INDIAN ECONOMY (d)Interstate Council

Q8.
Q1. RBI does not transact the business of which of the
Which among the following policy of Life Insurance following state governments ?
Company is related to regular old age pension? (a) Nagaland
(a)Jivan Kishore (b) Assam
(b)Jivan Chhaya (c) J & K
(c)Jivan Sanchay (d) Rajasthan
(d)None of these
Q9.
Q2. Which amidst the following banks was recently
The decimal system of Indian currency was started in converted to a "Universal Bank” ?
(a) 1950 (a)Corporation Bank
(b) 1955 (b)Bank of Baroda
(c) 1957 (c)IDBI Bank
(d) 1960 (d)Canara Bank

Q3. Q10.
Which of the following is not a necessary condition for Which of the following PSU’s has been privatised?
the development of India ? (a) HZL
(a)Capital Accumulation (b) CMC
(b)Resource discovery (c) Hotel Corporation of India
(c)Population growth (d) NALCO
(d)Technological development
Q11.
Q4. Which amidst the following banks was converted to a
The Indian economy can be most appropriately Universal Bank recently?
described as a : (a) Punjab National Bank
(a)Capitalist economy (b) ICICI Bank
(b)Socialist economy (c)UTI Bank
(c)Traditional economy (d)IndusIand Bank
(d)Mixed economy
Q12.
Q5. Who has provided the Savings Bank facility to the largest
Under which Act Policy was the BIFR established ? number of account holders in India?
(a) Industrial Policy of 1980 (a)State Bank of India
(b) Companies Act (b)Punjab National Bank
(c) Sick Industrial Companies Act (c)Allahabad Bank
(d) MRTP Act (d)Post Office

Q6. Q13.
What is the maximum amount of investment in the The symbol of Reserve Bank of India is
shares of debentures of notified companies like the ICICI (a)Capitol of Asoka Pillar
the IDBI etc. that will entitle a rebate in income tax up to (b)Kuber with a purse of money
20% of the amount invested ? (c)Tiger before a Palm tree
(a)Rs. 80000 (d)A dog sitting in a defensive state
(b) Rs. 60000
(c) Rs. 20000 Q14.
(d) Rs. 10000 For whom was the first departmental life insurance
started ?
Q7. (a) Army
Which authority recommends the principles governing (b) Civil officers of Central Government
the grant sin aid of the revenues of the states out of the (c)Employees of postal department
Consolidated Fund of India? (d)Life Insurance Corporation
(a)Public Accounts Committee
(b)Union Ministry of Finance Q15.
(c)Finance Commission The main source of revenue for a State Government in
India is
(a) Sales tax
(b) Excise duty

