ESI Test No.

2
Q.1
Which one of the following years was not
covered under any of the Five-year plans of India?
A. 1968-69
B. 1971-72
C. 1965-66
D. 19 81-82
Q.2 In India, with the introduction of economic
planning particularly after 1962, the previous trend
of stagnancy in agriculture was reversed
A. As there was a significant rise in the cultivation
area and productivity
B. because of PL-480 agreement with the USA
C. Because of the formation of agricultural cooperatives
D. As adequate agriculture finances became
available
Q.3 Which of the following component(s) form(s)
part of the new agricultural strategy in India?
1. Package of new inputs
2. Greater cropping intensity
3. Emphasis on land reforms
Select the correct answer
A. 1 alone
B. 1 and 2
C. 2 and 3
D. 1 and 3
Q.4 Consider the following financial institutions:
1. IFCI
2. UTI
3. GIC
4. ICICI
The correct chronological order in which they came
onto existence is
A. 1, 4, 3, 2
B. 4, 1, 2, 3
C. 4, 1, 3, 2
D. 1, 4, 2, 3
Q.5 Consider the following economic events in
India:
1. Green revolution
2. Announcement of socialistic pattern of society as
a goal of economic planning
3. First devaluation if Indian rupee
4. Indian Census Act

The correct chronological sequence of these events

is
A. 3, 4, 2, 1
B. 4, 3, 2, 1
C. 4, 3, 1, 2
D. 3, 4, 1, 2
Q.6 Which of the following pairs are correctly
matched?
1. Treasury Bill- RBI
2. Interest Rate - Discount and Finance of India
3. Call money Rate Commercial Bank
4. Prudential norms RBI
Select the correct answer:
A. 1, 2, 3, 4
B. 2 and 4
C. 1, 2, 3
D. 1, 3, 4
Q.7 It is generally believed that a rise in the tax rate
would normally lead to a rise in tax revenue. But
there is also a view that reduced rates on income-tax
would lead to significant rise in income-tax revenue.
This later view has been attributed to
A. Arthur Laffer
B. Robert Lucas
C. Herbert Simon
D. J. B. say
Q.8 After allowing the states share of taxation,
Which of the following tax revenues bring in the
largest amount of revenue to the Central
government?
A. Corporation tax
B. Income Tax
C. Custom Duties
D. Union Excise Duties
Q.9 Match list 1 with list 2 and select the correct
answer
List 1:
a. Service tax
b. Stamp duty
c. Property Tax
d. Sales Tax
List 2:
1. Central Government
2. State Government
A. a-1, b-1, c-2, d-2
B. a-1, b-2, c-2, d-2
C. a-1, b-1, c-1, d-2

D. a-1, b-2, c-2, d-1

Q.10 Short-term measure focused under the new
economic policy is
A. Correcting the disequilibrium in foreign exchange
market
B. Reforms in financial and capital market
C. Trade and industrial reforms
D. Technological up-gradation of production
facilities in different fields
Q.11 as per the recommendations of the Finance
Commission, besides income tax, the net proceeds of
which of the following tax/es is/are to be shared
between the Central and the States?
1. Additional duties of Excise
2. Wealth tax on agricultural properties
3. Union excise duties
Select the correct answer
A. 1, 2, 3
B. 3 alone
C. 1 and 3
D. 2 and 3
Q.12 which of the following have been pointed out
as deleterious effects of foreign direct investment in
India by those who are opposed to it?
1. Inappropriate technology
2. Skewed income distribution
3. Transfer pricing
4. Labour intensity
Select the correct answer
A. 1, 2, 3, and 4
B. 1, 2, 3
C. 2 and 4
D. 1 and 3
Q.13 Consider the following legislations:
1. Indian Trade Union Act
2. Payment of Wages Act
3. Minimum Wages Act
The correct chronological sequence
enactment in India is
A. 1, 3, 2
B. 1, 2, 3
C. 2, 1, 3
D. 2, 3, 1

