Q1)Subsidies mean
A. payment by
government for purchase of goods and services
B. payment made
by business enterprises to factors of production
C. payment made
by companies to shareholders
D. payment made
by the government to business enterprises,without buying any goods and services.
Q2)The average rate of domestic savings (gross) for the
Indian economy is currently estimated to be in the range of
A.15 to 20 percent
B. 20 to 25
percent
C. 25 to 30
percent
D. 30 to 35
percent
Answer:B
Q3)National expenditure includes
A. consumption
expenditure
B. investment
expenditure
C. government
expenditure
D. All of the
above
Answer: D
Q4)Resurgent India Bonds were issued in US dollar, Pound
Sterling and
A. Japanese Yen
B. Deutsche Mark
C. Euro
D. French Franc
Answer: B
Q5)The apex body for formulating plans and coordinating
research work in agriculture and allied fields is
A. State
Trading Corporation
B. Regional
Rural Banks
C. National
Bank for Agriculture and Rural Development (NABARD)
D. Indian
Council of Agricultural Research
Answer: D
Q6)Which of the following is not an undertaking under the
administrative control of Ministry of Railways?
A. Container
Corporation of India Limited
B. Konkan
Railway Corporation Limited
C. Indian
Railways Construction Company Limited
D. Diesel
Locomotive Works, Varanasi
Answer: C
Q7)If the RBI adopts an expansionist open market operations
policy, this means that it will
A. buy
securities from non-government holders
B. sell
securities in the open market
C. offer
commercial banks more credit in the open market
D. openly
announce to the market that it intends to expand credit
Answer: C
Q8)Redistribution polices geared to reduce economic
inequalities include
A. progressive
tax policies
B. land reforms
C. rural
development policies
D. All the
above
Answer: D
Q9)Short-term finance is usually for a period ranging up to
A. 5 months
B. 10 months
C. 12 months
D. 15 months
Answer: C
Q10)In India, which one among the following formulates the
fiscal policy?
A. Planning
Commission
B. Ministry of
Finance
C. Finance
Commission
D. The Reserve
Bank of India
Answer: B
Q11)The budget deficit means
A. the excess of total expenditure, including
loans, net of lending over revenue receipts
B. difference
between revenue receipts and revenue expenditure
C. difference
between all receipts and all the expenditure
D. fiscal
deficit less interest payments
Answer: C
Q12)In utensils worth Rs 1000 are produced with copper worth
Rs 500, wages paid are Rs 100, other material purchased is worth Rs 100 and
depreciation of machinery is zero, then what is the value added in process?
A. Rs 1000
B. Rs 500
C. Rs 400
D. Rs 300
Answer: D
Q13)Paper currency first started in India in
A. 1862
B. 1542
C. 1601
D. 1880
Answer: B
Q14)The ARDC is now a branch of the
A. RBI
B.
NABARD
C. IDBI
D.
SDBI
Answer: B
Q15)Devaluation of currency leads to
A. fall in
domestic prices
B. increase in
domestic prices
C. no impact on
domestic prices
D. erratic
fluctuations in domestic prices
Answer: B
Q16)Since 1983, the RBI's responsibility with respect to
regional rural banks was transferred to
A. ARDC
B. SBI
C. NABARD
D.
PACs
Answer: C
Q17)Deficit financing implies
A. printing new
currency notes
B. replacing
new currency with worn out currency
C. public
expenditure in excess of public revenue
D. public
revenue in excess of public expenditure
Answer: C
Q18)In which of the following sequences the change in
quantity of money leads to change in price level in the Keynesian models?
A. Change in
quantity of money - change in investment - change in employment and output -
change in rate of interest - change in price level
B. Change in
quantity of money - change in employment and output - change in investment -
change in the rate of interest - change in price level
C. Change in
quantity of money - change in investment - change in rate of interest - change
in employment and output - change in price level
D. Change in
quantity of money - change in rate of interest - change in investment - change
in employment and output - change in price level
Answer: D
Q19)Foreign Direct Investment ceilings in the telecom sector
have been raised from 49 percent to
A. 74 percent
B. 51 percent
C. 90 percent
D. 100 percent
Answer: A
Q20)Which of the following is not a part of machinery that
settles industrial disputes?
A. Wage Court
B. Works
Committee
C. Conciliation
officers
D. Board of
Conciliation
Answer: A
