different topics related to Indian Economy

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different topics related to Indian Economy

1. How many banks were nationalized in 1969?
[A] 16
[B] 14
[C] 15
[D] 20

Answer: Option B

Explanation:In first phase 14 banks were nationalised in 1969 (thru wich govt of India controlled 85% of bank deposits of the country). Followed by a second nationalisation of 6 banks in 1980 (91% of country's bank deposits).

2. In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?
[A]  Telecommunication
[B]  Service Sector
[C]  Food Processing
[D]  Pharmaceutical

Answer: option A

3. The author of the chapter on “Objectives of Planned Development” for the Third Five Year Plan was:
[A] Jawaharlal Nehru
[B] Morarji Desai
[C] C.D.Deshmukh
[D] Lal Bahadur Shastri

Answer: Option [B]

4. Devaluation of a currency means:
[A]  Reduction in the internal value of the domestic currency
[B] Reduction in the external value of the domestic currency
[C]  Increment in the internal value of the domestic currency
[D] Reduction in the printing of new currency by the RBI

Answer: option B

5. In India, the first bank of limited liability manages by Indians and founded in 1881 was
[A] Hindustan Commercial Bank
[B] Oudh Commercial Bank
[C] Punjab National Bank
[D] Punjab and Sind Bank

Answer: Option B

Explanation:The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.

6. Deficit financing means:
[A]  Selling of gold to foreigners
[B]  Reduction in the defence expenditure
[C]  Arrangement of money through printing new currency & borrowing from external and internal sources.
[D]  Reduction in the supply of currency in the market

Answer: option C

7. If the cash reserve ratio (CRR) is lowered by the RBI, how will it impact the lending capacity of the commercial banks?
[A]  Increase
[B]  Decrease
[C]  Initially increase then decrease
[D]  No impact

Answer: option A

8. For internal financing of Five Year Plans, the government depends on:
[A] Taxation only
[B] Public borrowing and deficit financing
[C] Taxation and public borrowing
[D] Taxation, public borrowing and deficit financing

Answer: Option [A]

9. When was the SEBI established?
[A]  1980
[B]  1985
[C]  1968
[D]  1988

Answer: option D

10. Consider the following statements and identify the right ones.
i. The ISOPOM was introduced in 2004.
ii. Under this scheme, crop diversification is possible as states are given flexibility in implementation.

[A] i only
[B] ii only
[C] Both
[D] None

Answer:  option C

11. Who is the father of green revolution in India?
[A]  Norman Borlaug
[B]  M.S. Swaminathan
[C]  Salim Ali
[D]  Sam Pitroda

Answer: option B

12. In India, inflation measured by the
[A] Wholesale Price Index number
[B] Consumers Price Index for urban non-manual workers
[C] Consumers Price Index for agricultural workers
[D] National Income Deflation

Answer: Option A

Explanation:

Two major measures for inflation, which are widely used, are Wholesale Price Index (WPI) and Consumer Price Index (CPI). WPI measures the increase in the prices of a fixed basket of goods prevailing in the wholesale market while CPI measures the increase in the prices of essential commodities purchased by an average consumer prevailing in the retail market. Measured weekly, WPI is the primary inflation measure in India.

13. Which agency is responsible for marketing of agricultural products in India?
[A] TRIFED
[B] ISOPOM
[C] NAFED
[D] APMC

Answer: option C

14. Consider the following statements and identify the right ones.
i. The Ministry of Agriculture implements the National Bamboo Mission
ii. The mission adopts regionally differentiated strategy for the holistic growth of bamboo sector.
[A] i only
[B] ii only
[C] Both
[D] None

Answer: option C

15. The Five Year Plans of India intend to develop the country industrially through:
[A] The private sector
[B] The public sector
[C] Increasing collaboration with non-resident Indians
[D] The public, private, joint and Cooperative sectors

Answer: Option [D]

16. 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: Option B

17. In which sector, the Public Sector is most dominant in India ?
[A] Transport
[B] Commercial banking
[C] Steel production
[D] Organized term-lending financial institutions