of

their

Q.14 Which one of the following effects of the

creation of black money in the parallel economy of

India has been the source of greatest worry to the

Government of India?
A. Diversion of resources to the purchase of real
estate and investment in luxury
B. Investment in precious stones, jewellery, gold, etc
C. Conspicuous consumption of businessmen and
the capitalists
D. Loss of revenue to the state exchequer due to tax
evasion
Q.15 Open market operations refer to:
A. Borrowing by scheduled banks from RBI
B. Lending by commercial banks to industry and
trade
C. Purchase and sale of government securities by the
RBI
D. Deposit mobilization
Q.16 The Reserve bank of India acts as a bankers
bank. This would imply which of the following
1. Other banks retain their deposits with the RBI
2. RBI lends funds to the commercial banks in times
of need
3. RBI advises the commercial banks on monetary
matters
Select the correct answer:
A. 2 and 3
B. 1 and 2
C. 1 and 3
D. 1, 2 and 3
Q.17 Consider the following institutions
1. Planning Commission
2. National Productivity Council
3. NABARD
4. Central Statistical Organization
The correct chronological order of establishment in
India is:
A. 1, 4, 3, 2
B. 4, 1, 2, 3
C. 1, 4, 2, 3
D. 4, 1, 3, 2
Q.18 Consider the following four policy measure:
1. IRDP
2. MRTP Act
3. FERA
4. Import of food grains under PL-480
The correct chronological order in which they
appeared on the scene is
A. 4, 2, 1, 3

B. 4, 2, 3, 1
C. 2, 4, 3, 1
D. 2, 4, 1, 3
Q.19 Consider the following steps:
1. Fiscal Reforms
2. Structural Reforms
3. Financial Sector Reforms
4. Population Policy
The new Economic Policy in India includes
A. 1, 2 and 3
B. 2 and 3
C. 1 and 4
D. 1, 2, 3 and 4
Q. 20 In spite of forty years of economic planning,
the average per hectare agricultural production in
India has remained one of the lowest in the world.
The dominant factor responsible for the
backwardness of Indian agriculture has been
A. over-crowding in agriculture
B. discouragement of rural atmosphere
C. small-size of the land holding
D. inadequate irrigation facility
Q.21 Municipalities finance their expenditure by
imposing among others
A. Sales Tax
B. Profession Tax
C. Excise Duties
D. Gift Tax
Q.22 Finance Bill is a bill which
A. authorizes expenditure out of the Consolidated
Fund of India
B. Authorizes expenditure out of the Contingency
Fund of India
C. Gives effects to the financial proposals of the
government for the succeeding financial year
D. Authorizes the government to spend the money
raised through taxes, etc
Q. 23 Which one of the following entails Minimum
expenditure by the Government of India
A. Interest payments
B. Defense expenditure
C. Education, art, culture, scientific services and
research
D. Health, family, welfare and medical services

Q. 24 The First Year Plan of the Government of

India was based on
A. Leontief input-output model
B. Harrod-Domar model
C. Mahalanobis two-sector model
D. Mahalanobis four sector model
Q.25 Which of the following are the major
significant achievements of planning relating to
agriculture in India?
A. Abolition of exploitative land tenures like
Zamindari in a peaceful manner
B. Reduction of population dependent on Agriculture
C. Increase in food grains
D. Reduction in the number of small and marginal
holdings
A. 1, 2, and 4
B. 1 and 3
C. 1 and 4
D. 2, 3 and 4
Q. 26 which one of the following is not a
quantitative credit control measure of the Reserve
Bank of India
A. Bank Rate
B. Statutory Cash Reserve requirement
C. Statutory Liquidity Ratio
D. Moral Suasion
Q. 27 Consider the following statements:
The Indian Income Tax is
1. Progressive
2. Proportionate
3. Direct
4. income-elastic
Of these statements which one are correct?
A. 1, 2, and 4
B. 1, 2, and 3
C. 1, 3 and 4
D. 2, 3 and 4
Q. 28 which one of the following dealt exclusively
with taxation of agricultural wealth and income in
India
A. John Mathai Committee1953
B. Kaldors Report 1956
C. Wanchoo Committee 1971
D. Raj Committee 1972

