Economics

EPFO TEST-5 (Full)

FT VOL-5

DO NOT OPEN THIS BEST BOOKLET UNTIL YOU ARE ASKED TO DO SO

Time Allowed: 1 Hours Maximum Marks: 100

INSTRUCTIONS
1. This Question Booklet is printed in English languages.
2. The Question Booklet contains 50 questions. The examinee should verify that the requisite number of
questions are printed in the Question Booklet, otherwise he/she should ask for another Question
Booklet.
3. All questions are compulsory.
4. All questions carry equal marks.
5. The cover page indicates the number of pages in the Question Booklet. The examinee should verify that
the requisite number of pages are attached In the Question Booklet, otherwise he/she should ask for
another Question Booklet.
6. Read carefully the instructions given on the Answer Sheet supplied and indicate your answers
accordingly.
7. Kindly make necessary entries on the Answer Sheet only at the places indicated and nowhere else.
8. Examinee should do all rough work on the space meant for rough work in the pages given at the end of
the Question Booklet and nowhere else, not even on the Answer Sheet.

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Q.1) :- Which of the following statements is/are Q.4) :- Which of the following statements is/are
not correct about the new economic policy of true about poverty line?
1991? 1. Poverty line changes from region to region
1. It allowed private players n all sectors of the but is constant with time.
economy without restriction 2. Surveys for property line estimation is the
task of central Statistical Organisation.
2. It wanted to convert India economy to a
3. Calorie requirement for urban areas is kept
market economy.
high compared to rural areas.
3. It wanted to permit the international flow of
Select your answer from the codes given below:
goods, service and capital without any restrictions. (A) 1 only
Select your answer from the codes given below: (B) 2 and 3 only
(A) 2 and 3 only (C) None of the above
(B) 1 only (D) All of the above
(C) 1 and 3 only Q.5) :- Consider the following statement/s with
(D) None of the above reference to reforms in Agriculture:
Q.2) :- Which of the following are considered as 1. Land ceiling means fixing the maximum size
core industries in India? of land which could be owned by an individual.
1. Fertilizers 2. The purpose of land ceiling was abolish
intermediaries and make the tillers, the owners of
2. Iron
land.
3. Textile
3. Purpose of land reforms was to reduce the
4. Crude Oil
concentration of land ownership in a few hands.
5. Food Processing 4. Land reforms were successful primarily in
Select your answer from the codes given below: Kerala and West Bengal.
(A) 1, 2 and 3 only Which of the above statement/s is/are correct?
(B) 3, 4 and 5 only (A) 3 and 4 only
(C) 1 and 4 only (B) 2, 3 and 4 only
(D) 2, 3 and 5 only (C) 1, 2 and 3 only
Q.3) :- Which of the following is/are the silent (D) 1 and 4 only
features of Indian Economy? Q.6) :- Which of the following statements is/are
1. Federal Economy. true about WTO?
1. Its main aim is to facilitate and liberalize
2. Unbalanced economic development
international trade.
3. Disparities in income distribution
2. It makes rules for international trade and
4. Low rate of capital formation
ensures its compliance.
Select the correct answer using below given 3. It was an initiative of developing countries led
codes: by India.
(A) 2 and 3 only Select your answer from the codes given below:
(B) 2 and 4 only (A) 1 only
(C) 1, 3 and 4 only (B) 1 and 2 only
(D) All of the above (C) 2 only
(D) 3 only

