Indian Economy : Objective GK

1. Which of the following is not one of the core areas identified under the Bharat Nirman Programme ?
(A) Irrigation
(B) Rural electrification
(C) Drinking water supply
(D) Rural housing
(E) Computer education in schools

2. The Basel-II accord for Banking Industry is based on three pillars. Which of the following is/are not included in the same ?
1. Minimum capital requirement
2. Supervisory review
3. Market discipline
4. Credit risk
Codes :
(A) Only 1
(B) Both 1 and 3
(C) Only 4
(D) 1, 2 and 3
(E) None of these

3. Which of the following is not true about Prime Ministers Rozgar Yojana (PMRY) ?
1. Youth between the age of 1835 years are eligible for taking loan under the scheme.
2. The scheme is being implemented throughout the country.
3. In the 11th plan about 16·5 lakh persons are likely to get employment under this scheme.
Codes :
(A) Only 1
(B) Only 2
(C) Both 1 and 3
(D) Only 3
(E) All 1, 2 and 3

4. Participatory Notes (PNs) are associated with which one of the following ?
(A) Consolidated fund of India
(B) Foreign institutional Investors
(C) United Nations Development Programme
(D) Kyoto protocol

5. Which of the following countries has the largest stock of foreign exchange reserves in the world ?
(A) USA
(B) China
(C) Japan
(D) India
(E) None of these

6. Who amongst the following is the first chairman of the newly constituted national statistical commission ?
(A) Prof. Suresh D. Tendulkar
(B) Dr. Ashok Lahiri
(C) Dr. Rakesh Mohan
(D) Prof. S. K. Ghosh
(E) None of these

7. Which of the following taxes is exclusively and totally assigned to the state government by the constitution ?
(A) Estate duty
(B) Sales tax
(C) Taxes on Railway fares and frights
(D) Corporation tax

8. In the Union Budget for 2007-08, which one of the following is the largest in amount ?
(A) Plan expenditure
(B) Non-plan expenditure
(C) Revenue expenditure
(D) Capital expenditure

9. The tax on import and export is known as—
(A) Income tax
(B) Trade tax
(C) Custom duty
(D) None of the above

10. The annual growth rate of the Indian Economy at 1999-2000 prices during 2006-2007 has been estimated at about—
(A) 9·2 per cent
(B) 8·2 per cent
(C) 7·2 per cent
(D) 6·2 per cent

11. Which one of the following is not an objective of fiscal policy of Indian government ?
(A) Full employment
(B) Price stability
(C) Regulation of inter-state trade
(D) Equitable distribution of wealth and income

12. Hindu rate of growth refers to the rate of growth of—
(A) GDP
(B) Population
(C) Food grains
(D) Per capita income

13. As per recommendations of the twelfth finance commission, percentage share of states of the shareable central taxes is—
(A) 28·5
(B) 29·5
(C) 30·5
(D) 32·4

14. In India, national income is estimated by—
(A) Planning Commission
(B) Central Statistical Organisation
(C) Indian Statistical Institute
(D) National Sample Survey Organisation

15. Bharat Nirman scheme of the UPA government does not include—
(A) Rural water supply project
(B) Irrigation benefit programme
(C) Rural electrification
(D) Sarva shiksha abhiyan

16. Which one of the following committees recommended the abolition of reservation of items for the small scale sector in industry ?
(A) Abid Hussain Committee
(B) Narasimhan Committee
(C) Nayak Committee
(D) Rakesh Mohan Committee

17. In the last one decade which one among the following sectors has attracted the highest foreign direct investment inflows into India ?
(A) Chemicals other than fertilisers
(B) Services sector
(C) Food processing
(D) Telecommunication

