1. society
2. work
3. unemployment

ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Economics Test - 12
Date: 09/05/2015
1. Which among the following are correct
about gilt – edged securities?
1) They are securities issued by the
government only
2) They can be issued by any company
listed in a stock exchange in India
3) They are securities which appear gilt –
edged / attractive on the outside but do
not yield high returns over time
Select the correct code:
a) 1 only
b) 1 and 3
c) 2 only
d) None of the above
2. Match List I with List II and select the
correct answer from the codes given below:
List I
List II
A. Visveswaraya Plan
1.
Decentralized
economic structure
and self sufficiency
B. People’s Plan
2. ‘A plan
Economic
Development’
industrialists
for
by
C. Bombay Plan
3. ‘Planned Economy
for India’(1934)
D. The Gandhian plan
4. Agricultural and
consumer
goods
industries through
state
–
owned
industrialization
Codes:
a)
b)
c)
d)
A – 3, B – 4, C – 1, D – 2
A – 4, B – 3, C – 1, D – 2
A – 3, B – 4, C – 2, D – 1
A – 4, B – 3, C – 2, D – 1
Total Question: 100
3. Which of the following is not correct with
respect to approach to the Twelfth Five
Year Plan?
1) ‘Growth with social justice and equity’
is the basic objective of this Plan
2) Improvement in agricultural growth (to
4%) manufacturing sector growth (to
11-12%) are some of its key instruments
3) Health expenditure is to increase form
the current 1.3% of GDP to at least 2%
in the plan period
4) A double – digit GDP growth rate is
targeted
Select the correct codes:
a) 1 and 2
b) 2 and 3
c) 3 and 4
d) 1 and 4
4. Which of the following is correct about
flexi – funds?
1) Flexi – fund, similar to MPLADS, refers
to a development fund which can be
spent by MLAs in their respective
constituencies
2) The concept of flexi – funds came up in
the Eleventh FYP
3) A flexi – fund of Rs. 40,000 crores for
rural development programmers will be
in operation from the next fiscal
onwards
4) Flexi – funds are a positive step
towards preservation of the federalist
structure of the Indian Polity
Select the correct codes:
a) 1 and 2
b) 2 and 4
c) 2 and 3
d) 3 and 4
5. Which of the following statements are not
correct?
a) A situation of twin deficit may or may
not have an adverse impact on exchange
rate
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Economics Test - 12
Date: 09/05/2015
b) However, maintaining a competitive
exchange rate is one of the requisites for
tackling a condition of twin deficit
c) Reduction in the spending on subsidies
and enactment of measures to curb
inflation are also essential for bringing
the two deficits under control
d) Current Account Deficit can be
overcome only through borrowing
6. Match List I with List II and select the
correct answer from the codes given below:
List I
List II
A. Imperative Planning 1. Planning within
the existing Socio –
economic set – up
B. Structural Planning
2. Planning by the
directions of central
authority
C. Planning by
Inducement
3.
Planning
erstwhile
in
D. Functional Planning 4. Planning through
offer
of
market
incentives
Codes:
a)
b)
c)
d)
A – 4, B – 1, C – 2, D – 3
A – 2, B – 3, C – 4, D – 1
A –2, B – 1, C – 4, D – 3
A – 4, B – 3, C – 2, D – 1
7. Consider the following statements related
to economic planning in India:
1) The NDC or Rashtriya Vikas parishad is
the apex organization in the process of
economic planning in India since it has
the authority to review the working of
the National Plan from time to time
Total Question: 100
2) The role of Finance Commission in
India is to devolve funds to states in an
equitable manner and in accordance
with their plan requirements
3) Amount remaining after devolution for
meeting the Planned Expenditure of
states goes into a corpus fund called
National Fund for Planning and
Development and is given to states as
discretionary grants
Which of the above statements is/are correct?
