INDIAN ECONOMY

<4: Nature of Indian Economy

1. The term ‘mixed economy’denoted: (c) Atrade-surplus economy
(a) existence ‘of both rural and urban sectors (d) A capital-surplus economy [48th—52nd BPSC 2008]
{b) existence of both private and public sectors 7. .Mixed Leconomy means :
(c) existence of both heavy and small industries (a) Where agriculture and industry are given equal
(d) existence of both developed and underdeveloped importance
sectors [SSC Tax Assit. 2008; SSC Tax Assit. 2009] (by Where public sector exists alongwith the private
2. Inan economy, the sectors are classified into public and sector in national economy
privateon the basis of : (c) Where globalization is transferred with heavy does
(a) employment condition of Swadeshi in national economy
(b) nature of economic activities * (d) Where the Centre and the States are equal partners
4e)" ownership of enterprises in economic planning and development
(d) use of raw materials [SSC DEO 2009, CDS 2014] ff UP PCS 2003; UP PCS (Main) 2007]
3. The ‘Dual Economy’ is a mixture of :
4a) traditional agriculture sector and modern industrial die Pre-dominance of Agriculture
sector
2. Pre-dominance of Industry
(b) industrial sector and manufacturing sector
(c) state ownership of the means of production in _3. Low Per Capita Income
corporation of foreign organisation _4: Massive Unemployment
(d) industrial sector and trading of goods obtained Select your answer from the code given below :
through imports Codes:
(e) none of these [NABARD Bank Officer 2010] (a) land 2 only (b) 1,2 and 3 only
4. Which sector of Indian Economy has shown remarkable (c) 2,3 and 4 only (ad) 1,3 and 4 only
expansion during the last decade ‘J [UP PCS Special (Pre) 2004]
(a) Primary Sector “(b) Secondary Sector 9. In India, , planned 1 economy isis based on:
(ec) Tertiary Sector (d) Mining Sector (a) Gandhian System
[45th BPSC 2002] -(by Socialist System
5. When . development itin economy takes place,th
the share of (c) Capitalist System
tertiary sector i in . National Income : (d) Mixed Economy System [UP PCS (Pre) 2007]
(a) first falls and the rises (b) first rises and then falls 10. Economic liberalisation in India started with :
fey keeps on increasing (d) remains constant -(a) substantial changes in industrial licensing policy
[47th BPSC 2005] (b) the convertibility of Indian rupee
6. It willbe true tg classify India as : (c) doing away with procedural formalities for foreign
(a) A food-deficit economy direct investment
by A labour-surplus economy (d) significant reduction in tax rates [UPSC 2000]

—2z: National Income in India

1. Afirmsellsnew shares worth = 1000 direct to individuals. 3. In India, agriculture incomeis calculated
by :
This transaction will cause : fay Output method
(a) Gross National Product to rise by = 1000 (b) Input method
(b) Gross Domestic Product to rise by = 1000 (c) Expenditure method
(c) National Income to rise by = 1000 (d) Commodity flow method
4d) No impact on Gross National Product [SSC Grad. 2005]
[SSC Grad. 2004] 4. Who coined the term ‘Hindu rate of growth’ for Indian
2. Which is not included in the private income arising ina Economy ? 7
country ? (a) A. K. Sen
(a) Factor income from net domestic product (b) Kirit S. Parikh
(b) Net factor income from abroad -c) Raj Krishna
(c) Current transfers from Government (d) Montek Singh Ahluwalia
{d) Current Payments on foreign loans [SSC Grad. 2005] [SSC Sec. Off. (Aud.) 2007]
136 Objective General Knowledge

5. GDP at factor cost is : a domestic residents of a count ut together is called :

“(ay GDP minus indirect taxes plus subsidies (a) Net National Product 4o}-Cross National Product
(b) GNP minus depreciation allowances (c) Gross National Income (d) National Income
(c) NNP plus depreciation allowances (e) None of these [Bank of Maharashtra Agri. Off. 2009]
(d) GDP minus subsidies plus indirect taxes 17. Which of the following is the correct definition of the
[SSC Tax Assit. 2008] .[Link]? ~
6. Per Capita Income is obtained by dividing | National (a) National Income means the total amount of money
_Income by-: Governmentearns only through direct tax collections
(a) Total population of the country every year
(b) Total working population(c) Area of the country (b) It is the total value of all sorts of stocks held by a
(d) Volume of the capital used [SSC Sec. Off. (Aud.) 2008] country at a particular point of time
7. Which one of the following is development
a expenditure ? fe) Thisisthe measure of the volume of commodities and
fay Irrigation expenditure” (b) Civil administration services turned out during a given period counted
(c) Debt services (d) Grant-in-Aid without duplication.
[SSC CPO SI 2008] (d) All ‘a’, “b’ and ‘c’
8. Gross Domestic Product (GDP) is defined as the value of all : (e) None of these [RBI Grade B Officer 2009]
(a) goods produced iin an economy in a year 18. Which of the following is equivalent to National Income ?
(b) goods and services in an economy in a year (a) Gross Domestic Product at market price ee
(c) final goods produced in an economy in a year (b) Net Domestic Product at factor cost
&d) final goods and services produced in an economy in (c) Net National Product at market price
a year [SSC Tax Assit. 2009] ¢d) Net National Product at factor cost [CDS 2003]
9. Depreciation is equal to: 19. Assertion (A): Per Capita Income of India does not
fa) Gross National Product—Net National Product give a complete picture of the economic
(b) Net National Product—Gross National Product growth of the country.
(c) Gross National Product—Personal Income Reason (R) : Per Capita Income of a country is not
(d) Personal Income—Personal Taxes /SSC DEO 2009] independent of the size of its population.
10. Which one of the following is NOT a_method of Codes :
measurement of National Income ? x (a) Both Aand Rare true and R is the correct explanation
(a) “Value Added Method (b) Income Method of A
(c) Bepenstiure Method dj) Investment Method 46) BothAand Rare true but Risnota correct explanation
[SSC CPO SI 2009] of A
11. Net National Product (NNP) of a country is : (c) Ais true but R is false
(a) GDP minus depreciation allowances (d) Ais false but R is true [CDS 2007]
(b) GDP plus net income from abroad 20. Which sector of Indian Economy contributes teaigeet to
(c) GNP minus net income from abroad the Gross National Product ?
4d) GNP minus depreciation allowances (a) Primary Sector (b) Secondary Sector
[SCRA 2003, SSC CPO SI 2009] fey Tertiary Sector (d) Public Sector
12. National Income is based on the: [44th BPSC 2001; MP PSC (Pre) 2008]
(a) total revenue of the State ~ 21. National Income estimates in IIndia are prepared by.:
by production of goods and services (a) Planning Commission (b) “Reserve Bank of India
(c) net profit earned and expenditure made by the State (c) Central Statistical Organisation.
(d) the sum of all factions of income (d) Indian Statistical Institute
[RRB Mahendru, (Patna) TC 2006] [45 BPSC 2002; UP PCS 2006; 47 BPSC 2007; UP PCS nee
13. Which of the following is definitely a major indication of 22. Per Capita Income of a [Link] :
the State of the economy of a country ? (a) NationalIncome (b) Population
a) Rate of GDP growth (b) Rate of inflation fey National Income and Population both
(c) Number of Banks in a country (d) None of these [45th BPSC 2002]
(d) Stock of foodgrains in a country
(e) None of these [Bank of India Clerk 2008]
23. The main source of National
Income in India is :
fay Service Sector (b) Agriculture
14. Which of the following
can be called as a part of the (c) Industrial Sector (d) Trade Sector
Service Sector ? iil [47th BPSC 2007; WB PSC(Pre) 2008]
(a) “Textite Mills 4b Banking (c) Coal Mines
24, The base year for computation of National Income in
(d) Agriculture (e) Noneofthese /SBI Clerk 2008]
India is :
15. Many a times we read a term in financial newspapers (a) 1990-91 5) 1993 —94
‘GDP. What is the full form of the same @ (c) 1999 — 2000 (d) 2000-01
tay “Gross Domestic Profuct (b) Global Domestic Ratio [UP PCS(Main) 2004; SSC Tax Assit. 2009]
(c) Gross Depository Revenue
25. In India, Hindu Rate of ' Growthi is associated with which
(d) Global Depository Receipts
of the following?
(e) None of these [SBI Clerk 2008]
“(a) Birth Rate ~~ (b) Population
16. Interms of economics, the total value of the output (goods (c) Per Capita Income {a) National Income
and services) produced and income received in a year by [UP PCS (Main) 2004]
 Indian Economy 137

26. Which one of the following is NOT an example of _ (a) growth of population by increase in price level
economic overheads? (c) growthinmoney supply (d) increase in the wage rate
(a) Schools (b) Sanitary Facilities IEE. 2000]
(c) Roads and Railways ¢e¥ Coal Mines
[UP PCS (Main) 2004]
27. In India, service sector includes : (a)oo Dericsiic Product Se Net Domestic Product
I. Mining and Quarrying (c) Net National Product SY Per Capita Real Income
. Transport and Communication [UPSC 2001]
—Ht Hotels IV. Forestry and Fishing 39. The term National Income represents :
Select your correct answer from the codes given below : (a) Gross National Product at market price minus
Codes : depreciation
(a) Only Iand II ps) Only II and UI (b) Gross National Product at market price minus
(c) Only I and IV (d) Only Iand IV depreciation plus net factor income from abroad
[UP PCS (Main) 2004] ~{c) Gross National Product at market price minus
28._In India, Tertiary Sector includes: depreciations and indirect taxes plus subsidies
(d) Gross National Product at market prices minus net
“I- Trade and Transport il. Finance and Real Estate
factor income from abroad [UPSC 2001]
Ill. Forestry and Fishing
Choose the correct answer from the codes givenbelow : 40. Consider the following States :
Codes : 1. Maharashtra 2. Gujarat
(a) Ionly 46) Land II only 3. ‘Karnataka 4. . Tamil Nadu
(c) ILand HI only (d) Wlonly /UP PCS 2004]
The descending order of these States with reference to
their level of Per Capita Net State Domestic Product is :
29, Hindu Rate of Growth refers to the [Link] growthof : ‘@ 123.4 b) 2134 @© 43,21 (4) 342,1
fay GDP" Pe ee ae Population [UPSC 2001]
(c) Foodgrains (d) Per Capita Income 41. Which one among the following countries has the lowest
[UP PCS (Main) 2006]
_GDP per capita ? Sa
30. Who hhad estimatedNational Income inIndia first ? (a) China (bf India (c) Indonesia (d) Sri banks
be)
(a) Dadabhai Naoroji ‘(b) RK.C. Dutt [UPSC 2001]
(c) V.K.R. V. Rao (d) D. R. Gadgil 42. Which one of the following is the correct sequence in the
[UP PCS (Pre) 2007; SSC Mat. 2008]
decreasing order of contributionof different sources to
31. Who wrote a book describing the theory of economic the Gross Domestic [Link] India ?
drain ofIndia during British rule ? ay Service — Industry — Agriculture
(a) 1Late Lajpat Rai (b) Mahatma Gandhi (b) Service — Agriculture — Industry
(c) Jawahar Lal Nehru dey Dadabhai Naoroji (c) Industry — Service — Agriculture
[UP PCS (Main) 2007] (d) Industry — Agriculture — Service [UPSC 2007]
32. As the econom develops. tthe. en oe cs Lsrita Bisector 43. With reference to Indian economy, consider the following
in the ove ‘ au ey statements:
_ (b) Decreases then increases 1. The Gross Domestic Product (GDP) has increased by
Le) ee (d) Remains constant four times in the last 10 years
[UP PCS (Main) 2008] 2. The percentage share of Public sector in GDP has
33. The National Income of a [Link] : declined in the last 10 years
(a) The annual revenue of the Government Which of the statements given above is/are correct ?
-(6) Sum total of factor incomes (a) 1 only (b) 2 only
(c) Surplus of Public Sector Undertakings (c) Both I and 2 (d) Neither 1 nor 2
[UPSC 2010]
(d) Export minus Import [WB PSC (Pre) 2008]
44. Under which of the following circumstances may ‘capital
34. In an open economy, the National Income (Y) of the gains’ arise ?
economy is : 1. When there is an increase in the sales of a product
(C = Consumption, I = Investment, G = Government 2. When there is a natural increase in the value of the
expenditure, X = Total exports, M = Total import) property owned
(a) Y=C+1I+G+xX (b) Y=I1+G-X+M 3. When you purchase a painting and there is a growth
(c) Y=C+I-G+(X-M) (d) Y=C+I-G+X-M in its value due to increase in its popularity
[UPSC 2000] Select the correct answer using the codes given below :
35. The new bees series related aes the os in February, (a) 1 only (b) 2 and 3 only
(c) 2 only (d) 1,2and3 ([UPSC 2012]
(a) 1991 - 92 a 1992 — 93 ie; 1993 _ 94 (d) 1994-95 45. In India, in the overall Index of Industrial Production, the*
[UPSC 2000] Indices of Eight Core Industries have acombined weight
36. The Per Capita Income in India was & 20 in 1867 — 68 was of 37.90%. Which of the following are among those Eight
ascertained for the first time by : _ Core Industries ?
fa) Dadabhai Naoroji (b) R.C. Dutta 1. Cement 2. Fertilizers3. Natural gas
(c) M.G. Ranade (d) W. Hunter /UPSC 2000] 4. Refinery products 5. Textiles
37. The growth rate of Per Capita Income at current prices is Select the correct answer using the codes given below :
higher than that of Per Capita Income at constant prices, (a) land 5 only (b) 2,3 and 4 only
because the latter takes into account the rate of :
(c) 1,2,3 and 4 only (d) 1,2,3,4and'5
[UPSC 2012]
138 Objective General Knowledge

-3-Planning in India
1. Under which plan did the Government introduce 11. Which of the following is an -extra-constitutio
Satie aie.
al_an
an_agricul ategy which gave rise to Green non-statutory body, ?
Revolution ? a) Planning Commission
C (b) Finance Commission
(a) Second Five Year Plan (b) Third Five Year Plan (c) Election Commission
(c) Fourth Five Year Plan (d) Sixth Five Year Plan (d) Union Public Service Commission
; [SSC Grad. 2000] [SSC Tax Assit. 2009]
2. The Second Five Year [Link] based on: 12. Arolling plan refers toa plan-which.;
4a) Mahalanobis Model (a) does not change its targets every year
(b) Vakil and Brahmananda’s Wage — Goods Model (b) changes its allocations every year
(c) Harrod —- Domar Growth Model fe) changes its allocations and targets every year
(d) Solow Growth Model [SSC Grad. 2000] (d) changes only its targets every year
[SSC Tax Assit. 2009]
3. The Planning Commission of India is :
‘(a) Aconstitutional body 13. Which one of the following Five Year Plans of India had
(b) An independent and autonomous body growth with social justice and equality for achieving its
(c) AStatutory body (dt) Anon-statutory body goal as the main focus ?
[SSC Sec. Off. (Aud.) 2006; RRB Supervisor /IESM(Mumbai) 2006] (a) VI (b) VII (c) VII Ad)[SCRA
Ix 2000]
4. Mahalanobis Model has been associated with which Five
Year Plan? 14. Which one of the following pairs is NOT correctly
a) First Five Year Plan {by Second Five Year Plan matched ?
(c) Third Five Year Plan (d) Fourth Five Year Plan (a) First Five Year Plan : 1951 — 56
[SSC Mat. 2008] (b) Third Five Year Plan : 1961 — 66
5. Which Plan. gave emphasis. on removal of poverty for the (c) Fifth Five Year Plan : 1974-79
__first time? _{d&) Ninth Five Year Plan : 1996 — 2001 [SCRA 2000]
(a) Fourth by Fifth (c) Sixth (d) Seventh 15. Which of the | following. is /are_incl
included_in_ ‘Deficit
[SSC Tax Assit. 2008] Financing’ in India. The term_is
is used frequently in
6. The periodof the Eleventh FiveYear Planis : “economic planning :
(a) 2005 to 2010 (b) 2006 to 2011 _l.. Borrowing from the Reserve Bank of India
fe) 2007 to 2012 (d) 2008 to 2013 ~2. Issue of new currency notes
[SSC Tax Assit. 2008] ~3. withdrawal of past balances/ surpluses etc
7. The Tce India was constituted in (a) only 1 (b) only 2
e year: (c) only 3 (a) All1,2and3
“Ya) 1942 = (b):1947 (c) 1950 (d) 1955 (e) None of these [Union Bank of India PO. 2008]
[Bihar SSC LDC 2005; SSC Sec. Off. (Aud.) 2008; SSC DEO 2008; 16. Which one of the following is NOT within the duties of
NDA 2008] the Planning Commission ?
8. Which one of the following is NOT correct ? (a) To define the stage of growth and suggest allocation
(a) First Five Year Plan : 1951 — 56 of resources
(b) Second Five Year Plan : 1956 — 61 (b) To make an assessment of the material, capital and
(c) Third Five Year Plan : 1961 — 66 human resources of the country
dy Fourth Five Year Plan: 1966-71 {SSC CPOSI 2008] fe} To determine the nature of machinery required for
9. Inthe post-independence p:period, economicreforms were implementation of plan proposals
first introdticed i‘in India tinder : (d) To prepare the annual central budget = [NDA 2003]
(a) Janata. Party Government (1977) 17. Which Five Year Plan had an_ objective of ‘Rapid
(b) Indira Gandhi Government (1980) industrialization | _with | _ Particular emphasis on
(c) Rajiv Gandhi Government (1985) nine ee Pan
d) P.V. Narasimha Rao Government (1990) (a) Fourth
[SSC CPO SI 2008] [NDA 2007; SCRA 2007]
10. Only one of the following can be the ex-officio Chairman 18. Which is the highest body that approves Five [Link]
_of the Planning Commission. He is the : in thecountry ?
(a) Minister for Planning and Development (a) Planning Commission (b) Union Cabinet
(b) Home Minister (c) Parliament
(ec) Prime Minister (d) Finance Minister Ad) National Development Council
[Bihar SSC LDC 2005; NDA 2008; SSC Tax Assit. 2009; [CDS 2003; SSC Sec. Off. (Aud.) 2006; Bank of India ‘Clerk 2008;
SSC CPO SI 2009] : SSC Tax Assit. 2009; NDA 2009]
 Indian Economy 139

19. In India, the » concept of ‘[Link]’ and ‘directed (b) The National Development Council is presided over
‘anti-poverty programmes’ were the innovation of: by the Prime Minister of India
(a) Fourth Fivé Yéar Plan -¢6) Fifth Five Year Plan (c) Secretary of the Planning Commission is also the
(c) Sixth Five Year Plan (d) Seventh Five Year Plan Secretary of the National Development Council
[CDS 2004; CDS 2006] ~(d) Planning Commissionis the highest decision-making
20. 9th Plan in India covers the period of : noey for pene in os [UP PCSacees ) 2004]
‘(a) 1990 — 1995 (b) 1992 — 1997
Ac) 1997 — 2002 (d) None of these For the country vests in :
[45th BPSC 2002] ‘(a) The Planning Commission
21. What is the Tenth Plan period ? ~(6) The National Development Council
(a) ‘Year 1999 to 2003 ~ “(b) Year 2000 to 2005 (c) The Union Cabinet
~fé) Year 2002 to 2007 (d) None of these (d) The Parliament [UP PCS (Main) 2004]
[46th BPSC 2004] 34. The National [Link]
(NDC) :
22. When was the Planning Commission established ? -t- discusses progress of the National Plan
(a) 10th March, 1950 -(6) 15th March, 1950 —2-— suggests the way to achieve goals of the National
(c) 20th March, 1950 (d) 16th March, 1951 Plan
[47th BPSC 2005] 3% gives guidelines to formulate the National Plan
23. Economic Planning is in : 4. suggests plan allocation
(a) Union list (b) State list Consider the above statement, select the correct answer
_fey’ Concurrent list (d) not any specified list from the codes given below :
[47th BPSC 2005] Codes :
24. The outline of Second Five Year Plan was made by : fa) 1,2and3 (b) 2,3 and 4
(c) 1,2and4 (d) All of the above
(a) B.N. Gadgil ~~ ~~“) -V.K.R. V. Rao [UP PCS (Main) 2005]
fc) P. C. Mahalanobis (d) C.N. Vakil
[47th BPSC 2005] 35. The slogan ‘Garibi Unmulan’ (Poverty eradication) was
given in which Five Year Plan ? :
25. NABARD was established in the:
(a) Second plan (b) Fourth plan
“(a) Fourth Five Year Plan” (b) Fifth Five Year Plan
-e) Fifth plan (d) Sixth plan
«(c) Sixth Five Year Plan (d) Eighth Five Year Plan [UP PCS (Pre) 2007; WB PSC (Pre) 2008]
[47th BPSC 2005]
36. In
In_which Five Year Plan, Economic Development Rate
26. _The Eleventh Plan’s objective is:
was maximum ?
rev Removal of Poverty
Po ~(b) Inclusive growth
“(a) First Five Year Plan (b) Fourth Five Year Plan
(c) Growth with social justice — (c) Sixth Five Year Plan Lé&) Tenth Five Year Plan
(d) Development of minors [48th ~- 52nd BPSC 2008] [UP PCS (Main) 2007; UP PCS (Main) 2009]
27. The period of Plan Holiday in India was.:_
37. In which one of year ‘Rolling Plan’ was in operation
in.
“(a) 1962-65 (6) 1966 - 69 India ?
(c) 1969-72 (d) 1972-75 “(a) 1968 — 69 45} 1978-79
[48th —52nd BPSC 2008]
(c) 1988-89 (d) 1990-91
28. The Rolling Plan concept in national planning was {UP PCS (Main) 2007]
introduced
by : a 38. Inclusive growth would necessiate :
(a) Indira Gandhi Government (a) Development of infrastructural facilities
(b) The National Front Government (b) Revival of Agriculture
~(c) The Janata Party Government (c) Increase availability of social service such as
(d) Rajiv Gandhi Government [48th-52nd BPSC 2008] education and health
29. In which Five Year Plan, the main objective was the (@& All the above [UP PCS (Main) 2008]
eradi, ition of poverty ? 39. The theme of the approach paper of the Eleventh Five
‘(a) Fourth Five Year Plan .(b) Fifth Five Year Plan Year Plan has been : 7
(c) Sixth Five Year Plan (d) Seventh Five Year Plan (a) Indicative Planning
[UP PCS (Pre) 2004] (b) Growth with Social Justice
30. Which of the following is NOT a constitutional organ ? -e} Towards faster and more inclusive growth
-(a) Election Commission (b) Finance Commission (d) Planning for prosperity [UP PCS (Main) 2008]
(c) Inter-State Council {@) Planning Commission 40. National Development Council was constituted on :
[UP PCS(Main) 2004] (a) August 16, 1950 (b) April 1, 1951
31. The Rolling Plan for backward countries was suggested {c} August 6, 1952 (d) August 16, 1952
[UP PCS Special (Pre) 2008]
fa) Gunnar Myrdal (b) W. A. Lewis 41. Planning was considered a prerequisite :
(c) R. Nurkse (d) A. Samuelson _ 1. For balanced socio-economic development
[UP PCS (Main) 2004] 2. Forextending the benefits of developmentinaneven
32. Which one of the following statements is NOT true ? manner
(a) Prime Minister is the Chairman of the Planning 3. For focussing on removal of regional disparities
Commission of India 4. For maximizing the utilization of available resources
140 Objective General Knowledge

Select the correct answer from the codes given below : 53. _The iron and steel plants of Rourkela and Durgapur were
Codes : conceived [Link]...
(a) land 2 (b) 1,2 and3 wile “First Five Year Plan <b) Second Five Year Plan
(c) 2,3 and 4 a All the four (c) Third Five Year Plan (d) Fourth Five Year Plan
[UP PCS (Pre) 2009] [WB PSC (Pre) 2008]
42. National Horticulture Mission was launched in
i = of 54. _National Development Council (NDC) deals with :
the following Five \Year “Plans”fe ec a ma 4ay The approval of Five Year plans
(a) Ninth Five Year Plan ~ (by Tenth Five Year Plan (b) Preparation of Development plans
(c) Eleventh Five Year Plan (d) None of these (c) Rural Development Programme
[UP PCS (Main) 2009] (d) Poverty Alleviation Programme [WB PSC (Pre) 2008]
43. ‘Twenty Point ] Programme’ (Beessutri Karyakrama).was 55. The real introduction of Decentralized Planning inIndia
first lalaunched iin the Year : ‘was made for the first time during the :
(a) 1969 by 1975 (c) 1977 (d) 1980 (a) 7thPlan (b) 8th Plan
[UP PCS (Main). 2009] ey 9th Plan (d) 10th Plan
[WB PSC (Pre) 2008]
44, Who of the following is Chairman of the Planning
Commission of India ? 56. The major emphasis in the First Five -Year.Plan_was_on :
“ay Agriculture (b) Employment generation
(a) Pro A. M. Khusro (b). N. K. P. Salve
(c) Industry (d) Export promotion
(c) M.S. Ahluwalia 4etY None of these
[TN PSC (Pre) 2009]
[Uit. PSC (Pre) 2005]
57. Rourkela Steel Plant was [Link] the assistancefrom :
45. Which
of the followingis an extra-constitutional
body ? (a) USSR (6) West Germany
(a) Union Public Service Commission
(c) USA (d) UK [TN PSC (Pre) 2009]
(b) Finance Commission (c) Election Commission
Ad) Planning Commission [Utt. PSC (Pre) 2005] 58. Planning Commission was established in 1950 through:
(a) A constitutional amendment
46. Who was the First Chairman, of Planning Commission of (b) A Supreme Court order
India ? <c) An executive order
(a) M. Viswesvarya fey Pt. Jawahar Lal Nehru (d) A decision by the Parliament [TN PSC (Pre) 2009]
(c) P.C. Mahalanobis (d) John Mathai 59. During which Five Year Plan was the Emergency clamped,
[Utt PSC (Pre) 2006]
new elections took place and the Janata Party was
47. Who presides over the National Development Council elected? ‘aia
Of India.2e (a) Third (b) Fourth -¢) Fifth (d) Sixth
(a) Deputy Chairman of Planning Commission of [UPSC 2009]
India 60. Consider the following statements a mee 2 Indian
(6) Prime Minister of India Planning :
(c) Finance Minister of India 1. The Second Five Year Plan emphasized on the
(d) Vice President of India [Utt. PSC (Pre) 2006] establishment of heavy industries.
48. Which of the final authority ini India to approve Five Year 2. The Third Five Year Plan introduced the
Plans 2? concept of import substitution as a strategy for
"(a) Union Council of Minisfers industrialization.
(b) Planning Commission (c) Prime Minister Which of the statement(s) given above is/are correct ?
.£d&) None of these NOC [MP PSC (Pre) 2008] (a) 1 only (b) 2 only
fe) Both 1 and 2 (d) Neither 1 nor 2
49. PlanninginIndia, Regie eel be ia or
[UPSC 2009]
‘Year Plan, Who was the architect of Indian Planning ?
(a) Jawahar Lal Nehru (b) Morarji Desai 61. Inclusive growth as enunciated in the Eleventh Five Year
(c) C.D. Deshmukh {d) P.C. Mahalanobis
Plan does NOT include one of the following :
(a) Reduction of Poverty
[CPSC (Pre) 2008]
(b) Extension of Employment opportunities
50. Which of the following experienced the fastest expansion (ey Reduction of Gender inequality
during the plan in India ? (d) Strengthening of Capital market [UPSC 2010]
(a) Agriculture (b) Industry
62. In the context of India’s Five Year Plans, a shift in the
4c) Services (d) None of these
pattern of industrialization, with lower emphasis of
[WB PSC (Pre) 2007]
heavy industries and move on infrastructure begins in :
51. Whose rname is associated with formulation of Planning (a) Fourth Plan 6) Sixth Plan
Strategy inn Second Five Year ‘Plan i) (c) Eighth Plan (d) Tenth. Plan/UPSC 2010]
(a) Mahatma Gandhi — (b) Jawahar Lal Nehru
63. Which of the following can aid in furthering the
fe) Prasanta Chandra (P.C.) Mahalanobis
Govennment’s objective of inclusive growth ?
(d) B.R. Shenoy [WB PSC (Pre) 2008] 1. Promoting Self Help Groups
2. Primary emphasis during Second Plan was laid on the 2. Promoting Micro, Small and Medium Enterprises
yee Bint 3. Implementing the Rights to Education Act
(a). Rural Areas {by Basic and Key industries Select the correct answer using the codes given below :
(c) Foreign trade (d) Consumer industries (a) lonly (b) 1 and 2 only >
[WB PSC (Pre) 2008] (c) 2 and 3 only (ay 1,2and3 /UPSC 2010]
 Indian Economy 141

ja Population of India
1. Which amongst the following,.States/UTs .has NOT, 11. In the history of Indian population, which-duration
identified tribal community ? _Period is referred d to asa great leap. forward’ ?
“(a) Chhattisgarh -(b) Haryana (a) 1921-1931" ‘(b) 1941-1951
(c) Maharashtra (d) Karnataka fe) 1951-1961 (d) 1971-1981
[SSC Grad. 2003] [SSC Mat. 2008]
2. Which amongst the-following States/UTs has NOT 12. During which decade did the population of India record,
identified tribal community ? ee a negative growth. rate ?
(a) Uttar Pradesh ~~ (b): «Orissa “fer 1911-21" (b) 1921-31
(c) Andhra Pradesh Ad) Delhi [SSC Grad. 2003]
(c) 1931-41 ‘(d) 1941-51
{SSC Grad. 2008]
3. According to Census 2001, ,what is the percentage of male 13. The 2011 Census could be the :
_literacy?.. (a). ‘13th Census" """(6)._: 14th Census
) 75.85 (b) 70 (c) 65 (d) 60 £2) 15th Census (d) 16th Census
[SSC Grad. 2005] [SSC Tax Assit. 2008]
4, Which State of India has recorded the highest rateof 14. Which one of the following is NOT a [Link] the,
population growth iin the last Census 2001 ‘a “population off a developed country, ?
“(a) Gujarat (b) Manipur (a) Low birth rate and low death rate
~(c) Nagaland (d) Haryana 6) High birth rate and high death rate
[SSC Grad. 2006; Utt. PSC (Pre) 2006] (c) High proportion of urban population
5. What is the correct order of towns on the basis of (d) Low growth rate of population /SSC Tax Assit. 2008]
population-size (census 2001) ? 15. Which one of the following States of India records the
“4a) Greater Mumbai, Delhi, Kolkata, Chennai, Bangaluru highest sex-ratio a
(b) Greater Mumbai, Delhi, Kolkata, Bangaluru, Chennai “kerala” (b) Karnataka
(c) Kolkata, Greater Mumbai, Delhi, Chennai, (c) Meghalaya (d) Tamil Nadu
[SSC Sec. Off. (Aud.) 2008]
Hyderabad
(d) Delhi,GreaterMumbai,
Kolkata, Chennai, Hyderabad 16. Which is the largest State of India, population-wise, ,
[SSC Grad. 2006} _ according to 2001 Census ?(a
(a) Maharashtra “(b) Bihar
6. Identifythee Indian State which has the lowest sex ratio: fey Uttar Pradesh (d) West Bengal
(a) Haryana * (b) Punjab [SSC Tax Assit. 2009]
(c) Uttar Pradesh (d) Arunachal Pradesh 17. Census of population in India is done after :
[SSC Grad. 2006] “(a) 2 years (b) 5 years “(c) "7 years 5) 10 years
7. In India, population density is defined as, the number of [Bank of India Clerk 2008; SSC Sec. Off. 2010; Corporation Bank
_ persons : PO 2010]
“(ay Per square mile oe) Per square kilometre 18. What is the total population of India iin crores according
(c) Per lakh square mile to.2001 Census ?
(d) Per lakh square kilometre [SSC Sec. Off. (Aud.) 2006] (a) 68 (b) 84 (c) 94 ay 102.70
[Bihar SSC LDC 2005; TN PSC(Pre) 2009]
A high growth rate of population is characterised by :
©

