ECONOMICS MCQS

Q.1 Statements: 1) Private & public sectors are classified on the basis of nature of economic conditions. 2) The dual economy is a mixture of Industrial sector & Manufacturing sector. Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. D *The dual economy is a mixture of Agricultural sector & Modern Industrial Sector. * Private & public sectors are classified on the basis of ownership of enterprises.   Q.2 statements: 1) Net National product at factor cost is equivalent to National Income 2) National income is based upon Production of goods & services Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.3 Which among the following are the components of HDI ? 1) Decent standard of living 2) Infant Mortality 3) Longevity 4) Educational attainment Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. A   Q.4 Which among the following are correct ? 1) Balanced budget multiplier is unity when taxes are lump-sum taxes 2) Balanced budget multiplier is less than unity when taxes are ad valorem taxes 3) Tax multiplier is less than the government expenditure multiplier 4) Tax multiplier is more than the government multiplier Codes: A) 1,2,3 B) 2,3,4 C) 1,3,4 D) 1,2,3,4 Ans. A   Q.5 Which among the following is true with respect to the monetary approach to the balance of payments ? A) BOP disequilibrium are not automatically corrected in the long run B) BOP deficit results from an excess demand of money in the nation C) It views the balance of payments as an essentially monetary phenomenon D) BOP surplus results from an excess supply of money Ans. C   Q.6 Which among the following is an artificial currency ? A) ADR B) GDR C) SDR D) ADR & SDR Ans. C   Q.7 In context with the wholesale price index, consider the following statements: 1) It captures the price movement extensively & taken as an indicator of the inflation 2) The office of the economic adviser is entrusted with the function of compilation & publication of the weekly wholesale price index numbers in India Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C      

Q.1 Which of the following is used by the RBI for selective Credit Control ? A) It advises banks to lend against certain commodities B) It advices banks to charge higher rate of interest for advance against certain commodities C) It advises banks to recall the loans for advances against certain commodities D) It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable Ans. B   Q.2 Which of the following correctly defines difference between visible exports & visible imports ? A) Balance of trade B) Gains from trade C) Balance of Payments D) Balanced terms of trade Ans. A   Q.3  Which of the following drives the Industrial growth of an economy ? 1) Economic factors only 2) Innovation/market base only 3) Investment Only Codes: A) 1 & 3 B) 1 & 2 C) Only 1 D) 1,2,3 Ans. D   Q.4 Statements: 1) RBI has asked banks to make a plan to provide banking services to all the villages having a population above 2000. 2) This directive by RBI comes under the Financial Inclusion. Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. D •   This directive by RBI comes in to open more & more rural branches. •   RBI has asked banks to make a plan to provide banking services to all the villages having a population upto 2000.   Q.5 At which of the following rates central Bank lends to the banks against Government Securities ? A) Repo rate B) Reverse Repo Rate C) SLR D) CRR Ans. D   Q.6 In context with the Mega Food Parks consider the following statements: 1) It aims at  providing excellent infrastructure facilities for food processing industries along the value chain from farm to market. 2) This scheme operates in hub & spoke model under which there will be Central Processing Centre which will be networked with farm proximate collection centres & primary processing centres. Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.7 Statements: 1) Judicial appointments Commission Bill,2013 defines establishment of  proposed body to recommend appointment & transfer of judges. 2) This bill has been introduced in conjunction with the constitutional 128th Amendment bill. Codes: A) only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.8 RBI is planning to introduce polymer notes of 10Rs., consider the following statements: 1) Plastic notes would be suitable for tropical & subtropical conditions. 2) Lifeline of plastic notes will be many times longer than the paper currency. Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.9 Consider the following statements: 1) In FCCBs(Foreign Currency convertible Bonds), RBI has allowed companies to prepay or buyback bonds to prevent losses due to rupee depreciation. 