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Contents
1 Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 Indian Economy and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Poverty, Unemployment,and Alleviation Programmes . . . . . . . . . . . . . 39
1.3 Currency and Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
1.4 Indian Banking System and Capital Market . . . . . . . . . . . . . . . . . . . . . . 72
1.5 Fiscal System of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
1.6 Industries, Infrastructure and Foreign Trade . . . . . . . . . . . . . . . . . . . . 134
1.7 International Organisations and Human Development . . . . . . . . . . . 150
1.8 Natural Resources and Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . 175
1.9 Sectors Of the Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
1.10 Globalisation and the Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . 244
1.11 Lifelines of Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
1.12 India’s Foreign Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
1.13 Indian Economy (1950-1990) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
1.14 Indian Economic Development & policy . . . . . . . . . . . . . . . . . . . . . . . . 308
1.15 New Economic Policy of 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
1.16 Indian economy on the eve of independence . . . . . . . . . . . . . . . . . . . . 336
1.17 Manufacturing industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354
1. Indian Economy
NARAYAN CHANGDER
1.1 Indian Economy and Planning
1. Which was the last Five Year plan in In- B. LRR become zero
dian? C. money multiplier becomes zero
A. 11th D. total reserves equal initial deposits
B. 12th
5. Which one of the following is a driv-
C. 14th ing force influencing the industrial growth
D. 13th of an economy? [Corporation’ Bank PO
2011]
2. If the total deposit created by commercial A. Economic Factors only
banks is Rs 20000 cr and LRR is 20%,
then amount of initial deposit will be B. Investment only
C. Innovation/Market Base only
A. Rs 2000 cr
D. All A , B & C
B. Rs 3000 cr
C. Rs 4000 cr 6. In India what type of economic system is
being followed?
D. Rs 14000 cr
A. capitalism
3. Schedule C industries development were B. socialism
left to:
C. Mixed
A. Public sector D. Monarchy
B. Private sector
7. What was the period of the 12th five-year
C. Both (a) and (b) plan of India?
D. None of these A. 2012 to 2017
4. Deposit creation process comes to an end B. 2007 to 2012
when C. 2017 to 2022
A. fresh deposit with bank become zero D. 2010 to 2015
1. B 2. C 3. B 4. D 5. D 6. C 7. A
1.1 Indian Economy and Planning 3
8. 1-Using the loopholes of law to reduce tax C. Land reforms

is known as D. Modernisation

A. Tax evasion
14. Which five year plan was the motto or slo-
B. Tax planning gan “Garibi-Hatao” (Poverty eradication)
C. Tax avoidance A. 3rd five year plan
D. Tax management B. 4th five year plan
9. In which year was india’s first five year C. 5th five year plan
Plan launched? D. 6th five year plan
A. 1951 15. India opted for mixed economy in
B. 1947 A. Industrial policy of 1948
C. 1949 B. Framing of the Constitution
D. 1955 C. Second Five year plan
10. Which five year plan was based on Harrod- D. Industrial policy of 1948
domar Model & its main focus on the agri-
16. What is the other name of Inward Looking
cultural development of the country?
Trade Policy?
A. 1st five year plan
A. Import Substitution
B. 2nd five year plan
B. Export Substitution
C. 3rd five year plan
C. Trade Promotion
D. 4th five year plan
D. Trade Restriction
11. After independence Modernization was as- 17. Rule stating that a percentage of every de-
sociated with1. The ideas of growth2. posit be set aside as legal reserves
Material progess3. Scientific rationality
A. monetary policy
A. 1 and 2
B. discount rate
B. 2 and 3
C. reserve requirement
C. 1 and 3
D. margin requirements
D. All
18. India opted for ’Mixed Economy’ in :
12. Narendra Modi announced demonetization
A. Framing of the Constitution
on
B. Second Five Year Plan
A. 8th November 2016
C. Industrial Policy of 1948
B. 8th October 2016
D. None of the above
C. 8th July 2016
D. none of above 19. Under Industrial Policy Resolution (IPR),
1956, Category II of the industrial sector
13. Which of the following is not a goal of five includes industries jointly owned and con-
year plan? trolled by the private sector and the state.
A. Growth A. True
B. Equality B. False
8. C 9. A 10. A 11. D 12. A 13. C 14. D 15. D 16. A 17. C 18. C 19. A 20. A
20. 4-If the tax liability of a company is less B. Budget

than 15 % of its book profits, the com- C. Panel Discussion
pany is liable to pay MAT at the rate of
D. Niti Aayog
A. 15% of books profits plus Surcharge) if 24. The Five Year Plans of India intend to
any) plus 4% HEC develop the country industrially through:
B. 16% of books profits plus Surcharge)if [NDA 1991]
any) plus 4% HEC
NARAYAN CHANGDER
A. the public sector
C. 16.5% of books profits plus Sur- B. the private sector
charge)if any) plus 4% HEC
C. the public, private, joint and Coopera-
D. 18.5% of books profits plus Sur- tive sectors
charge(if any) plus 4% HEC
D. increasing collaboration with non-
21. Which of these is not a component of op- resident Indians
erating surplus?
25. Which of the followings is not an objective
A. Interest
of Five Year Plans of India?
B. Rent
A. Self Reliance
C. Royalty
B. Industrial Revolution
D. Wages
C. Modernisation
22. The basic difference between imperative D. Growth
and indicative planning is that: [IAS
1993] 26. The planning commission was set up in
A. it is easier to achieve targets in imper- March 1950 by a of the govt of India.
ative type of planning A. Constitution resolution
B. in the case of imperative planning, all B. Simple resolution
economic activities belong to public sec-
tor, while in the other type they belong to C. Constitution amendment
the private sector D. Agreement between Indian and USSR
C. in the case of the imperative plan-
27. The first five year plan started on
ning, the market mechanism is entirely re-
placed by a command hierarchy, while in A. 1850
the case of indicative planning, it is looked B. 1950
upon as a way to improve the functioning
of the market system C. 1951
D. in the case of indicative planning, D. 1960

there is no need to nationalise any indus-
28. Real flow is also known as
try
A. Nominal flow
23. The legislature also ensures that the gov-
B. Physical flow
ernment does not misspend or overspend
through the C. Money flow
A. Taxes D. Both a and b
21. D 22. C 23. B 24. C 25. B 26. B 27. C 28. B 29. A

29. When did the first 5year plan came into B. 1951
effect C. 1981
A. 1st April 1951

D. 1991
B. 1st April 1961
35. The factories, machines, and technology
C. 1st April 1971 that people use to make products to sell.
D. 1st April 1941 A. capital goods
30. The basic feature of the Rolling Plans was B. human capital
that: C. entrepreneurship
A. no physical targets were visualized D. none of above
B. revision of the achievements, of previ- 36. Long Term Measures undertaken during
ous year 1991 New Economic Policy were called
C. annual fluctuations in prices and major as:-
economic developments could be consid- A. Structural Measures
ered while fixing targets
B. Stablisation measures
D. no financial target except in the term
C. Reformational Measures
of annual plans was envisaged
D. Development Measures
31. Human Development Index is not related
to 37. Full form of NITI Aayog is
A. Life Expectancy A. National Institute for Transforming In-
dia
B. Per Capita Income
B. National Institution for Transforming
C. Gross Domestic Product India
D. Education C. National Institute for Transmitting In-
dia
32. During which five year plan private sector
got priority over public sector? D. None of the above
A. 7th five year plan 38. economy is the economy in which
B. 8th five year plan means of production are owned, controlled
and operated by the government.
C. 9th five year plan
A. Mixed
B. Socialist
33. The concept of normal residents applies to C. Capitalist
A. Individuals only D. None of the above
B. Institutions only
39. industries were the focus for the second
C. Both five-year plan.
D. None of them A. True
34. Which year is known as the”Year of Great B. False
Divide” 40. Consider the following about the ’Rolling
A. 1921 Plan’:
30. C 31. C 32. A 33. C 34. A 35. A 36. A 37. B 38. B 39. A
I. A plan for the current year which in- B. 1947

cludes the annual budget C. 1940
II. A plan for a fixed number of years,
say 3, 4 or 5 D. 1950
III. It is revised every year as per re-
45. The very first five-year plan of India was
quirements of the economy
based on the model of
IV. A perspective plan for 10, 15 or 20
years A. Mahalanobis model
NARAYAN CHANGDER
Which of the above are correct? [BPSC B. Harrod Domar Model
2011]
C. Bombay Plan
A. I and II
D. None of these
B. I and III
C. II and III 46. Planning in India derives its objectives
from:
D. I, II, III and IV
A. Fundamental Rights
41. While estimating national income, depreci-
B. Directive Principles of State policy
ation is measured from:
C. Fundamental Duties
A. Durable Consumer goods
D. Preamble
B. Capital Goods
C. Intermediate goods 47. The currency created by the central bank is
D. Final Goods called
A. High powered money
42. Which of the following objectives of 4th
five year plan? B. Money
A. Focus on agricultural development of C. Bank money
the country D. Money supply
B. industrial development of the country
48. What was the main theme of the 12th five-
C. growth with stability and progress year plan of India
achievement of self reliance
A. Faster and more inclusive growth
D. self sufficient economy and opportuni-
ties for productive employment B. Faster, More Inclusive and Sustain-
able Growth
43. Which of the following is not considered a
C. Growth with justice and equity
factor income
A. Rent D. Sustainable development
B. Wages 49. which of the following agency is responsi-

C. Gifts from abroad ble for issuing Rs 1 currency note in India?
D. Profit A. RBI
B. Ministry of commerce
44. In which year India’s first five year plan
launched? C. Ministry of finance
A. 1951 D. Niti aayog
40. B 41. B 42. C 43. C 44. A 45. B 46. B 47. A 48. B 49. C 50. D
50. The division of money into M1, M2, and 55. Main reason for plan holiday 1966-69
M3 is based on was.

A. assets A. Failure of third five year plan
B. supply B. War with Pakistan
C. Death of pt Jawahar Lal Nehru
C. amount in circulation
D. 1&2
D. liquidity
E. 1, 2&3
51. Which of the following is a phase of circu- 56. Assertion:The idea of planning as a pro-
lar flow of income cess of rebuilding the economy earned
A. Generation phase public support in the 1940s and 1950s
all over the world. Reason:Many coun-
B. Distribution phase tries were influenced by economic growth
C. Disposition phase against heavy odds in the soviet union in
the 1930s and 1940s
D. All of these
A. Both A and R are true and R is the cor-
52. Which of the following is incorrect? rect explanation of A
B. Both A and R are true but R is NOT the
A. Congress or Nehru plan-1938
correct explanation of A
B. Bombay plan-1940 C. A is true but R is false
C. M.N Roy plan-1944 D. A is false but R is true
D. J.P Narayan plan-1950 57. Central government in India made a law,
implementing the Right to Work in how
53. Success of 4th plan was obstructed by : many districts of India?
A. poor monsoon A. 150 districts
B. war with Pakistan B. 200 districts
C. problem of Bengal refugees C. 250 districts
D. All of the above D. 625 districts
58. Rolling plan was designed for the period:
54. Which of the statements given below [IAS 2003]
is/are correct? [CDS 2008]
A. 1978-83
1. Food for Work Programme was
B. 1980-85
launched in India during the 10th
Five Year Plan. C. 1985-90
2. The Planning Commission in India is D. 1974-97
a constitutional body.
59. RBI doesn’t consist of
A. 1 only
A. Longevity
B. 2 only B. Knowledge
C. Both 1 and 2 C. Life Expectancy
D. Neither 1 nor 2 D. Standard of living
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60. Right refers to those who believe that1. In the first phase of the green revolution,
Free competition and market economy the use of HYV seeds was restricted to
alone ensure progress2. Th govt must in- the more affluent states such as Punjab,
tervene in the economy Andhra Pradesh and Tamil Nadu.
A. Only 1 A. i and iii
B. Only 2 B. iii and iv
C. None C. i, ii, iii and iv
NARAYAN CHANGDER
D. Both D. ii, iii and iv
61. Who wrote the book ’Planned Economy for
65. Choose the correct meaning of organised
India’?
sector:
A. M. Visvesvaraya
A. It covers those enterprises where the
B. Sardar Vallabhbhai Patel terms of employment are regular.
C. Jawaharlal Nehru
B. It is outside the control of the govern-
D. Mahatma Gandhi ment.
62. The first attempt to initiate economic plan- C. Jobs are not regular.
ning in India was made by: D. It provides low salaries.
A. Balwantrai Mehta
66. National Development Council was set up
B. Vallabhbhai Patel
in:
C. M. Visvesvaraya
A. 1948
D. Jawaharlal Nehru
B. 1950
63. The portion of agricultural produce which is
C. 1951
sold in the market by the farmers is called
D. 1952
A. Green Revolution
67. Which objective of planning was consid-
B. Price Floor ered a necessity to reduce our dependence
C. Over Production on foreign goods:
D. Marketed Surplus A. modernisation
64. Which of the following statements regard- B. self reliance

ing high yielding variety (HYV) seeds are C. growth
correct?i) The use of these seeds requires
D. all of the above
neither the use of fertilisers nor the pesti-
cides.ii) Dependence on regular supply of 68. Which economic model is followed by In-
water is eliminated.iii) In the first phase dia?
of the green revolution(mid 1960s upto
mid 1970s), the use of HYV seeds pri- A. Socialist model
marily benefited the wheat growing re- B. Capitalist model
gions only while In the second phase (mid-
C. Mixed model
1970s to mid-1980s), the HYV technol-
ogy benefited more variety of crops.iv) D. None of these

69. Hiring workers in other countries to do a B. Second

set of jobs
C. Third

A. outsourcing
D. Fourth
B. fundamental
C. overlap 74. At the time of independence what percent-
age of population of India were depend on
D. Professional
agriculture?
70. Which of the following bodies finalises the A. 70
Five Year Plan proposals? [IAS 2002]
B. 75
A. Planning Commission
C. 80
B. Union Cabinet
C. National Development Council D. 85
D. Ministry of Planning 75. Depreciation means:

71. Consider the following statements: [IAS A. Destruction of a factory due to fire
2004] B. Loss in fixed assets due to normal
1. The highest deciding body for plan- wear and tear
ning in India is the Planning Commis-
C. Loss in fixed assets due to earthquake
sion of India.
2. The Secretary of the Planning Com- D. Shut-down of a factory due to strike
mission of India is also the Secretary
of National Development Council 76. What can be a Good Example Of Think-
3. The Constitution includes economic tank in the following.
and social planning in the Concurrent A. To solve classroom related issues, the
List in the Seventh Schedule of the teacher forms a group of students. this
Constitution of India. Which of the group discusses the problems and finds
statements given above is/are cor- solutions to it.
rect?
B. To solve classroom related issues,
A. 1 and 2 teacher forms a group with other teach-
B. 2 only ers in the staff room to discuss the prob-
C. 2 and 3 lems and find solutions to it.
D. 3 only 77. NITI Aayog is neither a constitutional nor
72. Planning Commission was scrapped on a statutory body
A. 2010 A. Agree
B. 2015 B. Disagree
C. 2014
78. Does NITI Aayog incorporates the NRI
D. 2011 (Non-Resident Indian) community’s pro-
posal
73. In which five-year plan India opted for a
mixed economy? A. Agree
A. First B. Disagree

79. Buying and selling of government securi- 84. When was Niti Aayog setup?
ties by the central bank from/to banks is A. 1 January 2016
called?
B. 1 April 2015
A. open market operations
C. 15 March 2016
B. margin
D. 1 January 2015
C. banking
D. none of above 85. India had a plan holiday: [CPO AC 2003]
NARAYAN CHANGDER
A. after the China-India War of 1962
80. The Industrial Policy Resolution was
adopted in B. after the drought of 1966
A. 1954 C. after the liberation of Bangladesh in
B. 1958 1971
C. 1956 D. after the India-Pakistan War in 1965
D. 1952 86. When was the planning commission set up

in India?
81. An underdeveloped economy is generally
characterised by : A. 5th March 1951
1. Iow per capita income B. 25th April 1950
2. Iow rate of capital formation C. 20th March 1951
3. Iow dependency figure
D. 15th March 1950
4. working force largely in the tertiary
sector 87. The socialist economy is also known as
A. 1 and 2
B. 2 and 3 A. Mixed
C. 3 and 4 B. Traditional
D. 1 and 4 C. Market
82. Who was the first chairman of Planning D. Command

Commission, GOI
88. The objective of self-reliance and zero net
A. S.C Bose foreign aid was declared in :
B. Dr. B.R Ambedkar A. Second 5-Yr Plan
C. Dr. Rajendra Prasad B. Third 5-Yr Plan
D. Jawaharlal Nehru C. Fourth 5-Yr Plan
83. Which of the following will be included in D. Fifth 5-Yr Plan
national income of India
89. British policies transformed the country
A. Old age pension into a of raw material and of fin-
B. Subsidies ished goods from Britain.
C. Scholarship A. consumer, supplier
D. Salaries B. supplier, consumer

90. After 1967, how many banks were nation- A. Both A and R are true but R is the cor-
alized? rect explanation of A

A. 12 B. Both A and R are true but R is NOT the
correct explanation of A
B. 14
C. A is true but R is false
C. 13
D. A is false but R is true
D. 15
E. Both A and R are false
91. Economic survey is published by :[IAS
1998] 96. Which of the following organisation looks
after the credit needs of agriculture and ru-
A. Ministry of Finance ral development in India.
B. Planning Commission A. FCI
C. Govt. of India B. IDBI
D. Indian Statistical Institute C. NABARD
92. Demand deposit created by the commercial D. ICAR

bank are called 97. Which is the characteristics of an underde-
A. High powered money veloped economy?
B. Money A. General poverty
C. Bank money B. Significance of industrial sector
D. Time deposit C. Low growth of population
D. Use of higher production techniques
93. Which plan focused shift of labour from the and skills
agrarian sector to industrial sector?
A. M.N Roy plan 98. When was launched MGNREGP?
A. 2001
B. S.N Agarwal plan
B. 2005
C. Vishveshwarya plan
C. 2008
D. J.P Narayan plan
D. 2015
94. Who formulates five year plans in India?
99. The planning commission was set up in
A. R.B.I. which year in India?
B. Planning Commission A. 5th March 1951
C. Parliament B. 25th April 1951
D. Supreme court C. 20th March 1951
95. Assertion:There were few supporters of D. 15th March 1950

the American-style capitalist development 100. Which five year plan is called as “ Gadgil
in India after independence. Reason:Main yojana”.
responsibility of the govt was poverty al-
leviation and social and economic redistri- A. First
bution B. Second

C. Third 106. In India, planning was conceived as the

main instrument of:
D. Fourth
A. Political development
101. GATT stands for B. Cultural development
A. Genral Agreement on Trade and Tariff C. Social development
B. Government Association for Trade and D. Socio-economic development
Tariff
NARAYAN CHANGDER
107. The Nehru-Mahalanobis strategy of de-
C. General Agreement on terms of Trade
velopment guided the planning practice in
D. Government Agreement on terms of India from the [CDS 2012]
Trade A. First Five-Year Plan to the Sixth Five-
Year Plan
102. which of the following is an example of
is non durable goods? B. Fourth Five-Year Plan to the Eighth
Five-Year Plan
A. milk
C. Second Five-Year Plan to the Seventh
B. bread Five-Year Plan
C. both a and b D. First Five-Year Plan to the Eighth Five-
D. none of these Year Plan
108. 9-Return on investment > rate of inter-

103. In India, Planning is generally for a period
est, funds may be used in capital struc-
of 5 years.
ture.
A. True
A. Minimum Debt Fund
B. False B. Maximum Debt Fund
C. Not sure C. Minimum Equity Fund
D. none of above D. Maximum Equity Fund
104. The concept of Five Year Plans in India 109. Mixed economy means an economy
was introduced by where [CDS 2009]
A. Lord Mountbatten A. both agriculture and industry are
equally promoted by the state
B. Jawaharlal Nehru
B. there is co-existence of public sector
C. Indira Gandhi along with private sector
D. Lal Bahadur Shastri C. there is importance of small scale in-
dustries along with heavy industries
105. Which of the following is NOT a function
of money? D. economy is controlled by military as
well as civilian rulers
A. Unit of Account
110. Home or village-based industry in which
B. medium of exchange
people make simple goods using their own
C. liquidity value equipment
D. store of value A. cottage industry