Answer: Option [B]

18. Subsidi 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

Answer: Option D

19. India had a plan holiday:
[A] After the China-India War of 1962
[B] After the India-Pakistan War in 1965
[C] After the drought of 1966
[D] After the liberation of Bangladesh in 1971

Answer: Option [C]

20. National expenditure includes
[A] consumption expenditure
[B] investment expenditure
[C] government expenditure
[D] All of the above

Answer: Option D

21. In India, the concepts of “minimum needs” and “direction anti-poverty programmes ” were the innovations of:
[A] Fourth Five-year Plan
[B] Fifth Five-Year Plan
[C] Sixth Five-Year Plan
[D] Eighth Five-Year Plan

Answer: Option [B]

22. 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: Option D

Explanation:Nabard is apex institution for rural credit but for formulating plans and coordinating research work in agriculture ICAR is the apex institution.

23. The leading steel plants at Durgapur, Bhilai and Rourkela of India were established during the period of:
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan

Answer: Option [B]

24. 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: Option C

25. Which one of the following is a driving force influencing the industrial growth of an economy ?
[A] Economic Factors only
[B] Investment only
[C] Innovation/Market Base only
[D] All of the above

Answer: Option [D]

26. 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: Option C

Explanation:Basically we have two plans short terms and long terms and generally short term cover less than two years and above two years is long term but in this question 15 months has been given in the option that's why it may be answer under this question if 15 months not giving in option definitely answer will be 12 months.

27. The Nehru-Mahalanobis strategy of development guided the planning practice in India from the
[A] First Five-Year Plan to the Sixth Five-Year Plan
[B] First Five-Year Plan to the Eighth Five-Year Plan
[C] Second Five-Year Plan to the Seventh Five-Year Plan
[D] Fourth Five-Year Plan to the Eighth Five-Year Plan

Answer: Option [C]

28. 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: Option B

29. What is the correct sequence of the following strategies used for Five Year Plans in India ?
I. Balanced growth
II. Rehabilitation of the economy
III. Industrial development
[A] I, III, II
[B] II, I, III
[C] II, III, I
[D] III, II, I

Answer: Option [C]

30. 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: Option C

31. Which one of the following is/ are a/ an indicator of the financial health of a country ?
I. GDP
II. PPP
III. FDI in a year
[A] Only I
[B] Only II
[C] Only III
[D] All I, II & III

Answer: Option [D]

32. 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: Option D

Explanation:The amount of intermediate consumption is deducted from the total amount.

Here it is 1000 - 500 - 100 - 100 = 300

33. Multiplier process in economic theory is conventionally taken to mean:
[A] The manner in which prices increase
[B] The manner in which banks create credit
[C] The manner in which government expenditure increases
[D] Income of an economy grows on account of an initial investment

Answer: Option [D]

34. Which of the following concepts are most closely associated with J.M. Keynes?
[A] Marginal utility theory
[B] Control of money supply
[C] Marginal efficiency of capital
[D] Indifference curve analysis

Answer: Option [C]

35. Paper currency first started in India in
[A] 1861
[B] 1542
[C] 1601
[D] 1880

Answer: Option A

36. Evaluating all the options to find out most suitable solution to business problems is inter-displinary activities. It is called
[A] Commercial research
[B] Operational research
[C] Management research
[D] Professional research

Answer: Option [B]

37. In a Laissez-faire economy
[A] The Government controls the allocation of all the factors of production
[B] The customers take all the decisions regarding production of all the commodities
[C] The Government does not interfere in the free functioning of demand and supply forces in the market
[D] The private sector takes all the decisions for price determination of various commodities produced

Answer: Option [C]

38. The ARDC is now a branch of the
[A] RBI
[B] NABARD
[C] IDBI
[D] SDBI

Answer: Option B

39. In Economics, production means
[A] Farming
[B] Creating Utility
[C] Making
[D] Manufacturing

Answer: Option [B]

