Economics MCQ PDF

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GK MCQ : Economics
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1. The process of curing inflation by reducing money supply is called

(a) Cost-push inflation (b) Demand-pull inflation (c) Disinflation (d) Reflation
2. Indian agriculture is typically characterized as
(a) land surplus, labour scarce economy (b) land surplus, labour surplus economy
(c) land scarce, labour surplus economy (d) land scarce, labour scarce economy
3. Which of the following items is a major item of Indian export?
(a) Computer chips (b) Potato chips (c) Textile garments (d) Car engines
4. Price theory is also known as
(a) Macro Economics (b) Development Economics (c) Public Economics (d) Micro Economics
5. Which of the statements is correct about India’s national income?
(a) Percentage share of agriculture is higher than services
(b) Percentage share of industry is higher than agriculture
(c) Percentage share of services is higher than industry
(d) Percentage share of services is higher than agriculture and industry put together
6. The gradation and standardization of agricultural products are conducted through
(a) Food Corporation of India (b) Directorate of Marketing and Inspection
(c) Indian Standards Institution (d) Central Statistical Organization
7. When too much money is chasing too few goods, the situation is
(a) Deflation (b) Inflation (c) Recession (d) Stagflation
8. One of the main factors that led to rapid expansion of Indian exports is
(a) Imposition of import duties (b) Liberalization of the economy
(c) Recession in other countries (d) Diversification of exports
9. Cheap money means
(a) Low rates of interest (b) Low level of saving (c) Low level of income (d) Low level of
standard of living
10. Compared to the rich the poor save
(a) A larger part of their income (b) An equal part of their income
(c) A smaller part of their income (d) All of their incomes
11. Kisan Credit Card scheme was introduced in
(a) 1991 (b) 1996 (c) 1998 (d) 2000
12. Government takes ‘ways and means advances’ from
(a) RBI (b) IDBI (c) SBI (d) ICICI
13. ‘NABARD’ is associated with the development of
(a) agricultural sector and rural areas (b) heavy industries (c) banking sector (d) real estates
14. The permission given to a bank customer to draw cheques in excess of his current account balance is called
(a) a personal loan (b) an ordinary loan (c) discounting a bill of exchange (d) an overdraft
15. Which of the following taxes is not collected by the Central Government?
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(a) Income tax (b) Customs duty (c) Professional tax (d) Excise duty
16. Tire supply of agricultural products is generally
(a) elastic (b) inelastic (c) perfectly elastic (d) perfectly inelastic
17. With which form of economy is the term ‘Laissez-faire’ associated?
(a) Capitalist economy (b) Socialist economy (c) Mixed economy (d) Command economy
18. When the total product rises at an increasing rate, the
(a) marginal product is zero (b) marginal product is rising
(c) marginal product is falling (d) marginal product remains constant
19. The definition of ‘small-scale industry’ in India is based on
(a) sales by the unit (b) Investment in machines and equipments (c) market coverage (d) export capacity
20. Economies of Scale means reduction in
(a) unit cost of production (b) unit cost of distribution (c) total cost of production (d) total cost of
distribution
21. Free Trade refers to
(a) free movement of goods from one country to another (b) movement of goods free of cost
(c) unrestricted exchange of goods and service (d) trade free of duty
22. Imputed gross rent of owner occupied buildings is a part of
(a) capital formation (b) final consumption (c) intermediate consumption (d) consumer durable
23. Purchasing Power Parity theory is related with
(a) Interest rate (b) Bank rate (c) Wage rate (d) Exchange rate
24. Excise duty on a commodity is payable with reference to its
(a) production (b) production and sale (c) production and transportation (d) production, transportation and sale
25. Knowledge, technical skill, education etc. in economics, are regarded as
(a) social-overhead capital (b) human capital (c) tangible physical capital (d) working capital
26. Which is the most essential function of an entrepreneur ?
(a) Supervision (b) Management (c) Marketing (d) Risk bearing
27. Bank Rate refers to the Interest rate at which
(a) Commercial banks receive deposits from the public (b) Central bank gives loans to Commercial banks
(c) Government loans are floated (d) Commercial banks grant loans to their customers
28. All of the goods which are scarce and limited in supply are called
(a) Luxury goods (b) Expensive goods (c) Capital goods (d) Economic goods
29. Which of the following is a better measurement of Economic Development?
(a) GDP (b) Disposable income (c) NNP (d) Per capita income
30. Foreign currency which has a tendency of quick migration is called
(a) Scarce currency (b) Soft currency (c) Gold currency (d) Hot currency
31. In India, disguised unemployment is generally observed in
(a) the Agricultural sector (b) the Factory sector (c) the Service sector (d) All these sectors
32. The demand curve for a Giffen good is
(a) upward rising (b) downward falling (c) parallel to the quantity axis (d) parallel to the price axis
33. "Supply creates its own demand" - Who said this ?
(a) J. B. Say (b) J.S. Mill (c) J. M. Keynes (d) Senior
34. Engel’s Law states the relationship between
(a) quantity demanded and price of a commodity (b) quantity demanded and price of substitutes
(c) quantity demanded and tastes of the consumers (d) quantity demanded and income of the consumers
35. Which one of the following items is not included in the current account of India's Balance of Payments ?
(a) Short-term commercial borrowings (b) Non-monetary gold movements
(c) Investment income (d) Transfer payments
36. Capital : Output Ratio of a measures
(a) its per unit cost of production (b) the amount of capital invested per unit of output
(c) the ratio of capital depreciation to quantity of output (d) the ratio of working capital employed to quantity of output
37. ‘The national income consists of a collection of goods and services reduced to common basis by being measured in
terms of money.”— Who says this?
(a) Samuelson (b) Kuznets (c) Hicks (d) Pigou
38. What does ECS in banking transactions stand for?
(a) Excess Credit Supervisor (b) Extra Cash Status
(c) Exchange Clearing Standard (d) Electronic Clearing Service
39. Which of the following is the classification of Industries on the basis of raw-materials?
(a) Small Scale -Large scale (b) Primary and Secondary
(c) Basic and Consumer (d) Agro-based and Mineral based
40. Who propounded the 'market law?
(a) Adam Smith (b) J.B. Say (c) T.R. Malthus (d) David Recardo
41. The practice of selling goods in a foreign country at a price below their domestic selling price is called
(a) 'diplomacy' (b) 'discrimination' (c) ‘dumping’ (d) ‘double pricing
42. An expenditure that has been made and cannot be recovered is called
(a) Variable cost (b) Opportunity cost (c) Sunk cost (d) Operational cost
43. Bank deposits that can be withdrawn without notice are called
(a) account payee deposits (b) fixed deposits (c) variable deposits (d) demand deposits
44. New capital issue is placed in
(a) Secondary market (b) Grey market (c) Primary market (d) Black market
45. Prime cost is equal to
(a) Variable cost plus administrative cost (b) Variable cost plus fixed costs
(c) Variable cost only (d) Fixed cost only
46. If the tax rate increases with the higher level of income, it shall be called
(a) Proportional tax (b) Progressive tax (c) Lump sum tax (d) Regressive tax
47. Capital formation in an economy depends on
(a) Total Income (b) Total demand (c) Total savings (d) Total production
48. Industrial exit policy means
(a) forcing foreign companies to leave India (b) forcing business units to move out of congested localities
(c) allowing manufacturers to shift their line of products (d) allowing business units to dose down
49. Which of the following does not determine supply of labour?
(a) Size and age-structure of population (b) Nature of work
(c) Marginal productivity of labour (d) Work-leisure ratio
50. if the price of tea fails, demand for coffee will
(a) increase (b) decrease (c) remain same (d) None of these
51. Seawater, fresh air, etc., are regarded in Economics as
(a) Giffen goods (b) inferior goods (c) free goods (d) normal goods
52. The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be
produced and in what quantities is known as
(a) Consumer Protection (b) Consumer's Decision (c) Consumer Preference (d) Consumer’s Sovereignty
53. According to modem thinking, the law of diminishing returns applies to
(a) agriculture (b) industry (c) mining (d) all fields of production
54. In Economics, production means
(a) manufacturing (b) making (c) creating utility (d) farming
55. Inflation occurs when aggregate supply is
(a) more than aggregate demand (b) less than aggregate demand
(c) equal to aggregate demand (d) None of these
56. ‘Golden Handshake Scheme’ is associated with
(a) inviting foreign companies (b) private investment in public enterprises
(c) establishing joint enterprises (d) voluntary retirement
57. When a large number of investors in a country transfer investments elsewhere because of disturbed economic
conditions, it is called
(a) Transfer of Capital (b) Escape of Capital (c) Outflow of Capital (d) Flight of Capital
58. How will a reduction in ‘Bank Rate’ affect the availability of credit ?
(a) Credit will increase (b) Credit will not increase (c) Credit will decrease (d) None of these
59. A mixed economy works primarily through the
(a) market mechanism (b) central allocative machinery
(c) market mechanism regulated by Government policy (d) market mechanism guided by Government participation
and planning
60. ‘Gresham’s Law’ in Economics relates to
(a) supply and demand (b) circulation of currency
(c) consumption of supply (d) distribution of goods and services
61. The ‘Interest Rate Policy’ is a component of
(a) Fiscal Policy (b) Monetary Policy (c) Trade Policy (d) Direct Control
62. What is referred to as 'Depository Services' ?
(a) A new scheme of fixed deposits (b) A method for regulating stock exchanges
(c) An agency for safe-keeping of securities (d) An advisory service to investors
63. The term ‘Green GNP’ emphasises
(a) rapid growth of GNP (b) increase in per capita income (c) economic development (d) sustainable
development
64. 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
65. 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 goods
66. 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) Gains from trade
67. 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
68. 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
69. In the law of demand, the statement “Other things remain constant" means
(a) income of consumer should not change (b) price of other goods should not change
(c) taste of consumer should not change (d) All of the above
70. Which organization collects data for the unorganized sector ?
(a) NSSO (b) CSO (c) ASI (d) RBI
71. Scheduled Banks have to be registered with
(a) SEBI (b) RBI (c) Finance Ministry (d) SBI
72. Which of the following is not viewed as national debt ?
(a) Life Insurance Policies (b) Long-term Government Bonds
(c) National Savings Certificates (d) Provident Fund
73. Excise duty on a commodity is payable with reference to its
(a) production (b) production and sale (c) production and transportations (d) production, transportation and sale
74. The data collection for national income estimation is conducted in India by—
(a) The Finance Ministry of the Government of India (b) The RBI
(c) The NSSO (National Sample Survey Organization) (d) None of these
75. A country’s balance of trade is unfavourable when—

(a) exports exceed imports (b) imports exceed exports (c) terms of trade become unfavourable (d) None of
these
76. The annual record for all the monetary transactions of a country with other countries of the world is known as
(a) Balance of trade (b) Balance of monetary-receipts (c) Balance of payments (d) Balance Sheet
77. Bank-rate is the rate at which
(a) a commercial bank borrows loans from some other commercial bank
(b) the central bank borrows loans from the Government
(c) the commercial bank gives loans to the public
(d) the central bank re-discounts the commercial bills brought to it by the commercial banks
78. Who among the following has suggested tax on expenditure?
(a) Dalton (b) Kaldor (c) Musgrave (d) Gautam Mathur
79. In calculating National Income which of the following is included?
(a) Services of housewives (b) Pensions (c) Income of smugglers (d) Income of watchmen
80. In a Laissez-faire economy
(a) the customers take all the decisions regarding production of all the commodities
(b) the Government does not interfere in the free functioning of demand and supply forces in the market
(c) the private-sector takes all the decisions for price-determination of various commodities produced
(d) the Government controls the allocation of all the factors of production
81. Gresham's law is related to
(a) Consumption and demand (b) Supply and demand (c) Circulation of money (d) Deficit financing
82. One of the essential conditions of Monopolistic competition is
(a) Many buyers but one seller (b) Price discrimination (c) Product differentiation (d) Homogeneous product
83. NIFTY is associated with
(a) Cloth Market Price Index (b) Consumer Price Index (c) BSE Index (d) NSE Index
84. Rate of interest is determined by
(a) The rate of return on the capital invested (b) Central Government
(c) Liquidity preference (d) Commercial Banks
85. The ‘break-even point' is where
(a) marginal revenue equals marginal cost (b) average revenue equals average cost
(c) total revenue equals total cost (d) None of these
86. The fixed cost on such factors of production which are neither hired nor bought by the firm is called
(a) social cost (b) opportunity cost (c) economic cost (d) surcharged cost
87. Devaluation makes import
(a) Competitive (b) Inelastic (c) Cheaper (d) Dearer
88. The share broker who sells shares in the apprehension of failing prices of shares is called
(a) Bull (b) Dog (c) Bear (d) Stag
89. Bull and bear are related to which commercial activity ?
(a) Banking (b) E-commerce (c) International trade (d) Stock market
90. While determining income the expenditure on which of the following items is not considered as investment ?
(a) Construction of factory (b) Computer (c) Increase in the stock of unsold articles (d) Stock and share in
joint stock company
91. Gresham's Law means
(a) Good money replaces bad money in circulation (b) Bad money replaces good money in circulation
(c) Good money promotes bad money in the system (d) Bad money promotes good money in the system
92. Which of the following results by dividing national income by size of population?
(a) Per capita income (b) Subsistence level (c) Subsistence expenditure (d) Per capita production
93. Which of the following taxes is such which does not cause rise in price?
(a) Import duty (b) Income tax (c) Octorol (d) Sales tax
94. The sum total of incomes received for the services of labour, land or capital in a country is called :
(a) Gross domestic product (b) National income (c) Gross domestic income (d) Gross national income
95. “Legal Tender Money” refers to:
(a) Cheques (b) Drafts (c) Bill of exchange (d) Currency notes
96. Sellers market denotes a situation where :
(a) commodities are available at competitive rates (b) demand exceeds supply
(c) supply exceeds demand (d) supply and demand are evenly balanced
97. “Dear Money” means
(a) low rate of interest (b) high rate of interest (c) depression (d) inflation
98. Which of the following is not required while computing Gross National Product (GNP) ?
(a) Net foreign investment (b) Private investment
(c) Per capita income of citizens (d) Purchase of goods by government
99. Investment and savings are kept equal through a change in the level of
(a) Consumption (b) Investment (c) Government expenditure (d) Income
100. A commercial bank law creates credit only if it has .
(a) Cash in the vault (b) Excess reserves
(c) Permission of Reserve Bank of India (d) Cooperation of other banks
101. Interest on public debt is part of
(a) Transfer payments by the enterprises (b) Transfer payments by the government
(c) National income (d) Interest payments by households
102. Which of the following can be used for checking inflation temporarily ?
(a) Increase in wages (b) Decrease in money supply (c) Decrease in taxes (d) None of these
103. Operating Surplus arises in the
(a) Government Sector (b) Production for self-consumption (c) Subsistence farming (d) Enterprise Sector
104. Bank rate is the rate of interest:
(a) At which public borrows money from Commercial Banks (b) At which public borrows money from R.B.I.
(c) At which Commercial Banks borrow money from R.B.I. (d) At which Commercial Banks borrow money from the
public
105. A closed economy is one which
(a) Does not trade with other countries (b) Does not possess any means of international transport
(c) Does not have a coatastal line (d) Is not a member of the U.N.O.
106. Deficit financing is an instrument of
(a) monetary policy (b) credit policy (c) fiscal policy (d) tax policy
107. The difference between the GNP and the NNP is equal to the
(a) consumer expenditure on durable goods (b) direct tax revenue
(c) indirect tax revenue (d) capital depreciation
108. In a business, raw materials, components, work in progress and finished goods are jointly regarded as
(a) capital stock (b) inventory (c) investment (d) net worth
109. Investment is equal to
(a) gross total of all types of physical capital assets (b) gross total of all capital assets minus wear and tear
(c) stock of plants, machines and equipments (d) None of these
110. The ratio of a bank's cash holdings to its total deposit liabilities is called the
(a) Variable Reserve Ratio (b) Cash Reserve Ratio (c) Statutory Liquidity Ratio (d) Minimum Reserve Ratio
111. Which amidst the following is not a credit rating agency ?
(a) CRISIL (b) CARE (c) ICRA (d) IFCI
112. Which unit of valuation is known as “Paper gold” ?
(a) Eurodollar (b) Petrodollar (c) SDR (d) GDR
113. Which one of the following taxes is collected and utilized by the State Governments ?
(a), Personal income tax (b) Corporation tax (c) Land revenue (d) Custom duties
114. When marginal utility is zero, the total utility is
(a) Minimum (b) Increasing (c) Maximum (d) Decreasing
115. Equilibrium price means