B. Jute 115. Through , the Legislature controls the

Policy of the Government
C. Green revolution
A. Executive Control

D. Outsourcing
B. Administrative Control
111. In the context of Indian economy, con- C. Financial Control
sider the following pairs: Term Most ap-
D. Judicial Control
propriate description
1. Melt down Fall in stock prices 116. In which one of the following five year
2. Recession Fall in growth rate plans the actual growth performance in In-
3. Slow down Fall in GDP dia in respect of GDP (at factor cost) was
less than the target set? [NDA 2008]
Which of the pairs given above is/are cor-
rectly matched? [IAS 2010] A. Sixth five year plan
A. 1 only B. Seventh five year plan

C. Eighth five year plan
B. 2 and 3 only
D. Ninth five year plan
C. 1 and 3 only
D. 1, 2 and 3 117. What does HYVP stand for?
A. High Yielding Varieties Products
112. It is a conscious design to shape the socio- B. High Yielding Various Programme
economic processes in order to achieve an
objective C. High Yielding Varieties Programme
A. Economic planning D. High Yielding Various Products
B. Economic development 118. Which model of development did India fol-

low?
C. Economic growth
A. Capitalist model
D. Economic infrastructure
B. Chinese model
113. Legally stipulated maximum size beyond C. Mixed model
which no individual farmer can hold any
D. Socialist model
land
A. Tenancy reforms 119. Evaluate the below statements related
to land reforms.i) Just a year after inde-
B. Abolition of intermediaries pendence, steps were taken to abolish in-
C. Land consolidation termediaries and to make the tillers the
owners of land.ii) The purpose of land
D. Land Ceiling ceiling was to keep the concentration of
land ownership in the hands of a selected
114. Name the Finance Minister of India
few.Which of the above are correct?
A. Arun Jetly A. Only i
B. Nirmala Sitaraman B. Only ii
C. Urjit Patel C. Both i and ii
D. P.Chidambaram D. Neither i nor ii

120. Which of the following are not correct as- 124. The assent of the results in the enact-
sessments of the decades of India’s Five- ment of a bill into a law
Year Plans? A. Speaker
1. There has been very low capital for- B. Prime Minister
mation
C. President
2. Growth has favoured the better off
3. Production has increased substan- D. Chief Justice of India
tially though often falling short of
125. refrigerator purchased by a confectionery
NARAYAN CHANGDER
targets
shop is and example of?
4. The public sector has contributed
nothing to economic growth A. final good
A. 1 and 4 B. intermediate good
B. 2 and 3 C. capital good

D. both a and c
C. 1, 2 and 3
D. 3 and 4 126. Quotas are a tax on imported goods
while tariffs specify the number of goods
121. How many industries are reserved for which can be imported.
public sector at present A. True
A. 4 B. False
B. 17 127. Who adopted economic planning for the
C. 6 first time in 1928?
A. USA
D. 3
B. UK
122. Full form of NITI C. USSR
A. National Institution for Transforming D. France
India
128. Plan Holiday (1966-1969) was between
B. National Indian for Transforming Insti-
tute A. 1st and 2nd five year plan
B. 2nd and 3rd five year plan
C. National Institution for Transacting In-
dia C. 3rd and 4th five year plan
D. Native Institution for Transforming In- D. 4th and 5th five year plan
dia
129. “Ariana Rose purchases a new computer
from the MYT Computer and paid by credit
123. What is the maximum investment al-
card.” Based on the statement, choose the
lowed in Small Scale Industries now?
appropriate money function.
A. 5 lakhs A. A store of value.
B. 25 lakhs B. A measure of value.
C. 1 crore C. A medium of exchange.
D. 5 crore D. A standard of deferred payment tools.

130. Economic Planning is a subject: [Asstt 135. Which are the two models of develop-
Grade 1991] ment?

A. in the Union List A. Capitalist and socialist
B. in the State List B. Capitalist and Marxist
C. in the Concurrent List C. Cpaitalistc and Gandhism
D. unspecified in any special list D. None of the above
131. The principal reason why national eco- 136. When government encourages more out-
nomic planning is still being pursued in- sourcing in an economy, it is essentially
spite of embracing a market economy since looking forward to:-
1991 is that: [IAS 1994]
A. Liberlisation
A. the vast quantity of capital already de-
ployed in the public sector needs to be nur- B. Privatisation
tured C. Globalisation
B. the market economy is mainly confined D. Deindustrialisatoin
to industry and commerce and central
planning in agriculture is necessary 137. Match the following:
C. it is a constitutional requirement
List-I List-II
D. Five Year Plans can continue to provide A. Year of the Great Divide 1. 1950
a long-term perspective to the economy in B. Industrial Policy Resolution 2. 1921
market friendly fashions C. Setting up of Planning Commission 3. 1969
132. economic planning is based on certain pre- D. Nationalisation of 14 Commercial banks 4. 1956
determined which are realistic & flexi-
ble
A. A − 2, B − 4,C − 1, D − 3
A. objectives
B. A − 4, B − 3,C − 1, D − 2
B. plan
C. A − 2, B − 1,C − 3, D − 4
C. goals
D. A − 1, B − 3,C − 4, D − 2
D. authority
138. Small Scale Industries use which methods
133. Goal of 8th five year plan was
of proiduction?
A. Capital formation
A. Labour intensive
B. Human development
B. Capital Intensive
C. Agriculture
C. Either Labour or Capital intensive
D. Infrastructure development
D. Both Labour and Capital intensive
134. Who is considered to be the architect of
indian planning? 139. A rolling plan was a plan for:
A. William Digby A. one year
B. P.C. Mahalanobis B. three years
C. Dada bhai Naroji C. five years
D. R.C.Desai D. year to year basis

140. Who among the following was the first C. Dr. Manmohan Singh
Chairman of the Planning Commission? D. Dr. M S Ahluwalia
[CDS 2008]
146. NO.19 TENANCY REFORMS REFERS TO
A. Dr. Rajendra Prasad
B. Pt. Jawahar Lal Nehru
A. NONE
C. Sardar Vallabhbhai Patel B. BRINGING TOGETHER ALL PLOTS OF
D. J.B. Kripalani LAND OF A CULTIVATOR INTO ONE COM-
NARAYAN CHANGDER
PACT BLOCK
141. 6-Which among the following is not avail-
able to companies? C. THOSE WHO TAKE CULTIVABE LAND
ON RENT AND PAY EITHER IN TERMS OF
A. 80 IB MONEY OR A PART OF PRODUCE
B. 80 C D. DIVIDING THE LAND INTO SMALL
C. 80 G PLOTS
D. None of these 147. undertakes economic planning in a
country
142. Green Revolution resulting from:
A. central planning authority
A. Traditional Irrigation facilities
B. state planning authority
B. Use of manure
C. local planning authority
C. HYV seeds
D. none of them
D. None of these
148. which of the following is correct?
143. Who is chairperson of NITI Aayog? A. M.N Roy-People’s plan & J.P Narayan-
A. Prime Minister Mr Narendra Modi Sarvodaya plan
B. Mrs Sita Raman B. M.N Roy-Sarvodaya plan & J.P
Narayan-People’s plan
C. Mr Piyush Goel
D. Mrs Mamta Banrjee 149. Effort to use modern techniques in science
to increase food production in poor coun-
144. Which part of the Indian Constitution tries
echoes the goal of accomplishing security A. Green revolution
through the maintenance of peace of in-
B. jute
dia’s foreign policy?
C. Cottage industry
A. Fundamental Rights
D. Outsourcing
B. Fundamental Duties
C. Directive Principles of the State Policy 150. For internal financing of Five Year Plans,
the government depends on: [NDA 1991]
D. All of these
A. taxation only
145. Who is known as the father of green rev- B. taxation and public borrowing
olution in India?
C. public borrowing and deficit financing
A. Dr. Varghese Kurian D. taxation, public borrowing and deficit
B. Dr. M S Swaminathan financing

151. ’Take off stage’ in an economy means: 157. Which function differs NITI Aayog from
[CBI 1990] the previous planning commission?

A. steady growth begins A. Co-operative federalism between the
B. economy is stagnant union and states
C. economy is about to collapse B. Non federalism between the union and
D. all controls are removed states
152. Rajya Sabha has nominated members 158. Chaudhari Charan Singh left the congress
party to form which party?
A. Eight
B. Eleven A. Socialist Party
C. Ten B. Communist Party of India
D. Twelve C. BJP
153. Who was the first Deputy Chairman of D. Bhartiya Lok Dal
Planning Commission of India?
159. Slogan of garibi hatao was given under
A. Shri Jawaharlal Nehru which plan
B. Dr.Rajendra Prasad
A. Fourth
C. Shri V.T.Krishnamachari
B. Seventh
D. Shri C.Rajagopalachari
C. Plan holiday
154. In which year, the planning commission
D. Third
was established by Indian Government.
A. 1946 160. Which one of the following is NOT with
B. 1950 in the duties of the Planning Commission?
[NDA 2003]
C. 1930
D. 1992 A. To define the stage of growth and sug-
gest allocation of resources
155. In which five year plan Private sector got
B. To make an assessment of the mate-
priority ove republic sector for the first
rial, capital and human resources of the
time.
country
A. 8th
C. To determine the nature of machinery
B. 6th required for implementation of plan pro-
C. 7th posals
D. 11th D. To prepare the annual central budget
156. The has been designatedas Ex-Officio 161. State true or false Most of the develop-
Chairman of the PlanningCommission ment decisions involved political judgment
A. Prime Minister and required consultation among political
B. President parties and approval of the public
C. Government A. True
D. Finance Minister B. False

162. Indian Parliamentary System is based on 168. When we produce a good by exploiting
which model? natural resources, it is an activity of the:
A. Westminster model A. Secondary sector
B. Welfare State model B. Tertiary sector
C. Both a & b
C. Primary sector
D. Neither a nor b
D. Organised sector
NARAYAN CHANGDER
163. Largest reserve of Iron ore
169. refers to contracting out some of the
A. Orrisa
activities of the organisation to a third
B. MP party which were previously performed by
C. Delhi itself.
D. UP A. Outsourcing
164. which of the following is a stock vari- B. Globalisation

able? C. Privatisation
A. interest on capital
D. FDI
B. distance between delhi and manali
C. expenditure of money 170. The final approval to the Five Year Plans
of India is given by:
D. all of these
A. NITI Aayog
165. Accepting deposits from individuals or
firms and providing loans to the public are B. President of India
the basic function of C. National Development Council
A. Financial institution. D. Ministry of Finance
B. Commercial banks.
171. Fixing the maximum size of land that
C. Insurance company.
could be owned by an individual is called
D. Bank Negara Malaysia.
166. Aim of sixth five year plan was A. Land Ownership

A. Employment generation B. consolidation of land holding
B. Self reliance In food grain C. Land Ceiling
C. Technological self reliance
D. Land division
D. Focus on rural infrastructure
172. Abolition of intermediateries and Land
167. Who appoints the Vice-Chairperson of
ceiling are part of
NITI Aayog?
A. Industrial reforms of India
A. The Prime Minister
B. The President B. External sector reforms in India
C. The Chief Executive Officer C. Land reforms in India
D. The Finance Minister D. Banking reforms in India

173. In the context of India’s Five Year Plans, 178. How many fundamental duties does an
a shift in the pattern of industrialization, Indian citizen have?
with lower emphasis on heavy industries

and more on infrastructure begins in [IAS
2010]
A. fourth Plan
B. sixth Plan
C. eighth Plan
D. tenth Plan A. 10
B. 11
174. Match the following. : [UP PCS 1994]
C. 12
A. First Plan 1. Rapid industrialisation D. 13
B. Second Plan 2. Community Development Programme
C. Third Plan 3. Expansion of basic industries 179. Dadabhai Naoroji theorised on the drain
D. Fourth Plan 4. Minimum Needs Programme of wealth from India in his book:
E. Fifth Plan 5. Achievement of self-reliance and growth with stability
A. Poverty under British Rule in India
B. Poverty in British Rule in India
A. A − 1, B − 2,C − 3, D − 4, E − 5 C. Poverty and Un-British Rule in India
B. A − 2, B − 1,C − 3, D − 5, E − 4 D. Poverty of Economic Drain in British In-
C. A − 2, B − 1,C − 3, D − 4, E − 5 dia
D. A − 2, B − 1,C − 4, D − 5, E − 3
180. The 11th Five Year Plan strategy to raise
175. net investment is equal to agricultural output envisages which of the
following?
A. gross investment +depreciation
1. Greater attention to land reforms.
B. gross investment-depreciation
2. Double the rate of growth of irri-
C. gross investment xdepreciation gated area.
D. none of above 3. Promote animal husbandry and fish-
ery.
176. Which five year plan was based on the 4. Interest free credit to the farm-
P.C Mahalanobis model? ers. Select the correct answer [CDS
A. 1st five year plan 2008]
B. 2nd five year plan A. 1 and 2 only
C. 3rd five year plan B. 2 and 3 only
D. 4th five year plan C. 1, 2 and 3
177. Which state has no Panchayati Raj Insti- D. 2 and 4 only
tution?
181. The steel plants at Durgapur, Bhilai and
A. Mizoram Rourkela were established during the pe-
B. Manipur riod of: [NDA 1990]
C. Nagaland A. First Five Year Plan
D. Jarkhand B. Second Five Year Plan

C. Third Five Year Plan 187. Adoption of new technogy in production

is called
D. Fourth Five Year PIan
A. Equity
182. Which of the following was initiated by B. Growth
the Government under Liberalisation?
C. Modernisation
A. Denationalisation
D. Self Reliance
B. Decentralisation
NARAYAN CHANGDER
188. Construction of a bridge comes under
C. Demonetisation
which sector?
D. Dereservation of industries A. Primary
183. Who gives the final approval to the five- B. Secondary
year plans of India? C. Tertiary
A. National Development Council (NDC) D. Any other sector not mentioned here
B. Ministry of Finance 189. Father of White revolution
C. Planning Commission (now NITI A. Sardar Patel
Aayog)
B. Verghese Kurien
D. President of India
C. Mahatma Gandhi
184. Inclusive growth is mentioned in which D. K.N. Raj
five year plan?
190. Among the achievements of Indian plan-
A. 12th ning, we may include:
B. 11th 1. development of strong infrastruc-
C. 10th ture
2. diversification of industry and ex-
D. 9th ports
3. high growth of national income
185. Which five year plan’s focus was 4. strong control over prices
“growth with justice and equity”
A. 1 and 2
A. 9th five year plan
B. 1, 2 and 3
B. 10th five year plan
C. 1, 2 and 4
C. 11th five year plan D. 2 and 3
191. Which of the following was NOT a criti-
186. How many sessions of the Lok Sabha cism of the 2nd and 3rd FYP?
take place in a year? A. Urban bias-the industry was wrongly
A. 2 given priority over agriculture
B. Focus on agriculture over heavy indus-
B. 3
try
C. 4
C. Lack of an agrarian strategy for the de-
D. 5 velopment

D. Emphasis on industry caused agricul- 197. The value of all final goods and services
ture and rural India to suffer produced within a country during a partic-
ular year is called as:

192. When was Navratna Policy announced
A. Gross Domestic Product
A. 1992
B. Net Domestic Product
B. 1991 C. National Product
C. 1995 D. Production of Tertiary Sector
D. 1996
198. NITI Aayog established in the year
193. Improving INternational competitveness A. 2012
of Products of a country is a part of:- B. 2013
A. Structural Measures C. 2014
B. Stabilization Masures D. 2015
C. Short Term Measures
199. What are the years of India’s 12th five-
D. Part of Globalisation year plan?
194. The first five year plan was launched for A. 1997-2002
a period from B. 2002-2007
A. 1948-1953 C. 2007-2012
B. 1959-1954 D. 2012-2017
C. 1951-1956 200. 5-Section 115JB relates to
D. 1955-1960 A. Securities Transaction Tax
B. Maximum Alternative Tax
195. Which of the following statements is cor-
rect? [AAO 1993] C. Minimum Alternative Tax
A. Planning Commission is a constitu- D. Surcharge
tional body 201. Which of the following is a subject matter
B. The Prime Minister is the Chairman of of Macroeconomics?
the Planning Commission A. Studies Employment & Unemployment
C. The Minister of Planning is always nec- B. Determination of National Income
essarily the Deputy Chairman of Planning
C. Promotes Economic Growth & Devel-
Commission
opment
D. The draft plan is prepared by the Na-
D. All of the above options
tional Development Council
202. Who is regarded as the architect of Indian
196. In which year is NABARD formed? Planning?
A. 1980 A. Prasanta Chandra Mahalnobis
B. 1979 B. V K R V Rao
C. 1991 C. P S Mahalnobis
D. 1982 D. Pt. Jawahar Lal Nehru

203. The father of high yielding variety seeds C. Budget

is considered to be Norman Borlaug.
D. All of the above
A. True
B. False 209. The Second Five Year Plan laid more
stress upon:
204. Subsidies are
A. agriculture
A. rights to increase trade with Great
Britain and her colonies B. industrialisation
NARAYAN CHANGDER
B. extra payments or bonuses to grow or C. removing poverty
produce certain crops. D. self-reliance
C. permission to trade directly with other
countries. 210. What was the immediate crisis India
faced in the beginning of the 1990s
D. land payments which made it easier to
remain in the colony. A. Inflation
205. Domestic income is greater than National B. Debt Trap

Income if C. Foreign exchange crisis
A. NFIA is positive D. All of the above
B. NFIA is zero
211. The National Development Council gets
C. NFIA is negative
its administrative support from:
D. None of these.
A. Planning Commission
206. Who made first attempt in laying foun- B. Finance Commission
dation for economic planning in India in
1934? C. Administrative Reforms Commission
A. Vishveshwarya D. Sarkaria Commission
B. Amartya Sen
212. The Planning Commission in India was set
C. Jawaharlal Nehru up in:
D. S.C Bose A. 1953
207. The deputy chairman of the Planning Com- B. 1957
mission: [UP PCS 1994]
C. 1950
A. is the Prime Minister
D. 1951
B. is the Planning Minister
C. holds the rank of a cabinet minister 213. Which of the following system is fol-
lowed by RBI for issuing currency?
D. is an economist of repute
A. Proportionate system
208. NITI Aayog is planning a new framework
for B. Simple deposit system
A. Five-Year Plans C. Minimum reserve system
B. Finance Commission D. Fixed fiduciary issue system

214. What is the Cash Reserve Ratio (CRR)? 218. According to IPR 1956 the industries in
A. the fraction of the deposits that com- which private sector could supplement the
mercial banks lend to the customers efforts of the state sector comes under

which category?
B. the fraction of the deposits that RBI
must keep with commercial banks A. First category
C. the fraction of the deposits that com- B. Second category
mercial banks must keep with RBI C. Third category
D. none of above D. Fourth category
215. Economic planning is a boundpro- 219. How many industries have been reserved
gramme to achieve certain objectives for the public sector under Industrial Policy
A. time Resolution, 1956?
B. money A. 17
C. subject B. 21
D. none of them C. 15
216. What type of money would this be? D. 2
220. MGNREGA was implemented in

A. 1990
B. 1998
C. 2000
D. 2005
A. Commodity 221. India’s economic planning CANNOT be
B. Fiat said to be : [NDA 2002]
C. Representitive A. indicative
D. Gold B. imperative
217. Put in chronological order the follow- C. limited

ing Special features/objectives of differ- D. democratic
ent Five Year Plans as they were first for-
mulated: 222. The basic objectives of Indian planning
are:
1. Mahalanobis strategy
2. Modernisation 1. economic growth
3. Removal of Poverty 2. self-reliance
4. Emphasis on employment genera- 3. employment generation
tion 4. population growth
A. 1,2,3,4 A. 1, 2 and 4
B. 2,1,3,4 B. 1, 2 and 3
C. 1,3,2,4 C. 2 and 3
D. 3,4,1,2 D. 1, 2, 3 and 4

223. Which of the following could be said to B. The nature of economic activities
have prevented the ’trickle down’ effects C. Number of workers employed
in Indian economy?
D. Ownership of enterprises
1. Increased dependence of agriculture
on purchased inputs and privately 228. The Government of India replaced the
managed irrigation Planning Commission with a new institu-
2. More employment of labour by tion of
larger landholding farmers A. NITI Aayog
NARAYAN CHANGDER
3. Lowered participation of women in
B. National Development Council
agricultural workforce due to new
technology C. National Institute of Development
4. The failure of the Green Revolution D. None of these
A. 1 and 2 229. In which of the Five Year Plans, prefer-
B. 2 and 3 ence was given to the weaker sections of
C. 1 and 3 the society ?
D. 2 and 4 A. Second
B. Third
224. If the reserve requirement is 10% and I
put in $100, what is the amount a bank C. Fourth
can loan out? D. Fifth
A. $80 230. NO.7 THE NEW AGRICULTURE STRATEGY
B. $90 WAS ADOPTED IN INDIA DURING THE
C. $72 A. 3 PLAN
D. .9 B. 4 PLAN
C. 2 PLAN
225. British rule lasted for almost for
years. D. 5 PLAN
A. 100 years 231. Tariffs and quotas adopted under foreign
B. 50 years trade policy during 1950-1990 was to:
C. 200 years A. increase exports