Q. 29 Which one of the following types of revenues

is not shared by the Central Government with the
state Governments?
A. Central Sales Tax
B. Income Tax
C. Excise Duty
D. Customs Duty
Q.30 Match List I with List II and select the correct
answer
List 1
a. State Bank of India
b. Green Revolution
c. Bank Nationalization
d. Foreign Exchange
List 2
1. 1950
2. 1955
3. 1966
4. 1969
5. 1973
A. a-1, b-2, c-4, d-3
B. a-1, b-2, c-3, d-4
C. a-2, b-3, c-4, d-5
D. a-2, b-4, c-5, d-4
Q.31 Consider the following statements:
New economic policy has greater relevance to the
rural sector in the context of
1. Farm subsidies
2. Bio-technological innovations
3. Trade liberalization
4. Increasing input to agriculture
Among these, correct statements are:
A. 1 and 4
B. 1 and 2
C. 1, 2 and 3
D. 2, 3and 4
Q.32 Consider the following statements
1. RBI puts out more paper money for circulation
2. The commercial banks expand their credit
operations
3. The central government gives more grants to the
states
4. The Government of India borrows from the RBI
Among these, the correct statements are
A. 1, 2 and 3
B. 2, 3 and 4
C. 1, 3 and 4
D. 1, 2 and 4

Q. 33 The principle of indicative planning was

adopted for the first time in the
A. Fifth five year plan
B. Sixth five year plan
C. Seventh five year plan
D. Eighth five year plan
Q.34 Which one of the following growth models was
the basis of the planning strategy during the Second
and Third five year plans of India?
A. Harrod Domar growth model
B. The Mahalanobis Two-Sector Model
C. Alan Manne & Ashoke Rudras 30-sector
Consistency
D. Model Kaldors Model of Growth
Q.35 Which one the following was primary cause for
the attainment of the food grains production target
under the First five year plan in India
A. Spur in fertilizer consumption
B. Good monsoons
C. Creation of irrigation potential
D. Community development projects
Q.36 Consider the following statements:
The essence of the policy of liberalization is its
reliance on the market mechanism, yet the strategy
of economic planning cannot be discarded because
1. The market mechanism cannot ensure equilibrium
of demand and supply in the short-run which
economic planning can
2. In several socio-economic spheres the market is
non-existent
3. In several socio-economic spheres the market is
not effective
Among these, correct statements are:
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. 1, 2 and 3
Q.37 Which one of the following measures of land
reforms, has, by now, been almost fully implemented
in India
A. Tenancy reforms
B. Ceiling on land holdings
C. Abolition of intermediaries
D. Consolidation of holdings

Q. 38 Which one of the following pairs is correctly

matched?
A. Regional Rural banks Sponsored by
Commercial Banks
B. Lead Banks - Sponsored by RBI
C. NABARD - Sponsored by World Bank
D. Apex Co-operative Bank -Sponsored by Asian
Development Bank
Q.39 The main aim of the New Industrial Policy of
1991 was to
A. Remove restrictions of the MRTP Act
B. Dismantle the public enterprises
C. Unshackle the Indian industrial economy from
unnecessary bureaucratic controls
D. Remove restrictions on direct foreign investment
Q.40 Industrial licensing was abolished for all
industries in 1991 except for
A. Small-scale industries
B. Industries related to security and strategic
concerns
C. Multi-national corporations
D. Export-oriented industries
Q.41 The State Finance Corporations
A. Provides working capital to small-scale
B. Provide long-term finance to large-scale
industries
C. Provide all types of finance to industries
D. Act as agents of the state governments in
providing finance to small-scale industries
Q.42 Which one of the following groups of items is
included in Indias foreign exchange reserves?
A. Foreign currency assets, Special Drawing Right
(SDRs) and loans from foreign countries
B. Foreign-currency assets, gold holding of RBI and
Special Drawing Rights (SDRs)
C. Foreign-currency assets, loans from the World
Bank and Special Drawing Right (SDRs)
D. Foreign-currency assets, gold holding of RBI and
loans from the World Bank
Q.43 Narasimham committee I dealt with
A. Banking sector reforms
B. Capital-market reforms
C. Non-banking institutions reform
D. Insurance sector reforms

