Indian Economy MCQ (Pages :37)

  • 1 Which of the following Price Indices of India is considered for measuring ‘Headline Inflation’?

    (A) GDP Deflator
    (B) CPI-AL/RL
    (C) CPI-IW
    (D) WPI
  • 2 ___the benefits of development from different sectors should not by pass women and special programmes on women should complement the general development programmes. The latter, in turn, should reflect greater gender sensitivity” Which among the following plan documents emphasized the need of “Gender Budgeting” by incorporating the above clause / phrase?

    (A) 7th Five Year Plan Documen
    (B) 8th Five Year Plan Documen
    (C) 9th Five Year Plan Documen
    (D) 10th Five Year Plan Documen
  • 3 ’SHG Bank Linkage Programme’ is a program which encourages India’s banks to lend to self-help groups (SHGs) composed mainly of poor women, this has evolved into an important Indian tool for microfinance. This programe was initiated by?

    (A) Reserve Bank of India (RBI
    (B) Agricultural Refinance and Development Corporation (ARDC)
    (C) National Bank for Agriculture and Rural Development (NABARD)
    (D) SBI
  • 4 “A statement of estimated receipts and expenditures called annual Financial Statement (Budget) has to be placed before parliament for each financial year.” The above provision has been enshrined in which among the following articles of Constitution of India?

    (A) Article 110
    (B) Article 111
    (C) Article 112
    (D) Article 113
  • Article 112 of the Indian Constitution says that every year “the President of India shall cause to be laid before both the houses of the parliament” the “Annual Financial Statement”. This is popularly known as Budget. “cause to be laid” here means that the person through whom President acts, is Finance Minister of the country, who is known as the custodian of the nation’s Finances. The Budget gives the complete picture of the estimated receipts and expenditures of the Government of India for that year. This picture is actually based upon the budget figures of the previous years.
  • 5 “Bad money (if not limited in quantity) drives good money out of circulation.”The statement is from which among the following laws?

    (A) Keynes’ law
    (B) Wagner’s law
    (C) Gresham’s law
    (D) Grimm’s law
  • 6 “Gadgil Formula” is related to which of the following?

    (A) Share of tax revenue between states and central government
    (B) Transfer of assistance to the states by center under various schemes
    (C) Assistance to be provided to states by the Central government for NREGA scheme
    (D) None of the above
  • 7 “Salboni ” in west Bengal is best known for which of the following?

    (A) Indian Security Press
    (B) Coin Mint
    (C) Modernized Currency Notes Press
    (D) None of the above
  • 8 ” Income generated from Tourism” can be placed in which among the following?

    (A) Invisible Import
    (B) Invisible Export
    (C) Visible Import
    (D) Visible Export
  • 9 ”India’s response to the challenge of providing pre-school education on one hand and breaking the vicious cycle of malnutrition, morbidity, reduced learning capacity and mortality, on the other” Which among the following best suits to the above objective?

    (A) Mid Day Meal Scheme
    (B) Right To Education Act
    (C) Integrated Child Development Services
    (D) National Plan of Action for Children
  • 10 A Bank included in the second schedule of RBI is called as _________?

    (A) Scheduled Bank
    (B) Commercial Bank
    (C) National Bank
    (D) Regional Rural Bank
  • 11 A Bank opened in Special Economic Zones in India comes under which among the following?

    (A) International Banking
    (B) Domestic Banking
    (C) Offshore Banking
    (D) National banking
  • 12 A charge levied by a Life Insurance Company for the life insurance protection upon death and to cover certain other expenses is termed as _____?

    (A) Premium
    (B) Mortality Charges
    (C) Insurance Expenses
    (D) Death Expenses
  • 13 A Committee on Tax on Agricultural Wealth and Income recommended a progressive Agricultural Holding Tax (AHT) in 1972.What is the name of this committee?

    (A) Bhootlingam Committee
    (B) K N Raj Committee
    (C) Wanchoo Committee
    (D) Khusrau Committee
  • 14 A company wishes to establish a Multi Product Special Economic Zone in Manipur. What is the minimum area requirement for this company to fulfill for getting approval for that SEZ?

    (A) 5000 Hectare
    (B) 1000 Hectare
    (C) 500 Hectare
    (D) 200 Hectare
  • 15 A debenture holder of a company is also its ______?

    (A) shareholder
    (B) Director
    (C) Creditor
    (D) None of the above
  • 16 A farmer has taken a loan for a paddy crop in the beginning of the Rabi Season and has not made a repayment. In which of the following situations, if Installment or interest is not paid for this loan, it would become a NPA (Non Performing Asset)?