B. increase foreign competition
D. 300 years
C. restrict imports and protect domestic
226. Money that can be directly used for trans- industries from foreign competition
action is
D. make exported goods cheaper
A. near money.
232. Money which is accepted as a medium
B. broad money.
of exchange because of the trust between
C. M1. the payer and the payee is called
D. M2. A. Full bodied money
227. The sectors are classified into public and B. credit money
private sector on the basis of: C. Fiat money
A. Employment conditions D. fiduciary money

233. The state which has achieved nearly total B. Dr. Bhimrao Ambedkar
literacy in India:
C. Jawaharlal Nehru

A. Tamil Nadu
D. Rajender Prasad
B. Kerala
C. Andhra Pradesh 238. The Orissa govt hopes to extract iron ore
from the state.2. Orrisa govt has signed
D. Manipur
MOU with domestic steelmakers.
234. Which ministry is entrusted with the for- A. Only 1
mulation of National Income?
B. Only 2
A. Ministry of Finance
C. Both
B. Ministry of Human Resource & Devel-
opment D. None
C. NITI Aayog
239. Assertion:Development has different
D. Ministry of Statistics and Programme meanings for different sections of the peo-
(CSO) ple. Reason:Development for one may be
a disaster for other
235. The main aim of 1 FYP?
A. To set up IT industries in the country
rect explanation of A
B. To focus mainly on the agrarian sec-
tor (investment in dams and irrigation and B. Both A and R are true and R is NOT the
raise national income level) correct explanation of A
C. Focus on women welfare and safety C. A is true but R is false

D. Look after the need of minorities D. A is false but R is true
236. Who is regarded as the father of eco- E. Both A and R are false
nomic planning in India?
240. Which of the following steps promoted
A. SIR M. VISVESVARAYA the growth of the economy as a whole by
B. Alfred Marshall stimulating the development of industrial
and tertiary sectors?
C. Adam Smith
D. John Keynes A. Independence
B. Planning
237. Who suggested the name of ‘Lok Sabha’
and ‘Rajya Sabha’? C. Colonial rule
D. Green revolution
241. Transfer of value has become easier with

A. evolution of money
B. storage of money
C. measure of value
A. Ganesh Vasudev Mavalankar D. all of these

242. Which organisation replaces Planning B. consumption, resale

Commision in India? C. resale, investment
A. CSO D. resale, further production
B. NSSO
248. Money is the most liquid of all the asset
C. NITI Ayog because
D. RBI A. it is a medium of exchange
NARAYAN CHANGDER
243. is an indirectly elected body B. it is an unit of account
A. Lok Sabha C. it act as a store of value
B. Supreme Court D. it is a standard of deferred payment
C. Rajya Sabha
249. Which of the following is intermediate
D. High Court product?
244. Put in chronological order A. Pulses purchased by consumers
1. Constitution of National Planning B. Machine purchased by a firm
Committee -by the Indian National C. Wheat used by flour mill
Congress under Jawaharlal Nehru
D. Wheat used by household.
2. Planned Economy for India by
Visvesvaraya published 250. Who was the chairperson of the planning
3. Bombay Plan commission after independence?
4. Setting up of the National Develop-
A. Gandhi Ji
ment Council
B. Sardar Patel
A. 1, 2, 3, 4
B. 3, 2, 4, 1 C. Jawaharlal Nehru
C. 2, 3, 1, 4 D. Lal Bahadur Shastri
D. 2, 1, 3, 4 251. The Indian national highway system was

introduced for the first time in Five
245. Functions of NITI Aayog is a Year Plan.
A. Centralized Planning A. 4th
B. Decentralized Planning B. 5th
246. During which five year plan, New Eco- C. 6th
nomic Policy of India was introduced? D. 7th
A. 5th five year plan
252. was the rate of growth of per capita
B. 6th five year plan output per year during the first half of the
C. 7th five year plan 20th century
D. 8th five year plan A. 0.5 %
247. final goods refer to those goods which B. 1 %

are used either for or for C. 1.5%
A. consumption, investment D. 2%

253. NITI Aayog’s governing council does not C. P.C Mahalanobis

comprises of D. Jawaharlal Nehru

A. CMs of all states
259. classification of goods depend on the
B. CMs of UT with legislatures (i.e Delhi
and Puducherry) A. consumption of goods
C. Lt. Governors of UT B. end use
D. Governors of all states C. first use
254. Gross National Happiness Index (GNHI) D. none of these
traced its origin
260. The growth rate of agricultural produc-
A. Nepal tion was negative in the:
B. Myanmar
A. First Plan
C. India
B. Second Plan
D. Bhutan
C. Third Plan
255. Which of the following is an example of D. Fourth Plan
micro Economics study
A. National Income 261. The Draft of 5th five year plan was pre-
pared and launched by
B. Consumer behavior
A. Dr. B.R Ambedkar
C. Unemployment
D. Foreign trade B. D.P. Dhar
C. Indira Sawney
256. Which statement is correct for Indian
Planning Commission? D. J.P Kriplani
A. It is not defined in Indian Constitution 262. The british turned the Indian economy
B. Members and Vice-Chairman of it do into supplier of raw material and consumer
not have fixed working duration of british industrial goods. this is the fea-
ture of which economy
C. Members do not require any minimum
education A. colonial
D. All of the these B. stagnant
257. those goods which satisfy human wants C. amputated
directly are called? D. semi feudal
A. intermediate goods
263. Left often refers to those who are in fa-
B. capital goods vor of the rich. 2. Left support govt poli-
C. consumer goods cies for the benefit of poor sections
D. none of these A. Only 1
258. Who was the crafter of Second FYP? B. Only 2
A. K.N Raj C. Both
B. B.R Ambedkar D. None

264. 70% of working population of India is B. foreseen obsolescence

engaged in:
C. normal wear and tear and foreseen ob-
A. public sector solescence
B. primary sector D. none of these
C. secondary sector
D. tertiary sector 269. In which of the following type of econ-
omy are resources owned privately and
265. What possess general acceptability? the main objective behind economic activ-
NARAYAN CHANGDER
A. Bank draft ities is profit-making?
B. Money A. Capitalist
C. Bill of exchange B. Socialist
D. none of above C. Mixed
266. What is the correct sequence of the fol- D. Global
lowing strategies used for Five Year Plans
in India? 270. During which Plan did prices show a de-
cline?
1. Balanced growth
2. Rehabilitation of the economy A. First
3. Industrial development
B. Third
A. 1, 3, 2
C. Fifth
B. 2, 1, 3
C. 2, 3, 1
D. 3, 2, 1 271. Which of the following statement is cor-
rect about the NITI Aayog?
267. Which of the following statements about
the Indian Economy is correct? [RBI Grade A. NITI Aayog was Formed 25 January
B Officer 2011] 2016
A. Indian economy is as developed as B. NITI Aayog comes under the Ministry
that of China. of Commerce and Industry
B. About 70% Indians are involved in C. The full form of NITI Aayog is National
some type of self-employment and are the institute for Transforming India
owners of some or the other micro or
small enterprise. D. The NITI Aayog is a policy think tank of
the Government of India
C. In India, single biggest employment is
agriculture and allied activities. 272. Which of the following is an example of
D. About 48% Indian workforce is em- transfer income
ployed in foreign countries or in organiza-
A. Bonus
tions assisted by foreign capital.
B. Unemployment allowance
268. depreciation of fixed capital assets refers
to? C. Compensation of employees
A. normal wear and tear D. All of above

273. The strategy of Rolling plan was adopted C. USE OF MANURES

during the Prime Ministership of: [Rail- D. HYV SEEDS
ways 1994]

A. Lal Bahadur Shastri 279. What was India’s role during the
Bangladesh war, 1971?
B. Indira Gandhi
A. It provided shelter to about 80 lakh
C. Morarji Desai Bengali refugees.
D. Rajiv Gandhi B. Gave moral and military support to the
freedom movement in Bangladesh.
274. Who is the Deputy Chairman of Planning
Commission? C. India’s foreign policy reflected her de-
sire to be an important regional power.
A. Prime Minister
D. none of above
B. Finance Minister
C. Commerce Minister 280. Which one of the following is the correct
sequence in the decreasing order of contri-
bution of different sectors to the Gross Do-
275. In which year was the operation flood mestic Product of India ? [IAS 2007]
started? A. Services-Industry-Agriculture
A. 1971 B. Services-Agriculture-Industry
B. 1977 C. Industry-Services-Agriculture
C. 1980 D. Industry-Agriculture-Services
D. 1970 281. During 1965-67 which state faced a
276. Mahalanobis Modal was started in near-famine situation?
Five year plan. A. Tamil Nadu
A. First B. MP
B. Second C. Bihar
C. Tenth D. Manipur
D. Eleventh 282. find the odd one out
277. The 5-year plan was adopted in India A. teacher
from: B. doctor
A. USA C. vegetable vendor
B. Japan D. lawyer
C. United soviet socialist republic
283. A person who starts a business to pro-
D. Australia duce a new product in the marketplace is
known as:
278. NO.18 GREEN REVOLUTION RESULTING
FROM A. A manager.
A. NONE B. A bureaucrat.
B. TRADITIONAL IRRIGATION FACILI- C. An entrepreneur.
TIES D. Consumer

284. 2-A company which is neither an Indian 290. Which 5-year plan failed in its target due
company not has made the prescribed ar- to Indo-china war and is also known as
rangements for the declaration and pay- ‘Gadgil Yojana’?
ment of dividends within India is called A. 1st five year plan
B. 2nd five year plan
A. Domestic Company
C. 3rd five year plan
B. Foreign Company
NARAYAN CHANGDER
C. Public sector company
D. Provincial company 291. India adopted the economic system.
A. Capitalist
285. India has: [CDS 1992]
B. Mixed
A. Socialistic economy
C. Socialist
B. Gandhian economy
C. Mixed economy
D. Free economy 292. Which of the following gives an accu-
rate measurement of economic develop-
286. What is needed to provide protection ment through Five Year Plans?
against natural calamities like floods, A. Development of education and health
drought, locusts, thunderstorms, etc.? services
A. Multiple cropping B. Development of railways and road-
B. Green revolution ways
C. Crop insurance C. Rise in national income and per capita
income
D. HYV
D. Development of industrial towns and
287. GDP is also know as National Income industrial estates
A. True
293. Which of the following may be termed as
B. False long-term objectives of Indian planning?
288. What type of economy is followed in In- 1. Self-reliance
dia? 2. Productive employment generation
3. Growth of 7 per cent per annum
A. Communist
4. Growth in infrastructure
B. Capitalist A. 1 and 2
C. Mixed Socialist B. 3 and 4
D. None of these C. 1, 2 and 4
289. Economic growth can be measured by D. 2, 3 and 4
A. The CPI 294. NITI Aayog is based on the following no.
B. The CBI of pillars of effective governance
C. GDP A. 6
D. MPC B. 7

C. 8 300. The members of Parliament can express

D. 9 themselves in the House in

A. English only
295. is the rate at which commercial banks
B. Hindi only
borrow short term funds from the central
bank by selling their financial securities to C. English or Hindi
the central bank D. English, Hindi or mother tongue
A. CRR
301. The colonial government never made
B. SLR any sincere attempt to estimate India’s
C. Bank rate national and per capita income. Who
among the following were the Indian es-
D. Repo rate timators who attempted to measure such
incomes?i) Dadabhai Naoroji ii) William
296. WHO IS THE FATHER OF MACRO ECO- Digby iii) V.K.R.V. Rao iv) Motilal Nehru
NOMICS
A. I and ii
A. P SAMUELSON
B. i and iii
B. J M KEYNES
C. i, iii and iv
C. ADAM SMITH
D. none of above
D. MALTHUS
302. The Public Distribution System helps dis-
297. 3-Tonnage tax system is exclusively in- tribute
tended to A. grains
A. Joint stock Companies B. vegetables
B. partnership firms C. electricity
C. Shipping Companies D. clothing
D. IT Companies
303. Who of the following was the author of
298. The contribution of agriculture to India’s’ the chapter on “Objectives of Planned De-
economy is: velopment” for the Third Five Year Plan?
[IAS 2008]
A. increasing
A. Morarji Desai
B. decreasing
B. C.D. Deshmukh
C. constant
C. Jawaharlal Nehru
D. None of these D. Lal Bahadur Shastri
299. The principal obstacle in the way of agri- 304. Under whose leadership were the private
cultural growth was the banks nationalized?
A. people’s attitude A. Jawaharlal Nehru
B. status of Zamindars B. Lal Bahadur Shastri
C. the pattern of land distribution C. Indira Gandhi
D. heath of farmers D. Rajiv Gandhi

305. The Planning Commission of India: 310. Which one of the following Five-Year
Plans recognised human development as
I. was set up in 1950
the core of all developmental efforts?
II. is a constitutional body
[IAS 1995]
III. is an advisory body
IV. is a government department. A. The Third Five-Year Plan
A. I and II B. The Fifth Five-Year Plan
B. II and III C. The Sixth Five-Year Plan
NARAYAN CHANGDER
C. I and III D. The Eighth Five-Year Plan
D. III only 311. Rolling plan was in between
306. Competition and free enterprise are most A. 3rd and 4th five year plan
common in which type of economic sys- B. 4th and 5th five year plan
tem?
C. 5th and 6th five year plan
A. A traditional
D. 6th and 7th five year plan
B. B market
C. C communist 312. traditional industries was India par-
ticularly well known for before the advent
D. D planned of the british rule.
307. Which of the following is not a long pe- A. chemical industry

riod objective of planning in India? B. handicraft industry
A. GDP growth C. jute industry
B. Full employment D. steel industry
C. Better quality of life
313. In which year was the Planning commis-
D. Equitable distribution sion set up in India?
308. Who is the chairperson of the Planning A. 1947

commission? B. 1948
A. Prime Minister C. 1949
B. President D. 1950
C. Chief Minister 314. Which of the following is correct about
D. Governor the planning in India?
A. Mixed Economy has been the frame-
309. Which of the following is included in ter-
work of planning in India
tiary sector?
B. The duration of the Twelfth Five Year
A. ATM booths
Plan was 2012-17
B. Call centres
C. Planning in India with a heavy reliance
C. Internet cafe on the public sector.
D. All of them D. All of these.

315. The decentralisation system was recom- A. 1, 2 and 4

mended by : B. 1 and 2

A. C.Rajagopalachari C. 1, 2, 3 and 4
B. J.B. Kripalan D. 2, 3 and 4
C. Balwant Rai Mehta
320. Which of the following explains the term
D. Ashok Mehta economic growth?
316. Capitalist Economy is controlled and oper- A. Increase in per capita production
ated by B. Increase in per capita real income
A. Private sector C. Structural change in the economy
B. Public sector D. All of the above
C. Both A and B 321. 10-Which of the following is an objective
D. None of the above of tax management?
A. Minimize litigation
317. Which Gandhian economist proposed an
alternative blueprint that put greater em- B. Productive investment
phasis on rural industrialization: C. Compliance with legal formalities
A. Sardar Patel D. Healthy growth of economy
B. Tiwari Ji 322. Which of the following is not the subject
C. Kumarappa matter of macroeconomics?
D. Gandhi Ji A. National Income Accounting
B. Business cycle
318. Which of the following plan is based on
the “Gandhian plan”? C. Laws of demand and supply
A. Congress plan & Bombay plan D. General price level
B. S.N Agarwal plan & J.P Narayan plan 323. Which of the following is/are a/ an indi-
cator of the financial health of a country?
C. Vishveshwarya plan & M.N Roy plan
[UBI PO 2010]
D. none of above
1. GDP
319. Indicative Planning being pursued in India 2. PPP
since the 8th Plan aims at ensuring that: 3. FDI in a year
1. Planning mechanism plays a facilita- A. Only 1

tory role B. Only 2
2. Planning mechanism brings about a C. Only 3
balance between need and supply
3. Planning mechanism concerns itself D. All 1, 2 & 3
with optima! utilisation of resources 324. The service sector includes activities such
4. Planning concerns itself with laying as:
down broad directions in which the
economy should move Choose the A. agriculture, dairy, fishing and forestry
correct answer from: B. making sugar, gur and bricks

C. transport, communication and banking 330. When was NITI Aayog established?
D. None of these A. 1 January 2015
B. 25 January 2016
325. In India, the Public Sector is most domi-
C. 14 May 2014
nant in : [IAS 1993]
D. 1 July 2015
A. transport
B. steel production 331. ’Globalisation of Indian Economy’
means:
NARAYAN CHANGDER
C. commercial banking
A. stepping up external borrowings
D. organised term-lending financial insti- B. establishing Indian business units
tutions abroad
326. Equity as a goal of planning aims to C. having minimum possible restrictions
achieve the following objectives: on economic relations with other coun-
tries
A. Reduction in economic inequalities
D. giving up programmes of import sub-
B. Curbing concentration of economic stitution
power
332. Microeconomics is concerned with:
C. Uplifting the weaker sections of soci-
ety 1. behaviour of industrial decision-
makers
D. All of these 2. the level of employment
3. changes in the general level of prices
327. In case of credit money 4. determination of prices of goods and
A. money value=commodity value services
B. money value>commodity value A. 1 and 2
B. 2 and 3
C. money value<commodity value
C. 3 and 4
D. none of these
D. 1 and 4
328. The economic term used to rank countries
333. Which of the following is not a function
according to human development is
of central bank
A. GDP Per Capita A. Banker’s supervisor
B. GNP B. Lender of last resort
C. Gini C. Money creation
D. HDI D. Controller of credit
334. The Chairman of the National Develop-
329. Which of the following is stock
ment Council is:
A. Wealth
A. President of India
B. Savings B. Finance Minister of India
C. Exports C. Prime Minister of India
D. Profits D. Chief Minister of U.P.

335. When was the planning commission set 340. .... is the ex-officio chairman of Plan-
up? ning Commission and National Develop-
ment Council.