Q. 44 the case of price stability as the dominant

objective of monetary policy in Indian rests on
certain assumptions. Which one of the following is
NOT a correct assumption?
A. Volatility prices creates uncertainty in decision
making
B. Rising prices make speculative investment more
attractive
C. Rising prices create favorable climate for
promoting saving and for making optical allocation
of resources have no hedge against inflation
D. Rising prices affect adversely those who intend to
save more
Q.45 which one of the following measures has been
accorded the highest priority by the government for
checking the inflationary pressure on the economy
since 1990?
A. Revamping the Public Distribution System
B. Correcting the fiscal imbalance by reducing the
fiscal deficit as a percentage of GDP
C. increasing imports
D. Devaluations of the Rupee
Q.46 We have a variety of banking institutions in
India as follow:
1. SBI
2. RBI
3. RRBs
4. NABARD
The correct chronological order in which they came
into being is
A. 1, 2, 3, 4
B. 3, 4, 2, 1
C. 2, 1, 3, 4
D. 4, 3, 2, 1
Q.47 The basic aim of the Lead Bank Scheme is that
A. Big banks should try to open offices in each
district
B. There should be stiff competition among the
various nationalized banks
C. individual banks should adopt particular districts
for intensive development
D. all the banks should make intensive efforts to
mobilize deposits
Q.48 Which one of the following taxes belongs
exclusively to the state governments of India
A. Income Tax
B. Agricultural Income Tax

C. Excise Duties
D. Wealth Tax
Q.49 Which one of the following sources of central
revenue belongs to the category of indirect taxes?
A. Corporation Tax
B. Customs
C. Wealth
D. Interest Receipts
Q.50 Which one of the following causes of Central
Government fiscal deficits during the last few years
can be said to be economically avoidable, though
politically difficult?
A. Rise in defense expenditure
B. Rise in agricultural subsidies
C. Rise in salaries of Central Govt. employees
D. Rise in interest payment
Q.51 The reform story really begins with the balance
of pat (BoP) crisis of 1991. This crisis was a
combined effect of number of events coinciding.
These included:
1. Collapse of the Soviet Union that had emerged as
Indias major trading partner.
2. The Gulf War that erupted in January 1991
worsened the BoP crisis.
3. Because of Gulf War there was a virtual stoppage
of remittance from Indian workers in the Gulf.
4. These events coupled with political uncertainty
prevailing in the country led international credit
rating agencies to lower Indias rating both for short
term borrowing.
A. 1 and 2
B. 1, 2 and 3
C. 2, 3 and 4
D. All
Q.52 Identify correct statements.
1. The state of Indias public finances had indeed
reached crisis proportions by the end of 1980s. The
Public Debt to GDP ratio increased through the
1980s, going up to almost 60% at the end of the
decade, implying a doubling the ratio at the end of
the previous decade.
2. The failure of the public sector enterprises to
generate profits is a macroeconomic efficiency
failure.
A. Only 1 Correct
B. Only 2 Correct
C. Both Correct

D. Both incorrect
Q.53 The Reform package outlined by Dr.
Manmohan Singh in 1991 had which of the
following components?
1. Fiscal Stabilization
2. Internal Liberalization
3. Integration with the global economy
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All
Q.54 The New Industrial Policy (NIP) announced on
________, it dismantled the industrial licensing
system that regulated the industrial investments in
the country by abolishing the requirement of
obtaining an industrial license from the government
in all except five specified industries.
A. 24 July 1992
B. 24 July 1991
C. 21 June 1992
D. 21 June 1991
Q.55 In the area of foreign investment, the policy
statement abolished the threshold of 40% on foreign
equity investment. The concept of automatic
approval was introduced whereby the _________
was embowered to approve equity investment up to
51% in the 34 priority industries traditionally
called appendix I industries and now listed in
annex III of new policy.
A. FIBP
B. DIPP
C. Reserve Bank of India
D. SEBI
Q.56 Which of the following are the Laws governing
terms and conditions of employment?
1. Industrial Disputes Act, 1947
2. Industrial Employment Act, 1946
3. Trade Unions Act, 1926
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All
Q.57 Which of the following are the Laws governing
wages?
1. Minimum Wages Act, 1948
2. Payment of Wages Act, 1936