a) 1 only
b) 2 and 3
c) 2 only
d) All the above
8. Consider the following related to GAAR:
1) Expert Committee on GAAR under the
Chairmanship of Dr. Prathasarathi
Shome suggested postponement of
GAAR by three years and non –
application of tax laws with
retrospective effect
2) Where an F2 chooses to take the
benefit of a treaty (such as DTAA),
GAAR provisions may be invoked
3) GAAR would not be invoked in the case
of the nonresident investors of the F2
Which of the above statements is/are not
correct?
a) Only 1
b) Only 3
c) 1 and 3
d) None of the above
9. ‘Self Reliance’ in the economic context
implies that a country
1) Meets its demand for all goods and
services from its domestic production
2) Exports some of its goods bud does not
need to import anything
3) Has sufficient foreign exchange reserves
to buy all its needs
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
4) Meets its demand for certain vital goods
and services from its domestic
production
Select the correct codes:
a) 1 and 3
b) 2 and 4
c) 1, 2 and 3
d) 3 and 4
10. The world Bank’s environmentally
sustainable Development Division has
developed Green Index which one of the
following is not a constituent of this index
a) Produced Assets b) Natural Resources
c) Social Assets
d) Human resources
11. Despite beings a high saving economy a
developing country may still grow fast
primarily due to
a) Weak Administrative Machinery
b) Illiteracy
c) High population density
d) High capital – output ratio
12. Consider the following statements:
The two main objective of fiscal policy in
the developing countries are:
1) Rapid economic growth
2) Price stability
3) Full employment
4) Equitable distribution
Select the correct codes:
a) 1 and 2
b) 2 and 3
c) 2 and 4
d) 1 and 4
13. The primary objective of selective credit
control is:
a) To raise the cost of credit for all
purposes
b) To decrease the total supply of credit
c) To regulate total bank credit and
general level of interest rates
d) To influence allocation of credit among
different borrowers and users
Total Question: 100
14. Consider the statements regarding Swarna
Jaynti Shahari Rozgar Yojana(SJSRY)
1) The main objective of the SJSRY is
Addressing Rural poverty alleviation
through gainful employment to the
unemployed or under employed poor by
encouraging them to set up self
employment ventures
2) Funding under SJSRY will be shared
between the centre and the states in the
ratio of 70:30
Which statements given above are correct?
a) 1 only
b) 2 only
c) Both are correct d) Neither 1 nor 2
15. Consider the following statements
1) The Global Gender Gap index
introduced by the World Bank in 2006
is a frame work for capturing the
magnitude and scope of gender based
disparities and tracking their progress
2) Global competitiveness Report by
OECD is assesses the competitiveness
landscape of 144 economies providing
insight into the drivers of their
productivity and prosperity
3) The doing business report is a study
elaborated by the IMF, is aimed to
measure the costs to firms of business
regulations in 183 countries
Which statements given above is/are correct?
a) 1 and 2 only
b) 2 and 3 only
c) All of the above d) None of the above
16. Net population size will increase if
a) Initial population size along with birth
rate and immigration rate are more than
death rate and emigration rate
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
b) Initial population size along with birth
rate and immigration rate less than
death rate and emigration rate
c) Only birth rate and immigration rate are
more than death rate and emigration
rate
d) Only birth rate and immigration rate are
less than death rate and emigration rate
17. What is the correct logical sequence of the
following?
1) Households and business find that they
have excess money balances
2) Interest rates on securities drop, and/or
prices of goods and services increase
3) Demand for securities and/or goods and
service Increases
4) Net inflow of remittances from abroad
increases the domestic money supply
Select the correct codes:
a) 4 – 3 – 1 – 2
b) 2 – 1 – 3 – 4
c) 4 – 1 – 3 – 2
d) 2 – 3 – 1 – 4
18. Reasons that the population size of an
exotic species often grows rapidly when
the species is introduced in a new
environment include which of the
following?