40. With which form of economy is the term ‘Laissez-faire’ associated?
[A] Command economy
[B] Mixed economy
[C] Socialist economy
[D] Capitalist economy

Answer: Option [D]

41. Who among the following is not a classical economist?
[A] John Maynard Keynes
[B] Thomas Malthus
[C] John Stuart Mill
[D] David Ricardo

Answer: Option [A]

42. In Economics the ‘Utility’ and ‘Usefulness’ have
[A] Same meaning
[B] Different meaning
[C] Opposite meaning
[D] None of the above

Answer: Option [B]

43. 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: Option B

44. “Economics is what it ought to be” – This statement refers to
[A] Fiscal economics
[B] Monetary economics
[C] Positive economics
[D] Normative economics

Answer: Option [D]

46. The problem of Economics arises from
[A] Plenty
[B] Scarcity of goods
[C] More wants and less goods
[D] All of the above

Answer: Option [C]

46. Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to
[A] ARDC
[B] SBI
[C] NABARD
[D] PACs

Answer: Option C

47. In public budgets, zero-base budgeting was first introduced in
[A] UK
[B] USA
[C] France
[D] Sweden

Answer: Option [B]

48. Malthusian theory of population explored the relationship between
[A] Optimum growth and resources
[B] Population growth and development
[C] Food supply and technology
[D] Food supply and population growth

Answer: Option [D]

49. 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: Option C

50. In an economy, the sectors are classified into public and private on the basis of
[A] Use of raw materials
[B] Ownership of enterprises
[C] Employment conditions
[D] Nature of economic activities

Answer: Option [B]

51. Human Development Index was developed by:
[A] Friedman
[B] Amartya Sen
[C] Montek Singh
[D] Mahbub-ul-Haq

Answer: Option [D]

52. 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: Option D

53. Wage fund theory was propounded by
[A] J.B. Say
[B] J.S. Mill
[C] J.R. Hicks
[D] J.M. Keynes

Answer: Option [B]

54. Which one of the following is not a dimension of human development index?
[A] Social status
[B] Knowledge
[C] Life expectancy
[D] Standard of living

Answer: Option [A]

55. The New Economic Policy was introduced by:
[A] Lenin
[B] Stalin
[C] Kerensky
[D] Khrushchev

Answer: Option [A]

56. Foreign Direct Investment ceilings in the telecom sector have been raised from 74 percent to
[A] 80 percent
[B] 83 percent
[C]. 90 percent
[D] 101 percent

Answer: Option D

57. The system of “Memorandum of Understanding” (MOU) was introduced in
[A] 1988-89
[B] 1987-88
[C] 1990-91
[D] 1989-90

Answer: Option [B]

58. An economic theory is a/an
[A] Axion
[B] Hypothesis
[C] Proposition
[D] Tested hypothesis

Answer: Option [C]

59. Externality theory is the basic theory of the following branch of Economics:
[A] Environomics
[B] Fiscal Economics
[C] Macro Economics
[D] International Economics

Answer: Option [A]

60. 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: Option A

61. “Functional Finance” is associated with:
[A] Adams
[B] Adam Smith
[C] Adolph Wogner
[D] Abba ‘P’ Lerner

Answer: Option [D]

62. As per the TRIPS Agreement 1994, a good originating from a region with specific character/quality/reputation is covered/to be protected under the IPR as
[A] Patent
[B] Trademark
[C] Trade sector
[D] GI (Geographical Indicator)

Answer: Option [D]

63. ‘Globalisation of Indian Economy’ means:
[A] Stepping up external borrowings
[B] Establishing Indian Shopping Malls in abroad
[C] Giving up programmes of import substitution
[D] Having minimum possible restrictions on economic relations with other countries

Answer: Option [D]

64. The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs
[A] Ohlin
[B] J.B. Say
[C] Galbraith
[D] J.M. Keynes

Answer: Option [B]