(a) High birth and high death rate

ame
‘ 4 19. Which one among the following States has the highest
.b)}> High birth and low death rate
density «off population ?
fay Bihar (b) Kerala
~(c) Low birth and low death rate
(c) Punjab (d) Uttar Pradesh
(d) Low birth and high death rate [SCRA 2005; SSC Grad. 2006]
[SSC Sec. Off, (Aud.) 2006]
20. As per Census 2001, among the following hill States of
9. The most literate Union Territory in India is : India, which. one has the highest literacy rate ?
(a) Delhi (6b) Lakshadweep (a) Arunachal Pradesh by Himachal Pradesh
(c) Chandigarh (d) Pondicherry (c) Sikkim (d) Uttarakhand
[SSC Sec. Off. (Aud.) 2007] [SCRA 2007]
10. Which State of India has the largest area ? 21. Whatis the percentage of India's population
to the world
(a) Uttar Pradesh (b) Madhya Pradesh opulation ?
(c) Maharashtra Ledty rapiethais (a) 6% fay 16% (c) 26% (d) 36%
[SSC Mat. 2008] [RRB Supervisor/IESM (Mumbai) 2006]

ABs i, 0.4)
142 Objective General Knowledge

22. "The least populated State in Indiais :

Wa
(a) “6) Sikkim
(c) Manipur (d) None of these fe) 1921 (b) 1951 —(c):1991 (d) 2001
[RRB Bangaluru Technical Trade 2008] [47th BPSC 2005]
23. Many a times we read about Fertility Rate in economic 33. Which State has the lowest literacy rate
te according to. 2001
“ditérature. What is Fertility Rate? Census report 2 =
“ay” ‘The number of children born to an average woman ~(a) Arunachal Pradesh (b) Madhya Pradesh
during her reproductive years. fc) Bihar (d) Haryana
(b) The total number of children born in a country in a [47th BPSC 2005]
given year divided by number of children died. 34. According to the Census 2001, the density of population
(c) The number of births in a country divided by total in India (per; square kan) iis :
population in a given year “(a) “304 _fb) ee (c) 344 (d) 364
(d) The number of women in the age group of 15-45 {"9.©)}))- 322. [48th — 52nd BPSC 2008]
years inacountry divided by total number of women 35. What is the total population of India according to 2001
died during child birth.[NABARD Bank Officers 2010]
... Census Line
24. Which one of the following pairs is correctly matched ? fa) 1,02,87,37, 436 | (b) 1,02,71,01,012
{ay West Bengal — Highest density of population (ce) 10,12,52,751 (d) None of these
(b) Himachal Pradesh — Highest sex ratio 9e@\| —"
é }
\6
\
tPA ESep, aq}
aM OF [48th - 52nd BPSC 2008]
(c) Uttar Pradesh — Highest percentage of Scheduled 36. Theincrease in literacy rate in India during 1991- 2001 is :
Castes population @) 10.8% &) 12.
| 6% (c) 14.3% (d) 15.5%
- (d) Nagaland — Highest percentage of Scheduled Tribes [48th-52nd BPSC 2008]
population [NDA 2000]
37. The three largest States of India in order of area are :
5. The decadal ¢growth in the population of India during ) Rajasthan, Madhya Pradesh, Maharashtra
.1991- —2001 is
is close - to: (b) Madhya Pradesh, Rajasthan, Maharashtra
(a) 13% (b) 17% fe) 21% (d) 25% (c) Maharashtra, Rajasthan, Madhya Pradesh
€
[CDS 2004]
(d) Madhya Pradesh, Maharashtra, Rajasthan
26. Which one of the following is the correct sequence of [48th-52nd BPSC 2008]
Union Territories of India in the iincreasing ¢order of their, 38., The State jordin the highest density of population is :
area ?. be 03 “Kerala (b) Tamil Nadu
Aha) Lakshadweep—Chandigarh—Puducherry—Andman (c) Uttar Practeshs) d) West Bengal
and Nicobar Island [UP PCS 2002; UP PCS 2003]
(b) Lakshadweep — Chandigarh —Andman and Nicobar
39. Which of the following iismost urbanised State of India ?
Islands — Puducherry
(c) Puducherry—Lakshadweep—Chandigarh—Andman (a) Maharashtra (b) Mizoram
and Nicobar Islands fe) Goa | (d) Tamil Nadu
[UP PCS 2002; UP, PCS Special (Pre) 2004; 47th BPSC 2005]
(d) Puducherry — Chandigarh — Andman and Nicobar
Islands — Lakshadweep [CDS 2007] 40. As per 2001 census, the least density [Link] of
27. Which one of the following States/UTs of the country india icc
“has more than 50% tribal population. of the total fa) Arunachal Pradesh (b) Jammu and Kashmir
«population, 2 (c) Mizoram (d) Sikkim,
[UP PCS 2003; CDS 2005; SSC Grad. 2006]
(a) Andman and Nicobar Islands
~) Dadra and Nagar Haveli 41. Consider the following statements and select correct
(c) Himachal Pradesh answer from the code given below :
(d) Puducherry [CDS 2007] Assertion (A) : China’s growth of population has
28. The percentage of urban population to total population, dramatically slowed down.
in 1 India i1s: Reason (R) Its fertility rate has declined due to one
(a) 2028 (b) 2252 (c) 25.72 4d) 27.80 child per family norm.
[44th BPSC 2001] In the context of above, which one of following is correct ?
29. When did India’s population touch 100 crore mark? Codes:
fa) May, 2000 (b) May, 2001 ) Both Aand Rare true and Ris the correct explanation
(c) May, 2002 (d) May, 2003 of A
[46th BPSC 2004] (b) BothAand Rare true but Risnota correct explanation
of A
30. What is the sex ratio in India,as per Census 2001 ?
f(a) 933 females per 1000 males top?) (c) Ais true but R is false
(b) 945 females per 1000 males GO / 000 (d) Ais false but R is true [UP PCS 2003]
(c) 964 females per 1000 males . 42. According to Census 2001, the second most populous
(d) nee females per 1oue miles aa BPSC ene .. State of the Country iis :
(a) Bihar (b) West Bengal
“tyaa~” ~—=CG i(Ci SC (¢) Maharashtra (d) Rajasthan
[46th BPSC 2004; RRB Mahendru (Patna) TC 2006] [UP PCS 2003]
 Indian Economy 143

43. In which State of India, the sex ratio is more than 1000 :. 54. As per 2001 Census which one of the following is NOT
Ya) Andhra Pradesh “(b) Karnataka a megacity of India a
(cy Kerala he (d) Tamil Nadu “(a) Ahmedabad~ ~~ (b) Chennai
(g0\\— \o@ [UP PCS 2003] (c) Bangaluru e(d) Ranchi
44, According. tcto the 2001 oe Maharashtra has the [UP PCS (Main) 2005]
‘largest urban population and it is followed by: 55. As per 2001 Census the largest number of Million Cities
~(a) Uttar Pradesh and Tamil Nadti i “are in the State of :
(b) Delhi and Punjab (c) Haryana and Gujarat (a) Maharashtra~~ (b) Tamil Nadu
(d) West Bengal and Delhi [UP PCS (Pre) 2004] (c) West Bengal —(d) Uttar Pradesh
45. The State which has the highest percentage of literate [UP PCS (Main) 2005]
unemployed 3in India is : 56. The four most populous States of India are :
(a) Andhra Pradesh (b) Manipur ‘@ Uttar ‘Pradesh, Maharashtra, Bihar, West Bengal
&) Kerala (d) Gujarat (b) Uttar Pradesh, Maharashtra, Rajasthan, Gujarat
[UP PCS (Pre) 2004] (c) Uttar Pradesh, Bihar, Andhra Pradesh, Tamil Nadu
46. Who amongst the following are the most literate iin India, (d) Maharashtra, Karnataka, Madhya Pradesh, Tamil
as per 2001 Census? Nadu [UP PCS(Main) 2005]
(a) Buddhists(b) Christians (€) jains (d) Sikkhs 57. In India, the highest decline in sex ratio during 1991-2001
[UP PCS (Pre) 2004] has been observed in:
47. ie sine ranma. India during. the British period was (a) Haryana (b) Himachal Pradesh
eld [Link] tenure of : ~ (c) Dadra and Nagar Haveli
(a) Lord Dufferin (b) Lord Lytton {dy Daman and Diu [UP PCS (Main) 2005]
<(e) Lord Mayo (d) Lord Ripon 58. In India the highest concentration
of slum population is
[UP PCS Special (Pre) 2004; Utt. PSC (Main) 2006]
‘inthe State of :
48. According toincreasing population, arrangethe following (a) Andhra Pradesh (by Maharashtra
States and find out correct answer from the code : (c) Uttar Pradesh (d) West Bengal
1. Uttar Pradesh -2. West Bengal [UP PCS (Main) 2005; UP PCS (Main) 2007]
_3. Madhya Pradesh A. Maharashtra 59. As_per 2001 Census the female literacy rate was the
Codes: _highest iin the State of :”
(a) 1,234. Bt ea3 © b.B, 1 4: fd) 3,2,4,1 (a) Goa (b) Himacha! Pradesh
[UP PCS (Main) 2004]
(c) Mizoram Ad) Kerala
49, By 2001 literacy average in India touched: [UP PCS (Main) 2005]
Ya) 65.38% of the population 7 PS ol} 94. on ) 60. Which one of the following is the correct ascending order
(b) 75.85 % of the population ~ i of the States in terms of urban population as per 2001
(c) 54.16% ofthe population | Census ?
(d) 57.36% of the population fa) West Bengal, Tamil Nadu, U.P. and Maharashtra
[UP PCS (Main) 2004; SSC Grad. 2006] (b) Andhra Pradesh, Tamil Nadu, U.P. and Maharashtra
50. Which of the following States has shown highest decadal (c) Tamil Nadu, Maharashtra, U.P. and West Bengal
growthof population during |1991-2001 ? (d) Maharashtra, Gujarat, U.P. and West Bengal
fa) Manipur (b) Meghalaya [UP PCS (Main) 2005]
(c) Nagaland (d) Sikkim
61. Consider the following statements and select the correct
| [UP PCS (Main) 2004] answer from the code given below :
51, The correct sequence of metropolitan. cities on the basis of 1. India’s population is characterised by a high growth
population-size, [Link], descendirig, ‘order, as per Census rate.
of 2001, is.:— 2. With the current growth rate it is likely to overtake
“(a) Greater Mumbai, Delhi, Kolkata, Chennai China in the near future.
(b) Kolkata, Greater Mumbai, Delhi, Chennai 3. Out of every six persons of the World one is Indian.
~(e) Delhi, Greater Mumbai, Kolkata, Chennai
4. About 40% of the India’s population is below the
(d) Chennai, Greater Mumbai, Kolkata, Delhi
poverty line level.
[UP PCS (Main) 2004]
Codes: .
52. As rt theCensus of 2001, the least urbanised State of (ay 1,2 and 3 are correct (b) 2,3 and 4 are correct
(c) 1,3 and 4 are correct (d) 1,2 and 4 are correct
“Kru (b) Assam [UP PCS (Pre) 2006]
(c) Himachal Pradesh (d) Uttaranchal
62. Whichone of the following States of India has the highest
| [UP PCS (Main) 2004] literacy.?..
53. Which one of the following statement is true ? (a) Andhra Pradesh (b) West Bengal
(a) As per 2001 Census the population density of India (d) Punjab
Ae) Mizoram -
is 354 person/km? [UP PCS (Main) 2006]
(b) Bihar is the most densely populated State of India
63. Which one of f the following Union Territories
Te ofIndia |has
4«) Uttar. Pradesh has more than twice the population
more females than males ?
density of India
(a) Chandigarh (b) Delhi
(d) Sikkim is the least densely populated State of the
(c) Lakshadweep (dy Puducherry
country | [UP PCS (Main) 2005]
[UP PCS (Main) 2006; UP PCS (Pre) 2009]
144 Objective General Knowledge

64. The highest average annual exponential growth rate in 75. In Indian States the tribal population is largest in :
India’ s population has been recorded during the “decade
c (a) Assam and Tripura
ee. ries (b) Kerala and Tamil Nadu
(a) 1951-61 fb) 1961-71 ¢¢) Madhya Pradesh and Chhattisgarh
(c) 1971-81 (d) 1981-91 (d) Uttar Pradesh and Uttarakhand /UP PCS (Pre) 2007]
[UP PCS (Main) 2006]
76. Arrange the following Indian States in descending order
65. The highest percentage increase in India’s literacy has from urbanisation point of view :
_been observed during : “T> “West Bengal 2. “Tamil Nadu
“(a) 1961-71 (b) 1971-81 3. Maharashtra 4. Gujarat
(c) 1981-91 Sa) 1991 - 2001 Select the correct answer using the codes given below :
[UP PCS (Main) 2006] Codes:
66. The share of million cities to the total urban population (a) 1,2,3,4 (6) 2,3,4,1 (c) 3,4,2,1 (da) 43,21
“of India (2001) is about : [UP PCS (Pre) 2007]
“fay 23 percent (b) 28 percent 77, The decadal growth of urban population (in percent) was
(c) 34 percent (d) 38 percent _ highest in. India during :
[UP PCS (Main) 2006] (a) 1961-71 (b) "1971-81 (c) 1981-91 (d) 1991-2001
67. AccordingtoCensus2001, ,thepercentageoftheScheduled [UP PCS (Pre) 2007; UP PCS (Main) 2009]
Tribes population i in India is : 78. The smallest million city of India is:
(a) 7.20 (b) 7.50 fey 8.20 (d) 8.50 (a) Amritsar “(b) Allahabad
[UP PCS (Main) 2005] “ey Rajkot (d) Vijaywada
68. ,Which one of,the following States is most urbanised as [UP PCS (Main) 2007]
per 2001 Census report ? 79. Which one of the following classes of towns are included
“(a) Gujarat - (b) Karnataka _in the category of small towns by the Census of India ?
fe) Tamil Nadu (d) West Bengal (a) Class VI (b) Class V and VI
[UP PCS (Main) 2006] (c) Class IV, V and VI AG) Class IIL, IV, V and VI
69. Which one of,the following States of India has a million [UP PCS (Main) 2007]
city as per 2001 Census report ? _ 80. Accordingto the 2001 Census report, female male ratio
(a) Assam by Jharkhand in India is : a
(c) Chhattisgarh (d) Orissa (a) 926 : 1000 (b) 930: 1000
[UP PCS (Main) 2006] om 28 | 1000 (d) 934: 1000
70. More than one-third ofIndia’s populationis concentrated S40) © lo@O {oan \
[UP PCS (Main) 2007]
_.in the ‘states of : 81. Which State of India has the largest Muslim population
“{a) Uttar Pradesh, Maharashtra, Bihar accordingto the 2001 census ?
(b) Uttar Pradesh, Bihar, Andhra Pradesh (a) Assam (b) Bihar
(c) Uttar Pradesh, Tamil Nadu, West Bengal _(c) Uttar Pradesh (d) West Bengal
(d) Uttar Pradesh, Maharashtra, Madhya Pradesh [UP PCS (Main) 2007]
[UP PCS (Main) 2006] 82. According the following States which one has the highest
sex ratio, according to 2001 census ? i g
“urban Soe of the country are : (a) Andhra Pradesh _(6) Chhattisgarh
“ay Tamil Nadu, Gujarat, Karnataka (c) Himachal Pradesh (d) Jharkhand
(b) Maharashtra, Andhra Pradesh, Tamil Nadu [UP PCS (Main) 2007]
(c) Uttar Pradesh, Tamil Nadu, West Bengal 83. The State which recorded the minimum population
(d) Maharashtra, Uttar Pradesh, Tamil Nadu growth rate during 1991-2001is :
[UP PCS (Main) 2006] (a) “Andhra Pradesh 4b) Kerala
72. The largest spercen tage share of the Scheduled Castes (c) Tamil Nadu (d) West Bengal
_ population iis [UP PCS (Main) 2007]
“(a) Uttar Pradesh 46) Punjab 84, In which year [Link] regularCensusheld
in India ?
(c) Maharashtra (d) Andhra Pradesh a) 1881 (b) 1911 (c) 1921 (d) 1931
[UP PCS (Main) 2006] Ce ewd mayo? [UP PCS (Main) 2007]
73. About 30.% of India’s area lies in the three states of :
(a) Rajasthan, Uttar Pradesh and Andhra Pradesh “the Great Divide’ with ee to Soares. after which
(b) Madhya Pradesh, Andhra Pradesh and Gujarat “there has been a continuous and rapid growth in India’s
€€) Rajasthan, Madhya Pradesh and Maharashtra ‘population ?
(d) Maharashtra, Andhra Pradesh and Uttar Pradesh "(a) 1911 46) 1921 (c) 1941 (d) 1951
[UP PCS (Main) 2006; UP PCS (Pre) 2009] [UP PCS (Pre) 2009]
74, About one-third of India’s cattle population
is found in 86. As per 2001 Census arrange the following States / Union
three states are = peitine Territories in descending order of population :
fa) “Madhya Pradesh, West Bengal and Uttar Pradesh (a) Chandigarh — Puducherry — Sikkim —- Mizoram
(b) Bihar, Maharashtra and Uttar Pradesh (b) Chandigarh — Puducherry — Mizoram — Sikkim
(c) Punjab, Orissa and Rajasthan , Ac) Puducherry — Chandigarh — Mizoram — Sikkim
(d) Andhra Pradesh, Karnataka and Rajasthan (d) Puducherry — Chandigarh — Sikkim — Mizoram
[UP PCS (Main) 2006] [UP PCS (Pre) 2009]
 Indian Economy 145

87. Thepercentage of urban [Link]

India according 95. Which of the following States in India is the smallest in
to Census 2001,.is : terms of population ?
a) 20.8 (b) 25.7 (ec) 27.3 (d) 27.8 (a) Karnataka (b) Madhya Pradesh
[UP PCS (Pre) 2009] (c) Tamil Nadu (da) Orissa /Utt PSC(Pre) 2006]
Match List-I (Feature) with List-II (State) and select the 96. States with the highest and lowest [Link] population
correct answer by using the codes given below the lists: in
‘in IIndia ar respectively :
List-I List-II
(a) “Uttar Pradesh and Arunachal Pradesh
A. Most urbanised State 1. Delhi
by West Bengal and Arunachal Pradesh
B. State having largest urban 2. Arunachal Pradesh
(c) Uttar Pradesh and Sikkim
population
C. Most densely populated State 3. Maharashtra ') West Bengal and Sikkim [MP PSC (Pre) 2008]
D. Least densely populated 4. Tamil Nadu 97. ich of the following States has the literacy rate lower
State fea the national average ?
Code: A B @ D “ (a) Karnataka West Bengal
(a) 1 2 3 4 ey Andhra Pradesh (d) Maharashtra
(b) 4 3 2 1 [MP PSC (Pre) 2009]
(c) 3 2 1 4
98. In which State is the female literacy lowest?
{d) 4 3 1 2 [UP PCS (Pre) 2009] #a@) Bihar (b) Jammu and Kashmir
89. Arrange the following States of India in descending order (c) Rajasthan (d) Orissa [RAS/RTS 2003]
of their population density (2001). Use the codes given
_ below to select the correct answer : 99. The population growth rate in India is :
1. Bihar 2. Kerala (a) Increasing (b) Remaining constant
3. Uttar Pradesh 4. West Bengal _fey Declining (d) Zero {WB PSC (Pre) 2008]
Codes : , 100,The State with the second largest populationin Indiais :
(a) 1.3.24 () 413,202) 41,23 (d) 241,3 (a) Madhya Pradesh 4b) Maharashtra
fUP PCS (Main) 2009] (c) Uttar Pradesh (d) West Bengal
90. Which one of the following States has the highest female [WB PSC (Pre) 2008]
literacy rate as per Census 2001 ? [Link] density of population (2001 Census) found in:
fa) Chhattisgarh” (b) Madhya Pradesh (a) Kerala’ fb) West Bengal
(c) Rajasthan (d) Orissa [Utt. PSC 2005]
(c) Maharashtra (d) Uttar Pradesh
91. As per the Census 2001 the most urbanised State of India [WB PSC(Pre) 2008]
is:
(a) Gujarat (b) Punjab -[Link] lowest female ratio to males among the Statesisin:
(c) Maharashtra fd) Tamil Nadu (a) Arunachal Pradesh (b) Tripura
[Utt. PSC (Pre) 2005] _fc) Sikkim (d) Manipur
. The. highest and lowe rowth rate _of population [WB PSC (Pre) 2008]
achieved during 1991-2001 was in: 103.India_is regarded as_a country with ‘Demographic
eta) Nagaland and Kerala (b) Mizoram and Kerala Divide’. This is due to:
(c) Uttar Pradesh and Kerala (d) Bihar and Delhi (a) Its high population in the age group below 15 years
[Utt. PSC (Pre) 2005] 46) Its high population in the age group of 15-64 years.
93. Whatis the correct sequence of the most populous States (c) Its high population in the age group above 65 years.
of hiIndia according to Census data. of 2001 ? (d) Its high total population. [UPSC 2011]
“(a) Maharashtra, Madhya Pradesh, Uttar Pradesh 104,Consider the following specific stages of demographic
(b) Bihar, Uttar Pradesh, West Bengal
_transition associated with economic ‘development =”
(c) Uttar Pradesh, West Bengal, Bihar
1. Low birthrate with low death rate
(d) Uttar Pradesh, maharashtra, Bihar /U#t. PSC (Pre) 2005}
2. High birthrate with high death rate
94. Which of the following is NOT an effect of population
3. High birthrate with low death rate
growth in India ?
(b) Increase in population
Select the correct [Link] the codes given below :
(a) Increase in food
(c) Reduction in cultivable land (a).1,2,3 (b)..2.1,3
-(d) Increase in wild life [Utt. PSC (Pre) 2005, 2006] kc) 2,3,1 (d) 3,2,1 [UPSC 2012]
 146 Objective General Knowledge

a Natural Resources of India

(Land, Forest, Minerals etc.)
1. Which State in India is estimated to have the largest coal 13. Assertion (A): Chhotanagpur region has the largest
reserves in India ? reserve of coal in India.
(a) Bihar (by Jharkhand Reason (R) ; Chhotanagpur is a plateau region.
(c) Madhya Pradesh (d) Orissa Codes: :
[SSC Grad. 2001; SSC Tax Assit. 2008] (a) Both Aand Rare true and Ris the correct explanation
2. Where is the Forest Reserve Instituteof India located ? of A
fay Dehradun (b) Bhopal 46) BothAand Rare true but Ris notacorrect explanation
(c) Lucknow (d) Dethi of A
[SSC Grad. 2003; WB PSC (Pre) 2007; MP PSC (Pre) 2009] (c) Ais true but R is false
3. Singhbhum is famous for : (d) Ais false but R is true [SCRA 2003]
(a) Coal +b) Iron 14. In India, the State known for its sandalwoodis :
(c) Copper (d) Aluminium fa) Karnataka” =o (b) Assam
[SSC Grad. 2003] (c) Kerala (d) West Bengal
_Sundarbans of Eastern India is an exampleof : [RRB Bangaluru Technical Trade 2008]
>

(a) Forest Ecosystem by Mangrove Ecosystem 15. The world’s largest Railway Platform is at:
(c) Grassland Ecosystem (d) Marine Ecosystem. (a) Talchar (b) New York
[SSC Grad. 2004] fey Kharagpur (d) None of these
5. Which one among the following is a_“Hot Spot’. for [RRB Bangaluru Technical Trade 2008]
biological diversity in India ? 16. Where is the Rail-wheel Factory situated ?
(a) Western Ghat fey Sundarban | (a) Srirangpattam (b) Gulbarga
(c) Chilka Lagoon (d) Eastern Ghat (c) Hampi 4d) Yelahanka
[SSC Grad. 2004] [RRB Bangaluru Technical Trade 2008]
6. The largest river of Penisular India is : 17. Which among the followingis an international river ?
(a) Narmada by Godavari (a) Brahmaputra (b) Cauvery™
(c) Mahanadi (d) Cauvery (c) Krishna (d) Narmada
[SSC Grad. 2004] (e) Mahanadi [SBI Clerk 2008]
EE Match the Dams and the States in which they are situated: 18. The Government of India has decided to declare which
List-J (Dam) List-II (State) of the following rivers a “National River’ ?
A. Tungabhadra 1. Kerala 4a) Ganga ——(b) Yamuna
B. Lower Bhawani 2. Andhra Pradesh (c) Brahmaputra (d) Kaveri
C. Idukki 3. Tamil Nadu (e) None of these [Canara Bank PO 2009]
D. ie ie Sagar 4. Karnataka
19, Gold Mines in India are located mainly at:
Code: B C D a)
a) Kolar (b) Raniganj
(a) a 2 4 1 (c) Jadugoda (d) Veeranam
(b) 2 4 3 1
fy A 3 1 2 (e) None of these [Canara Bank PO 2009]
20. The Buckingham Canal, which has been declared a
(d) 1 4 2 3 [SSC Grad. 2004]
National Waterway of India recently, is a canal running
g. Which one of the following is the highest gravity dam :
from :
(a) Beas Dam ‘(by Nangal |Dam
(a) Punjab to Haryana (b) Mumbai to Goa
fey Bhakra Dam (d) Hirakud Dam
4cY Vijayawada to villupuram
[SSC Grad. 2005]
(d) Cochin to Kozhikode
9. What is the longest irrigation canal India called ? (e) Kanyakumari to Rameshwaram
(a) Yamuna canal (b) Sithind canal
[Indian Overseas Bank PO 2009]
fe} Indira Gandhi Canal
21. Among the following: rivers which one is the et ?
(d) Upper Bari Doab Canal [SSC Grad. 2005]
a) Godavari — (b) “Krishna _
10. Nuclear energy is a mineral-based energy source. St is_ (c) Narmada (d) Yamuna [CDS 2003]
_derived front:
22, Which one of the following is_the central_theme
of the
“(ay Uranium (b) Thorium
Sua Movement, started by. Sunderlal Bahuguna in
(c) Plutonium 4d) All of these
[SSC Tax Assit. 2008]
(a) Conservation of river water
11. When was the first National Forest Policy issued by the (b) Protection of birds
_Government of India’ 2 (c) Protection of cheetals
(a) 1940 (b) 1942 fey 1952 (d) 1999 ¢d) Conservation of forests [CDS 2010]
[SSC Sec. Off. (Aud.) 2008]
23. The Korba coalfield is located in :
42. Major coalfields of India [Link] valley of :
(a) Orissa’ fb) Chhattisgarh
. Damodar (b) Godavari
(c) West Bengal (d) Assam
(c) Mahanadi (d) Wardha [SCRA 2001] [44th BPSC 2001]
 Indian Economy 147

24. The national forest policy aims at maintaining how much 26. The ‘Red Data Books’ published by the International
of the total geographical area ‘under forests: — Union fox
for Conservation of Nature an Natural IResources
(a) Half “4b) One-third (({UCN ) contains lists of :
(c) One-fourth (d) One-fifth "I. Economic plant’and animal species present in the
[UP PCS 2002] biodiversity hotspots
25. Theminimum forestcover-to
maintain ecological balance ,2 Threatened plant and animal species
in the plains is : 3.- Protected sites for conservation of Nature and natural
(a) 25% (bx) 33% resources in various countries
(c) 40% (d) 50% Select the correct answer using the codes given below :
[MP PSC (Pre) 2009] (a) land3 (6) 2 only (c) 2and3 (d) 3only
[UPSC 2011]

—. Infrastructure
(Energy, Transportantion, Communication etc.)
i. When was the first train steamed off in India ? 8. The Tehri Hydro Power Complex is located in the State
(a) 1848 ~ 6) 1853 (c) 1875 (d) 1880 of :
[SSC Grad. 2002] <a) Uttarakhand (b) Uttar Pradesh
2. _Where was electricity supply first introduced in India ? (c) Himachal Pradesh (d) Sikkim [SSC Grad. 2006]
' (a) Kolkata =(b) Darjeeling 9. Which of the following produces maximum crude
(c) Mumbai (d) Chennai ‘petroleum i in India at present ?
[SSC Grad. 2002] (a) Assam (b) Gujarat
3. Which is fastest running. [Link]
Indian railways ? fc) Off-chore Bombay High (d) Coastal Tamil Nadu
(a) Mumbai -— Goa Superfast Express [SSC Sec. Off (Aud.) 2007]
(b) New Delhi— Lucknow Shatabdi Express 10. Which orfe « of the following isis ah abiotic and renewable
&c) New Delhi — Mumbai Rajdhani Express _fesource va
(d) New Delhi — Chandigarh Shatabdi Express “a) iron ore (b) livestock (ec) water “@ fareets
[SSC Grad. 2003] [SSC Grad. 2008]
4. Which from the following towns is NOT on the Golden 11. Which kind ofpower
accounts for the largest share of
Quadrilateral being sreated a the roads-infrastructure power generation in India ¢
of the country.?.. (a) hydro-electricity 4b) thermal
“tay Ajmer (b) Ahmedabad (c) nuclear (d) solar
ce) Jabalpur (d) Gaya [SSC Grad. 2003] [SSC Grad. 2008; UP PCS (Main) 2008]
5. Which of the following towns_is NOT on the Golden 12. The train service Thar Express between India and
Quadrilateral being created for the roads-infrastructure Pakistan, originates | in India from:
‘of the ccountry ? (a) Jaisalmer (b) Jodhpur (c) Bikaner éd) Barmer
(a) Chennai (b) Hyderabad [SSC Tax Assit. 2009]
(c) Visakhapatnam (d) Bhubneshwar 13. oe one of the following National Highways
is the
[SSC Grad. 2003] ongest : ?
6. Which of the following is correctly matched with regard 5 NH-2 fey NH-7 (c) NH-8 (ad) NH-15
to thermal power projects ? [SCRA 2005]
“(a) Korba — Uttar Pradésh 14. The
ake money. which Government of India spends on the
(b) Ramagundam — Tamil Nadu
(c) Talchar — Andhra Pradesh ae of the following” sources °? [Pick up » the correct
Ad) Kawas — Gujarat [SSC Grad. 2004] statement(s).]
ere the dams and States in which they are situated : <I’ Loan from World Bank/ ADB etc
Dam State II. Taxes collected from the people
. Hirakud 1. Chhattisgarh eT Loan from RBI
B. Mettur 2. Orissa (a) OnlyT (b) Only I
C. Mahanadi 3. Karnataka (c) Only II (d) Both land II
D. Almatti 4. Tamil Nadu fe) Alll, Iand Il [SBI Associated Bank Clerk 2008]
Code: A B ce D 15. Which of the following sectors is. NOTconsidered
(a) 38 2 4 1 “Infrastructure Sector’ ?
<b) 2 4 1 3! (a) Software — (b) Cement
(c) 1 3 2 4 (c) Petroleum (d) Steel
(d) 4 1 3 2 [SSC Grad. 2004] (d) Power generation [SBI Clerk 2008]
148 Objective General Knowledge