(a) Price determined by demand and supply (b) Price determined by Cost and Profit
(c) Price determined by Cost of production (d) Price determined to maximize profit
116. When aggregate supply exceeds aggregate demand
(a) unemployment falls (b) prices rise (c) inventories accumulate (d) unemployment develops
117. Who are the creditors of a Corporation?
(a) Bondholders (b) Stockholders (c) Both Bond and Stock holders (d) Holders of preferred stock
118. According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes
(a) a fall in prices of output and resources (b) a fall in real gross National product and employment
(c) a rise in real gross National product and investment (d) a rise in prices of output and resources
119. Devaluation usually causes the internal prices to :
(a) fall (b) rise (c) remain unchanged (d) None of the above
120. A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as-
(a) defence (b) betting (c) inter-trading (d) mortgage
121. Evaluating all the options to find out most suitable solution to business problems is inter-displinary activities. It is
called
(a) Professional research (b) Management research (c) Operational research (d) Commercial research
122. Basic infrastructure facilities in Economics are known as :
(a) Human capital (b) Physical capital (c) Social overheads capital (d) Working capital
123. What are the main components of basic social infrastructure of an economy ?
(a) Education, Industry and Agriculture (b) Education, Health and Civil amenities
(c) Transport, Health and Banks (d) Industry, Trade and Transport
124. Which of the following concepts are most closely associated with J.M. Keynes?
(a) Control of money supply (b) Marginal utility theory
(c) Indifference curve analysis (d) Marginal efficiency of captial
125. The best measure to assess a country’s economic growth is
(a) per capita income at constant prices (b) per capita income at current prices
(c) gross domestic product at current prices (d) gross national product at current prices
126. Which nationalized bank of India has a shining star as its emblem?
(a) Syndicate Bank (b) Indian Bank (c) Bank of India (d) Bank of Baroda
127. Transfer earning or alternative cost is otherwise known as
(a) Variable cost (b) Implicit cost (c) Explicit cost (d) Opportunity cost (economic cost)
128. The main source of long-term credit for a business unit is
(a) sale of stocks and bonds to the public (b) borrowing from banks
(c) loans from the Government (d) deposits from the public and financial institutions
129. State which of the following is correct? The Consumer Price Index reflects :
(a) the standard of living (b) the extent of inflation in the prices of consumer goods
(c) the increasing per capita income (d) the growth of the economy
130. What is “narrow money” ?
(a) The sum of currency in circulation and the demand deposits in banks
(b) The sum of M, money and the time deposits
(c) The sum of currency in circulation with the public and the cash reserves held by banks
(d) The market value of the stocks held by all the holders excluding the promoters
131. Entrepreneurial ability is a special kind of labour that
(a) is hired out to firms at high wages (b) organizes the process of production
(c) produces new capital goods to earn interest (d) manages to avoid losses by continual innovation
132. Equilibrium is a condition that can
(a) never change (b) change only if some outside factor changes
(c) change only if some internal factor changes (d) change only if government policies change
133. Devaluation of money means :
(a) decrease in the internal value of money (b) decrease in the external value of money
(c) decrease in both internal and external value of money (d) the government takes back currency notes of any
denominations
134. Government securities are considered liquid because they are
(a) backed by the Government treasury (b) convertible into other types of saving deposits
(c) quickly and easily marketable (d) stable in value
135. The method of calculating the national income by the product method is otherwise known as :
(a) Income method (b) Value added method (c) Expenditure method (d) Net output method
136. What is “book-building” ?
(a) Preparing the income and expenditure ledgers of a company (book-keeping)
(b) Manipulating the profit and loss statements of a company
(c) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
(d) Publishers' activity
137. The incidence of sales tax falls on
(a) Consumers (b) Wholesale dealers (c) Retail dealers (d) Producers
138. An economy is in equilibrium when
(a) planned consumption exceeds planned saving (b) planned consumption exceeds planned investment
(c) intended investment equals intended investment (d) intended investment exceeds intended savings
139. Which of the following groups suffer the most from inflation?
(a) Debtros (b) Creditors (c) Business class (d) Holders of real assets
140. The existence of a Parallel Economy or Black Money
(a) makes the economy more competitive (b) makes the monetary policies less effective
(c) ensures a better distribution of income and wealth (d) ensures increasing productive investment
141. In equilibrium, a perfectly competitive firm will equate
(a) marginal social cost with marginal social benefit (b) market supply with market demand
(c) marginal profit with marginal cost (d) marginal revenue with marginal cost
142. The Marginal Utility Curve slopes downward from left to right indicating
(a) A direct relationship between marginal utility and the stock of commodity
(b) A constant relationship between marginal utility and the stock of commodity .
(c) A proportionate relationship between marginal utility and the stock of commodity
143. If the price of an inferior good falls, its demand
(a) rises (b) falls (c) remains constant (d) can be any of the above
144. 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
145. Economic rent refers to
(a) Payment made for the use of labour (b) Payment made for the use of capital
(c) Payment made for the use of organization (d) Payment made for the use of land
146. Average Revenue means
(a) the revenue per unit of commodity sold (b) the revenue from all commodities sold
(c) the profit realized from the marginal unit sold (d) the profit realized by sale of all commodities
147. The measure of a worker's real wage is
(a) The change in his productivity over a given time (b) His earnings alter deduction at source
(c) His daily earnings (d) The purchasing power of his earnings
148. When there is one buyer and many sellers then that situation is called
(a) Monopoly (b) Single buyer right (c) Downright (d) Double buyers right
149. The standard of living in a country is represented by its:
(a) poverty ratio (b) per capita income (c) national income (d) unemployment rate
150. Buoyancy of a tax is defined as
(a) percentage increase in tax revenue/percentage increase in tax base
(b) increase in tax revenue/ percentage increase in tax coverage

(c) increase in tax revenue/increase in tax base
(d) percentage increase in tax revenue/ increase in tax coverage
151. ‘Marginal efficiency of capital' is
(a) expected rate of return on new investment (b) expected rate of return of existing investment
(c) difference between rate of profit and rate of interest (d) value of output per unit of capital invested
152. The income elasticity of demand being greater than one, the commodity must be
(a) a necessity (b) a luxury (c) an inferior good (d) None of these
153. When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before,
the quantity demanded will
(a) decrease (b) increase (c) remain the same (d) contract
154. When too much money is chasing too few goods, the situation is
(a) deflation (b) inflation (c) recession (d) stagflation
155. What does a Leasing Company provide ?
(a) Machinery and capital equipment on hire (b) Legal guidance in establishing an enterprise
(c) Office accommodation on hire (d) Technical consultancy and experts for a fee
156. A tax is characterized by horizontal equity if its liability is
(a) proportional to the income of tax payers (b) similar for tax payers in similar circumstances
(c) proportional to the expenditure of tax payers (d) the same for every tax payer
157. What is USP in marketing field?
(a) Uninterrupted power supply (b) Universal standards of production .
(c) US Programme based (d) Exclusive marketing features
158. Movement along the same demand curve is known as
(a) Extension and Contraction of Demand (b) Increase and Decrease of Demand
(c) Contraction of supply (d) Increase of supply
159. Say’s Law of Market holds that
(a) supply is not equal to demand (b) supply creates its own. demand
(c) demand creates its own supply (d) supply is greater than demand
160. If an industry is characterized by economies of scale then
(a) barriers to entry are not very. large
(b) long run unit costs of production decreases as the quantity the firm produces increases
(c) capital requirement are small due to the efficiency of the large scale operation
(d) the costs of entry into the market are likely to be substantial
161. The theory of distribution relates to which of the following?
(a) The distribution of assets (b) The distribution of income
(c) The distribution of factor payments (d) Equality in the distribution of the income and wealth
162. Structural unemployment arises due to:
(a) deflationary conditions (b) heavy industry bias
(c) shortage of raw materials (d) inadequate productive capacity
163. Interest on public debt is a part of :
(a) transfer payments by the enterprises (b) transfer payments by the Govt.
(c) national income (d) interest payments by households
164. The major aim of devaluation is to :
(a) encourage imports (b) encourage exports
(c) encourage both exports and imports (d) discourage both exports and imports
165. Which one of the following is NOT an example of indirect tax?
(a) Sales tax (b) Excise duty (c) Customs duty (d) Expenditure tax
166. Investment is equal to:
(a) gross total of all types of physical capital assets (b) gross total of all capital assets minus wear and tear
(c) stock of plants, machines and equipments (d) None of the above
167. One of the essential conditions of perfect competition is:

(a) product differentiation (b) multiplicity of prices for identical products at any one time.
(c) many sellers and a few buyers. (d) Only one price for identical goods at any one time.
168. Indirect tax means :
(a) there is not direct relationship between the tax payer and the government.
(b) direct relationship between tax payer and the government.
(c) tax base is income (d) the incidence and impact are on the same person on whom tax is imposed.
169. Agricultural Technology is hard to spread because :
(a) it has to be adopted to local conditions. (b) rural people me not receptive
(c) farmers are afraid to experiment on land for fear of failure. (d) all of the above.
170. Who said ‘Supply creates its own demand’?
(a) Adam Smith (b) J.B. Saw (c) Marshall (d) Ricardo
171. Which of the following most closely approximates our definition of oligopoly?
(a) The cigarette industry. (b) The barber shops (c) The gasoline stations (d) Wheat farmers
172. Personal disposable income is :
(a) always equal to personal income. (b) always more than personal income.
(c) equal to personal income minus direct taxes paid by household (d) equal to personal income minus indirect taxes.
173. A financial instrument is called a ‘primary security’ if it represents the liability of :
(a) some ultimate borrower (b) the Government of India (c) a primary cooperative bank (d) a commercial bank
174. Multiplier process in economic theory is conventionally taken to mean :
(a) the manner in which prices increase . (b) the manner in which banks create credit
(c) income of an economy grows on account of an initial investment
(d) the manner in which government expenditure increases
175. If people’s income of a country is denoted in a curved line space that it has increased, then what does it denote?
(a) the income is increasing (b) the income is decreasing
(c) dissimilarity is decreasing in income distribution (d) dissimilarity in income distribution is increasing
176. Which among the following is not the outcome of decrease in prime lending rate?
(a) to raise the bank loan (b) decline in saving rate
(c) decline in productivity (d) Increased demand of consumer products
177. Which among the following is not a non-customs duty obstacle in the world trade ?
(a) Quantify restriction (b) Establishment of Standard of labour in manufacturing
(c) Determination of import duty uniformly (d) Restrictions on goods quality
178. Which among the following has the least possibility of globalization?
(a) selection of labour force (b) location of capital works
(c) to manage resources for investment (d) increase in infrastructure
179. How the interest-level of a country is affected by FDI?
(a) increases (b) decreases (c) remains unaffected (d) there is increase or decrease
180. Which among the following statements is not true when there is an increase in interest rate in an economy ?
(a) increase in saving (b) decrease in loan (c) increase in production cost (d) increase in capital return
181. On the administered price of which of the following articles no subsidy is given?
(a) DAP (b) ATF (c) IPG (d) Kerosene oil
(d) An inverse relationship between marginal utility and the stock of commodity
182. Capital output ratio of a commodity measures
(a) its per unit cost of production (b) the amount of capital in-vested per unit of output
(c) the ratio of capital depreciation to quantity of output (d) the ratio of working capital employed to quantity of output
183. Demand of commodity mainly depends upon-
(a) Purchasing will (b) Purchasing power (c) Tax policy (d) Advertisement
184. Bank rate is that rate on which-
(a) Any bank lends money to an individual (b) State Bank of India gives loan to the rural banks
(c) Central Bank of Country lends money to the commercial banks (d) Rural bank gives loan to cooperative societies
185. Who among the following is not a classical economist?