2) In ECB (External Commercial Borrowings) RBI has extended window under which corporate could avail of loans in aviation & telecom sector. Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.10 As per the latest guidelines of RBI, Scheduled Commercial Banks are: A) free to open branch in any area without prior approval to open a branch B) Only the public centre banks are free to open branch in any area C) Required to obtain prior approval to open a branch D) Free to open branch in Tier-I centres without seeking RBI’s prior approval but with a rider that the number of  branches opened in tier-I centres cannot exceed total number of  branches opened in centres that do not have branch Ans. D      

Q.1 Rise in the price of commodity means :   A) rise in the value of currency only   B) fall in the value of currency only   C) rise in the value of commodity only   D) fall in the value of currency & rise in the value of commodity   Ans. D   Q.2 When two goods are completely interchangeable, they are called :   A) Perfect substitutes   B) Imperfect substitutes   C) Giffen goods   D) Veblen goods   Ans. A   Q.3 In context with the Vanbandhu Kalyan Yojana, which among the following statements are correct ?   1) It mainly focuses on bridging infrastructural gaps & gap in human development indices between scheduled tribes & other social groups   2) Under this scheme center will provide Rs. 10 crore each for every state & union territory of the country for the development of various facilities for the tribals   Codes:   A) Only 1   B) Only 2   C) Both are correct   D) Both are incorrect   Ans.  A   Q.4 With regard to Asian Infrastructure Investment Bank, which among the following are correct ?   1) India is one of the founding members of the bank   2) Bank is to be headquartered in Shanghai   Codes:   A) Only 1   B) Only 2   C) Both are correct   D) Both are incorrect   Ans. A   Bank is to be headquartered in Beijing.   Q.5 Statements :   1) Nirmal Bharat Abhiyan is restructured into Swachh Bharat Abhiyan   2) Swachh Bharat Mission has two sub-missions i.e. Union territories & States   Codes:   A) Only 1   B) Only 2   C) Both are correct   D) Both are incorrect   Ans. A   Q.6 Demand for commodity refers to :   A) Quantity demanded of that commodity   B) Need for that commodity   C) Desire for that commodity   D) Quantity demanded at certain price during any particular period of time   Ans. D   Q.7 Which among the following statements are correct ?   1) General Agreement on tariffs & Trade has regulated global trade since 1947.   2) GATT was replaced by the world Trade Organisation in 1995   3) The most favoured nation principle under GATT provided that preferential trading agreements reached with one country should be extended to the other countries   4) WTO has been able to cover in its agreements the agriculture & textile sectors which are the principal concerns for the least developed countries   Codes:   A) 1,2,3,4   B) 2,3,4   C) 1,3,4   D) 1,2,3   Ans. B   Q.8 An exceptional demand curve is one that slopes :   A) Horizontally   B) Upward to the right   C) Downward to the right   D) Upward to the left   Ans. B   Q.9 In context with the SAFTA which among the following statements are correct ?   1) It is a trade liberalization regime   2) It came into effect in 2006   3) It is a step towards south Asian customs union & common market   4) This agreement takes precedence over any other agreement a member country may have with states outside SAFTA   Codes:   A) 1,3,4   B) 2,3,4   C) 1,2,3   D) 1,2,3,4   Ans. C     

Q.1 In context with Limited Liability Partnership, consider the following statements: 1) In this no partner would be liable on account of the independent or unauthorized actions of other partners 2) It allow individual partners to be shielded from joint liability 3) It is a legal entity separate from its partners Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.2 Which of the following are the characteristics of the Participatory notes ? 1) These are used by the Foreign institutional Investors who are not registered with SEBI 2) They are used on Indian shares outside India 3) These are derivative instruments Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.3  Regarding Law commission, which among the following statements are correct ? 1) It is constitutional body 2) Its recommendations are binding upon the Government 3) It is inspired by the Fundamental Rights, Fundamental Duties & Directive Principles Of State Policy of the Constitution Codes: A) 1 & 3 B) Only 2 C) 2 & 3 D) All are incorrect Ans. D It is inspired by the Fundamental Rights  & Directive Principles Of State Policy of the Constitution Its recommendations are not binding upon the Government It is not a constitutional body as it is advisory body   Q.4 Which of the following are the reasons for the slowdown of an Indian Economy ? 