3. Payment of Bonus Act, 1965

A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All
Q.58 Which of the following is not a law governing
Welfare of employees?
A. Factories Act, 1948
B. Payment of Gratuity Act, 1972
C. Employees Compensation Act, 1952
D. Maternity Benefits Act, 1961
Q.59 Which of the following is not a law governing
Social Security of employees?
A. Employees Provident Funds and Miscellaneous
Provisions Act, 1952
B. Employees State Insurance Act, 1948
C. Factories Act, 1948
D. Payment of Gratuity Act, 1972
Q.60 In a flexible exchange rate system, an increase
in the domestic interest rate would tend to
A. Improve the current account and worsen the
capital account
B. Improve both the current and capital account
C. Worsen both the accounts
D. Worsen the current account and improve the
capital account
Q.61 Special Drawing Rights (SDRs) is the currency
of IMF, This is in the form of
A. Paper Currency
B. Gold
C. Silver and Gold both
D. Book Keeping Entry only
Q.62 Consider the following statements:
1. IMF
2. IBRD
3. UN
Which of the following statements are correct?
A. 1 and 2
B. 2 and 3
C. 1 and 3
D. All
Q.63 A deficit in a countrys Balance of Payments
refers to the difference between
A. Autonomous receipts and autonomous payments
B. Accommodating receipts and autonomous
payments

C. Accommodating receipts and accommodating

payments
D. Autonomous receipts and accommodating
payments
Q.64 Which of the following does not form a part of
the foreign exchange reserves of India?
A. Gold
B. SDRs
C. Foreign Currency Assets
D. Foreign Currency and Securities held by the
banks and corporate bodies.
Q.65 The NITI Aayog was set up by?
A. Amending Constitution
B. An Act
C. Cabinet Secretariat Resolution
D. Ministry of Planning Resolution
Q.66 The opening paragraph of above resolution
contains Quote of which of the following
personality?
A. Mahatma Gandhi
B. Pandit Madan Mohan Malviya
C. Swami Vivekananda
D. Pandit Deen Dayal Upadyay
Q.67 The concluding paragraph of above resolution
contains Quote of which of the following
personality?
A. Mahatma Gandhi
B. Pandit Madan Mohan Malviya
C. Swami Vivekananda
D. Pandit Deen Dayal Upadyay
Q. 68 The NITI Aayog was setup on?
A. January 1, 2015
B. January 2, 2015
C. January 7, 2015
D. January 26, 2015
Q.69 The Planning Commission was setup on?
A. March 15, 1950
B. March 8, 1950
C. March 15, 1951
D. March 8 1951
Q.70 The Planning Commission was set up by?
A. Amending Constitution
B. An Act
C. Cabinet Secretariat Resolution

D. Ministry of Planning Resolution

Q.71 Which of the following national leader had
quoted Unreasonable to centralize powers where
central control and uniformity is not clearly essential
or it impracticable.
A. Dr. B. R. Ambedar
B. Dr. Rajendra Prasad
C. Pandit Jawaharlal Nehru
D. Sardar Vallabhbhai Patel
Q.72 The Non-Resident Indian community, which is
spread across more than ____ countries, is larger in
number than the population of many countries of the
world.
A. 100
B. 150
C. 180
D. 200
Q.73 The meaning of sine qua non is?
A. Something that is absolutely needed
B. Without a day specified for a future meeting
C. According to a factor that can be calculated
exactly
D. Non compulsory
Q.74 Who said Nothing is more dreadfully painful
than poverty, and Gripping poverty robs a man of
the lofty nobility of his descent.
A. Saint Tiruvalluvar
B. Pandit Deen Dayal Upadhyay
C. Mahatma Gandhi
D. Jay Prakash Natayan
Q.75 The NITI Aayog will provide a framework
national agenda for ___.
1. Prime Minister
2. Cabinet Ministers of Central Government
3. Cabinet Ministers of State Government
4. Chief Ministers
5. Governors
A. Only 1
B. Only 1 and 4
C. Only 1, 2 and 4
D. All
Q.76 Which of the following posts/members are
there in NITI Aayog?
1. Chairman
2. Chairperson