(a) David Ricardo (b) John Stuart Mill (c) Thomas Malthus (d) John Maynard Keynes
186. Long-term funds in the capital market can be raised either by borrowing from certain institutions or through
(a) issue of note (b) taking loan from Government (c) issue of securities (d) taking loan from foreign institutions
187. How far does the Exclusive Economic Zone of a country extend from her coast?
(a) 120 km (b) 220 km (c) 320 km (d) 420 km
188. Which of the following is not considered as National Debt?
(a) National Savings Certificates (b) Long-term Government Bonds
(c) Insurance Policies (d) Provident Fund
189. The main determinant of real wage is
(a) extra earning (b) nature of work (c) promotion prospect (d) purchasing power of money
190. Which of the following is not Included in the National Income?
(a) Imputed rent of owner-occupied houses (b) Government expenditure on making new bridges
(c) Winning a lottery (d) Commission paid to an agent for sale of house
191. Personal disposable income is
(a) always equal to personal income (b) always more than personal income
(c) equal to personal income minus indirect taxes (d) equal to personal income minus direct taxes
192. Who prepared the first estimate of National Income for the country ?
(a) Statistical Organization (b) National Income Committee
(c) Dadabhai Naoroji (d) National Sample Survey Organization
193. A refrigerator operating in a chemist's shop is an example of
(a) free good (b) final good (c) producers good (d) consumer's good
194. Disinvestements is
(a) offloading of shares of privates companies to government
(b) off loading of government Shares to private companies
(c) increase in investment (d) closing down of business concerns
195. Which one of the following is a developmental expenditure?
(a) irrigation expenditure (b) Civil administration (c) Debt services (d) Grant-in-aid
196. When average cost production (AC) falls,, marginal cost of production must be.
(a) rising (b) Falling (c) Greater than the average cost (d) Less than the average cost
197. Green banking means
(a) development of forestry by banks (b) financing of environmental friendly projects by banks
(c) financing of irrigation projects by banks (d) None of the above
198. Which one of the following is not a quantitative credit control techniques?
(a) Bank Rate (b) Cash Reserve Ratio (c) Statutory Liquidity Ratio (d) Increase of interest rate on
saving deposit
199. Which one of the following statements is correct ?
(a) Good money drives bad money out of circulation (b) Bad money drives good money out of circulation
(c) Good and bad money cannot circulate together (d) Cannot say
200. Devaluation of currency leads to
(a) expansion of export trade (b) contraction of import trade (c) expansion of import substitution (d) All of the
above
201. Open market operations of RBI refer to buying and. selling of
(a) Commercial bills (b) Foreign exchange (c) Gold (d) Government bonds
202. Production function expresses
(a) technological relationship between physical inputs and output
(b) financial relationship between physical inputs and output
(c) relationship between finance and technology (d) relationship between factors of production
203. "Interest is a reward for parting with liquidity’ is according to
(a) Keynes (b) Marshall (c) Haberler (d) Ohlin
204. Extension or contraction of quantity demanded of a commodity is a result of a change in the

(a) unit price of the commodity (b) income of the consumer
(c) tastes of the consumer (d) climate of the region
205. Cross elasticity of demand between petrol and car is
(a) infinite (b) positive (c) zero (d) negative
206. 'Supply creates its own demand’. This statement is related to
(a) Prof. J.B. Say (b) John Robinson (c) Adam Smith (d) J.S. Mill
207. The Law of Demand expresses
(a) effect of change in price of a commodity on its demand
(b) effect of change in demand of a commodity on its price
(c) effect of change in demand of a commodity over the supply of its substitute
(d) None of the above
208. A situation where we have people whose level of income is not sufficient to meet the minimum consumption
expenditure is considered as
(a) Absolute Poverty (b) Relative Poverty (c) Urban Poverty (d) Rural Poverty
209. Full convertibility of a rupee means
(a) purchase of foreign exchange for rupees freely (b) payment for imports in terms of rupees
(c) repayment of loans in terms of rupees
(d) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand
and supply
210. An exceptional demand curve is one that moves
(a) upward to the right (b) downward to the right (c) horizontally (d) vertically
211. Production function explains the relationship between
(a) initial inputs and ultimate output (b) inputs and ultimate consumption
(c) output and consumption (d) output and exports
212. The term stagflation refers to a situation where
(a) growth has no relation with the change in prices (b) rate of growth and prices both are decreasing
(c) rate of growth in faster than the rate of price increase (d) rate of growth is slower than the rate of price increase
213. In Economics the ‘Utility' and ‘Usefulness’ have
(a) same meaning (b) different meaning (c) opposite meaning (d) None of the above
214. Nature of unemployment in agriculture in India is
(a) only seasonal (b) only disguised (c) Both (a) and (b) (d) None of the above
215. If two commodities are complements, then their cross-price elasticity is
(a) zero (b) positive (c) negative (d) imaginary number
216. Opportunity cost of production of a commodity is
(a) the cost that the firm could have incurred when a different technique was adopted
(b) the cost that the firm could have incurred under a different method of production
(c) the actual cost incurred
(d) the next best alternative output
217. Surplus earned by a factor other than land in the short period of referred to as
(a) economic rent (b) net rent (c) quasi-rent (d) super-normal rent
218. Which from the following is not true when the interest rate in the economy goes up ?
(a) Saving increases (b) Lending decreases (c) Cost of production increases (d) Return on capital increases
219. Which one of the following is not a method of measurement of National Income?
(a) Value Added Method (b) Income Method (c) Investment Method (d) Expenditure Method
220. Labour Intensive Technique would get chosen in a
(a) Labour Surplus Economy (b) Capital Surplus Economy (c) Developed Economy (d) Developing Economy
221. Which one of the following would not constitute an economic activity ?
(a) A teacher teaching students in his class (b) A teacher teaching students Under Sarva Shiksha Abhiyan
(c) A teacher teaching his own daughter at home (d) A teacher providing consultancy services from his residence
222. Net National Product of a country is

(a) GDP minus depreciation allowances (b) GDP plus net income from abroad
(c) GNP minus net income from abroad (d) GNP minus depreciation allowances
223. Which one of the following is not a method of estimating National Income ?
(a) Expenditure method (b) Product method (c) Matrix method (d) Income method
224. The monetary policy is India is formulated by
(a) Central Government (b) Industrial Financial Corporation of India
(c) Reserve Bank of India (d) Industrial Development Bank of India
225. A short-term government security paper is called
(a) Share (b) Debenture (c) Mutual fund (d) Treasury bill
226. Under which market condition do firms have excess capacity?
(a) Perfect competition (b) Monopolistic competition (c) Duopoly (d) Oligopoly
227. Price theory is also known as
(a) Macro Economics (b) Development Economics (c) Public Economics (d) Micro Economics
228. At present, India is following
(a) Fixed exchange rate (b) Floating exchange rate (c) Pegged up exchange rate (d) Pegged down
exchange rate
229. National Income is the
(a) Net National Product at market price (b) Net National Product at factor cost
(c) Net Domestic Product al market price (d) Net domestic Product at factor cost
230. A want becomes a demand only when it is backed by the
(a) Ability to purchase (b) Necessity to buy (c) Desire to buy (d) Utility of the product
231. The terms “Micro Economics” and “Macro Economics" were coined by
(a) Alfred Marshall (b) Ragner Nurkse (c) Ragner Frisch (d) J.M. Keynes
232. During periods of inflation, tax rates should
(a) increase (b) decrease (c) remain constant (d) fluctuate
233. “Economics is what it ought to be” - This statement refers to
(a) Normative economics (b) Positive economics (c) Monetary economics (d) Fiscal economics
234. The excess of price a person is to pay rather than forego the consumption of the commodity is called
(a) Price (b) Profit (c) Producers' surplus (d) Consumer's surplus
235. The existence of a parallel economy or Black Money
(a) makes the economy more competitive' (b) makes the monetary policies less effective
(c) ensures a better distribution of income and wealth (d) ensures increasing productive investment
236. Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to
states ?
(a) Expenditure Tax and Gift Tax (b) Additional Duties of Excise in lieu of Sales Tax
(c) Stamps and Registration (d) Taxes on Advertisement
237. When the price of a commodity falls, we can expect
(a) the supply of it to increase (b) the demand for it to fall
(c) the demand for it to stay constant (d) the demand for it to increase
238. The bank cheques are processed by using
(a) OCR (b) MICR (c) OMR (d) PMR
239. When was the Minimum Wages Act enacted in India?
(a) 1936 (b) 1948 (c) 1951 (d) 1956
240. Which one of the following does not deal with export promotion?
(a) Trade Development Authority (b) Minerals and Metals Trading Corporation
(c) Cooperative Marketing Societies (d) State Trading Corporation of India
241. Which of the following sets belongs to Central tax?
(a) Excise duty, Sales tax and Custom duty (b) Excise duty, Custom duty and Income tax
(c) Income, tax, Custom duty and House tax (d) Custom duty, Entertainment , tax and Income tax
242. The most distinguishing fealure of oligopaly is