1) Weak monsoon 2) Tight Monetary Policy 3) Fiscal Stimulus Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C   Q.5 Which of the following are the Transfer Payments ? 1) Pensions 2) Subsidies 3) Social security expenditure Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.6 Which of the following are the reasons for which Double taxation Agreement is to be signed between two countries ? 1) It will provide tax stability to the residents of both the countries 2) It will stimulate the flow of investment, technology & Services between both the countries 3) It will provide assistance in collection of taxes between the tax authorities of both the countries Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.7 In context with the Jawahar Lal Nehru National Solar Mission, which of the following are correct ? 1) It was launched in the year of 2011 2) It is the part of the national action plan on climate change 3) Its mission is to have a 20 GW of grid connected solar power & to make it as cheap as electricity Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D        

Q.1 Statements: 1) Commercial papers are the instruments through which corporates raise debt from the market 2) New capital issue is placed under the Primary as well as Secondary market Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. A New capital issue is placed under the Primary market   Q.2 Which is correct regarding Indian depository Receipts ? A) It is an instrument in the form of deposit receipt issued by the Indian depositories B) It is an instrument in the form of depository receipt created by an Indian depository against underlying equity shares of the issuing company C) It is a depository account with any of the Depositories in India D) It is a deposit account with a Public Sector Bank Ans. B   Q.3 Which of the following determines the nature & size of the Industry ? 1) Business turnover 2) Capital investment 3) Power consumption 4) Labour force Codes: A) 2,3,4 B) 1,3,4 C) 1,2,3 D) 1,2,3,4 Ans. A   Q.4 statements: 1) Expansion of public sector was based on the Industrial policy 1956 2) Capital account Convertibility designed to transfer local financial assets into foreign financial assets freely & at market determined exchange rates Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.5 Statements: 1) Union Government fixes the statutory minimum price of Sugarcane for each sugar season 2) Sugar & Sugarcane are essential commodities under the essential commodities act Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.6 Green Revolution has led to increase in : 1) Productivity of pulses 2) Productivity of wheat 3) Region inequalities 4) Inter-person inequalities Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.7 In context with the New Textile policy, which among the following are correct ? 1) This policy is applicable in all the states 2) Interest subsidy accorded to the Small & Medium enterprises is one of the feature of this policy 3) Provision of additional subsidy for SC, ST ,Women, Ex-service men & Physically challenged has been included under this policy Codes : A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. B   Q.8 In context with the Juvenile justice system, which among the following are correct ? 1) It is a tribunal having special authority to try and pass judgments for crimes committed by children & adolescents 2) The procedure in juvenile court is always adversarial 3) It always handle cases of delinquency and dependency Codes: A) 1 & 3 B) Only 3 C) 2 & 3 D) Only 2 Ans. B   Q.9 Which among the following statements regarding Debit card are correct ? 1) In Debit card fund is taken from the money present in the bank account 2) Debit card can be used without PIN in some transactions 3) Interest is charged while taking the money from the account depending upon the transaction Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C   Q.10 Consider the statements regarding CIBIL(Credit Information Bureau) : 1) It is the country’s credit information that is owned by the banks & other lending institutions 2) RTI Act is applicable to CIBIL Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. A    