18. Who formulates the monetary policy in India ?
(A) SEBI
(B) RBI
(C) Finance Ministry
(D) Planning Commission

19. Consider the following statements and select the correct answer using the code given below :
Assertion (A)—Educated unemployment increases with high rate of economic growth.
Reason (R)—It happens only when there is lack of professional education.
Codes :
(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(B) Both (A) and (R) are correct but (R) is not the correct explanation of (A)
(C) (A) is true but (R) is false
(D) (A) is false but (R) is true

20. Which of the following companies is not included amongst the miniratnas ?
(A) Bharat Sanchar Nigam
(B) Indian Telephone Industries
(C) Hindustan Latex
(D) Rashtriya Ispat

21. Invisible export means export of—
(A) Services
(B) Prohibited goods
(C) Unrecorded goods
(D) Goods through smuggling

22. A labour intensive industry is one that—
(A) Requires hard manual labour
(B) Pays adequate wages to the labour
(C) Employs more hands
(D) Provides facilities to labour

23. Select the one which is not the responsibility of Gram Sabha under the Rural Employment Guarantee Act, 2005 ?
(A) To recommend projects to the Gram Panchayat and prepare list of possible works
(B) To receive applications for work and issue a dated receipt
(C) To monitor the execution of works within the Gram Panchayat
(D) To conduct regular social audits of all the projects taken up with in the Gram Panchayat

24. Special Economic Zones are being set up in—
(A) Agra, Kanpur and Modinagar
(B) Agra, Kanpur and Greater Noida
(C) Meerut, Moradabad, Kanpur and Noida
(D) Moradabad, Kanpur, Noida and Greater Noida

25. In the law of demand, the statement "other things remain constant" means—
(A) Income of consumer should not change
(B) Prices of other goods should not change
(C) Taste of consumer should not change
(D) All of the above

26. A firm is in equilibrium when its—
(A) Marginal cost equals the marginal revenue
(B) Total cost is minimum
(C) Total revenue is maximum
(D) Average revenue and marginal revenue are equal

27. The World Trade Organisation (WTO) was earlier known as—
(A) GATT
(B) UNICEF
(C) UNCTAD
(D) FAO

28. Given the money wages, if the price level in an economy increases, then the real wages will—
(A) Increase
(B) Decrease
(C) Remain constant
(D) Become flexible

29. The difference between visible exports and visible imports is defined as—
(A) Balance of trade
(B) Balance of payment
(C) Balanced terms of trade
(D) Coins from trade

30. What is Value Added Tax (VAT)
(A) A simple, transparent, easy to pay tax imposed on consumers
(B) A new initiative taken by the government to increase the tax-burden of high income groups
(C) A single tax that replaces state taxes like, surcharge turnover tax , etc.
(D) A new tax to be imposed on the producers of capital good

31. The outcome of devaluation of currency is—
(A) Increased export and improvement in balance of payment
(B) Increased export and foreign reserve deficiency
(C) Increased import and improvement in balance of payment
(D) Increased export and import

32. In India, "yellow revolution" is associated with—
(A) Production of paddy
(B) Production of oilseeds
(C) Production of tea
(D) Production of flower

33. The term "Green GNP" emphasizes—
(A) Rapid growth of GNP
(B) Increase in per capita income
(C) Economic development
(D) Sustainable development

34. The common currency which has been introduced among 12 European Nations is known as—
(A) Euro pound
(B) Euro
(C) Euro Dollar
(D) None of these

35. What is referred to as "Depository services" ?
(A) A new scheme of fixed deposits
(B) A method of regulating stock exchanges
(C) An agency for safe-keeping of securities
(D) An advisory service to investors

36. Who amongst the following was the head of the investment commission which submitted its report to the government of India recently ?
(A) Mr. Ratan Tata
(B) Dr. Rakesh Mohan
(C) Mr. Kumar Mangalam Birla
(D) Mr. Rahul Bajaj
(E) None of these

37. The government of India is planing to acquire around 60% share holding in which of the following banks from the Reserve Bank of India ?
(A) Punjab National Bank
(B) Bank of India
(C) State Bank of India
(D) Indian Bank
(E) None of these

