Economy of India

The value of all final goods and services produced by the normal residents of a country and their property, whether operating within the domestic territory of the country or outside in a year is termed as

  1. Net National Income
  2. Net Domestic Product
  3. Gross National Income
  4. Gross Domestic Product

Which of the following are included in the category of Direct Tax in India?

  1. Corporation Tax
  2. Tax on Income
  3. Wealth Tax
  4. Customs Duty
  5. Excise Duty

Select the correct answer using the code given below

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

'Inclusive growth' is a phrase used in India's

  1. 9th plan
  2. 10th plan
  3. 11th plan
  4. 12th plan

Select one:

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

Corporate tax in India is levied on income of a company. Which one of the following does not include Corporation tax?

  1. Sale proceed of assets
  2. Interest on securities
  3. Profit from business
  4. Capital gain

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

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 macroprudential 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

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

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

Which of the following indices is not considered while calculating Human Development Index (HDI)?

  1. Life expectancy
  2. Education
  3. Housing
  4. Income

The Gini Coefficient is a measure of

  1. Rodent population
  2. Migration rate of Guineas nationals
  3. Income inequality
  4. Ratio of coinage to currency note

Yellow Revolution in India refers to growth of

  1. Militancy in the north-east
  2. Oilseeds production
  3. Advertising industry
  4. Jaundice outbreak

Government of India recently announced constitution of NITI Aayog as a policy think-tank replacing Planning Commission. NITI stands for

  1. National Institution for Transforming India
  2. It is not an acronym, but only a Sanskrit word for Policy
  3. National Initiative for Technological India
  4. New Initiative for Transforming India

A rise in general level of prices may be caused by

  • 1. an increase in the money supply
  • 2. a decrease in the aggregate level of output
  • 3. an increase in the effective demand

Select the correct answer using the codes given below.

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

The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?

  • 1. Deprivation of education, health, assets and services at household level
  • 2. Purchasing power parity at national level
  • 3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

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

The national income of a country for a given period is equal to the

  1. money value of final goods and services produced
  2. sum of total consumption and investment expenditure
  3. sum of personal income of all individuals
  4. total value of goods and services produced by the nationals

The balance of payments of a country is a systematic record of

  1. goods exported from a country during a year
  2. economic transaction between the government of one country to another
  3. capital movement from one country to another
  4. all import and export transactions of a country during a given period of time, normally a year

Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?

  1. FII helps bring better management skills and technology, while FDI only brings in capital
  2. FII helps in increasing capital availability in general, while FDI only targets specific sectors
  3. FII is considered to be more stable than FDI
  4. FDI flows only into the secondary market, while FII targets primary market

Which of the following would include Foreign Direct Investment in India?

  • 1. Subsidiaries of companies in India
  • 2. Majority foreign equity holding in Indian companies
  • 3. Companies exclusively financed by foreign companies
  • 4. Portfolio investment

Select the correct answer using the codes given below:

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

Which one of the following groups of items is included in India's foreign-exchange reserves?

  1. Foreign-currency assets, loans from the World Bank and SDRs
  2. Foreign-currency assets, gold holding of the RBI and loans from the World Bank
  3. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
  4. Foreign-currency assets, gold holdings of the RBI and SDRs

Which of the following organizations brings out the publication known as "World Economic Outlook"?

  1. The United Nations Development Programme
  2. The World Bank
  3. The World Economic Forum
  4. The International Monetary Fund

The basic aim of Lead Bank Scheme is that

  1. there should be stiff competition among the various nationalized banks
  2. big banks should try to open offices in each district
  3. individual banks should adopt particular districts for intensive development
  4. all the banks should make intensive efforts to mobilize deposits

Consider the following liquid assets:

  • 1. Demand deposits with the banks
  • 2. Time deposits with the bank
  • 3. Savings deposits with the bank
  • 4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

  1. 4-3-2-1
  2. 1-4-3-2
  3. 4-1-3-2
  4. 2-3-1-4

If the interest rate is decreased in an economy, it will

  1. increase the tax collection of the Government
  2. decrease the consumption expenditure in the economy
  3. increase the total savings in the economy
  4. increase the investment expenditure in the economy

Why is the offering of "teaser loans" by commercial banks a cause of economic concern?

  • 1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
  • 2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.

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

Priority Sector Lending by banks in India constitutes the lending to

  1. Agriculture
  2. Micro and small enterprises
  3. Weaker section
  4. All of the above

The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?

  • 1. Other banks retain their deposits with the RBI.
  • 2. The RBI lends funds to the commercial banks in times of need.
  • 3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below:

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

Supply of money remaining the same when there is an increase in demand for money, there will be

  1. a fall in the level of prices
  2. an increase in the rate of interest
  3. a decrease in the rate of interest
  4. an increase in the level of income and employment

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?

  • 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
  • 2. The Government no longer intends to retain the management control of the CPSEs.

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

What does venture capital mean?

  1. Funds provided to industries at times of incurring losses
  2. A short-term capital provided to industries
  3. A long-term start-up capital provided to new entrepreneurs
  4. Funds provided for replacement and renovation of industries

With reference to Indian economy, consider the following:

  1. Bank rate 
  2. Open market operations 
  3. Public debt 
  4. Public revenue

Which of the above is/are component / components of Monetary Policy?

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

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

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

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

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

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

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

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