    (A) 90 Days from the due date
    (B) 90 Days from the end of the Rabi Season
    (C) 1 crop season from the due date
    (D) 2 crop seasons from the due date
  • 17 A good that is non-rivalries and non-excludable, and whose benefits can not be prices and therefore to which the principle of exclusion does not apply comes under the following heading?

    (A) Pure Private Goods
    (B) Pure Public Goods
    (C) Pure Free Goods
    (D) Pure Market Goods
  • 18 A new private bank is established under which of the following?

    (A) Banking regulation Act 1949
    (B) Companies Act 1956
    (C) RBI Act 1934
    (D) All the above
  • 19 A non-banking finance company (NBFC) in India has to make some investments in overseas ventures. The NBFC is required to seek regulatory clearance from which of the following authorities?

    (A) RBI
    (B) SEBI
    (C) IDBI
    (D) Ministry of Finance
  • 20 A number of factors are responsible for poverty in India. Which among the following is not the economic factor contributing to poverty?

    (A) Inequalities of Income
    (B) Mass illiteracy
    (C) Low productivity in Agriculture
    (D) Fast Rise in Population
  • 21 A panel was set up by RBI in 2006 under SC Gupta. The panel gave its recommendation on _______?

    (A) Regulation of Finance markets
    (B) Regulation of Capital markets
    (C) Regulation of Money lenders
    (D) Regulation of Banks
  • 22 A person lost his job due to economic recession. He agreed to do some job on a low wage. This is known to be as which among the following?

    (A) Seasonal Unemployment
    (B) Cyclical Unemployment
    (C) Disguised Unemployment
    (D) Voluntary Unemployment
  • 23 A requirement imposed on banks to have a certain amount of capital in relation to their assets is called as _______?

    (A) Statutory Liquidity Ratio
    (B) Capital gearing Ratio
    (C) Capital Adequacy Ratio
    (D) Repo rate
  • 24 A rise in price of one commodity will induce a fall in demand of another commodity, then the commodities are___?

    (A) Complimentary
    (B) Supplementary
    (C) Competing
    (D) Auxiliary
  • 25 A strategy that consists of concurrent buying and selling of equal or comparable securities from at least two markets in order to profit from the variation in their prices is called:?

    (A) Arbitrage
    (B) Intermediation
    (C) Block trade
    (D) None of the above
  • 26 A system in which a society consisting of a number of farmers owns land which is divided into smaller holdings and then leased to individual members of the society comes under which of the following?

    (A) Co-operative Tenant Farming
    (B) Co-operative Collective Farming
    (C) Cooperative Joint Farming
    (D) All the above
  • 27 A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?

    (A) Net Capital Flow
    (B) Balance of Payment
    (C) Balance of Trade
    (D) Absolute Flow
  • The Balance of International payments or Balance of Payments refers to the systematic and summary record of a country’s economic and financial transactions with the rest of the world, over a period of time. The three main components of BoP are Current Account, Capital Account and Official Reserve Transactions
  • 28 A village in the plain area of India comes under the Pradhan Mantri Gram Sadak Yojna , if its population is more than ___?

    (A) 500
    (B) 1000
    (C) 1500
    (D) 2000
  • 29 A zero Gini index means the following?

    (A) perfect equality in income
    (B) perfect inequality in income
    (C) zero GDP growth of the country
    (D) zero inflation
  • Gini coefficient represents the income distribution of a country’s residents. It was developed by the Italian statistician and sociologist Corrado Gini. It measures the inequality. The coefficient ranges from zero to one, with zero representing perfect equality and one showing perfect inequality. The higher is the Gini Coefficient, more is gap between rich and poor in a country. If the value of Gini Coefficient is 1, it implies that all wealth of that country belongs to one person and everybody else is poor. The 0 value of Gini Coefficient implies that all people have exactly equal wealth. Practically, the Gini Coefficient value falls between 0 and 1 for all the countries.
  • 30 Aam Admi Bima Yojna (AABY) was launched in which among the following years?

    (A) 2005
    (B) 2006
    (C) 2007
    (D) 2008
  • Aam Admi Bima Yojna (AABY) was launched on October 2, 2007, insurance as accidental death and partial/permanent disability to the head of the family of rural households in the country. Provisions: (a) The head of the family or one earning member in the family will be insured; (b) The central government will bear 50 percent of the sum and the other 50 percent will financed by the state government.