SAMPLE PAPER 1 Time Allowed: 90 minutes Max. Marks: 40 GENERAL INSTRUCTIONS: 1. There are a total 60 questions in this paper out of which 50 questions are to be attempted. 2. This paper is divided into three Sections: a. Section A — Contains 24 questions. Attempt any 20 questions. b. Section B — Contains 24 questions. Attempt any 20 questions. c. Section C = Contains 12 questions. Attempt any 10 questions. 3. All questions carry equal marks. 4. There is no negative marking. SECTION A (20 questions out of 24 questions are to be attempted) 1. The government policies of surplus budget during inflation and deficit budget during deflation helps to (Fill up the blank with correct alternative) (a) Maintain equalities in distribution of wealth. (b) Maintain economic growth. (©) Maintain stability of price in economy. (d) Maintain resource allocation. 2. Balance of Payments of an economy records for a fiscal year. (Fill up the blank with correct alternative) (a) Visible items, invisible items, unrequired transfer and capital transfer (b) Only visible and invisible items transcation (c) Unilateral transfer (d) Capital and unilateral transfer 3. Identify which of the following is not an example ‘visible item’ under current account of the balance of payments transactions? (Choose the correct alternative) (a) Postal and courier services (b) Oil and machinery (c) Selling of clothes (d) Merchandise transactiones not accept chequeable deposits from (Choose the correct alternative) public. (a) SBI (b) Axis (©) LIC (d) ICICr Read the following statements carefully 4. Identify which of the following banks do and choose the correct alternative from the following: j : Statement 1 - The government has strengthen the unified payment interface (UP]) by NPCI, to secure digital payments as compared to past. Statement 2- With this payment, system has been made more accessible due to offline transaction, which it makes it possible to use mobile banking services without internet to promote financial inclusion and to empower the poor and unbanked in the country. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false. Mr. Parag Gupta, an economics teacher, was explaining the concept of ‘centralisation of foreign exchange transaction with RBI helps in stabilizing the external value of currency’. From the following, choose the correct alternative which specifies the correct function of RBI explained by him? (a) Currency authority (©) Banker to the government (d) Moral suasion 7. Two friends Om and Aryan were discussing the exchange rate market. “Under this market, a two days margin is allowed as it takes two days for payments made through cheques to be cleared’. The above-mentioned statement was given by Om, identify the type of exchange rate market was he talking about? (a) Spot forward (hybrid) market (b) Forward market (c) Hedging market (d) Spot market 8. Read the following statements carefully and choose the correct alternative from the following: Statement 1 ~ Non-tax revenue receipts includes gifts which are generally received during national crisis such as war, flood etc. Statement 2 ~ Gifts are a fixed sources of non-tax revenue of the government. (b) Custodian of foreign exchange reserves Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.Fn cineca ee la a a allen ama mua tr poeta aera nena a A cae 9. 10. 1. 12. 13. 14, Balance of payments accounting uses double entry system in which __ are recorded on the credit side and on the debit side. (Fill up the blank with correct alternative) . Inflows of foreign exchange ii, One way transaction iii, Outflows of foreign exchange iv. Accommodating transaction Identify the correct alternatives from the following: Alternatives: (a) iand ii (b) i and iii (©) iii and iv (d) iv and i Identify which of the following is a correct function of central bank? (Choose the correct alternative) (a) Accepting deposits of public (b) Agency functions (©) General utility functions (a) Lenders of the last resort Under___five years plan, human capital assigned a key role in the country’s development strategy. (Fill up the blank with correct alternative) (a) First (b) Seventh (c) Fourth (d) Sixth Life expectancy refers to ie (Fill in the blank with correct alternative) (a) average number of years for which people are expected to live (b) average number of years for which people are expected to die (©) life experiences of people (d) number of people dying before reaching 50 years of age refers to sufficient amount of food grains to build a stock which could be used in times of food shortages. (Fill in the blank with correct alternative) (a) Trade Surplus (b) Marketable Surplus (©) Bufferstock of food grains (d) Food stock for crisis Read the following statements carefully and choose the correct alternatives given below: Statement 1 - From 1973-74 to 2011-12, there has been a considerable rise in the number of poor and their proportion. Statement 2 ~ In 1973-74 more than 80% of the poor resided in urban areas, and this situation has not changed even in 2011-12. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.15, Read the f below: Statement 1 = With the | ct investment pol increased from a! (a) Both the statements ollowing statements care! launch of Make in India licy was furthe: ent 2 — The foreign inv bout US $100 million in fully and choose the correct alternatives given tiative in September 2014, foreign liberalised. estment (FDI and foreign institutional investment) 1990-91 to US $73.5 billion in 2014-15, are true, (b) Both the statements are false (c) Statement 1 is true (d) Statement 2 is true anc 16. Due to green consumption which benefit to ___- (a) The richer section (©) Low income groups 17, From the following given sets of state pair of statements. Column I revolution prices of food g} and Statement 2 is false. atement 1 is false. rains declined relative to other items of (Fill in the blank with correct alternative) (b) High income groups (d) The government ments in column I and II, choose the correct Column II 7 A. Balance of trade i. Includes visible items as well as invisible items | |B. Current account ii. Net income generated in the foreign sector |G. Unilateral transfer iii, Requited transfers to and from abroad 1D. Foreign direct Investments iv. Foreign Institutional Investment Alternatives: (a) Ai (©) Ciii 18. Self help groups has emerged as (b) Bil (d) Div programme to promote thrift in small proportions by a minimum contribution from each member. (a) Major finance (©) Institutional finance (Fill in the blank with correct alternative) (b) Marginal finance (d) Micro finance 19, The Government of India spent % 4.85 crore on Neeraj Chopra for his training. This will be categorized as (a) revenue nature income (Fill in the blank with correct alternative) (b) capital nature expenditure (c) revenue nature expenditure (d) capital nature income 20. is one of the characteristic of people living in poverty. (a) Political inclusion () High expenditure pattern (Fill in the blank with correct alternative) (b) Affluent lifestyle (a) No gender disparityhie ic 21 24. 