Q.1 Which of the following measures are taken by the RBI to ease the liquidity crunch in the country ? 1) Cut in Cash Reserve Ratio & Statutory Liquidity Ratio 2) Supply of additional currency notes in the market 3) Increase the flow of FDI Codes: A) 1 & 3 B) Only 2 C) 2 & 3 D) Only 1 Ans. D   Q.2 Why RBI keeps on changing various ratio/rates frequently ? 1) To ensure that Indian rupee does not loose its market value 2) To keep Inflation under control 3) To ensure that banks do not earn huge profits at the cost of public money Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.3 Which of the following happens when the Interest rate goes up ? 1) Lending decreases 2) Cost of production increases 3) Saving increases 4) Return on Capital increases Codes: A) 2,3,4 B) 1,3,4 C) 1,2,3 D) 1,2,3,4 Ans. C   Q.4 Statements: 1) Taxes on transactions in stock exchange & future markets are levied by Union & collected by the states 2) Arbitrage is used for the purchase & sale of securities to make profits from price Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. B Taxes on transactions in stock exchange & future markets are levied by Union   Q.5 Which of the following measures will happen when money supply increases ? 1) Sale of government securities to the public by the Central Bank 2) Purchase of government securities from the public by the Central Bank 3) Deposit of currency in commercial banks by the public 4) Borrowing by the government from the Central Public Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) Only 2 & 4 Ans. D   Q.6 Which among the following is true regarding Foreign Exchange reserves ? 1) It is maintained by the RBI 2) It includes foreign currency assests & gold holdings of RBI 3) Special drawing Rights (SDR) are not included in it 4) Presently foreign exchange situation is satisfactory in India Codes: A) 1,3,4 B) 2,3,4 C) 1,2,4 D) 1,2,3,4 Ans. C   Q.7 Indian rupee is fully convertible into: 1) In respect of current accounts of balance of payment 2) In respect of Capital accounts of balance of Payment 3) Gold Codes: A) 1 & 3 B) 2 & 3 C) Only 1 D) 1,2,3 Ans. C   Q.8 Which of the following is a debt instrument ? 1) Bonds 2) Certificate of deposits 3) Commercial papers 4) Loans 5) Stocks Codes: A) 1,3,4,5 B) 1,2,3,4 C) 2,3,4,5 D) 1,2,3,4,5 Ans. B   Q.9 Statements: 1) Call money market is the part of Organised & unorganised sector 2) Participatory notes is an offshore derivative instrument used by overseas buyers /investors for shares of Indian companies listed in Stock exchange Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. B Call money market is the part of Organised sector   Q.10 Which of the following is correct regarding Hot Money ? 1) It is the fund which flows in the market to take advantage of high interest rates 2) It is used for the fresh currency notes issued by the RBI 3) It is the fund which is thrown in market to create imbalance in the stock markets Codes: A) 2 & 3 B) Only 1 C) 1 & 3 D) Only 3 Ans. B  

Q.1 Statements; 1) Under the SLR commercial banks keep the liquid assets with themselves 2) Arbitrage is the process of purchase & sale of securities to reduce the loss on purchase Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.2 Statements: 1) Only Commodities can be traded on National Spot Exchange of India ? 2) Interest rate risk can be placed under the Market risk as well as Credit risk Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. A Interest rate risk can be placed under the Market risk   Q.3 Statements: 1) Balance Of Payments is the statement of receipt from the foreign countries & payments made to the foreign countries 2) Fiscal Deficit reflects the overall budgetary position of the Government of India Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.4 Which of the following are the elements of the Union Budget ? 1) Estimates of Expenditure 2) Estimates of Revenue 3) Ways & Means to raise the revenue Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.5 Which of the following is/are the part of the tax revenue of the Government ? 1) Tax on Goods & Services 2) Tax on Expenditure 3) Tax on Income 4) Tax on property or Capital assets Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.6 In context with the VAT, consider the following statements: 1) It is levied by the Union Government & a small part of it goes to the State Governments 2) Income tax on retailers is now decided on the basis of their VAT collection in a year 3) It is a consumption tax levied on a value added to the product on every stage of its production Codes: A) 1 & 3 B) Only 3 C) 1 & 2 D) 1,2,3 Ans. B A value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The purpose of VAT is to generate tax revenues to the government similar to the corporate income tax or the personal income tax. The value added to a product by or with a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.   