1) The exotic species is resistant to
pesticides
2) There is large, underutilized food source
in the new environment
3) The exotic species has few natural
predators in the new environment
Select the correct codes:
a) 1 only
b) 2 only
c) 3 only
d) 2 and 3 only
19. Which of the following describes a
fundamental characteristic of the green
revolution in food resources?
Total Question: 100
a) The application of higher levels of
organic fertilizers to increase rice
production
b) The addition of calorie, fat, and fiber
percentages to the information
provided on food package labels
c) The development of new strains of
crops with higher yields
d) The discovery that chlorophyll adds
nutritional value to wheat, rice, and
sorghum
20. Consider the following statements?
1) Growth rate will now be measured by
GDP at consleant market prices, which
will hence forth be referred to as “GDP”
2) Earlier growth was measured in terms
of growth in GDP at factor cost at
Current prices
3) The Base year of National accounts
changed from 2004-05 to 2011-12
Which is/are correct?
a) 1 only
b) 2 & 3 only
c) 1, 2 & 3
d) 1 & 3 only
21. What are the recommendations &
challenges of Indian Agriculture in 2015-16?
1) Agriculture and food sectors need huge
investment in research, education ,
extension, irrigation, fertilizers and
laboratories to test soil, water and
communities and were housing and
cods storage
2) Sharth kumar committee provide useful
suggestions for the future road map of
food policy
Which is/ are correct?
a) 1 only
b) 2 only
c) Both are correct
d) None
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
22. Consider the following statements?
1) India’s HDI value for 2013 is 0.586,
ranking it 135 out of 187 countries
2) India is the lowest among BRICS
countries
3) India also slightly ahead of Bangladesh
and Pakisthan
4) Human development Index was
Released by Human development
organization
Which is/are correct?
a) All are correct
b) 1, 2, 3 only
c) 1 & 2 only
d) 2 & 3 only
23. In 2014-15 what are the Main Reason for
such High deficit?
1) High expenditure
2) Low Tax Revenue
3) Inflation
4) High non tax Revenue
Which is/are correct?
a) All are correct
b) 1, 2 &3 only
c) 1, 2 &4 only
d) 1, 2 only
24. Which is/are the not advantages of GST
bill 2014?
a) GST will be eliminate the cascading
effect
b) To increased transparency and reduced
complexities tax evasion will be
difficult
c) Tax base will be narrowed in it and
thus will load to greater revenue
mobilization
d) Differentiation between goods &
services is removed and tax credit is
available across this distinction
25. For the calculation of GDP which among
the following is/are considered to be in the
domestic territory of India?
Total Question: 100
1) Fishing vessels operated by Indian
Residents in the territorial waters of
India
2) Oil production by American Company
in oil fields of Rajasthan
3) Financial service provided by an foreign
bank via its overseas branch in Mumbai
4) Air India operating between India and
Muscat
a) 1 and 3
b) All the above
c) Only 1
d) Only 1, 2 &4
26. For the national accounting purpose,
which among the following activities is
considered to classified as investment in
the GDP
1) Purchasing a new house
2) Purchasing shares of a company
3) Purchasing debentures of company
4) Purchasing of software
a) Only 1 & 4
b) All the above
c) Only 2 &4
d) Only 1
27. The composition of taxation and
government spending can affect which
among the following?
1) Aggregate demand
2) Resource allocation
3) Distribution of Income
a) Only 1 &2
b) only 2
c) Only 1 & 3
d) All the above
28. Which
among
the
following
pertain/pertains to the expansionary fiscal
policy?
1) Increased money supply
2) Increased government spending
3) Increased Taxation
a) Only 2
b) Only 1 &3
c) Only 1
d) All the above
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
29. Which among is always a safe method to
Finance
additional
government
expenditure?
a) Borrow from domestic (or) Foreign
sources
b) Draw upon its foreign exchange
reserves
c) Print an equivalent amount of money
d) None of them
30. Consider the following
1) Market Borrowing
2) Treasury bills
3) Special securities issued to RBI
Select the correct code:
a) Only 1 &3
b) only 2
c) Only 2 & 3
d) All the above
31. Which among the following statements in
context with the planned expenditures
is/are correct?