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(c) Income tax
(d) Property tax Q23.
What is the purpose of the India Brand Equity Fund ?
Q16. (a) To promote inbound tourism.
To achieve high rates of growth of national output the (b) To make Made in India a label of quality
economy has to (c) To organize trade fairs
(a)reduce the rate of growth of population (d) To provide venture capital to IT sector.
(b)borrow foreign capital
(c)step up the rate of savings Q24.
(d)increase the rate of investment and reduce the Which of the following Mahatma Gandhi series of
capital output ratio currency notes issued by the RBI has a drawing of the
Parliament House depicted on it?
Q17. (a) Rs. 500
The proceeds of income tax go to (b) Rs. 100
(a)Central Government (c) Rs. 50
(b)State Government (d) Rs. 10
(c)Centre and States
(d)Corporation authorities Q25.
What are “Open Market Operations"?
Q18. (a)Activities of SEBI registered brokers
National income refers to (b)Selling of currency by the RBI
(a)money value of goods and services produced in a (c) Selling of gilt-edged securities by the Government
country during a year (d) Sale of shares by Fll’s
(b)money value of stocks and shares of a country during
a year Q26.
(c) Money value of capital goods produced by a country 30. Why did the Government bail fee import of
during a year Terminator seeds?
(d)money value of consumer goods produced by a (a)To contain a virus which can destroy local crops
country during a year (b)These seeds are injurious to human and animal
health
Q19. (c)These seeds contain genetically engineered
A Scheduled Bank is one which is included in the properties to prevent further multiplication
(a) II Schedule of Banking Regulation Act (d)These seeds multiply at very slow rates
(b) II Schedule of Constitution
(c) II Schedule of Reserve Bank of India Act Q27.
(d) None of the above How does the consumer benefit wife VAT?
(a) It removes tax on tax and thus reduces price rise
Q20. (b) Reduces fee cost of production
What is the extent of change of the literacy rate (c) With fee abolition of fee sales tax
envisaged by the end of the Xth Five Year Plan ? (d) Due to the exemption of small businesses from the
(a)From 65% to 75% tax within certain limits prescribed by the State
(b) From 60% to 70%
(c) From 50% to 55% Q28.
(d) From 45% to 50% Which amidst fee following rural banks has been named
after a river?
Q21. (a) Prathama Bank
Which of the following Mahatma Gandhi series of (b) Varada Grameen Bank
currency notes issued by the RBI has "ecology" depicted (c) Thar Anchalik Grameen Bank
on it? (d) Aravali Kshetriya Grameen Bank
(a) Rs. 500
(b) Rs. 100 Q29.
(c) Rs. 50 Which of the following is an open market operation of
(d) Rs. 5 the RBI ?
(a)Buying and selling of shares
Q22. (b)Trading in securities
What has been the order of India’s imports during the (c)Transactions in gold
last three years? (d)Lending to commercial banks
(a) US $ 30 billion
(b) US $40 billion Q30.
(c) US $ 50 billion
(d) US $60 billion

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During which Five Year Plan did India lay down the (b) Jammu and Kashmir
objective of the need to ensure environmental (c)Arunachal Pradesh
sustainability of the development strategy? (d)Mizoram
(a)6th Five Year Plan
(b)7th Five Year Plan Q38.
(c)8th Five Year Plan Which among the following subjects is not an aim of the
(d)9th Five Year Plan monetary policy of the Reserve Bank of India ?
(a)Giving impetus to economic development
Q31. (b)Direct credit with objective criteria
Which of the following is not an objective of the (c)To control pressure of inflation
monetary policy of tile RBI ? (d)To ensure social justice
(a)Boost economic development
(b)Direct credit in desirable direction Q39.
(c)Control inflationary pressure The Government of India made it obligatory on the part
(d)Ensure social justice of all commercial banks that they should give some cash
amount while purchasing Government bonds. What
Q32. would you call this?
Which Bank was merged in the Punjab National Bank in (a) Statutory Liquidity Ratio
February 2003 ? (b)Cash Reserve Ratio
(a)Catholic Syrian Bank Ltd. (c)Minimum Reserve Ratio
(b)Nainital Bank Ltd. (d)Floating Reserve Ratio
(c)Nedugadi Bank Ltd.
(d)Madurai Bank Ltd. Q40.
The receipts of which of the following taxes duties are
Q33. not shared with the States ?
State which amongst the following is not true about (a) Tax on income except agriculture
VAT? (b) Corporation tax
(a)All States have uniform VAT for the same product (c)Surcharge on income tax
(b)State have discretion to fix the rate of tax within the (d)Capital gain tax
four rates prescribed
(c) It will promote production efficiency of investments Q41.
(d) It will make our exports more competitive The national income of a country is
(a)Government annual revenue
Q34. (b)Total productive income
Reserve Bank of India keeps some securities against (c) Surplus of the public sector enterprise
notes. These securities are always less in comparison to (d) Export(Loan) Import
(a)Gold and foreign bonds
(b)Gold Q42.
(c)Government bonds Under the minimum reserve system the Reserve Bank of
(d)Gold foreign bonds and Government bonds India as the sole authority of note issue is required to
maintain assets worth not less than
Q35. (a)115 crores of rupees
Merchant Banking is an institution which provides (b)85 crores of rupees
finances to : (c)200 crores of rupees
(a)domestic whole sale trade (d)210 crores of rupees
(b)international trade among countries
(c)domestic retail trade among Q43.
(d)international aid agencies Which amidst the following taxes collected by the Union
is NOT mandated to be assigned to the States?
Q36. (a)Terminal taxes on goods or passengers carried by
The system of issuing and monitoring of money in the railway sea or air
market is known as (b) Taxes on railway fares and freights
(a) Proportional reserve ratio (c)Taxes on consignment of goods
(b)Fixed reserve ratio (d)Service Tax
(c)Minimum reserve ratio
(d)Floating reserve ratio Q44.
One of the objectives of Industrial Licensing Policy in
Q37. India was to ensure :
Which among the following Indian State does not (a)creation of adequate employment opportunities.
transacts its business through Reserve Bank of India? (b)free flow of foreign capital In Indian Industries.
(a)Sikkim (c) use of modem technology.