25. . ‘Since independence: is jed that In a hypothetical economy, the initial deposits is of & 2000 crores. If it is natured ‘i there is no other currency circulation in economy, providing, that LRR is 1 total money supply in the economy will be a (Fill up the blank with correct alternative) (a) © 20000 crore (b) & 2000 crore (c) © 200000 crore (d) & 100000 crore fe expectancy witnessed a continuous rise’. Identify which of the following may be the reason for rise in life expectancy. : (Choose the correct alternative) (a) Social isolation (b) Widespre (©) Improvement in health facilities over the (a) Inadequate health facilities \d poverty ars; . Read the following statements carefully and choose the correct alternatives given below: Statement 1 - Till 1990, there was witnessing disguised unemployment in the agriculture sector because industrial and service sector were unable to absorb the extra, Statement 2~ As a results, the new economic policy 1991 has promoted the agricultural sector compared to industry, trade and service sector. Alternatives: (2) Both the statements are true. (b) Both the statements are false. (©) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. is one of the correct demographic condition of Indians during the colonial (Fill up the blank with correct alternative) (a) Adequate health facilities (b) High birth and death rate (©) Low infant mortality rate rule. (d) High life expectancy SECTION B 20 questions out of 24 questions are to be attempted) Read the following statements - Assertion (A) and Reason (R): Assertion (A): Charity to USA will be recorded in the debit side of the current account of BOP account. Reason (R): It leads to outflow of foreign exchange from the domestic economy. From the given alternatives choose the correct one: Alternatives: (2) Both Assertion (A) and Reason of Assertion (A). (b) Both Assertion (A) and Reason explanation of Assertion (A). (R) are true and Reason (R) is the correct explanation (R) are true and Reason (R) is not the correct26. 27. 29. (0) Assertion (A) is true but Reason (R) is false. (a) Assertion (A) is false but Reason (R) is true. ‘uppose in an economy, the initial deposits of % 2000 crores lead to the creation of total deposits worth & 10000 crores. ation the value of reserve requirements would be tak (Fill up the blank with correct alternative) (a) 05 (b) 0.21 (©) 0.20 (a) 1/02 Read the following statements ~ Assertion (A) and Reason (R): Under the given situ [Assertion (A): The ‘land reform’ measures and green revolution were the greatest achievements of the indian government in enhancing the agricultural production and productivity. Reason (R): The proportion of GDP between 1950 to 1990 contributed by agriculture declined significantly. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (©) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. . Identify the incorrect statement from the following: (Choose the correct alternative) (a) Dairying is the process of producing, storing and distributing milk and its products (b) Due to successful implementation of White revolution, India ranks first in the world milk production. (©) Operation Flood was started by National Dairy Development Board in 1970. (d) Bihar is held as a success story in the efficient implementation of milk cooperatives. Read the following statements - Assertion (A) and Reason (R): Assertion (A): Human development considers education and health as a means to increase labour productivity. Reason (R): According to human development perspective, every individual has a right to be literate and lead a healthy life. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.oe... widen 30. From the set of statements given in Column I (Name of the Scheme) and Column I (Objective of Poverty Alleviation Program), choose the correct pair of statements: Column 1 © Column 1 (Name of the Scheme) { Poverty Alleviation Program) i, Aimsatcreating selfemployment opportunities _for rural people A. National Food for Work Progra [1B Pradhan Mantri Garib Kalyan Yojna | i. Provide free heath facilities to poorest to fight | $$ —_§— | covid battle Et Pradhan’ Mantri Jan-dhan Yona: iii, Aims to expand affordable access to financial | services such as bank a/c remittances, credit | insurance and pension | D. Indira Awaas Yojna (rural housing) | iv. Housing program operated with the aim of providing facilitating houses to homeless poor i during the covid crisis | Alternatives: (a) Ad (b) B-ii (©) Citi (d) D-iv 31. sas} A tas nc 23 1 Pre-pandemic Projection 100+" *Post-pandemic Estimate | 18. 50. 25: High Upper Middle. «== Low Poor Income middie income income The term post-pandemic refers to the period since the onset of the pandemic in January 2020. The chart shows the estimated number of people in each income tier in 2020 before and after the Covid 19 induced global recession. Figure showing estimated number of poor in each income tier, before and after Covid 19. On the basis of the given bar diagram, the number of poor in India is estimated to have and low income people is estimated to have due to Covid-19 induced recession. (a) increased, increased (b) increased, decreased (c) decreased, increased (d) decreased, decreasedSORIA RRR Eb ile a Runa eS aes 32. 33. For visually challenged candidates: Identify which of the following statements given below, is true, regarding the poor people? (a) High gender inequality (b) Unlimited economic opportunities (©) Work in formal sector (a) Too much dependency on private health facilities Educational levels in Ind 191 Heads Numbers | Per cent | Literates as % of (Million) | of total | total population | literates | excluding the | oa) 1. Literates with educational level | 100.0 47.8 (a) Primary 28.7 150 () Middle 20.9 109 (© Matriculation or higher secondary and | 194 101 diploma not equal to degree (@) Graduate and above 206 | 57 30 | 2. Literates without educational level 946 25.2 1B Total | 453.9 25.2 60.8 | On the basis of the above-mentioned information answer the following question: The indian education pyramid is steep indicating __ reaching higher education. (Fill up the blank with correct alternative) (a) Comparatively high (b) Almost all (©) Relatively more (d) Lesser and Lesser number of people Read the following statements - Assertion (A) and Reason (R): Assertion (A): The idea behind abolition of intermediaries was that ownership of land would give incentives to the actual tillers to make improvements. Reason (R): Land reforms were successful in Kerala and West Bengal because government of these States were committed to the policy of land reforms. From the given alternatives choose the correct one: Alternatives: (2) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.34 36. 37. Read the following statements carefully and choose the correct alternatives given below: Statement 1 - NABARD facilitates rural prosperity by refinancing and promoting institutional development, Statement 2 - NABARD is intended to create income generating, assets in agriculture and allied activities. Alternative: (a) Both the statements are true (b) Both the statements are false. () Statement 1 is true and Statement 2 is false (d) Statement 2 is true and Statement 1 is false, . Read the following statements carefully and choose the correct alternatives given below: Statement 1 - Money creation by commercial bank raises the national income. Statement 2 - Higher the value of LRR, higher the value of money multiplier and more the money is created by the banking system resulting in the subsequent rise in the national income. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. Arrange the following event in the correct chronological order: (Choose the correct arrangements) i. Opening of Suez canal. ii. First official Census Introduction of first airline in India. iv. Foundation of British empire (battle of Plassey) ii Alternatives: (a) iv, ii, i, iti (b) i, iv, iii, ii (c) ii, iii, iv, i (d) iii, iv, ii, i Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given below: Assertion (A): Unfavourable balance of trade can be met out of favourable balance of payments. Reason (R); Autonomous transactions are compensating capital transactions which are meant to correct disequilibrium in all item of balance of payments. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).eee eee 38. 39. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (a) Assertion (A) is false but Reason (R) is true, Demand Deposits of commercial banks include only and excluded. (Fill up the blank with correct alternative) i, Saving account deposits . Net demand deposits iii, Inter-bank Deposits ‘ash reserves with bank iv. Alternatives (a) iand ii (b) ii and iii (©) iand iii (d) i and iv Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given below: Assertion (A): After the economic reforms of 1991, the growth rate of agriculture sector decelerated to 3% p.a. during 1991-2012. Reason (R): The new economic policy has neglected the agricultural sector as compared to industry, trade and service sector. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) (0) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. . Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given below: Assertion (A): Diversification of productive activities provide alternative avenues of sustainable, livelihood and would raise the land of income of poor farmers. Reason (R): Diversification into carrying, poultry, fisheries, vegetables and fruits will make rural areas more vibrant and provide supplementary gainfull employment. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.a Read the following correct alternatives tatements - Assertion (A) and Reason (R), choose one of the n below: Assertion (A): Consumers and business park much of their funds in demand deposits in order to pay for their ongoing, daily expenses. Reason (R): Demand Deposits are advantageous due to their liquidity ease of access. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) (©) Assertion (A) is true but Reason (R) is false, (a) Assertion (A) is false but Reason (R) is true . Choose the correct alternatives relating to the adverse living standards of Indian during British rule to be filled in given blanks B and C. Population explosion Low, unstable, inadequate yield 1 D (a) High illiteracy, indebtness (b) Fragmentation of landholding, Indebtness & poverty (©) Low economic development, Fragmentation of landholding (d) High subsidies, distress among farmers For visually challenged candidates: Read the following statements and choose the correct alternative from the following Statement 1: Absolute poverty refers to the total number of people living above poverty line. Statement 2: Relative poverty refers to rich section of people in comparison to poor people, poor nations. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.43. Mr. Ramesh has two children, he spends on education of both the childs their skills, abilities, expertise and one’s personality. It exhibits the 1 direction of human capital formation. Spot which of the following does not directly contributes to the capital formation by Mr. Ramesh: (a) Inoculates diverse skills (b) Improves efficiency {c) Stimulates innovation (d) Low earning capacity on People 44, Suppose that the Balance of Trade (BOT) of a nation, exhibits a d crores. The import of visible items are five time of the exports of vi rest of the world. en to devel, ight step in th, Process of human leficit of 2 50, 09 sible items to the The value of exports would be 2 crores. (Fill up the blank with correct alternative) (a) 20,000 (b) 10,000 (©) 12,500 (d) 20,300 45, Read the following statements carefully and choose the correct alternatives given below: Statement 1 - Poverty Alleviation Programmes initiated by highly acclaimed. Statement 2 ~ High growth rate alone is insufficient to reduce poverty. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (©) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false. 46. Read the following statements - Assertion (A) and Reason (R), correct alternatives given below: the government were choose one of the Assertion (A): A deficit in the current account must be settled by a surplus on the capital account. Reason (R): Current account deficit is settled by capital inflow from abroad like foreign exchange reserves or borrowings from IME. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) explanation of Assertion (A) (©) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. 47. Identify the incorrect statement from the following: (Choose the correct alternative) (2) Colonial government enforced discriminatory tariff policy, which allowed free export of raw materials from India and free import of final goods of British industry to India. (R) is the correct explanation is not the correct- BRP Dies Selo Sa as ote aeons ait arama Aig ell Para a (b) Indian agricultural sector did not suffer due to partition, (©) During British rule, India inherited the features of both feudal and capitalist system in the indian economy, (d) At the time of independence, ‘amputed economy’, 4g. Match the situations given in Column I with their respective implications given in eae (Choose the correct alternative) [Chap ee | » indian economy was a ‘depleted economy and is the main objective. iv. Human we =} bee (b) A-iii; Beiv; C-i; D-ii eae eo ailnDaly (d) A-ii; Beiv, C-i; D+ SECTION C (10 questions out of 12 questions are to be attempted) Q. No. 49 - 54 are to be answered on the basis of the following data: Budget at a glance (in @ Crores) cE 2017-2018 2018-2019 Actuals Budget ie - Estimates 1. Revenue receipts 14,35,233 17,25,738 |2, Tax revenue (net to centre) | 12,42,488 14,830,649 3, Non-tax revenue 192,745 2,45,089 4, Capital receipts 7,06,742 716,475 5, Recovery of loans 15,633 12,199 6, Other receipts 1,00,045 80,000 7. Borrowings and other liabilities 591,064 624,276 8, Total receipts (1+4) 21,41,975. 24,42,213 9, Total expenditure (10+13) 2 21,41,975 24,42,213 10. On revenue account of which 18,78,835 211,772 11. Interest payments 5,28,952 5,75,795 12, Grants in aid for creation of capital assets 1,91,034 195,345 13, On capital account 2,63,140 3,00/441 Source: indiabudget.gov.incrores between 2017-18 (Actuals) and (Fill up the blank with correct alternatiy,, (b) Risen by % 3434 (d) Risen by % 4343 n the Non-Tax Revenue, between 2017-18 (Actual) and 2915, as base, would be . (Fill up the blank with correct alternative) (d) 27.15% non-tax revenue: (Choose the correct alternative) (d) Special Tax 49, The value of recovery of loans has 2018-19, (Budgeted Estimate). (a) Fallen by © 4343 (©) Fallen by © 3434 The percentage change i 19 (Budgeted Estimate), taking the 2017-18 5 = (a) 27.89% (b) 271.5% (0) 24.64% $1. Identify which of the following is not an example of (b) Customs (c) Eschert otal borrowings penditure - Non-debt creating receipts) (a) Fe Identify the correct formula of t (a) Revenue deficit + ( Capital ex] (b) Primary deficit ~ Interest payments (c) Total expenditure ~ Total receipts inclu (d) Total expenditure ~ Revenue Receipt 52. S ding, borrowings 53, Read the following statements carefully and choose the correct alternatives given below: Statement 1 - Fiscal Statement 2 - Revenue deficit of 2017-18 tends to be higher than 2018-19’s annual revenue deficit. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. | deficit of 2017-18 is more than 2018-19's annual fiscal deficit. 54, The value of Primary Deficit for the year 2017-18, would be = crores. (Fill up the blank with correct alternative) (a) 62112 (b) 626112.4 (c) 48481 (d) 609219 Q. No. 55 - 60 are to be answered on the basis of the following data: The economic liberalisation process in 1991 was triggered by an economic crisis (when government finances were strained, BOP crisis) that confronted our nation then, but it was not limited to crisis management. The edifice of India’s economic reforms was built on the desire to prosper, the belief in our capabilities, and the confidence to relinquish control of the economy by the government. The measures included devaluing the rupee, a new industrial policy which sharply reduced bureaucratic control, raising foreign direct investment limits in a number of sectors, cutting red tape and paving the way for privatisation of state-owned entities, to ensure ameliorate performance of PSUs. The thrust of the New Economic Policy has been towards creating a more competitive environment by encouraging foreign investment too through trade and investment policy reforms in the economy as a means to improving= the productivity and efficiency barriers to entry and the Liberalisation Of the system. This was to be achieved by removing the restrictions on th nrowth of firme, Liberalisation refers to the slackening in India denotes the continuing finan. Privatisation and Globalisation Privatisation refers to the participation of private entities in businesses and services and transfer of ownership from the public sector (or government) to the private sector as well. Globalisation stands for the consolid, Of government regulations, The economic liberalisation \clal reforms which began since July 24, 1991. lation of the various economies of the world. Liberalization involves and greater autonomy of private investment. (a) Greater control of government (b) Regulating reform (©) Deregulation and reduction of government control (a) Licensing reforms 56. 57. Read the following statements carefully and choose the correct alternatives given below: Statement 1 - economy. Statement 2 ~ Under liberalization multinational corporation were also encouraged to invest and expand in India. Alternatives: {a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false. Read the following statements - Assertion (A) and Reason (R): Assertion (A): The new economic reforms include cutting red tapism paving the way for privatization of state owned entities. iberalization was introduced to induce more competition into the Reason (R): Privatization will improve financial discipline and facilitates modernization will improve the performance of PSUS. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (0) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.BA. In the light of the given text and common knowledge, identify the ince statement: Orrect (a) Under industrial sector reforms public sector's role was substantially reduced » MRT? act was introduced ids (b) Liberalization involves transcending economic social and geographical boundarie (©) The main aim of policy was to create a more competitive environment in the econ, and remove the barriers to entry and growth of firms ee) (a) Rupee was devalued against foreign currencies to increase the inflow of fore exchange. i 59. Read the following statements carefully and choose the correct alternatives Biv below: en Statement 1 - Reduction in bureaucratic control will provide ease in privatization Statement 2 - The practical reason for privatization is that the government finance, are strained and it looks to augment its resources by government assets, - Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 60. Read the following statements - Assertion (A) and Reason (R): Assertion (A): The NEP involves drastic steps such as deindustri; foreign exchange rate, PSU privatization, delicensing and so on. Reason (R): LPG were introduced to create conducive climate for public sector to usher growth. From the given alternatives choose the correct one: ation, changes to Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.SAMPLE PAPER 2 Time Allowed: 90 minutes Max. Marks: 40 GENERAL I STRUCTIONS: 1. There are a total 60 questions in this paper out of which 50 questions are to be attempted. 2. This paper is divided into three Sections: a, Section A ~ Contains 24 questions. Atte b. Section B- Contains 24 questions, Attempt any 20 questions. ‘on C — Contains 12 questions. Attempt any 10 questions. empt any 20 questions. oc. Sectit 3. All questions carry equal marks. 4. There is no negative marking. es SECTION A (20 questions out of 24 questions are to be attempted) e its budget objective of ‘reducing regional disparities’ 1. The government can achiev: (Fill up the blank with correct alternative) by : (a) Increasing monopolic control. (b) Reducing debt trap. () Promoting social welfare. (a) Providing subsidies for setting up industries in backward areas. 2, Balance of Payments does not include economic transactions between __and rest of the world, in a given period of time. (Fill up the blank with correct alternative) (a) Diplomatic staff of foreign country in India (b) Branches of foreign company in India (©) Tourists (d) All of these 3. The Reserve Bank of India is empowered to in the economy through its monetary policy? (Choose the correct alternative) (@) Maintain reserves (b) Regulate the money supply (0) Issue currency and all coins (a) Supervise all bankRees 4. Identify which of the following is not an example of capital account transaction. (Choose the correct alternative) (a) Payment due as interest on loans (b) Indian party making investment in equity shares (c) Acquisition of immovable property outside India (d) Repayment of loans 5. Read the following statements carefully and choose the correct alternative from the following: Statement 1 — Introduction of money provided the bases for credit creation by commercial banks. Statement 2 ~ Money has encourage expenditure by people which results in more economic transactions and increases the credit creation capacity of a nation. Alternatives: (a) Both the statements are true. (©) Both the statements are false. () Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 6. Mr. Shaktikanta Das, the governor of RBI, reduced the repo rate to 4.4% in the time of Covid-19. From the following, choose the correct alternative which indicates the implication of above taken step. (2) Decrease in money supply in economy (©) Increase in money supply in economy (©) Reduces demand for borrowings (a) Encourages commercial bank to deposits their fund with RBI. 7. Hema and Rekha were discussing about their projects on foreign exchange rate system. Under this system authorities can and do intervene, the arrangement provides a way to mix market determined rates with stabilizing intervention in a non-rule based system. The above mentioned statement was given by Rekha, identify the type of exchange rate system was she talking about? (a) Fixed exchange rate system (b) Floating exchange rate system (©) Managed floating exchange rate (a) Managed fixed exchange rate 8, Read the following statements carefully and choose the correct alternative from the following: Statement 1 - Allocation of resources can be influenced in the government budget through taxes, expenditure and subsidies. Statement 2 - Through the budgetary policy, government aims to reallocate resources in order to only maximize profit.er ee Alternatives: {o) Both the statements are true {b) Both the statements are false (c) Statement 1 is true and Statement 2 is false: (d) Statement 2 is true and Statement 1 is false. 