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Q.7) :- Referring to watershed management,
consider the following statements:
1. Watershed management emphasizes on
scientific soil and water conservation.
2. The aim is to develop primary resources of
land and water to produce secondary resources
for maintaining ecological balance.
3. Watershed management increases the life of
the downstream dam and reservoirs.
Which of the above statements are correct?
(A) 1 and 2 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) 1, 2 and 3
Q.8) :- Consider the following statements on
Special Economic Zone (SEZ):
1. SEZ is a geographical region deemed to be
foreign territory for the purposes of trade
operations and duties and tariffs.
2. Economic laws are more liberal in SEZ.
3. Only State government or its agencies can set
up an SEZ in India.
4. Establishment of SEZs are confined only to the
developing countries.
Which of the above statements are correct?
(A) 1, 2 and 3 only
(B) 2 and 4 only
(C) 1, 2 and 4 only
(D) 1 and 2 only
Q.9) :- Consider the following statements:
1. Urea is the most produced and most imported
fertilizer in India.
2. Introduction of Neem coated urea has reduced
the diversion of subsidized urea towards
nonagricultural purposes.
Select your answer from the codes given below:
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2
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Q.10) :- Consider the following statement/s with
reference to the status of agriculture sector during
the colonial rule.
1. Agriculture sector in India were characterized
by low productivity and stagnation.
2. Land settlements that were introduced by the
colonial government were one of the major
reasons for stagnation in the agricultural sector.
3. There is some evidence of a relatively higher
yield of cash crops in certain areas of the country
due to commercialization of agriculture.
Which of the above statement/s is/are correct?
(A) 1 and 3 only
(B) All of the above
(C) 1 and 2 only
(D) 2 and 3 only
Q.11) :- Which of the following statements is/are
true related to the PDS system?
1. PDS system aims at poverty alleviation and
preventing malnutrition.
2. PDS system has encouraged farmers in raising
the agricultural production.
3. MSP in the PDS system has distorted the
cropping pattern.
Select your answer from the codes given below:
(A) 1 and 2 only
(B) 2 only
(C) 3 only
(D) All of the above.
Q.12) :- Which of the following statements is/are
true related to dry land farming and wetland
farming?
1. Rainfall of 75 cm forms a boundary line
between dry land farming and wetland farming.
2. Telangana plateau generally comes under
wetland farming due to presence of swamps.
3. Jowar, Bajra and Sugarcane come under dry
land farming.
Select your answer from the codes given below:
(A) 1 only
(B) 1 and 2 only
(C) 3 only
(D) All of the above
Q.13) :- Consider the following statements: Q.16) :- Which of the following is/are correct?
1) Inflation redistributes wealth from creditors to 1. The estimate of incomes and expenditure, pegs
debtors. the fiscal deficit of year 2019-20 at 3.4% of
2) Higher inflation suggests that producers should GDP.
produce more. 2. Govt. has maintained the glide path towards
Mark the correct one(s):
our target of 3% of fiscal deficit to be achieved
(A) Only 1
by 2020-21
(B) Only 2
3. The FRBM Act prescribes that the Debt to
(C) Both 1 and 2
(D) Neither 1 nor 2 GDP ratio of the Government of India should be
Q.14) :- Homes built under rural housing brought down to 40% by 2022-23.
schemes are related other welfare too. Which of (A) All are correct
the following schemes are associated with (B) 1 and 2
Pradhan Mantri Aawaas Yojana in this context? (C) 2 only
1. Saubhagya programme (D) 3 only
2. MGNREGA scheme Q.17) :- Which of the following is not the
3. Ujjwala purpose of Rashtriya Kamdhenu Aayog?
4. Swachh Bharat Mission. (A) to upscale sustainable genetic up gradation of
Code:
cow resources
(A) 2 and 3 only
(B) to enhance production and productivity of
(B) 2 and 4 only
cows
(C) 1,2 and 3 only
(D) All are correct (C) look after effective implementation of laws
Q.15) :- Which of the following statement is/are and welfare schemes for cow
correct with respect to the recent budget (D) to boost livestock exports from India
announcement? (2019-20) regarding Denotified, Q.18) :- Which of the following steps have been
Nomadic and Semi-Nomadic Communities? recently taken by the government for MSMEs?
1. A committee will be set up under NITI Aayog 1. Scheme of sanctioning loans up to 1 crore in
to complete the task of identifying de-notified, 59 minutes has been launched
nomadic and semi-nomadic communities. 2. GST-registered SME units will get 2% interest
2. The committee will follow up on the work of rebate on incremental loan of 1 Crore.
the Renke Commission and the Idate 3. The requirement of sourcing from SMEs by
Commission. Government enterprises has been increased to
3. Constitution of a Welfare Board under the 30%.
Ministry of Tribal Affairs 4. At least 3% of PSE procurement will be
Choose the correct answer from the codes below: sourced from women owned SMEs
(A) 1 and 2 only (A) 1 and 2
(B) 1, 2 and 3 (B) 1,2 & 4
(C) 1 and 3 only (C) All are correct
(D) 2 and 3 only (D) 1 and 4