A. 1949
B. 1950 A. Prime Minister
C. 1951 B. President
D. 1850 C. Finance Minister
D. Commerce Minister
336. During which Five Year Plan was the total
expenditure on agriculture the highest? 341. Self-reliance in the economic context im-
A. First Five Year Plan plies that a country:
B. Second Five Year Plan 1. meets its demands for all goods and
C. Third Five Year Plan services from its domestic produc-
tion
D. Fourth Five Year Plan 2. exports some of its goods but does
337. 8-Concealment of income or false claims not need to import anything
to reduce tax liability are cases of 3. has sufficient foreign exchange re-
serves to buy all its needs
A. Tax evasion 4. meets its demand for certain vital
B. Tax planning goods and services from its domes-
C. Tax avoidance tic production
D. Tax management A. 1 and 3
B. 2 and 4
338. What was the name given to the model
of decentralized planning adopted by the C. 1, 2 and 3
southern state of India? D. 3 and 4
A. Kerala Model
342. When was New Economic Policy intro-
B. Tamil Nadu Model duced in India
C. Andhra Pradesh Model A. 1991
D. Karnataka Model B. 1981
339. Which of the following is NOT a function C. 1995
of the Planning Commission of India? [RBI
D. 2000
Grade B Officer 2011]
A. Assessment of the material, capital 343. Match the following : [CDS 2011]
and human resources of the country
Five Year Plan Emphasis
B. Formulation of plans for the most ef-
A. First 1. Food Security and women empowerment
fective and balanced utilization of coun-
B. Second 2. Heavy industries
try’s resources
C. Fifth 3. Agriculture and community development
C. Public cooperation in national develop- D. Ninth 4. Removal of poverty
ment
D. Preparation of annual budget of the
country and collection of taxes to raise A. A − 1, B − 2,C − 4, D − 3
capital for the implementation of the plans B. A − 3, B − 2,C − 4, D − 1

C. A − 1, B − 4,C − 2, D − 3 349. National Planning Commission was set up

D. A − 3, B − 4,C − 2, D − 1 in
A. Congress plan
344. Who is the governor of RBI at present.
B. Bombay plan
A. Urjit Patel
C. People’s plan
B. Shakti Kant Das
C. Raghuram Rajan D. JP Narayan plan
NARAYAN CHANGDER
D. Manmohan Singh 350. The Planning Commission is : [UP PCS
1994]
345. National Development Council is consists
of A. a Ministry
A. Members of the Planning Commission B. a Government department
B. Governors of the states C. an Advisory body
C. Chief Ministers of the states D. an Autonomous Corporation
D. a & c
351. Which of the following is not the function
346. The opening of suez canal in 1869: of the NITI Aayog?
A. raised the cost of goods transporta- A. To evolve a shared vision of national
tion between Britain and India development priorities sectors and strate-
B. reduced exports of goods from India to gies
foreign countries B. To foster cooperative federalism
C. reduced the cost of transportation be- C. To give final approval to the Five Year
tween Britain and India Plans of India
D. Adversely affected Britain’s monopoly D. To create a knowledge, innovation and
control of india’s trade entrepreneurial support system
347. Which is not the initiatives of NITI
352. Government owns most of the assets and
Aayog?
provides all the services:
A. Atal Mission Rejuvenation & Urban
A. Private Sector
Transform (AMRUT)
B. Digital India B. Public Sector
C. Make in India C. Organised Sector

D. Medical Education Reforms D. Tertiary Sector
348. which instrument(s) is/are used to re- 353. Which of the following features indicate
strict imports? that Indian economy is of the developing
A. Quota category?
B. Tariff I. Occupation mainly agricultural

II. Chronic unemployment
C. Both Quota & Tariff III. Poor quality of human capital
D. None of these IV. Low per capita intake of proteins

A. I, II and III C. A is true but R is false

B. I and IV D. Both A and R are false

C. II and III 358. 7-How much percentage of income from
D. I, II, III and IV the manufacture of tea is considered as
business income.
354. If you budget, you don’t just spend or
save, you plan your A. 10%
B. 20%
C. 30%
D. 40%
359. ‘Modernisation’ as a goal of planning in

the context of Indian economy aimed at:
A. responsible A. Use of new technology
B. expenses B. Change in social outlook
C. poor C. Adopting western life style
D. rich D. Both (a) and (b)
355. How were the third category of indus- 360. refers to disposal of equity of public
tries allocated to private sector kept under sector units in the market.
state control? A. Disinvestment
A. allocation of capital goods B. Privatisation
B. industrial licensing C. Liberalisation
C. state distribution of goods
D. Globalisation
D. procurement of goods by government
only 361. Who presented the 1st 5-year plan of the
country?
356. India joined UN in which year?
A. Pt. Jawahar Lal Nehru
A. 1945
B. Sardar Ballabh Patel
B. 1946
C. Dr. Rajendra Prasad
C. 1947
D. None of these
D. 1948
362. Why did the government set up a plan-
357. Assertion:Tribal people are against the ning commission in 1950?
mining of iron ore in Orissa Reason:The
tribal population fears that the setting up A. to help design and execute suitable
of industries will cause displacement from policies for economic development
their home and livelihood B. to help design and execute suitable
A. Both A and R are true and R is the cor- policies for social development
rect explanation of A C. to help design and execute suitable
B. Both A and R are true and R is NOT the policies for political development
correct explanation of A D. none of above

363. Why does public sector plays an impor- C. 12th

tant role during planning period? D. 9th
A. Market was not big enough to encour-
369. The main objective of First Five-year Plan
age prive industrialists
was:
B. Private industrialists lack with capital A. industrial growth
to invest
B. economic growth
C. Policy makers tried to develop Indian
C. development of agriculture including
NARAYAN CHANGDER
economy on socialistic lines
irrigation and power projects
D. All of these
D. self-reliance
364. The pair of notes demonetized 370. Who is not a member of national devel-
A. 500, 2000 opment council?
B. 500, 1000 A. Prime minister
C. 1000, 2000 B. Chief minister
D. none of above C. Governers of state
D. Members of planning commission
365. In a closed economy is not included
371. The production decision under which eco-
A. Household
nomic system is based upon the market
B. Firms forces of demand and supply?
C. Government A. Mixed economy
D. Foreign sector B. Capitalist economy
C. Socialist economy
366. A “closed economy” is an economy in
which [CSAT 2011] D. None of these
A. the money supply is fully controlled 372. Economic liberalisation in India was initi-
ated in 1991 by Prime Minister and
B. deficit financing takes place
his then-Finance Minister
C. only exports take place
A. P. V. Narasimha Rao, Dr. Manmohan
D. neither exports nor imports take place Singh.
367. Which one of these is a central problem B. P.V Narasimha Rao, Inder Kumar Gu-
of an Economy? jral
A. What to produce C. P.V Narasimha Rao, Madhav Rao

Scindia
B. How to produce
D. P.V Narasimha Rao, Ghulam Nabi Azad
C. For whom to produce
373. In which Plan was the growth rate target
D. All of the above exceeded?
368. Sustainable growth in mentioned in A. First
which five year plan? B. Fifth
A. 11th C. Sixth
B. 10th D. None of these

1.2 Poverty, Unemployment,and Alleviation Programmes 39
374. “Garibi Hatao” was a the main objective 379. Which one of the following is the task of
of which five year plans. the Planning Commission? [NDA 1991]

A. 3rd A. Preparation of the plan
B. 2nd B. Implementation of the plan
C. 5th C. Financing of the plan
D. 8th D. Both A and B
375. In India, the concepts of “minimum 380. Nehru was our first Prime Minister as
heeds” and “directed anti-poverty pro- well as
grammes” were the innovations of: [CDS A. Health Minister
2004] B. Foreign Minister
A. Fourth Five-year Plan C. Education Minister
B. Fifth Five-year Plan D. Finance Minister
C. Sixth Five-year Plan
381. Who is called the ’Father of Economics’
D. Seventh Five-year Plan ?
A. Max Muller
376. Who was the last deputy chairman of the
Planning Commission? B. Karl Marx
A. Shri Pranab Mukherjee C. Adam Smith
B. Montek Singh Ahluwalia D. None of these
377. Which plan was presented by 8 lead- 382. Who is vice Chairperson of Niti Aayog
ing industrialists as a 15 year Investment A. Prof Ramesh Chand
plan? B. Dr Rajiv Kumar
A. Congress plan C. Shri V.K Saraswat
B. Bombay plan D. Dr V.K Paul
C. People’s plan
383. Which of the following was not the objec-
D. J.P Narayan plan tive of the 12th Five-Year Plan?
378. The portion of agricultural produce that is A. To create 50 million new work opportu-
sold in the market by farmers is known as nities in the non-farm sector
B. To reduce malnutrition among children
aged 0-3 years
A. Trade deficit
C. To increase green cover by 1 million
B. Marketed surplus
hectares every year
C. Subsidy D. To bring down the fiscal deficit at 0%
D. Import substitution by 2015.
1.2 Poverty, Unemployment,and Alleviation Programmes

1. When was MRNREGP launched in India? II. The disguised unemployment in agri-
A. 2nd October 2005 cultural sector is perennial.
III. Industrialisation has rendered sev-
B. 2nd February 2005 eral people job-less in India.
C. 2nd February 2006 A. I and II
D. 15th August 2005 B. I, II and III
2. Absolute Poverty means: C. I only
NARAYAN CHANGDER
A. poverty in terms of absolute number of D. II and III
people
7. The Food For Work programme was re-
B. poverty in terms of the basic minimum named as:
calorie requirements
A. Rural Landless Employment Guarantee
C. poverty in terms of the prevailing price Programme (RLEGP)
level
B. National Rural Employment Pro-
D. poverty in terms of the absolute level gramme (NREP)
of unemployment
C. Jawahar Rozgar Yojana (JRY)
3. Cyclical unemployment refers to: D. Integrated Rural Development Pro-
A. seasonal unemployment gramme (IRDP)
B. disguised unemployment 8. Which of these programs has not been in-
C. voluntary unemployment cluded in the Swarna Jayanti Swarozgar
Yojana?
D. unemployment during recessionary
phase of a trade cycle A. IRDP
B. TRYSEM
4. During 2007-12, agriculture output has
grown at C. DWCRA
A. 3% D. JR
B. 3.2% 9. When was National rural employment
C. 2% guarantee act passed?
D. none of above A. in 2005
5. Which one of the following is the problem B. In 2004

of poverty alleviation Programmes? C. In 2000
A. Lack of resources D. None of the above
B. improper implementation 10. is an alternative marketing channel op-
C. Lack of infrastructure erated in Punjab
D. All of the above A. Hadaspar Mandi
6. Which of the following is/are correct? B. Apni Mandi
I. Bulk of unemployment in India is in C. Rythu Bazars

rural areas. D. none of above

11. Who amongst the following can take ben- 16. The Rural Landless Employment Guarantee
efit of the Social Security Fund established Programme (RLEGP) is an extension of:
by the Govt. of India for unorganized

A. Integrated Rural Development Pro-
workers? [SBI Associates Clerk 2011]
gramme (IRDP)
A. Primary school teacher
B. National Rural Employment Pro-
B. Employee of Sugar Factory gramme (NREP)
C. Textile Mazdoor C. Training of Rural Youth for Self Employ-
D. Rickshaw Puller ment (TRYSEM)
D. Minimum Needs Programme (MNP)
12. Which of the following is not a Poverty Al-
leviation Programme adopted by Govt. of 17. Poverty in India is estimated on the basis
India of the consumption expenditure data col-
A. Swarna Jayanti Gram Swarozgar Yojna lected by:
B. Mahatma Gandhi National Rural Em- A. CSO
ployment Guarantee Programme B. NSSO
C. Mission Indradhanus C. Planning Commission
D. Food for Work Programme D. NITI Ayog
13. The current anti-poverty strategy of the
18. Uzhavar Sandies is an alternative market-
government is based on
ing channels operated in
A. A. Promotion of Economic Growth
A. Telengana
B. B. Anti Poverty Programme
B. Punjab
C. Both A and B
C. TamilNadu
D. None of these
D. none of above
14. When the productive capacity of the eco-
nomic system of a State is inadequate to 19. Unemployment which occurs when work-
create sufficient number of jobs, it is called ers move from one job to another job is
[CDS 2012] known as : [IAS 1992]
A. seasonal unemployment A. seasonal unemployment
B. structural unemployment B. frictional unemployment
C. disguised unemployment C. cyclical unemployment

D. cyclical unemployment D. technological unemployment
15. Agricultural marketing is a process that in- 20. The people who never move above the
volves functions of poverty line are called
A. Storage A. Non Poor
B. Distribution B. Chronic Poor
C. Processing C. Churning Poor
D. All the above D. Usually Poor

21. What are accepted average calories re- C. Richest

quired in India in urban areas?
D. Poorest
A. 2400
25. Which of the following is the strategy for
B. 2100
effetive eradication of Poverty in India?
C. 2200
A. Process of Social Mobilisation
D. 2300
B. Empowering Poor People by encourag-
NARAYAN CHANGDER
22. The Govt. of India does not provide any ing them to participate in employment
direct financial assistance to which of the
C. Prividing infrastructure like schools,
following schemes? [SBI Associates Clerk
roads in the identified poverty striken ar-
2011]
eas.
A. Mahatma Gandhi National Rural Em-
D. All of these
ployment Guarantee scheme
B. Rural Health Mission 26. For which one of the following purposes,
C. Indira Aawas Yojana the Government has launched the Rajiv
Awas Yojana? [Punjab & Sindh Bank
D. Jeevan Sathi Yojana 2011]
23. Consider the following statements in re- A. To provide affordable houses to people
spect of the National Rural Employment living BPL
Guarantee Act, 2005 :
B. To provide affordable houses to rural
1. Under the provisions of the Act, 100 poor
days of employment in a year to
every household whose adult mem- C. To provide affordable houses to mi-
bers volunteer to do unskilled man- norities
ual work has become a fundamental D. To provide affordable houses to slum
right. dwellers and the urban poor
2. Under the provisions of the Act,
women are to get priority to the ex- 27. Under MGNRGA government gurantees to
tent that one-half of persons who provide at least how many days of em-
are given employment are women ployment to a person ina year?
who have asked for work. A. 90
Which of the statements given above B. 100
is/are correct? [IAS 2006]
C. 250
A. 1 only
D. 365
B. 2 only
C. Both 1 and 2 28. Nutritional level of food energy is ex-
D. Neither 1 and 2 pressed in the form of
A. Wheat consumption
24. Women, children and old people are the
of the poor B. Rice consumption per day
A. Educated C. Calories per day
B. Intelligent D. none of the above

29. In Pre-Independent India who was the 34. Which of the following programmes were
first to discuss the concept of Poverty launched in the year 2000?
Line?

A. Pradhan mantri gramodaya Yojana
A. P C Mahalnobis B. Prime minister rozgar Yojana
B. Jawaharlal Nehru C. Antyodaya Anna Yojana
C. Dadabhai Naroji D. Rural employment generation pro-
D. Mahatma Gandhi gramme
30. Which two states considered as the poor- 35. How did famines became events of the
est states of India? past?
A. Bihar & Orissa A. Improved literacy rate
B. Punjab & Haryana B. Increased Rainfall
C. Gujrat & M.P. C. Maintenance of Buffer stock
D. U.P. & Bihar D. none of above
36. “This achievement (independence) is but

31. DWCRA stands for:
a step, an opening of opportunity, to
A. Development and Welfare of Catch- the great triumphs and achievements that
ment Rural Areas await us the ending of poverty and ig-
B. Development of Women and Children norance and disease and inequality of op-
in Rural Areas portunity.” This statement is given by
whom?
C. Direct Welfare of Children in Rural Ar-
eas A. Mahatma Gandhi
D. All of the above B. Sarvapalli Radhakrishnan
C. Jawaharlal Nehru
32. What is the most difficult challenge faced
by independent India? D. Narendra Modi
A. Malnutrition 37. Which states have traditionally succeeded

B. Child Labour in reducing poverty with the help of high
agricultural growth rates?
C. Unemployment
A. Kerala and West Bengal
D. Poverty
B. Punjab and Tamil Nadu
33. Which one of the following is a revamp C. Punjab and Haryana
of the Integrated Rural Development Pro-
D. Andhra Pradesh and Tamil Nadu
gramme?
A. Jawahar Gram Samridhi Yojana 38. The Poverty line in India is prepared on the
basis of
B. Community-based Pro-poor Initiative
A. Income of individual
C. Swarnajayanti Gram Swarozgar Yo-
jana B. consumption expenditure
D. National Social Assistance Pro- C. National income

gramme D. Per capita income

39. What is Head count ratio? D. strengthening the Panchayati Raj Sys-
A. Total number of people in a country tem in rural areas
B. Proportion of people below poverty 44. TANWA is a project initiated in TamilNadu
line. to train women in
C. percentage of people above poverty A. Industrial techniques
line B. Household techniques
D. Total number of poor in a country C. Agricultural techniques
NARAYAN CHANGDER
40. According to C Rangarajan Committee re- D. none of above
port a person cannot be considered as
poor in rural and urban areas if he/she is 45. Which of the following groups of states
spending atlest how much per day resepec- has the largest concentration of rural poor
tively? and people living below the poverty line?
A. Rs. 27 & Rs.33 A. Karnataka, Maharashtra, Goa
B. Rs. 32 & Rs. 47 B. Goa, Andhra Pradesh, Maharashtra
C. Rs.33 & Rs. 38 C. Tamil Nadu, Kerala, Goa
D. Rs. 47 & Rs. 52 D. Andhra Pradesh, Karnataka, Tamil

Nadu
41. What is the minimum calorie intake de-
cided by the Planning Commission for rural 46. According to the World bank, poverty is
and urban areas, respectively ? measured by
A. 2400 and 2100 A. People living below Rs.100 per day
B. 2100and 2400 B. People living below $ 1.90 per day

C. People living below Rs.550 per month
C. 2400 and 2200
D. None of above
D. 2100 and 2200
47. With reference to the government’s wel-
42. As per latest data in urban areas women
fare schemes, consider the following state-
employment is highest in which of the fol-
ments:
lowing industries areas? [UBI PO 2010]
1. Under the Antyodaya Anna Yojana,
A. Textiles
the food grains are available to the
B. Apparel poorest of the poor families at Rs.
C. Education 2 per kg for wheat and Rs.3 per kg
D. Retail Trade for rice.
2. Under the National Old Age Pen-
43. Pradhan Mantri Gramodaya Yojana aims sion Scheme, the old and destitute
at: are provided Rs. 75 per month as
A. meeting rural needs like Primary edu- Central Pension, in addition to the
cation; health care, drinking water, hous- amount provided by most State Gov-
ing, rural roads ernments.
3. Government of India has allocated
B. alleviating poverty micro-enterprises 25 kg food grains per below
C. generating employment in the rural ar- Poverty Line family per month, at
eas less than half the economic cost.

Which of these statements are correct? 1. There is persistent investment over

[IAS 2003] time only in Select locales
2. Some areas are agro climatically

A. 1 and 2
less conducive to development
B. 1 and 3 3. Some are as continue to face little or
C. 2 and 3 no aqrarian transformation and the
D. 1, 2 and 3 consequent lack of social and eco-
nomic opportunities
48. Which of the following is not a dimesion 4. Some areas have faced continuous
of Poverty Reduction approach in India? political instability.
A. Growth Oriented Approach Which of the above statements are cor-
B. Specific Poverty Alleviation Pro- rect?
grammes
A. 1, 2 and 3
C. Income Creation Approach
B. 1, 2 and 4
D. Providing Basic Amenities to the poor
C. 1, 3 and 4
49. Consider the following statements: [NDA
2008] D. 2, 3 and 4
1. Hariyali is a watershed develop- 52. Under Indira Gandhi National Old Age Pen-
ment project sponsored by the Cen- sion Scheme (lGNOAPS), the benefits are
tral Government. available to the people having minimum
2. Hariyali also aims at enabling the ur- age of ..... [Bank of India PO 2010]
ban population to conserve rain wa-
ter. A. 50 years
A. 1 only B. 55 years
B. 2 only C. 65 years
C. Both 1 and 2 D. 70 years
D. Neither 1 nor 2
53. Who is considered as poorest among the
50. Among the following who are eligible to poor?
benefit from the “Mahatma Gandhi Na-
tional Rural Employment Guarantee Act” ? A. Women
[CSAT 2011] B. Elderrly people
A. Adult members of only the scheduled C. Female infants
Caste and scheduled tribe households
D. All of these
B. Adult members of below poverty line
(BPL) households 54. minimum daily intake of calories for deter-
C. Adult members of households of all mining poverty line for rural area is
backward communities
A. 2100
D. Adult members of any household
B. 2400
51. Consider the following statements: Re-
C. 1600
gional disparities in India are high and
have been rising in recent years because: D. None of the above

55. Poverty line in rural areas is (As per 1999- B. (b)100 days of guaranteed employ-
2000 prices) ment
A. Rs. 328 C. (c )It is a wage employment pro-
B. Rs. 370 gramme
D. both (b) and (c )
C. Rs. 454
D. Rs. 460 60. The Minimum Needs Programme aims to:
A. provide means for greater mechaniza-
NARAYAN CHANGDER
56. Which of the following is not valid reason
tion of agriculture
for the poverty alleviation programme in
India? B. improve the living condition of the poor
and also promote their education and
A. Lack of proper implementation
health
B. Lack of right targeting C. provide necessary resources by way
C. Corruption at the highest level of refinance to primary lenders
D. Overlaping of schemes D. None of these
57. Lack of education, employment and health 61. India’s wage policy is based on : [Rail-
care detemines ways 1994]
A. Vulnerability A. cost of living
B. Poverty B. standard of living
C. Under development C. productivity
D. Unemployment D. None of the above
58. Which among the following is not correct 62. A person is considered poor if his or her
with regard to Sampoorna Grameen Roz- income or consumption level falls below a
gar Yojana? given level.
1. The case component of the pro- A. Maximum
gramme is borne exclusively by the B. Minimum
Central Government.
2. Foodgrains are provided free of cost 63. Which of following is a principal cause of
to the States/Union Territories. poverty in an underdeveloped economy?
Select the answer using the codes given A. Low level of Economic Growth
below [NDA 2008] B. Unemployment and Under Employ-
ment
A. 1 only
C. Capital Deficiency
B. 2 only
D. All of these
C. Both 1 and 2
D. Neither 1 nor 2 64. Which form of following consider as poor
A. A rich landlord
59. Which one of the following is/are the fea-
ture of MGNREGA? B. A businessman
A. (a)Self employment by providing bank C. A landless labourer
loans D. A teacher

65. Which program was launched with the aim 70. SGSY stands for
to create self-employment opportunities in A. Swarn Jayanti Gram Self-Employment
rural areas and small towns.

