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Q1. Consider the following and state which of these is/are component/s of internal debt? (1) Market borrowings (2) Treasury Bills (3) Special securities issued to RBI .

1 ONLY

1 AND 2

2 ONLY

1,2 and 3

Q2. The primary function of the Finance Commission in India is to

Distribute revenue between the Centre and the States

Prepare the annual Budget

Advise the President on financial matters

Allocate funds to various ministries of the Union and the State governments.

Q3. Gilt edged market means

Bullion market

Market of Government securities

Market of guns

Market of pure metals

Q4. Consider the following statements and state which one/s is/are correct? The Indian rupee is full convertible (1) in respect of Current Account of Balance of Payment (2) In respect of Capital Account of Balance of Payment (3) Into gold

1 only

3 only

1 and 2

1,2 and 3

Q5. The growth rate of per capita income of current prices is higher than that of the per capita income at constant prices, because the latter takes into account the rate of .....

growth of population

increase in price level

growth of money supply

increase in the wage rate

Q6. A rise in SENSEX means

a rise in prices of shares of all companies registered with Mumbai Stock Exchange

A rise in prices of shares of all companies registered with National Stock Exchange

An overall rise in prices of shares of group of companies registered with Mumbai Stock Exchange

A rise in prices of shares of all companies belonging to a group of companies registered with Mumbai Stock Exchange.

Q7. ASSERTION {A}: The rate of growth of India's exports has shown an appreciable increase after 1991. REASON {R}: The Government of India has resorted to devaluation.

Both A and R are individually true and R is the correct explanation of A

Both A and R are individually true and R is not the correct explanation of A

A is true but R is false

A is false but R is true.

Q8. As per the latest (February 2013) guidelines of the Reserve Bank of India what is the minimum PAID UP capital to be paid by all new banks that are to be established?

200 Crores

250 Crores

300 Crores

500 Crores

Q9. What is M0, M1, M2, M3 and M4 in Economics?

demand for money

money supply

overdrafted money

trade deficit with select countries.

Q10. The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is NOT TRUE in this context?

with the advent of liberalisation, industrial investments/developments have largely been placed within the domain of private and multination sectors.

with markets assuming a central place, the role of central planning in many sectors has been rendered redundant.

the focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare

the nation's priorities have shifted away from industrial development to rural development.

Q11. Consider the following statements and state which one/s is/are correct? Small scale industries are, in most cases, not as efficient and competitive as the large scale ones. Yet the government provides preferential treatment and reservations in a range of products to the small firms beause small scale industries (1) provide higher employment on a per unit capital deployment basis. (2) promote a regional dispersion of industries and economic activities. (3) Have performed better in export of manufactured products than the large scale ones. (4) provide jobs to low skilled workers, who otherwise may not find employment avenues elsewhere.

1 and 4

1 and 2

2 and 3

3 and 4

Q12. The economic crisis in the later half of 1990s most seriously affected Indonesia, Thailand, Malaysia and South Korea. The cause of the crisis was.....

mismanagement of the financial resources and financial sector, in general

the prolonged over valuation of local currencies vis-à-vis the western currencies.

the downswing and recession in the western economies which earlier provided export market to these export oriented countries.

none of these.

Q13. As per the latest (February 2013) guidelines of the Reserve Bank of India what is the minimum PAID UP capital of the bank to be held by the holding company, in the case of new establishment of banks?

0.25

0.3

0.35

0.4

Q14. Going back to the economy period of the British period, for what does the term 'imperial preference" applied?

special privileges on British imports in India

Racial discrimination by the Britishers

Subordination of Indian interest to that of the British

Preference given to British political agents over Indian Princes.

Q15. ASSERTION {A}: Devaluation of a currency may promote export. REASON {R}: Price of the country's products in the international market may fall due to devaluation.

Both A and R are individually true and R is the correct explanation of A

Both A and R are individually true and R is not the correct explanation of A

A is true but R is false

A is false but R is true.