9, Under current account of BOP. are also included, (Fill up the blank with correct alternative, (a) Balance of trade (b) Capital receipts (c) Capital payments (d) Requited transfers 10. Identify which of the following is an incorrect function of commercial bank? (Choose the correct alternative) (a) Deals directly with public (b) Accept public deposits (©) Leads to uniformity in note circulation (d) Advance loans to public 11. According to Industrial Policy Resolution 1956 under Schedule B Were placed which would be progressively state owned. (Fill up the blank with correct alternative) (a) 3industries _(b) 17 industries (c) 18 industries _(d) 12 industries 12. Colonialism refers to of which one is ruler and other is its colony. (Fill in the blank with correct alternative) (a) Progressive relations between two nations (b) Political and social relations between two countries (c) Economic relations between two countries (d) Equal relation between two countries 13. is one in which the means of production are owned, controlled and operated by the private sector. (Fill in the blank with correct alternative) (a) Socialist economy (b) Hybrid economy (c) Capitalist economy (d) Mixed economy 14. Read the following statements carefully and choose the correct alternatives given below: Statement 1 — Monthly per capita expenditure considers social factor that generate and are responsible for poverty. Statement 2 - ‘Monthly per capital income expenditure’ MPFC method groups all the Poor together and does not differentiate between the poor and the other poor. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.read Se at laa a ta tas Bone peer eteet aren anes ter penne Rs i Read the following statements carefully and choose the correct alternatives given 15. below: Statement 1 ~ India has a fair international worthiness and credibility which makes ita favourable outsourcing destination, Statement 2 ~ MNCs get various types of lucrative offers from the indian government like tax holidays, low taxes rates, etc, Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 46, _____—fefers to high yielding varities (HYV) of seeds which raised agricultural yield per acre to incredible heights. (Fill in the blank with correct alternative) (a) Miracle seeds (b) Relible seeds (oc) Organic seeds (d) Unorganic seeds 47. From the following given sets of statements in column I and Il, choose the correct pair of statements. Column I Column II ‘A. Surplus in BOP i. When accommodating receipts are more than accommodating payments B. Deficit in BOP ii, When autonomous paymentsare less than autonomous | payments C. Current account surplus iii. When debit items are more than credit items D. Current account deficit iv. Signifies nation is a lender to the rest of the world Alternatives: (a) A (b) (0) Ciii (a) D-iv 18. is a process that involves assembling, storage, processing, transportation, packaging, grading and distribution different agricultural commodities across the country. (Fill in the blank with correct alternative) (a) Agriculture diversification (b) Co-operative marketing (c) Agricultural marketing (a) Organic farming 19, In the 2020-21 annual budget, the government of India allocated 46.73 crore to sport departments for construction of facilities/new stadia, etc. (Fill in the blank with correct alternative) (a) Revenue nature income (b) Capital nature expenditure (©) Revenue nature expenditure (d) Capital nature incomeeS 20. ___.. is not a reason for poverty in India. (Fill in the blank with correct alternatiy,, (a) Steep and continuous rise in price (b) High unemployment (©) Deflation (d) Primitive methods of production 21. In a hypothetical economy, money supply is € 1000.00 crore, there is no other currenc, circulating in the economy other than bank deposits, providing the value of mon multiplier 4.00, find the initial deposits in bank, (Fill up the blank with correct alternative) (a) © 400000 crore (b) 2 25 crore (©) © 25000 crore (d) % 250 crore 22. ‘During British rule death rate was very high in India’. Identify which of the followin may not be the reason for high death rate. (Choose the correct alternative, (a) No clean & safe drinking water (b) Extremely low literacy rate (©) Poverty and malnutrition (d) Healthy Inadequate health facilities Read the following statements carefully and choose the correct alternatives given below: Statement 1 - big firms. 8 Government took various steps to protect small scale industries from Statement 2 ~ Government provide tax concession to small scale industries and also reserved production of certain goods. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 24. At the end of British rule, backwardness in indian economy was due to S (Fill up the blank with correct alternative) (a) Modern method of agriculture (b) Industrialization (©) Low per capita income (d) Low birth and death rate SECTION B (20 questions out of 24 questions are to be attempted) 25. Read the following statements - Assertion (A) and Reason (R): Assertion (A): Acquisition of INTEL CORPORATION by TATA will be recorded on the debit side of BOP account. Reason (R): It leads to outflow of foreign exchange from the domestic country. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).a 26. mw 28. 29. (by) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) ertion (A) is true but Reason (R) is false, ertion (A) is false but Reason (R) is true. Suppose in an economy, the total money created through initial deposits of % 200 crore Is € 800,00 crore Under the given situation the value of reserve requirements would be } (Fill up the blank with correct alternative) (a) 0.025 (b) 0.250 (c) 10/4 (d) A% Read the following statements - Ausertion (A) and Reason (R): assertion (A): The proportion of GDP contributed by the industrial sector declined in the period from 24.6% in 1950-51 to 11.8% in 1990-91, Reason (R): The industrial sector become well diversified by 1990 argely due to public sector. From the given alternatives choose the correct one: Alternative: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation ‘of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. Identify the incorrect statement from the following: (Choose the correct alternative) (a) Horticulture has improved economic condition of many farmers in India. (b) Horticulture has emerged as a sustainable livelihood option and needs to be encouraged significantly. (©) Horticulture sector contributes 6% in GDP of India. (d) In horticulture there is low scope for women employment. Read the following statements - Assertion (A) and Reason (R): Assertion (A): It is essential for the government to regulate the fee structure in education and healthcare institutions. Reason (R): The providers of education and health services may acquire monopoly power and may get involved in exploitation and charge excessive fee. From the Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). en alternatives choose the correct one:Se es (©) Assertion (A) is true but Reason (R) is false (d) Assertion (A) is false but Reason (R) is true, 30, From the set of statements given in Column I (Name of the Scheme) and Column, (Objective of Poverty Alleviation Program), choose the correct pair of statements, Column 1 Column