(a) number of firms (b) interdependence (c) negligible influence on price (d) price leadership
243. Who defined investment as “the construction of a new capital asset like machinery or factory building"?
(a) Hansen (b)J.M. Keynes (c) Harrod (d) J.R. Hicks
244. ‘Law of demand’ implies that when there is excess demand, for a commodity, then
(a) price of the commodity falls (b) price of the commodity remains same
(c) price of the commodity rises (d) quantity demanded of the commodity falls
245. In the context of the stock market, IPO stands for
(a) Immediate Payment Order (b) Internal Policy Obligation
(c) Initial Public Offer (d) International Payment Obligation
246. Consequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially
set up in the year
(a) 1973 (b) 1974 (c) 1975 (d) 1976
247. Poverty in less developed countries is largely due to
(a) voluntary idleness (b) income inequality (c) lack of cultural activities (d) lack of intelligence of the people
248. Which one of the following categories of workers is termed as cultivators?
(a) Those who own land and cultivate (b) Those who lease in land and cultivate
(c) Those who cultivate the land of others (d) Those who own land and lease in from others or institutions and
cultivate
249. Cheap Money means
(a) Low Rate of Interest (b) Low level of Savings (c) Low level Income (d) Excess of Black Money
250. Disinvestment in Public Sector is called
(a) Liberalization (b) Globalization (c) Industrialization (d) Privatization
251. An individual’s actual standard of living can be assessed by
(a) Gross National Income (b) Net National Income (c) Per Capita Income (d) Disposable Personal Income
252. When there is an official change in the exchange rate of domestic currency, then it is called :
(a) Appreciation (b) Depreciation (c) Revaluation (d) Deflation
253. Inflation redistributes income and wealth in favour of :
(a) Pensioners (b) Poor (c) Middle class (d) Rich
254. The first computer made available for commercial use was :
(a) MANIAC (b) ENIAC (c) UNIVAC (d) EDSAC
255. The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called
(a) Cash reserves (b) Deposit reserves (c) Excess reserves (d) Momentary reserves
256. Who is authorized to issue coins in India ?
(a) Reserve Bank of India (b) Ministry of Finance (c) State Bank of India (d) Indian Overseas Bank
257. The ‘break-even’ point is where
(a) marginal revenue equals marginal cost (b) average revenue equals average cost
(c) total revenue equals total cost (d) None of the above
258. Rate of interest is determined by
(a) The rate of return on the capital invested (b) Central Government
(c) Liquidity preference (d) Commercial Banks
259. The total value of goods and services produced in a country during a given period is
(a) Disposable income (b) National income (c) Per capita income (d) Net national income
260. Which one of the following is not a function of the central bank in an economy?
(a) Dealing with foreign exchange (b) Controlling monetary policy
(c) Controlling government spending (d) Acting as a banker’s bank
261. The government set up a committee headed by the Chairman; Central Board of Direct Taxes some time back to go
into-
(a) codification of tax laws
(b) the entire structure of tax laws including the question of imposition of bank tax
(c) the concerns of the foreign investors in India with regard to taxation matters
(d) aspects of generation of black money, its transfer abroad and bringing back such money into India’s legitimate
financial system
262. Per capita income is equal to
(a) National Income Total Population of the country (b) National Income + Population
(c) National Income- Population (d) National Income x Population
263. A favourable Balance of Trade of a country implies that
(a) Imports are greater than Exports (b) Exports are greater than Imports
(c) Both Imports and Exports are equal (d) Rising Imports and Falling Exports
264. The value of a commodity expressed in terms of money is known as
(a) Price (b) Utility (c) Value (d) Wealth
265. Reserve. Bank of India was nationalized in
(a) 1948 (b) 1947 (c) 1949 (d) 1950
266. National Social Assistance Programme is aimed at providing
(a) financial support to Scheduled Castes and Scheduled Tribes (b) old age pension to very poor
(c) insurance for the poor (d) All of the above
267. In a Capitalistic Economy, the prices are determined by :
(a) Demand and Supply (b) Government Authorities (c) Buyers in the Market (d) Sellers in the Market
268. Tooth paste is a product sold under :
(a) Monopolistic Competition (b) Perfect Competition (c) Monopoly (d) Duopoly
269. In a period of inflation and price rise the supply of money remains
(a) the same (b) increases (c) decreases (d) increases or decreases proportionately.
270. ‘Personal Income’ equals
(a) The household sector's income (b) Private income minus savings of the corporate sector minus corporation tax
(c) Personal disposable income plus miscellaneous receipts of the Government (d) All of the above
271. What is dual pricing?
(a) Wholesale price and Retail pricing (b) Pricing by agents and Pricing by retailers
(c) Price fixed by Government and Price in open market (d) Daily prices and Weekly prices
272. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for
(a) Coke will decrease (b) 7-Up will decrease (c) Coke and 7-Up will increase (d) Coke and 7-Up will decrease
273. The demand curve shows that price and quantity demanded are
(a) directly related only (b) directly proportional and also directly related
(c) inversely proportional and also inversely related (d) inversely related only
274. As output increases, average fixed cost
(a) increases (b) falls (c) remains constant (d) first increases, then falls
275. Which of the following is a part of tertiary sector?
(a) Power and transportation (b) Animal Husbandly (c) Cotton manufacturing (d) Cultivation of crops
276. Fixed cost is known as
(a) Special cost (b) Direct cost (c) Prime cost (d) Overhead cost
277. What was the objective of Command Area Development Programme?
(a) To ensure that land is given to the tillers (b) To ensure better utilization of irrigation potential
(c) To develop the areas under the command of Army (d) Poverty alleviation in selected areas
278. A mixed economy refers to an economic system where
(a) The economy functions with foreign collaboration
(b) Only the private sector operates under government control
(c) Both the government and the private sectors operate sectors operate simultaneously'
(d) No foreign investment is allowed
279. The demand for which of the Following commodity will not rise in spite of a fall in its price?
(a) Television (b) Refrigerator (c) Salt (d) Meat
280. In the long-run equilibrium, a competitive firm earns
(a) Super-normal profit (b) Profits equal to other firms (c) Normal profit (d) No profit
281, Production function relates
(a) Cost to output (b) Cost to input (c) Wages to profit (d) Inputs to output
282. According to the classical system, saving is a function of
(a) Income (b) The interest rate (c) The real wage (d) The Price level
283. A Black Market is a situation Where in
(a) Goods are loaded by the producers (b) Goods are sold secretly
(c) Goods are sold at prices higher than what is fixed by the Government
(d) Goods are made available (sold) only after there is a rise in prices
284. Distribution of food rains operates under a two tier system with the introduction of
(a) Targetted Public Distribution System (b) The Consumers Cooperatives
(c) The Cooperative Marketing Societies (d) Tire Service Cooperatives
285. If total utility is maximum at a point, then marginal utility is
(a) positive (b) zero (c) negative (d) positive but decreasing
286. Which one of the following items is included in the national income account?
(a) Services of housewives (b) Income of smugglers (c) Services of Sadhus (d) Services of night-watchmen
287. The situation in which total revenue is equal to total cost, is known as
(I) monopolistic competition (b) equilibrium level of output (c) break-even point (d) perfect competition
288. The relationship between price of a commodity and the demand for it
(a) is a positive relationship (b) is an inverse relationship
(c) They are independent of each other (d) They do not have any relationship
289. An increase in national income because of an increase in price is called
(a) an increase in national income in real terms (b) an increase in national income at constant prices
(c) an increase in money national income (d) an increase in national income at base year prices
290. Commercialization of agriculture implies
(a) cultivation of timbers (b) plantation (c) production of crops for sale (d) production of crops like wheat or rice
291. Payment of water charges by the fanners to the government represents
(a) intermediate consumption (b) final consumption (c) fixed investment (d) inventory investment
292. In accounting terms, what constitutes the ‘closings tock’?
(a) Net Investment (b) Gross Investment-Capital Losses
(c) Opening Stock-Capital Losses (d) Opening Stock + Net Investment -Capital Losses
293. ‘Quota’ is
(a) tax levied on imports (b) imports of capital goods
(c) limit on the quantity of imports (d) limit on the quantity of exports
294. The ‘Canons of Taxation’ were propounded by
(a) Edwin Canon (b) Adam Smith (c) J.M. Keynes (d) Dalton
295. 'PROTECTION' means
(a) Restrictions imposed on import trade (b) Protection to home industries
(c) No free exchange of goods and services between two countries (d) All of the above
296. National income accounting is the study of the income and expenditure of the entire
(a) family (b) state (c) economy (d) organization
297. The problem of Economics arises from
(a) Plenty (b) Scarcity of goods (c) More wants and less goods (d) All of the above
298. Agricultural income tax is a source of revenue to
(a) Central Government (b) State Government (c) Local Administration (d) Centre and State
Governments
299. Beyond a certain point deficit financing will certainly lead to
(a) inflation (b) deflation (c) recession (d) economic stagnation
300. In public budgets, zero-base budgeting was first introduced in
(a) USA (b) UK (c) France (d) Sweden
301. Why is rent earned by land even in the long run?

(a) Land has original and indestructible power (b) Land is a man made factor
(c) Its supply is inelastic in the short run (d) Its supply is inelastic in the long run
302. In a highly developed country the relative contribution of agriculture to GDP is
(a) relatively high (b) relatively low (c) the same as that of other sectors (d) zero
303. Who is called the Father of Economics?
(a) J.M. Keynes (b) Malthus (c) Ricardo (d) Adam Smith
304. The term “market” in Economics means
(a) A central place (b) Presence of competition (c) Place where goods are stored (d) Shops and super bazars
305. Division of labour is limited by
(a) the number of workers (b) hours of work (c) extent of the market (d) working space
306. The four factors of production are
(a) land, labour, capital, organization (b) land, electricity, water, labour
(c) labour, capital, land, rainfall, (d) labour, climate, land, tools,
307. ISI mark is not given to which of the following products?
(a) Electrical goods (b) Hosiery goods (c) Biscuits (d) Cloth
308. The term utility means
(a) usefulness of a commodity (b) the satisfaction which a commodity yields
(c) the service which a commodity is capable of rendering (d) None of these
309. Under flexible exchange rate system, the exchange rate is determined by
(a) the Central Bank of the country (b) the forces of demand and supply in the foreign exchange market
(c) the price of gold (d) the purchasing power of currencies
310. The size of the market for a product refers to
(a) the number of people in the given area (b) the geographical area served by the producers
(c) the volume of potential sales of the product (d) the number of potential buyers of the product
311. Economic problem arises mainly due to .
(a) overpopulation (b) unemployment (c) scarcity of resources (d) lack of industries
312. Bank rate is the rate of interest
(a) at which public borrows money from Commercial Bank (b) at which public borrows money from RBI
(c) at which Commercial Banks borrow money from RBI (d) at which Commercial Banks borrow money from public
313. If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand
is
(a) perfectly inelastic (b) elastic (c) perfectly elastic (d) inelastic
314. Which of the following are not fixed costs?
(a) Rent on land (b) Municipal taxes (c) Wages paid to workers (d) Insurance charges
315. The demand for money, according to Keynes, is for
(a) speculative motive (b) transaction motive (c) precautionary motive (d) All the above
motives
316. The sale proceeds of Government Bonds come under the budget head of
(a) Revenue Receipts (b) Current Expenditure (c) Capital Outlay (d) Capital Receipts
317. The tax levied on gross sales revenue from business transactions is called
(a) Turnover Tax (b) Sales Tax (c) Capital Gains Tax (d) Corporation Tax
318. Liquidity Preference means
(a) holding assets in the form of bonds and shares (b) holding assets in the form of cash
(c) creation of immovable property (d) assets in the form of jewellery
319. A currency having a falling exchange rate due to continuing balance of payments deficit is called a
(a) Soft currency (b) Hard currency (c) Scarce currency (d) Surplus currency
320. Aggregate net value of the output in one year is the
(a) National income at factor cost (b) Gross Domestic Product at market prices
(c) Net National Product at market prices (d) Gross National Product at market prices
321. Product differentiation is the most important feature of

(a) pure competition (b) monopolistic competition (c) monopoly (d) oligopoly
322. A speculator who enters into a purchase transaction with a view to sell In the near future when the price would
have risen is called a
(a) Bear (b) Bull (c) Bison (d) Boar
323. The smaller the Cash Reserve Ratio, the scope for lending by banks is :
(a) greater (b) smaller (c) weaker (d) lesser
324. Division of labour is the result of’
(a) Complicated work (b) excessive pressure (c) excess supply of labour (d) specialization
325, Malthusian theory of population explored the relationship between
(a) food supply and technology (b) food supply and population growth
(c) population growth and development (d) optimum growth and resources
326. Speculative demand for cash is determined by
(a) The rate of interest (b) the level of income (c) the general price level (d) the market conditions
327. Different firms constituting the Industry, produce homogeneous goods under
(a) monopoly (b) monopolistic competition (c) oligopoly (d) perfect competition
328. Which one of the following does not deal with export promotion?
(a) Trade Development Authority (b) Mineral and Metal Trading Corporation
(c) Cooperative Marketing Societies (d) State Trading Corporation of India
329. Gross National Product is the money measure of
(a) all tangible goods produced in a country (b) final goods and services produced in the economy
(c) services generated annually In the economy (d) all tangible goods available in the economy
330. Theoretically trade between two countries lakes place on account of
(a) differences in costs (b) scarcity of goods (c) comparative differences in costs (d) need for exports
331. Gross Profit means
(a) Total investment over total saving (b) Changes in methods of production
(c) Changes in the form of business organization (d) Total receipts over total expenditure
332. Net National Product in National Income Accounting refers to
(a) Gross Domestic Product Depreciation (b) Gross Domestic Product + Subsidies
(c) Gross National Product Depreciation (d) Gross National Product + Subsidies
333. Same price prevails throughout the market under
(a) perfect competition (b) monopoly (c) monopolistic competition (d) oligopoly
334. The duties levied on alcoholic liquors, narcotic drugs and opium come under—
(a) Central Excise Duty (b) Land Revenue (c) State Excise Duty (d) General Sales Tax
335. Short term loans to correct Balance of Payments problems is given by
(a) I.M.F. (b) I.B.R.D (c) I.D.A (d) A.D.B
336. For channelizing the unaccounted money for productive purposes the Government Introduced the, scheme of :
(a) Special Bearer Bonds (b) Resurgent India Bonds (c) Provident Funds (d) Market Loans
337. Selling cost means:
(a) Cost of selling a product (b) Cost incurred in transportation
(c) Cost Incurred in advertisement (d) Cost Incurred on factors of production
338. Funds which flow into a country to take advantage of favourable rates of interest in that country is called
(a) Cold Money (b) Black Money (c) Hot Money (d) White Money
339. Ad Valorem tax is levied
(a) according to value added by the Government. (b) according to value addition To a commodity
(c) according to value given by producers (d) according to value added by the finance ministry
340. Legal Tender Money is
(a) accepted only by Government (b) accepted by people and Government as per the law
(c) not accepted for business purposes by law (d) not accepted by Government
341. A high Statutory Liquidity' Ratio (SLR)
(a) restricts lending (b) increases supply of cash

(c) provides funds to the state (d) increases the strength of the banks
342. A situation of large number of firms producing similar goods is termed as :
(a) Perfect competition (b) Monopolistic competition (c) Pure competition (d) Oligopoly
343. Multinational Corporation is also called
(a) Trading Corporation (b) International Corporation (c) Finance Corporation (d) Trans-national Corporation
344. The difference between the price the consumer is prepared to pay for a commodity and the price which he actually
pays is called
(a) Consumer's Surplus (b) Producer's Surplus (c) Landlord’s Surplus (d) Worker's Surplus
345. A very high rise in National Income at current market prices and a low rise at constant prices reveals
(a) the high rate of growth in. the economy at the current period (b) the increased production in the current period
(c) the improper growth of the economy (d) the high rate of inflation prevailing in the economy
346. Corporation tax is a tax imposed on
(a) the net incomes of the companies (b) the corporate properties
(c) the utilities provided by the corporation (d) tax imposed by the corporation on individual properties
347. Commercial banks create credit
(a) on the basis of their securities (b) on the basis of their assets
(c) on the basis of their reserve fund (d) on the basis of their deposits
348. Gross National Product means
(a) gross value of finished goods (b) money values of the total national production for any given period
(c) gross value of raw materials and semi-finished products (d) money value of inputs and outputs
349. Bank money refers to
(a) currency notes (b) coins (c) gold bullions (d) cheques
350. What is ‘AGMARK?
(a) It is a marketing seal issued on the graded agricultural commodity (b) It stands for agricultural marketing
(c) It represents agricultural management and regulation (d) None of these
351. The self-employed in a developing country who are engaged in small scale labour intensive work belong to the
(a) Informal sector (b) Primary sector (c) Secondary sector (d) Tertiary sector
352. The Rajya Sabha should return the Money Bills to the Lok Sabha within
(a) one month (b) three months (c) 14 days (d) six months
353. A speculator who sells stocks, in order to buy back when price falls, for gain is a
(a) Bull (b) Bear (c) Boar (d) Bison
354. Paraellel economy emerges due to
(a) Tax Avoidance (b) Tax Evasion (c) Tax Compliance (d) Tax Estimation
355. While estimating national income which of the following is not taken into account?
(a) Services of a teacher (b) Services of a doctor (c) Services of a housewife (d) Services of a maid servant
356. Under-writting refers to
(a) underestimation (b) underselling (c) winding up the business (d) an act of insuring risk
357. Under Perfect Competition
(a) Marginal Revenue is less than the Average Revenue (b) Average Revenue is less than the Marginal Revenue
(c) Average Revenue is equal to the Marginal Revenue (d) Average Revenue is more than the Marginal Revenue
358. It is prudent to determine the size of the output when the industry is operating in the stage of
(a) increasing returns (b) constant returns (c) diminishing returns (d) negative returns
359. Freeing the economy from all unnecessary controls and regulations is referred to as
(a) Freedom (b) Privatization (c) Liberalization (d) Globalization
360. Inflation can be checked by
(a) increasing exports (b) increasing money supply (c) increasing Government expenditure (d) decreasing
money supply
361. Floating Exchange Rate is also referred to as
(a) Flexible Exchange Rate (b) Fixed Exchange Rate (c) Real Exchange Rate (d) Controlled Exchange Rate
362. Consumptions function refers to