1) They are generally the routine
expenditures of the Government
2) They are generally routed through the
central ministers to state govt.
3) They are generally incurred in the name
of planning
Select the correct code:
a) Only 1 &2
b) Only 2 & 3
c) Only 3
d) All the above
32. Consider the following?
1) Corporation Tax
2) Grants Received form a foreign country
3) Loans from international fund
4) Internet free loans from IDA
Which among the above are the “Revenue
Receipts” of the govt.?
a) Only 1 & 4
b) only 2 &3
c) Only 1 & 2
d) All the above
Total Question: 100
33. Consider the following
1) Loan from government of India to states
2) Interest paid by govt. of India on loans
taken form IMF
3) Subsides & Grants
4) Expenditure on acquisition of defense
equipments
Which among the above is/are Revenue
Expenditure?
a) Only 1 &4
b) only 2 &3
c) Only 1 &3
d) All the above
34. Which among the following is used by the
Government as a last resort in deficit
financing?
a) Borrowing from foreign sources
b) Borrowing from domestic sources
c) External Grants
d) Printing of currency
35. Consider the following statements:
1) Taxation in India is a subject of state
list, union list as well as concurrent list
2) Union and the state have concurrent
power of taxation on certain matters
Select the correct code:
a) Only 1
b) only 2
c) Both 1&2
d) Neither of them
36. The power of taxation in India have been
enumerated in
1) Union List
2) State list
3) Concurrent list
Select the correct code:
a) Only 1 &2
b) only 1
c) Only 3
d) All the above
37. Consider the following
regarding taxation in India:
observation
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
1) The share of Direct taxes in total tax
collection is more than that of indirect
taxes
2) The allocation of the shares in tax
process is determined by finance
commission
Select the correct code:
a) Only 1
b) only 2
c) Only 1 &2
d) Neither of them
38. Consider the following observation about
the provision of grants in aid in India
1) Article 275 of the constitution of India
provides that every state of India shall
be allocated grants - in – aid
2) The role of finance commission is to
ensure that the grants in aid reaches
every state as per the provision of the
constitution of India
Select the correct code:
a) Only 1
b) only 2
c) Both 1 & 2
d) none of the above
39. Which among the following is/are used as
criteria for allocation of central assistance
for state plans in India?
1) Population of the state
2) Percapital income of the state
3) Efforts done by the state govt. in green
governance
4) Efforts done by the state govt. in fiscal
management
5) Land reforms
Select the correct code:
a) Only 1 &2
b) only 3 & 4
c) 3, 4, 5
d) 1, 2, 3
40. Budgets of union territories and states
under president’s rule are also presented to
a) Lok sabha
b) Rajya Sabha
Total Question: 100
c) President
d) Both house of parliament
41. Which among the following goods have the
highest weight age in the index of
industrial production?
a) Basic goods
b) capital goods
c) Intermediate goods
d) consumer goods
42. Consider the following statements in the
context with the policy stance on National
investment and manufacturing zone
(NIMZ)
1) The uncultivable land is given
preference to be developed as NIMZ
2) The policy embodies single window
clearance in zones
3) NIMZ are to be development in
partnership with the private section
which among the above statement is/are
correct?
a) Only 1 &2
b) only 2 &3
c) 1, 2, 3
d) only 3
43. A state government in India can borrow
directly from
1) International market
2) Foreign government
3) Domestic market
a) Only 1
b) only 1 &2
c) Only 2 & 3
d) only 3
44. Consider the following comparisons of the
sales Tax and excise duty
1) Excise duty on alcohol and alcoholic
preparation are collected by the state
government
2) Excise duty on narcotic substance is
collected by central government
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ARUL BODHII FREE IAS / IPS ACAEDEMY
UPSC PRELIMINARY TEST BATCH – 1
Date: 09/05/2015
Economics Test - 12
3) While sales tax is a direct tax, excise
duty is an indirect tax
Which among the above comparisons is/are
correct?
