Q1) Development expenditure of the Central government does
not include
(a) defence expenditure
(b) expenditure on economic services
(c) expenditure on social and community services
(d) grant to states
ANS(A)
Q2) Gilt-edged market means
A.bullion market
B.market of government securities
C.market of guns
D.market of pure metals
ANS(B)
Q3) Devaluation of a currency means
A.reduction in the value of a currency vis-a-vis major
internationally traded currencies
B.permitting the currency to seek its worth in the
international market
C.fixing the value of the currency in conjunction with the
movement in the value of a basket of pre-determined currencies
D.fixing the value of currency in multilateral consultation
with the IMF, the World Bank and major trading partners
ANS(A)
Q4) In the second nationalization of commercial banks, ___
banks were nationalized.
A. 4
B. 5
C. 6
D. 8
ANS (C)
Q5)Depreciation means
A.closure of a plant due to lock out
B.closure of a plant due to labour trouble
C.loss of equipment over time due to wear and tear
D.destruction of a plant in a fire accident
ANS (C
Q6) Deficit financing leads to inflation in general, but it
can be checked if
A.government expenditure leads to increase in the aggregate
supply in ratio of aggregate demand
B.only aggregate demand is increased
C.all the expenditure is denoted national debt payment only
D.All of the above
ANS (D)
Q7)India changed over to the decimal system of coinage in
A.April 1995
B.April 1957
C.April 1958
D.April 1959
ANS (B)
Q8)Gross domestic capital formation is defined as
A.flow of expenditure devoted to increased or maintaining of
the capital stock
B.expenditure incurred on physical assets only
C.production exceeding demand
D.net addition to stock after depreciation
ANS (D)
Q9) On July 12, 1982, the ARDC was merged into
A.RBI
B.NABARD
C.EXIM Bank
D.None of the above
ANS (B)
Q10)Which of the following is the most appropriate cause of
exports surplus?
A.Country's exports promotion value
B.Country's stringent import policy
C.Developments in national and international markets
D.None of the above
ANS (C)
Q11)If the cash reserve ratio is lowered by the RBI, its
impact on credit creation will be to
A.increase it
B.decrease it
C.no impact
D.None of the above
ANS (A)
Q12)Which of the following items would not appear in a
company's balance sheet?
A.Value of stocks of raw materials held
B.Total issued capital
C.Revenue from sales of the company's products
D.Cash held at the bank
ANS (C)
Q13)The currency convertibility concept in its original form
originated in
A.Wells Agreement
B.Bretton Woods Agreement
C.Taylors Agreement
D.None of the above
ANS (B)
Q14)The central co-operative banks are in direct touch with
A.farmers
B.state co-operative banks
C.land development banks
D.central government
ANS (B)
Q15)The first wholly Indian Bank was set up in
A.1794
B.1894
C.1896
D.1902
ANS (B)
Q16)States earn maximum revenue through
A.land revenue
B.custom revenue
C.commercial taxes
D.excise duties on intoxicants
ANS (B)
Q17) Our financial system has provided for the transfer of
resources from the centre to the states; the important means of resource
transfer are
A.tax sharing
B.grant-in-aids
C.loans
D.All the above
ANS (D)
Q18) Debenture holders of a company are its
A.shareholders
B.creditors
C.debtors
D.directors
ANS (B)
Q19) Excise duty is a tax levied on the
A.import of goods
B.export of goods
C.production of goods
D.sale of goods
ANS (C)
Q20)In pursuance with the recommendations of Narsimhan
Committee, the RBI has framed new guidelines
A.to govern entry of new private sector banks to make the
banking sector more competitive
B.to reduce the freedom given to banks to rationalize their
existing branch network
C.to setup more foreign exchange banks
D.to lend more easily for industrial development
ANS (A)
Q21)Non Tax revenues can be increased by improving the
working of the
A.State Road Transport Corporations
B.electricity boards
C.commercial irrigation projects
D.All of the above
ANS (C)
Q22)Which of the following is not viewed as a national debt?
A.Provident Fund
B.Life Insurance Policies
C.National Saving Certificate
D.Long-term Government Bonds
ANS (C)
Q23)The condition of indirect taxes in the country's revenue
is approximately
A.70 percent
B.75 percent
C.80 percent
D.86 percent
ANS (D)
Q24)Deficit financing means that the government borrows
money from the
A.RBI
B.local bodies
C.big businessmen
D.IMF
ANS (A)
Q25)Revenue of the state governments are raised from the
following sources, except
A.entertainment tax
B.expenditure tax
C.agricultural income tax
D.land revenue
ANS (C)