65. An economy which does not have any relation with the rest of the world is known as
[A] Mixed economy
[B] Open economy
[C] Closed economy
[D] Socialist economy

Answer: Option [C]

66. National Development Council was set up in:
[A] 1952
[B] 1950
[C] 1949
[D] 1948

Answer: Option [A]

67. A philosophy that the worker should share in industrial decisions is termed as
[A] Worker dictatorship
[B] Industrial socialism
[C] Worker sovereignty
[D] Industrial democracy

Answer: Option [D]

68. According to Modern Theory of Rent, rent accrues to
[A] Any factor
[B] Capital only
[C] Land only
[D] Labour only

Answer: Option [A]

69. The book which is at the centerpiece of the study of Macro-Economics was written by
[A] Prof. Benham
[B] Prof. Baumol
[C] Prof. Samuelson
[D] Prof. J.M. Keynes

Answer: Option [D]

70. ‘Take off stage’ in an economy means:
[A] Economy is stagnant
[B] Steady growth begins
[C] Economy is about to collapse
[D] All controls are removed

Answer: Option [B]

71. Which of the following indicates economic growth through Five Year Plans ?
[A] Rise in national income and per capita income
[B] Development of railways and roadways
[C] Development of education and health services
[D] Development of industrial towns and industrial estate

Answer: Option [A]

72. ‘Take-off stage’ in an economy means
[A] Steady growth begins
[B] Economy is stagnant
[C] Economy is about to collapse
[D] All controls are removed

Answer: Option [A]

73. The relationship between the rate of interest and level of consumption was first visualized by
[A] Amartya K. Sen
[B] Irving Fisher
[C] Milton Friedman
[D] James Duesenberry

Answer: Option [B]

74.Union Budget of India is presented by whom and in which house/ houses of the Parliament?
[A] Finance Minister of India; Lok Sabha
[B] Prime Minister of India; Rajya Sabha
[C] Cabinet Secretary; Both Lok Sabha and Rajya Sabha
[D] President of India; in joint session of Parliamnet

Answer: option A : Finance Minister of India; Lok Sabha

75. Who among the following presented Union Budget maximum number of times?
[A] P. Chidambaram
[B] R K Shanmukham Chetty
[C] Pranav Mukherjee
[D] Morarji Desai

Answer: option D : Morarji Desai; 10 times

76. Who among the following presented the first budget (interim) of Independent India?
[A] Manmohan Singh
[B] Jawaharlal Nehru
[C] R K Shanmukham Chetty
[D] N.D. Tiwari

Answer: Option C : R K Shanmukham Chetty; 26th November, 1947

77. Which one of the following Five-Year Plans recognised human development as the core of the developmental efforts ?
[A] The Fourth Five-Year Plan
[B] The Fifth Five-Year Plan
[C] The Sixth Five-Year Plan
[D] The Eighth Five-Year Plan

Answer: Option [D]

78. Which of the following statements about the Indian Economy is correct ?
[A] In India, single biggest employment is agriculture and allied activities
[B] No physical targets were visualized
[C] About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital
[D] About 70% Indians are involved in some type of self- employment and are the owners of some or the other micro or small enterprise

Answer: Option [A]

79. In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in
[A] Tenth Plan
[B] Eighth Plan
[C] Sixth Plan
[D] Fourth Plan

Answer: Option [B]

80. Who performs the central banking functions in India?
[A]  State Bank Of India
[B]  NABARD
[C]  RBI
[D]  Finance Ministry

Answer: option C

81. A “closed economy” is a kind of economy in which
[A] Only exports take place
[B] The money supply is fully controlled
[C] Deficit financing takes place
[D] Neither exports nor imports take place

Answer: Option [D]

82. Which statement is correct for Indian Planning Commission ?
[A] Members do not require any minimum education
[B] It is not defined in Indian Constitution
[C] Members and Vice-Chairman of it do not have fixed working duration
[D] All of the these

Answer: Option [D]

83. Which of the following does not comes under the developmental expenditure of India?
[A]  Expenditure on administrative services
[B]  Defence expenditure
[C]  Grants to states
[D]  Expenditure on social welfare schemes

Answer: Option B

84. What is the mean of GILT- EDGED market?
[A]  Market of pure metals
[B]  Market of government securities
[C]  Bullion market
[D]  Market of guns

Answer: Option B

85. Consider the following statements and identify the right ones.
i. The Agricultural Price Policy aims at providing assured price to the farmers.
ii. It aims at inducing farmers to bring in their surplus produce to the market.