16. Which of the following programme is launched to *(@) New Delhi -— Lahore (b) New Delhi — Wagah
develop basic infrastructure in ‘the: country ? (c) Amritsar — Wagah (d) Amritsar — Lahore
(@y Bharat Nirman Programme — (e) New Delhi — Islamabad [Andhra Bank PO 2007]
(b) Technical Mission 25. Bharat Nirman Programme does not cover which of the
(c) Special Economic Zones following aareas ?
(d) National Rural Employment Guarantee Act (a) Rural housing (b) Rural water supply
(e) None of these [Bank of India Clerk 2008] (c) Irrigation facilities «dy Rural Employment
17. Many times we read in financial newspaper about the [Indian Overseas Bank PO 2009]
performance of the Core Sectors in Economy. Which of 26._As per the news reports, MTNL recently launched its 3G
the following is NOT included in the core sector of the “services and became the first telecom operator to launch
same ? ‘the same in India. What is the full form of ‘G’ in 3G ?
(a) Coal (b) Cement (a) Global (b) Generation” ‘
(c) Steel (c) Growth (d) Gravity
(d) Oil and petroleum sector (e) None of these [United Bank of India PO 2009]
(ey Auto sector [SBI Clerk 2009]
27. The facility which allows mobile subscribers to switch
18. Which of the following programmes was launched in from._one [Link]-another without changing
2005 — 06 an
yee
for creating infrastructure and [Link] their mobile number is known as Mobile Number ......
in rural parts of our country ? (a) ‘Promatability (b) Protectability
“(ay Janani Suraksha Yojana (b) Sarva Siksha Abhiyan (¢) Portability (d) Permeability
(c) National Rural Employment Guarantee Scheme
- (e) None of these [Andhra Bank PO 2009]
(d) Swarnjayanti Shahari Rozagar Youjana
fey Bharat Nirman Programme [SBI Clerk 2009]
28. As per the newspaper reports, the Government of India
made an auction of the third Generation (3G) Spectrum
19. The Government of India recently decided to create a
Tecently. Which of the following ministries was actively _
“Specific Financing Window’
Y forits’Mega Bharat Nirman
involved in the process?
rogramme’. This specific: financing window
v willoperate
(a) Ministry of Heavy Industries
wthrough: (b) Ministry of Science and Technology
(a) SIDBI 6) NABARD (c) Ministry of Commerce
(c) SBI
(d) Ministry of Foreign Affairs
(d) A group of selected Co-operative Banks
fey Ministry of Communication and Information
(e) None of these
[Bank of Maharashtra Specialist Officer 2006] Tchnology [SBI PO 2010]
20. Which of the reer is a programme under which 29. Which of the following is/are considered
a Renewable
Source
of energy ? ie
(a)
(a) MPLADS”~ “(by Kutir Jyoti _i Wind Energy
(c) Ganga Kalyan Yojana (d) Sangam Yojana 2 Solar Energy
(e) None of these 3. Nuclear Energy
[Corporation Bank PO 2006; LIC ADO 2007] (a) Only 1 (b) Only 2
21. Which of the following is NOT one of the core areas (c) Only 3 4d) Only 1 and 2
identified under the Bharat Nirman |Programme Sil (e) All1,2and3 [Central Bank of India PO 2010]
(a) ItIrrigation (b) Rural electrification 30. The Indian Railwaysis in the process of purchasing Bullet
(c) Drinking water supply (d) Rural housing © Train Technology from which of the following nations ?
(e) Computer education in schools (a) France b) China (c) Japan
[Andhra Bank av 2006] (d) Russia (e) Spain [Corporation Bank PO 2010]
31. Which one of the following was the [Link] the
Committee on Pricing and. Taxation. of Petroleum
eee ee sectors ?, .Products.?......
(a) Transport (b) Travel and Hanae (a) RajaJ. Chelliah ) C. Rangrajan
(c) Technical Education fd) Telecom (c) Y¥.V. Reddy (d) Abid Hussain
(e) None of these [CDS 2007]
[Andhra Bank IT Officer 2007; Bank of India Clerk 2008]
32. Which one of the_following is the oldest. oil tefinery in
23. The Finance Minister of India recently made a mention, India?
ihat Infrastructure! Developmentii in India should be done “(a) Digboi (b) Koyali
on PPP mode only. “What iis ‘the full form of PEP 2 r (c) Haldia (d) Mathura [cps 2008]
“fay “Public Private Partnership
(b) Purchasing Power Parity
(c} Purchase Produce Provide
(d) People’s Programme and Priority
(e) None of these [Andhra Bank PO 2007]
(b) Sachay Committee
4, ‘Samjhauta Express’ runs between which of the following (c) B.N. Srikrishna Commission
two stations. ?.. a (d) M. Veerapa Moily Commission [CDS 2009]
 Indian Economy 149

34. The concept of sustainable development relates to : Codes:

(a) Consumption levels — (b) Exhaustible resources (a) land 2 only (b) 1,2 and 4 only
~(e) Intergenerational equity (d) Social Equity /CDS 2010} dc) 1,2 and3 only (d) All of these
[UP PCS (Pre) 2009]
35. Which is NOT the Economic
Infrastructure ?
(a) Roads (b) Railways 44. The nodal agency for implementating the ‘Rural
(c)} Education and Health (d) Power /46th BPSC 2004] Infrastructure
Development Fund Programmes’ is :
(a- NABARD (b) State Bank of India
*. The first electric train (Deccan
Queen).of
India .[Link] (c) State Co-operative Bank (d) Reserve Bank of India
— between; ‘UP PCS (Main) 2009]
(a) Kalyan and Pune (b) Mumbai and Surat
ari
(c) Howrah and Delhi (d) Delhi and Chennai @) Infrastructure paren
37. Zhe Rural InfrastructureFund set up in 1995-96, is (b) Foodgrain production self sufficiency
maintained byt the : (c) Family Welfare programme
(a) Reserve Bank of India (b) State Bank of India (d) None of these [Utt. PCS (Pre) 2006]
_{ey National Bank for Agriculture and Rural Development 46. Bharat Nirman includes:
(d) Regional Rural Bank [UP PCS (Main) 2004] 1. Bringanadditionalonecarorehectares under assured
38. Bharat. Nirman Scheme of the UPA Government
does irrigation
-NOT include : 2. . To provide road connectivity to all villages that have
(a) Rural Water Supply Project a population of 2000
(b) Irrigation Benefit Programme 3. To give telephone connectivity. to the remaining
(c) Rural Electrification
villages
Select the correct answer from the codes given below :
4d) Sarva Siksha Abhiyan [UP PCS (Pre) 2006] Codes:
39. Consider the following statements : (a) 1 and 2 are correct fb) 1 and 3 are correct
1. Prime Minister Dr. Manmohan Singh launched the (c) 2 and 3 are correct (d) None of these
Jawahar Lal Nehru Urban Renewable Mission in [MP PSC (Pre) 2008]
: December 2005. 47. Bharat Nirman Plan is associated
with developmentof :
2. The Mission will have a initial corpus of ~ one lakh ‘(a) Urban infrastructure (b) Rural infrastructure
carore. (c) Information Technology (d) Bridges arld Roads
3. Initially only 28 State capitals will benefit from the [RAS/RTS 2007]
Mission. AB) stuns is NOT a Nuclear Power Centre
4. The Mission aims to poe food for work to the (a) Narora (b) Kakrapara
urban poor. {ec} Chamera (d) Kota /WBPSC(Pre) 2007]
Which of the above statement (s) is/are correct ? 49. Hydel power potential is the highest in case of ......
(a) 1 and 3 only <b) 1 and 2 only (a) Brahmaputra basin (b) Ganga basin
(c) 1,2 and3 only (d) All the four (c) East flowing rivers of South India
[UP PCS (Pre) 2006] 4a) West flowing rivers of South India /WB PSC(Pre) 2007]
40. Bharat Nirman Programme creation of : 50. The Oil and Natural Gas Commission (ONGC) was-set _
(a) 10 million additional job during 2008-09 up in:
-(6) 10 million hectares of additional irrigation during fay 1956 (b) 1957 (c) 1959 (d) 1961
2005-09 [TN PSC (Pre) 2009]
(c) 1 lakh kilometres of rural roads during 11th Plan. 51. With which one of the following has the B.K. Chaturvedi
(d) LT. Park in all districts of the country during 11th Committee dealt ?
Plan [UP PCS (Main) 2006] eview of Centre-State relations
(b) Review of Delimitation Act
41. Which of the following is NOT a component-of Bharat
(c) Tax reforms and measures to increase revenues
Nirman Programme ?
4d) Price reforms in the oil sector [UPSC 2009]
a) Agro-based industries (b) Rural electrification
(c) Rural housing (d) Rural telephony 52. Which one of the following brings out the publication
[UP PCS (Main) 2008] called ‘E:
‘Energy Statistics’ [Link]-to-time? ~
(a) Central Power Résearch Institute
42. Which of the following is NOT covered under ‘Bharat (b) Planning Commission
Nirman’ ? (c) Power Finance Corporation Ltd
“(ay Rural Housing (ey) Rural Hospitals (d) Central Statistical Organisation [UPSC 2009]
(c) Rural Water Supply (d) Rural Electrification
53. Among other things, which one of the following was the
[UP PCS (Main) 2008]
purpose for which the Deepak Parekh Committee was
43. Which of the following items of works are included in constituted ?
Bharat Nirman ? Find your answer with the help of given (a) To study the current socio-economic conditions of
codes. certain minority communities
1. Accelerated irrigation benefits programme {b) To suggest measures for financing the development,
2. Inter-linking of River Projects of infrastructure
3. Scheme for repair, renovation and restoration of (c) To frame a policy on the production of genetically
water bodies : modified organisms
4. Rhabiliation of displaced persons due to irrigation (d) Tosuggest measures to reduce the fiscal deficit in the
projects Union Budget [UPSC 2009]

149
150 Objective General Knowledge booksZoll. blogspot.
54. In the context of India’s Five Year Plans, a shift in the present use.
attern of industrialisation, with Tower emphasis on 2. Most of the power plants in India are coal-based and
heavy industries and more on infrastructure begins 1in: they are not able to get sufficient supplies of coal from
(a) Fourth Plan ~ b) Sixth Plan withing the country.
(c) Eighth Plan (d) Tenth Plan /UPSC 2010] 3. Steel companies need large quantity of coking coal
55. Despite having large reserves of coal, why does India which has to be imported.
import millions of tonnes of coal ? Which of the statements given abvoe is/are correct ?
1. Itis the policy of India to save its own coal reserves (a) 1 only b) 2 and 3 only
for future, and import it from other countries for the (c) land 3 only (d) 1,2and3 /[UPSC 2012]

6 @ 7. (6)
—@) 33. (a) Q

=7. Social Sectors

(Poverty, Unemployment, Development & Employment Programmes,
nadine Growth, Human Development etc)
9. Which one of the following types of unemployment is
“(a)
(a) Deflationary ‘conditions (be) “Heavy oe bias common in Indian agriculture ?
(c) Shortage of raw materials 48) Seasonal “~"(b) Disguised
(d) Inadequate productive capacity [SSC Grad. 2000) (c) Frictional (d) Structral
[SSC Tax Assit. 2009]
2. The standard_of living in a country..[Link].
by
TES 10. implementation
The of Jawahar Rojgar Yojana rests with :
(a) Poverty Ratio (by Per Capita Income a) Gram Panchayat (b) District Collector
(c) National Income (d) Unemployment Rate (c) State Government (d) Union Government
[SSC Grad. 2001] [SSC DEO 2009]

3. Which plan gave emphasis on removal of poverty for the 11. The Government has renamed. [Link] and the
first time? name associated with the scheme is that of :
(a) Fourth _(by Fifth (c) Sixth (d) Seventh vay "Rajeev Gandhi (b) Indira Gandhi
[SSC Tax Assit. 2008] _{e) Mahatma Gandhi (d) Jawahar Lal Nehru
[SSC Sec. off. 2010]
4, NREG e abbreviated form of :
(a} National Rural Employment Guarantee Programme 12. In India, the Community Development Programme was _
(b) National Rural Educational Guarantee Programme started on:
(c) National Rapid Educational Guarantee Programme a) October 2, 1952 (b) October 2, 1957
(d) National Rapid Employment Generation Programme (c) October 2, 1959 (d) October 2, 1961
[SSC Tax Assit. 2008] [Bihar SSC oe _ ]
5. When was the Jawahar Rojgar Yojana launched ? eeenen

(a) 1985 (b) 1987 4c) 1989 (d) 1991 rimarily to:
SSC Sec. Off. (Aud.) 2008] (a) to bring development among people by raising the
literacy level
6. Which is NOT the objective of Public Procurement and
Distribution System followed by Indian Government ?
Ae) bring about overall development of the village
(a) Maintain price stability through creation of buffer
through self-help
(c) increasing the control of the masses over the locally
stocks
available resources
(b) Protect the interests of both consumers and poor
(d) increase agricultural production through
farmers
4e) Control the production of food grains
mechanised farming [SCRA 2000]
(d) Reduce personal and regional inequality in the 14. Consider the followingindicators :
distribution [SSC Sec. Off, (Aud.) 2008] AR Life. expectancy at birth H. Adult literacy rate
Ill. Infant mortality rate
7. Asituation where we have people whose level of income
is not sufficient to meet_the_ minimum consumption apes of these are taken into account while preparing
_expenditure is considered as: the Human Development Index in India ?
“fe Absolute Poverty — (b) Relative Poverty fay Land Il (b) Land III
(c) Urban Poverty (d) Rural Poverty (c) and I (d) I, Wand Il /scra 2000]
[SSC Tax Assit. 2009] 15. enon ms romain = pullebe Sbhiven
8. _ Nature of unemployment in agriculture in India is : 2source
rce Development is tO
wey) seasonal (6) disguised . provide :
fe) ‘both 'a' and 'b' (d) None of these (ay~ elementary education to all
[SSC Tax Assit. 2009] (b) elementary education to all the girls
 Indian Economy 151

(c) elementary education to all the minority groups 25. Which of the following represents 'T' in the abbreviation
(d) elementary education to all in the North-Eastern IRDP ?
Jae of ai country ae SCRA a fa) Integrated (b) Indian (c) Insurance
(d) Important (e) Internal [LIC ADO 2007]
26. Which of the following is_the scheme for which entire
4) school going children premium of the assured person is paid by the > Central
(c) daily wage employees / labours Government ?
(d) labours engaged in jobs in unorganised sectors (a) Swarnjayanti Gram Swarojgar Yojana
(e) girls who are residing in girls/ youth hostels (b) Jawahar Bima Yojana (ge) Shiksha Sahyog Yojana
[Bank of India Clerk 2008] (d) Krishi Shramik Samajik Suraksha Yojana
17. Sarva Siksha Abhiyanis aimed at the education of which (e) None of these [LIC ADO 2007]
of the following ? 27. Which of the following is a project to develop watersheds
(a) Engineering and technical education _inIndia ?
(b) Education of girls upto graduation level (a) DRDO (b) CARE (c) AVARD
(c) College education (d) Adult education 4d) NWDPRA__ (e) ~1None of these [OBC PO 2008]
e} Education of children between 6 - 14 years 28. Which of the following indexes is developed to measure
[Bank of India Clerk 2008]
life expectancy, level of literacy, education and standard
18. Which of the following is true about the National Rural of living of people in Lacountry ? 00
Employment Guarantee Act (NREGA) ? (a) Inflation” ~(b) Sensex (c) SLR
1. Itis applicable in 100 rural district. 4d) Human Development Index (HDI)
2. It gives a guaranteed employment of 100 days at (e) None of these [Vijaya Bank PO 2008]
all those who are eligible for the same and are also 29. Whichof the following schemes is designed and launched
willing to take it. to improve the living standards of urban poor ? |
3. This act is applicable only, for men between the of 1. Accredited Social Health Activist (ASHA)
21-65. Women do not get the benefit of the same. 2. Janani Suraksha Yojana (JSY)
(a) only 1 -b) only 2 (c) only 3 3. Valmiki Ambedkar Malin Basti Awas Yojana (VAMBAY)
(d) All1,2and3 (e) None of these/SB/ Clerk, BOI PO 2008]
(a) Only 1 (b) Only 2 (c) Only 3
19. Whichof the following schemes was launched too promote (d) All1,2and3 (e) None of these [UBI PO 2008]
basic education in India and _attract ‘children iin_school 30. Which of the following is NOT a social sector programme
Soing age to attenddthe classes ? of the Government of India? ~~
“(ay Pulse Polio Abhiyan —_(b) Operation Flood (a) Mid-Day Meal Scheme (b) Sarva Siksha Abhiyan
-(c) Mid-Day Meal Scheme (d) Operation Black Board (c) National Rural Health Mission
(e) None of these /SBI Clerk 2008; Bank of India PO 2008]
(d) Integrated Child Development Services
20. Which _of the following is NOT a social development 4e) Look East Policy [Union Bank of India PO 2008]
scheme launchedd by the ‘Government of India ?
51. per
As | the recent reports published in newspapers/
“(a) ‘Indira Awas \Yojana (b) ‘Kutir Jyoti
magzines, India ranks at a lower level in ‘Hunger Index.
(c) Operation Black Board (d) Mid-Day Meal Scheme
The Hunger Indéxis measured on which of the following
4e) Look East Policy [SBI Clerk 2009]
indicators ?
21. Which of the following schemes was launched to provide ~ No. of people who are calories-deficient
cooked food to school going children in India so that they 22 Child malnutrition
are motivated to come to school regularly ? _% Rate of child mortality 4. Rate of literacy
(a) Right To Education (b) Food for Work Scheme (a) only 1 and 2 (b) only 3 and 4
~¢c) Mid-Day Meal Scheme (d) Annapurna Scheme Ac) only 1,2 and3 (d) All1,2,3 and 4
(e) None of these [United Bank of India Clerk 2010] (e) None of these [Canara Bank PO 2009]
22. Whichofthefollowing programmesisbeingimplemented 32. Which of the following schemes launched by the
' by the National Bank for Agricultural and Rural Governmofent India provides a guarant100 days
eed
Development (NABARD) ?
(a) Prime Minister's Rojgar Yojana (PMRY)
employment to rural employment-ssekers in India ?
(a) Bharat Nirman
(b) Swarnjayanti Gram Swarojgar Yojana (SGSY) (b) Swarnajayanti Grameen Rojgar Yojana
(c) District Rural Industrial Project (DRIP) 4e) National Rural Employment Guarantee Act
(d) Rural Employment Generation Programme (REGP) (d) National Food for Work Programme
(e) None of these [Central Bank of India PO 2006] (e) None of these - [Canara Bank PO 2009]
23. The Mid-Day Meal Scheme
has been launched
by the 33. Which of the following two programmes are the parts
Union Minister of : of the National Soci i
(a) Home Affairs (b) Social Welfare Government of India ?
{e) Human Resource Development 1. Indira Awas Yojana & Pradhan Mantri Gram Sadak
(d) Rural Development (e) None of these Yojana
{JOB PO 2006]
2. National Food for work & Mid-Day Meal Scheme
24. STEP is the abbreviated name of the welfare programme NationalOld Age Pension Scheme & National Family
‘tohelp: Benefit Scheme
(a) Children (b) Women (c) Farmers (a) Only 1 (b) Only 2 fe} Only 3
(d) Senior Citizens (e) Ex-Servicemen [TOB PO 2006] (d) Bothland2 (e) All1,2and3 [Canara Bank PO 2009]
152 Objective General Knowledge

34, Which of the following programmes was launche Which of the above is/are the parameters for the measurement
tackle special problems faced by those areas Wich ai of Human Development Index (HDI) by UNDP ?
affected by drought conditions frequently ig (a) 1 only (b) 2and3
Jesért Development Programme ~ (c) 1,2and3 4a) 1,2,3 and 4/CDS 2005]
2 Drought Prone Areas Programme 44, Consider the following statements :
<3: Watershed Development Programme 1. Indira Awas Yojana seeks to provide shelter to rural
(a) Only 1 (b) Only 2 (c) Only 3 household living below the poverty line.
(d) Bothland2 fey All 1,2 and 3 {Canara Bank PO 2009] 2. Allotment of house under Indira Awas Yojana is
35. Many times we see in newspapers that some projects are made only in the name of female member of the
launched by the government authorities on 'PPP" basis. household.
Whatis the full form of "PPP"? Which of the statements given above is/are correct ?
4a) 1 only (b) 2 only
(c) Partial Payment Project (d) Popul Private elect (c) Both 1 and 2 (d) None [CDS 2005]
(e) Public Private Plan. /Indian Overseas Bank PO 2009] 45. What is Vande Mataram Scheme ?

63 Which of the following schemes is NOT a part of National

Social Assistance Programme ?
(a) Ascheme to encourage > youth to join defence forces
_b) An initiative in public-private partnership to reduce
1. National old Age Pension Scheme maternal mortality
2. National Family Benefit Scheme (c) A new strategy included in the revised family
8 Services for the Poor Programme planning programme to put emphasis on saving
(a) Only 1 (b) Only 2 -e) Both 1 and 2 pregnant women from HIV/AIDS
(d) Both2and3 (e) None of these (d) A scheme sponsored by the Union Government to
[Andhra Bank Marketing Associate a provide old age homes to the destitute and poor old
37. Which of the following is NOT_a_ social progra women [CDS 2006]
launched by the Governmentofsf India ? 46. Consider the following :
(a) Sarva Shiksha ‘Abhiyan (b) NREGA 1. Indira Awas Yojana
(c) Mid-Day Meal Scheme 2. Swarnjayanti Gram Sadak Yojana
(d) National Rural Health Mission _3. Pradhan Mantri Gram Sadak Yojana
fe) Overseas Indian Citizenship Scheme 4. Sampoorna Grameen Rojgar Yojana
[Andhra Bank Marketing Associate 2009] Which one of the following is the correct chronological
38. Which of the following is the name of the organisation, order of the above Yojana ?
created to ) provide full employment. and ‘self- reliance” to @ 123.4 (b/)2,13,4 () 1243 (d)2143
thé women folk in India ? ~~~ [CDS 2007]
(a) OECD (b) ROSCA (c) SVP 47. The major thrust of Jawahar Rojgar Yojana (JRY) is on:
(d) USO 4e) SEWA [RBI Grade B Officer 2009] (a) providing training to rural youth for self-employment
39. Which of the apes SRE eyeeoaee is ) creating additional wage employment opportunities
in rural areas
(c) creating employment opportunities in urban areas
“@) RBI (b) SIDBI {ec} NABARD (d) removal of poverty among the Scheduled Castes in
rural areas [CDS 2010]
(d) SEBI (e) None of these /NABARD Bank 2010]
40. Whichof the following ministries haslaunched Integrated 48. Main objective of IRDP. is :
(a) EExport Promotion (b) Banking Reforms
Wastelands Development Programme (IWDP) ?
) Rural Development and Poverty Alleviation
(a) Ministry of Rural Development
— Sound Fiscal Management [45th BPSC 2002]
(b) Ministry of Agriculture
_{c) Ministry of Chemical and Fertilizers 49. elative Poverty refers to.:
(d) Ministry of Health and Family Welfare at bankruptcy (b) trade cycle
(e) None of these [Syndicate Bank PO 2010] (c) minimum needs of life <d) economic inequalities
[45th BPSC 2002]
41. Food for Work Programme’ was introduced during
which one of the following Five Year Plans ? 50. Which one is NOT a component to construct Human
(a) T “(b) U Ac) V (d) IX Development Index in India under UNDP (United
[NDA 2000] Nation Development Programme) ?
(a) Real GDP per capita in US Dollar
42. Annapurna Scheme launched by the Government. of
(b) Literacy Rate (c) Life Expectancy at Birth
India fom Ape. 2000 was meant to provide food security
fd) Infant Mortality Rate [46th BPSC 2004]
“to the:
a) Rural poor living below the poverty line 51. Which one is NOT the component of the Pradhan Mantri
(b) Urban slum-dwellers living below the poverty line Gramodaya Yojana?
(c) Senior citizens not covered under National Old Age (a) Elementary Education (b) Primary Health
Pension Scheme (c) Rural Road 4d) Nutrition /46 BPSC 2004]
sé) Victims of natural calamities who are forced to 52. Which is NOT included in Social Infrastructure ?
migrate to other areas [CDS 2002] (a) Education fby Telecommunication
43. Consider the following : (c) Housing (d) Health /46th BPSC 2004]
1. Per Capita Income 2. Life expectancy at birth 53. Swarnjayanti Gram Swarojgar Yojana came into being in:
3. Adult Literacy Rate (a) April, 1995 (b) April, 1997
4. Gross enrolment ratio for schools fe) April, 1999 (d) July, 2001 /UP PCS 2002]
 Indian Economy 153

54. Intake of less than undernoted average daily calories per Assertion (A): Educated unemployment increases
person has been defined n “urban with high rate of economic growth.
areas by the |Planning Commission ‘of India: Reason (R) Its happens only when there is lack of
fa) 2100" "(by 2400 "(ey 2700 (d) 3000 professional education.
[UP PCS 2003] Codes:
ae Match List-] with List-I] and select your answer from the _{a) Both Aand Rare true and Ris the correct explanation
code given below : of A
List-I List-II (b) BothAand Raretrue but Risnota correct explanation
A. Swajal Dhara Yojana 1. Rural water supply of A
B. Hariyali Yojana 2. Watershed management (c) Ais true but R is false
C. Swarnjayanti Gram 3. Rural self- (d) Ais false but R is true [[Link] (Pre) 2006]
Swarojgar Yojana employment 65. Select the one which is NOT the responsibility of Gram
D. Pradhan MantriGram 4. Rural connectivity Sabha under the ‘Rural Employment Guarantee Act,
Sadak Yojana 2005’: ©
Code: A B Cc D (a) To recommend projects to the Gram Panchayat and
fa) 1 2 3 4 prepare list of possible works
(b) 2 1 3 4 -(b) To receive applications for work and issue a rated
(c) 2 1 4 3 receipt
(d) 1 2 4 3 [UP PCS (Pre) 2004] (c) To monitor the execution of works within the Gram
Panchayat
56. In which Five [Link],
the main objective was the
_eradication of poverty ? (d) To conduct regular social audits of all the projects
(a) Fourth Five Year Plan (b)} Fifth Five Year Plan taken up within the Gram Panchayat
(c) Sixth Five Year Plan [UP PCS (Pre) 2006]
(d) Seventh Five Year Plan [UP PCS (Pre) 2004] 66. In India disguised unemployment isfound in:
fa) “Agricultural sector (b) Industrial sector
57. The Prime Minister Gramodaya Yojana does NOT include:
(c) Service sector (d) Trade sector
(a) Basic education
[UP PCS (Main) 2006]
(b) Nutritious food, drinking water and health
(c) Rural roads and housing 67. Who among the following developed the concept of.
_*d) Small scale industries [UP PCS(Pre) 2004] Human Development. Index? -
(a) Amartya Sen (b) A.S. Kadir
58. District Prmany Education. Programme was initiated in (c) Alva Myrdal (d) Mehboob-ul-Haq
athe year: /DPEP [UP PCS (Main) 2006]
“(@) 199T ~ _(b) 1994 (c) 1996 (d) 1999
68. The National Rural Employment Scheme was launched
[UP PCS (Main) 2004]
throughout the country from
59. Disguised employment refers to : (a) 1-4-2007 (b) 2-10-2007
(a) persons with no job (c) 14-11-2007 Ad) 1-4-2008
{b) unemployment among housewives [UP PCS (Main) 2006]
(c) unemployment among people above 60 years of age
69. Mid-Day Meal Scheme was launched in 1995 to promote :
.(d) employment of more persons in a job which lesser (a) Adult literacy (b) Secondary education
number of persons can accomplish Universalization of primary education
[UP PCS (Main) 2004]
(d) None of these [UP PCS (Main) 2008]
70. National Rural Employment Guarantee Act (NREGA)
" developed St
State of ]Indi:
dia Lis:
4a) Kerala (b) Punjab
does NOT:
(a) Promote inclusive growth
(c) Tamil Nadu (d) Uttar Pradesh
[UP PCS (Main) 2005] (b) Guarantee 100 days employment in a year to every
adult member of a rural household
61. The Chairman.
of the National Knowledge Commission (c) Enhances livelihood security to rural households
eB (d) Guarantee wage employment /UP PCS (Main) 2008]
(a) Rahul Gandhi (b) Rahul Bajaj
(c) M.S. Swaminathan Sam Pitroda 71. Sete Gram Swarojgar Yojana was
w started iin the
[UP PCS (Main) 2005]
year.: iy
62. Underthe National Rural Employment Guarantee
fa) 1999 (b) 2000 (¢) 2001 (d) 2004
[UP PCS (Main) 2008]
__ number of days for which employment
72. National Rural Sita Sean Guarantee [Link]
guarantee during one year has been givenis :
(a) 90 days -{b) 100 days (©) 120 days (d) 180 days
[UP PCS (Main) 2005]
“(a) 100 Districts — Ab) 200 Districts
(c) 330 Districts (d) All the Districts
63. Which one of the following pairs is NOT correctly matched ? [UP PCS (Main) 2008]
Scheme Commencement Year
73. Mid-Day Meal Scheme was started in the year :
(a). TRYSEM: - « cssst August, 1979
“fay 1995 ~~ (b) 1996 (c) 1997" (d) 1998
(b) NREP __....... October, 1980
[UP PCS (Main) 2008]
eh) SUIRYG ttc) cartons April, 1995
74. National Rural Health Mission (NRHM).was launched
(d) SGSY seawass April, 1999 [UP PCS (Main) 2005] ,
_in.the year...
64. Consider the following statements and select the correct (a) 2003 (b) 2004 (ey 2005 (d) 2006
answer using the code given below : [UP PCS (Main) 2008]
154 Objective General Knowledge

75. While calculating HDI, the maximum value for Life (b) Construction of rural roads
_Expectaneicyat birth (years) are taken as : fe) Providing houses at free of cost to the members of
“(a) 100 and 25 (b) 90 and 30 SC/ST and free bonded labourers
_Ae) 85 and 25 (d) -80 and 20 /UP PCS 2008] (d) Land development and wasteland development
76. Poverty level in India is established onbasis
the of : [TN PSC (Pre) 2009]
(a) Per capita income in different States 87. One which of the following bases has the planning commission
(b) House-hold average income defined ‘Poverty Line’ in rural areas in India ?
_fe) House-hold consumer expenditure (a) 1800 k cal Aby 2400 k cal
(d) Slum population in the country /UP PCS (Main) 2009} (c) 2500 k cal (d) 2600 k cal {TN PSC 2009)
77. Which one of the following is NOT a constituent of 88. Indian Development Report does NOT give for each
Human Development Index (HDI) ? e sample village :
(a) Per Capita Income ~~~~*(b) “Life Expectancy at Birth (a) Infrastructure and Amenitities Index
(c) Gross Enrolment Rate ¢) Health and Nutrition (b) Education Related Index (c) Health Related Index
[UP PCS (Main) 2009] -d) Unemployment Related Index [UPSC 2000]
78. Mid-Day Meal Scheme is financed and managed by : 89. The Swarnjayanti Shahari Rojgar Yojana which came
Ya) Food and Civil Supply Department Of~ State into operation from 1.12.1997 aims to provide gainful
Governments employment to the urban unemployed or under-
(b) Department of Consumer Affairs and Welfare employed poor but does NOT include :
(c) Ministry of Programme Implementation (a) Nehru Rojgar Yojana
{c&) Ministry of Human Resource Development (b)
Urban Basic Service Programme
[UP PCS 5 (Pre ) 2010] (c)
Prime Méinister’s Integrated Urban Poverty
Eradication Programme
4d) Prime Minister’s Rojgar Yojana [UPSC 2000]
pea
" (b) Real Per Capita Income 90. Consider the following schemes launched by the Union
4c) Social Inequality (d) Adult Literacy Government :
[MP PSC (Pre) 2008] 1. Antyodaya Anna 2. Gram Sadak Yojana
80. Schemeof Mid-Day Meal is NOT connected with: 3. Sarvapriya
“(a)_ Educational advancement (b) Social equity ~ 4. Jawahar Gram Samridhi Yojana
fe) Right to food (d) Child nutrition Which of these announced in the year 2000 ?
[MP PSC (Pre) 2009] -a) land2 (b) 2and 4
1. The programme ; announced by the Prime Minister for (c) 3and 4 (d) 1,2and3 [UPSC 2001]
_the minorities in India is called : 91. The prices atwhich the government purchases foodgrains
(a) Antyodaya Programme ‘(b) 20 Point Beogsatriate for maintaining the Public Distribution System (PDS)
<(c) 15 Point Programme and for building up buffer-stock is known as :
(d) Prime Minister Rojgar Yojana IC. PSC (Pre) 2008] (a) minimum support prices 6) procurement prices
82. National RuralEmployment Guarantee Programme is (c) issue prices (d) ceiling prices /UPSC 2001]
different [Link] employment programme, because : 92. National Agricultural Insurance Scheme replacing
(a) Itis also applicable in urban areas Comprehensive Crop Insurance Scheme was introduced
(b) There is guarantee of 200 days employment in a
financial year (a) 1997 (b) 1998 tc) 1999 (d) 2000
(c) Employmenttobe given within30 days of application [UPSC 2001]
for work 93. What is the name of the scheme which provides training
4d) It is not a plan for employment but legal guarantee and skills _to women in [Link]-traditional
to work ' [RAS/RTS 2007] “traders ?
83. When was the concept of the Human Development Index “(a) Kishori Shakti Yojana (b) Rashtriya Mahila Kosh
(HDI) introduced by the United Nations Development (c) Swayamsiddha A@® Swawlamban/U?SC 2008]
Programme ?. 94. Among
TR
the following, [Link] e¢eligible to benefit from
fa) 1990 (b) 1991 (c) 1993 (d) 1995 MahatmaGandhiNationalRuralEmploymentGuarantee
[WB P&C (Pre) 2007] Act
(MGNREGA) ?
84. In terms of Human Development Index, India falls under (a) Adult members of only the Scheduled Caste and
“the following category : Scheduled Tribe households
(a) High (b) Medium (c) Very Low {d) Low (b) Adult members of Below Poverty Line (BPL)
[WB PSC (Pre) 2007] households
8S. For reducing birth rate_in.[Link] Sen has (c) Adult members of households of all Backward -
emphasised.:. Communities
a) The need for improving female literacy 4d) Adult members of any households [UPSC 2011]
(b) The need for reducing mortality 95. With reference to National Rural Health Mission,
(c) The need for increasing per capita income which of the following are the jobs of ‘ASHA’, a trained
(d) The need for increasing the growth rate of Gross community health worker ?
Domestic Product [WB PSC (Pre) aid 1. Accompanying women to the health facility for
86. Whichof the following statements_is_correct regardi ng antenatal care checkup
Indiraa Awas Yojana ? 2 2. Using pregnancy test kits for early detection of
Ya) Soil and water conservation works pregnancy
 Indian Economy 155