(a) relationship between income and employment (b) relationship between savings and investment
(c) relationship between input and output (d) relationship between income and consumption
363. The incidence of Tax refers to
(a) Who pays the Tax ? (b) Who bears the burden of Tax?
(c) How Taxes can be shifted ? (d) Who transfers the Tax burden?
364. An increase in per capital income is not an indication of an increase in the economic welfare of the people
(a) When such increase is the result of an increased production of comforts
(b) When such increase is the result of an increase in agricultural production
(c) When it is the result of an increase in the production of industrial goods
(d) When such increase is the result of increased production of intoxicants
365. Total fixed cost curve is
(a) Vertical (b) Horizontal (c) Positively Sloping (d) Negatively sloping
366. Economic rent does not arise when the supply of a factor unit is
(a) Perfectly inelastic (b) Perfectly elastic (c) Relatively elastic (d) Relatively inelastic
367. Perfect competition means
(a) large number of buyers and less sellers (b) large number of buyers and sellers
(c) large number of sellers and less buyers (d) None of these
368. The Imperial Bank of India, after its nationalization came to be known as :
(a) Reserve Bank of India (b) State Bank of India (c) United Bank of India (d) Indian Overseas Bank
369. Bread and butter, car and petrol are examples of goods which have
(a) composite demand (b) joint demand (c) derived demand (d) autonomous demand
370. “Bad money will drive out good money from circulation."This is known as :
(a) Engle’s Law (b) Gresham's Law (c) Say’ Law (d) Wagner’s Law
371. If the main objective of the government is to raise revenue, it should tax commodities with
(a) high elasticity of demand (b) low elasticity Of supply
(c) low elasticity of demand (d) high income elasticity of demand
372. Core Industries are
(a) Basic industries (b) Consumer goods industries (c) Capital goods industries (d) Government industries
373. The functional relationship between income and consumption expenditure is explained by
(a) Consumer’ Surplus (b) Law of Demand
(c) Law of Supply (d) Keynes’s psychological law of consumption
374. Full employment is a situation where
(a) there is no involuntary unemployment (b) there is involuntary unemployment
(c) there is no voluntary unemployment (d) there is voluntary unemployment
375. if the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing
money, it should
(a) lower cash reserve ratio (b) raise discount rates (c) sell government securities (d) All of the above
376. Monopoly means
(a) single buyer (b) many sellers (c) single seller (d) many buyers
377. Regulated markets aim at the development of the marketing structure to
(a) widen the price spread between the producer and the consumer
(b) narrow down the price spread between the producer and the consumer
(c) increase the non-functional margins of the traders
(d) maximize the non-functional margins of the commission agents
378. Marginal cost is the
(a) cost of producing a unit of output (b) cost of producing an extra unit of output
(c) cost of producing the total output (d) cost of producing a given level of output
379. Under full cost pricing, price is determined
(a) by adding a margin to the average cost (b) by comparing marginal cost and marginal revenue
(c) by adding normal profit to the marginal cost (d) by the total cost of production
380. Economic growth is dependent mainly on
(a) level of consumption (b) price stability (c) level of investment (d) population growth
381. Interest paid by the government on the loans raised is called
(a) Debt Servicing (b) Deficit Financing (c) Discounted Budgeting (d) Bridge-loan
382. The 'sunrise industries' Imply
(a) petrochemicals and electronics industry (b) sunflower oil industry
(c) computer industry (d) chemical industry
383. Regional Rural Banks are sponsored by
(a) Nationalized Commercial Bank (b) Reserve Bank of India
(c) State Bank of India (d) Government of India
384. What is selling cost?
(a) Cost incurred on transportation of commodities to market
(b) Cost incurred on promoting the sale of the product
(c) Cost incurred on commission and salaries personnel
(d) Cost incurred on advertisement
385. Countries that depend mainly on the export of primary products for their income, are prone to
(a) inflation (b) economic instability (c) increasing unemployment (d) stable economic growth
386. A Trade Policy consists of
(a) Export-Import Policy (b) Licensing Policy (c) Foreign Exchange Policy (d) Balance of Payment Policy
387, What is needed for creating demand?
(a) Production (b) Price (c) Income (d) Import
388. Who said, "Economics is the Science of Wealth" ?
(a) Robbins (b) J.S. Mill (c) Adam Smith (d) ' Keynes
389. A fall in demand or rise in supply of a commodity-
(a) Increases the price of that commodity (b) decreases the price of that commodity
(c) neutralizes the changes it the price (d) determines the price elasticity
390. The relationship between the value of money and the price level in an economy is
(a) Direct (b) Inverse (c) Proportional (d) Stable
391. Depreciation is equal to—
(a) Gross national product —Net national product (b) Net national product —Gross national product
(c) Gross national product —Personal income (d) Personal income— Personal taxes
392, In an economy, the sectors are classified into public and private on the basis of
(a) employment conditions (b) nature of economic activities
(c) ownership of enterprises (d) use of raw materials
393. Stagflation is a situation of
(a) stagnation and deflation (b) stagnation and recession (c) stagnation and inflation (d) stagnation and
recovery
394. National Income Estimates in India are prepared by:
(a) National Development Council (b) National Productivity Council
(c) National Income Committee (d) Central Statistical Organization
395. The best Index of Economic Development is provided by:
(a) Growth in Per capita Real Income from year to year. (b) Growth in National Income at Current Prices.
(c) Growth in savings ratio. (d) Improvement in the Balance of Payments Position.
396. Consumer's sovereignty means:
(a) consumers are free to spend their income as they like. (b) consumers have the power to manage the economy.
(c) consumer’s expenditures influence the allocation of resources. (d) consumer goods are free from government
control.
397. National Income include:
(a) Financial help to earthquake victims (b) Pocket money of a child
(c) Winning of a lottery prize (d) Construction of a new house

398. The situation in which total Revenues equals total cost, is known as :
(a) Monopolistic competition (b) Equilibrium level of output (c) Breakeven point (d) Perfect competition
399. Demand curve of a firm under perfect competition is :
(a) horizontal to ox-axis (b) negatively sloped (c) positively sloped (d) U - shaped
400, Value of output and value added can be distinguished if we know:
(a) the value of intermediate consumption (b) the value of net indirect taxes
(c) the value of the sales (d) the value of consumption of fixed capital
401. Transfer payments include :
(a) Gifts received from a friend (b) rent free accommodation by the employer
(c) net factor income from abroad (d) Employee's contribution to social security
402. The marginal revenue of a monopolist is:
(a) more than price (b) equal to price (c) less than price (d) less than marginal cost
403. A horizontal demand curve is
(a) relatively elastic (b) perfectly inelastic (c) perfectly elastic (d) of unitary elasticity
404, The theory of monopolistic competition has been formulated in the United States of America by
(a) Joan Robinson (b) Edward Chamberlin (c) John Bates Clark (d) Joseph Schumpeter
405. Production Function relates to:
(a) costs to outputs (b) costs to inputs (c) inputs to outputs (d) wage level to profits
406. What type of products, does CACP recommend minimum support price for ?
(a) Industrial products (b) Agricultural products (c) Pharmaceutical products (d) None of the above
407. Under increasing returns the supply curve is
(a) positively sloped from left to right (b) negatively sloped from left to right
(c) parallel to the quantity-axis (d) parallel to the price -axis
408. The degree of monopoly power is to be measured in terms of The firm’s
(a) normal profit (b) supernormal profit (c) both normal and supernormal profit (d) selling price
409. Who propounded the Innovation theory' of profits?
(a) J.A. Schumpeter (b) PA. Samuelson (c) Alfred Marshall (d) David Ricardo
410. Under perfect competition, the industry does not have any excess capacitybecau.se each firm produces at the
minimum point on its
(a) long-run marginal cost, curve (b) long-run average cost curve
(c) long-run average variable cost curve (d) long-run average revenue curve
411. Which one of the following is not a ‘canon of taxation’ according to Adam Smith?
(a) Canon of certainty (b) Canon of simplicity (c) Canon of convenience (d) Canon of economy
412. Effective demand depends on
(a) capital-output ratio (b) output-capital ratio (c) total expenditure (d) supply price
413. Exploitation of labour is said to exist when
(a) Wage = Marginal Revenue Product (b) Wage < Marginal Revenue Product
(c) Wage > Marginal Revenue Product (d) Marginal Revenue Product = 0
414. A rising Per Capita Income will indicate a better welfare if it is accompanied by
(a) unchanged Income distribution overall. (b) changed Income distribution in favour of rich.
(c) changed Income distribution in favour of poor. (d) changed Income distribution in favour of Industrial Labour.
415. Indirect taxes by nature are
(a) degressive (b) regressive (c) progressive (d) proportional
416. Which one of the following is an example of optional money?
(a) Currency note (b) Coins (c) Cheque (d) Bond
417, Those payments which the firms make to outsiders for their goods and services are called
(a) Real costs (b) Economic costs (c) Explicit costs (d) Implicit costs
418. Special Economic Zone (SEZ) concept was first introduced in
(a) China (b) Japan (c) India (d) Pakistan
419. Economic development depends on :

(a) Natural resources (b) Capital formation (c) Size of the market (d) All of the above
420. National Income is generated from:
(a) any money-making activity (b) any laborious activity (c) any profit-making activity (d) any productive activity
421. Money supply is governed by the
(a) Planning Commission (b) Finance Commission (c) Reserve Bank of India (d) Commercial Banks
422. The food stocks that are built up during the years of bumper harvest are called.:
(a) Capital stock (b) Buffer stock (c) Production stock (d) Grain stock
423. The Minimum Wages Act was first passed in India in the year:
(a) 1947 (b) 1948 (c) 1950 (d) 1951
424. Human Development Index was developed by : .
(a) Amartya Sen (c) Friedman (b) Mahbub-ul-Haq (d) Montek Singh
425. 'Hire and Fire’ is the policy of
(a) Capitalism (b) Socialism (c) Mixed Economy (d) Traditional Economy
426. A tree like structure of records in a database in —
(a) Network model (b) Hierarchical model (c) Relational model (d) Multi-dimensional model
427. Cost of production of the producer is given by:
(a) sum of wages paid to labourers (b) sum of wages and interest paid on capital.
(c) sum of wages, interest, rent and supernormal profit. (d) sum of wages, interest, rent and normal profit.
428. AGMARK is a guarantee of standard :
(a) quality (b) quantity (c) weight (d) size ,
429. The market price is related to:
(a) very short period (b) short period (c) long period (d) very long period
430. Equilibrium price is the price when :
(a) supply is greater than demand (b) supply is less than demand
(c) demand is very high (d) supply is equal to demand
431. In a perfectly competitive market, a firm’s
(a) Average Revenue is always equal to Marginal Revenue (b) Marginal Revenue is more than Average Revenue
(c) Average Revenue is more than Marginal Revenue (d) Marginal Revenue and Average Revenue are never equal
432. The addition to total cost by producing an additional unit of output by a firm is called
(a) Variable cost (b) Average cost (c) Marginal cost (d) Opportunity cost
433. Which activity is not included in production ?
(a) Production of wheat by a farmer (b) Production of medicines by a company
(c) Services given by a nurse in hospital (d) Services done by a house-wife in her own house
434. A holding which will yield the farmers at least a subsistence is known as
(a) Optimum holding (b) Marginal holding (c) Economic holding (d) Subsistence holding
435. Transfer payments mean
(a) Old age pensions (b) Unemployment compensations (c) Social security' payments (d) All the above
436. Which one of the following is not included in current revenue of the Union Government ?
(a) Tax revenue (b) Non-tax revenue (c) Loans (d) Interest payments
437. Which one of the following is not a dimension of human development index?
(a) Life expectancy (b) Knowledge (c) Social status (d) Standard of living
438. Plant and machinery are
(a) Producers' goods (b) Consumers’ goods (c) Distributors' goods (d) Free goods
439. Demand for complementary goods is known as
(a) Joint demand (b) Derived demand (c) Direct demand (d) Cross demand
440. Which one of the following is the most appropriate reason for Inequalities in Income ?
(a) Racial factors (b) Lack of opportunities
(c) Inheritance from family Environment (d) Differences in Ability
441. Kinked demand curve is a feature of
(a) Monopoly (b) Oligopoly (c) Monopsony (d) Duopoly