Q.7 Consider the statements regarding ATMs : 1) It does not accept deposits 2) It has a lack of human interference 3) It has a limited cash disbursement capacity Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.8 Statements: 1) Increase in Cash Reserve ratio will reduces the credit creation 2) Increase in CRR depicts Commercial banks have less money to lend Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.9  In context with the SLR, consider the following statements: 1) SLR is maintained by the banks itself 2) SLR restricts banks leverage in pumping more money into the economy 3) To meet SLR Commercial banks can use cash only Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C   Q.10 What is included in the other income ? 1) Commission for selling insurance policies 2) Interest on advances & loans 3) Fee for providing various services like ATM, extra cheque Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. A   Q.11 RBI’s open market operation transactions are carried out to regulate; 1) Inflation 2) Borrowing power of the banks 3) Prices of essential commodities 4) Liquidity in the economy Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.12 Which among the following are the functions of RBI ? 1) To provide credit facility to the general public 2) To frame Monetary policy & Credit Policy 3) To keep Government money in the various account heads 4) To keep foreign exchange reserves of country in safe custody Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.13 Which of the following is the financial inclusion ? 1) Providing all sorts of financial aids/grants to the people living below poverty line as a social welfare  measure without earning any profit 2) Opening of bank branches in rural areas only 3) Reaching banking services of all sections of the society in all parts of the country Codes: A) Only 2 B) 1 & 3 C) Only 1 D) Only 3 Ans. D    

Q.1 which of the following are the indicators of the multidimensional poverty index ? 1) Child Mortality 2) Sanitation 3) Nutrition 4) Child school attendance 5) Assets ownership Codes: A) 1,2,3 B) 3,4,5 C) 1,2,3,4 D) 1,2,3,4,5 Ans. D   Q.2 Which of the following are the goals of the National Rural Livelihood Mission ? 1) Reduction of poverty 2)  improvement in livelihoods 3) skilled wage employment opportunities Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D National Rural Livelihood Mission (NRLM) is a poverty alleviation project implemented by Ministry of Rural Development, Government of India. This scheme is focused on promoting self-employment and organization of rural poor. The basic idea behind this programme is to organize the poor into SHG (Self Help Groups) groups and make them capable for self-employment. In 1999 after restructuring Integrated Rural Development Programme(IRDP), Ministry of Rural Development (MoRD) launched Swarnajayanti Grameen Swarojgar Yojana (SGSY) to focus on promoting self-employment among rural poor. SGSY is now remodeled to form NRLM thereby plugging the shortfalls of SGSY programme. This scheme was launched in 2011 with a budget of $ 5.1 billion and is one of the flagship programme of Ministry of Rural Development. This is one of the worlds largest initiative to improve the livelihood of poor. This programme is supported by World Bank with a credit of $ 1 Billion.   Q.3 Which among the following are the functions of the Finance Commission ? 1) Distribution of net proceeds of taxes between Centre and the States 2) To make recommendations to president as to the measures needed to augment the Consolidated Fund of a State to supplement the resources of the panchayats and municipalities in the state 3) Determine factors governing Grants-in Aid to the states Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.4 In relation to the Base Effect , which among the following statements are correct ? 1) Smaller rise in the Price Index will arithmetically give a high rate of inflation, even  if the inflation rate was too low in the corresponding period of the previous year 2) It relates to inflation in the corresponding period of the previous year Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.5 In context with the Aam Aadmi Bima Yojaana, which among the following statements are correct ? 1)  Member should normally be the head of the family or one earning member of the below poverty line family (BPL) or marginally above the poverty line 2) The members should be aged between 18 years completed and 59 years 3) Nominal fee should be paid by the member under this scheme Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C Click on this link: https://www.licindia.in/aam_admi_features.htm   Q.6 In context with the Microfinance, which among the following are correct ? 