3. Providing information on nutrition and immunization 3. to provide for wage loss due to pregnancy and
4. Conducting the delivery of bady confirement
Select the correct answer using the codes given below : Which of the statements given above is/are correct ?
(a) 1,2 and 3 only (b) 2 and 4 only (a) 1 and 2 only (b) 2 only
(c) land 3 only Lay 1,2,3 and 4 {UPSC 2012] “(c) 3only (d) 1,2and3 /UPSC 2012]
96. How does the National Rural Livelihood Mission seek 99. Consider the following :
to improve livelhood options of rural poor ? 1. Hotels and resturants
1. By setting up a large number of new manufacturing 2. Motor transport undertakings
industries and agribusiness centres in rural areas 3. Newspaper establishments
2. By strengthening ‘self-help groups’ and providing 4, Private medical institutions
skill development The employees of which of the above can have the ‘Social
3. Bysupplying seeds, fertilizers, diesel pump-sets adn Security’ coverage under Employees’ State Insurance
microirrigation equipment free of cost to farmers Scheme ?
Select the correct answer using the codes given below : fay 1, 2 and 3 only (b) 4 only
4a) 1 and 2 only (b) 2 only (c) 1,3 and 4 only (d) 1,2,3 and 4 [UPSC 2012]
(c) land 3 only (d) 1,2and3 [UPSC 2012]
[Link] do District Rural Development Agencies (DRDAs)
97. The Multi-dimensional Poverty Index developed by help in the reduction of rural poverty in India ?
Oxford Poverty and Human Development Initiative with 1. DRDAs act as Panchyati Raj Institutions in certain
UNDP support covers which of the following ? specified backward regions of the country
1. Deprivation of education, health, assets and services 2. DRDAs undertake area-specific scientific study of
at household level the causes of poverty and malnutrition and prepare
2. Purchasing power parity at national level detailed remedial measrures
3. Extent of budget deficit and GDP growth rate at 3. DRDAssecure inter-sectoral and inter-departmental
national level coordination and cooperation for effective
Select the correct answer using the codes given below : implementation of anti-poverty programmes
a) lonly (b) 2 and 3 only 4. DRDAs watch over and ensure effective utilization
(c) land 3 only (d) 1,2and3 /[/UPSC 2012]
of the funds intended for anti-poverty programmes
98. The endeavour of ‘Janani Suraksha Yojana’ Programme is Which of the statements given above is/are correct ?
1. to promote institutional deliveries (a) 1,2 and 3 only (b) 3 and 4 only
2. toprovide monetary assistance to the mother to meet (c) 4 only (d) 1,2,3 and4
the cost of delivery [UPSC 2012]

8. Agriculture
1. Which is the agency the Government has engaged. to 5. The ferti ¢[Link]:
grade and standardise\various ‘agricultural products
y ? (a) Watershed (b) Water divide
(a) Food Corporation of India fey Doab (d) Terai [SSC Mat. 2008]
4b) Directorate of Marketing and Inspection
6. Which owing methodsof soi tion
(c) Bureau of Indian Standards
is most effective in arid areas ?
(d) Central Statistical Organisation [SSC Grad. 2003]
(a) Mulching 4by Shelter belt
2. Which of the following has.-net-been a component of (c) Gully plugging d) Terracin
the agriculture strategy that brought about the Green (4) Cae CPO SI 2008]
mn?
7. The commission in India dealing with minimum
(a) Greater intensity of cropping
support price, procurement price etc., in connection with
4b) Guaranteed maximum prices
_agricultural goods is the :
(c) New agricultural technology
[SSC Grad. 2005] (a) Planning Commission
(d) Package of inputs
(b) Agricultural Costs and Price Commission
3. Revolution
The Blue is related with : fe} Agricultural Price Commission
4a) Fish Production (b) Food grain Production (a) National Marketing Commission
(c) Oilseed Production (d) Milk Production [SSC CPO SI 2008]
[SSC Grad. 2006]
4. Indian agriculture is typically characterised as: 8. The term Green Revolution has been used_to indicate
(a) land surplus, labour scare economy | higher production through :
(b) land surplus, labour surplus economy (a) creation of grasslands (b) planting more trees
) land scare, labour surplus economy (c) creation of gardens in urban areas
(d) land scare, labour scare econom ay {ay enhanced agricultural productivity per hectare
[SSC Sec. Off. (Aud.) 2007] [SSC Tax Assit. 2009]
156 ; Objective General Knowledge

9. Dr.M. S. Swaminathan has distinguished himself in 20. The impact of Green Revolution was a most in the
which of the following fields ? _ production of : nearer eisneeetts
(a) Nuclear Physics 4b) Agriculture 4a) Wheat (b) Rice
(c) Astrophysics (d) Medicine (c) Pulses (d) Oil Seeds
[SSC Tax Assit. 2009] [UP PCS (Main) 2004]

10. The Green Revolution in India_was the outcome [Link] 21. Under which Five Year Plan agriculture register a
efforts of who amongst the following ? negative “growth -
(ay MS. Swaminathan —__(b) C. Rangrajan a) Third (b) Fifth (c) Seventh (d) Ninth
[UP PCS (Main) 2004]
(c) K.V. Kamath (d) Rakesh Mohan
(e) None ofthese [Oriental Bank of Commerce PO 2008] 22. Who is [Link] Father of White Revolution
in India ?
(a) M.S. Swaminathan b) V Kurien
li. TheNationalBankforAgricultureandRuralDevelopment
(c) K.N. Bahal (d) B. P. Pal
(NABARD) was
established
in the year : [UP PCS (Pre) 2006]
(a) 1970 (b) 1975 (c) 1977 (d) 1980
23. The importance of agriculture in Indian economy
fe) 1982 [NABARD Bank Officer 2009]
‘is_indicated_
is by ‘its contribution to which of the
12. The hea of the National Bank for [Link] following ?
Sore opmene (NABARD) is located in : “fa 2}National income and employment
(a) Lucknow (bb), Hyderabad (by Industrial development and international trade
(c) New Delhi (ad) Mumbai _fey Supply of food-grains
(e) None of these [NABARD Bank Officer 2009] 4d) All the above [UP PCS (Pre) 2006]
13. Which of the follow ng isis the organisation, which is the 24. Theapexor anisation for Marketing Co-operatives at the
apex in cc eee sector “and _deals in procurement, nationaLlevelis: ~~
distribution, export and import
1port of selected agricultural (a) FCI 4b) NAFED
commodities 2 (c) National Co-operative Union
(b) NABARD (d) National Agriculture Marketing Board
(c) SIDBI (d) EXIM Bank [UP PCS (Main) 2007]
(e) None of these [NABARD Bank Officer 2009] 25. Indian Pulse Research Institute is located in:
14. As we all know, a lot of people from underdeveloped a) Allahabad b) Kanpur
States migrateto various progressive States asagricultural (c) Faizabad (d) Lucknow
labour. What are the major problems of agriculture in [UP PCS (Main) 2008]
India owing to which people have to leave their own land 26. ‘[Link].can_wait, but not agriculture’.
and work as labourer on somebody else’s farm/land ? ~ The above statement is attributed to :
1. Lack of irrigation facilities, low productivity of land (a) Jagjivan Ram {) Jawahar Lal Nehru
and uncertain monsoon (c) Mahatma Gandhi (d) Sardar Patel
2. Non-availability of fertilizers etc on subsidized [UP PCS (Main) 2009]
rates 27. Which _of the following provides the largest credit to
3. Single crop cultivation agriculture and allied sectors ?
(a) Only 1 (b) Only 2 (a) Co-operative Banks (b) Regional Rural Banks
(c) Only 3 4dy All the three -(c) Commercial Banks
(e) None of these [Andhra Bank PO 2009] (d) Co-operative and Regional Rural Banks
[UP PCS (Pre) 2010]
15. [Link] Central Rice Research Institute located ?
(a) Bangaluru (b) Kanpur. 28. The percentage of agriculture land is very high in all the
(c) Coimbatore fda) Cuttack [CDS 2008] following States except :
16. Which is NOT a source of Agriculture finance in India ? (a) Punjab (b) Haryana
(c) Uttar Pradesh -(d) Sikkim
(a) Co-operative Societies (b) Commercial Banks [Utt. PSC(Pre) 2006] °
(c) Regional Rural Banks 4d) None of these
[44th BPSC 2001] 29. Where._first. Agriculture. University of India was
established ?
17. Agriculture sector directly employs one of thefollowing (a)
(a) Kumarganj, Faizabad .(b) Pantnagar
percentages s of labour force in India : (c) Kanpur (d) Naini, Allahabad
(a) 20% ~(b). 30% C) 40% Ad} 65% [Utt. PSC(Main) 2006]
[45th BPSC 2002]
18. NABARD was established the
in : " Situated. Z aif
(a) Fourth Five Year Plan (b) Fifth Five Year Plan (a) New Delhi (b) Varanasi
fe) Sixth Five Year Plan (d) Eighth Five Year Plan (c) Kanpur Lucknow
a BPSC 2005] [MP PSC (Pre) 2004]
31. Where_is the Central Food Technological Research
is: Institute ((CFTRI) situated ?
“(a) State Bank of India (b) Reserve Bank of India (a) Bangaluru (b) Karnal
(c) Regional RuralBank {&) NABARD 4c) Mysore (d) Lucknow
[UP PCS Special (Pre) 2004] [MP PSC (Pre) 2004]
 Indian Economy 157

32. Indian
Green Revolution started from : expansionand productivity enhancementinasustainable
4a) Pantnagar “(b)
(b) Bangaluru manner in the identified districts of the country. What are
(c) Kanpur (d) Delhi [MP PSC (Pre) 2004} those crops ?
33. The Green Revolution in India has ccontributed to : (a) Rice and wheat only
“ay Inter-regional inequality.(b) ‘Tnter-crop inequality 4b) Rice, wheat and pulses only
fc} Inter-class inequality _{d) All of these (c) Rice, wheat, pulses and oil seeds only
[WB PSC(Pre) 2007] (d) Rice, wheat, pulses, oil seeds and vegetables
34. TheBonded LabourSystem (Abolition) Actwaslegislated
[UPSC 2010]
in: 39. Consider the following statements :
“(a) 1974 ky 1976 (c) 1977 (d) 1978 1. TheUnion Government fixes the Statutory Minimum
[WB PSC(Pre) 2007] Price of sugarcane for each sugar season.
35. Inwhich of the following years was the Food Corporation 2. Sugar and sugarcane are essential commodities
_of India ((FCT) set up? under the Essential Commodities Act.
“Yay 1955 (b) 1960 —_{e)} 1965 (d) 1970 Which these statements are correct ?
one PSC(Pre) 2007] (a) lonly (b) 2 only
36. The Green Revolutign has led to marked increase in : Ac) Both 1 and 2 (d) Neither 1 nor 2
[UPSC 2010]
ee Productivity of wheat -2>- Productivity of pulses
-3& Region inequalities Az Inter-person inequalities 40. In India, which of the following have the highest share
of the statements : in the disbursement of credit to agriculture and allied
(a) 1 and 2 are correct (b) 3 and 4 are correct activities ?
(c) 1,3 and 4 are correct Ad) All are correct _ta) Commercial Banks (b) Co-operative Banks
[TN PSC (Pre) 2009] (c) Regional Rural Banks
(d) Microfinance Institutions [UPSC 2011]
37. National Agricultural Insurance Scheme _ replace
Comprehensive Crop Insurance Scheme was introduced 41. Which of the following is the chief characteristic of ‘mixed
_in the year : pail farming’ ?
(a) 1997 (b) 1998 Aey 1999 (a) 2000 (a) Cultivation of both cash crops and food crops
[UPSC 2001] (b) Cultivation of two or more crops in the same field
38. An objective of the National Food Security Mission is cy Rearing of animals and cultivation of crops together
to increase the production of certain crops through area (d) None of the above [UPSC 2012]
: Answers
5. © 62 {b) (c) 8 (d) 9. (b) 10. (a
18. (c) 19. (a) 20. (a) 2t. (a) 7 22, (b)
Bd (c) 32, (a) 33. (d) 34. (b) 35.()

ZB Industry
1. Which country/countries started privatisation of State- 4 Correlate the following :
owned enterprises as a major State policy?” le Industry Field
4a) U.K. under Mrs. Margret Thatcher A. Basic industries 1. Fertilizer
(b) Russia in the [Link]. B. Strategic industries 2. Petroleum
(c) Mexico/ Argentina / Brazil C. Critical industries 3. Automobile
(d) Italy /France/ Malaysia [SSC Grad. 2003] D. Goods-based industries 4. Arms and Ammunition
2. One of the objectives of [Link]-Policy in Cede: A B e D
india‘ was 5 tcto ensure : (a) 4 2 3 L
““(a) Creation of adequate employment opportunities (b) 4 1 2 3
(b) Free flow of foreign capital in Indian industries (c) 1 4 2 3
(c) Use of modern technology (dc) 2 4 3 1 {SSC Grad. 2605]
{d) Balanced industrial development across regions
5. Which of the following is NOT an immediate indicator
[SSC Grad. 2004]
of industrial sickness ?
3. Why did the Supreme Court, in their judgement of (a) Drop in profitability
September, 2003, hold that privatisation of HPCL and (b) Labour unrest
‘BPCL was not permissible ? (c) Shrinking of market credit
“(a) Due process of law for disinvestment had not been
4d) Decline in market share [SSC Grad. 2006]
followed
(b) It is against the interest of the capital asset in the form 6. Which of the [Link]
of. industries
of their employees on the basis of raw-materials ?
(c) Ithad not been recommended by the Disinvestment (a) Small Scale “and /Large SScale
Commission 4b) Primary and Secondary
(&) It is in conflict with the statutes that created HPCL (c) Basic and Consumer
and BPCL [SSC Grad. 2004] (d) Agro-based and Mineral [SSC See. Off. (Aud.) 2006]
 158 Objective General Knowledge

7. Which of the following is a Navaratna PSE ? Rourkela steel plant was established with the
(a) Mahanagar Telephone Nigama Ltd (7 77WL) collaboration of the West Germany.
(b) Container Corporation of India Ltd 4. Bokaro steel plant was established during the Third
(c) MMTC Ltd Five Year Plan.
‘(d) Engineers India Ltd [SSC Mat. 2008] Which of the statements are correct ?
(a) 1,2and3 (b) 2,3 and 4
8. Token privatisation or deficit privatisation of _public
TTA
(c) 1,3 and 4 fH 1,2,3and4 [NDA 2000]
sector units occur when the g overn t sells :
(a) 5% of shares (b) 10% of shares 18. Which i is NOT a source of Industrial Financein India ?
(c) 15% of shares (d) 20% of shares (a) Industrial Finance ‘Corporation of India
(b) State Finance Corporation
[SSC Sec. Off. (Aud.) 2008]
(c) Unit Trust of India
9. Disinvestmentis:. «) NABARD [44th BPSC 2001]
“(a)
Offloading of shares of private companies to 19. What are the ‘Core Industries’
in India ?
government
_tay Electricity j } Coal ”
Ab) Offloading of government shares to private companies
_(c)} Petroleum Products (ad) All of these
(c) Increase in investment [46th BPSC 2004]
(d) Closing down of business concerns {SSC CPO SI 2008]
20. Urbanisation ; and Industrialisation are determined to:
10. Which of the following is a Navaratna PSE ? ay Sustainable development — a
,fa) Bharat Petroleum Corporation Ltd (BPCL) f(b) Environmental and Ecology
(b) MMTC Ltd “oy Preservation of biodiversity
(c) Engineers India Ltd ¢d) All of these [UP PCS (Main) 2004]
(d) Container Corporation of India Ltd /SSC DEO 2008] _ 21. SIDBI has been established to:
11. Whichis the biggest enterprise of the Government of (a) finance cottage industries ~
India ?, (&) finance small scale industries
(a) Postal and Telegraph _(b) Railway (c) finance large scale industries
(c) Banking (d) Shipping (d) finance public sector undertakings
[SSC Tax Assit. 2009] [UP PCS (Main) 2004]

12. Omkar_ Goswami Committee was_.set..up._by the 22. Encouraging more multinational companies in India is
‘Government for examining the issue of : to promote the policy of :
(a). Industrial relations (eo) ‘Industrial sickness
4ay Globalisation ‘s 4b) Liberalisation
fe) Privatisation (dy All of these
(c) Growth of small scale industries [UP PCS (Main) 2004]
(d). Reforms in the Banking sector [SCRA 2001]
23. Commercial paper is a source of credit for which one of
13. Who amongst the following is NOT an auto company ? the following ?
(a) Hyundai “(b) General Motors er “Corporate Industry (b) Small Scale Industries
(c) Maruti (d) Tata (c) Commercial Banks (d) Foreign Banks
(e) Tripex [Allahabad Bank PO 2007] [UP PCS (Main) 2004]
14. Which of the following carcompanies
has launched a 24. The Chairman of the National Commission for
“small cheaper ¢ car ‘Nano’ ? Enterprises in the > Unorganised Sector is : :
(a) Maruti Suzuki Udyog Ltd. “@) Arjun Sengupta
(b) Hyundai Motor India Ltd. (b) C. Chandra Shekhar Rao
(c) Hindustan Motor Ltd. (c) P.R. Das Munshi
{d) Tata Motors Ltd. (d) K. Natwar Singh [UP PCS (Main) 2005]
(e) None ofthese [Oriental Bank of Commerce PO 2008] 25. Which one of the following committees recommended
15. Which of the following is NOT a Public Sector Unit/ the olition of reservationof items [Link] scale sector
“Undertaking Agency?" in industry..?
“(a) ECGC “(by SEBI (c) SIDBI (d) BHEL (a) Abid Hussain Committee
(e) Axis Bank [Vijaya Bank PO 2008] (b) Narasimhan Committee
(c) Nayak Committee
16. Maruti views Tata Motors as a prominent..competitor (d) Rakesh Mohan Committee [UP PCS (Pre) 2006]
but does not view Volvo as a competitor. This type of
26. A labour intensive industry is one that :
competition in the market iis known as:
(a) requires hard manual labour
a) Product Competition
(b) pay adequate wages to the labour
(b) Production flow competition
fe) employs more hands
(c) Cost control competition (d) provides facilities to labour [UP PCS (Pre) 2006]
(d) Service competition
27. The licensing policy for the industries drew strength
(e) None of these [Indian Overseas Bank PO 2009]
_from-+ ae Cer
17. Consider the following statements : (a) Industrial Policy Resolution 1948
1. Thefirstmodernsteel
producing unit wasestablished (b) Industrial Policy Resolution 1956
at Kulti (W. Bengal) in 1874. (c) Congress Party Resolution of establishing socialistic
2. Bhilai steel plant was established during second Five pattern of society
Year Plan. {d Industrial Act, 1951 [UP PCS (Main) 2007]
 Indian Economy 159

28. _Abid Hussain Committee was ralated to: 39. The firstheavy electrical equipment manufacturing plant
(a) Export promotion _set ‘up in the ‘publics sector in 1960 is : at: re
6) Small and medium industries (a) Bhopal {b) Durgapur
(c) Agricultural development (c) Hyderabad
(d) Energy sector reforms [UP PCS (Main) 2008] (d) Ranipur (near Hardwar) [WB PSC (Pre) 2008]
29. Bhilai Steel Plant is the collaborative [Link] Indian 40.. Consider the following statements :
Government and
seciare...... _. #1. The expansion of public sector was based on
fa) Soviet Uninion (b) Britain Industrial Policy Resolution, 1956.
(c) Germany (d) Poland Y Government has announced New Industrial Policy
[UP PCS (Main) 2008; SSC CPO SI 2008] in July, 1991.
«30. Since when disinvestment started in public enterprises ? 3. Government has not Svecuneet any industrial
(a) 1990-91 “(b) 1991-92 policy at all.
(c) 1992-93 (d) 1993 —94 Of the statements :
[UP PCS Special (Pre) 2008] (a) 1 alone is correct (b) 2 alone is correct
. In India, liberal Industrial Policy was adopted
in the year 4e) 1 and 2 are correct (d) All are correct
:
(a) 1948 (b) 1956 (c) 1985 (4) 1991 [TN PSC (Pre) 2009]
[UP PCS Special (Pre) 2008]
41. Raurkela,
Steel, Plant_was_ setup with, the, assistance
32. First
[Link]
free India was announced in the from.
ear: (a) USSR (b) UK
(a) 1947 __-{b) 1948 (c) 1951 (d) 1956 (c) USA {d) West Germany
[UP PCS Special (Pre) 2008] [TN PSC (Pre) 2009]
33. National Renewal Fund was constituted for the purpose 42. Economic liberalisation in [Link] with:
of: (a) substantial changes in industrial licensing policy
‘@) Providing Pension for retiring employees (b) the convertibility of Indian rupee
(b) Social security (c) doing away with procedural formalities for foreign
(c) Rural reconstruction direct investment
Ad) Restructuring and modernisation of industries (d) significant reduction in tax rates [UPSC 2000]
[UP PCS (Pre) 2010] 43, Consider the following factors
megepand ing. an industry :
«84 Which one of the following pairs is NOT properly fT. Capital investment
matched ? 2. Business turnover
Industry Industrialists 8. Labour force
(a) Reliance Mukesh Ambani 4. Power consumption
_fB) Wipro wanes R. Krishnamurthy Which_of. these. determine the nature and_ size of the
(c) Airtel asaaes Bharati Mittal «industry ?
(d) Nano Car ...... Ratan Tata fa) 1,3 and4 (b) 1,2 and 4
[CPSC (Pre) 2008] (c) 2,3 and 4 (d) 2and3 — [UPSC 2001]
35. Read the following statements carefully : 44. Which of the following pairs are correctly matched ?
1. In public sector of India, there are basic and heavy Enterprise Industrial Group
industries. aL? COMSINID C9 Ss Bharati Group
2. Allindustries of public sector are profit oriented. —2> MundraSEZ ...... Adani Group
3. Jobs are secured in the indusiries of public sector. 3 CMC Eth cccnne Tata Group
Answer on the basis of following codes : Be TPCT =. sednees Reliance Group
(a) 1 and 2 are true b) 1 and 3 are true Select the correct answer using the codes given below :
(c) 2 and 3 are true (d) 1,2 and 3 are true (a) 1,2 and3 (b)3 and 4
[C PSC (Pre) 2008] (c) 1,2and4 (d)2,3 and 4/UPSC 2005]
36. .....- is the most industrially advanced State in India ? 45. Match List-I (Aluminium Company) with List-II
_(a) Maharashtra ‘b) Punjab (Location) and select the correct answer by using the code
(c) Gujarat (d) Tamil Nadu given below the lists :
' [WB PSC (Pre) 2007]
List-I List-II
Ble wxsicon is also called ‘sunrise’ industry : A. BALCO 1. Hirakud
(a) Copper (b) Plastic B. HINDALCO 2. Korba
_te) Automobile (d) Jewellery C. Indian Aluminium Company 3. Koraput
[WB PSC (Pre) 2007] D. NALCO 4. Renukoat
38. Industrial licensing was finally abolished (with a few Code: A B Cc D
exception) in the : (a) 3 1 4 2
(a) Industrial Policy, 1970 (b) Industrial Policy, 1980 Ab) 2, 4 1 3
(cy Industrial Policy, 1991 (d) Industrial Policy, 1995 (c) 3 4 1 2
[WB PSC (Pre) 2008] (d) 2: 1 4 3 [UPSC 2007]
 160 Objective General Knowledge

46. Consider the following pairs : (a) land 2 (b) 2 only

eiiccile © 5 5 Sa “Group (c) land3 éd) 1,2 and3 [UPSC 2009]
1. Ashok Leyland Hinduja 47. In the context of India's Five Year Plans, a shift in the
2. Hindalco Industries A. V. Birla pattern” of industrialisation” with lower emphasis ©:on
3. Suzlon Energy Tulsi Tanti “heavy itidtistries and more on infrastructure beginsin :
_Which of, the _Pair(s) given above is /are correctly e¢ey~Pourth Plan 4b) Sixth Plan
(c) Eighth Plan (d) Tenth Plan/UPSC 2010]

este Answers ®
6. (b) 7 8
19. (d)- 20. (d) 21. ()
32. (b) 33. (d) 34. (b)
45. (b) 46. (a) 47. (b)
Ae. Money
pe 10. New capital issue is placed in:
a) “Encourage ames... ~ (b) — imports <a) Primary market (b) Secondary market
(c) Encourage both exports and imports (c) Grey market (d) Black market
(d) Discourage both exports and imports [SSC Sec. Off, (Aud.) 2006]
[SSC Grad. 2000] 11. The process of curing inflation by reducing money supply
Which amongst the following currencies is the costliest ? is called :
(a) French Franc (b) Swiss Franc * (a) Cost-push inflation (b) Down-pull inflation
(c) Euro ¢d) Pound Sterling -e) Disinflation (d) Reflation
[SSC Grad. 2000] [SSC Sec. Off. (Aud.) 2007]
Which _of the following Mahatma Gandhi series of 12. Long term funds in the capital market can be raised either
currency notes issued by the RBI has Darna‘ecology’ depicted
on
byborrowing from certain institutions
or through :
(a) issue of note 8
on it 2, (b) taking loan from Government
(a) %500/- oy %100/-
(c) ®50/- (d) ©5/— [55C Grad. 2003} ec) Issue of securities
(d) taking loan from foreign institutions
[SSC Sec. Off. (Aud.) 2007]
13. What is the name given to the common currency of the
House’ depicted on it ?
ropean Union ? :
“Yay %500/— (b) *100/- (a) Rupee (b) Rouble
2) %50/- (d) %10/-/SSC Grad. 2003] (c) Franc ct) Euro
Inflation is caused by : [SSC Tax Assit. 2008]
(a) Increase in supply of goods 14. Devaluation of currency, leads to :
(b) Increase in cash with the Government Aa@y expansion of export trade
(c) Decrease in money supply {by contraction of import trade
-(d) Increase in money supply [SSC Grad. 2004] {cy expansion of import substitution
Devaluation usually causes the internal prices to : <a) all of the above [SSC Sec. Off. (Aud.) 2008]
(a) Fall (b) Rise 15. The_currency
of Thailand is :
.(c) Remain unchanged (d) None of these 4a) Bhat (b) Rupiah (c) Yuan (d) Yen |
[SSC Grad, 2004] [SSC Sec. Off. (Aud.) 2008]
Currency notes of % - 2 denomination and above are Which one of the following statement is-correct ?
jlabuides ofOF::
liabilities (a) Good money drives bad money out of circulation
(a) Government of India ¢by Reserve Bank of India (2) Bad money drives good money out of circulation
(c) State Bank of India (d) All of the above (c) Good and bad money cannot circulate together
[SSC Grad. 2004] (d) Cannot say [SSC CPO SI 2008]
Under the minimum reserve system, the Reserve Bank Who has t le right-to issue paper [Link] ?
jowk
“SI

of India as the sole authority of note issue is required | to (a) The Government of India
maintain assets worth not less than : (b) The Finance Commission.
(a) 85 crore of rupees &e) 115 crore of rupees (c) The Central Bank of India
(c) 200 crore of rupees (d) 210 crore of rupees (&) The Reserve Bank of India [SSC DEO 2008]
[SSC Grad. 2004] 18. Full convertibility of a rupee means :
TR ene COA STE EE A coins (a) purchase of foreign exchange for rupees freely
are issued by : (b) payment for imports in terms of rupees
(a) The Reserve Bank of India (c) repayment of loans in terms of rupees
(6) The Central Government {(d) determination of rate of exchange between rupee
(c) The State Bank of India and foreign currencies freely by the market forces of
(d) The Unit Trust of India [SSC Sec. Off, (Aud.) 2006] demand and supply [SSC Tax Assit. 2009]
 Indian Economy 161

19. The present Indian

[Link]
is [Link] : 29. SEBI bans some companies for their role in ’F & O’ scam,
(a) Gold Reserve System was the news in some major newspapers. Whatis the full
(b) Proportional Reserve System form of ‘F & On?
(c) Convertible Currency System ay” Future & Options (b) Future & Operation
¥d) Minimum Reserve System [SSC Tax Assit. 2009] (c) Free & Operational (d) Fair & Optimum
20. The term stagflation refers to a situation where : (e) None of these [SBI Clerk 2008]
(a) growth has no relation with the change i in prices 30. Many times weread aterm ‘ECB’ in financial newspapers.
wb) rate of growth and prices both are decreasing What is the full form of ECB ?
(c) rate of growth is faster than the rate of price increase fe) External Commercial Borrowing
(d) rate of growth is slower than the rate of price increase (b) External Credit and Business
[SSC Tax Assit. 2009] (c) Essential Commercial Borrowing
21. The RBlissues currency notes under the : (d) Essential Credit and Business
(a) Fixed Fiduciary System (e) None of these [SBI Clerk 2008]
(b) Maximum Fiduciary System 31. Which of the following is NOT the name of the sensitive
“e¢) Minimum Reserve System ' index of any global stock exchange ?
eneictmseaicanetinti
(d) Proportional Reserve System [SSC DEO 2009] (a) Nasdaq (b) Nikkei
22. During period of inflation, rates should : (c) Kospi (d) Dow
o&) increase (b) decrease fe) Combix [SBI Clerk 2008]
(c) remain constant (d) fluctuate . Which of the following organizations is knownas Market