a) Only 1
b) only 1 &3
c) Only 1&2
d) 1, 2, 3
45. Which among the following is considered
to be most volatile?
a) External commercial borrowings
b) Foreign direct investment
c) Foreign portfolio investment
d) Loans from international financial
institutions
46. Consider the following statements in
context with the cash reserve ratio
1) CRR is a slice of deposit that banks
have to park mandatorily with RBI
2) CRR does not earn any return for the
bank in India
3) RBI is powered with a legal provision
not to pay interest rates
Which among the above statements is are
correct?
a) Only 1 is correct b) 1& 2 are correct
c) 1, 2, 3 are correct d) Only 1 &3 correct
47. Consider the following figures
1) Index of industrial production
2) Wholesale price index
3) Consumer price Index
A row base will exaggerate figures of which
among the above in the current financial year?
a) Only 1
b) 1 &2
c) 1, 2 &3
d) None of them
48. Money borrowed for which among the
following utilities would be terms as
external commercial Borrowings?
1) Increasing capacity
Total Question: 100
2) Acquiring new company
3) Investment in capital markets
Select the correct code:
a) Only 1
b) 1 & 2
c) 1 &3
d) 1, 2, 3
49. In context with disinvestment in India,
consider the following statements
1) The govt. allows disinvestment in loss
making PSO
2) In India, one way of disinvestment of
offering shares of the company to
general public
3) The govt policy is to dilute its equity
and raise money for social expenditure
Select the correct code:
a) All the above
b) only 2 &3
c) Only 1
d) only 2
50. Which among the following income is not
taxed in India?
1) Income generated by foreigners in India
2) Income generated outside India by an
NRI
3) Interest earned by NRI in India on
income generated outside India in a
Foreign currency non – resident
account (FCNR)
Select the correct code:
a) Only 1 & 3
b) only 2 & 3
c) Only 1 & 2
d) All the above
51. Which among the following is/are features
of recession in an economy?
1) High rate of unemployment
2) Rapid expansion of credit
3) Stagnant wages
4) Fall in retail sales
5) Fall in production
Choose the options form the code given below
a) Only 1, 2, 3
b) only 1, 3, 5
c) Only 1, 3, 4
d) only 1, 3, 4, 5
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Economics Test - 12
52. Which among the following is/are the
objectives of imposing the import quota?
1) To correct unfavorable BOP
2) To improve balance of trade
3) To protect domestic industries
4) To promote exports
Select the correct code:
a) Only 1 & 3
b) only 1, 2, 4
c) Only 1, 2, 3
d) all the above
53. The govt. borrows in the bond and money
markets to …….
1) Fund its fiscal deficit
2) Repay outstanding loans
3) Provide stimulus to economy
4) Fund infrastructure
Select the correct code:
a) Only 1 & 2
b) only 2 &3
c) 1, 2, 3
d) All the above
54. Which among the following tells us in the
extent to which the govt’s borrowing are
used to service old loans?
a) Budget Deficit
b) Primary Deficit
c) Fiscal Deficit
d) Revenue Deficit
55. The national income of a country for a
given period is equal to the
a) Total value of goods and services
produced by the national
b) Sum of total consumption and
investment expenditure
c) Sum of personal income of all
individuals
d) Money value of final goods and services
produced
56. The most appropriate measure of a
country’s economic growth is its:
a) Gross Domestic Product
b) Net Domestic Product
Total Question: 100
c) Net National Product
d) Per Capital Real Income
57. In the context of Indian economy, consider
the following statements:
1) The growth rate of GDP has steadily
increased in the last five years
2) The growth rate in per capita income
has steadily increased in the last five
years
Which statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 & 2
d) Neither 1 nor 2
58. The growth rate of per capita income at
current prices is higher than that of per
capita income at constants process,
because the latter takes into account the
rate of :
a) Growth of population
b) Increase in price level
c) Growth of money supply
d) Increase in the wage rate
59. Which one of the following is the correct
sequence in the decreasing order of
contribution of different sectors to the
Gross Domestic Product of India?