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(d)balanced Industrial development across regions. (d) PNB

Q45. Q52.
Currency notes of Rs. 2 denomination and above are The Commission in India dealing with minimum support
liabilities of price procurement price etc in connection with
(a)Government of India agricultural goods is the
(b)Reserve Bank of India (a) Planning Commission
(c)State Bank of India (b) Agricultural Costs and Prices Commission
(d)All of the above (c)Agricultural Price Commission
(d)National Marketing Commission
Q46.
The famous slogan “GARIBI HATAO” (Remove Poverty) Q53.
was launched during the Which one of the following is not correct ?
(a)First Five Year Plan (1951-56)(b)Second Five Year (a)First Five Year Plan1951-56
Plan (1956-61)(c)Third Five Year Plan (1961- (b)Second Five Year Plan1956-61
(c)Third Five Year Plan1961 -66
66)(d)Fourth Five Year Plan (1966-71) (d)Fourth Five Year Plan1966-71

Q54.
In the post independence period economic reforms were
first introduced in India under
Q47. (a)P.V. Narasimha Rao Government (1990)(b) Indira
The highest body which approves the Five Year Plan in Gandhi Government (1980)(c)Rajiv Gandhi Government
India is the (1985)(d)Janata Party Government (1977)
(a)Planning Commission
(b)National Development Council
(c)Finance Ministry
(d)Union Cabinet
Q55.
Q48. The Report of Vijay Kelkar Committee relates to
RBI does not transact the business of which State (a) Trade Reforms
Government? (b) Centre State Financial Relations
(a) Nagaland (c)Disinvestment in Public Sector Enterprises
(b) Jammu and Kashmir (d)Tax Reforms
(c) Punjab
(d)Assam Q56.
ICI is the name associated with
Q49. (a)a MNC which manufactures chemicals
In the budget figures of the Government of India interest (b)Indian Cement Industry
payments subsidies pensions social services and the like (c)Chamber of Commerce and Industry
are parts of the (d)a private sector bank
(a) Plan Expenditure
(b) State Government Expenditure: Q57.
(c) Public Debt in the form of Capital Expenditure With the inclusion of Shipping Corporation of India
(d) Non-plan Expenditure recently in the list of Navratna PSEs their number now
stands at
Q50. (a)15
Who coined the term Hindu rate of growth for Indian (b) 16
economy? (c)17
(a)A.K. Sen (d) 18
(b) Kirit S. Parikh
(c) Raj Krishna Q58.
(d) Montek Singh Ahluwalia Nextzone an information technology SEZ is being
established at
Q51. (a) Panki in Uttar Pradesh
Which of the following Indian banks became the first to (b)Panvel in Maharashtra
touch a market capitalisation of Rs.100000 Crore in (c)Bangalore in Karnataka
India ? (d) Secunderabad in Andhra Pradesh
(a) ICICI
(b) HDFC Q59.
(c) SBI When was the Jawahar Rozgar Yojna launched ?