Ga
N
[SSC Grad. 2010] _ Regulator i in India ?
23._ The existence
of a parallel economy or Black Money, : (a) IBA 46) SEBI ©) AMEI (d) NSDL
(a) makes the economy more competitive (e) None of these [SBI Clerk 2008]
(b) makes the monetary polices less effective 33. Which of the following is NOT a part of India’s Money
(c) ensures a better distribution of income and wealth _ Market 2
(d) ensures increasing productive investment (a) Bill Markets (b) Call Money Market
[SSC Sec. Off. 2010] (c) Banks (d) Mutual Fund
24, Consider the > following statements : fe) Indian Gold Council /S8I Associates Bank Clerk 2009]
In order to increase the supply of the money, 34. Yenis thecurrency
of ......
«f The amount of rupee coins and printed paper notes 4a) China (b) Taiwan
increase in the same proportion. (c) North Korea (d) South Korea
Il. The amount of rupee-coin can not increase (e) None of these
commensurate with the paper money. [SBI Clerk 2009; Corporation Bank PO 2006]
-HE Paper money is the best form of money. 35. Which of the following is th of Dubai ?
Which of the statements given above is/are correct ? (a) Taka (b) Dinar (c) Dollar {d) Dirham
(a) Tonly (b) nid only (e) None of these [United Bank of India Clerk 2010]
4c) land II (d) Land UW /ScRA 2005]
36. Earlier it was thought safe to allow each financial
25. In the paralanceof economy /commerce, what is ‘Gitt- _ institution to carry out only one type of finance service.
edged market’ ? Butnow Banksaresellingshares, Insurancecompaniescan
(a) Gold and silver market sell banking services. These new financial go tale
-(b) Industrial securities market are colloquially referred to as:
fc) Market of safe (such as Government) securities (a) Multinationals 6) Financial Supermarkets
(d) Market for software technology /service products (c) Market Regulators (d) Brand Promoters
[SCRA 2005] (e) None of these [Corporation Bank PO 2006]
26. Foreign investment in India are normally known_as 37. Expand the term LIBOR :
{ay London Inter-Bank offered Rate
a) FDI (b) CI (c) SFI (d) SME (b) London Inter-Bank Operational Rate
(e) MDI [Bank of India Clerk 2008] (c) London Inter-Bank Offsite Rate
27. Many a time we read a term in financial newspapers (d) London Inter-Bank Onsite Rate
GDR. What is the full form of the same ? (e) None of these [Central Bank of India PO 2006]
a) Global Depository Receipts 38. Which of the following agencies recently laid down
(b) Global Domestic Ratio guidelines for foreign companies who wish to raise
(c) Gross Domestic Revenue money from the Indian capital markets?
(d) Gross Depository Revenue (a) RBI (b) IRDA
(e) None of these /SBI Clerk 2008; Bank of India PO 2008] (c) Registrar of Companies fd) SEBI
28. The Stock market index of London. Stock Market is (e) None of these [Andhra Bank PO 2006]
referre 39. Shegelis the currency of :
(a) Sensex: (b) NIFTY ey Footsic (FTSE) 4a) Israel (b) Kenya
(d) Bullish (e) None of these (c) Tran © (d) Iraq
[SBI Clerk 2008; Bank of India PO 2008] (e) None of these [Andhra Bank PO 2006]
 162 Objective General Knowledge

40. Shilling
is the currency, of : 48. Which of the following is the correct definition of the
fa) Kenya vi (b) South Korea term ‘Commercial Papers’ ?
(c) Israel (d) Ghana (a) Itisnothingbutthepopularnameofthejudicialstamp
(e) None of these [LIC ADO 2007] papers used to register financial transactions.
“41. As weall know, Indian Money Market is divided in three, ee) Itis one of the instruments through which corporates
sectors, namely organised sector, unorganised sector and raise debt from the market.
co-operative sectors. Calfmioney “market is the part of (c) Itisthename of the ‘Certificate of Deposits’ provided
which of the following? qi by the Banks to its retail customers.
(d) Both ‘a’ and ’b’
{@) Organised Sector (b) Unorganised Sector
(c) Co-operative Sector (d) Only ‘a’ & ‘b’ (e) All ‘a’, ’b’ and ‘c’ [Bank of Maharashtra PO 2008]
(e) All ‘a’, ’b’ and ‘c’ [Bank of Maharashtra PO 2007] 49. Many a time we read in the newspapers a term ‘Hot
42. At present Indian Rupee is: Money’. Which of the following is the correct definition
Gy oatially convertible on current account —of Hot Money. ? rik ain
eb) fully convertible on current account fa) This is the fund which is dumped into a country to
(c) partially convertible on capital account get the advantage of a favourable interest rate and
(d) fully convertible on capital account hence brings higher returns.
(e) fully convertible on current and capital account both (b) This is the fund which is provided by a bank in US
[Andhra Bank PO 2007] Dollar at very short notice and at a very high rate of
43. Which of the following terms is financial
NOT a term ? interest and for a longer period of repayment.
(a) Investment (b) Core Banking Solution (c) Thisis the fund whichis pushed into market through
(c) RTGS Aad) El Nino effect Hawala or some other such illegal method and is
(e) All are financial terms sometimes referred to also as Black Money.
[Oriental Bank of Commerce PO 2008] (d) Both ‘a’ and ’b’
(e) Both ‘a’ and ‘c’ [Bank of Maharashtra PO 2008]
44. Which of the following is NOT a mode of foreign capital
inflow
to India ? 50. The European Union has adopted which of the following
(a) FDI (b) FPI (c) NRI Accounts .[Link] currency ?
(d) No-Frills Accounts (a) Dollar (b) Dinar (c) Yen (d) Peso
Ae) All these are valid foreign capital inflow de’) Euro [Vijaya Bank PO 2008]
[Oriental Bank of Commerce PO. 2008] 51. Which of the following is known as Plastic Money ?
45. Many atime we read aterm PPP in financial newspapers. 1. Demand Draft 2. Credit Card
What is the full form of the PPP ? 3. Debit Card
{a) Purchasing Power Parity (a) Only 1 (b) Only 2
(b) Public Per capita Power (c) Only 3 4) Both 2 and 3
(c) Per capita Potential Purchases key All1,2and3 [Vijaya Bank PO 2008]
(d) Present Purchasing Power 52. Many a time we see a term in newspaper IPO. What is
(e) None of these [NABARD PO 2008] the full form of [Link] ?
46, Dinar is the currency of which of the following countries? 4) Initial Public Offer
(a) Sudan (b) Myanmar (b) Indian Public Offer
(c) Afghanistan (d) Pakistan (c) Institutional Purchase Offer
fe) Iraq [NABARD PO 2008] (d) Industrial Purchase Offer
47. Lot of discussion is going on these days on the issue of (e) Indian Purchase Offer [Vijaya Bank PO 2008]
‘Participatory Notes’ (P Notes) used in financial sector/ 53. Federal Reserves is the financial organisation of :
money market. What is a Participatory Note ? 4a) USA (b) Britain (c) France (d) Japan
(a) It is an _ offshore derivative instrument used (e) Germany [Bank of India PO 2008]
by overseas buyers/investors who shares of 54, Which of the following organisations is known as the
Indian companies listed in Indian Stock Exchange market regulator in India ?
amonymously. 4a) SEBI (b) IBA (ce) AMFI- = (d) NSDL
(b) It is nothing but another name of the banking (e) None of these [Bank of India PO 2008]
operation by which banks exchange Indian Rupees 55. Many times we read a term ‘Hot Money’ in newspaper.
into US Dollars without depositing a single rupee
in the account of the party who are NRIs. The entire What is/are the characteristicsof Hot Money ?
operation is carried out by the banks solely on the 1. The term is used for fresh currency notes issued by
the RBI.
basis of the credit and goodwill of the NRI party.
(c) It is nothing but a type of undertaking given to the It is the fund which flows in the market to take
banks that they should continue investing money advantage of high interest rates.
in stock markets on behalf of NRIs and: in case the 3. Itis the fund which is thrown in the market to create
market crashes NRIs will make the losses good imbalance in the stock markets.
without delay. (a) Only 1 (by Only 2
(d) All ‘a’, “b’ and ‘c’ (c) Only 3 (d) All 1,2 and 3-
(e) None of these [NABARD PO 2008] (e) None of these [Union Bank of India PO 2008]
 Indian Economy 163

56. What is an Indian Depository Receipt (IDR) ? 3. It is an agreement between stock exchanges that
(a) A deposit account with a public sector Bank. they will not trade the stocks of each other under
(b) A depository account with any of the Depositories any circumstances in future or for a given period of
in India. time.
42y"An instrument in the form of depository receipt
created by an Indian depository against underlying
(a) Only 1 (oy Only 2
(c) Only 3 (d) All 1, 2and3
equity shares of the issuing company. (e) None of these [Bank of Baroda PO 2008]
(d) An instrument in the form of deposit receipt issued
66. Inflation in India is measured on [Link] the following
by Indian depositories
_indexes /indicators ?
(e) None of these [Bank of Baroda PO 2008]
(a) Cost of Living Index (CLI)
57. In the Capital Market,arbitrage
the term is used with (b) Consumer Price Index (CPI)
reference to:
(c) Gross Domestic Product (GDP)
(a) purchase of securities to cover the sale
(dc) Wholesale Price Index (WPI)
(b) sale of securities to reduce the loss on purchase
(e) None of these [Bank of Baroda PO 2008]
{ey simultaneous purchase and sale of securities to make
profits from price 67. Very often we read in newspapers/magazines about
(d) variation in different markets ‘Sovereign Wealth Funds’. Which of the following is the
(e) Any of the above [Bank of Baroda PO 2008] correct description ofthe same ?
58. Currency Swap is. aninstrument to manage : 4a) These are the funds or ‘the reserves of a government
(a) currency risk (b) interest rate risk or central bank of a country which are invested
(c) currency and interest rate risk further to earn profitable returns.
4d) cash flows in different currencies (b) These are the funds which were accumulated by
(e) any of the above [Bank of Baroda PO 2008] some people over the years but were not put in active
59. Money Laundering normally_involves : circulation as they retain them as Black Money for
<{a)
a) placement offunds <b) layering of funds several years.
_-(c) integaration offunds 4) allofa,bandc (c) The funds which are created to be used as relief funds
(e) none of a,b and c [Bank of Baroda PO 2008] or bailout packages are known as sovereign funds.
60. Capital Market Regulator is: (d) Both ‘’b’ and ‘c’
(a) RBI (b) IRDA (c) NSE (d) BSE (e) None of these [Canara Bank PO 2009]
(e) SEBI [Bank of Baroda PO 2008] 68. In_a_ company the _use_ of,price sensitive corporate
61. Piss 2) refers to: information by. the company: “people. to make gainsor
(a) Fixed IDeposit Interest cover losses is known as :
(b) Fixed Deposit Investment {a) inside trading (b) future trading
{c) Foreign Direct Investment (c) foreign trading (d) stock trading
(d) Future Derivative Investment (e) none of these [Indian Overseas Bank PO 2009]
(e) None of these [Bank of Baroda PO 2008] 69. Which ofthe following cannotbe called aDebtInstrument
62. What is Call Money ? as referred in financial transactions ? Secs
{a) Money borrowed or lent for a day or overnight (a) Certificate of Deposits (b) Bonds
(b) Money borrowed for more than one day but upto 3 fc) Stocks (d) Commercial Papers
days (e) Loans [indian Overseas Bank PO 2009]
(c) Money borrowed for more than one day but upto 7
70. The actual return of an investor is reduced [Link]
days
the prices of the commodities go up all of a sudden. In
(d) Money borrowed for more than one day but upto 14
financial sector this type of phenomenon. is known as:
days
(a) ‘Probability risk fe) Market risk
(e) None of these [Bank of Baroda PO 2008]
(c) Inflation risk (d) Credit risk
63. Which is the first Indian Company to be listed on
(e) None of these [Indian Overseas Bank PO 2009]
NASDAQ? ae
(a) Reliance (b) TCS (c) HCL fd) ties 71. When the prices of commodities, goods and services start
(e) None of these [Bank of Baroda PO 2008] declining consistently, the phenomenon iis known as:
(a) Discount yield {) Deflation
64, Whichisthe following is the regulator of the credit rating
(c) Negative growth (d) Market capitalism
[Link] India ?
(a) RBI (b) SBI (c) SIDBI da) SFBI (e) None of these [Indian Overseas Bank PO 2009]
(e) None of these [Bank of Baroda PO 2008] 72. Which of the following policies of the financial sectors is
65. Many times weread gai Future Trading innewspapers. basically designed to transfer local financial assets into
ae adi foreign financial assets freely and at market determined
It is nothing but a baile between any two stock exchange rates ? Policy of :
exchange wherein it is decided to purchase the stocks fa) Capital Account Convertibility
of each other on a fixed price throughout the year. (b) Financial Deficit Management
- It is an agreement between two parties to buy or sell (c) Minimum Support Price
an underlying asset in the future at a predetermined (d) Restrictive Trade Practices
price. (e) None of these [Indian Overseas Bank PO 2009],
 164 _ Objective General Knowledge

73%. As we all know, the Wholesale Price Index is divided into 85. Which one of the following statements about Foreign
five main commodity groups. Which of the following is exchange reserves of India, is NOT true ?
NOT considered separately as a group while calculating (a) Itincludes foreign currency assets and gold holdings
Wholesale Price Index (WPI)? rr of Reserve Bank of India
(a) Services and/or Production by Public Sector Units (b) It is maintained with the Reserve Bank of India
(b) Agriculture Ac) Special Drawing Rights (SDRs) are not included in
(c) Mining it
(d) Manufacturing 4é) Exports and Imports (d) Presently foreign exchange situation is satisfactory
[Bank of Maharashira Agriculture Officer 2009] in India [UP PCS 2003]

74. The investments done by ‘those financial entities which 86. Consider the following statements and select the correct
were launched or incorporated in a foreign country but answer from the code given below :
are investing in an Indian Venture in India’ are generally Assertion (A): Devaluation of a currency may promote
known as : export.
(a) Patent Money (b) Private Equity Reason (R) Price of the country’s product in the
international market may fall due to
fc) Foreign Institutional Investment
devaluation.
(d) Current Account Money
Codes :
(e) None of these [RBI Grade B Officer 2009]
(a) Both Aand Rare true and R is the correct explanation
73 When was decimal coinage system introduced in India ? of A
e “
(a) 1947 (b) 1950 (©) 1957 (a) 1960 4b) BothAand Rare true but Ris nota correct explanation
[CDS 2005] of A
76. What was the Saudi Arabian currency._called ? (c) Ais true but R is false
(a) Dirham ‘(b) Peso (d) Ais false but R is true [UP PCS 2003]
(c) Dinar da) Riyal [CDS 2005] 87. ‘Euro’is the official currency of :
In_ which of the following years India switched over to (a) all the States of Europe
rencies ? .(b) all the States of the European Union
(a) 1955 (b) 1956 fc) 1957 (d) 1960 (c) only 12 of the States of the European Union
[CDS 2007] (d) only 10 of the States of the European Union
[UP PCS 2003]
Bolivar is monetary unit of :
88. Which of the following statements is relation to Bombay
"Gy Venezuela (b) Brazil
stock Exchange, is correct, ?
. (c) Bolivia (d) Belarus [CDS 2007]
(a) Tt is the oldest stock exchange of India
9 In which year the Indian rupee was devalued two times -b) It is known by the name of Dalal Steet
o
._withinnaa month ?2 {c) It’s share index is known by the name of SENSEX
“ay 1990 (by 1991 (c) 1994 (d) 1999 (d) All of the above [UP PCS (Pre) 2004]
[44th BPSC 2001] 89. dn Indian currency,.[Link] Rupee Note is issued under
80. _During, which Five Year Plan the price level in Indian _the signature of :
Economy should a decline ? “(a) Governor of Reserve Bank of India
fay PlanI (b) Plan II (b) President of India
(c) Plan IV (d) Annual Plans Ac) Finance Secretary, Ministry of Finance, Government
[44th BPSC 2001] of India
. InIndia currency-notes issue system is based on : (d) Finance Minister, Government of India
(a) Proportional Reserve System [UP PCS Special (Pre) 2004]
_ £6) Minimum Reserve System 90. Which of the following is NOT a speculator in the Stock
(c) Fixed Exchange Rate System Exchange?
(d) Fully Convertibility System “(a) Bull (b) Bear (c) Broker £4) Stag
[44th BPSC 2001; SSC Grad. 2004; UP PCS (Main) 2004, 2007]
[UP PCS (Main) 2004]
91. If over,a given. period of time both prices and money
SE _Devaluation of Rupee was last time made_on :
‘income have been, doubled, the real income will ber
“(a) July, 1991 (b) July, 1993
(a) “doubled (b) halved
(c) July, 1997 (d) July, 2001
{ey unchanged
[45th BPSC 2002] (d) prices do not affect real income /UP PCS (Main) 2004]
83. ‘The one rupee note bears the signature of the : Convertibility of the Rupee as it exists at present
92.
(a) Secretary, Ministry of Finance means :
(b) Governor, RBI (a) Rupee is convertible into foreign currencies for all
(c) Finance Minister types of transactions
(d) None of these [48th-52nd BPSC 2008] (b) Rupee is convertible into foreign currencies for trade
84, Word ‘Bull and Big’ are associated with which. branch of transactions only
_commercial activity ; Ac) Rupee is convertible into foreign currencies for all
(a) Foreign Trade (b) Banking current transactions only
4c) Share Market (d) Manufacturing (d) [Link] convertible into foreign currencies for
[UP PCS 2002] capital transactions only [UP PCS (Main) 2004]
 Indian Economy 165

93._Commercial paper is a source of credit for which one of 66. In. October 2009, a decision has been taken to shift the
~ the following ? “Wholesale. Price ‘Index base year from 1993-94 to :
“@ Corporate Industry (b) Small Scale Industries “(a) 2001-2002 (b) 2002-2003
(c) Commercial Banks (d) Foreign Banks (c) 2003-2004 (ey 2004-2005
[UP PCS (Main) 2004] [UP PCS (Pre) 2009]
4-—When decimal method was_ introduced in the Indian 107. Treasury bills are sold in India by :
“Monetary System ? a) Reserve Bank of India (b) State Governments
(a) 1950 (b) 1954 (ce) 1957 (d) 1960 (c) Commercial Banks (d) SEBI
[UP PCS (Main) 2005] [UP PCS (Main) 2009]

95. BSE Sensex is an index to measure ups and downs in the [Link] multiplier iin India is defined as :
share market.
The rnumber ofyf companies covered \under ~~. Broad Money Broad. Money
__the index are : 3) “Base Money 4>) Reserve Money
” fa) 30 (b) 50 (c) 100 (d) 150 . Reserve Money d Base Money
[UP PCS (Main) 2005; MP PSC (Pre) 2009] (c) “Base Money (d) Reserve Mone
96. Who formulates the monetary policy in India ? [UP PCS (Main) 2009]
“tay SEBI ob) RBI” 109. Theheadquarter
of RBI is.situated_at
(c) Finance Ministry (d) Planning Commission (a) Delhi (b) Kolkata
[UP PCS (Main) 2006] (c) Chennai (a) Mumbai
97. The question of full capital account convertibility of [UP PCS (Pre) 2010]
“Indian Money (Rupee) was eexamined by the committee ~2t10. When did the ‘naya paisa’ introduced with the decimal
known as : system of coinage, become ‘paise’ ?
(a) Vaghul Committee (b) Rangrajan Committee (a) April 1, 1957 (b) October 2, 1961
{c) Tarapore Committee II (d) Hashim Committee (c) June 1, 1964 «&) April 1, 1965
[UP PCS (Pre) 2007] [Utt. PSC (Pre) 2005]
38._ Inside trading is related to: 41. From which year was the FEMA promulgated ?
{a) Share Market (b) Horse racing “ a) 1999“ (b) 2000 (c) 2002 (d) 2003
(c) Taxation (d) International trade [MP PSC (Pre) 2004]
[UP PCS (Main) 2007;UP PCS (Main) 2009] 112. Tick mark which is incorrect about inflation :
99. The Government of India has replaced FERA by : (a) Inflation indicates the rise in the price of a basket of
(a) The Competition Act (b) The FEMA commodities on a point-to-point basis.
(c) The Monopolis Act (d) The MRTP Act e(b) The inflation rate in India is calculated on the basis
[UP PCS (Main) 2007] of the wholesale price index.
208. The base of Consumer Price Index (CPI) for industrial (c) For some commodities retail prices are also
considered for measurement of inflation.
workers has been shifted from 1982 to :
(a) 1998 (b) 2000 (c) 2001 (d) 2002 (d) Inflation rate going down does not mean prices are
[UP PCS (Main) 2008] declining. [RAS/RTS 2008]

101. The basis of determining dearness allowance (d.a.) to_~ 113. A rise in SENSEX means :
aoe
Government employees in India iis: “(a) arise in prices of shares of all companies registered
(a) National Income Soy Consumer Price Index
with Bombay Stock Exchange.
(c) Standard for living (d) Per Capita Income (b) a rise in prices of shares of all companies registered
[UP PCS (Main) 2008] with National Stock Exchange.
anoverallriseinpricesofsharesofgroupupcompanies
[Link] calculation of index of wholesale prices which one of
registered with Bombay Stock Exchange.
_the following sector is assigned maximum weightage ? arise in prices of shares of all companies belonging to
“(ay Food articles (6) Non-food articles” ~~ a group of companies registered with Bombay Stock
(c) Fuel, power, light and lubricants Exchange. [UPSC 2000]
(d) Manufactured products [UP PCS (Main) 2008]
114. Consider the calle statements :
103. The most popular measure of inflationin India is : he Indian rupee is fully convertible :
(a) General price rise fb) Wholesale price index _k in respect of Current Accounts of Balance of
(c) Consumer price index Payment
(d) Consumer price index for industrial workers 2. in respect of Capital Accounts of Balance of Payment
[UP PCS (Main) 2008] 3. into Gold
evaluation ofrupee in India
was first introduced in. the Which of these statement(s) is/are correct ?
ear: fa) lalone (b) 3 alone
(a) 1949 (b) 1966 (c) 1972 (d) 1990 (c) Land 2 (d) 1;2and3 [UPSC 2000]
[UP PCS Special (Pre) 2008] 115, Guilt-edged market means:
165. Base aes for estimation of Gross Domestic Product at (a) bullion market
‘constant
prices in India, at present, is: 4b) market of Government securities
fa) 1999-2000 ~~ (b) 2000-2001 (c) market of guns
(c) 2002-2003 (d) 2006-2007 (d) market of pure metals
[UP PCS (Pre) 2009] [UPSC 2000; UP PCS 2002; UP PCS (Main ) 2004]
166 Objective General Knowledge

116. The new series of |Wholesale Price Index (WPI) released €€) Itisa persistent fall in the general price level of goods
by
by the | Government of India is
iswith reference to the base and services.
_prices of: (d) Itisa fall in the rate of inflation over a period of time.
“(a) 1981-82 (b) 1990-91 [UPSC 2010]
fe) 1993-94 (d) 1994-95 /fUPSC 2001] [Link] the parlance of financial investments, the term ‘bear’
117. Consider the following : denotes :
1. Market borrowings 2. Treasury bills (a) An investor who feels that the price of a particular
3. Special securities issued to RBI security is going to fall.
Which of these is / are component(s) of internal debt ? (b) Aninvestor who expects the price of particularshares
(a) lonly (b) Land 2 ‘to rise
(c) 2 only fd) 1,2and3 /UPSC 2001] (c) Ashareholder or a bondholder who has an interest
118. Consider the following : in a company, financial or otherwise.
—4- Currency with the public (d) Any lender whether by making a loan or buying a
-2. Demand deposits with banks bond [UPSC 2010]
-3. Time deposits with banks 126. Which of the following is/are treated as artificial currency ?
Which of these are included
in Broad Money (M,) in (a) ADR (b) GDR
India ? (c) SDR (d) Both ADR and SDR
(a) land 2 (b) land3 [UPSC 2010]
(c) 2and3 «d) 1,2 and3 127. Consider the following statements :
[UPSC 2002; UP PCS (Main) 2008] InIndia, taxes on transactions [Link] Exchange and
119. Consider the following statements : _Future Markets are :
Full convertibility of the rupee may mean : “I. levied by the Union 2. collected by the States
-1t. Its free float with other international currencies. Which of the statements given above is/are correct ?
-2. Its direct exchange with any other international fa) lonly (b) 2 only
currency at any prescribed place inside and outside (c) Both 1 and 2 (d) Neither 1 nor 2
the country. [UPSC 2010]
3. Jt acts just like any other international currency.
[Link] is the provision of financial services to,
Which of these statements are correct ?
‘people « of low-income groups. This included both the
«a Lland2 (b) land3
consumers and _self-employed. The service / services ©
(c) 2and3 (d) 1,2and3 fUPSC 2002]
“rendered 1under micro- -finance is/are :
120, Debenture holders of a company are its : ye Credit facilities 2. Saving facilities
(a) shareholders x) creditors ,». Insurance facilities
(c) debators (d) directors /UPSC 2003] Fund Transfer facilities
[Link] is Indo Next which was launched in _January,, Select the correct answer using the codes given below the
2005 ?2. lists :
(a) Anew scheme to promote Indian tourism. (a) lonly (b) 1 and 4 only
(b) Anew scheme to promote export of Indian handicrafts. (c) 2and 3 only d) 1,2,3 and 4 /UPSC 2011]
(c)An association of the Non-Resident Indians to 129, Economic growth is usually coupled with :
Organise Bharatiya Diwas every year in India. (a) Deflation b) Inflation
Ad) An alternative trading platform being promoted by (c) Hyper inflation (d) Stagflation/UPSC 2011]
the Mumbai Stock Exchange and Regional Stock
130.A rapid increase in the rate of inflation is sometimes
Exchange. [UPSC 2006]
attributed to the ‘Base Effect’. What is Base Effect ?
122. Tarapore Committee was associated with which one of (a) Itis the impact of drastic deficiency in supply due to
the following ? failure of crops
“(a) Special Economic Zone (b) It is the impact of the surge in demand due to rapid
Ab) Fully Capital Account Convertibility economic growth
(c) Effect of oil-prices on the Indian Economy. 4e) Itis the impact of the price levels of previous year on
(d) Foreign Exchange Reserve [UPSC 2007] the calculation of inflation rate
123,Which one _ofthe.following..pairs is. NOT. correct] yc (d) None of these [UPSC 2011]
“matched 7
[Link] of the following measures would _result.in an
“Country Share Market .increase in the money supply in the economy ?.ibe
(a) Japaty wanes Nikkei
a Purchase of governement’ sécurities from the public
fe) Singapore _...... Shcomp by the Central Bank
Ca) ar FTSE 2. Deposit of currency in commercial banks by the
(dy USA. vinnie Nasdaq [UPSC 2009] public
124. Which one of the following statements is an appropriate _2x Borrowing by the goverment from the Central Bank
description or deflation ? 4. Sale of government securities to the public by the
(a) It is a sudden fall in the value of a currency against Central Bank
other currencies. Select the correct answer using the codes given below :
(b) It is a persistent recession in both'the financial and (a) 1 only (b) 2 and 4 only:
real sectors of economy. fe) Lland3 (d) 2,3 and4 /fUPSC 2012]
 Indian Economy 167

[Link] the following statements : «3: stability of the government of the concerned country
The price of any currency in international market is 4. economic potential of the country in question
“decided by the Which of the statements given above are correct ?
1. World Bank (a) 1,2,3 and4 db) 2 and 3 only
2- demand for goods /services provided by the country (c) 3 and 4 only (d) 1 and 4 only /UPSC 2012]
concerned
i

1. What are ‘Open Market Operations’ ?

(a) Activities of SEBI- registered brokers ey Central Bank of india
' (b) Selling of currency by the RBI (c) both ‘a’ and ‘b’ (dt) npn Bank of India
¢c) Selling of gilt-edged securities by the Government [SSC Mat. 2008]
(d) Sale of shares by FIs [SSC Grad. 2003] eserve Bank of India was nationalised in :
2. Which from the following is NOT true when the interest a) 1947 (b) 1948 (ey 1949 (d) 1951
rate in the economy goes up? — [SSC Sec. Off. (Aud.) 2008]
(a) Saving increases (b) Lending decreases 12. Openmarket operations of ere
RBI refer to buying and selling
(c) Cost of production increases —
'_§& Return on capital increases [SSC Grad. 2003] “a Commercial bills (b) Foreign exchange
3. Rate of interest is determined by : (c) Gold fd) Government bonds
(a) The rate of return on the capital invested [SSC Sec. Off. (Aud.) 2008]
(b) Central Government (c) Liquidity Preference 13. The Narasimhan Committee (1991) on financial reforms
Py, Commercial Banks [SSC Grad. 2003] proposed for establishment ofa: renter
‘Interest is the reward for abstinence’. Who says this ? da) Four tier hierarchy of the Banking structure
(a) Keynes 46) Marshall (b) Three tier hierarchy of the Banking structure
(c) Malthus (d) David Ricardo (c) Two tier hierarchy of the Banking structure
[SSC Grad. 2006] (d) United control by the apex institutions
5. Which bank was earlier called the ‘Imperial Bank of
[SSC Sec. Off. (Aud.) 2008]
India*-? 14. Green Ba means :
(a) RBI _—__¢b) SBI (c) UBI (d) PNB (a) Development of forestry by banks
[SSC Grad. 2006] 4b) Financing of environmental friendly projects by banks
6. The abbreviation NABARD stands for : (c) Financing of irrigation projects by banks
_{a) National Bank for ‘Agricultural and Rural Development (d) None of the above [SSC CPO SI 2008]
(b) National Bank for Agricultural Refinance and 15. Which one of thee following iis NOT a quantitative credit
Development
(c) National Board of Agricultural Research and (a) Bank Rate
Development (b) Cash Reserve Ratio (CRR)
(d) National Academy of Banking on Agricultural (c) Increase of interest rate on saving deposit
Research and Development [SSC Grad. 2006] 4d) Statutory Liquidity Ratio (SLR) (SSC CPO SI 2008]
7. It is said that ‘good banker _is one who knows _ the 16. An instrument of qualitative credit control in India is :
distinction between Mortgage and a...... (a) open market operations (6) credit rationing
(a) Hundi (b) Bill of Exchange (c) change in reserve ratio (d) bank rate policy
«c) Liquid Assets (d) Bond [SSC Grad. 2006] [SSC Tax Assit. 2009]
8. India’s largest Commercial Bank is : 17. The Bank Rate is the rate of in terest. at which the Reserve
(a) Central Bank of India by State Bank of India Bank of India provides loans to the :
(c) Indian Overseas Bank (d) Bank of India 4a) Scheduled Commercial Banks
[SSC Grad. 2006] (b) Public Sector (c) Corporate Sector
9. Bank deposits that can be withdrawn without notice are. (d) Foreign Institutional Investors [SCRA 2001]
‘called: 18. The Monetary Policy of India is announced by the :
(a) Account payee deposits (b) Fixed deposits (a) Prime Minister of India .@) Governor of the RBI
(c) Variable deposits 4d) Demand deposits (c) Union Finance Minister (d) Union Commerce Minister
[SSC Sec. Off. (Aud.) 2006] [SCRA 2001]
168 ; Objective General Knowledge

19. “Which of the following rates is NOT decided by the 27. The Reserve Bank of India keeps on changing various
“Reserve Bank of India?” tatio/ rates frequently. Why this is done 2
“(a) Bank Rate (b) Repo Rate vie To keep inflation under control
(c) Reverse Repo Rate (ek) Income Tax Rates _2— Toensure that Indian rupee does not loose its market
(e) AJ of these [SBI Clerk 2007, SBI Clerk 2009] value
rd