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Q.19) :- Consider the following statements with Q.23) :- Consider the following statements
regard to NITI Aayog: 1. World Bank includes International Bank for
1. It is a constitutional body. Reconstruction and Development (IBRD),
2. It does not have the power of allocating central
funds to States. International Development Association (IDA)
3. The Prime Minister is the chairman of NITI and International Finance Corporation (IFC)
Aayog. amongst others.
Which of the statements given above is/are 2. International Development Association (IDA)
correct? lends money to developing countries at low
(A) 1 and 2 Only
(B) 2 Only interest rates.
(C) 2 and 3 Only 3. Multilateral Investment Guarantee Agency
(D) 1 and 3 Only (MIGA) encourages investment in developing
Q.20) :- Consider the following liquid assets: countries.
1. Demand deposits with the banks Which of the statements given above are correct?
2. Time deposits with the banks
3. Savings deposits with the banks (A) 1 and 2 only
4. Currency (B) 2 and 3 only
The correct sequence of these assets in the (C) 1 and 3 only
decreasing order of liquidity is (D) 1, 2 and 3
(A) 1–4–3–2 Q.24) :- Which of the following given below are
(B) 4-3-2-1
(C) 2-3-1-4 examples of direct taxes?
(D) 4-1-3-2 1. Estate duty
Q.21) :- The government provides subsidies in 2. Corporate tax
various sectors. Which of the following are the 3. Excise duty
effects of subsidies?
4. Entertainment tax
1. It increases inflation
2. It increases fiscal deficit Select the correct answer using the code given
3. It decreases export competitiveness below:
Select the correct answer using the codes given (A) 1 and 4 only
below.
(B) 2 and 3 only
(A) 1 and 2 only
(B) 2 only (C) 3 and 4 only
(C) 2 and 3 only (D) 1 and 2 only
(D) 1, 2 and 3
Q.22) :- Consider the following statements about
Q.25) :- With reference to monetary policy in
fiscal deficit of the government. India, which of the following statements is not
1. Financing of deficit may cause the crowding out correct?
effect of private investment. (A) Monetary policy is handled by the Reserve
2. Borrowing from the RBI to finance the deficit
may cause inflation. Bank of India
3. Market borrowing for deficit financing may (B) Consumer Price Index-combined is used as a
alter the money supply. tool to decide the interest rates.
4. Deficit financing will lead to inflation.
Which of the statements given above is/are (C) The reverse repo and Marginal Standing
correct? Facility rates are in gap of 100 basis points with
(A) 1 and 2 only repo rate
(B) 2 and 4 only
(D) Inflation control is the major objective
(C) 3 and 4 only
(D) 4 only
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Q.26) :- Which of the following statement(s) Q.29) :- The establishment of 'Payment Banks' is
is/are correct regarding Asian Development being allowed in India to promote financial
inclusion. Which of the following statements
Outlook Report 2019?
is/are correct in this context?
1. This report has increased India's growth 1. Mobile telephone companies and supermarket
forecast for upcoming year. chains that are owned and controlled by residents
2. There will be decrease in Consumer price are eligible to be promoters of Payment Banks.
inflation in 2019-20. 2. Payment Banks can issue both credit cards and
debit cards.
Code:
3. Payment Banks cannot undertake lending
(A) 1 only activities.
(B) 2 only Select the correct answer using the code given
(C) Both 1 and 2 below.
(A) 1 and 2 only
(D) None of the above
(B) 1 and 3 only
Q.27) :- With reference to 'Financial Stability and (C) 2 only
Development Council', consider the following (D) 1, 2 and 3
statements: Q.30) :- Which of the following is/are included in
the capital budget of the Government of India?
1. It is an organ of NITI Aayog.
1. Expenditure on acquisition of assets like roads,
2. It is headed by the Union Finance Minister. buildings, machinery, etc.
3. It monitors macro-prudential supervision of the 2. Loans received from foreign governments
economy. 3. Loans and advances granted to the States and
Which of the statements given above is/are Union Territories
Select the correct answer using the code given
correct?
below.
(A) 1 and 2 only (A) 1 only
(B) 3 only (B) 2 and 3 only
(C) 2 and 3 only (C) 1 and 3 only
(D) 1, 2 and 3
(D) 1, 2 and 3
Q.31) :- The term 'Long-Term Capital Gains or
Q.28) :- Consider the following statements LTCG Tax' is sometimes seen in the news. With
regarding Small Finance Banks (SFBs) in India? reference to this, consider the following
1. SFBs cannot set up subsidiaries to undertake statements:
non-banking financial service activities. 1. In case of equity shares, long-term capital
gains refer to the gains made on stocks held for
2. Small Finance banks are not allowed to lend
more than 3 years.
money to the people. 2. Currently, there is no formal taxation system
Which of the statement(s) given above is/are for securities transaction in India.
correct? Which of the statements given above is/are
correct?
(A) 1 only
(A) 1 only
(B) 2 only (B) 2 only
(C) Both 1 and 2 (C) Both 1 and 2
(D) None of the above (D) Neither 1 nor 2