[A] I only
[B] ii only
[C] Both
[D] None

Answer:  Option C

86. Who recommends the MSP and issue prices?
[A] Ministry of agriculture
[B] Planning commission
[C] NABARD
[D] Commission for Agricultural Costs and Prices (CACP)

Answer:  Option D

87. Which of the following is the implementing agency for National Agricultural Insurance Scheme?
[A] Agricultural Insurance Company of India Limited
[B] Commission for Agricultural Costs and Prices
[C] Food Corporation of India  limited
[D] NABARD

Answer:  Option A

88. Consider the following statements and identify the right ones.
i. The NAIS protects farmers from crop losses due to natural calamities
ii. The scheme is available only to farmers with small land holdings

[A] i only
[B] ii only
[C] Both
[D] None

Answer: Option A

89. Consider the following statements and identify the right ones.
i. NABARD was set up in 1982
ii. It facilitates credit only for agriculture

[A] ii only
[B] i only
[C] Both
[D] None

Answer: Option B

90. Which three indicators are used in the Human Development Index (HDI)?
I. Standard of living
II. Education
III. Life expectancy
IV. Condition of environment

[A] Only I, II & IV
[B] Only I, II, & III
[C] Only I & II
[D] All of the above

Answer: Option B

91. Who releases the Human Development Report?
[A] World bank
[B] World economic forum
[C] United Nations
[D] UNCTAD

Answer: Option C

92. Who secured the top rank in The Human Development Report 2014?
[A] Sweden
[B] Norway
[C] Switzerland
[D] Austria

Answer: Option B

93. Who secured the lowest rank in The Human Development Report 2014?
[A] Afghanistan
[B] Congo
[C] Niger
[D] Kenya

Answer: Option C

94. What is the rank of India in the Human Development Index 2014?
[A] 142th
[B] 136th
[C] 140th
[D] 135th

Answer: Option D

95. When was the Gender Inequality Index (GII) introduced?
[A] 2010
[B] 2011
[C] 1999
[D] 2005

Answer: Option A

96. Who invented the Human Development Index?
[A] Paul krugman
[B] Mahbub – ul Haq
[C] Jean dreze
[D] Alfred marshal

Answer: Option B

97. Who releases the Multidimensional Poverty Index (MPI)?
[A] World Bank
[B] World Economic Forum
[C] UNDP
[D] Asian Development Bank

Answer: Option C

98.Which of the following index is not released by the UNDP?
[A] Human Development Index
[B] Multidimensional Poverty Index
[C] Gender Inequality Index
[D] Environmental Quality Index

Answer: Option D

99.Which statement depicts the best definition of sustainable development?
[A]  It means optimal utilization of natural resources.
[B]  Sustainable use of natural resources without considering the need of the future generation.
[C] Present generation fulfills its needs while considers the needs of the future generation as well.
[D] None of the above

Answer: Option C

13. Which of the following statement/s is true about the sustainable development?
(i) It was introduced in early 1980’s in particular through the publication of the World Conservation Strategy by IUCN, UNEP and WWF.
(ii) It was introduced in early 1992’s on the recommendation of Brettonwoods commission.
(iii) It was introduced in early 1980’s on the recommendation of Brundtland commission.
(iv) It means that Present generation should fulfill its needs while considering the needs of the future generation as well.

[A] i & ii
[B]  i,iii & iv
[C] ii & iv
[D] only ii

Answer: Option B


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