442. National Income is also called as :
(a) GNP at Factor Cost (b) GNP at Market Price (c) NNP at Factor Cost (d) NNP at Market Price
443. Which of the following cost curve is never ‘U’ shaped ?
(a) Marginal cost curve (b) Average variable cost curve (c) Average fixed cost curve (d) Average cost curve
444. Real wage is :
(a) (b) (c) (d)
445. Consumer’s surplus is the highest in the case of:
(a) durable goods (b) luxuries (c) comforts (d) necessities
446. Which one of the following pairs of goods is an example for Joint Supply?
(a) Coffee and Tea (b) Ink and Pen (c) Tooth brush and Paste (d) Wool and Mutton
447. Capital Market Regulator is:
(a)NSE (b) RBI (c) SEBI (d) IRDA
448.A Transfer Income’ is an
(a) Income which is not produced by any production process (b) Income taken away from one person and given over
to another
(c) Unearned income (d) Earned income
449. The main feature of a capitalist economy is
(a) Administered prices (b) Public ownership (c) Economic planning (d) Private ownership
450. The supply of labour in the economy depends on
(a) Population (b) National income (c) Per capita income (d) Natural resources
451. Name the curve which shows the quantity of products a seller wishes to sell at a 'given price level.
(a) Demand curve (b) Cost curve (c) Supply curve (d) None of these
452. The most accessible medium in India is
(a) Television (b) Radio (c) Cinema (d) Newspapers
453. Price mechanism is a feature of
(a) Capitalist economy (b) Barter economy (c) Mixed economy (d) Socialist economy
454. The expenses on advertising is called
(a) Implicit cost (b) Surplus cost (c) Fixed cost (d) Selling cost
455. Wage fund theory was pro. pounded by
(a)J.B.Say (b)J.S. Mill (c) J.R. Hicks (d)J.M. Keynes
456. The marginal propensity to consume lies between
(a) 0 to 1 (b) 0 to ∞ (c) 1 to ∞ (d) ∞ to ∞
457. For an inferior good, demand falls when
(a) price rises (b) income rise (c) price falls (d) income falls
458. Which of the following is deducted from GNP to arrive at NNP?
(a) Depreciation (b) Interest (c) Tax (d) Subsidy
459. Globalization means
(a) Integration of economy (b) Integration of financial market
(c) integration of the domestic economy with the world economy (d) Integration of the various sectors of economy
460. Which one of the following is having elastic demand ?
(a) Electricity (b) Medicines (c) Rice (d) Matchboxes
461. Income and consumption are :
(a) inversely related (b) directly related (c) partially related (d) unrelated
462. Globalization means
(a) Integration of economy (b) Integration of financial market
(c) Integration of the domestic economy with the world economy (d) Integration of the various sectors of economy
463. Taxation is a tool of
(a) Monetary policy (b) Fiscal policy (c) Price policy (d) Wage policy
464. Which one of the following is not included while estimating national income through income method?
(a) Rent (b) Mixed incomes (c) Pension (d) Undistributed profits
465. Golden Handshake Scheme is associated with
(a) Inviting foreign companies (b) Private investment in public enterprises
(c) Establishing joint enterprises (d) Voluntary retirement
466. Which of the following is an inverted 'U' shaped curve ?
(a) Average cost (b) Marginal cost (c) Total cost (d) Fixed cost
467. Per capita income =
Total Population National Income
(a) (b) (c) (d)
National Income Total Population
468. In which market structure is the demand curve of the market represented by the demand curve of the firm ?
(a) Monopoly (b) Oligopoly (c) Duopoly (d) Perfect Competition
469. Which of the following would not constitute an economic activity in Economics?
(a) A teacher teaching students in his college (b) A teacher teaching students in a coaching institute
(c) A teacher teaching his own daughter at home (d) A teacher teaching students Under Sarva Shiksha Abbiyan Scheme
470. Which of the following is not a fixed cost ?
(a) Salaries of administrative staff (b) Rent of factory bidding (c) Property taxes (d) Electricity charges
471. ‘Mixed economy' refers to
(a) the co-existence of heavy, small scale and cottage industries
(b) the promotion of agriculture As well as cottage industries
(c) the co-existence of rich as well as poor
(d) the co-existence of public as well as private sector
472. Consumption function expresses the relationship between consumption and '
(a) savings (b) income (c) investment (d) price
473. Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a
(a) change in the price of the goods (b) change in the price of substitutes
(c) change in the price of the complements (d) change in the price of joint products
474. Which of the following Mahatma Gandhi series of currency notes issued by the RBI has “ecology" depicted on it?
(a) Rs. 500 (b) Rs. 100 (c) Rs. 50 (d) Rs. 5
475. What is the extent of change of the literacy rate envisaged by the end of the Xth Five Year Plan ?
(a) From 65% to 75% (b) From 60% to 70% (c) From 50% to 55% (d) From 45% to 50%
476. A Scheduled Bank is one which is included in the
(a) II Schedule of Banking Regulation Act (b) II Schedule of Constitution
(c) II Schedule of Reserve Bank of India Act (d) None of the above
477. National income refers to
(a) money value of goods and services produced in a country during a year.
(b) money value of stocks and shares of a country during a year.
(c) money value of capital goods produced by a country during a year.
(d) money value of consumer goods produced by a country during a year.
478. The proceeds of income tax go to
(a) Central Government (b) State Government (c) Centre and States (d) Corporation authorities
479. To achieve high rates of growth of national output, the economy has to
(a) reduce the rate of growth of population (b) borrow foreign capital
(c) step up the rate of savings (d) increase the rate of investment and reduce the capital output ratio
480. The main source of revenue for a State Government in India is
(a) Sales tax (b) Excise duty (c) Income tax (d) Property tax
481. What is the animal on the insignia of the RBI ?
(a) Lion (b) Tiger (c) Panther (d) Elephant
482. For whom was the first departmental life insurance started?
(a) Army (b) Civil officers of Central Government

(c) Employees of postal department (d) Life Insurance Corporation
483. The symbol of Reserve Bank of India is
(a) Capitol of Asokan Pillar (b) Kuber with a purse of money
(c) Tiger before a Palm tree (d) A dog sitting in a defensive state
484. Who has provided the Savings Bank facility to the largest number of account-holders in India?
(a) State Bank of India (b) Punjab National Bank (c) Allahabad Bank (d) Post Office
485. Which amidst the following banks was converted to a ‘Universal Bank’ recently?
(a) Punjab National Bank (b) ICICI Bank (c) UTI Bank (d) Indus-Ind Bank
486. Which of the following PSUs has been privatized?
(a) HZL (b) CMC (c) Hotel Corporation of India (d) NALCO
487. Which amidst the following banks was recently converted to a “Universal Bank’’?
(a) Corporation Bank (b) Bank of Baroda (c) DBI Bank (d) Canara Bank
488. RBI does not transact the business of which of the following state governments?
(a) Nagaland (b) Assam (c) J & K (d) Rajasthan
489. Which authority recommends the principles governing the grants-in-aid of the revenues of The states out of the
Consolidated Fund of India?
(a) Public Accounts Committee (b) Union Ministry of Finance
(c) Finance Commission (d) Inter-State Council
490. What is the maximum amount of investment in the shares of debentures of notified companies like the ICICI, the
1DB1 etc. that will entitle a rebate in income tax up to 20%oftheamount invested?
(a) Rs- 80000 (b) Rs. 60000 (c) Rs. 20000 (d) Rs. 10000
491. Under which Act/Policy was the BIFR established?
(a) Industrial Policy of 1980 (b) Companies Act (c) Sick industrial Companies Act (d) MRTP Act
492. What is NABARD's primary role?
(a) to provide term loans to state co-operative banks (b) to assist state governments for share capital contribution
(c) to act as re-finance institution (d) All of the above
493. The Tarapore Committee recommended that before capital account was made convertible the rate of inflation
should be brought down for three years to within:
(a) 3.5% (b) 0.3% (c) 4.6% (d) 5.7%
494. The Indian economy can be most appropriately described as a :
(a) Capitalist economy (b) Socialist economy (c) Traditional economy (d) Mixed economy
495. Which of the following is not a necessary condition for the development of India?
(a) Capital Accumulation (b) Resource discovery (c) Population growth (d) Technological development
496. Antyodaya Programme is associated with :
(a) liberation of bonded labour (b) bringing up cultural revolution in India
(c) demands of textile labourers (d) upliftment of the poorest of the poor
497. The decimal system of Indian currency was started in
(a) 1950 (b) 1955 (c) 1957 (d) 1960
498. Which among the following policy of Life Insurance Company is related to regular old-age pension?
(a) Jivan Kishore (b) Jivan Chhaya (c) Jivan Sanchay (d) None of these
499. What has been the order of India’s imports during the last three years ?
(a) US $30 billion (b) US $ 40 billion (c) US $50 billion (d) US $60 billion
500. What is the purpose of the India Brand Equity Fund ?
(a) To promote in-bound tourism. (b) To make ‘Made in India’ a label of quality.
(c) To organize trade fairs. (d) To provide venture capital to IT sector.
501. Which of the following Mahatma Gandhi seires of currency notes issued by the RBI has a drawing of the ‘Parliament
House' depicted on it?
(a) Rs. 500 (b) Rs. 100 (c) Rs. 50 (d) Rs. 10
502. What are “Open Market Operations"?
(a) Activities of SEBI registered brokers (b) Selling of currency by the RBI
(c) Selling of gilt-edged securities by the Government (d) Sale of shares by FIIs
503. Why did the Government ban the import of ‘Terminator seeds"?
(a) To contain a virus which can destroy local crops
(b) These seeds are injurious to human and animal health
(c) These seeds contain genetically engineered properties to prevent further multiplication
(d) These seeds multiply at very slow rates
504. How does the consumer benefit with VAT?
(a) It removes tax on tax and thus reduces prise-rise (b) Reduces the cost of production
(c) With the abolition of the sales tax
(d) Due to the exemption of small businesses from the tax within certain limits prescribed by the State
505. In estimating the budgetary deficit, the official approach in India is to exclude
(a) long term borrowing from the market (b) borrowings from the . Reserve Bank of India
(c) drawing down of the cash balance (d) borrowing from Reserve Bank in the form of ways and means advance
506. The best way, a bank can avoid loss is to
(a) lend only to individuals known to the bank (b) accept sound collateral
(c) give only short-term loans (d) lend only to bank's old customers
507. Which amidst the following rural banks has been named after a river ?
(a) Prathama Bank (b) Varada Grameen Bank
(c) Thar Anchalik Grameen Bank (d) Aravali Kshetriya Grameen Banks
508. Which of the following is an open market operation of the RBI ?
(a) Buying and selling of shares (b) Trading in securities
(c) Transactions in gold (d) Lending to commercial banks
509. During which Five-Year Plan did India lay down the objective of the need to ensure environmental sustainability of
the development strategy ?
(a) 6th Five Year Plan (b) 7th Five Year Plan (c) 8th Five Year Plan (d) 9th Five Year Plan
510. Which of the following is not an objective of the monetary policy of the RBI?
(a) Boost economic development (b) Direct credit in desirable direction
(c) Control inflationary pressure (d) Ensure social justice
511. Which Bank was merged in the Punjab National Bank in February, 2003?
(a) Catholic Syrian Bank Ltd. (b) Nainital Bank Ltd. (c) Nedungadi Bank Ltd. (d) Madurai Bank Ltd.
512. State which amongst the following is not true about VAT ?
(a) All States have uniform VAT for the same product
(b) State have discretion to fix the rate of tax within the four rates prescribed
(c) It will promote production efficiency of investments
(d) It will make our exports more competitive
513. Reserve Bank of India keeps some securities against notes. These securities are always less in comparison to
(a) Gold and foreign bonds (b) Gold (c) Government bonds (d) Gold, foreign bonds and Government bonds.
514. Merchant Banking is an institution which provides finances to :
(a) domestic whole sale trade (b) international trade among countries
(c) domestic retail trade among (d) international aid agencies.
515. The system of issuing and monitoring of money in the market is known as-
(a) Proportional reserve ratio (b) Fixed reserve ratio (c) Minimum reserve ratio (d) Floating reserve ratio
516. Which among the following Indian State does not transacts its business through Reserve Bank of India ?
(a) Sikkim (b) Jammu and Kashmir (c) Arunachal Pradesh (d) Mizoram
517. Which among the following subjects is not an aim of the monetary policy of the Reserve Bank of India?
(a) Giving impetus to economic development (b) Direct credit with objective criteria
(c) To control pressure of inflation (d) To ensure social justice.
518. The Government of India made it obligatory on the part of all commercial banks that they should give some cash
amount while purchasing Government bonds. What would you call this?
(a) Statutory Liquidity Ratio (b) Cash Reserve Ratio (c) Minimum Reserve Ratio (d) Floating Reserve Ratio
519. The receipts of which of the following taxes/duties are not shared with the States?
(a) Tax on income except agriculture (b) Corporation tax (c) Surcharge on income tax (d) Capital gain tax
520. The national income of a country is-
(a) Government annual revenue (b) Total productive income
(c) Surplus of the public sector enterprise (d) Export— (Loan) Import
521. Under the minimum reserve system, the Reserve Bank of India as the sole authority of note issue is required to
maintain assets worth not less than
(a) 115 crores of rupees (b) 85 crores of rupees
(c) 200 crores of rupees (d) 210 crores of rupees
522. Which amidst the following taxes collected by the Union is NOT mandated to be assigned to the States?
(a) Terminal taxes on goods or passengers carried by railway, sea or air. (b) Taxes on railway fares and freights.
(c) Taxes on consignment of goods. (d) Service Tax.
523. One of the objectives of Indus trial Licensing Policy in India was to ensure :
(a) creation of adequate employment opportunities. (b) free flow of foreign capital in Indian industries.
(c) use-of modem technology. (d) balanced industrial development across regions.
524. Currency notes of Rs. 2 denomination and above are liabilities of :
(a) Government of India (b) Reserve Bank of India (c) State Bank of India (d) All of the above
525. The type of note issue system followed in India is :
(a) Maximum fiduciary system (b) Minimum reserve system
(c) Proportional fiduciary system (d) Fixed fiduciary system
526. Inflation is caused by :
(a) Increase in supply of goods (b) Increase in cash with the government
(c) Decrease in money supply (d) Increase in money supply
527. A firm sells new shares worth Rs. 1000 directly to individuals. This trans-action will cause.
(a) Gross National product to rise by Rs. 1000 (b) Gross Domestic Product to rise by Rs. 1000
(c) National Income to rise by Rs. 1000 (d) No impact on Gross National Product
528. What is the revised upper limit for foreign direct investment in telecom service companies ?
(a) 49 per cent (b) 51 per cent (c) 66 per cent (d) 74 per cent
529. Which from the following is not true when the interest rate in the economy goes up ?
(a) Savings increases (b) Lending decreases (c) Cost of production increases (d) Return on capital increases
530. Open market operation refers to
(a) borrowing by commercial banks from the R.B.I. (b) lending by scheduled banks to non-scheduled banks
(c) purchase and sale of Government securities by the R.B.I. (d) purchase and sale of bonds and securities by the
Central Govt.
531. Which is the first Public Sector Corporation of independent India?
(a) Hindustan Steel Corporation, Bhilai (b) State Trading Corporation of India
(c) Food Corporation of India (d) Damodar Valley Corporation
532. Which one of the following is not considered as an infrastructure investment ? Investment in a
(a) Power project (b) Railways project (c) Telecommunication (d) Automobile industry
533. Which one of the following currencies has the highest value in terms of rupee ?
(a) Pound (b) Dollar (c) Euro (d) Saudi Rial
534. What is known as the open market operation of the RBI ?
(a) Buying and selling of stocks (b) Auctioning of foreign exchange (c) Trading in securities (d) Transactions in gold
535. Which of the following functions as a controller of credit in India ?
(a) The Central Government (b) The Reserve Bank of India (c) The State Bank of India (d) The Planning Commission
536. When did the Rupee become a freely convertible currency on current account, in India ?
(a) 2000 (b) 2001 (c) 1994 (d) 1999
537. Antyodaya Programme is associated with
(a) Liberation of bonded labour (b) Bringing up cultural revolution in India
(c) Demands of textile labourers (d) Upliftment of the poorest of the poor
538. The Government resorts to devaluation of its currency in order to promote
(a) national income (b) international goodwill (c) exports (d) savings
539. The basic regulatory authority for mutual funds and stock markets lies with the
(a) Government of India (b) Reserve Bank of India (c) SEBI (d) Stock Exchange
540. The Employment Guarantee Scheme, which is now an important component of the NCMP, was first introduced in
which State ?
(a) Kerala (b) Maharashtra (c) Andhra Pradesh (d) West Bangal
541. Identify the Navratna Company in the following
(a) ICICI Bank (b) Infosys (c) HPCL Ltd (d) Air India
542. Which car has been the best seller in India in 2004-2005 ?
(a) Maruti800 (b) Maruti Suzuki Alto (c) Tata lndica (d) Santro Xing
543. Consider the following statements:
a. NTPC has diversified to hydropower sector
b. Power Grid Corporation has diversified into telecom sector. Which of the statements below is correct ?
(a) Only a (b) Only b (c) Both of a and b (d) None of a and b
544. Which Indian company secured the highest export revenue from IT software and services during the past two years
?
(a) TCS (b) Infosys Technologies Ltd. (c) Wipro Technologies Ltd (d) Satyam Computer Services Ltd.
545. Match the Indian and foreign companies as joint ventures in the field of life insurance : Indian Company
A. Tata B. ICICI Ltd.
C. Bajaj Ltd. D. HDFC Bank Foreign Company
1. AIG 2. Standard Life Insurance 3. Prudential Life Insurance 4. Allianz
Codes:
A B C D
(a) 1 3 4 2
(b) 2 4 3 1
(c) 4 1 2 3
(d) 3 4 1 2
546. Which of the following is apex bank for industrial loans ?
(a) RBI (b) NABARD (c) ICICI (d) IDBI
547. What is the main function of Central Statistical Organization (CSO) ?
(a) Determination of money supply (b) Collection of estimates of national income
(c) Collection of detail data regarding employment (d) Price determination
548. Planning and control are so related that
(a) Planning initiates control (b) Control initiates planning
(c) Both are equivalent (d) Both go on simultaneously in cycle
549. What does National Income mean?
(a) The total value of all goods and services produced in the country during a period of one year
(b) The total value of all stocks and shares in the country during a period of one year
(c) The total value of all capital goods produced in the country during a period of one year
(d) The total value of all consumer goods produced in the country during a period of one year
550. Which of the following taxes is levied by the Union and appropriated and planned by the states ?
(a) Service tax (b) Stamp duty (c) Property tax (d) Passenger and freight duty
551. Which of the following taxes is not shared between the Union and the states ?
(a) Income tax (b) Excise duty (c) Corporation tax (d) Sales tax
552. Which of the following is the most important domestic source of planned finance ?
(a) Balance of current revenue (b) Profit from public sector units
(c) Domestic private savings (d) Additional taxation
553. Consider the following reasons of continuous decline in average land-holding size in India : .
A. Law of inheritance B. Consolidation C. Farm mechanization