Q16. What distinguishes "economic growth" from "economic development" is that the latter implies

an increase in per capita income

changes in institutions and attitudes

concern for ecology and environment

all of these

Q17. 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.

Both A and R are individually true and R is the correct explanation of A

Both A and R are individually true and R is not the correct explanation of A

A is true but R is false

A is false but R is true.

Q18. The national income of a nation is the

government's annual revenue

sum total of factor incomes

surplus of public sector undertakings

exports minus imports

Q19. Persons below the poverty line in India are classified as such based on whether

they are entitled to a minimum prescribed food basket

they get work for a prescribed minimum number of days in a year

they belong to agricultural labourers household and the scheduled case/tribe social group

their daily wages fall below the prescribed minimum wages.

Q20. Which one of the following statements about the levying, collection and distribution of income tax is correct?

The Union levies, collects and distributes the proceeds of income tax between itself and the states.

the Union levies, collects and keeps all the proceeds of income tax with itself

the Union levies and collects the tax but all the proceeds are distributed among the states.

only the surcharge levied on income tax is shared between the Union and the States.

Q21. Consider the following statements and pick the one/s that is/are correct: Industrial development in India, to an extent, is constrained by (1) lack of adequate entrepreneurship and leadership in business. (2) lack of savings to invest (3) lack of technology, skills and infrastructure (4) limited purchasing power among the larger masses.

1, 2 and 3

1, 3 and 4

2, 3 and 4

1, 2 and 4

Q22. The currency of the European Monetary Union is .......

Guilder

Dollar

Euro

Mark

Q23. The supply-side economics lays greater emphasis on the point of view of .....

producer

global economy

consumer

middle man

Q24. The accounting year of the Reserve Bank of India is ....

January to December

April to March

July to June

October to September

Q25. Economic Survey in India is published officially, every year by the

Reserve Bank of India

Planning Commission of India

Ministry of Finance

Statistical Commission of India

Q26. In India, the inflation is measured by the

wholesale price index number

consumer price index for urban non manual workers

consumer price index for agricultural workers

national income deflation

Q27. The Sixth and the Eighth Five Year Plans covered the period 1980-1985 and 1992-1997 respectively. The Seventh Five Year Plan covered the period ......

1987..1992

1986..1991

1985..1990

1988..1993

Q28. Which of the following comes under non-plan expenditure? (1) subsidies (2) interest payments (3) Defence expenditure (4) Maintenance expenditure for the infrastructure creat4ed in the previous plans.

1 and 2

1 and 3

2 and 4

all of them

Q29. National Income is the

Net National product at Market price

Net National Product at factor cost

Net Domestic Product at market price

Net Domestic Product at factor cost

Q30. The average rate of domestic savings (gross) for the Indian economy as reported last for (2011) is estimated to be in the range of

20% +

25% +

30% +

35% +

Q31. The sum of which of the following constitutes Broad Money in India ? (1) Currency with the Public (2) Demand deposites with banks (3) Time Deposits with banks (4) Other deposits with Reserve Bank of India.

1 and 2

1,2 and 3

1,2,3 and 4

1, 2 and 4

Q32. Hawala transactions relate to payments

received in rupees against overseas currencies and vice versa without going through the official channels

received for sale transfer of shares without going through the established stock exchanges

received as commission for services rendered to overseas investors/buyers/sellers in assisting them to get over the red tape and/or in getting preferential treatment

made to political parties or to individuals for meeting election expenses.

Q33. Which one of the following is correct regarding stabilisation and structural adjustment as two components of the economic policy adopted?

stabilisation is a gradual, multi step process while structural adjustment is a quick adaptation process

structural adjustment is a gradual, multi-step process, while stabilisation is a quick adaptation process

stabilisation and structural adjustment are very similar and complementary policies. It is difficult to separate one from the other.

stabilisation mainly deals with a set of policies which are to be implemented by the Central Government while structural adjustment is to be set in motion by the State governments.