I :. (Name of the Scheme) (Objective of Poverty Alleviation Program) A. Pradhan Mantri Gram Sadak Yojana i, Improve the quality of life of people livin, in rural areas B. Pradhan Mantri Jan-dhan Yojna ii, To facilitate financial exclusion of peop, in banking system C. Valmiki Ambedkar Awas Yojana iii. To ameliorate the conditions of urban su, dwellers and facilitate the constructic, and upgradation of dwelling units D. MGNREGA iv. To create self employment opportunities, in rural areas and town Alternatives: (a) Ad (b) Bei (©) Ciii (d) D-iv Percentage of population below poverty line 56.4% Rural Urban = Total 1973-74" 1977-78" 1983" 1987-88 1993-94 "1999-2000 Figure showing estimated number of poor living below poverty line. On the basis of the given bar diagram, the number of urban poors in India are always comparatively less than rural poor because (a) Rural areas lack technological developments (b) Poor infrastructure in rural areas (c) Comparatively Less employment opportunities (d) All of these_ visually. challenged candidates; qdentify which of the following Statements given below, people? fay High gender inequality Unlimited economic opportunities {@) Work in formal sector is true, regarding, the poor {a) Too much dependency on private ty wealth facilities Select indicators of deve 4 poe lopment in education and health sectors Parti a as Suen 191 [1981 von {20s | Real Per Capita Income (in Rs) 5067 | 8283 7321 | 10.306 crude Death } ; 4 aA fate (Per 1,000 Population) | aa a4 | Infant Mortality Rate 146 110 | 6 | a3} Ee 372 | 54a | 597 1 89 ‘ 362 | 547 | 609 69 | __| 3667} 4357 | 5221 | 6520 On the basis of the above-mentioned information answer the following question: The infant mortality rate was declining progressively indicating ____ from 1951 to 2001. {@) Improved health facilities (b) Widespread poverty (c) Improved education facilities (d) Unlimited economic opportunities 33. Read the following statements - Assertion (A) and Reason (R): Assertion (A): The goal of equity was fully served by abolition of intermediaries. Reason (R): The former zamindars continued to own large areas of land by making use of loopholes in legislation. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A), (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. 34. Read the following statements carefully and choose the correct alternatives given below: Statement 1 - There are no benefits of diversification of agricultural activities. Statement 2 ~ Diversification of agriculture resulted in widespread poverty in rural areas as it involves greater risk.Be ee 35. 36. 37. 38. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (©) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false, Read the following statements carefully and choose the correct alternatives Biver below: : Statement 1 = There is a direct relation between money multiplier and LRR high, the value of LRR higher is the value of money multiplier. z Statement 2 - Higher the value of money multiplier, more money is created by ;h, banking system. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. Arrange the following event in the correct chronological order: (Choose the correct arrangements) Introduction of railways st official census iii. Setting up of TISCO iv. Battle of Plassey Alternatives: @) iy, i, i, iii () i, iy, iii, ii (© it, iii, ivi (A) iii, iv, ii, 1 Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given below: Assertion (A): Current account of BOP is used to absorb the surplus of capital account. Reason (R): Capital account transactions causes a change in the assets or liabilities of the residents of the country or its government. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. High powered money includes and Aan (Fill up the blank with correct alternative) i. Currency held by public Currency held by government |. Currency held by RBI iv. Cash reserves with the bankalternatives! ga) Land ii (b) Ht andl ii (6) band i (dys and iv pead the following statements « Assertion (A) and Reason (R), choose one of the eorrect alternatives given below: assertion (A): NABARD is the institutional source of credit which ia regarded as the apes bank working for rural credit Reason (Ri NABARD provides financial assistance to the non-farm sector, to promote integrated rural development and prosperity of backward rural areas Altematives: {a) Both Assertion (A) and Reason (R) are tru of Assertion (A). {b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) (@) Assertion (A) is true but Reason (R) is false (d) Assertion (A) is false but Reason (R) is true 40, Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given belo: and Reason (R) is the correct explanation Assertion (A): Diversification involves a shift from food grains to cash crops with the aim to promote shift from subsistence farming to commercial farming. Reason (R): Diversification of crop production involves a shift from single cropping system to multi-cropping system. Alternatives: {a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). () Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (¢) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. 41. Read the following statements - Assertion (A) and Reason (R), choose one of the correct alternatives given belo’ Assertion (A): Interbank deposits forms a part of money supply, included under M1 measures of money supply. Reason (R): Interbank deposits are the deposits held by banks on behalf of other banks and these deposits do not belong to the public. Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (©) Assertion (A) is true but Reason (R) is false, (d) Assertion (A) is false but Reason (R) is true,Bea Sena aCe ek RR 42. Choose the correct alternatives relating to the adverse living standards of Jn, during British rule to be filled in given blanks A and B. me Poverty rat { Loss income | [ Loss purchasing power | | { [ ] [AJ Lest Loss Investment jess (a) Less investment, Less production (b) Less demand, Less production {c) Low inducement, Low gender equity (d) High demand, Low growths diay, For visually challenged candidates: Read the following statements and choose the correct alternative from the followin, Statement 1: Absolute poverty refers to the total number of people living aboy, poverty line. Statement 2: Relative poverty refers to rich section of people in comparison to poo, people, poor nations. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false. 43. Mrs. Ramesh, Director of Om Higher Education Institute, providing higher education India at reasonable fees, it has 600 branches accros all over India which is greaj step towards increasing literacy rate of higher education. It exhibits the right step in the direction of human capital formation. Spot which of the following does not directly contributes to the process of human capital formation by Mrs. Ramesh: (a) The fullest possible development of human capabilities (b) Ability to think and pursue dreams in life (c) Induces equity in land distribution (d) Overcome of social prejudices . Suppose that the Balance of Trade (BOT) of a nation, exhibits a deficit of = 400.00 crores and the value of imports is twice of exports. The value of imports would be 7 crores. (Fill up the blank with correct alternative) (a) % 4000 crore (b) ® 40 crore (©) % 400 crore (a) % 800 croreee 45, Read the following statements carefully and choose the correct alternatives giver below: Statement 1 ~ Growth oriented approach prove to be ineffective because of inability to redistribute land intensified regional disparities and population growth. Statement 2 ~ Growth oriented approach was initiated from the third five year plan. Alternatives: (a) Both the statements are true (b) Both the statements are false (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 46, Read the following statements correct alternatives given below: ~ Assertion (A) and Reason (R), choose one of the Assertion (A): Current account deficit signifies that the nation is the lender to rest of the world. Reason (R): CAD arises when foreign exchange receipts in the current account fall short of foreign exchange payments, Alternatives: (2) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (6) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. 