20, India has different categories of commercial banks which er ‘To ensure that banks-do not earn huge profits at the
“OF the following is NOT one such category ? cost of public money
(a) ‘Nationalised Banks (b) “Co-operative Banks (a) Only 1 (b) Only 2
(c) Private Banks _(d) Foreign Banks (c) Only 3 4d) All1,2 and3
fe) Commodity Banks [SBI Associate Bank Clerk 2008] (e) None of these /SBI Clerk 2008; Bank of India PO 2008]
21, Which among the following activities can NOT be 28. Which ofof the
t followingis NOT a foreign bank operating
considered a common activity of a general bank in.
n India. 2.
customer? (a) ABNAmro (b) NSBC
(a) Use of tele-banking (b) Use of ATMs (c) Standard Charted Bank ¢d) Yes Bank
(c) Start of EFT facility (e) All these are foreign banks [SBI Clerk 2008]
(d) Use of Banker’s cheque 29. Which of the following is NOT abanking related or
(e) Increase or decrease in PLR and announcement of _financial term ? “
credit policy [SBI Clerk 2008] (a) Credit worthiness (b) Margin Money
22. Which offollowing States achieved 100% | financial (c) Payment gateway (d) Polymerization
inclusion ??7 (Each and every family iin the State has atleast (e) All are banking terms [SBI Clerk 2008]
“one bank account. ) 30.‘ High rates of interest in a low inflation regime ......
(a) Delhi (b) Maharashtra (a) attract people to make an investment
(c) Kerala (ad) Karnataka {b) discourage people to make an investment
(e) West Bengal [SBI Clerk 2008] (c) create atomosphere for capital formation
23. The head officeof the State Bank of India (SBI) is located, (d) are not favourable for credit expansion
ip. (e) None of these [SBI Clerk 2008]
(a) Kolkata (b) New Delhi 31. Which among the following terms is NOT related to
(c) Pune (d) Ahmedabad Banking?.,
fey Mumbai [SBI Clerk 2008] (a) Cash Reserve Ratio (b) Currency Exchange
24. Before opening anew branch ofa bank, banks are required (c) Bank Rate (d) Repo Rate
“to take mandatory ]permission / license from . eed fe) Zero Hour [SBI Clerk 2008]
“fa) Reserve Bank of India 32. Which of the following types of accounts are known as
(b) Indian Bank Association Demat Accounts ?,
(c) Securities and Exchange Board of India (a) Accounts which are Zero Balance Accounts
(ad) State Government (b) Accounts which are opened to facilitate repayment
(e) None of these [SBI Clerk 2008] of a loan taken from the bank. No other business can
25. Many a time we hear about NPA inbanking terminology. be conducted from there.
‘What is the full “form of NPA ?Z 4c) Accounts inwhich shares of various companies are
{ay ‘Non-Performing Assets traded in electronic form
(b) Negotiable and Preferential Asset (d) Accounts which are operated through internet
(c) New Performing Avenues banking facility
(d) Net Performing Average (e) None of these
(e) Not Presentable Applications [SBI Clerk 2008] [Bank of India Clerk 2008; Bank of India PO 2008]

26. Banks in India are categorized as Public Sector _and 33. Which of the following banks is a nationalized bank ?
Private Sector, Banks. Which of the following [Link] (a) ICICI Bank (b) “Yes Bank
banks are called Public . Sector Banks ? (c) Saraswat Co-operative Bank
(a) Those: inwhich Governmentof India hasa controlling {(d)- Reserve Bank of India
stake. (e) None of these [Bank of India Clerk 2008]
(b) Those which are giving services to poor sections of 34. you
If visit the bank of a bank you will normally not see
society like those living below poverty line, in remote a department/ section / counter names as .......
areas or in different areas. (a) cash ‘(b) credit
(c) Those who are governed and regulated by the (c) customer care (d) retail banking
Reserve Bank of India only. Finance Ministry does fe) housekeeping [Bank of India Clerk 2008]
not have any control over them. 35. Which of the following is NOT a banking related
(d) Only those banks are called public séctor whose
shares are traded in Stock Markets. Others are private (a) Portfolio Management (b) Overdraft
banks. (c) Treasury Operations (d) Merchant Banking
(e) -None of these [SBI Clerk 2008] fe) Proclamation [SBI Clerk 2008]
 Indian Economy 169°

36. The Banking system in India has mainly two types of 44, AS vwe all know in Indian currency market is regulated
Credit Control System— Quantitative and Qualitative. by the Reserve Bank of India (RBI), while ’ currency
Which of the following is/are NOT Quantitative Credit futures’ are jointly regulatedby the RBI and which_of
Control(s) ? _the
following other banks?
1. Bank Rate 2: ‘ERR (a) NABARD (b) SIDBI
3. Margin Requirement (c) SBI (d) ICICI Bank
(a) Only 1 (b) Only 2 fe) SEBI [SBI Clerk 2009]
«c) Only 3 (d) Both 1 and 2
(e) None of these [SBI Clerk 2008]
45. Which of the following
is NOT a banking. related.
terms. ¢.
37. Which of the following is India’s largest public sector (a). “SME Finance (b) Overdraft
Commercial Bank at present ? ee (c) Drawing power (d) Sanctioning
(a) IDBI Bank (b) ICICI Bank (ey Equinox [SBI Clerk 2009]
(c) AXIS Bank 4d) SBI
(e) None of these [SBI Clerk 2008] 46. Bad loans in banking terminology
are generally known
~as.:
38. The head of the State Bank of India (SBI)is designated (a) Prime Loans (b) Prime Asset
as: (c) BPOs (d) CBs
(a) Executive Director (b) Governor fe) NPAs [SBI Clerk : 2009]
(c) Deputy Governor (d) Director Incharge 47. Which of the following organisations is NOT associated
fe) Chairman [SBI Clerk 2008] With theffinancial banking sector in India ?
39. Which of the following is NOT the function of Reserve (a) NABARD (b) BSE
_ Bank of India ? (c) ISRO (d) ECGC
a) Provide Credit facility to the general public (e) SEBI [United Bank of India Clerk 2010]
(b) Keep Government money in various account heads 48. Which of the following terms is NOT used in the field of
(c) Keep Foreign Exchange Reserve of ue country in Banking and Finance ?
safe custody (a) Overdraft (b) Base Line
(d) Frame Monetary and Credit Policy (c) RTGS -(d) GBC
(e) All are RBI’s functions [Bank of Baroda Clerk 2008] (e) Retail [United Bank of India Clerk .2010]
40. Which of the following policies/agreements / accords 49. Who. amongst the following appoints Banking
is closely associated with the reform in Banking Ombudsman in each State ?
Industry ? (a) Ministry of Social Welfare, Government of India
(a) Doha Accord (b) Basel Accord (b) Registrar of Companies .
(c) Look East Policy (d) Geneva Fremework (c) The President of India
(e) All of these [Bank of Baroda Clerk 2008] 4a) The Reserve Bank of India
41. Which of the following organisations has the privilege of (e) None of these
issuing Bank Notes (Currency) in India? [Bank of Maharashtra Specialist Officer, 2006]
(a) State Bank of India (b) Reserve Bank of India 50. The Finance Minister of India as well as the Governor,
(c) All Nationalised Banks —— Bans of India_have stressed_on ‘Financial
(d) New Note Printing Press in India
(e) None of these [Bank of Baroda Clerk 2008] ae do they mean by ‘Financial Inclusion’ ?
42. Which oof the following
is / are the measure(s) taken by the _iv Reaching banking services of all sections of the
Reserve Bank of India (RBI) to ease the liquidity crunch society in all parts of the country.
in the ‘country. ?: 2. Providing all sorts of financial aids/grants to the
XX Cut in Cash Reserve Ratio (CRR) and Statutory people living below poverty line as a social welfare
Liquidity Ratio (SLR) measure without earning any profit.
2. Increase the flow of Foreign Direct Investment 3. This means that banks henceforth should open their
(FDI) branches in rural areas only.
3. Supply of additional currency notes in the market (ay Only 1 (b) Only 2
(a) Only 1 (b) Only 2 (c) Only 1 and 2 (d) Only 2 and 3
(c) Only 3 (d) All 1,2 and 3 (e) None of these
(e) None of these [SBI Associates Bank Clerk 2009] [Bank of Maharashtra Specialist Officer 2006;
Oriental Bank of Commerce PO 2008; Vijaya Bank PO 2008]
43. Micro Credit means :
<t> Loans of small amount to people in aoteomised 51. Who amongst the following has decided to withdraw its
sector nominee directors from the boards of the private sector
2” Loans to Self-Help Groups banks ?
3. Loans amounting = 50 lakhs to = 5 crores to Medium (a) Registrar
R of Somnanie
and Small Industrial Units. (2) Reserve Bank of India
(a) Only 1 (b) Only 2 (c) State Governments
fe) Only 1 and 2 (d) All 1,2 and3 (d) Registrar of Co-operative Societies
(e) None of these [SBI Clerk 2009] (e) None of these [Central Bank of India PO 2006]
 170 Objective General Knowledge

52. TheseacountsaretohelP ‘No Frill’ accounts recently. elk ATM ~2- Internet Banking
ese accounts are to help which of the following section 3. Universal cheque facility :
of customers ? (a) Only 1 (b) Only 2
‘(a) Weaker section of society _(c) Both 1 and 2 (d) Only 3
(b) High value customer (e) All 1,2 and 3 [Oriental Bank of Commerce PO 2008]
Students 59. As reported in some major financial newspapers, many
(d) Loan-seekers who were not able to repay their loans times it is said that ‘Other Income’ boosts the profit of a
taken earlier bank to a substantial level. What is this ‘Other Income’
(e) None of these [Central Bank of India PO 2006] for a bank ?
53. Which of the following organisations / agencies recently 1. Commission for selling insurance policies
decided to provide grades to the merchant bankers so 2. Fee for providing various services (like ATM/Extra
that they can track the market and ensure that only good Cheque etc.)
issues arrive in the market ? 3. Interest on advances and loans
(a) RBI b) SEBI (a) Only 1 (b) Only 2
(c) AMFI Ac) Both 1 and 2 (d) Only 3
(d) Registrar of Companies [IOB PO 2006] (e) All1,2and3 [Oriental Bank of Commerce PO 2008]
BE Which oft
of the following is the name of the bank founded by 60. The Foreign Exchange Reserves of India are kept in the
ae
the wi “of the Nobel. Peace Prize 2006 Mr. _Muhammmad custody
of :
(a) World Bank (b) IMF
ac for the poor (b) Swadeshi Bank Ac) Reserve Bank of India
(c) Rashtriya Bank {d) Grameen Bank (d) Prime Minister Rahat Kosh
, (e) None of these [Andhra Bank IT Officer 2007] (e) None of these
[Vijaya Bank PO 2008; WB PSC (Pre) 2008]
55. As per RBI directives, which of the following functions
61. Various banks in the country have installed machines
can not be outsourced bythe Banks ?
which disbursee money to general public. The machines
a) Opening and losing of accounts
(b) Cash collections from the parties are called :
(a) Coin Dispensing Machines
(c) Recovery of bad loans
(b) ATMs (c) Debit Card Machines
(d) Credit cards and Debit cards
(d) Ledger — Machines (e) None of these
(e) Internet audit. [Bank of Baroda PO 2007] [Vijaya Bank PO 2008]
56. Many a time we come across a term in banking sector ¢ Which of the following organisations/banks has done
‘Retail Banking’. What does it really mean ? In simple a commendable work in the field micro-finance
of was
words Retail Banking is to provide banking services : ‘awarded Nobel Prize also in the past ?
a) only to individual customers in an integrated 4a) Grameen Bank of Bangladesh
manner (b) CRY (c) ASHA
(b) entirely to agriculture sector only (d) NABARD (e) None of these
(c) only to Self-Help Group for their survival [Vijaya Bank PO 2008]
(d) only to big corporates and business houses 63. Which of the following is considered an informal method
(e) None of these [Bank of Maharashtra PO 2007] of ge
getting credit/ finance ?
57. Many a time we read in newspaper about the benefits of (a) Internet Banking (b) Branch Visits
National Electronic Funds Transfer (NEET), a delivery (c) Telebanking fd) Going to Moneylenders
service launched by the bank. Why do banks advocate (e) All of these [Vijaya Bank PO 2008]
for such delivery channels ? 64. Your friend gets = 10,000 from his grand parent. He/she
1. It is a system inwhich no physical transfer takes wants to invest in a bank in such a way he/she need not
place, hence risk is very low. withdraw the amount partly or wholly for two years.
What kind of account should he/she open in a bank ?
2. In this system banks are not required to transfer any
(a) Small Saving Account (b) Current Account
money actually to the account of the customer. Only
(c} Term Deposit Account (d) Demat Account
book adjustment is done. Hence actual fund is not
(e) None of these [Vijaya Bank PO 2008]
needed.
65. _Asweallknow CashReserve Ratio(CRR)isthe percentage
_ 3. This facility is available to anybody at any place.
of the deposit banks keep in reserve with | them. This ratio
Even having a bank account is not at all necessary. ‘is also Known as :
(a) Only 1 is correct (b) Only 2 is correct
“(ay REpo Rate (b) Reverse Repo Rate
(c) Only 3 is correct (c) SLR ¢d) Liquidity Ratio
{d) Both J and 2 are correct (e) None of these [SBI PO 2008; Canara Bank PO 2009]
(e) Alli, 2 and 3 are correct
[Oriental Bank of Commerce PO 2008]
66. Bb s open market-operation transactions arefaried out
with a view to regulate
Be Many_t times we see banks advertise—’Anywhere 4ay LLiquidity in the economy
_Banking : Anytime BBanking’. Which of the following by} Prices of essential commodities
products / facilities launched by banks make it possible fey Inflation
_ for the cusiomers to avail | banking services ‘24 hours all Ady Borrowing power of the banks
_seven days? — eo All the above [Bank of Baroda PO 2008]
 Indian Economy 171

67. When more than one bank is allowing credit facilities to (a) Inflation only by) Liquidity in economy
one party in coordination with each other under a formal (c) Borrowing powers of the banks
arrangement, the arrangement is generally known as : (d) Flow of Foreign Direct Investment
(a) Participation e) Consortium (e) None of these [Indian Overseas Bank PO 2009]
(c) Syndication (d) Multiple Banking 76. In_economics it is generallybelieved that the main
(e) None of these [Bank of Baroda PO 2008] .‘objective ofa public sector financial company like Bank
68. Open market operations, one of the measures taken by is to:
_RBlin order to control credit. expansion in the economy, “(a) Employ more and more people
_means : (b) Maximize total profits
“(a Sale or purchase of Government Securities (c) Maximize total production
(b) Issuance of different types of bonds (ad) Provide financial service to the people of the nation
(c) Auction of gold of its origin across the country
(d) To make available direct finance to borrowers (e) Sell the goods at subsidized cost
(e) None of these [Bank of Baroda PO. 2008] [Indian Overseas Bank PO 2009]

69. __The bank rate means : 77. [Link] ?

(a) Rate of interest
st charged by commercial banks from (a) It is a rate at which RBI sells Government securities
borrowers to banks
(b) Rateofinterestatwhichcommercialbanksdiscounted
{by It is a rate at which RBI buys Government securities
bills of their borrowers from banks
(c) It is a rate at which RBI allows small loans in the
(c) Rate of interest allowed by commercial banks on
market
their deposits
(d) It is a rate which is offered by banks to their most
{d@) Rate at which RBI purchases or rediscounts bill of
valued customers or prime customers
exchange of commercial banks
(e) None of these [Indian Overseas Bank PO 2009]
(e) None of these [Bank of Baroda PO 2008]
70. -Reverse Repo Rate means:
78. Which_of the following committees has given its
(a) Injecting liquidity by the Central Bank of a country on ‘Financial Inclusion’ ?
recommendations
(a) Rakesh Mohan Committee
through purchase of Government Securities
be) Rangrajan Committee (c) Sinha Committee
4b) Absorption of liquidity from the market by sale of (d) Kelkar Committee (d) None of these
Government Securities [Indian Overseas Bank PO 2009]
(c)Balancing liquidity with a view to enhance economic
79. Which of the following correctly describes what sub-
growth rate
prime lending is ?
(d) Improving the position of availability of the securities
(a) Lending to the people who can not return the loan
in the market
(b) Lending tothe people whoarehigh-valued customers
(e) Any of the above [Bank of Baroda PO 2008]
of the banks
gis stance
The of RBI’smonetary policyis : 4c) Landing to those who are not a regular customer of
(a) inflation control with adequate liquidity for growth a bank
(b) improving credit quality of Banks (d) Both b and c
(c) strengthening credit delivery mechanism (e) None of these [Indian Overseas Bank PO 2009]
(d) supporting investment demand in the economy 80. Acustomer wishes to purchase some US dollars in India.
Ae) Any of the above [Bank of Baroda 2008] He/she should go to :
7 Alot of Banks in India these days are offering | ae (a) Public Debt Division of the RBI only
facility. to their customers. What is the full form of ‘M’ in (b) American Express Bank only
‘M-banking ? {¢) RBI or any branch of a bank which is authorized for
“(a) Money~ (b) Marginal such business
(c) Message (d) Mutual Fund (d) Ministry of Foreign Affairs
@) Monte Phone [Bank of Baroda PO 2008] (e) None of these [Indian Overseas Bank PO 2009]
81. Which of the following products of a bank is Specifically
ene structure. in India ? designed to provide financial help to children iin their
fa)
( Moneylenders (b) Public Sector Banks higher studies in India or in a foreign nation ?
“(c) Private Sector Banks (d) Regional Rural Banks ‘(ay Pérsonal Loan ~~ (6) Corporate Loan
(e) State Co-operative Banks [Bank of Baroda PO 2008] tey Educational Loan (d) Mortage Loan
74. The availability of cash and other cash-like marketable (e) None of these [Indian Overseas Bank PO 2009]
instruments that are usefulin purchases ; and investments 82. A Bank/ Financial Organisation these days relies heavily
~are commonly. known as: on e-commerce for its transaction. As a part of system
(a) Cash Crunch (by Liquidity security, it has introduced the organisation’s security
(c) Credit ‘(d) Marketability awareness manual. This step of the organisation can be
(e) None of these : [Canara Bank PO 2009] classified under which one of the following categories of
measures for a business ?
75. Whenever RBI does some Open Market Operation
fa) Preventive (b) Compliance .
transactions, actually itit wishes to regulate which of the _ :
Ras esieipea panel So (c) Corrective (d) Detective
following ?
ee (e) None of these [indian Overseas Bank PO 2009]
172 Objective General Knowledge

83. Which of the following. [Link] limitation of the ATMs 91. As per the news published in various financial
_owing to which people are ‘required to yisit branches of newspapers, the RBlis reworking the roadmap on Capital
“the |bank? Account Convertibility. If this is done, who amongst the
a” It does not accept deposits following would be able to invest in foreign projects or
a It has a limited cash disbursement capacity acquire assets outside India without any restrictions ?
Lack of human interface 1. Public Sector Banks
a Only 1 (b) Only 2 2. Companies which are registered in India
(c) Only 3 {d) All1,2 and 3 3. Government of India
(e) None of these are limitations 4. Any Individual
[Indian Overseas Bank PO 2009] fay Only 1 (b) Only 2
(c) Only 3 (d) All 1,2 and 3
84. Which amongst the following organisations make-major
(d) None of these [SBI PO 2010]
credit t policies for the Regional Rural Banks (RRBs) ?
2 What is the full form of NBFC as used in the financial
(a) NABARD
sector.?
(b) Asian Development Bank
fay New Banking Finance Company
(c) World Bank (d) State Bank of India
(b) National Banking and Finance Corporation
(e) None of these [NABARD Bank Officer 2009]
(c) New Business Finance and Credit
85. Micro credit or Micro finance is a novel approach to (d) New Business Fund Company
bankingwith the poor. In"this: ‘approach bank credit is (e) None of these [SBI PO 2010]
“extended to the poor. through : 93. Which of the following is NOT a banking related-term ?
-(a) Self Help Groups (b) Anganwadi (a) { Outstanding amount
(c) Co-operative Credit Societies (b) Benchmark Prime Lending Rate
(d) Reserve Bank of India (c) Explicit Guarantee (d) Creditor
(e) Small Industries Development Bank fe) Radiation {Central Bank of India PO 2010]
[NABARD Bank Officer 2009]
94. Insurance service provided by various bank is commonly
86. The head Pak of the National Bank for Agriculture sand known as:
“(a) Investment Banking (b) Portfolio Management
(b) Fijdiersbad: (c) Merchant Banking (a) Bancassurance
fc) Mumbai (d) Lucknow (e) Micro Finance [Central Bank of India PO 2010]
(e) None of these [NABARD Bank Officer 2009] 95. Which of the following is/are considered a policy rate(s)
87. Which of thefollowing is an easy way of providing credit. in the hands of RBI ?
“to the farmer community ? ele Repo Rate . SLR
‘Yay Kisan Credit Card (b) Indira Vikas Patra 3. Inflation
(c) National Saving Certificates (a) Only 1 (b) Only 2
(d) Loan against gold (e) None of these (c) Only 3 (ad) Only 1 and 2
[NABARD Bank Officer 2009] (e) All1,2 and 3 [Corporation Bank PO 2010]
any times
we read in newspapers. thatthe RBI_has, 96. Which of the following is NOT a bank or finance
" revised i rates / ratios under LAF. What iis the full company ?
(a) Barclays (b) BNP Paribas
“Gy ‘Liquidivy Adjustment Facility (c) HSBC (d) Lufthansa
(b) Legal Adjustment Facility (e) All are bank/ finance companies
(c) Long-term Achievement Facility [Corporation Bank PO 2010]
(ad) Legal Adjustment Formality 97. Which of the following is NOT_a functionof a Bank ?
(e) None of these [Andhra Bank PO 2009] (a) Providing Project Finance
89. Which of the following is an international forum. to (b) Selling Mutual Funds
discuss and implement supervisory norms in_ all. the (c) Settlement of payments on behalf of the customers
banks of the world ? (d) Deciding policy rates like CRR, Repo Rate/SLR Rate
“(ay Basel Committee etc
(b) UN Charter on Commercial Laws (e) All of these [Syndicate Bank Specialist Officer 2010]
(c) World Trade Organisation 98. Which of the following rates/ratios is NOT covered
(d) International Board of Banks and Finance under the ‘Monetary.
] and Credit Policy of
o ‘RBI z
(e) None of these [Andhra Bank PO 2009] “ay Bank Rate (b) Repo Rate’
(c) Cash Reserve Ratio (d) Reverse Repo Rate
90. An agreement, which in fact is a contract, between the
(ey Exchange Rate of Foreign Currencies
RBland Banks for the sale and repurchase of Government [Syndicate Bank PO 2010]
securities and short term treasury| billsata futureddateand
99. The Tarapore Committee was appointed by the RBI to
examine the [Link]>~
_known as: 4) Capital Account Convertibility of the rupee
‘(@) Repo Rate (b) Bank,Rate (b) Current Account Convertibility of the rupee
(c) Reverse Repo Rate (d) Prime Lending Rate (c) Botha and b
(e) None of these [RBI Grade B Officer 2009] (d) Trade Sector Reforms [NDA 2000]
 Indian Economy 173

100,In India,.the
A
bank NABARD does not provide refinance
TETRA AT aero
yk It is the apex bank
v2: Itregulates the money supply
“(a) Scheduled Commercial Banks 3. It gives loan to the business houses
(b) Regional Rural Banks ~4 It supervises the operations of NABARD
(c) State Land Development Banks Codes:
a) Export-Import Bank [CDS 2002] (a) land2 (b) 2and4
101. Consider the following financial transactions : (c) 1,2and3 fd) 1,2 and 4/UP PCS 2003]
1. Purchase of banker cheques for = 50,000 and above [Link] of the following pairs is NOT correctly
in one day matched ?
2. Cash payment of more than & 25,000 for foreign —~“(a) SEBI Security market regulatory body
travel at one time (b) RBI Banking regulatory authority
3. Securities transaction of more than = 1,00,000 (c) SBI Commercial bank ‘
4. Cash deposit of more than € 50,000 in any bank ¢a) IDBI World bank [UP PCS (Pre) 2004]
aécount in one day
111. The functions of the Lead, Bank are performed by :
During which of these transactions is it compulsory to
“(a) State Bank of India
quote Income Tax PAN (Permanent Account Number) ?
(b) Reserve Bank of India
(a) land 2 (b) 1,2 and 4
(c) Any Bank
ec) 2,3and4 (d) 1,2,3 and 4 /CDS 2003]
{d) Abank designed for this purpose/UP PCS (Pre) 2004]
102.’Repo Rate’ is the rate at which :
HS [Link]-operative Banks work at :
“(a) The “Reserve Bank of India lends to State
(a) District level (b) State level
Governments
(c) National level (d) Block level
(b) The international aid agencies to Reserve Bank of
[UP PCS (Main) 2004]
India
(c) The Reserve Bank of India lends to banks 113. The largest publicsector commercial Bank of Indiaisthe :
—(d)- ‘The banks lend to ve Bank of sei [CDS 2004] (a) Bank ofIndia = ~~ (b)-:- Reserve Bank of India
{cy State Bank of India (d) Union Bank of India
[UP PCS (Main) 2004]
1. Tomeet SLR, commercial banks can use cash only 114. Which one of the following statementsiscorrectregarding
, ‘increase. in the. Cash Reserve Ratio.(CRR),in India ?
<2) SLR is maintained by the banks with themselves
“(a) It increases credit creation
-%. SLR restricts the banks leverage in pumping more
money into the economy f(b) It reduces credit creation
Which ‘of the statements given above is/are correct ? (c) It does not affect credit
(a) 1,2and3 (b) 1 and 3 only (d) It denotes liberal monetary policy
[UP PCS (Main) 2004]
e) 2 and 3 only (d) 2 only [CDS 2010]
[Link] among the following sectors contributes most to
64,Whick
Which one ofthe following Public Seector Bank’ s emblem
the savingin India ?
(a) Punjab National Bank — “(by State Bank ofindia r
(a) Banking and financial sector
(b) Private Corporate sector
(c) Oriental Bank of Commerce
(c) Export sector (da) Household sector
{Syndicate Bank [CDS 2010]
[UP PCS (Main) 2004]
105,Which,is the highest bank in the banking structure of AE The
he EXIM Bank of India was established i 35):2
India? (a) 1964 (b) 1976 ‘(e) 1980 fd) 1982
(a) State Bank of India (b) Central Bank of India [UP PCS (Main) 2004]
(c) Industrial Development Bank of India
(ad) Reserve Bank of India [44th BPSC 2001]
[Link] the following :
1. Regional RuralBank 2. Lead Bank Plan
[Link] of the following payment instrument introduced
3. NABARD 4. State Bank of India
bythe banks is [Link]
Plastic Money ? The correct chronological sequence of establishing of
(a) Bearer Cheques 4) Credit Cards these banks is :
(c) Demand Drafts (d) Gift cheques (a) 4-3-2-1 (b) 42-1-3 (c) 2-341 (d) 2-143
[45th BPSC 2002]
[UP PCS (Main) 2005]
107.1f the Cash Reserve Ratio (CRR)
is lowered by the RBI, [Link] the following statements for ‘India Millennium
its impact on ‘credit creation will be:
_ Deposits’ Scheme : oie Se
‘ay increase") decrease
“4-7 The scheme was launched by the State Bank of
(c) no impact (d) none of the other
[48th-52nd BPSC 2008]
India
—2. It was intended for Resident Indians only
108,Which one of the following is a private bank ? 3. The maturity period of the scheme was six years
(a) Allahabad Bank (b) Punjab and Sind Bank only
(c) Punjab National Bank {d) Punjab Bank
[UP PCS 2003] Which of the statements given above is/are correct ?
1) 1 and 2 only (b) 1 and 3 only
[Link] the following statements with regard to Reserve
(¢) 1,2and3: s (d) 1 only
Bank of India and select your answer from the code given
[UP PCS (Main) 2005]
below :
 174 Objective General Knowledge