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(a)1985 Q67.
(b)1987 The Planning Commission of India was constituted in the
(c)1989 year
(d)1991 (a)1942
(b)1947
Q60. (c)1950
Reserve Bank of India was nationalised in (d)1955
(a)1947
(b)1948 Q68.
(c)1949 Which plan gave emphasis on removal of poverty for
(d)1951 the first time ?
(a)Fourth
Q61. (b)Fifth
Which is not the objective of Public Procurement and (c) Sixth
Distribution system followed by Indian Government ? (d) Seventh
(a)Maintain price stability through creation of buffer
stocks Q69.
(b) Protect the interests of both consumers and poor EXIM Policy 2002-07 has set a target to achieve a share
farmers in the global trade by 2007 at
(c) Control the production of food grains (a)0.5 per cent
(d)Reduce personal and regional inequality in the (b)1.0 percent
distribution (c)1.5 per cent
(d)2.0 per cent
Q62.
Where is the Indian Institute of Foreign Trade Located ? Q70.
(a)New Delhi Where is the biggest private sector power project in
(b)Hyderabad India located?
(c)Mumbai (a) Rajahmundry in Andhra Pardesh
(d)Ahmedabad (b) Neyveli in Tamil Nadu
(c)Korba in Madhya Pradesh
Q63. (d)Dabhol in Maharashtra
The Centre for Agricultural Marketing is located at
(a) Jaipur Q71.
(b) New Delhi What is the "Gram Samridhi Yojana" in replacement of
(c) Nagpur (a) Indra Awas Yojana
(d) Hyderabad (b) Jawahar Rozgar Yojana
(c) Prime Ministers Employment Scheme.
Q64. (d)I.R.D.P
Per capita income is obtained by dividing National
Income by Q72.
(a)Total population of the country The largest share of India’s national income originates in
(b)Total working population the
(c)Area of the country (a)Primary sector
(d)Volume of capital used (b)Secondary sector
(c)Tertiary sector
Q65. (d)Any of the above
Token privatisation or deficit privatisation of public
sector units occur when the government sells Q73.
(a)5% of shares Among the tax revenues of the Union Government what
(b)10% of shares is the largest source?
(c)15 % of shares (a)Income Tax
(d)20% of shares (b)Corporation Tax
(c)Central Excise
Q66. (d)Customs Duty
The Narasimhan Committee (1991) on financial reforms
proposed for establishment of a Q74.
(a) Four tier hierarchy of the Banking structure In which sector of the Indian economy is productivity
(b) Three tier hierarchy of the Banking structure the highest
(c) Two tier hierarchy of the Banking structure (a) Manufacturing
(d) Unified control by the apex institutions (b) Transport Communication and Commerce
(c) Agriculture

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(d) Other sectors (d)1979

Q75. Q83.
To achieve economic self-reliance was the main Fiscal policy is concerned with
objective of which Five Year Plan? (a) Public revenue
(a)First Five Year Plan (b) Public expenditure and debt
(b)Second Five Year Plan (c) Bank rate policy
(c)Third Five Year Plan (d) Both
(d)Fourth Five Year Plan
Q84.
Q76. Which of the following is the largest employer in India?
The preparation of National Income Estimates is the (a)Food Corporation of India
responsibility of the (b)Posts and Telegraphs Department
(a) Planning Commission (c)Indian Railways
(b) National Development Council (d)Steel Authority of India
(c)National Sample Survey Organisation
(d)Central Statistical Organisation Q85.
The main objective of Antyodaya Programme is
Q77. (a) upliftment of urban poor
Commercial banking system in India is (b)upliftment of industrial workers
(a)mixed banking (c)unpliftment of rural poor
(b)unit banking (d)upliftment of farmers
(c)branch banking
(d)None of these Q86.
The Reserve Bank of India issues currency notes under
Q78. (a) fixed fiduciary system
The gift edged market in the capital market of India (b)maximum fiduciary system
refers to (c)minimum reserve system
(a)long-term private securities (d)proportional reserve system
(b)market dealing in existing securities.
(c)market for corporate securities Q87.
(d)market for Government securities The finance al capital of India is
(a) Mumbai
Q79. (b) Chennai
Which of the following yields the largest revenue to the (c) Delhi
Government of India? (d) Chandigarh
(a)Sales tax
(b)Excise duty Q88.
(c)Income tax Chairman of the Eleventh Finance Commission was
(d)Entertainment tax (a)A.M. Khusro
(b)Vljay Kelkar
Q80. (c)Deepak Parekh
The credit control operation in India is performed by (d)Manmohan Singh
(a)Rural banks
(b)Commercial banks Q89.
(c)Reserve Bank of India India adopted the Five Year Plans from
(d)State Bank of India (a) France
(b) former USSR
Q81. (c) America
NABARD is the name of a (d) England
(a)Commercial bank
(b)Financial Institution Q90.
(c) Specialised bank to help agriculture In Centre State financial relations in India Gadgil
(d) Non-Banking Financial Institution Formula is used in
(a)division of tax revenue
Q82. (b)formulating the policy for fresh borrowings
Banks in India were nationalized for the first time in the (c)writing off States indebtedness to the Centre
year (d)allocating Central Plan assistance between States
(a)1950
(b)1960 Q91.
(c) 1969 The concept of mixed economy means