1) Microcredit is provision of credit services to poor clients 2) It is a source of financial services for entrepreneurs and small businesses 3) It helps to manage the assets of the poor and generates income Codes: A) 1 & 3 B)  2 & 3 C) 1 & 2 D) 1,2,3 Ans. D The two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group. In some regions, for example Southern Africa, microfinance is used to describe the supply of financial services to low-income employees, which is closer to the retail finance model prevalent in mainstream banking. For some, microfinance is a movement whose object is “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers.” Many of those who promote microfinance generally believe that such access will help poor people out of poverty, including participants in the Microcredit Summit Campaign. For others, microfinance is a way to promote economic development, employment and growth through the support of micro-entrepreneurs and small businesses.   Q.7 Which of the following are the characteristics of an Open Economy ? 1) It involves flow of funds as investment across the border 2) Railway services of a country cannot be traded with another to avail this service 3) Consumers will have an opportunity to invest their savings outside of the country 4)  It has a negligible effect on interest rate. Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.8  Which among the following regarding Introductory Rate which is also known as Teaser rate are correct ? 1) It is an interest rate charged to a customer during the initial stages of a loan 2) The teaser rate is only temporary 3) It is usually low interest rate to attract potential customers to obtain the service Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D A teaser rate is a low, adjustable introductory interest rate advertised for a loan, credit card, or deposit account in order to attract potential customers to obtain the service. The teaser rates are normally too good to be true for the long term, and are far below the common realistic rate for the service. In a competitive market, many companies will compete with each other for the lower teaser rate. Typically, the teaser rate is 0%. The teaser rate is only temporary. After its expiration, the rate increases to a normal or much higher than normal rate, and in some cases, the borrower cannot keep up with making payments. Some consumers with good credit manage to take advantage of teaser rates offered by the industry as a whole by applying for a card,

Q.1 Which of the following goods are included in the FMCG (Fast Moving Consumer Goods) ? 1) Toilleteries 2) Automobiles 3) Dairy Products 4) Bakery Products Codes: A) 1,3,4 B) 1,2,3 C) 1,2,4 D) 1,2,3,4 Ans. C   Q.2 Duty Draw Back implies : A) Refund of import duty on the exporters B) Obstacles in the matter of exports C) Refund of export duty to exporters D) Excess rate of import duty Ans. A   Q.3 Which of the following scheme has been launched to provide free health care facilities to pregnant women & infants : A) Janani Suraksha Yojana B) Indira Gandhi Matritva Sahyog Yojana C) Janai Shishu Suraksha Yojana D) Integrated Child development scheme Ans. C   Q.4 Which among the following regarding Emission Reduction Purchases Agreement are correct ? 1) It has been signed between world bank & Govt of India 2) Agreement shall be valid for 10 years 3) Agreement is for securing carbon credits for a project of Himachal Pradesh 4) One tonne of carbon di oxide will be equivalent to one credit unit Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. B   Q.5 Buyer’s market is known where : A) Demand is more than the demand B) Supply is more than the demand C) Demand is equal to the supply D) None of the above Ans. B   Q.6 In context with the Central sales Tax, which among the following are correct ? 1) It is levied in Union territories 2) It is levied on Interstate trade 3) It is levied in SEZ Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.7 In context with the National Water Mission, which among the following are correct ? 1) It is an autonomous authority to increase water use efficiency 2) Intensive programme for ground water recharge in over exploited areas & recycling of waste water are one of the feature of this mission Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.8 Regarding Consumer’s rights previleges, which among the following are correct ? 1) It regulates private law relationships between individual consumers and the businesses 2) Under this law, Separate Consumer Dispute Redressal Forum have been set up in all the states 3) Consumer interests can also be protected by promoting competition in the markets Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.9 In context with the District Rural Development Agencies, which among the following are correct ? 