a) Service – Industry - Agriculture
b) Service – Agriculture – Industry
c) Industry – Service – Agriculture
d) Industry – Agriculture – Service
60. In India, in the overall Index of industrial
production, the Indices of Eight Core
industries have a combined weight of 3790%. Which of the following are among
those Eight Core Industries?
1) Cement
2) Fertilizers
3) Natural gas
4) Refinery products
5) Textiles
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Economics Test - 12
Select the answer using the codes given below:
a) 1 and 5 only
b) 2, 3 and 4 only
c) 1, 2, 3 & 4 only
d) 1, 2, 3, 4 & 5
61. Why is the Government of India disinvesting its equity in the Central Public
Sector Enterprises (CPSEs)?
1) The government intends to use the
revenue earned form t he dis –
investment mainly to pay back the
external debt
2) The government no longer intends to
retain the management control of the
CPSEs.
Which statements given above is/are correct?
a) 1 only
b) 2 only
c) Both 1 &2
d) Neither 1 nor 2
62. With reference to the National Investment
Fund to which the disinvestment proceeds
are routed, consider the following
statements:
1) The assets in the National Investment
Fund are managed by the Union
Ministry of Finance
2) The National Investment Fund is to be
maintained within the Consolidated
Fund of India
3) Certain Assets Management Companies
are appointed as the fund managers
4) A certain proportion of annual income
is used for financing select social sectors
Which of the statements given above is/are
correct?
a) 1 & 2
b) 2 only
c) 3 &4
d) 3 only
63. The authorization for the withdrawal of
funds from the Consolidated Fund of India
must come form
a) The president of India
Total Question: 100
b) The Parliament of India
c) The Prime Minister of India
d) The Union Finance Minister
64. All revenues received by the Union
Government by way of taxes and other
receipts for the conduct of Government
business are credited to the
a) Contingency Fund of India
b) Public Account
c) Consolidated Fund of India
d) Deposits and Advances Fund
65. Which one of the following statements
regarding the levying, collecting and
distribution of Income Tax is correct?
a) The union levies, collects and
distributes the proceeds of income tax
between itself and the states
b) The Union levies, collects and keeps all
the proceeds of income tax to itself
c) The Union levies and collects the tax
but all the proceeds are distributed
among the states
d) Only the surcharge levied on income tax
is shared between the Union and the
states
66. Corporate Tax:
a) Is levied and appropriated by the States
b) Is levied by the Union and collected and
appropriated by the States
c) Is levied by the Union and shared by the
Union and the States
d) Is levied by the Union and belongs to it
exclusively
67. Consider the following taxes:
1) Corporate tax
2) Customs duty
3) Wealth tax
4) Excise duty
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Which of the these is/are indirect taxes?
a) 1 only
b) 2 &4
c) 1&3
D) 2 &3
68. Consider the following
1) Fringe Benefit Tax
2) Interest Tax
3) Securities Transaction Tax
Which of the above is/are Direct Tax/Taxes?
a) 1 only
b) 1 &3 only
c) 2 & 3 only
d) 1, 2 and 3
69. In India, deficit financing is used for raising
resources for
a) Economic development
b) Redemption of public debt
c) Adjusting the balance of payments
d) Reducing the foreign debt
70. In the context of governance, consider the
following:
1) Encouraging Foreign Direct investment
inflows
2) Privatization of higher educational
institutions
3) Down – sizing of bureaucracy
4) Selling / offloading the shares of public
– sector undertakings
Which of the above can be used as measures to
control the fiscal deficit in India?