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(a)to have balanced development in the agricultural and (b) ICICI Bank
industrial sector (c)Corporation Bank
(b)simultaneous development of the rural and urban (d)Citibank
sector
(c)to have equal distribution of wealth among the rural Q99.
and the urban poor Which from the following is not a Navaratna PSU ?
(d)simultaneous existence of the private and public (a) SAIL
sector (b) LIC
(c) IOC
Q92. (d) ONGC
Canalised list of items in foreign trade of India refers to
(a)the items to be imported by the private agencies Q100.
(b)list of items to be subsidized Which amidst the following is a PSU ?
(c)list of items to be granted duty concession (a)Bank of Rajasthan
(d)items to be imported only by the State owned (b)Bank of lndia
undertaking (c)Bank of Punjab
(d)Karnataka Bank
Q93.
Which one of the following is not an industrial finance ANSWERS :
institution? 1d 2c 3c
(a) UTI 4d 5c 6a
(b) ICICI 7c 8c 9c
(c) NABARD
10 a 11 b 12 d
(d) SFCs
13 c 14 c 15 a
Q94. 16 d 17 c 18 c
Which Indian private sector company has the largest 19 c 20 a 21 b
sales turnover? 22 b 23 b 24 c
(a)Tata Sons 25 c 26 c 27 a
(b)Reliance Industries 28 b 29 b 30 d
(c)ITC Ltd.
31 d 32 c 33 d
(d)Hindustan Lever Ltd.
34 d 35 b 36 c
Q95. 37 b 38 d 39 a
The first state owned company from India to be listed on 40 a 41 b 42 c
the New York Stock Exchange is 43 d 44 d 45 b
(a) Videsh Sanchar Nigam Ltd. 46 d 47 b 48 b
(b)Mahanagar Telephone Nigam Ltd.
49 d 50 c 51 c
(c)Tata Iron and Steel Company
(d)Wipro 52 a 53 d 54 a
55 d 56 a 57 b
Q96. 58 b 59 c 60 c
The largest source of revenue to the Union Government 61 c 62 a 63 a
is 64 a 65 a 66 a
(a)Income Tax 67 c 68 b 69 b
(b)Central Excise Duty
70 a 71 b 72 c
(c)Customs Duty
(d)Wealth Tax 73 b 74 a 75 d
76 d 77 c 78 b
Q97. 79 b 80 c 81 c
Which of the following is the specialty designed scheme 82 c 83 d 84 c
for the welfare of the Indian women introduced recently 85 c 86 c 87 a
by General Insurance? 88 a 89 b 90 a
(a) Rajeshwari
91 d 92 d 93 c
(b) Bhagya Rajeshwari
(c)Bhagya shree 94 b 95 a 96 b
(d)Raja Lakshmi 97 a 98 c 99 b
100 b
Q98.
Which amidst the following is a PSU?
(a) Bank of Rajasthan

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