Scheme
A. Pradhan Mantri Rozgar Yojana B. Golden Jayanti Urban Self-
B. Pradham Mantri Gramodaya Yojana Employment Scheme
C. Rural Employment Generation Pro- C. Swarna Jayanti Gram Swathantrar Yo-
gramme jana
D. Antyodaya Anna Yojana D. Sampoorna Jayanti Gram Swarozgar
Yojana
66. How many people are in India are below
poverty Line? 71. The calorie requirement is higher in the ru-
ral areas because:
A. 30crore
A. they do not enjoy as much as people in
B. 26crore
the urban areas.
C. 28crore
B. food items are expensive.
D. 24crore
C. they are engaged in mental work.
67. Assume the total population of a country is D. people are engaged in physical labour.
200 crores and the people below poverty
line is 44 crores. What is the Head Count 72. Poverty Gap is :
ratio? A. the difference between poverty line
A. 20 percent and actual income levels of all those living
below that line
B. 25 percent
B. gap between the rich and the poor
C. 22 percent
C. gap between developed nations and
D. 26 percent
developing nations
68. Which of the following programmes was D. gap in infrastructural facilities be-
launched in the year 2000? tween developed and developing nations
A. National Rural Employment Guarantee
73. The type of unemployment mostly found in
Act
India can be characterised as :
B. Prime Minister Rojgar Yojana
A. structural
C. Swarna Jayanti Gram Swarozgar Yo-
B. frictional
jna
C. cyclical
D. Pradhan Mantri Gramodaya Yojana
D. disguised
69. A cut of point on the line of distribution
which distinguish people as poor and Non- 74. Which scheme was started in 1993 to cre-
poor is called: ate self-employment opportunities for ed-
ucated unemployed youth in rural areas
A. Cut off Line and small towns?
B. Poverty Line A. Prime Minister Rojgar Yojana
C. Relative poverty B. National Rural Employment Guarantee
D. Distribution Line Act

C. Rural Employment Generation Pro- 80. Swarnajayanti Gram Swarozgar Yojana

gramme was launched in
D. Swarnajayanti Gram Swarojgar Yojana A. 1995
75. What is Head Count Ratio? B. 1999
A. Percentage of people living in rural ar- C. 2000
eas
B. pPercentage of people living below D. 2001
NARAYAN CHANGDER
Poverty Line
81. Who do not come under the category of
C. Percentage of people living above
urban poor
Poverty Line
D. Ratio of Poor people to Non-poor peo- A. The Casual Workers
ple B. The Unemployed
76. For how many days MNREGA provides em- C. The Shopkeeper
ployment?
D. Rikshaw Pullers
A. 70
B. 80 82. The national level poverty line consider it
C. 90 as 22%. Find with the help of diagram In
D. 100 which of the following state ratio of poor
are lesser?
77. Which of the following organisation collect
data on poverty in India?
A. Reserve Bank of India (RBI)
B. National Sample survey organisation
(NSSO)
C. Census of India
A. Rajasthan
78. Which two states of India continue to be
the poorest States? B. Tamil Nadu
A. Madhya Pradesh C. Andhra Pradesh

B. Jammu and Kashmir D. Gujarat
C. Odisha
D. Bihar 83. NFWP is stands for
79. What factors affect the poverty line? A. National Federation for Work and
Progress
A. Time
B. National forests for Wildlife Protection
B. Place
C. Income C. National food and Wheat Processing
D. Gender D. National food for Work Programme

84. Among the reasons for disguised unem- B. 2 only

ployment in the rural areas is :
C. Both 1 and 2
A. choice of a heavy industry model for

D. Neither 1 or 2
economic development
B. low levels of technological develop- 88. Which of the following is wage employ-
ment in the country ment Programme?
C. heavy pressure of population along A. Prime Minister Rozgar Yojana
with slow implementation of land reforms
B. Swarna Jayanti Gram Swarozgar Yo-
jana
D. high illiteracy rate
C. Swarna Jayanti Shahari Rozgar Yojana
85. Poverty alleviation programmes are imple- D. Mahatma Gandhi National Rural Em-
mented with the help of which of the fol- ployment Guarantee Act
lowing programme from 1990 onwards?
A. Swarna Jayanti Gram Swarozgar Yo- 89. Which one of the following statements is
jana not correct? [IAS 2004]
B. Self-help Group A. Under the Targeted Public Distribution
System, the families Below Poverty Line
C. MGNREGA
are provided 50 kg. of food grains per
D. None of the above month per family at subsidised price
86. Occasionaly Poor and Churning poor are B. Under Annapurna Scheme, indigent se-
combinely called: nior citizens of 65 years of age or above
eligible for National Old Age Pension but
A. Chronic Poor
not getting pension can get 10 kg of food
B. Non-Poor grains per person per month free of cost
C. Transient Poor C. Ministry of Social Justice and Empow-
D. Never Poor erment has scheme in which indigent peo-
ple living in welfare institutions like or-
87. Consider the following statements: [IAS phanges are given 15 kg of food grains per
2004] person per month at BPL rates
1. The loans disbursed to farmers D. Ministry of Human Resource Develop-
under Kisan Credit Card Scheme ment gives financial support to Mid-Day
are covered under Rashtriya Krishi Meal Scheme for the benefit of class I to
Beema Yojna of Life Insurance Cor- V students in Government or Government
poration of India. aided Schools
2. The Kisan Credit Card holders are
provided personal accident insur- 90. By March end 2003, more than SHGs
ance of Rs.50000 for accidental had reportedly been credit linked.
death and Rs. 25000 for permanent
A. 7 lakhs
disability.
B. 8 lakhs
Which of the statement given above
is/are correct? C. 9 lakhs
A. 1 only D. none of above

91. Disguised unemployment in India is mainly 96. Which of the following is the amount of
related to : Insurance cover provided to the workers
1. agricultural sector of the unorganized sector under Rashtriya
2. rural area Swasthya Bima Yojana ? [Corporation
3. factory sector Bank PO 2011]
4. urban area A. Rs. 10,0007
A. 1 and 2 B. Rs. 20,0007
NARAYAN CHANGDER
B. 1 and 3 C. Rs. 30,0007
C. 2 and 4 D. Rs. 50,0007
D. 3 and 4
97. NABARD was set up in
92. Operation Blackboard aims at A. 1892
A. promoting adult literacy B. 1952
B. providing education to urban slum C. 1982
dwellers
D. none of above
C. opening of new schools specially for
female children 98. credit provisions are referred to as
D. providing primary education in an edu- micro-credit programmes.
cationally backward area A. RRB
93. Every person in India is poor. B. SHG
A. Third C. Cooperatives
B. Fourth D. none of above
C. Fifth 99. Which one of the following is a minimum

D. Sixth necessity of a human being?
A. Luxury ornaments
94. Who advocated that India would be truly
independent only when the poorest of its B. Supper Utility Vehicle
people become free of human suffering? C. Food & Safe drinking water
A. Mahatma Gandhi D. Internet
B. Indira Gandhi
100. The realisation of the nutritional value of
C. Jawahar lal Nehru food is growing all over the world.
D. Subhash Chandra Bose A. Commercial farming
95. Which one of the following is not consid- B. Plantation farming
ered as a social indicator of poverty? C. Organic farming
A. Illiteracy level D. none of above
B. Lack of access of health care
101. Consider the following statements with
C. Inadequate safe drinking water reference to Indira Gandhi National Old
D. Ample job opportunities Age Pension Scheme [IGNOAPS]

1. All persons of 60 years or above 106. Identify the programme which aim at im-
belonging to the households below proving the food and nutritional status of
poverty line in rural areas are eligi- the poor?

ble. A. Public Distribution System (PDS)
2. The Central Assistance under this
Scheme is at the rate of Rs. 300 B. Integrated Child Development
per month per beneficiary. Under Scheme(ICDS)
the Scheme, States have been urged C. Midday meal scheme( MDMS)
to give matching amounts. D. All of the above
Which of the statements given above
is/are correct? [IAS 2008] 107. Which organisation carries out survey for
determining the poverty line?
A. 1 only
A. NSSO
B. 2 only
B. CSO
C. Both 1 and 2
C. Planning commission
D. Neither 1 nor 2
102. Poverty across different classes, regions
or countries is called: 108. Consider the following statements:
A. Absolute Poverty 1. The nation-wide scheme of the Na-
tional Child Labour Projects (NCLP)
B. Ralative Poverty
is run by the Union Ministry of So-
C. Differential Povery cial Justice and Empowerment.
D. Cross region Poverty 2. Gurupadswamy Committee dealt
with the issues of child labour.
103. What is the poverty ratio in the state of
Odisha? Which of the statements given above
is/are correct? [IAS 2007]
A. 33.7%
A. 1 only
B. 23.43%
B. 2 only
C. 44%
C. Both 1 and 2
D. Neither 1 nor 2
104. The current anti poverty program con-
sists of two planks.They are 109. Persons below the poverty line in India
are classified as such based on whether:
A. Socio economic reasons [IAS 1999]
B. Public distribution system
A. they are entitled to a minimum pre-
C. Promotion of economic growth scribed food basket
D. Targeted anti poverty programmes B. they get work for a prescribed mini-
mum number of days in a year
105. Who are the poorest of poor?
C. they belong to agricultural labourer
A. Women
household and the scheduled caste/tribe
B. Old people social group
C. Children D. their daily wages fall below the pre-
D. Poor men scribed minimum wages

110. The strategic aim of IRDP is : C. 4th

A. to reduce unemployment D. 5th
B. to provide the required inputs for in-
creasing agricultural productivity 116. With reference to the Government of In-
dia’s various programmes, what is Nirmal
C. to provide more opportunities for ru-
Gram Puraskar? [IAS 2006]
ral employment and credit facilities at con-
cessional rate of interest A. It is an incentive scheme of scholar-
NARAYAN CHANGDER
D. none of these ships for the single girl child in families in
villages.
111. What is the main objective of Antyodaya
B. It is an incentive scheme of scholar-
programme?
ships for female sportspersons from vil-
A. Uplift the poor lages who represent their states in any
B. Uplift the urban poor game.
C. Uplift the farmer C. It is an incentive scheme for schools in
D. Uplift the landless labour the villages for computer education.
D. It is an incentive scheme Panchayati
112. Swarn Jayanti Gram Swa-Rozgar Yojna
Raj institutions.
came into being in : [UPPCS 2002]
A. April 1995 117. In which state have land reform mea-
B. April 1997 sures helped to reduce poverty
C. April 1999 A. Tamil Nadu
D. July 2001 B. Punjab
113. Unemployment in a developing country C. West Bengal
generally takes place due to :
D. Kerala
A. switch over from one job to another
B. lack of effective demand 118. One of the reasons for India’s occupa-
C. seasonal factors tional structure remaining more or less the
same over the years has been that: [IAS
D. lack of complementary factors of pro- 1995]
duction
A. productivity in agriculture has been
114. Which state has focused more on human high enough to induce people to stay with
resource development? agriculture
A. Tamil Nadu B. people are largely unaware of the sig-
B. Punjab nificance of transition from agriculture to
C. West Bengal industry for economic development
D. Kerala C. investment pattern has been directed

towards capital intensive industries
115. Every person is poor in India.
D. ceilings on land holdings have enabled
A. 2nd more people to- own land and hence their
B. 3rd preference to stay with agriculture

119. The minimum calorie requirement in Rural 124. NFWP is stand for:
areas to decide poverty line is A. National Federation for Work and

A. 2100 calories Progress
B. 2400 calories B. National Forest for Wildlife Protection
C. 2600 calories C. National Food and Wheat Processing
D. 2000 calories D. National Food for Work Programme
120. Which social group is most vulnerable to 125. In India, present trend of rapid urbanisa-
poverty in India? tion is due to:
A. Scheduled castes A. lack of employment opportunities in ru-

ral areas
B. Scheduled tribe
B. influence of cinema and electronic me-
C. Casual labourers dia
D. All of the above C. break up of joint family system
121. Which group is mose vulnerable to Pover- D. abolition of zamindari system
rty in India
126. There is a probability for certain groups
A. Schedule Caste of people to became more poor in future is
B. Schedule Tribes called:
C. Casual Labourers A. Social Exclusion

B. Vulnerability
D. All of the Above
C. Incidence of Poverty
122. Which of the following schemes launched
D. Poverty Probability
by the Govt. of India aims at enhancing
the livelihood security of the people in ru- 127. is a women-oriented community
ral areas by guaranteeing hundred days based poverty reduction programme imple-
of employment in a financial year to a ru- mented in Kerala.
ral household whose adult members vol-
A. TANWA
unteer to do unskilled manual work? [RBI
Grade B Officer 2011] B. Kudumbashree
A. Pradhan Mantri Gram Sadak Yojana C. RRB
B. Kutir Jyoti Scheme D. none of above
C. ASHA 128. The Govt. of India has launched a number

D. MNREGA of poverty alleviation programmes. This
is done with the view that poverty is the
123. In India absolute poverty is measured in root cause of social insecurity. In addi-
terms of: tion to that UNO has also launched Millen-
nium Development Goals to be achieved by
A. Poverty Line
2015.Which of the following is NOT one of
B. GDP those goals? [Punjab & Sindh Bank 2011]
C. Per capita income A. Improve mental health
D. Unemployment Rate B. Combat HIV/AIDS, Malaria

C. Reduce marriageable age for males to 133. The earlier Food for Work programme has
18 yr been subsummed with which of the follow-
ing programme?
D. Achieve universal primary education
A. Mid-day Meal Scheme
129. What helped West Bengal in reducing
poverty? B. Minimum needs programme
A. Human resource development C. MGNREGP

D. Integrated rural Development Pro-
NARAYAN CHANGDER
B. Public distribution of food grains
gramme
C. Population control
D. Land reform measures 134. Which scheme encouraged people to open
bank account in 2004?
130. Which of the following programme ia also A. Integrated Child development scheme
known as National Rural Livelihoods Mis-
sion (NRLM) B. Public distribution system
A. Swarna jayanti Shahari Rozgar Yojana C. National old age scheme
(SJSRY) D. Jan Dhan Yojana
jana 135. Which of the following is a self employ-
ment Programme?
C. Prime Minister Rozgar Yojana (PMRY)
A. Prime Minister’s Rozgar Yojna
D. Rural Employment Guarantee Pro-
gramme (REGP) B. MGNREGS
C. Pradhan Mantri Gram Dasak Yojna
131. What is the main cause of poverty in In-
dia? D. Food for Work Programme
A. High income inequalities 136. The minimum calorie intake required per
B. Less job opportunities person per day in rural and urban areas re-
spectively to determine the poverty line in
C. High growth in population
India is:
D. All of the above
A. 2100 & 2400
132. which scheme was started in 1993 to cre- B. 2400 & 2100
ate self employment opportunities for edu-
C. 2000 & 2200
cated unemployed youth in rural areas and
small towns? D. 2200 & 2000
A. Prime minister rozgar Yojana
137. Which organization carries out survey for
B. Rural employment generation pro- determining the poverty line?
gramme
A. CSO
C. National rural employment guarantee
B. NSSO
act
C. Planning Commission
D. Swarna jayanti gram swarojagar Yo-
jana D. None of these

1.3 Currency and Inflation 55
138. Which of the following is NOT an eco- D. Lakdawala Committee

nomic empowerment scheme launched by
the Govt. of India for the benefit of vari- 140. Poverty in less developed countries is

ous sections of society? [Punjab & Sindh largely due to [CPO SI 2010]
Bank 2011] A. voluntary idleness
A. STEP B. income inequality
B. Swayamsidha C. lack of cultural activities
C. KALPANA-1 D. lack of intelligence of the people
D. All of these 141. is an assurance to the farmers that a
139. Which Committee’s recommendations are minimum price will be fixed by the govern-
being followed for estimating Poverty Line ment to purchase farmers produce.
in India? A. Maximum support price
A. Dutt Committee B. Minimum support price
B. Chelliah Committee C. Maximum retail price
C. Chakravorty Committee D. none of above
1.3 Currency and Inflation

1. Inflation is caused as a result of: 4. Index number that represents general
A. increase in money supply change in wholesale prices of commodities
is
B. fall in production
A. Consumer Price Index
C. increase in money supply without a
corresponding increase in production B. Wholesale Price Index
D. decrease in money supply without a C. Food Basket

corresponding decrease in production D. none of above
2. Demand-Pull inflation can be describes as 5. Which one of the following is not a modern
too many chasing too few form of money?
A. jobs, workers A. Demand deposits
B. consumers, producers B. Paper currency
C. dollars, goods C. Coins
D. none of above D. Precious metals
3. No individual in India can legally refuse a 6. Who is the founder of Grameen Bank of
payment made Bangladesh?
A. Rupees A. Mohammad Yunus
B. money B. Mohammad Kasim
C. deposits C. Mohammad Tuglaq
D. cheque D. Mohammad Zakir

7. Which authority regulate and overlook the 12. What is the main source of income for
credit sysetm and economic activites in In- banks?
dia
A. Interest on loans
A. NSSO
B. Interest on deposits
B. CBI
C. Difference between the interest
C. Finance Minister
charged on borrowers and depositors
D. RBI
D. None of these
NARAYAN CHANGDER
8. Choose the correct meaning of organised
sector: 13. Which of the following is least risky?
A. It covers those enterprises where the A. Equity
terms of employment are regular.
B. Corporate Bonds
ment. C. Treasury Bills
C. Jobs are not regular. D. Certificate of Deposits

D. It provides low salaries. 14. Hard Currency is defined as currency:
9. Which of the following examples does not A. which can hardly be used for interna-
fall under unorganised sector? tional transactions
A. A farmer irrigating his field. B. which is used in times of war
B. A daily wage labourer working for a
C. which loses its value very fast
contractor.
C. A doctor in a hospital treating a pa- D. traded in foreign exchange market for
tient. which demand is persistently relative to
the supply
D. A handloom weaver working on a loom
in her house. 15. Which of the following is not an organized
sector in India?
10. Which of the following act defines a
Cheque? A. Nationalized Banks
A. RBI Act 1934 B. Regional Rural Banks
B. Negotiable Instrument Act 1881 C. Cooperative Banks
C. Banking Regulation Act 1949
D. Chits and Money lenders
D. Companies Act 2013
16. Which of the following types of inflation
11. Bank deposit is a non-marketable security
interferes with a company’s ability to plan
AND Government bond is a long-term se-
for the future?
curity.
A. Expected inflation
A. TRUE AND TRUE
B. TRUE AND FALSE B. Unexpected inflation
C. FALSE AND TRUE C. Creeping inflation
D. FALSE AND FALSE D. Galloping inflation

17. In a SHG most of the decisions regarding C. High level of non-performing loans
loan activities are taken by D. None of the above
A. Banks

23. The exchange rate is
B. Members
A. the price of one currency relative to
C. Non-government organisation
gold
D. Cooperative
B. the value of a currency relative to infla-
18. It is important that the formal credit is dis- tion
tributed more equally so that C. the change in the value of money over
A. Poor can benefit from cheaper loans time.
B. Rich can get costly loans D. the price of one currency relative to an-
C. Rich can get cheaper loans other.
D. None of these 24. The cause of inflation is:
19. Black money is : A. increase in money supply
A. counterfeit currency B. fall in production
B. illegally earned money C. increase in money supply and fall in
C. money earned through underhand production
deals D. decrease in money supply and fall in
D. income on which payment of tax is usu- production
ally evaded
25. Which of the following governmental
20. M3 includes: steps has proved relatively effective in
controlling the double digit rate of infla-
A. M1 + T.D
tion in the Indian economy during recent
B. M1 + post office saving deposit years?
C. M1 ± post office total deposit A. Containing budgetory deficits and un-
D. M1 + national saving certificate productive expenditure
B. Streamlined public distribution system
21. An asset that the borrowers own, and use
this as a guarantee to the lender, until the
loan is repaid. C. Enhanced rate of production of all con-
A. Security sumer goods
B. Collateral D. Pursuing an export-oriented strategy

C. Property 26. Which one of the following is the main
D. All of these source of credit for rich urban households
in India?
22. As per the latest released FSR, Indian
A. Formal sector
Banking system has remained resilient
mainly due to: B. Informal sector
A. Improvement in profitability C. Money lenders
B. Adequate capital buffer D. Traders

27. Which of the following measures should be 31. Number of Reserve Banks in a country is
taken when an economy is going through A. Two
inflationary pressures?
B. Three
1. The direct taxes should be in-
creased. C. One
2. The interest rate should be reduced. D. Five
3. The public spending should be in-
creased 32. ’Devaluation’ means: [RRB 1992]
NARAYAN CHANGDER
Select the correct answer using the code A. converting rupee into gold
given below: [CDS 2012] Code: B. lowering of the value of one currency
A. 1 only in comparison of some foreign currency
B. 2 only C. making rupee dealer in comparison to

some foreign currency
C. 2 and 3
D. None of these
D. 1 and 2
33. What percentage of deposits are kept as
28. A financial institution which accepts de- cash by the commercial banks in India?
posits from public and provide loans to
A. 25%
them.
B. 20%
A. Share Market
C. 15%
B. Insurance Company
D. 10%
C. Banks
D. All of these 34. The latest released FSR refers to Bank for
International Settlements (BIS) quarterly
29. An agreement in which the lender supplies review ( Dec 2022). According to the BIS
the borrower with money, goods or ser- estimates US $80 trillion of dollar debt is
vices in return for the promise of future “ missing”, the missing debt as per BIS re-
payment. port is mainly in the form of:
A. Credit(loan) A. Government Bonds
B. Chit fund B. FX Swaps
C. Bank C. Private debt

D. Household debt
D. Cheque
35. Inflation can be contained by:
30. To meet the growing needs for coins in the
country, where does the Government pro- A. surplus budget
pose to set up another mint? B. increase in taxation
A. Nasik C. reduction in public expenditure
B. Hoshangabad D. all the above
C. Dewas
36. Which of the following mints undertakes
D. Noida refining of gold for licensed gold dealers

and production of medals for defence ser- 40. “Scheduled bank” in India means a bank
vices?