1) This is the organ under the Ministry of rural employment for the implementation of the anti-poverty programmes 2) These are entrusted with number of programmes of central government only 3) The Ministry is responsible for the release of central share of funds, policy formulation & overall guidance 4) Sums of rural development funds of government of India  transferred and routed under various Centrally Sponsored Schemes Codes: A) 1 & 3 B)  2,3,4 C) 1,2,4 D) 1,2,3,4 Ans. C These are entrusted with number of programmes of central government & state Government DRDA has traditionally been the principal organ at the district level to oversee the implementation of anti-poverty programmes of the Ministry of Rural Development. This agency was created originally to implement the Integrated Rural Development Programme (IRDP). Subsequently the DRDAs were entrusted with number of programmes of both state and central governments. From 1 April 1989 a separate DRDA Administration has been introduced to take care of the administrative costs. This aims at strengthening the DRDAs and make them more professional in managing the anti-poverty programmes and be an effective link between the ministry and the district level.   Q.10 Which among the following regarding Delimitation Commission are correct ? 1)  Redraw the boundaries of the various assembly and Lok Sabha constituencies is the main task of the delimitation commission 2) Its orders can not be challenged in a court of law 3) The representation from each state is not changed during this exercise 4) Number of SC and ST seats in a state are changed in accordance with the census Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D    

Q.1 Indian companies raise resources overseas through which of the following ? 1) External Commercial Borrowing 2) Foreign Currency Convertible Bonds 3) Global Depository Receipts 4) American Depository Receipts Codes: A) 1,2,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. D   Q.2 Which among the following are included in the call money markets ? 1) Cooperative banks 2) Scheduled commercial banks 3) Land development banks Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. D   Q.3 Statements : 1) Credit Default Swaps have the role in risk management 2) Deregulation has been believed to improve the monetary policy in India 3) Open Market Operations are used for the Sterilisation of the Capital Inflows Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) All are correct Ans. D   Q.4 Which among the following are the functions of the Commercial Banks ? 1) To purchase Cooperate bonds 2) To provide no-frill services 3) Participant in call money market 4) To sell National Saving Certificate Codes: A) 1,3,4 B) 2,3,4 C) 1,2,3 D) 1,2,3,4 Ans. C   Q.5 Which among the following are helpful in Fiscal consolidation ? 1) Increasing Tax-GDP ratio 2) Reduction of subsidies 3) Increasing Central Sponsored Schemes Codes: A) 1 & 3 B) 2 & 3 C) 1 & 2 D) 1,2,3 Ans. C   Q.6 Statements: 1) National Equity Fund are to be maintained by the RBI 2) Effective Revenue Deficit is the difference between the revenue deficit & grants for creation of capital assets 3) Overheating generally happens during the growth & boom period Codes: A) 1,2,3 B) 1 & 3 C) 2 & 3 D) 1 & 2 Ans. C National Equity Fund are to be maintained by the SIDBI   Q.7 Which of the following correct denotes to the Demand driven scheme ? 1) Planning will be decentralized 2) It will be driven by the institutions like Panchayat Raj Institutions, Self help groups Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.8 Which of the following regarding Expropriation is correct, in context with the consequences of FDI ? 1) It is forceful confiscation & redistribution of private property 2) In this government can take control of firm’s property & assests Codes: A) Only 1 B) Only 2 C) Both are correct D) Both are incorrect Ans. C   Q.9 Regarding NEFT Transaction, which among the following are correct ? 1) It can facilitate cross border transactions to all the countries 2) Recipient have to pay minimum charge while making transaction 3) This facility is available to NRIs Codes: A) 1 & 3 B) 2 & 3 C) 1,2,3 D) All are incorrect Ans. D Sender have to pay minimum charge while making transaction It can facilitate cross border transactions to not all the countries , it can transfers fund from India to Nepal This facility is not available to NRIs   Q.10 Sankalp project is accociated with eradication of  : A) Illiteracy B) Unemployment C) Polio D) AIDS Ans. D