Which of the following statements is correct?

  1. Controlling the inflation in India is the responsibility of the government of India only
  2. The reserve bank of  India has no role in controlling the inflation
  3. Decreased money circulation helps in controlling the inflation
  4. Increased money circulation helps in controlling the inflation

Answer-C

          Q11.The problem of international liquidity is related to the non-availability of

  1. Goods and services
  2. Gold and silver
  3. Dollars and other hard currencies
  4. Exportable surplus

Answer-C

             Q12.With reference to the fourteen Finance Commissions which of the following statements is/are correct?

  1. It has increased the share of states in the central divisible pool from 32 percent to 42 percent
  2. It has made recommendations concerning sector-specific grants.

Select the correct answer using the code given below.

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

              Q13.With reference to Indian economy, consider the following statements:

  1. The rate of growth of real gross Domestic Product has steadily increased in the last decade.
  2. The Gross Domestic Product at market prices has steadily increased in the last decade.

     Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-B

Q14. A decrease in tax to GDP ratio of a country indicates which of the following?

  1. Slowing economic growth rate
  2. Less equitable distribution of national income

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q15. ‘pradhan Mantri jan-Dhan Yojana’ has been launched for

  1. Providing housing loan to poor people at cheaper interest rates
  2. Promoting women’s Self-Help Groups in backward areas
  3. Promoting financial inclusion in the country
  4. Providing financial help to the marginalized communities

Answer-C

Q16. Consider the following statements:

  1. The Accelerated Irrigation benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
  2. The command Area Development Programme was launched in 1974-75 for the development of water use efficiency.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-B

Q17.In India, markets in agricultural products are regulated under the

  1. Essential Commodities Act, 1995
  2. Agricultural produce market committee Act enacted by states
  3. Agricultural produce(Grading and Marking) Act,1937
  4. Food products order, 1956 and Meat and Food Products order, 1973

Answer-B

Q18. The Government of India has established NITI Aayog to replace the

  1. Human Rights Commission
  2. Finance Commision
  3. Law Commission
  4. Planning Commission

Answer-D

Economy 2014 Questions & Answer

Q1. When a fall in price of a commodity reduces total expenditure and a rise—in price-increases it, price, elasticity of demand will be:

  1. 1
  2. <1
  3. >1
  4. Infinity

Answer B.

Q2. Which of the following factors affects individual’s demand for a commodity?

  1. Price of the commodity
  2. Income of the consumer
  3. Prices of related goods

Select the answer using the code given below:

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1, 2 and 3
  4. 1 only

Answer-C

Q3.The rate at which the consumer is willing to substitute one good for another without changing the level of satisfaction is known as:

  1. Marginal rate of substitution
  2. Marginal rate of technical substitution
  3. Diminishing marginal utility
  4. Equi-marginal utility

Answer-A

Q4.Which of the statements given below is/are correct?

  1. For the marketing year 2014-2015, the minimum support price (MSP) for wheat in India has been fixed at Rs. 1,400/quintal. (right)
  2. MSP is the rate at which the government sells the grains through the fair price shops (wrong)
  3. Select the correct answer using the code given below:
  4. 1 only
  5. 2 only
  6. Both 1 and 2
  7. Neither 1 nor 2

Answer-A

Q5.As per the latest trade agreement in Bali Ministerial Conference of WTO, India and other developing and under developed countries can launch food security programs:

  1. Forever without any penalty under WTO rules
  2. Till an alternative mechanism is developed
  3. For four calendar years
  4. Only if subsidy component under such programmes is less than 10 per cent

Answer-C

Q6.Which of the statements given below is/are correct?

  1. In India, the provisions of General Anti-Avoidance (GAAR) will be implemented with the effect from 1 April 2015
  2. The provisions of GAAR were aimed at checking tax avoidance by overseas investors

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer-C

Q7. Data presented in Interim Budget for 2014-2015 reveal that for the financial year 2013-2014, the revised estimates do not show a decline in:

  1. Revenue deficit
  2. Effective revenue deficit
  3. Fiscal deficit
  4. Primary deficit

Answer-B

Q8.The Economic Advisory Council to the Prime Minister (PMEAC) in India has recommended phased dilution of Government stake in Public Sector Banks from:

  1. 74% to 56%
  2. 58% to 51%
  3. 58% to 49%
  4. 51% to 49%

Answer-B

Q9.Recently a leading public sector bank of India allowed withdrawal of upto Rs.1000 from any shop/trader with a point-of-sale (PoS) terminal. Identify the bank from below:

  1. Bank of Maharashtra
  2. Punjab National Bank
  3. State Bank of India
  4. Bank of Baroda

Answer-C

Q10. Which of the following statements about the detailed corporate governance norms for listed companies issued in April 2014 by SEBI is/are correct?

  1. It provides for stricter disclosures and protection of investor rights, including equitable treatment for minority and foreign shareholders
  2. Under the new norms listed companies are required to provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at general meetings.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
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