A. The Hyderabad Mint A. Incorporated under the Companies
B. The Mumbai Mint Act, 1956
C. The Kolkata Mint B. Authorized to the Banking business
D. None of the above C. Governed by the Banking Regulation
Act, 1949
37. If Net capital flows led by foreign portfo-
D. Included in the Second schedule to the
lio investment (FPI), foreign direct invest-
Reserve Bank of India Act 1934
ment (FDI) and trade credit fell short of the
funding requirements of CAD, it will result 41. Which one of the following is an asset that
in: the borrower owns and uses as a guaran-
A. A depletion of foreign exchange re- tee until the loan is repaid to the lender?
serves A. Property
B. An increase of foreign exchange re- B. Money
serves
C. Collateral
C. Unchanged foreign exchange reserves
D. Deposits
42. A steady increase in the general level of
38. Consider the following statement: The prices as a result of excessive increase in
price of any currency in international mar- aggregate demand as compared to aggre-
ket is determined by the: gate supply is termed as : [CDS 1999]
1. WTO A. demand-pull inflation
2. Demand for goods/services pro-
vided by the country concerned B. cost-push inflation
3. Inflation differential between the C. stagflation
country concerned and its major D. structural inflation
trading partners
4. Stability of the government of the 43. The service sector includes activities such
concerned country as:
Of these statements: A. agriculture, dairy, fishing and forestry
A. 1, 2, 3, and 4 are correct B. making sugar, jaggery and bricks
B. 1, 2 and 4 are correct C. transport, communication and banking
C. 1, 3 and 4 are correct
D. 2, 3 and 4 are correct D. none of above
39. The inflation experienced in the country at 44. Which of the following is not related with
present is: Money Market?
A. galloping inflation A. Treasury Bills
B. secondary inflation B. Commercial Bills
C. unrealistic inflation C. Certificates of Deposit
D. cost-push inflation D. Shares

45. Monetary policy is regulated by: 51. Devaluation of currency by a country is

A. money lenders meant to lead to :
B. Central Bank 1. expansion of import trade

2. promotion of import substitution
C. private entrepreneurs 3. expansion of export trade
D. Government policy A. 1 only
46. The situation with increasing unemploy- B. 2 and 3
NARAYAN CHANGDER
ment and inflation is termed as: [CPO AC C. 1 and 2
2003]
D. 1 and 4
A. hyperinflation
B. galloping inflation 52. Terms of credit does not include
C. stagflation A. Interest rate
D. reflation B. Collateral
C. Cheque
47. inflation brings a total collapse of the
Economy. D. Mode of repayment
A. Creeping 53. Money:
B. Galloping
A. eliminates double-coincidence of
C. Running wants
D. Walking B. acts as a common measure of value
48. Ten rupee notes bear the signature of: C. acts as a store of value
A. President D. all the above
B. Finance Minister 54. Stagflation implies a case of: [CDS 1992]
C. Secretary, Ministry of Finance A. galloping inflation
D. Governor, Reserve Bank of India B. recession plus inflation
49. Which of the following groups suffer the C. adverse balance of trade
most from inflation? [CPO SI 2003] D. rising wages and employment
A. Debtors
55. As per the latest FSR, an increase in the
B. Creditors value of USD also tend to:
C. Business class A. Decrease inflation by driving down im-
D. Holders of real assets port prices
50. Who is most likely to be hurt by inflation? B. Increase inflation by driving down im-
port prices
A. someone who borrowed money
C. Increase inflation by driving up import
B. a retiree on a fixed income prices
C. a business owner D. Decrease inflation by driving up import
D. the U.S. government prices

56. What causes demand pull inflation? Which of the statements given above
A. rise in price due to a decrease in sup- is/are correct? [CDS 2009]

ply A. I only
B. a rise in price level due to an increase B. II only
in consumption
C. Both I and II
C. a rise in price due to an increase in the
D. Neither I nor II
cost of production
D. a decrease in price due to a decrease 61. The FSR attributes majority of decline in
in supply foreign reserves to:
57. The Issue Department of the RBI maintains A. Valuation losses
a ....... against printing of notes: B. Intervention in FX market
A. Minimum Reserve System C. Sale of Foreign currency assets
B. Proportional Reserve System D. Write-off of Foreign currency assets
C. Proportional Gold Reserve System
62. Inflation implies: [Railways 1994]
D. Proportional Foreign Securities Re-
serve System A. rise in budget deficit
B. rise in money supply
58. Rupee was devalued by what percent in
July 1991 ? [MP PCS 1990] C. rise in general price index
A. 18 D. rise in prices of consumer goods
B. 20 63. inflation affects the poor and middle
C. 22 class people adversely.
D. 25 A. Creeping
59. After a year or two if the SHG is regular B. Walking
in savings, it becomes eligible for availing C. Running
loan from
D. Hyper
A. Cooperative societies
B. Money lenders 64. SHGs help borrowers overcome the prob-
lem of lack of
C. Bank
A. terms of credit
D. Traders
B. collateral
60. Consider the following statements about
C. credit
Wholesale Price Index (WPI) :
D. loan
I. It captures the price movement ex-
tensively and is, therefore, taken as 65. Which of the following factors contributes
an indicator of inflation. to an inflationary trend?
II. The office of the Economic adviser
(OEA) is entrusted with the function A. 15% fall in production of industrial
of compilation and publication of the goods
weekly wholesale price index num- B. 15% increase in prices of agricultural
ber in India. products

C. 15% increase in supply of money in the C. It is authorized by commercial banks

market D. It is authorized by the Government of
D. none of these the country
66. Minimum inflation in post economic reform 72. There are three major groups of commodi-
was in : ties in the Wholesale Price Index. These
are:
A. 1999-2000
1. primary articles
B. 2000-01
NARAYAN CHANGDER
2. fuel, power, light and lubricants
C. 2001-02 3. manufactured products
D. 2002-03 4. food articles and industrial raw ma-
terials
67. One-rupee currency notes bear the signa-
A. 1, 2 and 3
ture of:
B. 2, 3 and 4
A. Prime Minister of India
C. 1, 3 and 4
B. President of India
D. 1 and 3
C. Finance Minister of India
D. Finance Secretary of India 73. Why do banks keep a small proportion of
the deposits as cash with themselves?
68. A typical SHG has members. A. To extend loan to the poor
A. 15 to 20 B. To extend loan facility
B. 20 to 25 C. To pay salary to their staff
C. 25 to 30 D. To pay the depositors who might come
D. 30 to 35 to withdraw money
69. Reserve bank of India grants loans to 74. SEBI was primarily set up to
A. General public A. regulate the activities of the merchant
banks
B. Private Companies
B. to control the operations of mutual
C. Commercial Banks funds
D. All of these C. to work as a regulator of the stock ex-
70. As per FSR, India’s share of dollar- change activities
denominated debt has been: D. all of the above
A. Increasing 75. Deficit financing creates additional paper
B. Falling currency to fill the gap between expendi-
ture and revenue. This device aims at eco-
C. Remained stagnant
nomic development but if it fails, it gener-
D. Rapidly increasing ates : [IFS 1990]
71. Which one is the following is the important A. inflation
characteristic of modern form of currency? B. devaluation
A. It is made from precious metal C. deflation
B. It is made from thing of everyday use D. demonetization

76. As per FSR, Banks have also been draw- 81. are the building blocks of organisation
ing down their high-quality-liquid assets of the rural poor
(HQLAs) to fund credit growth. This will

A. Banks
most likely Liquidity Coverage Ratio
(LCR): B. Cooperative societies
A. Increase C. SHGs
B. Decrease D. Formal sources of credit
C. No Impact on 82. and credit is crucial for the coun-
D. None of the above try’s development
A. Accessible and affordable
77. An index that measures the prices of a
market basket of goods that typical con- B. Timely and feasible
sumers purchase. C. Less and high amount of
A. Consumer Price Index D. Cheap and affordable
B. Federal Reserve
83. The period of high inflation and low eco-
C. Bank nomic growth is termed as: [RRB 1992]
D. Deflation A. stagnation
78. The States’ debt does not include: B. take-off stage in economy
A. loans from State Bank of India C. stagflation
B. loans from the Central Government D. none of these
C. Provident Funds 84. Among the causes of inflation can be

listed:
D. treasury bills issued to international fi-
nancial institutions 1. slow growth in agricultural output
2. increasing non-development expen-
79. The effect of inflation on tax revenue re- diture of Government
sults in a situation known as : 3. rapid population growth
A. stagflation 4. rapid growth in costly imports
B. fiscaldrag A. 1 and 2
C. reflation B. 2 and 3
D. disinflation C. 1, 2, 3 and 4
D. 1 and 4 only
80. After or , if the SHG is regular in
savings, it becomes eligible for availing 85. Most countries try to maintain an inflation
loan from the bank. rate of per year.
A. 3 years or 4 years A. One percent or less
B. 5 years or 6 years B. Two to three percent
C. 6 months or 1 year C. Four to five percent
D. a year or two D. Six to seven percent

86. Which one is an example of Informal 91. A high rate of inflation tends to worsen
Source of Credit balance of payments because:
A. Banks A. prices of imported goods rise
B. Cooperative Societies B. prices of exported goods rise making
exports less competitive
C. Money Lender
C. prices of imported goods fall and
D. All of these hence more is imported
NARAYAN CHANGDER
87. Which of the following accounts for Cost- D. prices of exported goods fall and
Push Inflation? hence less amount is obtained in terms of
foreign exchange
A. Increase in money supply
92. Amongst the currency quotes USD/JPY,
B. Increase in indirect taxation
USD/Euro and USD/CAD, which one of the
C. Increase in population following is referred as the base currency
D. Increase in non-plan expenditure for quotes? [Punjab & Sindh Bank 2011]
A. US $
88. Which one of the following is not a feature
B. JPY
of money?
C. Euro
A. Medium of exchange
D. CAD
B. Lack of divisibility
E. None of these
C. A store of value
93. For international payments, the Indian cur-
D. A unit of account
rency is linked to :
89. Which of the following are definite impli- A. American Dollar
cations of a fall in inflation? B. British Sterling
1. Prices have fallen C. Gold Standard
2. Prices are increasing more slowly
than before
3. Food supply has increased 94. What causes cost push inflation
4. There is industrial stagnation A. An increase in demand for goods and
A. 1 and 3 services
B. 1 only B. An increase in supply
C. 2 only C. A rise in production costs passed on to
consumers
D. 1, 3 and 4
D. A fall in the price of imports
90. Which of the following can be used for 95. The best means of saving during inflation
checking inflation temporarily? is to keep:
A. Increase in wages A. money
B. Decrease in money supply B. Government Bonds
C. Decrease in taxes C. equity
D. None of the above D. time deposits with Banks

96. As per the latest FSR, Corporate sector B. Demand-pull inflation

leverage, as reflected in debt-to-equity C. Price-push inflation
and debt-to-asset ratios, have been:

D. Supply-pull inflation
A. Increasing gradually from pandemic
lows E. None of the answers
B. Decreasing gradually from pandemic 101. Debt-trap means:

lows A. Ability to pay back loan
C. Remained unchanged from pandemic B. Extravagance
lows
C. None of the above
D. Increasing debt
97. In Inflation prices rise very fast at dou-
ble or triple rate. 102. What is the form of money in medieval
period?
A. Walking
A. Cowries
B. Running
B. Paper Notes
C. Hyper
C. Metallic Coins
D. Creeping
D. Barter System
98. Match the following:
103. Under Barter System the exchange of
goods require
A. Partial convertibility I. Unified exchange rate, applied for export and import of goods only, i.e., visibl
B. Convertibility on trade account II. Currency can beA. converted
Double coincidence of wants
on all accounts
C. Convertibility on current account III. 60% of the foreign exchange
B. A good to besystem
transport converted at market rates and rest at o
D. Full convertibility IV. Full convertibility in all visible and invisible transaction of goods and service
C. Advertising
D. Communication
A. A − I, B − II,C − III, D − IV
104. The Financial Stability Report is a:
B. A − IV, B − II,C − I, D − III
A. Quarterly publication
C. A − III, B − I,C − IV, D − II
B. Semi-annual publication
D. A − I, B − IV,C − III, D − II
C. Annual publication
99. Among the remedies of inflation we cannot
include:
A. better capacity utilisation 105. “Financialization of commodities” mainly
refers to:
B. lowering bank rate
A. Increased investments in commodity
C. reducing budgetary deficit
linked ETFs
D. an efficient public distribution system B. Decreased investments in commodity
100. What cause of inflation comes from an in- linked ETFs
crease in commodity prices such as oil and C. Reduced Bank’s exposure towards
wheat, or an increase in wages? commodities traders
A. Cost-push inflation D. None of the above

106. Which of the following is false about D. 1, 2 and 4

NBFC?
110. As per FSR the acceleration in credit
A. NBFC cannot accept demand deposits growth, is most likely to risk weighted
B. NBFCs do not form part of the payment assets:
and settlement system and cannot issue A. Reduce
cheques drawn on itself
B. Grow
C. deposit insurance facility of Deposit
C. Have no impact on
NARAYAN CHANGDER
Insurance and Credit Guarantee Corpo-
ration is not available to depositors of D. None of the above
NBFCs
111. Under the Constitution, the power to
D. NBFC cannot undertake insurance
raise and disburse public funds:
business
A. has been vested in Union Government
107. Which of the following is incorrect about
B. has been divided between the Union
convertibility?
and State Governments
A. The exchange rate should be deter-
C. has been given to the Finance Commis-
mined by the forces of demand and supply
sion
of the currency
B. The exchange rate’ would indicate the D. has not been given to anyone
strength of the economy 112. inflation is regarded as safe and es-
C. It would discourage black market sential for Economic Growth.
transactions A. Running
D. The RBI will be a direct player now B. Creeping
rather than being an indirect one
C. Hyper
108. Money can be best described as D. Walking
A. Medium of transaction
113. An essential attribute of inflation is:
B. Medium of exchange
A. fall in production
C. Deposit in Banks
B. increase in prices
D. Payment through cheque
C. absence of black market
109. The sum of which of the following consti-
D. presence of black market
tutes Broad Money in India? [IAS 1997]
1. Currency with the public 114. The FSR highlights that the share of fixed
2. Demand deposits with banks assets in total assets remained subdued
3. Time deposits with banks and at the level observed during H2:2021-
4. Other deposits with RBI 22. This most likely indicates that:
Choose the correct answer using the codes A. New Private investment has picked up
given below: B. New Private investment is yet to
A. 1 and 2 pickup
B. 1, 2 and 3 C. Households debt has increased
C. 1, 2, 3 and 4 D. Private debt has increased

115. Which of the following does not come un- B. Trail

der modern forms of money? C. Match

A. Currency D. None of the above
B. Cheque Payments
120. A very rapid growth in prices in which
C. Demand deposits money loses its value to the point where
D. Loan Payments even barter may be preferable is known
as:
116. Who among the following is most bene- A. inflation
fitted from inflation? [IAS 1989]
B. hyper-inflation
A. Government pensioners
C. deflation
B. Creditors
D. disinflation
C. Savings Bank Account holders
121. consist of Food Items of daily individ-
D. Debtors
ual consumption.
117. Consider the following statements: The A. CPI
price of any currency in international mar- B. WPI
ket is decided by the [IAS 1998]
C. GDP
1. World Bank
D. Food Basket
2. Demand for goods/services pro-
vided by the country concerned 122. Which of the following is considered to
3. stability of the government of the be more secure instrument?
concerned country
A. Cheque
4. economic potential of the country in
question B. Draft
Of these statements: C. Commercial Paper
A. 1, 2, 3 and 4 are correct D. Hundi
B. 2 and 3 are correct 123. Which of the following prints currency

notes of the denomination of Rs. 100?
C. 3 and 4 are correct
A. The Bank Note Press, Dewas
D. 1 and 4 are correct
B. The Indian Security Press, Nasik Road
118. When was decimal coinage introduced in
India? [CDS 2005] C. The Security Printing Press, Hyder-
A. 1947 abad
B. 1950 D. All of the above
C. 1957 124. As per the FSR Indian equity market val-
D. 1960 uations are relatively:
A. Low
119. As per the FSR lending by private sector
banks (PVBs), continued to that of PSB B. High
counterparts C. Stagnant
A. Outpace D. Ready to go high

125. Organization which supervises the credit 129. As per the FSR the moderation in ex-
activities of lenders in the informal sector? ternal demand has pulled merchandise ex-
A. No organisation ports into:
B. Reserve bank of India A. Expansion

B. Contraction
C. State government
C. Flat
D. Central government
NARAYAN CHANGDER
126. Consider the following statements: Full
convertibility of the rupee may mean: [IAS 130. What is inflation?
2002] A. rise in all prices
1. its free float with other interna- B. rise in most prices
tional currencies.
C. rise in some prices
2. its direct exchange with any other
international currency at any pre- D. rise in general prices
scribed place inside and outside the
131. Broad money in India is :
country.
3. it acts just like any other interna- A. M1
tional currency. B. M2
Which of these statements are correct? C. M3
A. 1 and 2 D. M4
B. 1 and 3 132. The highest denomination of currency
C. 2 and 3 notes in circulation as legal tender in India
D. 1, 2 and 3 is at present:
A. Rs. 50
127. In options, risk reversal means:
B. Rs.100
A. A measure of the difference between
C. Rs. 500
the implied volatilities of out-of-the money
call and put options D. Rs.1000
B. A measure of the summation between 133. If aggregate demand rises faster than
the implied volatilities of out-of-the money producers can supply goods services
call and put options
A. demand-pull inflation
C. Volatility
B. cost-push inflation
D. Time decay
C. inflation
128. When a person wants to sell exactly D. none of above
what the other person wants to buy. This
situation is known as 134. As per the latest released FSR if in an
economy Banks have low market power
A. Barter System
then the entry of a CBDC that directly com-
B. Double coincidence of wants petes with bank deposits may result in:
C. Trading A. Lower deposit rates
D. None of these B. Higher Deposit rates

C. No impact on deposit rates 139. As per the FSR, on some days the
overnight rates breached the repo rate,
D. Deposit rates will first decrease then
this was most likely due to:

increase
A. Day-to-day movements in government
135. Who among the following are not pro- cash balances
tected against inflation.? [Railways B. Increase in system liquidity
1992]
C. Increase in funds available at banks
A. Salaried class
B. Industrial workers
140. As per the latest released FSR under In-
C. Pensioners dia’s G20 presidency, one of the priorities
D. Agricultural farmers is to develop a framework for global reg-
ulation for cryptos. One of the possibility
136. The Indian Rupee is fully convertible: that the report talks about is:
1. In respect of Current Account of Bal- A. Prohibition, of unbacked crypto assets,
ance of Payments stablecoins and DeFi.
2. In respect of Capital Account of Bal- B. Limited use of unbacked crypto assets,
ance of Payments stablecoins and DeFi.
3. Into Gold
C. Adoption of unbacked crypto assets,
Which of these statements is/are correct stablecoins and DeFi.
?
D. Bank adoption of unbacked crypto as-
A. 1 only sets, stablecoins and DeFi.
B. 3 only 141. The special paper required for printing of
C. 1 and 2 only currency notes by the Security Presses In
the country is manufactured at :
D. 1, 2 and 3
A. Hyderabad
137. Banks provide a higher rater of interest B. Kolkata
on which one of the following accounts?
C. Hoshangabad
A. Saving account D. Dewas
B. Current account
142. In the last one decade, which one among
C. Fixed deposits for long periods the following sectors has attracted the
D. Fixed deposits for very short periods highest Foreign Direct Investment inflows
into India? [IAS 2004]
138. More money purchasing less goods and A. Chemicals other than fertilizers
services means
B. Services sector
A. Deflation C. Food processing
B. Inflation D. Telecommunication
C. Stagflation
143. Rising rates mainly result in for
D. None of these banks investment book.