119, The term Plastic Money applies to : 131. Non-Performing Assets (NPA) in commercial banks
(a) Bank draft made of plastic coated paper mean :
(b) Currency notes impregnated with plastic thread (a) Bank deposits which are not invested
(c) Currency notes printed on plastic coated paper (b) Capital assets not in use
-(d) Credit cards mainly issued by the banks Ae) Loans inwhich interest or principal amount is not
[UP PCS (Main) 2006] recovered
_420<Government of India, for the first time nationalised 14 (d) Loan interest rate loans [UP PCS (Main) 2009]
ad _large ¢Commercial Banks in the year *” 132. The Bank rate is the rate at which :
“(a) 1956 —(b) 1959 “(c) 1969 (d) 1971 (a) A bank lends to the public
[UP PCS (Pre) 2007] (b) The RBI lends to the public
121. PAN card issued by the Income Tax Department « cannot ic) The RBI gives credit to the commercial banks
bé used for which of the following purposes ? (d) The Government of India lends to other countries
(a). Proof of identy [UP PCS (Pre) 2009]
wb) Proof of a registered tax payer 133. Which of the following is the most important component
(c) Proof of address of the liablities of Commercial Bank in India ?
(d) Proof of date of birth [UP PCS (Pre) 2007] “¢a) Time deposits (b) Demand deposits
2. Mohammad Yunus, who has been awarded Nobel Peace (c) Inter-bank liablities (d) Other borrowings
[UP PCS (Main) 2009]
Prize iin 2006, is a citizen of :
“a) Bangaladesh (b) Iran 134. Open Market Operations of Reserve Bank of India
refer
(c) Malaysia (d) Pakistan
[UP PCS (Pre) 2007] “f) Trading iin securities
(b) Auctioning of Foreign Exchange
123. Which bank became the, first bank to open its branch in,
(c) Transaction in Gold
_ China ei
(d) None of these [UP PCS (Pre) 2010]
“(a) IDBI Bank (b) HDFC Bank
_(c) State Bank of India (ad) Punjab National Bank 135. An increase in CRR by. the Reserve Bank of India results
[UP PCS (Main) 2007] in:
124. Which among the following is an asset for a Commercial “(a) Decrease in debt of the government
4s) Reduction in liquidity in the economy
Bank? .
(c) Attracting more FDI in the country
(a) Credit to farmers (b) Deposit of public
(d) More flow of credit to desired sectors
cy Borrowings from RBI [UP PCS (Pre) 2010]
(d) Demand deposits of Industries [UP PCS (Main) 2007]
136. The headquarter of RBLis situated at ;
125. The Banksare required to maintaina certain ratio between (a) Delhi (b) Kolkata
_their cashin
in hand and total assets. "This iis called : (c) Chennai 4d) Mumbai
(a) SLR ~(by SBR ~ “(c) “CBR <a) CRR [UP PCS (Pre) 2010]
[UP PCS (Main) 2007]
AS. ‘Narasimhan Committee is related to :
126. The interest rate at which the Reserve Bank of India -(a) Bank Sector Reform
lends to commercial banks in the short term to maintain (b) Heavy Industry Development
liquidity isi known as: (c) Insurance Sector Reform
(a) Interest rate (6) Repo rate _(d) aand c are correct [UP PSC (Pre) 2006]
(c) Bank rate (d) Reverse repo rate
[UP PCS (Main) 2008]
ABBY When was the first Regional Rural Bank formed ?
(a) 1974 ~ -(b) 1975 (c) 1976 (d) 1977
127. Which one of the following banks give long term loans Bis [MP PSC (Pre) 2004]
to agriculture ? . [Link] NABARD formed ?
fa) State Co-operative Bank (b) Commercial Bank (a) 1952 (b) 1962 (c) 1982 (d) 1992
(c) Primary Credit Society [MP PSC (Pre) 2004; WB PSC (Pre) 2007; NABARD Bank Off. 2009]
(d) Land Pevelo pment! Bank [UP PCS (Main) 2008]
140. A proportion of the total deposits and_reserves_of-the
[Link] of the following is the most important component ommercial Banks with the Reserve Bank of India _is
of the liablities of
o commercialbanks in India ? “called:
“(ay Demand deposits (b) ‘Time deposits baa (Es Balance of Payment (b) Bank Guarantee
(c) Inter-bank liablities (d) Other borrowings (c) Caution Money Jd) Cash Reserve Ratio
[UP PCS (Main) 2008] [C PSC (Pre) 2008]
129. Which one of the folowing is NOT an apex institution ? As. In which year was the Reserve Bank of India established _?
(a) State Bank of India (b) NABARD (a) 1935 (b) 1940 (c) 1947 (d) 1949
(c) SIDBI [WB PSC (Pre) 2009]
(d) State Co-operative Bank [UP PCS (Main) 2008]
142. Bank Rate is the rate :
130. Which one of the following is NOT a function of Reserve “(a) At which banks lend money to the depositors
Bank of India.? {b) At which Reserve Bank of India lends money to
(a) Credit control commercial Banks
(b) As apex body of scheduled commercial banks (c) The rate at which banks lend to the Industrial
(c) Formation of monetary policy Financial Institutions
(d) Credit creation [UP PCS (Main) 2008] (d) None of the above [WB PSC (Pre) 2008]
 Indian Economy
bookszoli. [Link]
[Link] one of the following rates is NOT determined by (a) Corporation Bank (b) Dena Bank
“the: Reserve Bank
B of India Pg fc) Federal Bank (d) Vijaya Bank /UPSC 2004]
a) CRR (b) SLR 150. The National Housing Bank (NHB) was set up in India
- (c) Repo Rate Aa) Prime Lending Rate as a wholly-owned subsidiary of..which_one_of. the.
[WB PSC (Pre) 2008] following?
AvMatch List-I (Organisation) with List-II (Year of “(a) StateBank of India 4b) Reserve Bank of India
Foundation) correctly and select your answer using the (c) ICICI Bank
codes given below : (d) Life Insurance Corporation of India [UPSC 2006]
List-I List-II [Link] the following pairs :
A. IFCI 1. 1948 Large Bank Country of Origin
B. ICICI 2. 1955 1. ABN AmroBank _... Netherlands
Cc. IDBI 3. 1964 2. Barclays Bank sive UK
D. EXIM Bank 4. 1982 3. Kookmin Bank South Korea
Code: A B Cc D Which of the above pair(s) is/are correctly matched ?
mc) 1 2 3 4 (a) 1 only (b) 2 only
(b) 2 1 3 4 (c) land 2 4d) 1, 2 and 3 [UPSC 2009]
(c) 1 2 4 3 [Link] of the following terms indicates a mechanism
(d) 2 1 4 3 [TN PSC (Pre) 2009] used by commercial banks for providing | credit to ‘the .
[Link] the following statements regarding Reserve
Bank of India : “(ay “Cash Credit Ratio (b) Debt Service Obligation
1. Itis a banker of the Central Government. (c) Liquidity Adjustment Facility
2. It formulates and administers monetary policy. (A): Statutory Liquidity Ratio [UPSC 2010]
3. It acts as an agent of the Government in respect of [Link] India, the interest rate on saving accounts in all
India. nationalised commercial banks is fixed by :
4. Ithandles the borrowing programme of Government (a) Union Ministry of Finance
of India. (b) Union Finance Commission
Which of the statements are correct ? (c) Indian Banker’s Association
a) land 2 (b) 3 and 4 (ad) None of the above [UPSC 2010]
(c) 2,3 and 4 (d) 1,2,3 and 4 /UPSC 2001] [Link] the Reserve Bank of India announces an increase
[Link] India, the first bank of limited liabilities managed by of ‘the
th e Cash. Reserve Ratio (CRR), what does it mean?
Indians anid founded in 1881 was : w
(@) The Commercial banks will has less money to lend
(b) The Reserve Bank of India will have less money to lend
“(ay Hindustan Commercial Bank
(c) The Union Government will have less money to lend
(bp) Oudh Commercial Bank
(d) The commercial banks will have move money to lend
(c) Punjab National Bank
(d) Punjab and Sind Bank [UPSC 2003]
[UPSC 2010]
[Link] reference to the institution of Banking Ombudsman
[Link] the following statements : in India, which one of the statements is NOT correct ?
1. The National Housing Bank (NHB), the apex
(a) The Banking Ombudsman is appointed by the
institution of housing finance in India, was set up
Reserve Bank of India
as a wholly-owned subsidiary of the Reserve Bank (b) The Banking Ombudsman can consider complaints
of India (RBI). from Non-Resident Indians having accounts in India
2. The small Industries Development Bank of India (c) The service provided by the Banking Ombudsman
(SIDBI) was established as a wholly-owned is free of any fee
subsidiary of the Industrial Development Bank of (d) The orders passed by the Banking Ombudsman are
India (IDBI). “ final and binding on the parties concerned
Which of the statement given above is/are correct ? [UPSC 2010]
(a) 1 only (b) 2 only 156. With reference to India, consider the following :
.(¢) Both 1 and 2 (d) Neither 1 nor 2 —t”’ Nationalization of Banks
[UPSC 2004]
_ Formation of Regional Rural Banks
[Link] the following statements : _&x =6Adoption of village by Bank Branches
1. Reserve Bank of India was nationalized on 1 January, Which of the above can be considered as steps taken to
1949. _achieve the ‘financial inclusion’ in India? ~~
2. The borrowing programme of the Government of (a) Tand2 ‘only (b) 2 and 3 only
India is handled by the Department of Expenditure, (c) 3 only (dy 1,2. and 3 sUPSC 2010]
Ministry of Finance. [Link] is the offering to Teaser Loans by commercial banks
Which of the statements given above is/are correct ? a cause of economic concern ?
a) 1 only (b) 2 only 1. The teaser loans are considered to be an aspect of
(c) Both 1 and 2 (d) Neither I nor 2 sub-prime lending and banks may be exposed to the
[UPSC 2004] risk of defaulters in futures.
[Link] oneof the as Indian. banks _is_NOT.a 2. InIndia, the teaser loans are mostly given to inexperienced
fationalised bank 7

+)
enterpreneurs to set up manufacturing of export units.
 176 Objective General Knowledge

Which of the statements given above is/are correct ? a) More liquidity in the market
_(a) lonly (b) 2 only (b) Less liquidity in the market
(c) Both 1 and 2 (d) Neither 1 nor 2 (c) No change in the liquidity in the market
[UPSC 2011] (d) Mobilization of more deposits by commercial banks
- [Link] India, which of the following have the highest share [UPSC 2011]
in the disbursement of credit to ) agriculture and. allied [Link] basic aim of Lead Bank Scheme is that
‘activities 2?? (a) big banks should try to open offices in each district
“tay ‘Commercial Banks (b) Co-operative Banks (b)there should be stiff competition among the various
(c) Regional Rural Banks nationalized banks
(d) Micro finance Institution fUPSC 2011] fey individual banks should adopt particular districts
159, The lowering of Bank Rate by the Reserve Bankof India for internsive development
leadsto :_. (d) all the banks should make intensive efforts to
mobilize deposits [UPSC 2012]

2. Public Finance
(Indian Fiscal System, Indian Tax Structure, Centre-State Financial Relation, Black Money etc.)

1. Which one of the following is NOT an example of Indirect 6. Which of the following taxes is exclusively and_totally
_tax? ie _assigned to the Central Government by the Constitution 2
“(a) Sales tax (b) Excise duty (a) Estate Duty (b) Sales Tax
(c) Custom duty ad) Expenditure tax (c) Taxes on Railway Fares and Freights
[SSC Grad. 2000] d) Corporation Tax [SSC Grad. 2005]
2. _ Interest on public debt is a part of : eS. Fiscal Policy
is related to :
“(a) “Transfer payments by ‘the enterprises (a) Money supply in the economy
«b) Transfer payments by the Government (b) Regulation of the banking system
(c) National Income (c) Planning for economic development
(d) Interest payment by house-holds = [SSC Grad. 2000] ¢d) Government’s Revenue and Expenditure
[SSC Grad. 2006]
3. Which authority recommends the principles governing
‘the grants-in-aid of the revenues of the States out
Of the 8. Ie ththe tax rate increases with the higher level of income,
Consolidated Fund of India? shall
it be called:_
(a) Public Accounts Committee (a) Proportional tax ) Progressive tax
(b) Union Ministry of Finance (c) Lump sum tax (d) Regressive tax
[SSC Sec. Off. (Aud.) 2006]
e) Finance Commission
(d) Inter-State Council [SSC Grad. 2003] 9. Finance Commission is constituted :
(a) every year (b) once in two years
4. Which amidst the following taxes collected by the Union
(c) once in four years {ad once in five years
is not mandated to be assigned tcto> the States ? [SSC Tax Assit. 2008]
(a) Terminal taxes on good or passengers carried by
10. The Report of Vijay Kelkar Committee relates to :
railway, sea or air
(a) Trade Reforms ae
(b) Taxes on railway fares and freights
(b) Centre-State Financial Relations
(c) Taxes on consignment of goods
(c) Disinvestment in Public Sector Enterprises
{d&) Service tax [SSC Grad. 2004]
Ad) Tax Reforms [SSC CPO SI 2008]
5. The ‘break-even point’ is where : 11. Which one
of the followingis NOT the source of revenue
Aa) Marginal revenue equals marginal cost
_of Central Government ?
(b) Average revenue equals average cost “(a) Income Tax (b) Corporate Tax
(c) Total revenue equals [Link]
Ac) Agriculture Income Tax (d) Excise Duty
(d) None of these [SSC Grad. 2005] [SSC DEO 2008]
 Indian Economy 177

12. Which one of the following is NOT a source of tax revenue 21. Which of the following is NOT a source of tax revenue
in Indian States |? collected by the Government of India.?
(a) Land Revenue (b) Motor Vehicle Tax (a) Custom Duty (b) Excise Duty
(c) Entertainment Tax ¢d) Corporate Tax (c) Service Duty (d) Income Tax
[SSC Tax Assit. 2009] wey Dividends and Profits [OBC PO 2008]
13. Which of the following taxes are levied and collected by 22. Which of the following is/are some of the
the Centre but their net proceeds are wholly transferred recommendations of the Raghurajan Committee _on
_to States ? financial sector reforms ? rei
(a) Expenditure Tax and Gift Tax <=" Targetinflation control rather thancontrollingmoney
(b) Additional Duties of Excise in lieu of Sales Tax supply
(c) Stamps and Registration <2" Open Corporate and Government Bond markets
dy Taxes on Advertisements [SSC Sec. Off. 2010] -% Provide liberal regulations for mergers and
14. The budgetary deficit in the Union [Link] Indiais acquisitions
equal
to ; (a) Only 1 (b) Only 2
(a) Revenue deficit plus capital deficit (c) Only 3 Ady All 1, 2and 3
(b) Revenue deficit minus capital deficit (e) None of these [OBC PO 2008]
(c) Revenue deficit plus capital deficit 23. The amount of which of the following reflects the overall
-(d) Fiscal deficit minus capital deficit [SCRA 2001] budgetary position of the Government of India ata given
15. As we all know Ministry of Finance every year prepared time.
Union Budget and present it to the Parliament. Which fa) ~Revenue Deficit
of the following is/are the elements of the Union (b) Total Amount of income tax collected
Budget ? (c) Capital Deficit 4d&) Fiscal Deficit
1. Estimates of revenue and capital receipts (e) None of these [Indian Overseas Bank 2009]
2. Ways and means to raise the revenue 24. Which of the following taxes is NOT levied ods the Union
3. Estimates of expenditure Government ?.
(a) Only 1 (b) Only 2 (a) ‘Customs (b) Corporate Tax
(c) Only 3 fd All1, 2 and3 (c} Land Revenue (d) Income Tax
(e) None of these [SBI Clerk 2008] (e) Surcharge on Income Tax
[United Bank of India PO 2009]
16. Which of the following is NOT a tax/duty levied by. the.
Government of India ? 25. Service Tax was introduced in India for the first time in
(a) Income Tax (b) Education Cess the year:_
(c) Service Tax (d) Custom Duty (a) 1980-81 (b) 1990-91 (c) 1991-92
fe) Toll Tax [SBI Clerk 2008; Bank of India PO 2008] Ad) 1994-95 (e) 2000-01 [United Bank of India PO 2009]
17. Which of the following taxes is collected by the 26. Which of the following commissionsetupby
the President
Government _on_sale of goods | and _seryices in the_ of India decides the distribution of tax incomes between
the Central and State ‘Governments ?
country ?
(a) NAT —_(b) GET (c) SAT (d) VAT (a) Central Law Commission
(e) None of these (b) Pays Commission for Government Employees
[NABARD PO 2008; Vijaya Bank PO 2008] (c) Administrative Reform Commission
(d) Planning Commission
18. Fiscal deficit is :
Finance Commission [United Bank of India PO 2009]
(a) total income less Government borrowing
(b) total payments less total receipts 27. [Link] [Link]/.anethe components..of. the,
(c) total payments less capital receipts Fiscal Deficit ?
dy total expenditure less total receipts excluding _t.”” Budgetary ‘Deficit _-2~ Market Borrowings
borrowing _* Expenditure made from Pradhan Mantri Rahat
(e) none of these [Bank of India PO 2008] Kosh
(a) Only 1 (b) Only2
19. Which. [Link] following is [Link] part of the structure (c) Only 3 4a) All 1,2 and 3
.of the Financial System in India ?
(e) None of these [United Bank of India PO 2009]
(a) Industrial Finance (b) Agriculture Finance
(c) Government Finance (d) Development Finance 28. Which of the following is true about Value [Link]
fe) Personal Finance [Bank of India PO 2008] (VAT)?Itis
_+-~ a consumption tax levied on value added to the
20. Aswe all know Government of India collects tax revenue
product on every stage of its production.
2. VAT is levied by the Union Government and only a
is a part of the tax revenue of. the Government.?
small part goes to State Governments.
"Tax on Income _2- Tax on Expenditure
3. The income tax on retailers is now decided on the
_3- Tax on Property or Capital Assets basis of their VAT collection in a year.
_4- Tax on Goods and Services Only 1 (b) Only 2
(a) Only 1 and 3 (b) Only 2 and 4 (c) Only 3 (d) All1,2and3
(c) Only 2,3 and 4 4) All 1,2,3 and 4 (e) None of these [Andhra Bank PO 2009]
(e) None of these [Bank of Baroda PO 2008]
178 Objective General Knowledge

29. Many atime weread in financialnewspapers about Public 36,..WhichisthetaxthatisimposedbbytheCentralGovernment

‘Debt. Which of the following - is/are the Zomponents ¢of _of India butits revenue is divided between»n Centre and
and
Public. Debt ? States ? —
i Market Loans Ta) Custom Duty (>) Central Excise Duty
_2- External Loans (c) Corporation Tax (d) None of these
3. Outstanding against saving schemes/ provident [44th BPSC 2001]
funds 37. Which two of the following taxes are indirect taxes ?
(a) Only 1 (b) Only 2 (a) Sales tax and Income tax
Both 1 and 2 (d) Only 3 (b) Income tax and Wealth tax
(e) All 1,2 and 3 [Andhra Bank Marketing Associate 2009] fey Sales tax and Excise tax
(d) Income tax and Excise tax [45th BPSC 2002]
30. Which of the following is/are the Non-Tax Revenue
‘components of the Union Budget oof India ? 38. Recommendations to the President of India on the specific
1. Custom Duties ~ _2.— Interest Receipts Union-State fiscal relations aare made by the ;:
_-3:~ Dividends and Profits (ay Finance Minister -((b) _Reserve Bank of India
(c) Planning Commission Ad) Finance Commission
(a) Only 1 (b) Only 2 [46th BPSC 2004]
(c) Only 3 fety Only 2 and 3
39. Who is the Chairman of the 12th Finance Commission ?
(e) All 1,2 and 3 [RBI Grade B Officer 2009]
(a) Prof D.T. Lakarawala (b) Dr. C. Rangrajan
31. As we all know, Government of India pays special (c) Shri Digvijay Sinha (d) Shri K. C. Pant
emphasis on the management of Fiscal Deficit. What is [46th BPSC 2004]
Fiscal Deficit ?
(a) The gap between projected or estimated GDP and
40. Economic Planning. is in ;.
(a) Union List (b) State List
‘ Actual GDP fey Concurrent List (d) not any specific list
(b) The gap between the total number and value of the [47th BPSC 2005]
currency notes issued by the RBI uptill now over Al. From the following which one is NOT a tool
of Fiscal.
the number and value of those which are in actual Policy 2
circulation (a) Taxation (b) Public Expenditure
(c) The gap between the actual borrowings of the fe) Interest Rate (d) Public Debt
Government of India and the expected expenditure [47th BPSC 2005]
for which provision is made in the budget 42. Fiscal Deficit is :
4a) Excess of Government’s disbursement comprising (a) Total expenditure — Total receipts
current and capital expenditures over its current (b) Revenue expenditure — Revenue receipts
receipts (Tax / Non-tax receipts) (c) Capital expenditure — Capital receipt — Borrowings
(e) None of these [RBI Grade B Officer 2009] fdy Sum of budget deficit and Government's market
32. Which of the following is/are the function/ functions of borrowings and Liabilities [48th — 52nd BPSC 2008]
of the Finance Commission of India ? 43. MODVAT is related to :
1. Distribution of the net proceeds of the taxes which (a) Sales Tax (b) Wealth Tax
are divisible between the Union and the States. (c) Income Tax ¢d)' Excise Duty
2. They recommend the principles which should [48th-52nd BPSC 2008]
govern the grant-in-aid of the revenues of the States 44, Which one of. the following forms the largest shareof
out of the Consolidated Fund of India. _deficit iin Government of India budget :
Select the correct answer using the code given below : (a) Primary deficit (b) Revenue deficit
(a) 1 only (b) 2 only
(c) Budgetary deficit 4d)" Fiscal deficit
[UP PCS 2002; UP PCS(Main) 2004]
fe) Both 1 and 2 (d) Neither 1 nor 2
[NDA 2009] 45. Which one of the following taxes is levied and collected
byt the Union but distributed between Union and States ?
33. Which among the following is the exclusive jurisdiction
(a) “Corporation Tax
“of the State Government ? 4) Tax on income other than on agricultural income
(a) Corporation Tax (b) Custom Duty (c) Tax on railway fares and freights
(cy Sales Tax (d) Income Tax
(d) Customs [UP PCS(Pre) 2004]
[NDA 2009]
46. The largest item of expenditure in the current account of
34, The Indian Income Taxis: _
the Central Government budget
is :
Ya) Direct and Proportional (a) Defence Expenditure (b) Subsidies
(b) Indirect and proportional ey Interest Payments
fe) Direct and progressive (d) Expenditure on social services
(d) Indirect and progressive [CDS 2003] [UP PCS Special (Pre) 2004]
35. Which one of the following is the most important item 47, 13th Finance Commission has been constituted under the
_of expenditure of the Government of India on revenue Chairmanship of = tt HO.
account? (a) Y.S.P. Thorat
(a) Defence (b) Subsidies (b) Montek Singh Ahluwalia
(c) Pensions At) Interest Payments (c) C. Rangrajan 4d) Vijay L. Kelkar
[CDS 2003] [UP PCS Special (Pre) 2004; 2008]
 Indian Economy 179

48. The recommendations of the Sarkaria Commission relate to : 59. The tax onn import and
a export is known as :
(a) Distribution of Revenue (a) Inconié'tax (by ‘Trade tax
(b) Powers and functions of the President of India ey Custom duty (d) Excise duty
(c) Membership of Parliament [UP PCS (Main) 2006]
&dy Centre-State relations [UP PCS (Main) 2004] 60,_ VAT is imposed :
49. Which one of thee following group of taxes collected by (a) Directly on consumer
the Central Government and shared [Link] §States ?? (b) On final stage of the production
(a) Income Tax, Corporate Tax, Custom Duty (c) On first stage of the production
-(b) Income Tax, Corporate Tax, Excise Duty Ady On all stages between production and final sale
[UP PCS (Main) 2006]
(c) Excise Duty, Cess on Income, CorporateTax
(d) Excise Duty, Cess on Income, Custom Duty 61. The extent of money transfer to the States out of sharable
[UP PCS (Main) 2004] pool of tax collection according to the 12th Finance
Commission has been fixed at :
50. The latest committee to submit its report on tax reforms
(a) 29.0% (b) 29.5% fe) 305% (d) 32.5%
known-as
is : [UP PCS (Main) 2007]
4a) Kelkar Committee (b) Chellia Committee
62. With what _subject..[Link].Rajan_.Committee
(c) Narsimhan Committee (d) Vaghul Committee
[UP PCS (Main) 2004] (a) Austerity in Government Expenditure
51. The recommendations of the Kelkar Task Force relate to : (ey) Financial Sector Reforms (c) Export-Import Balance
(a) Trade (b) Banking (d) Rising Prices [UP PCS (Main) 2007]
(c) Foreign Investment (ay Taxes. [UP PCS 2004]
63._If interest payments are subtracted. fromGross. Fiscal,
52. Under. which. of the [Link] the se
totalRNR amount
RON 7S “Deficit e residuary \will be:
payable by an individual islimitedby-the ? “te) Gross Primary Déficit (b) Budgetary Deficit
(a) Corporation Tax Ab) Estate Tax ‘(c) Monetized Deficit (d) Revenue Deficit
(c) Tax on profession, trade and callings [UP PCS (Main) 2008]
(d) Succession Duty [UP PCS (Main) 2004] 64. compared
As to revenue deficit,TD gears
fiscaldeficit will always
53. Which of the following statements are true forthe Income nkemain....
Tax in India ? lay Higher (b) Lower
=t Itisa progressive tax. —2° It is a direct tax. (c) Same’ (d) All of three /UP PCS 2008]
3. Itis collected by the State Governments. ~ SE: Who had suggested an imposition of expenditure tax in
4. Itis a proportional tax. India for firsttime?
Codes : (a)
(a) Kalechi 4by Kaldor
(a) Only 1 b) Only 1 and 2 (c) R.J. Chelliah (d) Gautam Mathur
(c) 1,2and3 (d) 2,3 and 4 [UP PCS (Pre) 2010]
[UP PCS (Main) 2004] 66. If interest payment is added to primary deficit, it is
equivalent to:
"Commission in i India ? (a) Budget deficit 4b} Fiscal deficit
“(a) . Devolution of Income Tax (c) Revenue deficit (d) Deficit financing
(b) Devolution of Excise Duty [UP PCS (Pre) 2010]
(c) Award of grants-in-aid i [Link] VWealth tax first introducediin India ?
(d)- Devolution of Trade Tax [UP PCS (Main) 2004] (a) 1948 by 1957 (c) 1976 "(dy 1991
[MP PSC (Pre) 2004]
55. Which one of the following sets_ of :sources of revenue
belongs to the Union Government alone ?nomial
68. The recommendations of Kelkar Task Force is associated
(a) Gift tax, Holding tax = (b) Sales tax, Income tax with.:
(a) Banking (6b) Taxes
(c) Wealth tax, Land revenue
(c) Foreign Investments (d) Business
¢d) Custom duties, Corporation tax /UP PCS (Main) 2005]
[MP PSC (Pre) 2004; WB PSC (Pre) 2004]
56. Which one of the following is NOT related with income 69. Which of the following deficit gives major contribution
_from corporate sector in IIndia ke to total deficit of Governmentof India ?
(a) Fringe benefittax (b) Tax on company profit (a) Revenue Deficit (b) Budgetary Deficit
(c) Minimum alternative tax fe) Fiscal Deficit (d) Primary Deficit
(d)}-Capital gains tax [UP PCS (Main) 2005] [MP PSC (Pre) 2004]
57. A larger part of the fiscal deficit in the Union Budget is 70. Which of the following taxes /duties
is NOT under the.
filled by : jurisdiction of the Central Government ?
(a) Tax revenue 42) Domestic borrowing fa) Land Revenue (b) Personal Income Tax
(c) Foreign borrowing (c) Corporate Income Tax (d) Custom Duties
(d) Printing paper currency [UP PCS (Main) 2005] [WB PSC (Pre) 2008]
58. Which one of the following is NOT an objective of fiscal 71. Match List-I with List-II and select the correct answer
policy of Indian Government ? using the codes given below the lists :
(a) Full employment (b) Price stability List-I (Term) List-II (Explanation)
(c) Equitable distribution of wealth and income A. Fiscal Deficit 1. Excess of Total Expenditure over
4d) Regulation of inter-State trade [UP PCS (Pre) 2005] Total Receipts less Borrowings

179
180 Objective General Knowledge

B. Budget Deficit 2. Excess of Total Expenditure over (a) Only 1 (by Only 2
Total Receipts (c) Both 1 and 2 (d) Neither 1 nor 2
C. Revenue Deficit 3. Excess of Revenue Expenditure [UPSC 2003]
over Revenue Receipts Ze Fiscal Responsibility and _Budget Management Act
D. Primary Deficit 4. Excess of Total Expenditure over
2 aii =
(FRBMA) concerns :
Total Receipts less Borrowings “(a) Fiscal deficit only (b) Revenue deficit only
and Interest Payments -(e) Both fiscal deficit and revenue deficit
Code: A B e D (d) Neither fiscal deficit nor revenue deficit/UPSC 2006]
_) 1 9 3 4 Ie Consider the following :
(b) 1 2 4 3 -t. Fringe Benefit Tax —2. Interest Tax
(c) 4 3 2 1 ~23- Securities Transaction Tax
(d) 4 3 1 2 [UPSC 2001] Which of the above mentioned
is / are Direct Tax / Taxes ?
f2. Consider the following taxes : (a) lonly (b) Land 3
1. Corporation tax —2-” Custom duty (c) 2and3 fdy 1,2and3 [UPSC 2009]
3. Wealth tax _4-~ Excise duty 78. Which one of the following is NOT a feature of ‘Value
Whichof these is/are indirect
taxes ? Added Tax’ (VAT) eine
(a) 1 only -b) 2and 4 (a) Itisaa multi-point destination-based system of taxation
(c) land3 (d) 2and3 /UPSC 2001] (b) It is a tax levied on value addition at each stage of
73. Which of the following committees examined and transaction in the production-distribution chain
suggested Financial Sector Reforms ? (c)
Itisataxonthe final consumption of goods orservices
fa) Abid Hussain Committee and must ultimately be borne by the consumer
(b) Bhagwati Committee Ad) It is basically a subject of the Central Government
fey Chelliah Committee and the State Government are only a facilitator for
' its successful implementation. [UPSC 2009]
(d) Narsimhan Committee [UPSC 2001]
The Kelkar proposalswhich were in the news recently Z9. Which of the following is/are among the noticeable
74.
features of the recommendations of the Thirteenth
were the : pee Finance Commission ?
(a) recommendations for reforms in the power sector
(b) recommendations for tax reforms 1. A design for the Goods and Services Tax, and a
(c) guidelines for the privatization of public sector compensation package linked to adherence to the
undertakings proposed design
(d) guidelines for reducing vehicular pollution and the 2. A design for the creation of lakhs of jobs in the next
promoting of CNG use [UPSC 2003]
ten years in consonance with India's demographic
dividend
75. Consider the following statements : 3. Devolution of a specified share of central taxes to
In India, stamp duties on financial transactions are : local bodies as grants
1. leavied and collected by the State Government Select the correct answer using the codes given below :
2. appropriated by the Union Government Jay 1 only (b) 2 and 3 only
Which of these statements is/are correct ? (c) land3 tial (d) 1,2and3 /UPSC 2012]

a 2 (@) 8 ¢3
2D. ©
2}.
6 ob)
58. (d)
- @)
Pa Pansies Trade
(d) The currency of any other country as determined by
A.
Ta)" To pr
aoe in bound tourism. the International Monetary Fund {SSC Grad. 2006]
46) To make ‘Made in India’ a lebel of quality 3. The practice _of
of selling goods itina foreign country ata
(c) To organise trade fairs Pricebelow their domestic selling price is called:
(d) To provide venture capital to IT sector (a)y Diplomacy (b) Discrimination
[SSC Grad. 2003] fey’ Dumping (d) Double pricing
Zs Foreign exchange rate means the rate at which..the
[SSC Sec. Off, (Aud.) 2006]
currency of one country can be traded for : 4. of :
_A Trade Policy consists
fa) The currency of any other country in the foreign fa) Export-Import Policy (b) Licencing Policy
exchange market (c) Foreign Exchange Policy
(b) US Dollar, which is the strongest currency in any (d) Balance of Payment Policy [SSC Mat. 2008]
foreign exchange market eA _The World Trade Organisation (WTO) was formed in :
(c) A fixed basket of currencies consisting of Dollar, Yen “(a) 1991 (by 1995 (ec) 1997 (d)1) 1999-
and Pound [SSC Mat. 2008; WB PSC (Pre) 2008; TN PSC (Pre) 2009]
 Indian Economy 181

6. FERA in India has been replaced by : 16. Which one of the following sequences is in correct
(a) FEPA sy FEMA (c) FENA_ (d) FETA chronological order that ultimately led to the setting up
[SSC Tax Assit. 2008; SSC DEO 2009] of World Trade Organisation (WTO) ?
=% The National Institute for Agriculture Marketing (NIAM) : ey GATT, Uruguay Rounds, Dunkel Draft, Marrakesh
fay Jaipur (b) New Delhi Treaty
(c) Nagpur (d) Hyderabad /SSC 2008] (b) GATT, Dunkel Draft, Uruguay Rounds, Marrakesh
8. TRIPS a the term associated
with : ' Treaty
(a) IMF (by WTO (c) IBRD (d) IDA (c) Uruguay Rounds, GATT, Dunkel Draft, Marrakesh
[SSC Grad. 2010] Treaty
9. The exchange of commodities [Link] countries is (d) GATT, Uruguay Rounds, Marrakah Treaty, Dunkel
refer Draft [CDS 2003]
(a) Balance of trade (ey Bilateral trade 2317 In which one of the following places was_Asia’s first
(c) Volume of trade (d) Multilateral trade Export Processing 2Zone (EPZ) set up ? ;
[SSC Grad. 2010] (a) Kandla (b) Cochin
10. Many atime we hear about SEZ innewspaper / magzines. (c) Surat (d) Santa Cruz [CDS 2009]
_What is the full form of SEZ ? 18. In which of the following years was General Agreement
Say Special Economic Zone “() Small Economic Zone on Tarriffs and ‘Trade (GATT) absorbed into the World
(c) Special Enforcement Zone
Trade
Organization (WTO) ?
(d) Service and Economic Zone (a) 1991 (61995 (c) 2000 ~—S(d)- 2005
(e) None of these [CDS 2009]
[SSC Gr. 2006; SBI Clerk 2008; Vijaya Bank PO 2008; BOI PO 2008]
19. Which is known as the third pillarin international
11. Manyatimewecomeacrossaterminfinancialnewspaper economic relations 2
‘Balance of Payments’. What does it really reflect.? (a) IMF (b) World Bank
Sa) It is the statement of receipt from foreign countries Sey WTO (d) GATT/46the BPSC 2004]
and payments made to foreign countries
~ ECGCi is related to :
(b) Itis the statement of the total value of GDP and share
of imports in it in terms of the percentage of GDP (a) Export promotion
(c) Itis the statement of total receipts of the Government £e) Export financing and insurance
and its share in total GDP in terms of percentage (c) Export quality certification
(d) Only a and b (d) Export statistics publication [UP PCS 2003]
(e) Alla, bandc [Bank of Maharashtra PO 2007] 21. Which one of the following institution is related to export.
12. We very frequently read about Special Economic Zones financing and insurance ?.
(SEZs) innewspapers. These SEZs were established ‘with “fa ECGC ean: ey ii
which of the following objectives ? i (c) CBDT (d) IDBI [UP PCS (M) 2005]
A. Toattract foreign investment directly 22. Free Trade Policy refers to a policy where there is :
2. To protect domestic market from direct competition absent of tariff
from multinationals (b) restriction on the movement of goods
3. To provide more capital to agricultural and allied (c) existence of anti-dumping policy
activities (d) encouragement for balances growth [UP PCS (M) 2005]
fa) Only 1 (b) Only 2 23. The tax on 1 import and export is known as :
(c) Only 3 (d) All1,2 and3 (a) “Income tax (b) Trade tax
(e) None of these [Bank of Baroda PO 2008] €) Custom tax (d) None of these
13. “Trade Gap’ means : [UP PCS (Pre) 2006]
Gap between total imports and total exports Serer
(b) Gap between total GDP and total consumption Be Services (b) Pichibited goods
(c) Gap between available liquidity and expected (c) Unrecorded sind
demand (d) Goods through smuggling /UP PCS (P) 2006; (M) 2007]
(d) Gap between budgeted revenue collection and actual
25. The headquarter of World Trade Organisation (WTO) are
collection of the same
at:
(e) None of these [Canara Bank PO 2009]
(a) New York 4} Geneva
14. Specially developed economic zones in India where (c) Rome (d) Doha [UP PCS (M) 2007]
some of the economic laws and restrictions of ‘the and
are relaxed with the purpose of giving incentives. ‘to 26. Freetrade zone is one :
fay where trade is done without restriction
‘investors, are commonly [Link] :
(b) where any enterpreneur is free to start industries
fe) Special Economic Zone (b) Preferential Zones (c) where infrastructural facilities were provided free to
(c) Industrial Parks (d) Economic corridors enterpreneurs by the Government
(e) None of these [RBI Grade B Officer 2009] (d) where industries are free from excise duties and
15. ‘MEN Clause’ is one of the main pillars on which : produce for exports [UP PCS (Main) 2007]
fa) WTO is based (b) IMF is based 27. Which among thefollowing is the largest trading
(c) IBRD is based (d) IDAis based [NDA 2000] Government company. of India?