a) 1, 2 &3
b) 2, 3 &4
c) 1, 2 &4
d) 3&4 only
71. Match List I with List II and select the
correct answer using the codes given below
the lists:
List I
List II
(Term)
(Explanation)
A. Fiscal deficit
1. Excess to Total
Expenditure
over
Total Receipts
Total Question: 100
B. Budget deficit
C. Revenue deficit
D. Primary deficit
2. Excess of Revenue
Expenditure
3. Excess of Total
Expenditure
over
Total Receipts less
borrowings
4. Excess of Total
Expenditure
over
Total Receipts less
borrowings
and
Interest Payments
Codes:
a)
b)
c)
d)
A
3
4
1
3
B
1
3
3
1
C
2
2
2
4
D
4
1
4
2
72. Assertion(A): Fiscal deficit is greater than
budgetary deficit
Reason(R): Fiscal deficit is the borrowing
from the Reserve bank of India plus other
liabilities of the Government to meet its
expenditure
a) Both A and R are true and R is the
correct explanation of A
b) Both A and R are true but R is not a
correct explanation of A
c) A is true but r is false
d) A is false but R is true
73. Which one of the following statements is
correct?
Fiscal Responsibility and Budget Management
Act(FRBMA) concerns:
a) Fiscal Deficit only
b) Revenue deficit only
c) Both fiscal deficit and revenue deficit
d) Neither fiscal deficit nor revenue deficit
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74. India is regarded as country with
“Demographic Dividend”. This is due to
a) Its high population in the age group
below 15 years
b) Its high population in the age group of
15-64 years
c) Its high population in the age group
above 65 years
d) Its high total population
75. To obtain full benefits of dividend, what
should India do?
a) Promoting skill development
b) Introducing more social security
schemes
c) Reducing infant mortality rate
d) Privatization of higher education
76. Human Development Index comprises
literacy rates, life expectancy at birth and
a) Gross National Product per head in the
US dollars
b) Gross Domestic Product per head at
real purchasing power
c) Gross National Product in US dollars
d) National Income per head in US dollars
77. Consider the following specific stages of
demographic transition associated with
economic development:
1) Low birthrate with low death rate
2) High birthrate with high death rate
3) High birthrate with low death rate
Select the correct order of the above stages
using the codes given below:
a) 1, 2, 3
b) 2, 1, 3
c) 2, 3, 1
d) 3, 2, 1
78. Deficit financing implies
a) Printing new currency notes
Total Question: 100
b) Replacing new currency with worn out
currency
c) Public expenditure in excess of public
revenue
d) Public revenue in excess of public
expenditure
79. In which of the following sequences the
change in quantity of money leads to
change in price level in the Keynesian
models?
a) Change in quantity of money - change
in investment - change in employment
and output - change in rate of interest change in price level
b) Change in quantity of money - change
in employment and output - change in
investment - change in the rate of
interest - change in price level
c) Change in quantity of money - change
in investment - change in rate of
interest - change in employment and
output - change in price level
d) Change in quantity of money - change
in rate of interest - change in
investment - change in employment and
output - change in price level
80. Our financial system has provided for the
transfer of resources from the centre to the
states; the important means of resource
transfer are
a) Tax sharing
b) Grant-in-aids
c) Loans
d) All the above
81. States earn maximum revenue through
a) Land revenue
b) Custom revenue
c) Commercial taxes
d) Excise duties on intoxicants
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82. Gross domestic capital formation is defined
as
a) Flow of expenditure devoted to
increased or maintaining of the capital
stock
b) Expenditure incurred on physical assets
only
c) Production exceeding demand
d) Net addition to stock after depreciation
83. Devaluation of a currency means
a) Reduction in the value of a currency visa-vis major internationally traded
currencies
b) Permitting the currency to seek its
worth in the international market
c) Fixing the value of the currency in
conjunction with the movement in the
value of a basket of pre-determined
currencies
d) Fixing the value of currency in
multilateral consultation with the IMF,
the World Bank and major trading
partners
84. Depreciation means
a) Closure of a plant due to lock out
b) Closure of a plant due to labour trouble
c) Loss of equipment over time due to
wear and tear
d) Destruction of a plant in a fire accident
85. In India, rural incomes are generally lower
than the urban incomes, which of the
following reasons account for this?