38. Which of the following organization/agencies recently issued guidelines for fair practices code for non-banking finance companies ?
(A) SEBI
(B) NABARD
(C) Central Board of Direct Taxes
(D) Reserve Bank of India

39. Industrial exit policy means—
(A) Forcing foreign companies to leave India
(B) Forcing business units to move out of congested localities
(C) Allowing manufactures to shift their line products
(D) Allowing business units to close down

40. The United Western Bank which was recently in news is a—
(A) Nationalized Bank
(B) Private Bank
(C) Co-operative Bank
(D) Foreign Bank
(E) Regional Rural Bank

41. The name of noted economist Prof. Suresh Tendulkar was in news as he has—
(A) Taken over as the chairman of the National Statistical Commission
(B) Taken over as the Chief Economic Advisor to the Prime Minister of India
(C) Been nominated for the Nobel Prize in Economics for 2007
(D) Taken over as the Deputy Chairman of the Planning Commission of India
(E) Been inducted in the union cabinet as the new Deputy Finance Minister

42. How much amount, the Govt. of India is planning to provide as a one time financial help to revitalize the co-operative credit system in India ?
(A) Rs. 8,000 crore
(B) Rs. 10,000 crore
(C) Rs. 12,000 crore
(D) Rs. 14,000 crore
(E) Rs. 20,000 crore

43. As per the new guidelines issued by the SEBI, mutual funds are now allowed to invest in which of the following sectors ?
(A) Service sector
(B) Real estate
(C) Manufacturing sector
(D) IT sector
(E) None of these

44. What is money laundering ?
(A) Providing money for criminal purpose
(B) Transferring cash from one place to another
(C) Keeping huge amount of cash in house instead of a bank
(D) Depositing money on behalf of some other person
(E) None of these

45. When decimal method was introduced in the Indian monetary system ?
(A) 1950
(B) 1954
(C) 1957
(D) 1960

46. The name "Wall street" is associated with—
(A) The newspaper centre of Britain
(B) The financial centre of USA
(C) The great wall of China
(D) A renowned street in France

47. Which authority decides about the states' share in central taxes ?
(A) Finance commission
(B) Planning commission
(C) Election commission
(D) Finance ministry

48. The Bank Rate Policy is a component of—
(A) Fiscal policy
(B) Monetary policy
(C) Trade policy
(D) Direct control

49. Match list-I with list-II and select the correct answer using the codes given below :
List-I (Plans)
(a) Sixth Plan
(b) Seventh Plan
(c) Eighth Plan
(d) Tenth Plan
List-II (Realised Annual Growth Rate in per cent)
1. 5·4
2. 6·0
3. 6·7
4. 7·6
Codes :
(a) (b) (c) (d)
(A) 2 4 1 3
(B) 3 1 4 2
(C) 1 2 3 4
(D) 4 3 2 1

50. According to Human Development Index of 2001, arrange the following states in descending order and select the correct answer from the codes given below—
1. Punjab
2. Kerala
3. Bihar
4. Uttar Pradesh
Codes :
(A) 2 1 3 4
(B) 2 1 4 3
(C) 1 2 3 4
(D) 3 4 1 2

Answers
1. (E) 2. (C) 3. (D) 4. (B) 5. (B) 6. (A) 7. (B) 8. (C) 9. (C) 10. (A)
11. (C) 12. (A) 13. (C) 14. (B) 15. (D) 16. (A) 17. (D) 18. (B) 19. (A) 20. (B)
21. (A) 22. (C) 23. (B) 24. (B) 25. (D) 26. (A) 27. (A) 28. (B) 29. (A) 30. (C)
31. (A) 32. (B) 33. (D) 34. (B) 35. (C) 36. (A) 37. (C) 38. (D) 39. (D) 40. (B)
41. (A) 42. (D) 43. (B) 44. (E) 45. (C) 46. (A) 47. (A) 48. (B) 49. (C) 50. (B)