- 181
 182 . Objective General Knowledge

(a) Food Corporation of India (a) The Foreign Exchange Regulating Act (FERA) was
(be) Mineral and Metal Trading Corporation replaced by Foreign Exchange Management Act
(c) Khadi and Village Industries Corporation (FEMA) in the year 2001
(d) Trade Fair Authority of India /UP PCS (Main) 2008] p) FERA was given a sunset clause of one year till 31st
_28. SEZ actwas passed by the Parliament in the year.: May, 2002 to enable Enforcement Directorate to
— “(a) 2004 éey 2005 complete the investigation of pending issues
(c) 2006 (d) None of these (c) Under FEMA, violation of foreign exchange rules has
[UP PCS (Pre) 2009] ceased to be a criminal offence
29: Ba
Balance of payment includes: (d) As per the new dispensation, Enforcement
cay Visible Trade ~(by Invisible Trade Directorate can arrest and prosecute the people for
ey Debts 4d) All of these the violation of foreign exchange rule /UPSC 2003]
[UP PCS (Pre) 2009] 37. Asser (A): Balance of payment represents better picture
30. A‘Letter of Credit’ is produced by : of a country economic transactions with the
(a) Anexporter — (b) An importer rest of the world than balance of Trade.
ey Both by exporter and importer Reas (R) : Balance of payment takes into account the
(d) Shipping company [UP PCS (Pre) 2009] exchange of both visible and invisible items
31. Which_ off_the following... organisations _ is involved in whereas balance of trade does not.
providing t the insurance against various risks to the Codes:
_exporters ? say Both Aand Rare true and Ris the correct explanation
(a) Reserve Bank of India (RBI) of A
(b) State Trading Corporation of India (STCI) (b) BothAand Raretrue but Risnota correct explanation
(c) EXIM Bank of A
4d) Export Credit and Guarantee Corporation (ECGC) (c) Ais true but R is false
[UP PCS (Main) 2009] (d) Ais false but R is true [UPSC 2006]
Be Special Economic Zone (SEZ) Act became effective in : 38. NAMA-11 group of countries frequently appears in the
(a) 2004 (b) 2005 fey 2006 (d) 2007 news in the context of the affairs of “which one of the
[UP PCS (Pre) 2010] followings?
eas: present as per government rulings, the maximum area (a) Nuclear Supplier Group (b) World Bank
allowed for. ‘a Special Ecc onomic Zone (SEZ) iis: (c) World Economic Forum
(a) 2000 hectares (b) 3000 hectares Ld) World Trade Organisation [UPSC 2009]
(c) 4000 hectares ¢a&j 5000 hectares 39. The SEZ Act 2005, [Link] into effect in Feb muary,
[WB PSC (Pre) 2008] 2006 has certain objectives. a this context, consider the
34. Assertion (A): The rate of growth of India’s exports _following;
has shown an appreciable increase after _-*- Development of infrastructure facilities
1991. _2- Promotion of investment from foreign sources
Reason (R) : The Government of India has resorted _- Promotion of exports of services only
to devaluation. Which of the above are objectives of this Act ?
Codes: (a) 1 and 2 only (b) 3 only
ay Both Aand R are true and Ris the correct explanation (c) 2 and 3 only Ad) 1,2and3 /[UPSC 2010]
of A 40. Which of the following would include Foreign Direct
(b) BothAand Raretrue but Risnotacorrect explanation Investement in India ?
of A 1. Subsidiaries of foreign companies in India
(c) Ais true but R is false 2. Majority foreign equity holding in Indian companies
(d) Ais false but R is true [UPSC 2000] 3. Companies exclusively financed by foreign companies
BE. ° The earlier name of the WTO are: 4. Portfolio investment
(a) UNCTAD (by GATT (c) UNIDO (d) OECD Select the correct answer using the codes given below :
[UPSC 2001} (a) 1,23 and 4 (b) 2 and 4 only
36. Which one of the following statements is correct with (c) 1 and 3 only {dy 1, 2 and 3 only
reference to FEMA in India ? [UPSC 2012]

a Answers
a os (&) 6. () Toa 8 &) 9% &) A
@ 18.) 19. © 20. (b) 2. 4a) 22a)
ms 31. @) 32. ao) 33. (d)_ 34. 2 35.

a1 International Cipastaatiaet:
(IMF, IBRD/World Bank etc. )
1. Special Drawing Rights (SDR) facility is available at : (c) International Development Association (IDA)
(a) International Monetary Fund (IMF) (d) Organisation of Economic Co-operation and
(b) International Bank for Reconstruction and Development (OECD)
Development (IBRD) / World Bank [SSC Grad. 2003; SBI PO 2010]
 Indian Economy 183

ze IMF was,.established_tq,.meet [Link] (b) IMF promotes international monetary operation

acta
(c) The World Bank promotes long term economic
Ave Promoting international monetary co-operation development and poverty reduction
2. Expanding international trade fd) Alla, bande
3: Lessening the disequilibrium in balance of trade (e) None of these [Bank of Baroda PO 2008]
4. Avoiding competitive exchange depreciations
EL, _Where_is the headquarter of International Bank for,
Codes:
(b) 1,3 and4 “Reconstruction at
and Development (II(IBRD) loc:
located /2
fa) 1,2 and3
(c) 2and 4 (d) 1,2,3and4 (a) Geneva 46) Washington D.C.
[SSC Grad, 2005] (c) London (d) Paris
‘World Bank’ is also known as: [NDA 2008; UP PCS (Main) 2007]
“(a) International Bank for Reconstruction and . The term ‘Paper Gold’ means :
Development (a) Special Drawing Rights (SDR) of the IMF
(b) International Bank for Rehabiliation and (b) Special accomodation facility of the World Bank
Development (c) Currencies still on Gold standard
(c) International Bank for Refinance and Development (d) Deficit Financing [UP PCS (Main) 2004]
(d) International Bank for Research and Development
. In which year was the World Bank formed ?
[SSC Sec. Off. (Atud.) 2007]
The capital of IMF is made up by contribution of the :
(a) 1945 (b) 1956
Ya) credit (b) deficit financing
(c) 1960 (d) 1988
Ae) member nations (d) borrowings [MP PSC (Pre) 2004]
[SSC Grad. 2008] 14. Consider the following organisations :
— helps countries with loans for the purpose -1? International Bank for Reconstruction | and
Development (IBRD)
“fey Reconstruction and development <2.’ International Finance Corporation (IFC)
(b) stimulating private investment ~3. International Fund for Agricultural Development
(c) tackling foreign exchange crises (IFAD)
(d) meeting deficits in government budget wt International Monetary Fund (IMF) ©
[SSC Sec. Off. (Aud.) 2008]
Which of these are agencies of the United Nations ?
S.D.R. stands for : . Ya) 1 and 2 (b) 2and 3
“fa) Special Drawing Rights (b) State Drawing Rights (c) 3and 4 Ay Ae Ae aad *
(c) Special Dollar Rights (d) Specific Dollar Rights [UPSC 2001]
[SSC CPO SI 2008]
15. “World Development Report’ is annual publication of :
‘The Doing Business Report’ is prepared by which of the .
following organisations every year ?
(ey International Bank of Reconstruction and
a) World Bank Development (IBRD) / World Bank
(b) Asian Development Bank (ADB) (b) United Nations Development Programme NEE)
(c) International Monetary Fund (IMF) (c) World Trade Organisation (WTO)
(d) World Trade Organisation (WTO) (d) International Monetary Fund (IMF)
(e) None of these [SBI Clerk 2009] [UPSC 2002; Canara Bank PO 2009;
Indian Overseas Bank PO 2009]
The head office of the Asian Development Bank (ADB),
is in: 16. How is the United Nation Monetary and Financial
fay Manila (b) Jakarta (c) Honululu Conference where in the agreements were signed to set
(d) Nairobi (e) Tokyo [Central Bank of India PO 2006] up IIBRD, GATT and IMF, commonly known ?
‘The Doing Business Report’, an international publication (a) Bandug Conference
is published every year "byywhich of the following (b) Bretton Woods Conference
organisation (s)? fey Versailles Conference
1. World Bank 2. WTO 3. RBI (d) Yalta Conference [UPSC 2008]
fa) Only 1 (b) Only 2 17. Regarding the International Monetary Fund (IMF), which
(c) Only 3 (d) Both 1 and 2 one of the following [Link] correct ?
(e) All1,2and3 [NABARD PO 2008] (a) It can grant loans to any country
10. The IMF and the World Bank were conceived: as (b) It can grant loans to only development countries
institutions to : fey It grants loans to only member countries
(a) strengthen international economic co-operation and (d) It can grant loans to the Central Bank of a country
to help create a more stable and pRPAperae global [UPSC 2011]
economy

| Answers #
 184 Objective General Knowledge

_25- Miscellaneous
1. _Production is at socially ideal level under :_ AS—Who said, ‘Economics is the Science of Wealth’?.
(a) Monopolistic Competition fa)a) Adam Smith (b) Robbin
(b) Monopoly (c) J. S. Mill (d) Keynes [SSC Mat. 2008]
(c) Oligopolistic Competition 15._ Production function expresses:_
- fd) Perfect Competition [SSC Grad. 2006] (a) technological relationship between physical inputs
2. Which one of the following is a oe earning ? and output
e “(d) Interest financial relationship between physical inputs and
[SSC Grad. — output ;
(c) relationship between finance and technology
~“(b) ree (d) relationship between factors of production
a Monopolistic Cui peioh [SSC Tax. Assit. 2008]
4c) Monopoly [SSC Grad. 2006] ‘Interestis a reward forparting with liquidity fora‘a specific
“ Who says: ‘Thee propensity to consume is stable in the “ period’ is according to:
___short run’ - {a) Keynes (b) Marshall
~ £2) Keynes (b) Hicks (c) Arrow (d) Stiglitz (c) Haberler (d) Ohlin
[SSC Grad. 2006] [SSC Tax. Assit. 2008]

5. _The supply ofa commodity does NOT depend directly 17. Extension or contraction of quantity demanded of a
upon : commodity is a result of change in the :
“a) Cost of production 44) unit price of the commodity
(b) Price of the commodity (b) income of the consumer
(c) Technology of production (c) tastes of the consumer
(cd) Demand for the commodity [SSC Grad. 2006] (d) climate of the region [SSC Tax Assit: 2008]
6. _ Capital information iin an [Link] on : 18. For price [Link], the elasticity
of
(a) Total income (b) Total demand “demand for the product in, the two markets should. be:
Ac) Total savings (d) Total production “(a) same “_(6) different
[SSC Sec. Off. (Aud.) 2006] (c) constant (d) zero
[SSC Tax Assit. 2008]
7. ,..Price cost is equal to:
* a) “Variable cost plus administrative cost
(b) Variable cost plus fixed cost “@) effect of change itin ‘price “of a commodity on its
(c) Variable cost only demand
(d) Fixed cost only [SSC Sec. Off. (Aud.) 2006] _b) effect of change in demand of a commodity on its
8. An expenditure that has been made and cannot be price
(c) effect of change in demand of a commodity over the
recovered is called ;,
supply of its substitute
‘(ay Variable’ cost (b) Opportunity cost
(d) None of the above [SSC Tax Assit. 2008]
4€) Sunk cost (d) Operational cost
[SSC Sec. Off. (Aud.) 2006] 20. When | average cost of production | falls, marginal cost of
Pa v
“Who propounded the ‘market law’ ? —production [Link].:.
(a) Adam Smith ob) JB. Say (a) rising (b) falling
(c) T.R. Malthus (d) David Ricardo (c) greater than the average cost
[ssc Sec. Off, (Aud. ) 2006] Jd) less than the average cost [SSC CPO SI 2008]
21, A fall in demand or rise in supply of a commodity :
economist. Recall
(a) increases the price of that commodity
(a) David Ricardo (b) John Stuart Mill by decreases the price of that commodity
(c) Thomas Malthus 4d) John Maynard Keynes (c) neutralises the changes in the price
[SSC Sec. Off. (Aud.) 2007] (d) determines the price elasticity [SSC DEO 2008]
11. Pro. Amartiya Sen was awarded Nobel Prize for his 22. An.n exceptional. [Link] is one that moves :
“contribution : to the fieldof :. Sue Sa) upward to the right (b) downward to the right
“"(a) Food and famines (b) Welfare economics (c) horizontally
(c) Indian economy (d) Poverty (d) vertically [SSC Tax Assit. 2009]
[SSC Sec. Off. (Aud.) 2007] 23. Production function explains the relationship between :
12. Nobel Prize_in. which field _is NOT paid_out of the fay
“(a) initial inputs and ultimate output
endowment set up by Dr. Alfred Nobel ?2? (b) inputs and ultimate consumption
(a) “Peace (b) Medicine (c) output and consumption
(c) Chemistry 4d) Economics (d) output and exports [SSC Tax Assit. 2009]
[SSC Mat. 2008] 24. Revealed Preference Theory was propounded by :
13. What is needed for creating demand ? : (a), Adam Smith (b) Marshall
(a) Production fe) Price P.A. Samuelson (da) J.S. Mill
(c) Income (d) Import [SSC Mat. 2008] [SSC Tax Assit. 2009]
 Indian Economy : 185

25. In Economics the terms ‘Utility’ and.“Usefulness’ | have: 37., Labour Intensive Technique would get [Link] a:
“(a) same meaning -b) different meaning — key Labour Surplus Economy
(c) opposite meaning (d) none of these (b) Capital Surplus Economy
[SSC Tax Assit. 2009] (c) Developed Economy ‘
26. Laissez-faire is afeature of ; (d) Developing Economy {SSC CPO SI 2009]
(a) Socialism (b) Communism 38. Which one of the following would NOT constitute an
Ac) Capitalism (d) Mixed economy _.economic ¢ activity.?
[SSC Tax Assit. 2009] (a) A teacher teaching students in his class
27. In which_type of competition does Marginal Revenue _ (b) A teacher teaching students under Sarva Shiksha
“Curve coincide with Average "Revenue <Curve ? Abhiyan
“(a) Monopoly (c) A teacher providing cunsultancy services from his
(b) Imperfect Competition residence
ey Perfect Competition Ady A teacher teaching his own daughter at home
(d) Monopolistic Competition [SSC Tax Assit. 2009] [SSC CPO SI 2009]
39._A ‘want’ becomes a ‘demand’ only when it is backed by
28. According
to J.A. Schumpeter, entrepreneurs are entitled,
to enjoy the profit for their ...... activities. _the
Ae) innovative (b) risk taking ‘Ability to purchase (b) Necessity to buy
(c) risk averting (d) hard work (c) Desire to buy (d) Utility of the product
[SSC Tax Assit. 2009} [SSC Grad. 2010]

29. Demonstration Effect means : A “The terms avticro Economics’ _and_“Macro Economics’ _
“(a) effect of advertisement “were coined. DYericacxome _
—(b) imitating effect of consumption “(a) Alfred Marshall (b) Ragner Nurkse
(c) effect of entertainment te} Ragner Frisch (d) J. M. Keynes
[SSC Grad. 2010]
(d) effect of an experiment [SSC Tax Assit. 2009]
30. Homogeneous product is a feature of : apt: ‘Economics is what it ought to be’. This statement refer
to:
“(ay Imperfect market “(b) Monopoly
(c) Oligopoly Ad Perfect competition
=.) Normative Economics (b) Positive Economics
~ * [SSC Tax Assit. 2009] (c) Monetary Economics (d) Fiscal Economics
[SSC Grad. 2010]
31. The relationship between the value of money and_ the
42, The excess of price—a person is to pay rather than forego .
“price level iin an economy. is: Be
“(a) Direct bo} Inverse
_the ‘consumption of the commodity is called:
“(a) Price (b) Profit
(c) Proportional (d) Stable [SSC DEO 2009]
ey Producer’s surplus (d) Consumer’s surplus
32. Nobel Prize winning Indian Amartya Sen is oes for [SSC Grad. 2010]
chis work in which area? 43. When the price of a commodity falls, we can expect :
“(a) “Physics Eo (a) the supply of it to increase
(b) Environmental Protection (b) the demand for it to fall
(c) Chemistry (c) the demand for it to stay constant
£e&) Economics [SSC CPO SI 2009]
4d) the demand for it to increase [SSC Sec. Off, 2010]
33. If two commodities are _complements, tthen their cross- 44. Utility in economics means the capacit to:
_price. elasticity iis: (a) provide comforts “” (b) earn in income
(a) Zero (b) Positive 4e)} satisfy human wants (d) satisfy human motives
PS) Negative (d) Imaginary number [RRB Mahendru (Patna) TC 2006]
; [SSC CPO ST 2009]
45. Many times we read in financial newspaper, FIL. What is,
34. Opportunity cost of production of a commodity is : __ the fullll form n_of
o} FIL. 2
(a) The cost that the firm could have incurred when a (a) Final Investment in India
different technique was adopted (b) Foreign Investment in India
(b) The cost that the firm could have incurred under a (c) Formal Investment in India
different method of production (d) Fair Institutional Investment
(c) The actual cost incurred dey Foreign Institutional Investment
(dy The next best alternative output sacrificed [SBI Associate Bank Clerk 2008]
[SSC CPO SI 2009]
* 46. Many times we read a term ‘Free Market’ in newspapers.
35. Surplus earned by a factor other than land in the short What does it mean ? [Pick up the correct statement(s).]
eriod is
i ; referred { to as: 1. Itis a market where pricing is driven by the laws of
(a) Economic rent (b) Net rent supply and demand.
(c} Quasi-rent (d) Super-normal rent 2. In free market things are available without restraints
[SSC CPO SI 2009}
of the government.
36. Which from the following is NOT true when the interest 3. In such market goods are free from extraneous
rate in the economy goes up ? influences such as buffer or quotas.
(a) Saving increases (b) Lending decreases (a) Only 1 (b) Only 2
(c) Cost of production increases (c) Only 3 4da)Both 1 and 2
) Return on capital increases [SSC CPO ST 2009] (e) All1,2 and3 [Corporation Bank PO 2006]
 186 Objective General Knowledge

47. What happens when an economy goes in the grip of - 57, Which one of the following situations makes a firm most
“recession. ?. efficient 2 AMEE Se
“1. GDP growth slows down (a) Falling average cost (b) Raising average cost
- 2. People lose their jobs (c) Constant average cost 4c} Lowest average cost
3. Foreign exchange reserve goes up substantially as [CDS 2000]
lot of loans/ grants start pouring in. 58. C. Rangachari comuntee! is associated with which one
(a) Only 1 (b) Only 2
(c) Only 3 ay Only 1 and 2 Pricing and taxation of Petroleum Products
(e) None of these [Bank of Maharashtra PO 2008] (b) Estimation of National Income
48. Which of the following committees recommended the (c) Tax Structure
revival of Co-operative Credit Institution in States ? (d) Estimation of Money Supply [CDS 2008]
say Vaidyanathan Committee 59. Who. [Link] 1998 Nobel [Link] Economics ?
(b) Rangrajan Committee (c) Sachchar Committee (a) Solow (b) Marshall
(d) Rakesh Mohan Committee ey Amartya Sen (d) Paul Samuelson
(e) None of these [Bank of Maharashtra PO 2008] [aie BPSC et
49. When the growth of GDP in a country slows down
“suddenly, people start losing their:
ir jobs and the situation
continues. for several weeks, what name is given to this __ given by:
“state of economy 2 4a) Amartya Sen (b) Yashwant Sinha
“(a) Inflation -b} Recession (c) Atal Behari Vajpayee (d) Man Mohan Singh
(c) Deflation (d) Economic Boom [UP PCS Special (Pre) 2004]
(e) None of these [State Bank of India PO 2008] 61. J. J. Irani Committee has been set up to suggest changes
Fail “Who amongst the following economists gave the concept “ao . <<
/ gt’ economics of sale’ which says, ‘many goods and ““(a) Indian Telegraph Act (b) Cable Act
services can be produced 1 more cheaply i in long series’aati"ee ey Companies Act (d) Patent Act
“(a) EdwardC. Prescott (b) Amartya Sen [UP PCS (Main) 2005]
(c) GaryS. Bekher (d) EdmundS. Phelps 62. ‘Golden Hand Shake Scheme’ in India is related with :
fey Paul Krugman [Canara Bank PO 2009] ay Voluntary Retirement ““(b) Indian Gold Dealers *
51. In the present context of socio-economic development (c) Foreign Gold Dealers in India
the concept of ‘meeting the needs of the present without (d) Promoting Trade in Gold [UP PCS (Main) 2007]
compromising the ability of future generations to meet 63. Given below are a few abbreviations and the areas with
their needs’ is popularly known as the concept of : which they are associated. Match them properly using
4a) Sustainable Development the given codes :
(b) Uniform Growth (c) Target-driven Growth List-I List-II
(d) No risk-No gain (e) Social Viability (Abbreviations) (Areas)
[NABARD Bank Officers 2009; RBI Grade B Officer 2009] A. OGL, FOB 1. Employment
52. .Which of the following terms is NOT used in Economics ? B. SJRY, TRYSEM '2. External Trade
(a) Balance of Trade “(b) Break Even C. WPI, CPI 3. Banking
(c) Fiscal Deficit (d) Capital Account D. oe SLR 4. Index Numbers
fe) Centrifugal Force [Corporation Bank PO 2010] Code: B C D
53. Which of tthe following terms is NOT used i in the > world. Say z 1 4 3
_of economics / finance ? (b) 2 4 3 J
“(a) Sinking Fund (b) Open Door Policy (c) 4 3 2 1
(c) Devaluation Ae) Privilege Motion (d) 3 2 1 4
(e) Third World _[NABARD Bank Officers 2010]
[UP PCS (Main) 2007]
64. Who was the author of the book ‘India’s Economic
54. Muhammad. Yunus_of Bangladesh who,was awarded ‘Policy ; The Gandhian Bluee Print’ ?
‘Nobel Prize a few years back is a famous :
“ (a) Author (b) Scientist
a) Chaudhary Charan Singh(b) Jai Prakash Narayan
(c) Man Mohan Singh
(c) Social Worker Ad) Economist
(d) Acharya Vinoba Bhave [UP PCS (Main) 2008]
(e) None of these [NABARD Bank Officers 2010]
65. Under Gadgil-Mukerjee formula the higher weithage is
55. Who among the following was the chairman of the high
‘evel commission on competition policy. ‘and, law 2 _ given to.:, fee a
“(a) ‘Performance (b) Per Capita Income
“(a) Bimal Jalan (b) C. Rangachari
fey Population (d) Special Problems
(c) Y.V. Reddy {d&) S.V.S. Raghavan [UP PCS (Main) 2008]
[NDA 2009]
66. Which of the following is NOT a measure of reducing
56. A community’s stock of wealth is accounted for by the :
inequalities ?
A&) Aggregate of capital and consumer goods
(a) Minimum Needs Programme
(b) Gross investment minus depreciation
Ab) Liberalisation of economy
(c) Standard of living of the people
(c) Taxation (d) Land reforms
(d) Net increase in invisible and intangible goods [UP PCS (Main) 2008; UP PCS (Pre) 2009]
[CDS 2000]
 Indian Economy 187

67. Which of the following is NOT a part of the ‘Second- Code: A B € D

generation of Economic Refo one identified “by “the wy 1 2 3 4
“Government ? a baa AGRIC, (b) uf 2 4 3
(a) Ojil-sector Reforms (b) Publiedentor Reforms (c) 2 1 4 3
(c) Reform of Government and Public Institutions (d) 2 i 3 4 [UPSC 2000
-(d) Legal System Reforms [UP PCS (Main) 2009] 76. Match List-I with List-II and select the correct answer
68,Motivations given to Multinational companies in India using the codes given below the lists :
means encouragement of,: List-I List-I]
—(a) Privatization Policy “(b) Globalization Policy A. United Nations Develop- 1. Human Development
e) Liberalization Policy Ad) All ofthese ment Programme (UNDP) Report
[MP PSC (Pre) 2004]
B.
National Council of 2. India Human
69. Who is called the Bm of liberalization of, Indian Applied Economic Development Report
“économy,? Research : ;
-(a) [Link] Mohan Singh (b) P.V. Narsimha Rao
C. World Bank/IBRD 3. World Development
(c) Dr. Bimal Jalan (d) P. Chidambaram
[MP PSC (Pre) 2004]
: Report
D. Indira Gandhi Institute 4. India Development
70, Public Distribution System (PDS) is aimed at = of Development Research Report
~(a) Providing food security tothe poor Code: A .- B Cc D
_(by To prevent hoarding and black-marketing
ay 1 2 3 4
_fe) To prevent overcharging by traders
(b) 1 2 4 3
Ady~-All of these [MP PSC (Pre) 2008]
(c) 2 1 4 3
71. Who among the following released ‘Citizens guide to (d) 2 1 3 4 [UPSC 2000]
_fight «corruption’? ~ =
77. Consider the following financial institution of India :
~(a) Ministry of Family Welfare
(b) Consumer Co-operative Societies
at ‘Industrial Finance Corporation of India (IFCI)
(c) Central Vigilence Commission Industrial Credit and Investment Corporation of
Ad) Transparency International [MP PSC (Pre) 2008] _India (ICICI)
. Industrial Development Bank of India (IDBI)
~ Who is called the ‘Father of Modern Economics’ ?
Ae National Bank for Agriculture and Rural
‘S Adam Smith (b) Marshall” Development (NABARD)
(c) Keynes (d) Robbins
[MP PSC (Pre) 2010] The correct chronological sequence of the establishment
of these institution is :
73. Read the following suEeMentS carefully:
Aey 1,2,3,4 (b) 2,3,4,1
1. In1991 policy of Economicliberalization was adopted
(c) 3,4,1,2 (d) 4,1, 2,3 [UPSC 2002]
in India.
2. Foreign currency market and Foreign Investment 78. A country is said to be a debt trap if :
sectors were promoted. (a) it has to borrow to make interest payments on
3. Import of foreign goods was: freed from outstanding loans
prohibition. by it has to borrow to make interest payments on to
Select the answer on the basis of following codes : standing loans
(a) 1 and 2 are correct (b) 1 and 3 are correct (c) it has been refused loans or aid by creditors abroad
(c) 2 and 3 are correct fe) 1,2 and 3 are correct (d) the World Bank charges a very high rate of interest
[CPSC (Pre) 2008] on outstanding as well as new loans [UPSC 2002]
GB The book ‘The Argumentative Indian’ is,written by. 79. Which one of the following committees 1 recommended
(a) Mulk Raj Anand (b) Dan Brown “the ‘abdlition of
¢ reservation of items for the. small” scale™
(c) Bimal Jalan 44) Amartya Sen “sector in1 industry ae ii
[WB PSC (Pre) 2007] Wess Abid Hussain Committee
75. Match List-I with List-II and select the correct answer (b) Narsimhan Committee
. using the codes given below the lists : (c) Nayak Committee
List-I_. List-II (d) Rakesh Mohan Committee [UPSC 2002]
A. Boom 1. Business activity at high level with 80. Consider the following statements :
increasing income, output and
wk: The first telegraph line in India was laid between
employment at macro level Kolkata (formerly Calcutta) and Dimond Harbour.
B. Recession 2 Gradual fall of income, output and
«2 The first Export Processing Zone in India was set up
employment with business activity
in Kandla.
in a low gear
Which of the statement(s) given above is/are correct ?
C. Depression 3. Unprecedentated level of under
(a) 1 only (b) 2 only
employment and unemployment,
ec} Both 1 and 2 (d) Neither 1 nor 2
drastic fall in income, output and
employment [UPSC 2009]
D. Recovery 4. Steady rise in the general level 81. In the context of independent India’s economy, which
of pricess, income, output and “one of the “following was the earliest “event, to take
employment ere ? a
¢
188 Objective General Knowledge

(a) Nationalization of Insurance companies 87. Karl Marx explained the process of [Link] with_
(b) Nationalization of State Bank of India “the help. of which one
Seen ea of the following ttheories ?e
_e) Enactment of Banking Regulation Act (a) Empirical liberalism
(d) Introduction of Eiist Hive Year Plan [UPSC mal (b) Extentialism
(c) Darwin’s theory of evolution
A@) Dialectical materialism [UPSC 2011]
“economies. like UK. and France. “Why. ? 88. In terms of economy, the visit by foreign nationals
“(a) India has preference for certain countries as regards to witness the XIX Commonwealth Games in India
receiving FDI amounted to :
{by India has double taxation avoidance agreement with ety Export (b) Import
Mauritius (c) Production (d) Consumption
(c) Most citizens of Mauritius have ethnic identity with [UPSC 2011]
India and so they feel secure to invest in India 89. Fiscal Policy in India is formulated by—
(d) Impending dangers of global climatic change prompt (a) The Reserve Bank of India
Mauritius to make huge investments in India (b) The Planning Commission
[UPSC 2010] (co) The Finance Ministry
83. Consider the following countries : (d) The Securities and Exchange Board of India
li. Brazil ~—2>-" Mexico 3s South Africa [CDS 2012]
According to UNCTAD, which of the above. is/are 90. Which of the following occupations are included under
categorized as5 ‘Emerging Economics’ 2 secondary sector as per the national income accounts ?
“Gayton (b) Tand 3 only 1. Manufacturing
(c) 2 and
3 only 44) 1,2and3 /UPSC 2010] 2. Construction
84. In the context of Indian economy, consider the following 3. Gas and water supply
pairs : 4. Mining and quarrying
Select the correct answer using the codes given
Term Most appropriate description
below—
1. Melt down Fall in stock prices (a) 1,2,3 and4 (b) 1,2 and 4 only
2. Recession Fall in growth rate fe) 1,2 and 3 only (d) 3 and 4 only [CDS 2013]
3. Slow down Fall in GDP
Which of the pairs given above is/are correctly 91._The Reserve Bank of India regulates the commercial
~ banks i in matterss of: eB
matched ?
(a) 1 only (b) 2 and 3 only -l- Liquidity of assets 2° Branch expansion
(c) land 3 only ¢t) -1,2and3 /UPSC 2010] <3. Merger of banks 4: Winding of banks
85. In India, which of the following is regulated by the Select the correct answer using the codes given
Forward Markets Commission ? below—
(a) Currency Futures Trading tf) 1,2,3 and 4 (b) 2,3 and 4 only
4) Commodities Futures Trading (c) 1,2 and 3 only (d) 1 and 4 only
(c) Equity Futures Trading : [UPSC 2013]
(d) Both Commodities Futures Trading and Financial 92. An increase in the Bank Rate generally indicates that
Futures Trading [UPSC 2010]
86, A‘[Link]’ is an economy in which : i) (a) Market rate of interest is likely to fail
(a) the money supplyis fully controlled (b) Central Bankisnolonger making loans tocommercial
(b) deficit financing takes place banks
(c) only exports take place (c) Central Bank is following an easy money policy
4a} neither exports nor imports take place /[UPSC 2011] Central Bank is following a tight money policy
[UPSC 2013]