3. Vice Chairman
4. Vice Chairperson
5. Full Time
6. Half Time
7. Part Time
8. Ex-Officio
A. 1,3,5,6,8
B. 1,3,5,7,8
C. 2,4,5,6,8
D. 2,4,5,7,8
Q.77 Governing Council of NITI Aayog comprises?
1. Prime Minister
2. Chief Ministers of All States
3.Full Time Members of NITI Aayog.
4. Governors of All States
5. Lt. Governors of UT
6. Finance Ministers of All States
A. 1,2 and 3
B. 1,2,3,5
C. 2,3,5
D. 2,5.
Q.78 The Regional Councils (NITI Aayog) will be
chaired by?
A. Prime Minister
B. Chief Ministers of State by Rotation
C. Prime Minister or his nominee
D. Vice Chairperson of NITI Aayog
Q.79 How many Ex-Office members can be
nominated by Prime Minister?
A. 4
B. Maximum 4
C. 5
D. No upper limit
Q.80 Which of the following statements are true in
respect of Part Time Members of NITI Aayog?
1. Maximum 2 members
2. Maximum 4 members
3. These Posts are Ex-Officio
4. Part Time Members will be appointed on a
rotational basis.
A. 1, 3
B. 2, 3
C. 1, 3, 4

D. 2, 3, 4
Q.81 Which of the following statements are correct
in respect of CEO of NITI Aayog?
1. He will be nominated by PM.
2. He will be appointed by PM.
3. His rank is equivalent to Cabinet Secretary
4. His rank is equivalent to Secretary to Government
of India
A. 1, 3
B. 1, 4
C. 2, 3
D. 2, 4
Q.82 Which of the following Ministers are ExOfficio members of NITI Aayog?
1. Shri Rajnath Singh
2. Shri Arun Jaitley
3. Shri Suresh Prabhu
4. Shri Radha Mohan Singh
5. Smt. Smriti Irani
6. Smt Sushma Swaraj
7. Mr. Nitin Gadkari
A.1,2,3,4
B. 1,2,3,5,
C. 1,2,4,5
D. 1,2,5,7
Q.83 Who among the following said, Inflation is
everywhere and always a monetary phenomenon?
A. James Tobin
B. John M. Keynes
C. Milton Friedman
D. Anna J. Schwartz
Q.84 Which one of the following would be
inconsistent with the Keynesian view about the
effectiveness of Monetary policy?
A. Velocity of monetary is relatively stable
B. The demand for money is interest sensitive
C. The demand for money is unstable
D. Investment demand is unstable
Q.85 What is perspective planning?
A. Overall appraisal of planning
B. Review of planning in different fields
C. Taking up past experience and reviewing the
future in that light