Q34. ASSERTION {A}: An important policy instrument of economic liberalisation is reduction in import duties on capital goods. REASON {R}: Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets

Both A and R are individually true and R is the correct explanation of A

Both A and R are individually true and R is not the correct explanation of A

A is true but R is false

A is false but R is true.

Q35. "Structural Planning" refers to .....

laying down broad goals and strategies

centralised planning

fixing flexible targets

changing existing institutions or creating new ones.

Q36. One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because

convertibility of the rupee will stabilise currencies of the world

it will attract more foreign capital inflow in India

it will help promote exports

it will help India secure loans from the world financial markets at attractive terms.

Q37. The philosophy behind economic planning recognizes that .....

public sector is inherently superior

markets and price system alone cannot ensure human welfare

human beings are essentially selfish

socialism is superior to capitalism

Q38. Which of the following were the aims behind the setting up of the World Trade Organisation? (1) Promotion of free trade and resource flows across countries. (2) Protection of intellectual property rights. (3) Managing balanced trade between different countries (4) Promotion of trade between the former East Bloc countries and the Western world.

all of them

1 and 2

2 and 3

1 and 4

Q39. ASSERTION {A}: Though India's national income has gone up by several fold since 1947, there has been no marked improvement in the per capital income level. REASON {R}: Sizeable proportion of the population of India is still living below the poverty line.

Both A and R are individually true and R is the correct explanation of A

Both A and R are individually true and R is not the correct explanation of A

A is true but R is false

A is false but R is true.

Q40. A redistribution of income in a country can be best brought about through

progressive taxation combined with progressive expenditure

progressive taxation combined with regressive expenditure

regressive taxation combined with regressive expenditure

regressive taxation combined with progressive expenditure

Q41. Bank Rate implies the rate of interest

paid by the RBI on the deposits of commercial banks

charged by banks on loans and advances

payable on bonds

at which the RBI discounts the Bills of Exchange

Q42. Consider the following and arrange them in the chronological order of their period of establishment: (1) Industrial Finance Corporation of India (2) Industrial Credit and Investment Corporation of India (3) Industrial Development Bank of India (4) Unit Trust of India.

1,2,4 and 3

1,3,2 and 4

4,3,2 and 1

1,4,3 and 2

Q43. What was the annual growth rate aimed at in the Eighth Five Year Plan?

0.056

0.06

0.065

0.07

Q44. Which of the following are among the non plan expenditures of the government? (1) Defence expenditure (2) subsidies (3) All expenditures linked with the previous plan periods (4) Interest payament.

1 and 2

1 and 3

2 and 4

all of them

Q45. The Narasimhan Committee for Financial Sector Reforms has suggested reduction in

SLR and CRR

SLR, CRR and Priority Sector Financing

SLR and Financing to Capital goods sector

CRR, Priority sector Financing and Financing to capital goods sector

Q46. One of the resons for India's occupational structure remaining more or less the same over the years has been that

investment pattern has been directed towards capital intensive industries

productivity in agriculture has been high enough to induce people to stay with agriculture

ceilings on land holdings have enabled more prople to own land and hence their preference to stay with agriculture

People are largely unaware of the significance of transition from agriculture to industry for economic development.

Q47. The main reason for low growth rate in India, in spite of improving rate of savings and capital formation is .....

high birth rate

low level of foreign aid

low capital/output ratio

high capital/output ratio

Q48. The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from

Balance from current revenue

contribution of public enterprises

Government borrowings from abroad

deficit financing

Q49. The theory of "Demographic Transition" is not universally valid in the case of India because .......

population statistics are not reliable

prevalence of female illiteracy is more in certain states

some states are far ahead of others in achieving norms

the sex ratio varies from state to state

Q50. To prevent recurrence of scams in Indian Capital Market, the government of Indian has assigned regulatory powers to

SEBI

RBI

SBI

ICICI

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