A. MTM gain C. adverse effect on balance of payments

B. MTM loss
D. adverse effect on speculation
C. No impact
D. None of the above 149. Which of the following Mahatma Gandhi
series of currency notes issued by the RBI
144. Which of the following Mahatma Gandhi has a drawing of the ’Parliament House’
series of currency notes issued by the RBI depicted on it? [SSC Graduate 2003]
has “ecology” depicted on it? [SSC Grad-
NARAYAN CHANGDER
A. Rs. 500
uate 2003]
B. Rs. 100
A. Rs. 500
C. Rs. 50
B. Rs. 100
D. Rs. 10
C. Rs. 50
150. The terms of economics, the recession
D. Rs. 5
occurring two times with a small gap in
145. The legalises the use of rupee as a between is known as [Bank of India PO
medium of payment that cannot be refused 2010]
in settling transactions in India. A. Double Deflation
A. Government B. Deflation
B. Law C. Deep Recession
C. Court D. Double Dip Recession
D. Prime Minister 151. Which of the following causes of infla-
tion is often described as “too much money
146. In inflation prices rise about 2% an- chasing too few goods”?
nually.
A. Demand-pull inflation
A. Creeping
B. Cost-push inflation
B. Walking
C. Demand-push inflation
C. Running D. Cost-pull inflation
D. Hyper
152. Formal sector loan sources are
147. Which of the following is not a regulatory A. Money lenders, friends, relatives
institution in Indian financial system?
B. Land owners, employers
A. RBI
C. Banks, Cooperative societies, SHGs
B. CIBIL D. Reserve Bank of India, The World Bank
C. SEBI
153. In India is considered as the appropri-
D. IRDA ate indicator of Inflation
148. Rising prices lead to all but one of the fol- A. CPI
lowing: B. WPI
A. promotion of inequalities C. GDP
B. generation of black money D. none of above

154. Of the various ways of financing govern- 159. What prevents the poor from getting
ment’s investment expenditure, the least bank credit?
inflationary is : [PCS 1994]

A. absence of collateral
A. foreign aid B. documentation procedure
B. deficit financing C. high rate of interest
C. taxation D. none of these
D. public borrowing
160. Inflationary Gap is a situation character-
155. Most of the important decisions regard- ized by:
ing the savings and loan activities are A. excess of Aggregate Demand over Ag-
taken by the gregate Supply at the full employment
A. Secretary level
B. Treasurer B. gap between Galloping Inflation and
Runaway Inflation
C. Group leader
C. Inflation coupled with recession
D. Group members
D. Inflation that usually prevails in a de-
156. Convertibility of the rupee implies: [IAS veloping country
1994]
161. How many languages are used on a ten
A. being able to convert rupee notes into rupee note?
gold
A. 2
B. freely permitting the conversion of ru-
pee to other major currencies and vice B. 7
versa C. 10
C. allowing the value of the rupee to be D. 15
fixed by market forces
162. Which of the following is/are treated as
D. developing an international market for artificial currency? [IAS 2010]
currencies in India
A. ADR
157. When was the decimal system of cur- B. GDR
rency introduced in India?
C. SDR
A. 1948
D. Both ADR and SDR
B. 1950
163. Which of the following is wrongly
C. 1954
matched?
D. 1957
A. Depression: Insufficient demand caus-
158. Which among the following is not one of ing large scale unemployment of men and
the functions of RBI? machinery over a long period of time
A. Controlling inflation B. Recession: Reduction in demand and
production/ investment over a short pe-
B. Banking Supervision riod of time
C. Lender of last resort C. Stagflation: slow pace of economic ac-
D. Controlling employment in the country tivity due to falling prices

1.4 Indian Banking System and Capital Market 72
D. Boom: Rapid and all-round spurt in D. all of the above

economic activity
165. What 2 types of inflation are there?
164. M1 includes: A. demand pull and cost push
A. currency with public B. demand pull and supply glut
B. demand deposit with bank C. supply glut and demand side
C. other deposits with RBI D. supply inflation and demand inflation
NARAYAN CHANGDER
1.4 Indian Banking System and Capital Market
1. Sangita deposited Rs. 80 per month in a 5. Consider the following financial institu-
cumulative deposite account for six yerars tions of India:
at the rato of 6% per annum, then the ac- 1. Industrial Finance Corporation of In-
count she gets on maturity is dia (IFCI)
A. 1200 2. Industrial Credit and Investment
Corporation of India (ICICI)
B. 6811.20
3. Industrial Development Bank of In-
C. 6810.22 dia (IDBI)
D. 5811.20 4. National Bank for Agriculture and
Rural Development (NABARD)
2. State whether the statement will be in- The correct chronological sequence of the
cluded in estimating the Domestic Income:- establishment of these institutions is :
Salaries to Indians working in Japanese [IAS 2002]
Embassy in India.
A. 1, 2, 3, 4
A. Yes
B. 2, 3, 4, 1
B. No
C. 3, 4, 1, 2
C. None of the above D. 4, 1, 2, 3
D. Only (a)
6. In order to be scheduled to the Reserve
3. Full form of FERA Bank of India, a bank should have capital
and reserve of not less than:
A. Foreign Exchange Regulation Act
A. 1 lakh
B. Foreign Exchange Regulation Agency
B. 5 lakhs
C. Foreign Exchange Repulsive Agent
C. 10 lakhs
D. Foreign Expert Regulation Act
D. 50 Iakhs
4. Private Sector Mutual Funds in India were 7. Union Bank ATM at highest altitude is sit-
permitted in [UP PCS 2011] uated at
A. 1964 A. Ladakh
B. 1993 B. Nathula
C. 1994 C. Leh
D. 2001 D. Dharamshala

8. Bank is a organisation which accepts 12. Match the following:

deposits that can be withdrawn on de-
mand. Institutions Year of Formation

A. Lawful A. National Stock Exchange 1. 1989
B. OTCEI 2. 1992
B. Illegal
C. SEBI 3. 1993
C. Approved D. CARE 4. 1988
D. Insolvent
9. The tax which is imposed on the profit of A. A − 1, B − 2,C − 3, D − 4
corporate is known as: B. A − 2, B − 1,C − 3, D − 4
A. Income Tax C. A − 2, B − 1,C − 4, D − 3
B. Corporate Tax D. A − 3, B − 1,C − 4, D − 2
C. Sales Tax
13. The first three digits of MICR code repre-
D. Excise duty
sents?
10. As per the reports published- in vari- A. Pin Code
ous journals and newspapers the ’small
B. Bank Code
borrowers’ in rural areas still prefer to
take informal route for their credit needs. C. Branch Code
Which of the following is the ’informal D. None of the above
route’ of credit in financial sector? [Pun-
jab & Sindh Bank 2011] 14. What are gilt-edged securities?
A. Credit cards A. Securities issued by the multinationals
B. Loan against gold from financial insti-
tute B. Securities issued by the government
C. Debit cards C. Securities issued by the private sec-
D. Money lender tors
D. Securities issued by the joint venture
11. The Securities and Exchange Board of India
companies
has been set up to :
1. protect the interests of investors 15. Which banks do not accept deposits?
2. to regulate the activities of brokers A. Commercial banks
in the stock market
3. to ensure transparency in operation B. Investment banks
in the stock market. C. Retail banks
4. to encourage a healthy growth of D. None of the above
the stock market
Choose your answer from: 16. RBI Act was passed in
A. 1 and 2 A. 1933
B. 1, 2 and 4 B. 1935
C. 1, 2 and 3 C. 1956
D. 1, 2, 3 and 4 D. 1934

17. All of the following are subsidiaries of the 23. Which of the following item is not a com-
State Bank of India, except: ponent of profit?
A. State Bank of Bikaner and Jaipur A. Dividend
B. Central Bank of India B. Corporate Savings
C. State Bank of Hyderabad C. Corporation Tax
D. State Bank of Patiala D. Rent
18. How many key elements are there in KYC
NARAYAN CHANGDER
24. In which year was the major nationaliza-
policy? tion of banks in India carried out?
A. 4 A. 1947
B. 5 B. 1951
C. 6 C. 1969
D. 3 D. 1991
19. Which of the following is not an affiliate 25. Which fund transfer system is known for
of the Reserve Bank of India? its batch processing and is commonly used
A. Unit Trust of India for salaries, dividends, and bulk transac-
B. The Industrial Development Bank of In- tions?
dia A. NEFT
C. Agricultural Refinance Corporation B. RTGS
D. Deposit Insurance Corporation C. ECS
20. Electronic vehicles now come under prior- D. IMPS
ity lending sector
26. Which of the following is called a ’banker’s
A. true cheque’ ? [CDS 2002]
B. false A. Demand draft
C. may be B. Debit card
D. none of above C. Pay order
21. Income earned through entrepreneurship is D. Fixed deposit
called:
27. Which among the following steps is most
A. Profit
likely to be taken at the time of an eco-
B. Loss nomic recession?
C. Operating Surplus A. Cut in tax rates accompanied by in-
D. Royalty crease in interest rate
B. Increase in expenditure on public
22. When was SEBI constituted?
projects
A. April 1988
C. Increase in tax rates accompanied by
B. March 1982 reduction of interest rate
C. July 1992 D. Reduction of expenditure on public
D. March 1974 projects

28. Chairman of SEBI is appointed for a period B. those who wish to take loan against
of the mortgage of tangible assets.

A. Maximum 3 years C. those who have a good credit history
B. Maximum 6 years and are known to bank since 10 years.
C. Maximum five years D. those borrowers who are most pre-

ferred customers of the Bank.
D. Tenure not fixed
33. What is the Electronic Clearing System
29. MICR is a digit code. (ECS) primarily used for in the banking sec-
A. 18 tor?
B. 9 A. Managing physical branch operations
C. 15 B. Automating electronic fund transfers
D. 11 C. Managing ATM withdrawals
30. Which of the following is a final expendi- D. Handling customer inquiries
ture?
34. Which system is not 24*7
A. Computer purchased by a school.
A. NEFT
B. Scooter purchased by a dealer.
B. RTGS
C. Vegetable purchased by a restaurant.
C. CTS
D. Milk purchased by a tea-maker.
D. NACH
31. What is the difference between Deben-
tures and Equity? 35. NEFT system is managed by?
A. Debentures are sealed bonds acknowl- A. RBI

edging that money has been borrowed; eq- B. NPCI
uity is a shareholder’s share voting rights C. IDRBT
in proportion to his shareholding
D. ReBIT
B. An equity shareholder cannot with-
draw his amount whereas debentures can 36. What is the missed call number for Balance
be withdrawn by taking back the amount Inquiry in Union Bank?
C. Equity shareholding is more risky, com- A. 9619333333
pared to debentures which are bound to
B. 9666606060
return good interest on the principal
C. 9223008586
D. Both debenture and equity holders
have the right of voting irrespective of the D. 9223008486
proportion of holdings but debentures are
37. Find odd one:Authorization criteria of mer-
of lower value than equity
chant bankers
32. ’Sub Prime Lending’ is a term applied to A. Professional competence
the loans made to ... [Punjab & 5indh Bank
2011] B. All business performed
A. those borrowers who do not have a C. Capital adequacy

good credit history. D. none of above

38. Which of the following is not a feature of C. 1969

Bharat Bill Payment System (BBPS) D. 1946
A. Multiple payment modes
44. Co-operative movement in India is a
B. Instant confirmation
tier structure
C. Bill aggregation
A. 1
D. Loan disbursement
B. 2
NARAYAN CHANGDER
39. Find odd one:challenges faced by the mer- C. 3
chant bankers in India.
D. 4
A. Entry restrictions
B. Legal aspect 45. A person or an institution who normally
resides in country and whose economic in-
C. Poor new issue market
terest lies in that country is known as:
D. Banking policies
A. Normal Resident of a country
E. SEBI guidelines
B. Non-resident of a country
40. What is the minimum amount that can be C. Both (a) and (b)
transferred through RTGS in India?
D. None of these.
A. |5, 00, 000
B. |2, 00, 000 46. When a Bank manages properties of its
customers, it becomes a
C. |1, 00, 000
A. Trustee
D. |10, 00, 000
B. Debtor
41. NABARD was established in
C. Creditor
A. 1980
D. Beneficiary
B. 1982
C. 1985 47. “Momentum 2.0”-India’s first virtual
shopping app for the metro was launched
D. 1987
by?
42. The maturity value of a recurring deposite A. Hyderabad
account is Rs. 11, 364 in 4 years. In the
B. Chennai
monthly deposite is Rs. 200 then the rate
of interest is C. Delhi
A. 9% D. Kolkata
B. 7%
48. Which bank gives long term loan to farm-
C. 8% ers?
D. 10% A. NABARD
43. Reserve Bank of India was nationalised in B. Land Development Bank
A. 1949 C. SBI
B. 1935 D. Rural banks

49. Find out factor payment from the follow- 54. NBFC is a company registered under
ing:
A. The RBI Act

A. Subsidies
B. The Indian Contract Act
B. Old Age Pension
C. The Companies Act, 1956
C. Profit
D. Income Tax D. Co-operative society Act
50. What is the theme for this year’s Digital 55. Merchant bankers are:
Payments Awareness Week?
A. Merchant
A. Har payment digital
B. Banks
B. Digital Payment Apnao, Auron ko bhi
sikhao C. Neither merchants nor banks
C. Safe Practices in Digital Transactions D. none of above
D. E-Payments for Everyone, Everywhere,
Everytime 56. Which document is a prepayment instru-
ment that allows a bank’s customer to
51. Indian Government Bond yields are influ- withdraw money from their account to the
enced by which of the following?1. Ac- card?
tions of the United States Federal Reserve
2. Actions of the Reserve Bank of In- A. Credit Card
dia 3. Inflation and short-term interest B. Debit Card
rates.Select the correct answer using the
code given below C. Demand Draft
A. 1 & 2 only D. Electronic Clearing Service (ECS)

B. 2 only
57. accounts are opened by the persons
C. 1 & 3only who want to save some part of their in-
D. 1, 2 and 3 come either to earn interest on deposit or
for safety purposes.
52. The minimum capital required to set up a
Local area bank in India is A. Current
A. 1 crore B. Savings
B. 5 crore C. Term
C. 10 crore D. Recurring
D. 50 crore
58. In 1969, What amount of deposit with a
53. According to the RBI directions, a NBFC bank was the minimum requirement for a
(Non-Banking Finance Company) must pos- bank to be nationalised?
sess a Net-owned Fund of the amount:
A. 150 crore
A. minimum Rs.5 lakh
B. minimum Rs. 10 lakh B. 50 crore
C. minimum Rs. 25 lakh C. 750 crore

D. minimum Rs. 50 lakh D. 500 crore

59. Which among the following is the old- B. rural

est Development Financial Institution of In- C. semi urban
dia?
D. none of above
A. UTI
B. IDBI 65. RBI may collect from the merchant bankers
an initial authorisation fee, an annual fee
C. ICICI
and renewal fee.
D. IFCI
NARAYAN CHANGDER
A. True
60. Mr. Pankaj took Health insurance policy B. False
for his family nad paid Rs. 900 as SGST.
Find the total annual premium paid by him 66. The lead merchant bankers under category
for his policy, rate of GST being 18% shall accept a minimum underwriting of
A. Rs. 8000
B. Rs. 9000 A. 20%
C. Rs. 10000 B. 0.25%
D. Rs. 12000 C. 100%
61. Which of the following is not correct about D. 5%

EDGE?
67. Full form and Functions of IMFa
A. Digitisation
A. International Marginalised Focus:to
B. Excellence provide relief to marginalised people
C. Employees B. Indian Mutual Funds:to provide people
D. Growth with details about latest trends so as to in-
vest
62. RBI Innovation Hub is located at?
C. Immigration Money Funding:to pro-
A. Nagpur vide funding for immigrants
B. Hyderabad D. International Monetary Fund:overseeing
C. Mumbai economies, lending countries, and de-
D. Bengaluru velop them
63. The place where bankers meet and settle 68. Consider the following statements about
their mutual claims and accounts is known SEBI:1. Protection of the interest of in-
as : [Bank PO 1993] vestors.2. SEBI is the not constitutional
institution.3. The regulation and develop-
A. treasury
ment of securities market.4. Registering
B. clearing House the collective investment plans of mutual
C. collection Centre funds and its regulation
D. dumping Ground A. 1 and 2
B. 2 and 3
64. IRDP is poverty alleviation programme in
area C. all the above
A. urban D. Only 2

69. What is the CASA % of Union Bank as on 73. The central banking functions in India are
31.03.2023? performed by the: [CPO AC 2003]

A. 36.52% A. Central Bank
B. 35.62% B. State Bank of India
C. 32.65%
C. Reserve Bank of India
D. 35.42%
D. Both B and C
70. Which of the following correctly define In-
dia’s Foreign Exchange rate system? 74. Which among the following is not a joint
A. Fixed venture of our bank?
B. Free float A. India International Bank (BHD)
Malaysia
C. Managed float
D. Fixed target of band B. Union Asset Management Co. Pvt. Ltd.
71. Consider the following statements regard- C. Star Union Dai-chi LifeInsurance Co.
ing the EASE 2.0 Index:1. It provides Pub- Ltd.
lic Sector Banks a comparative evaluation D. ASREC India Ltd.
showing where banks stand on the Re-
forms Agenda.2. It has been released by 75. Micro Credit or Micro Finance is a novel
the NITI Aayog.Which of the statements approach to the bank with Poor.In this ap-
given above is/are correct? proach bank credit is extended to the poor
A. 1 ONLY through
B. 2 ONLY A. SHG
C. BOTH 1 & 2 B. Aganwadees
D. NEITHER 1 NOR 2 C. Credit Societies
Explanation:EASE 2.0 Index Results has
been released recently by the Indian D. RBI
Banking Association (IBA). Bank of Bar-
76. RBI publishes the Digital Payments Index
oda, State Bank of India, and erstwhile
at frequency?
Oriental Bank of Commerce were felici-
tated for being the top three (in that order) A. Semi-Annually
in the ‘Top Performing Banks’ category ac- B. Monthly
cording to the EASE 2.0 Index Results.
C. Yearly
72. The liabilities of a commercial bank are:
D. Weekly
1. time deposits
2. security holdings 77. When and where did the modern system
3. demand deposits of banking begin?
4. advances from the central bank
A. Bank Of Bengal 1890
A. 1, 2 and 3
B. 1, 3 and 4 B. Bank of mumbai 1857
C. 2 and 4 C. Madras national bank 1809
D. 1 and 3 D. Bank of Bengal 1809