D. Planning for future so as to meet the long term

requirement of development in the country
Q.86 Who formulated the Peoples Plan for India in
1944?
A. J. L. Nehru
B. M. N. Roy
C. Subhash Chandra Bose
D. Mahatma Gandhi
Q.87 Trickle down strategy implies
A. Growing GNP taking care of poverty
B. Reduction in the income of the upper class by
deliberate redistribution
C. Direct achievement of better nourishment, health,
health, education, etc instead of growth of GNP first
D. To target a particular sector of economy for
betterment
Q.88 Of the following which combination of two
deficits is most significant for the Indian economy?
A. Fiscal Deficit and Revenue Deficit
B. Revenue Deficit and Primary Deficit
C. Budget Deficit and Fiscal Deficit
D. Current Account Deficit and Fiscal Deficit
Q.89 Who has advocated the concept of PURA
(Providing Urban Amenities in Rural Areas) for our
country?
A. Dr. A.P.J. Abdul Kalam
B. Dr. Manmohan Singh
C. Shri. Charan Singh
D. None of these
Q.90 Which of the following is not an item of social
security of labour?
A. Wage
B. Maternity benefits
C. Pensions
D. Industrial Injury Compensation
Q.91 Identify correctly the taxes in state List of the
Constitution of India?
1. Taxes on mineral rights
2. Taxes on Luxuries
3. Rates of Stamp Duty in respect of bills of
exchange, cheques and promissory notes
4. Excise duties on tobacco
A. 1 and 3
B. 1 and 2
C. 1, 3 and 4
D. 2, 3 and 4

Q.92 Lump sum grant means?

A. A grant whose amount is sufficient to meet the
expenditure
B. A matching and conditional grant
C. Grant given for a special purpose and it can be
utilized only for that purpose
D. A grant whose amount is not dependent on any
matching efforts that purpose
Q.93 Assertion (A): For Fiscal discipline,
expenditure cap is quite desirable.
Reason (R): A widening Fiscal Deficit adversely
impacts finance of the Central Government.
A. Both (A) and (R) are correct, but (R) is not
correct explanation of (A)
B. Both (A) and (R) are correct and (R) is correct
explanation of (A)
C. (A) is true, but (R) is false
D. (R) is true, but (A) is false
Q.94 Assertion (A): The Debt-GDP ratio of the State
Government is witnessed a decline after reaching the
peak level in 2004.
Reason (R): Debt Swap scheme was introduced and
interest rates were reduced.
A. Both (A) and (R) are correct, but (R) is not
correct explanation of (A)
B. Both (A) and (R) are correct and (R) is correct
explanation of (A)
C. (A) is true, but (R) is false
D. (R) is true, but (A) is false
Q.95 Taxes of the Union Government as per
Constitution of India includes:
1. Taxes on consumption and sale of electricity
2. Taxes on sale or purchase of newspapers and on
advertisements published therein
3. Taxes on capital value of assets
4. Duties in respect of succession to property
A. 1 and 3
B. 1 and 2
C. 2, 3 and 4
D. 1, 3 and 4
Q.96 Assertion (A): The minimum rate at which the
Central Bank is ready to lend is Bank Rate.
Reason (R): The Bank Rate is determined by
demand and supply of money.
A. Both (A) and (R) are correct, but (R) is not
correct explanation of (A)

B. Both (A) and (R) are correct and (R) is correct

explanation of (A)
C. (A) is true, but (R) is false
D. (R) is true, but (A) is false
Q.97 Which among the following is not a cause of
sickness of industrial units in India?
A. Obsolescent Technology
B. Lack of Capital Account Convertibility
C. Labour Problems
D. Faulty Location
Q.98 Assertion (A): In India, the traditional small
scale industries have greater employment potential
than the modern small scale industries.
Reason (R): The value of capital per worker in
traditional small scale industries
A. Both (A) and (R) are correct, but (R) is not
correct explanation of (A)
B. Both (A) and (R) are correct and (R) is correct
explanation of (A)
C. (A) is true, but (R) is false
D. (R) is true, but (A) is false
Q.99 Which of the following facts are correct about
the Competition Commission of India in India?
1. It was established in 2003.
2. It was established on the recommendations of
Raghvan Committee.
A. Both 1 and 2 are true
B. Both 1 and 2 are not true
C. Only 1 is true
D. Only 2 is true
Q.100 The Financial Sector Legislative Reforms
Commission 2013 submitted its recommendations on
the following aspects:
1. Legislative
2. Non Legislative
3. Marketing
4. Advertising
A. 1 and 3
B. 1, 3 and 4
C. 2, 3 and 4
D. 1 and 2