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Q.32) :- Consider the following statements Q.36) :- Recently Madhya Pradesh government's
regarding Financial Inclusion? Happiness Department plans to set up a Time
1. It aims at better access to useful and affordable Bank Which of the following are benefits of such
financial products for individuals and businesses bank?
2. Opening of transaction account is the first step 1. It helps to earn money while working at
towards financial inclusion home.
3. Financial inclusion helps in achieving 2. It is a reciprocity-based work trading system
sustainable development goals. in which hours are the currency.
Which of the above statements is/are correct? 3. It help to build strong relationships and
(A) 1 only community trust.
(B) 1 and 3 only Select the correct answer using codes given
(C) 2 only below:
(D) 1, 2 and 3 (A) 1 and 2 only
Q.33) :- What does Foreign Capital include? (B) 2 only
1. Foreign Direct Investment (C) 2 and 3 only
2. Trade Credit (D) All of the above
3. NRI Deposits Q.37) :- If RBI decreased repo rate, which of the
4. External Commercial Borrowings following consequence can occur:
Select the correct answer using the code given 1. Decrease in inflation rate.
below: 2. Increase in cost of lending by banks
(A) 1 and 3 Only Select the correct answer using codes given
(B) 1, 3 and 4 Only below:
(C) 2, 3 and 4 Only (A) 1 only
(D) 1, 2, 3 and 4 (B) 2 only
Q.34) :- Which of the following body is (C) Both 1 and 2
concerned with the publication of the report titled: (D) None of the above
“India: Development Effectiveness Brief"? Q.38) :- With reference to White Label ATMs,
(A) World Bank which of the following statements is/are correct?
(B) NITI Aayog 1. NBFCs can apply for a White Label ATM
(C) International Monetary Fund license.
(D) Asian Development Bank 2. White Label ATMs provides banking services
Q.35) :- The Service Area Approach was based on debit cards only.
implemented under the purview of Select the correct answer using the code given
(A) Integrated Rural Programme below.
(B) Lead Bank Scheme (A) 1 Only
(C) Mahatma Gandhi National Rural (B) 2 Only
Employment Guarantee Scheme (C) Both 1 and 2
(D) National Skill Development Mission (D) Neither 1 nor 2