1) A large number of farmers are illiterate
and know little about scientific
agriculture
2) Prices of primary products are lower
than those of manufactured products
Total Question: 100
3) Investment in agriculture has been low
when compared to investment in
industry
Select the correct code:
a) 1, 2, 3
b) 1, 2
c) 1, 3
d) 2, 3
86. Revenue of the state governments are
raised from the following sources, except
a) Entertainment tax
b) Expenditure tax
c) Agricultural income tax
d) Land revenue
87. Which of the following taxes is a
progressive tax?
a) Income tax
b) Custom tax
c) Sales tax
d) Excise duty
88. In the state of India, the State Financial
Corporation have given assistance mainly
to develop
a) Agricultural farms
b) Cottage industry
c) Large-scale industries
d) Medium and small-scale industries
89. Debenture holders of a company are its
a) Shareholders
b) Creditors
c) Debtors
d) Directors
90. Which of the following is part of capital
account of a country?
a) Export and import of goods.
b) Export and import of services.
c) Unilateral transfers from one country to
another.
d) NRI deposits.
91. Which of the following factor forms the
invisible account of the Balance of
Payments of a country?
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a) International trade in services.
b) Income associated with nonresident
assets and liabilities.
c) Remittance of worker income.
d) All the above.
92. Consider the Following
1) Life expectancy at birth
2) Gross enrollment ratio for schools
3) Adult Literacy rate
4) Per capita income
Which of the above is/are the parameters for
the measurement of Human Development
Index by UNDP?
a) 1, 2 & 4
b) 1 & 3
c) 4 only
d) 1, 2, 3 & 4
93. Which of the following is not a function of
the RBI ?
a) Bankers Bank
b) Bank of Issue
c) Bankers to the Public
d) Custodian of foreign exchange
94. The Reserve Bank of India issues notes
under the following note issue method
a) proportional reserve system
b) Minimum reserve system.
c) Maximum fiduciary system
d) Fixed fiduciary system
95. National income is based on the
a) Total revenue of the State
b) Production of goods and services
c) Net profit earned and expenditure made
by the State
d) The sum of all factor incomes
96. Zero Based Budgeting (ZBB) lays emphasis
on
1) Unlimited deficit financing
2) Preparing new budget right from the
scratch
Total Question: 100
3) Preparing the budget neglecting the
history of expenditure
a) 1 and 2
b)2 and 3
c) 1 and 3
d)1, 2 and 3
97. Recession is that economic state of a
country when there is
a) Accumulation of unsold stocks
b) Slump in trade and industry
c) Fall in consumer demand
d) All the above
98. If an economy is equilibrium at the point
where plans to save and to invest are equal,
then government expenditure must be
a) Zero
b) Equal to government income
c) Larger than government income
d) Negative
99. Regional rural banks
1) Have limited area of operation
2) Have free access to liberal refinance
facilities from NABARD
3) Are required to lend only to weaker
sections
a) 1, 3
b) 2, 3
c) 1, 2, 3
d) 1, 2
100. Which of the following is not a feature of
Pradhan Mantri Jan Dhan Yojana?
a) Providing universal access to banking
facilities.
b) Providing Basic Banking Accounts with
overdraft facility of Rs.5000 after six
months and RuPay Debit card with
inbuilt accident insurance cover of Rs. 1
lakh and RuPay Kisan Card
c) Financial Literacy Programme
d) Issuance of credit cards.
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