D. Desire of land ownership Pick the correct answer from the options given below :
(a) A, B, C and D (b) A, C and D (c) A and D (d) A and B
554. Which of the following sets belong to Central tax ?
(a) Excise duty, Sales tax and Customs duty (b) Excise duty, Customs duty and Income tax
(c) Income tax, Customs duty and House tax (d) Customs duty, Entertainment tax and Income tax
555. Per Capita income is maximum in which of the following states in India?
(a) Himachal Pradesh (b) Punjab (c) Gujarat . (d) Goa
556. What is the name of the electronic communication network of the Reserve Bank of India?
(a) BOLT (b) RBISAT (c) RBINET (d) RBIDOT
557. In India the largest public undertaking is —
(a) Air India (b) Indian Railways (c) IOC (d) LIC
558. “NABARD" is a/an
(a) Bank (b) Financial Institution (c) Insurance Corporation (d) Central Government Department
559. The main difference between Gross Domestic Product (GDP) and Gross National Product (GNP) is
(a) Transfer payments (b) Net foreign income from abroad (c) Capital consumption allowance (d) Capital gains
560. In a developing country like India, in which sector a high rate of disguised unemployment exists ?
(a) Corporate Sector (b) House-hold Sector (c) Service Sector (d) Agricultural Sector
561. The largest component of National Income in India is
(a) Service Sector (b) Agriculture (c) Industrial Sector (d) Trade Sector
562. Which one of the following is an example for Non-Banking Financial institution?.
(a) RBI (b) SBI (c) IOB (d) LIC
563. Who amongst the following has never been the Governor of Reserve Bank of India ?
(a) D. Subbarao (b) C. Rangarajan (c) B.B. Bhattacharya (d) Y.V. Reddy
564. Monetary policy in India is formulated by :
(a) Finance Ministry (b) RBI (c) SEBI (d)CLB
565. Who advocated the adoption of ‘PURA’ model to eradicate rural poverty ?
(a) M.S.Swaminathan. (b) Maulana AbuI Kalam Azad (c) Dr. A.P.J. Abdul Kalam (d) A.M.Khusro
566. In how many denominations is Indian paper currency printed at present ?
(a) 9 (b) 8 (c) 7 (d) 6
567. Which of the following is an example of Joint-Sector enterprise in India?
(a) Maruti Udyog Limited (b) The Indian Oil Corporation
(c) Hindustan Antibiotics Ltd. (d) Bharat Aluminium Ltd.
568. Taxation is a tool of
(a) Monetary policy (b) Fiscal policy (c) Price policy (d) Wage policy
569. Which one of the following is not included while estimating national income through income method?
(a) Rent (b) Mixed incomes (c) Pension (d) Undistributed profits
570. After ONGC, OIC, NTPC and SAIL, the ‘Navratna’ PSU which was awarded 'Maharatna' status. is
(a) HAL (b) GAIL (c) Coal India Ltd (d) BHEL
571. Which of the following ‘Public Undertakings' has not been conferred with 'Maharatna' Status ?
(a) SAIL (b) BHEL (c) ONGC (d) Coal India Limited
572. After ONGC,OIC, NTPC and SAIL, the ‘Navratna’ PSU which was awarded ‘Maharatna’ status is
(a) HAL (b) GAIL (c) Coal India Ltd (d) BHEL
573. India’s Balance of Payments can be corrected through
(a) Devaluation of currency (b) Vigorous export promotion (c) Import substitution (d) All of the above
574. The best example of a capital intensive industry in India is
(a) Textile Industry (b) Steel Industry (c) Tourism Industry (d) Sports Goods Industry
575. Which of the following is deducted from NNP to arrive at N1?
(a) Indirect Tax (b) Capital consumption allowance (c) Subsidy (d) Interest
576. Which one of the following is not a quantitative credit control measure of a Central Bank?
(a) Bank Rate Policy (b) Open Market Operations (c) Cash Reserve Ratio (d) Moral Suasion
577. Which one of the following is not an objective of Fiscal Policy in India?
(a) Full Employment (b) Price Stability
(c) Equitable Distribution of Wealth and Incomes (d) Regulation of International Trade
578. While computing national income estimates, which of the following is required to be observed?
(a) The value of exports to be added and the value of imports to be subtracted
(b) The value of exports to be subtracted and the value of imports to be added
(c) The value of both exports and imports to be added
(d) The value of both exports and imports to be subtracted
579. The fish catch by Indian fishermen in the international waters are part of the GDP of
(a) Sri Lanka (b) India and Sri Lanka (c) India (d) India and Indonesia
580. The latest volume of food grains to be given per family as determined under. ‘Annapurna Scheme' is —
(a) 35 kg (b) 20 kg (c) 10 kg (d) 40 kg
581. The Accounting Year of Reserve Bank of India runs from ;
(a) April to March (b) July to June (c) January to December (d) August to July
582. Who estimated the National Income for the first time in India?
(a) Mahalanobis (b) Dadabhai Naoroji (c) V.K.R.V. Rao (d) Sardar Patel
583. Which of the following States has the highest number of slums as per the data recently released by the Ministry of
Housing and ' Urban Poverty Alleviation?
(a) Uttar Pradesh (b) West Bengal (c) Maharashtra (d) Andhra Pradesh
584. The RBI issues currency notes under the
(a) Fixed Fiduciary System (b) Maximum Fiduciary System
(c) Fixed Minimum Reserve System (d) Proportional Reserve System
585. The implementation of Jawahar Rojgar Yojana rests with.
(a) Gram Panchayats (b) District Collectors (c) State Governments (d) Union Government
586. What does the open market operation of the RBI mean ?
(a) Buying and selling shares (b) Auctioning of foreign exchange (c) Trading is securities (d) Transactions in gold
587. Which of the following is a Navaratna PSE?
(a) Steel Authority of India Ltd. (b) MMTC Ltd (c) National Aluminium Company Ltd. (d) Oil India Ltd,
588. Which of the following is not the source of the revenue of central Government?
(a) Income Tax (b) Corporate Tax (c) Agricultural Income Tax. (d) Excise Dufy
589. Which of the following is Navaratna PSE?
(a) Hindustan Aeronautics Ltd. (b) Container Corporation of India Ltd.
(c) Mahanagar Telephone Nigam Ltd. (d) Engineers India Ltd.
590. The Government of India derives its single largest source of revenue from
(a) Direct Taxes (b) Customs Duties (c) Deficit Financing (d) Union Excise Duties
591. Mahalanobis Model has been associated with which Five- Year Plan?
(a) First Five-Year Plan (b) Second Five-Year Plan (c) Third Five-Year Plan (d) Fourth Five-Year Plan
592. Who had estimated National Income in India first?
(a) V.K. R. V. Rao (b) Dadabhai Naoroji (c) RC. Dutt (d) D.R. Gadgil
593. Which bank in India performs duties of Central Bank ?
(a) Central Bank of India (b) State Bank of India
(c) Reserve Bank of India (d) Above (a) and (b)
594. Which from the following is NOT a Navaratna PSU ?
(a) SAIL (b) –BHEL (c) NTPC (d) Shipping Corporation of India
595. Which amidst the following is a PSU?
(a) Bank of Rajasthan (b) Bank of India (c) Bank of Punjab (d) Karnataka Bank
596. Who among the following Indian Economists has done pioneering work on National Income ?
(a) Jagdish Bhagwati (b) M.L. Seth (c) Amartya Sen (d) V.K.R.V. Rao
597. Which from the following is not a Navaratna PSU?
(a) SAIL (b) LIC (c) IOC (d) ONGC