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Q.39) :- Which of the following statements is/are Q.43) :- Consider the following statements with
correct about Purchasing Power Parity? respect to Cooperative Banks
1. It is an economic theory that compares 1. Cooperative banks are currently under the
different currencies of the countries through a
dual control of the Registrar of Cooperative
“basket of goods” approach.
Societies and RBI.
2. China is the world's largest economy based on
purchasing power. 2. They are registered under the Banking Laws
Select the correct answer using the code given (Co-operative Societies) Act, 1955.
below: Identify the correct statement(s).
(A) 1 Only (A) 1 only
(B) 2 Only (B) 2 only
(C) Both 1 and 2
(C) Both
(D) Neither 1 nor 2
(D) None
Q.40) :- Which of the following statement
correctly defines the term Bilateral Nominal Q.44) :- Which of the following statement(s)
Exchange Rate? about Pradhan Mantri Fasal Bima yojana is/are
(A) It is the ratio of foreign to domestic prices, correct.
measured in the same currency. 1. It is compulsory for Farmers in the notified
(B) It is the exchange rate of one currency against area, who possess a Crop Loan account/KCC
another in money terms. account.
(C) It means that goods cost the same in two 2. The centre's contribution is halved and its
countries when measured in the same currency. share of the premium subsidy is reduced from the
(D) It is the measure of a country’s international
current 50% to just 25% in irrigated areas and
competitiveness.
30% for unirrigated areas from the kharif season
Q.41) :- The National Strategy for Financial
Inclusion for India 2019-2024, released recently, of 2020.
has been prepared by: Choose the correct answer using the codes given
(A) NITI Aayog below.
(B) Department of Financial Services, Ministry of (A) 1 only
Finance (B) 2 only
(C) RBI (C) Both
(D) Financial Stability and Development Council (D) None
(FSDC) Q.45) :- Which of the following statement(s)
Q.42) :- Consider the following statements with
about poverty in India is correct?
regard to Multidimensional Poverty Index (MPI):
1. Poverty line is defined as the expenditure
1. Its dimensions include Health, Education and
incurred to obtain the goods in a “poverty line
Living Standard.
basket” (PLB).
2. India lifted 271 million people out of poverty
2. The proportion of population below the
between 2006 and 2016 (2019 report).
3. The 2019 global Multidimensional Poverty poverty line is called the poverty ratio or
Index was released by the Oxford Poverty and headcount ratio (HCR).
Human Development Initiative (OPHI). Choose the correct answer using the codes given
Which of the above statement is/are correct? below.
(A) 1,2 and 3 (A) 1 only
(B) 1 only (B) 2 only
(C) 1 and 2 only (C) Both
(D) 1 and 3 only (D) None

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Q.46) :- With reference to OPEC nations,
consider following statements
1. The Organization has a total of 14 Member
Countries which produce about 44% of the
world's oil and own over 73% of the world's oil
reserves.
2. Ecuador is also among one member of OPEC.
3. Its headquarter is in Baghdad.
Select the correct statement.
(A) 1 only
(B) 1&2 only
(C) 3 only
(D) 1&3 only
Q.47) :- With reference to Electronic Way Bill
(E-Way Bill) scheme, consider the following
statements
1. It is used for tracking inter-state movements of
goods only.
2. It reduces the travel time as well as costs.
3. Under the scheme, the value of goods should
not exceed Rs.50000.
Select the incorrect statement.
(A) 1&2 only
(B) 2&3 only
(C) 1&3 only
(D) All of the above
Q.48) :- With reference to WHO Peace clause,
consider following statements
1. The peace clause protects a developing
country's food procurement programmes against
action from WTO members in case subsidy
ceilings are breached.
2. Currently, there is 10% of the concerned crop's
value of production allowed to subsidies for
developing nation.
3. India has invoked the peace clause of the
World Trade Organization for exceeding the
ceiling on support it can offer farmers for rice for
the marketing year 2018 2019, marking the first
time any country has taken recourse to this
safeguard.
Select the correct statement.
(A) 1&2 only
(B) 2&3 only
(C) 1&3 only
(D) All of the above
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Q.49) :- Consider the following statements with
respect to NITI Aayog's Price Deficiency
Payment (PDPS) System:
1. Under this, farmers will be compensated for
the difference between the MSPs for all crops and
their actual market prices.
2. The subsidy would be paid via Direct Benefit
Transfer (DBT) into the farmer's Aadhaar-linked
bank account.
3. This will reduce the need for the government to
procure food crops, transport and store them, and
then dispose of them under PDS.
Which of the statements given above are correct?
(A) 1 and 2
(B) 2 and 3
(C) 1 only
(D) 3 only
Q.50) :- With reference to Bancassurance
agreement, consider following statements
1. It refers to the distribution of the insurance and
related financial products by the Banks whose
main business is not insurance.
2. For Bancassurance, the Banks need to obtain a
prior license from the Insurance Regulatory and
Development Authority, so that they can work as
“Composite Corporate Agent.
3. As per bancassurance regulations, a bank can
only market three life, general and health
insurance companies' products.
Select the correct statement.
(A) 1&2 only
(B) 2&3 only
(C) 183 only
(D) All of the above