47. Identify the incorrect statement from the following: (Choose the correct alternative) (a) During colonial rule, India become an importer of primary products and an exporter of finished consumer goods. (b) The british rulers throghly exploited the indian economy through economic drain. (©) India’s economy was poor, backward and stagnant before the colonial rule. (d) Primary motive of de-industrialisation by the british rule was to promote India’s ‘economy. . Match the situations given in Column I with their respective implications given in Column II: (Choose the correct alternative) Column I ‘A. Physical capital Column It i. Tangible and mobile B, Human capital ii, Intangible and less mobile C. On-the-job training iii, Increase in skill and efficiency D. Migration iv. Brain drain (b) A-iii; B-iv; Ci (d) A-ii; B-iv, C-i; D-iiiTe SECTION C (10 questions out of 12 questions are to be attempted) Q. No. 49 «54 are to be answered |_3. Non-tax rev 1, Revenue receipts 2. Tax revenue (net to centre) 7. Borrowings and other liabilities 1 the basis of the following data: (in? Crores) ‘| 2017-201 Budget Eatirmates 15,15,71 1 41,01,372 12,27,014 2,72,831 8. Total receipts (144) 9. Total expenditure (10+13) 16,90,584 10. On revenue account of which 11. Interest payments 480,714 12. Grants in aid for creation of capital assets 1,65,733, | 13. On capital account 2,84,610 Source: indiabudget.gov.in 49. The value of revenue expenditure has 2017-18. (Budgeted Estimate). (a) Risen by 7 146350 (©) Risen by % 147350 crores between 2016-17 (Actual) ang (Fill up the blank with correct alternative) (b) Fallen by % 146350 (a) Fallen by 147350 50. The percentage change in the Tax Revenue, between 2016-17 (Actual) and 2017-15 (Budgeted Estimate), taking the 2016-17 as base, would be (a) 15.5% (b) 11% (Fill up the blank with correct alternative) (©) 11.41% (4) 28.9% 51. Identify which of the following is an example of non-tax revenue: (a) Property tax (c) Customs (Choose the correct alternative) (b) Miscellaneous receipts (d) Social security contributions 52. Identify the correct formula of fiscal deficit (a) Fiscal deficit = Total expenditure — Revenue receipts (b) Fiscal deficit = Total expenditure — Total receipts including borrowings (c) Fiscal deficit = Primary deficit — Interest payments (d) Fiscal deficit = Revenue deficit + (Capital expenditure ~ Non-debt creating capital receipts)st Read the following statements carefully and choose the correct alternatives given polow! Statement 1 Fiscal deficit for the year 2017-18 (Budgeted estimate) is more than fiscal dofielt 2016-17. Statement 2 = ‘ants In aid for creation of capital assets increased from 2016 to 2018. Alternatives: (a) Both the statements are true (b) Both the statements are false (¢) Statement 1 is true and Statement 2 is false. (a) Statement 2 is true and Statement 1 is false ga, The value of revenue Deficit for the year 2017-18, would be %______ crores. (Fill up the blank with correct alternative) {a) 125813 (b) 316381 (c) 32163 (d) 546531 Q. No. $5 ~ 60 are to be answered on the basis of the following data: Manmohan Singh’s 1991 Budget speech made no attempt to hide the extent of the economic crisis prevailing then, the new Government, which assumed office barely a month ago, inherited an economy in deep crisis. The balance of payments situation is precarious... We have been at the edge of recipice since December 1990 and more so since April 1991... The people of India have to face double digit inflation which hurts most the poorer sections of our society. In sum, the crisis in our economy is both acute and deep. We have not experienced anything similar in the history of independent India.” A look at inflation and foreign exchange reserve and trade numbers suggests that the balance of payment crisis was much bigger than the inflation crisis,” Manmohan Singh said in his Budget speech. The government, along with the Reserve Bank of India (RBI), undertook a two-step devaluation of the rupee, which was first devalued against major currencies by around 9 per cent on 1 July 1991, followed by another devaluation of 11 per cent two days later. This was done with the aim of making Indian exports more competitive. ‘As part of its efforts to boost exports, the Indian government announced a new trade policy that sought to bring a change in the licensing process. New industrial policy: The game- changing new industrial policy was unveiled on the eve of Budget 1991. The policy relaxed some of the provisions in Monopolies and Restrictive Trade Practices Act to facilitate easier entry and restructuring of businesses by facilitating mergers and amalgamations. The policy ended the public sector monopoly in many sectors and announced a policy of automatic approval for foreign direct investment up to 51 per cent as against the earlier cap of 40 per cent for foreign equity investments. Public sector monopoly was restricted to only a few sectors important from the point of view of national security. It also abolished industrial licensing for all industries barring 18 irrespective of levels of investment. 55. According to the given text ____ was the biggest crisis on the indian economy in 1991. (a) Deflation crisis (b) BOP crisis (c) Low production (a) Low GDP> 86. Read the following statements carefully and choose the correct alternatives Kiven below: Statement 1 = To overcome the BOF crises, the rupee was devalued against fore, currencies Statement 2 =< Devaluation was done to increase the inflow of forel: the aim of making exports more competitive, Alternatives: {a) Both the statements are true, (b) Both the statements are false. ign exchange with (©) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 57, Read the following statements - Assertion (A) and Reason (R): worsened the condition of poorer section in Reason (R): Indians experienced a double digit inflation which hurts the poorer the section of our soceity. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the explanation of Assertion (A). (©) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true. 58. In the light of the given text and common knowledge, identify the incorrect statement: (a) The new industrial policies relaxed provisions in monopolies and restrictive trade practice act. (b) After financial sector reforms foreign institutional investors (FII) such as me: banker mutual funds were now allowed to invest in indian financial markets, (©) The new policy abolished industrial licensing for all projects, excepts for a short list of industries. (a) Under Industrial sector reforms, there was substantive reduction in the private sector in future industrial development of the country. correct chant role of 59. Read the following statements carefully and choose the correct alternatives given below: Statement 1 ~ Balance of payment situation came to the verge of collapse in 1991, mainly because the current account deficit were mainly financed by borrowing from abroad.60. Statement 2 - In 1991, Manmohan Singh as finance minister abolished the lincense raj, source of slow economic growth and corruption in the indian economy. Alternatives: (a) Both the statements are true, (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is f Read the following statements - Assertion (A): The crisis, economy. ‘alse. Assertion (A) and Reason (R): in turn paved the way for the liberalization of the indian Reason (R): Under reforms of 1991 there was removal of entry and growth restrictions on private sector as well as FDI unit was also raised. From the given alternatives choose the correct one: Alternatives: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). (c) Assertion (A) is true but Reason (R) is false. (d) Assertion (A) is false but Reason (R) is true.9 a | SAMPLE PAPER 3 word: 90 minutes Max, Marks: 40 rime Allo te eee GENERAL INSTRUCTION! 1. There are a total 60 questions in this paper out of which 50 questions are to be attempted. 2, This paper is divided into three Sections a, Section A = Contains 24 questions. Attempt any 20 questions b, Section B - Contains 24 questions, Attempt any 20 questions. ¢. Section C ~ Contains 12 questions. Attempt any 10 questions. 3. All questions carry equal marks, 4, There is no negative marking. eee SECTION A (20 questions out of 24 questions are to be attempted) 1. The government can achieve its budget objective of ‘economic stability’ by (Fill up the blank with correct alternative) (a) Estabilishing monopolic control (b) Policies of surplus budget and deficit budget (c) Directly producing goods and services (a) Providing tax rebates. 2, Balance of Payments is used to monitor all : (Fill up the blank with correct alternative) (a) Overdue economic transactions. (b) International monetary transcation. (©) Credit annual transaction. (d) Capital and current account. 3. Which of the following performs only the function of lending money? (Choose the correct alternative) (a) Reserve Bank of India (b) Axis Bank (©) Unit Trust of India (d) Central Bank of IndiaSET SS 4. Ldentify which of the following is an example of unrequited transfer (Choose the correct alternative, (b) Insurance (a) Personal remittances (d) Interest income (©) Merchandise transactions Read the following statements carefully and choose the correct alternative from th» 5 following: Statement 1 = Indian 1 rupee note does not have any backing of standard coing o, bullions. Statement 2-= Indian 1 rupee note which is issued by ministry of finance is inconvertible paper money. Alternatives: (a) Both the statements are true, (b) Both the statements are false. (©) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 6. Mrs. Shweta, an economist, was explaining the concept of ‘minimum percentage o¢ net demand and time liabilities to be kept by commercial banks with the central bank’. From the following, choose the correct alternative which specifies towards the concept explained by her? (a) Cash Reserve Ratio (©) Bank Rate 7. Two persons Radha and Shyam were discussing foreign exchange rate systems. ‘Under this system, all currencies were pegged or related to US dollar this system gave birth to international monetary fund ’. The above-mentioned statement was given by Radha, identify the type of exchange rate system was she talking about? (a) Fixed exchange rate (c) Managed floating rate 8. Read the following statements carefully and choose the correct alternative from the (b) Repo Rate (d) Statutory Liqui ity Ratio (b) Floating exchange rate (d) Flexible managed rate following: Statement 1 ~ Public goods are non-rival and non-excludable. Statement 2 - Public goods must be provided by government because there arises market failures. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (c) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false.jtal account of BOP is related to of financial and 9 ere (Will up the blank with correct alternative? , claims ii, Lending uh porrowing iv. Liabilities saentify the correct alternatives from the following: ateratives! ay band (b) 4 and iti (c) til and ty (d) iv and} jaentify the correct function of central bank? (Choose the correct alternative) M) Carryout banking operations of commercial ) Agent of commercial banks © panker’s supervisor (d) Deals directly with public jp According © Industrial Policy Resolution 1956, the industries were reclassified into eee — categories. ‘ (Fill up the blank with correct alternative) 2 OE (©) 17 (d)3 stagnant Feehan, ——_ (Fill in the blank with correct alternative) -feuda 0 oe 2 {p) Economy which is exploited {@) Feonomy which is growing ata slow rate (a) Amputed economy 43, tabled the government to maintain bufferstock of food grains. (Fill in the blank with correct alternative) (b) Land ceiling () Green revolution 44. Read the following statements carefully and choose the correct alternatives given below: {@) Abolition of intermediaries (¢) Outdated technology Statement 1 ~ In India, monthly per capital expenditure, MPCE method is used to determine poverty line. i Statement 2 - This method differentiates between the poor and other poor. Alternatives: (a) Both the statements are true. (b) Both the statements are false. (©) Statement 1 is true and Statement 2 is false. (d) Statement 2 is true and Statement 1 is false. 45. Read the following statements carefully and choose the correct alternatives given below: Statement 1- WTO agreements cover trade in , ‘oods as well as serv ili international trade. 5 s well as services, to facilitates Statement 2 - WTO was founded in 1995 as the successor organization to the GATT.Alternatives: la) Roth the elatements are true (h) Roth the statements are falee, {) Batement 1 is true and Statement 2 is false. {d) Statement 2 is true and Statement 1 js false. 1%. alms 10 raise the standard of living of all people and promote ., justice. (Hilt In the blank with correct altern,y,_" (a) Self-reliance (b) Social welfare fe) Equity (d) modernization 17. From the following given sets of statements in column I and I, choose the cy... pair of statements. pmous transaction D. Balance of trade Alternatives: ‘ : (a) Ai (b) Beit (©) Ci (a) Div 18. is a credit scheme extended to the poor through self help groups (511¢,, (Fill in the blank with correct alterna; (a) Institutional sources (b) Micro finance (9) TANWA (d) SAGY 19. The Government of India annual spends crores of money on maintainance of roads This would be categorized as Gill in the blank with correct alternative) (a) Revenue nature income (b) Capital nature expenditure (©) Revenue nature expenditure (d) Capital nature income 20. is one of the programme that aim at improving of the food and nutrition2| status of the poor. (Fill in the blank with correct alternative) () Swarna Jayanti Shahri Rozgar Yojna Scheme (b) Integrated Child Development (c) National Food for Work Programme (d) Public Meal System 21. In a hypothetical economy, money supply is € 10,000 crore there is no other currency circulating in the economy other than bank deposits, providing the value of money multiplier 5 find the initial deposits in bank (Fill up the blank with correct alternative) (a) % 20000 crore (b) % 5000 crore (c) % 2000 crore (d) % 50000 crore