598 Which amidst the following is a PSU?
(a) Bank of Rajasthan (b) ICICI Bank (c) Corporation Bank (d) Citibank
599. The biggest item of India’s imports is :
(a) Iron ore (b) Mica (c) Petroleum products (d) Gems and jewellery
600. Which of the following is the Specially designed scheme for the welfare of the Indian women introduced recently
by. General Insurance?
(a) Rajeshwari (b) Bhagya Rajeshwari (c) Bhagyashree (d) Raja lakshmi
601. The largest source of revenue to the Union Government is
(a) Income Tax (b). Central Excise Duty (c) Customs Duty (d) Wealth Tax .
602. The first state owned company from India to be listed on the New York Stock Exchange is
(a) Videsh Sanchar Nigam Ltd. (b) Mahanagar Telephone Nigam Ltd.
(c) Tata Iron and Steel Company (d) Wipro
603. Which Indian private sector company has the largest sales turnover?
(a) Tata Sons (b) Reliance Industries (c) ITC Ltd. (d) Hindustan Lever Ltd.
604. National Income at factor cost is equal to
(a) Net National Product - Indirect taxes + Subsidies (b) Net National Product - Direct taxes + Subsidies
(c) Gross National Product - Depreciation charges (d) Net National Product + Net income from abroad
605. Which one of the following is not an industrial finance institution?
(a) UTI (b) ICICI (c) NABARD (d) SFCs
606. Cochin refineries is in :
(a) Public Sector (b) Joint Sector (c) Private Sector (d) Co-operative Sector
607. Ways and Means Advances refers to
(a) Industries getting temporary loans from commercial banks (b) Farmers getting loans from NABAED
(c) Government getting temporary loans from RBI (d) Government-getting loans from international financial
institutions
608. India's First Five Year Plan gave priority to '
(a) Industry (b) Trade (c) Transportation (d) Agriculture
609. The most important source of revenue for the states in India is
(a) Corporation tax (b) Income tax (c) Excise duties (d) Sales tax
610. The single largest item of expenditure of the Central Government in India in recent years is
(a) Defence (b) Subsidies (c) Interest payment (d) General services
611. In the production of cotton textiles India ranks
(a) fourth in the world (b) third in the world (c) second in the world (d) first in the world
612. Canalised list of items in foreign trade of India refers to
(a) the items to be imported by the private agencies (b) list of items to be subsidised
(c) list of items to be granted duty concession (d) items to be imported only by the State owned undertaking
613. The concept of mixed economy means
(a) to have balanced development in the agricultural and industrial sector
(b) simultaneous development of the rural and urban sector
(c) to have equal distribution of wealth among the rural and the urban poor
(d) simultaneous existence of the private and public sector
614. in Centre-State financial relations in India, Gadgil Formula is used in
(a) division of tax revenue (b) formulating the policy for fresh borrowings
(c) writing off States' indebtedness to the Centre (d) allocating Central Plan assistance between States
615. India adopted the Five-Year Plans from
(a) France (b) former USSR (c) America (d) England
617. Chairman of the Eleventh Finance Commission was
(a) A.M. Khusro (b) VijayKelkar (c) Deepak Parekh (d) Manmohan Singh
618. The financial capital of India is
(a) Mumbai (b) Chennai (c) Delhi (d) Chandigarh

619. The Reserve Bank of India issues currency notes under
(a) fixed fiduciary system (b) maximum fiduciary system
(c) minimum reserve system (d) proportional reserve system
620. The main objective of Antyodaya Programme is
(a) upliftment of urban poor (b) upliftment of industrial workers
(c) unpliftment of rural poor (d) upliftment of farmers
621. Which of the following is the largest employer in India?
(a) Food Corporation of India (b) Posts and Telegraphs Department
(c) Indian Railways (d) Steel Authority of India
622. Fiscal policy is concerned with
(a) Public revenue (b) Public expenditure and debt (c) Bank rate policy (d) Both (a) and (b)
623. Banks in India were nationalized for the first time in the year-
(a)1950 (b)1960 (c) 1969 (d) 1979
624. NABARD is the name of a
(a) Commercial bank (b) Financial Institution
(c) Specialized bank to help agriculture (d) Non-Banking Financial Institution
625. The credit control operation in India is performed by
(a) Rural banks (b) Commercial banks (c) Reserve Bank of India (d) State Bank of India
626. Which of the following yields the largest revenue to the Government of India?
(a) Sales tax (b) Excise duty (c) Income tax (d) Entertainment tax
627. The gift edged market in the capital market of India refers to
(a) long-term private securities (b) market dealing in existing securities.
(c) market for corporate securities (d) market for Government securities
628. Commercial banking system in India is
(a) mixed banking (b) unit banking (c) branch banking (d) None of these
629. The preparation of National Income Estimates is the responsibility of the
(a) Planning Commission (b) National Development Council
(c) National Sample Survey Organization (d) Central Statistical Organization
630. To achieve economic self-reliance was the main objective of which Five Year Plan?
(a) First Five Year Plan (b) Second Five Year Plan (c) Third Five Year Plan (d) Fourth Five Year Plan
631. In which sector of the Indian economy is productivity the highest?
(a) Manufacturing (b) Transport, Communication and Commerce (c) Agriculture (d) Other sectors
632. The Reserve Bank of India
(a) provides direct finance to agriculture (b) provides finance to primary cooperative societies
(c) provides finance to state cooperative banks (d) does not provide finance to agriculture
633. What does the open market operations of the RBI mean?
(a) Buying and selling shares (b) Auctioning of foreign exchange (c) Trading in securities (d) Transactions in gold
634. Among the tax revenues of the Union Government, what is the largest source?
(a) Income Tax (b) Corporation Tax (c) Central Excise (d) Customs Duty
635. Which of the following is not a part of national income?
(a) Wages and Salaries (b) Profits (c) Rent (d) Interest on national debt
636. The largest share of India's national income originates in the
(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) Any of the above
637. The largest share in our imports is from
(a) North America (b) European Community
(c) OPEC (Organization of Petroleum Exporting Countries) (d) African and Asian Developing Countries
638. What is the “Gram Samridhi Yojana” in replacement of
(a) Indra Awas Yojana (b) Jawahar Rozgar Yojana (c) Prime Minister's Employment Scheme. (d) I.R.D.P
639. Where is the biggest private sector power project in India located?
(a) Rajahmundry in Andhra Pardesh (b) Neyveli in Tamil Nadu (c) Korba in Madhya Pradesh (d) Dabhol in
Maharashtra
640. The highest foreign exchanged earners have been the export of
(a) engineering goods (b) gems and jewellery (c) minerals (d) tea
641. Which of the following sectors contributed more to the savings in India?
(a) Public sector (b) Household sector (c) Corporate sector (d) Private sector
642. The objective of ‘Jawahar Rojgar Yojana' is to
(a) provide employment to youth in rural areas (b) create employment opportunities for unemployed persons
(c) strengthen the rural economic and social structure (d) All of the above
643. The Annapurna Scheme was implemented in the year
(a) 1998 (b) 1996 (c) 1999 (d) 2000
644. Insurance sector in India is regulated by
(a) RBI (b) CII (c) IRDA (d) SEBI
645. The abbreviation 'SEBI' stands for
(a) Savings and Exchange Bank of India (b) Securities and Exchange Bank of India
(c) Survey of essential business in India (d) Securities and Exchange Board of India
646. The Reserve Bank of India was nationalized in the year
(a) 1935 (b) 1969 (c) 1949 (d) 1980
647. The Government has renamed NREGA scheme and the name associated with the scheme is that of
(a) Rajiv Gandhi (b) Jawahar Lal Nehru (c) Mahatma Gandhi (d) Indira Gandhi
648. Which is the biggest tax paying sector in India?
(a) Agriculture sector (b) Industrial sector (c) Transport sector (d) Banking sector
649. Who is the Ex-officio Chairman of the Planning Commission?
(a) Minister for Planning & Development (b) Finance Minister
(c) Prime Minister (d) Minister for Rural &Community Development
650. The Draft of the Five Year Plans in India is approved by the
(a) National Development Council (b) Planning Commission
(c) National Productivity Council (d) Ministry of Finance
651. Gross Domestic Product is defined as the value of all
(a) goods produced in an economy, in a year (b) goods and services produced in an economy in a year
(c) final goods produced in an economy in a year (d) final goods and services produced in an economy in a year
652. The present Indian monetary system is based on
(a) Gold Reserve System (b) Proportional Reserve System
(c) Convertible Currency System (d) Minimum Reserve System
653. India is called a mixed economy because of the existence of
(a) Public Sector (b) Private Sector (c) Joint Sector (d) Cooperative Sector
(a) a, d (b) a, b (c) c, d (d) b, d
654. NREGP is the abbreviated form of
(a) National Rural Employment Guarantee Programme
(b) National Rural Educational Guarantee Programme
(c) National Rapid Educational Guarantee Programme
(d) National Rapid Employment Guarantee Programme
656. The term ‘Mixed Economy' denotes
(a) existence of both rural and urban sectors (b) existence of both private and public sectors
(c) existence of both heavy and small industries (d) existence of both developed and underdeveloped sectors
657. FERA in India has been replaced by
(a) FEPA (b) FEMA (c) FENA (d) FETA
658. GDP at Factor Cost is
(a) GDP minus indirect taxes plus subsidies (b) GDP minus depreciation allowances
(c) NNP plus depreciation allowances (d) GDP minus subsidies plus indirect taxes
659. Which plan gave emphasis on removal of poverty for the first time?
(a) Fourth (b) Fifth (c) Sixth (d) Seventh
660. The Planning Commission of India was constituted in the year
(a) 1942 (b) 1947 (c) 1950 (d) 1955
661. Token privatization or deficit privatization of public sector units occur when the government sells
(a) 5% of shares (b) 10% of shares (c) 15% of shares (d) 20% of shares
662. Per capita income is obtained by dividing National Income by
(a) Total population of the country (b) Total working population
(c) Area of the country (d) Volume of capital used
663. The Centre for Agricultural Marketing is located at
(a) Jaipur (b) New Delhi (c) Nagpur (d) Hyderabad
664. Where is the Indian Institute of Foreign Trade Located?
(a) New Delhi (b) Hyderabad (c) Mumbai (d) Ahmedabad
665. Which is not the objective of Public Procurement and Distribution system followed by Indian Government?
(a) Maintain price stability through creation of buffer stocks
(b) Protect the interests of both consumers and poor farmers
(c) Control the production of food grains (d) Reduce personal and regional inequality in the distribution
666. Reserve Bank of India was nationalized in
(a) 1947 (b) 1948 (c) 1949 (d) 1951
667. When was the Jawahar Rozgar Yojna launched ?
(a) 1985 (b) 1987 (c) 1989 (d) 1991
668. ‘Next zone’ an information technology SEZ is being established at
(a) Panki in Uttar Pradesh (b) Panvel in Maharashtra
(c) Bangalore in Karnataka (d) Secunderabad in Andhra Pradesh
669. With the inclusion of Shipping Corporation of India recently in the list of Nav Ratna PSEs, their number now stands
at
(a) 15 (b)16 (c) 17 (d)18
670. ICI is the name associated with
(a) a MNC which manufactures chemicals (b) Indian Cement Industry
(c) Chamber of Commerce and Industry (d) a private sector bank
671. The Report of Vijay Kelkar Committee relates to
(a) Trade Reforms (b) Centre-State Financial Relations
(c) Disinvestment in Public Sector Enterprises (d) Tax Reforms
672. In the post-independence period, economic reforms were first introduced in India under
(a) P.V. Narasimha Rao Government (1990) (b) Indira Gandhi Government (1980).
(c) Rajiv Gandhi Government (1985) (d) Janata Party Government (1977)
673. Which one of the following is not correct?
(a) First Five Year Plan-1951-56 (b) Second FiveYearPlanl956-61
(c) Third Five Year Plan-1961-66 (d) FourthFiveYearPlan-1966-71
674. The Commission in India dealing with minimum support price, procurement price, etc in connection with
agricultural goods is the
(a) Planning Commission (b) Agricultural Costs and Prices Commission
(c) Agricultural Price Commission (d) National Marketing Commission
675. Which of the following Indian banks became the first to touch a market capitalization of Rs. 1,00,000 crore in India?
(a) ICICI (b) HDFC (c) SBI (d) PNB
676. Who coined the term ‘Hindu rate of growth’ for Indian economy?
(a) A.K. Sen (b) Kirit S. Parikh (c) Raj Krishna (d) Montek Singh Ahluwalia
677. In the budget figures of the Government of India, interest payments, subsidies, pensions, social services and the like
are parts of the
(a) Plan Expenditure (b) State Government Expenditure
(c) Public Debt in the form of Capital Expenditure (d) Non-plan Expenditure
678. RBI does not transact the business of which State Government?
(a) Nagaland (b) Jammu and Kashmir (c) Punjab (d) Assam
679. The highest body which approves the Five Year Plan in India is the
(a) Planning Commission (b) National Development Council
(c) Finance Ministry (d) Union Cabinet
680. The official agency responsible for estimating National Income in India is
(a) Indian Statistical Institute (b) Reserve Bank of India
(c) Central Statistical Organization (d) National. Council for Applied Economics and Research
681. India’s biggest nationalized enterprise today
(a) the Indian Railways (b) the Indian Commercial Banking System
(c) the Indian Power Sector (d) the Indian Tele communication System
682. In the budget figures of the Government of India the difference between total expenditure and total receipts is
called
(a) Fiscal deficit (b) Budget deficit (c) Revenue deficit (d) Current deficit
683. Which of the following has the sole right of issuing currency (except one rupee coins and notes) in India ?
(a) The Government of India (b) The Planning Commission
(c) The State Bank of India (d) The Reserve Bank of India
684. The famous slogan “GARIBIHATAO" (Remove Poverty) was launched during the
(a) First Five Year Plan (1951-56) (b) Third Five Year Plan (1961-66)
(c) Fourth Five Year Plan(1964-66) (d) Fifth Five Year Plan (1974-79)
685. In which plan was self-reliance first emphasized
(a) Second Plan (b) Third Plan (c) Fourth Plan (d) Fifth Plan
686. The total number of nationalized banks in India is
(a) 14 (b) 19 (c) 21 (d) 30
687. In India, one-rupee coins and notes and subsidiary coins are issued by
(a) the Reserve Bank of India (b) the Central Government (c) the State Bank of India (d) the Unit Trust of India
688. Which authority decides about The States’ share in central taxes?
(a) Finance Commission (b) Planning Commission (c) Election Commission (d) Finance Ministry
689. Which State has the lowest per capita income in India ?
(a) Bihar (b) Orissa (c) Rajasthan (d) Gujarat
690. In the budget figures of the Government of India, fiscal deficit is
(a) total expenditure – total receipts (b) revenue expenditure- revenue receipts
(c) capital expenditure-capital receipts + market borrowings
(d) sum of budget deficit and Government’s market borrowings and liabilities
691. Which of the following is not in the infrastructure sector?
(a) Power generation (b) Construction of roads (c) Food production (d) Expansion of air ports
692. The Narasimham Committee (1991) on financial reforms proposed for establishment of a
(a) Four tier hierarchy of the Banking structure
(b) Three tier hierarchy of the Banking structure
(c) Two tier hierarchy of the Banking structure
(d) Unified control by the apex institutions

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