78. ECS is commonly used for the bulk trans- A. S.P. at station A = 15000CGST & SGST
fer of funds for which of the following pur- = Rs. 900 for bothC.P. at station B =
poses? 12000S.P. at station B = 20000GST =
A. Online shopping 2400C.P. at station C = 25000
B. S.P. at station A = 15000CGST & SGST
B. Salary payments
= Rs. 900 for bothC.P. at station B =
C. Cash withdrawals 12000S.P. at station B = 20000GST =
D. Account balance inquiries 2400C.P. at station C =20000
NARAYAN CHANGDER
C. S.P. at station A = 15000CGST & SGST
79. Which of the following is not in intermedi- = Rs. 900 for bothC.P. at station B =
ate goods for a farmer? 15000S.P. at station B = 20000GST =
A. Seeds 2400C.P. at station C = 20000
B. Fertilizers D. S.P. at station A = 12000CGST & SGST
= Rs. 1800 for bothC.P. at station B =
C. Tractor
12000S.P. at station B = 25000GST =
D. All of these. 1200C.P. at station C = 25000
80. Mohan has a recurring deposit account in 83. Which one of the following is not a feature
a bank for 2 years at 6% p.a. simple in- of Limited Liability Partnership firm? [IAS
terest. If he gets Rs. 1200 as interest at 2010]
the time of maturity, Find:1. The monthly A. Partners should be less than 20
installment2. the amount of maturity
B. Partnership and management need
A. 1. 8002. 20, 400 not be separate
B. 1. 12002. 20, 400 C. Internal governance may be decided
C. 1. 9002. 20, 100 by mutual agreement among partners
D. 1. 10002. 20, 200 D. It is a corporate body with perpetual
succession
81. Merchant banking activities was origi-
nated with the merchant banking division 84. SODEXO meal coupons/ card is cate-
set by gorised as Prepaid Payment Instru-
ment?
A. yes bank
A. Closed
B. Grinds bays bank
B. Semi-closed
C. none of the above
C. Open
D. none of above
D. Semi-open
82. Fill in the blanks:When the goods/srvices
85. What is the maximum number of ad-
are sold for Rs. 15, 000 under intra-state
dresses that can be added in CIF ID?
transaction from station A to station B and
the rate fo GST is 12% as per GST sys- A. 2
temS.P. at station A =?CGST & SGST =?C.P. B. 3
at station B =?If Profit = Rs. 5000, then
S.P. at station B =?GST =?C.P. at station C C. 5
=? D. 7

86. Co-operative societies act was passed in B. National Cooperative Union of India

A. 1903 D. SBI
B. 1906
92. Union Bank was Established on
C. 1912
A. 19.11.1919
D. 1913
B. 19.11.1911
87. What is the purpose of the signature line C. 11.11.1919
on a cheque?
D. 11.09.1919
A. To write the amount in words
93. Which of the following best defines the
B. To authorize the payment
term ’Letter of Credit’ as used frequently
C. To mention the payee’s name in bank transactions? [SBI PO 1991]
D. To provide the payer’s contact informa- A. An order from a bank to another bank
tion abroad authorising the payment of a par-
ticular amount to a person named in the
88. NABARD stands for
letter
A. National Bank for Agriculture and Ru-
B. An unconditional undertaking given by
ral Development
a bank ensuring the payment of a particu-
B. National Bank for Reconstruction and lar amount to the drawee at a given date
Development
C. Nominal Area Bank for Agriculture C. Letter by a bank to a person stating
D. National Bank for Rural Development the terms and conditions of the loan sanc-
tioned to him by the bank
89. Which type of banking system focuses on
D. Statement showing outstanding”- de-
expansion through branches?
posits and credits of a bank for a partic-
A. Internet Banking ular period
B. Unit Banking
94. Bank rate is decided by which of the fol-
C. Branch Banking lowing?
D. Consumer Banking A. Reserve Bank of India
90. Positive pay feature is enabled on all B. Government of India
cheques for values of and above? C. State bank of India
A. 50, 000 D. SEBI
B. 1, 00, 000 95. The arguments to support opening up of
C. 1, 00, 000 the Insurance sector in India were:
D. 10, 00, 000 1. It will provide wider choice to cus-
tomers
91. Cooperative Banks that fall under the 2. It will infuse competition and effi-
banking regulation act 1949 are controlled ciency
by 3. It will widen the base of long term
A. NABARD funds

4. It will improve balance of payments C. An Indian user can remit up to INR 60,
position 000 in a day
Choose the correct answer from: D. Person to Person (P2P) remittances
are not permitted under the linkage
A. 1, 2
B. 2, 3 100. Responsibilities of merchant bankers.
C. 1, 2, 3 A. Legal aspect
B. Banking policies
NARAYAN CHANGDER
D. 1, 2, 3 and 4
C. To the investors
96. What is the theme for the fifth cohort of
D. Corporate dynamics
regulatory sandbox?
A. Retail payments 101. Consider the following statements:
B. Cross-border payments 1. life Insurance Corporation of India is

the oldest insurance company in In-
C. Prevention of financial frauds dia.
D. It is theme neutral 2. National Insurance Company limited
was nationalized in the year 1972
97. A dealer in a city buys some goods worth and made a subsidiary of General In-
Rs. 6000 from the same city. If the rate of surance Corporation of India.
GST is 18%, find how much will the dealer 3. Headquarters of United India Insur-
pay for the goods bought. ance Company limited are located at
A. Rs. 6080 Chennai.
B. Rs. 6050 Which of the statements given above are

correct? [lAS2006)
C. Rs. 7050
A. 1, 2 and 3
D. Rs. 7080
B. 1 and 2, only
98. Word Bull and Big are associated with C. 2 and 3, only
which branch of commercial activity? [UP D. 1 and 3, only
PCS 2002]
102. The strength of economy of any country
A. Foreign Trade
basically depends on a sound and bank-
B. Banking ing system.
C. Share Market A. Emerging
D. Manufacturing B. Financial
C. Solvent
99. Which among the following is not true
about the UPI-PayNow linkage? D. Strengthened
A. It was the first such linkage to include 103. GNPfc = NNPmp + −
participation from non-banking financial
A. Denied
companies (NBFCs) in the world
B. Indirect Tax
B. It is a cross-border linkage between
India’s Unified Payments Interface (UPI) C. Depreciation
and Singapore’s PayNow D. Subsidy

104. employees are eligible to acquire maxi- 109. The balance of payments of a country is
mum of houses in their entire career a systematic record of
in the bank by availing loan under IHLS

A. all import and transactions of a during
A. 1 a given period normally a year
B. 2 B. goods exported from a country during
C. 3 a year
D. 5 C. economic transaction between the

government of one country to another
105. Which of the following is incorrect about D. capital movements from one country
Union Monthly Plus? to another
A. Product code is 380
110. operates in inter bank call money
B. Loan facility available is up to 80% of market.
deposit amount
A. Commercial Banks
C. Scheme Code is RDFLX
B. Central Bank (RBI)
D. The menu for account opening is
FOAAC C. Co-operative Banks
D. Financer house of India
106. What is the minimum amount required for
cash remittance with one armed guard?
111. Functional of financial services exclude:
A. 20 lakh
B. 50 lakh A. Mobilisation of savings
C. 2 crore B. Collection Tax
D. 5 crore C. Allocation of funds
107. Which is the largest commercial bank in D. none of above

India?
112. Old age pension given by Government of
A. Bank of India India comes under:
B. Axis Bank A. Factor Income
C. SBI B. Capital Transfer
D. HDFC C. Current Transfer
108. State whether the given statement will D. Domestic Factor Payment
be included in estimating the Domestic
income:-Profit earned by Indian Employees 113. The early growth of merchant banking in
working in the Japanese Embassy in India the country is assigned to the
A. Yes A. Foreign exchange regulations act 1973
B. No B. fema
C. Both (a) and (b) C. Income tax act
D. None of these D. none of above

114. The Securities and Exchange Board of In- 119. Indian Oversees Bank sponsers Tamil-
dia was not entrusted with the function of nadu Grama Bank
A. Investor Protection A. true
B. Ensuring Fair Practices by Companies B. false
C. maybe
C. Promotion of efficient service by bro-
kers D. none of above
D. Improving the earning of equity hold- 120. Qualities of good merchant bankers.
NARAYAN CHANGDER
ers A. Entry restrictions
115. Regional rural banks: B. Leadership

C. Aggressive action
1. have limited area of operation
2. have free access to liberal refinance D. Non-cooperative
facilities from NABARD E. Attitude towards problem solving
3. are required to lend only to weaker
121. covers the entire range of services
sections
provided by a merchant banker.
A. 1 and 3 A. Cooperate counselling
B. 2 and 3 B. Project counselling
C. 1, 2 and 3 C. Credit syndication
D. 1 and 2 D. none of above
116. Central banking and merchant banking 122. Which financial body has asked interme-
both involve the provision of financial ser- diaries and companies to make regulatory
vice and advice. payments in digital mode?
A. SEBI
A. True
B. RBI
B. False
C. NSE
117. is an institution that deal with money D. BSE
and credit.
123. Relationship of the banker and the hirer
A. Government in case of safe deposit lockers is
B. Bank A. Licensor & licensee
C. RBI B. lessor and lessee
D. NABARD C. bailor and bailee
D. principal and agent
118. Nationalisation of banks was done with
the purpose of: 124. Which of the following is the Banker of
the Banks? [Railways 1995]
A. financing the industries
A. IDBI
B. improving credit facilities B. SBI
C. consolidating the economy C. RBI
D. improving security of deposits D. SBI and RBI

125. Which of the following combinations is A. 1 only

correct? [IFS 1989] B. 2 only

A. NABARD-Industrial Loans C. 3 only
B. IDBI-Short term loans D. 1 and 3
C. RBI-Long term finance
130. Under GST, ‘value addition’ refers to
D. RRB-Agricultural finance
A. Expenses ‘Plus Profit’
126. for auto sweep in SB PLUS minimum B. Cost plus tax
threshold balance is RS
C. Cost plus tax ‘Profit’
A. 25, 000
D. Tax plus profit
B. 30, 000
131. Which type of cheque is payable to the
C. 35, 000
person whose name is written on the face
D. 50, 000 of the cheque?
A. Bearer Cheque
127. Which of the following is the apex insti-
tution which handles refinance for agricul- B. Order Cheque
ture and rural development in India? C. Crossed Cheque
A. RBI D. Open Cheque
B. SIDBI
132. Which of the following is/are the poten-
C. NABARD tial impact(s) of sale of Government securi-
D. SEBI ties by the Reserve Bank of India?Increase
in liquidity in the market.Increase in inter-
128. To prevent recurrence of scams in Indian est rates.Select the correct answer using
Capital Market, the Government has as- the code given below:
signed regulatory powers to: [IAS 1995] A. 1 ONLY
A. RBI B. 2 ONLY
B. SBI C. BOTH 1 & 2
C. SEBI D. NEITHER 1 NOR 2
D. ICICI Explanation:When the RBI feels that there
is excess liquidity in the market, it resorts
129. Which of the following statements is/are to sale of securities thereby sucking out
correct? the rupee liquidity. Similarly, when the liq-
uidity conditions are tight, RBI may buy se-
1. NIFTY is based upon 50 firms in In-
curities from the market, thereby releas-
dia.
ing liquidity into the market.
2. NIFTY is governed and regulated by
the Reserve Bank of India. 133. Stock Exchanges play, role in an economy
3. NIFTY does not trade in mutual which may be termed as [UBI PO 2010]
funds Select the correct answer us-
ing the code given below: [CDS A. useful but need strict regulation
2012] B. harmful to proper capital markets

C. a gambling-where many investors get 138. Recurring Deposite Account is also known
ruined as amount
D. a very important segment to regulate A. Fixed Deposit
inflation
B. Saving Deposit
134. To regulate scam in Indian capital market, C. Current
which of the following body has regulatory
D. Cumulative Deposit
power:
NARAYAN CHANGDER
A. SEBI 139. Which of the following is not true about
the Reserve Bank of India?
B. RBI
A. It regulates the currency and credit
C. SBI
system of India
D. None of these
B. It maintains the exchange value of the
135. In India which of the following organiza- rupee
tions takes care of the agriculture and ru- C. Foreign exchange reserves are kept by
ral development credit needs? RBI
A. IDBI D. One rupee notes and coins are issued
B. NABARD by RBI
C. ICAR 140. central record keeping agency (CRA) for

D. FCI the new Pension system is:
A. NSDL
136. During the pre-independence period,
which bank was the central bank of India? B. CSDL
A. State Bank of India C. PFRDA
B. Reserve Bank of India D. IRDA
C. Bank of Bombay 141. The National Housing Bank was set up

D. Bank of Hindustan in India as a wholly-owned subsidiary of
which one of the following? [IAS 2007]
137. Which of the following constitute short- A. State Bank of India
term sources of finance for small scale in-
dustries? B. Reserve Bank of India
1. Private money lenders C. ICICI Bank

2. Loans by commercial banks D. Life Insurance Corporation of India
3. Credit Guarantee schemes
4. National Small Industries Corpora- 142. What does “KYC” stand for in the bank-
tion ing and financial sector?
A. 1, 2 and 3 A. Know Your Currency
B. 1 only B. Know Your Customer
C. 1, 2 and 4 C. Keeping Your Cash
D. 1, 2, 3 and 4 D. Know Your Credit

143. For the following transaction from Delhi A. Lion

to Jaipur, fill in the blanks to find
B. Tiger
the amount of bill:-MRP = Rs 50,

000, Discount % = 20%, GST = C. Panther
28%Discount =? Selling Price =?CGST D. Elephant
=?SGST=?IGST=?Amount of Bill =?
A. Discount = 12, 000Selling Price = 148. Which of these is not a consumer goods?
40, 000CGST = NASGST= NA IGST= 11, A. Use of bread by a household
200Amount of Bill = 51, 200
B. Use of milk by a household
B. Discount =10, 000Selling Price =40,
000CGST = 5600SGST= 5600IGST= C. Use of sugar by a family
NAAmount of Bill = 50, 200 D. Use of seed by a farmer.
C. Discount =10, 000Selling Price =40,
000CGST = NASGST= NA IGST= 11, 149. When was SEBI constituted? (a) April,
200Amount of Bill = 50, 200 1988 (b) March, 1982 (c) July, 1992 (d)
Dec. 1974
D. Discount =10, 000Selling Price =40,
000CGST = NASGST= NA IGST= 11, A. April, 1988 (
200Amount of Bill = 51, 200 B. March, 1982
144. The first Bank established in India was C. July, 1992
A. Punjab National Bank D. Dec. 1974
B. Traders Bank
150. What is the primary function of a bank?
C. State Bank of India
A. Selling goods and services
D. Bank of Hindustan
B. Lending money
145. Debenture holders of a company are its:
C. Manufacturing products
A. shareholders
D. Providing healthcare services
B. creditors
C. debtors 151. Who among the following is not a present
Executive Director of our bank?
D. directors
A. Shri Nitesh Ranjan
146. Which of the following is not a normal
resident of a country? B. Shri Nidhu Saxena
A. An Indian working in WHO situated in C. Shri Rajneesh Karnataka

India. D. Shri Ramasubramanian S
B. An American tourist in India.
152. Credit can be created by
C. An Indian working in American Em-
bassy A. RBI
D. A branch of WHO in India. B. Foreign Banks
C. Commercial Banks
147. What is the animal on the insignia of the
RBI ? [CPO SI 2002] D. Private Banks

153. A merchant bank can help an organization 2. Providing marketing assistance and
specifically in promotion functions refinance facilities at later stage
A. Sponsoring the issue 3. Running the project during initial
stage
B. Marketing
A. Only 1and 2
C. All of the above
B. Only 2 and 3
D. none of above
C. Only 2
NARAYAN CHANGDER
154. Merchant banks shall not associate with D. Only 1
any business other than that of the securi-
ties market. 159. Who was the founder of Union Bank?
A. True A. Dr. Bhogaraju Pattabhi Sitaramayya

B. Shri Khan Bahadur Haji Abdullah
B. False
C. MohanDas Karamchand Gandhi
155. A cheque can be encashed at the bank
D. Seth Seetharamji KisonDayal Poddar
counter.
A. Crossed 160. Which one of the following is likely to be
one of the most inflationary in its effects?
B. Post dated
A. Repayment of public debt
C. Bearer
B. Borrowing from the public to finance a
D. Stale budget deficit
156. How many banks were nationalized dur- C. Borrowing from the banks to finance a
ing the 1969 nationalization of banks in budget deficit
India? D. Creation of new money to finance a
A. 05 budget deficit
B. 10 161. Who is responsible for the collection and

publication of monetary and financial infor-
C. 14
mation?
D. 19
A. Finance Commission
157. The largest Public Sector Bank in India is: B. Finance Ministry
[CDS 1991] C. Reserve Bank of India
A. Central Bank D. Auditor and Comptroller General of In-
B. State Bank of India dia
C. Punjab National Bank 162. Bank rate is the rate at which:
D. Indian Overseas Bank A. a bank lends to the public
158. Which of the following activities would B. the Reserve Bank of India lends to the
Small Industries Development Bank of In- public
dia (SIDBI) undertake under the new rural C. the Government of India lends to other
industrialisation programme? [Bank PO countries
1994] D. the Reserve Bank of India gives credit
1. Consultation in erecting the project to commercial banks

163. Open Market Operations means: 167. Which amidst the following rural banks
A. Sale of agricultural products in the gov- has been named after a river? [NDA
2002]

ernment regulated Mandis.
A. Prathama Bank
B. Sale and purchase of bonds and secu-
rities to the commercial banks by the RBI. B. Varada Grameen Bank
C. Sale and purchase of bonds and secu- C. Thar Anchalik Grameen Bank
rities by the RBI to the government. D. Aravali Kshetriya Grameen Bank
D. Sale and purchase of bonds and se-
curities by the commercial banks to the 168. What menu will be used for first level
customers. verification for a RTGS of 11 lakhs?
Explanation:Open market operations A. HRTGS
(OMO) refers to when the Federal Re- B. HPORDM
serve buys and sells primarily U.S. Trea-
sury securities on the open market in or- C. HRTGSV
der to regulate the supply of money that D. UPLRTGS
is on reserve in U.S. banks, and therefore
available to loan out to businesses and 169. What is the maximum limit for a single
consumers. NEFT transaction in India?
A. |2, 00, 000
164. The number of Banks nationalised since
1969 is : [PCS 1994] B. |5, 00, 000
A. 8 C. |10, 00, 000
B. 12 D. No Limit
C. 14 170. ’Repo rate’ is the rate at which: [CDS

2004]
D. 20
A. the Reserve Bank of India lends to
165. SGST is applicable when State Government
A. Goods are sold within a state B. the international aid agencies lend to
B. Goods are sold from one GST dealer to Reserve Bank of India
a customer C. the Reserve Bank of India lends to
C. Goods are sold by a GST dealer to an- banks
other GST dealer D. the banks lend to Reserve Bank of In-
D. Inter-state supply dia
171. In India, the Central Bank’s function as

166. The primary relationship, which flows
the “lender of last resort” usually refers
from the essential functions of a bank is
to which of the following?1. Lending to
of
trade and industry bodies when they fail
A. Debtor and Creditor to borrow from other sources 2. Provid-
B. Agent and Principal ing liquidity to the banks having a tempo-
rary crisis 3. Lending to governments to fi-
C. Trustee and Beneficiary nance budgetary deficitsSelect the correct
D. Lessor and Lessee answer using the code given below

A. 1 and 2 only C. Securities Roll-back Operators

B. 2 only D. Securities Regulatory Organisations
C. 2 and 3 only
176. The Reserve Bank of India issues:
D. 3 only
A. all the currency notes
172. From the following mentioned places,
B. all the currency notes except the one
which place is not having a Union Bank Call
rupee note
Centre?
NARAYAN CHANGDER
C. all the currency notes except the hun-
A. New Delhi
dred rupee note
B. Mumbai
D. only notes of Rs. 10 and above
C. Bangalore
D. Hyderabad 177. Who amongst the following was never
a Governor of the RBI ? [SBI Associates
173. One of them is not the regulatory func- Clerk 2011]
tion of SEBI
A. Y. V. Reddy
A. Regulating the business in stock ex-
change B. Arup Roy Choudhury
B. Registration and regulating the work- C. C. Rangarajan

ing of Stock Brokers, Sub-Brokers, Mer- D. D. Subbarao
chant Bankers, Depository participants
and other intermediaries 178. Indian GST model has rate structure
C. Regulation of Collective Investment A. 3
Schemes
B. 4
D. Conducting research and publishing
market information which are useful to all C. 5
market participants D. 6
174. Ramesh deposited Rs. 200 per month for 179. Which one of the following Indian banks
36 months in a banks recurring deposite is not a nationalized bank? [IAS 2006]
amount at the rate of 11% per annum,
then the interest earned by him is A. Corporation Bank
A. Rs. 1200 B. Dena Bank
B. Rs. 1220 C. Federal bank
C. Rs. 1222 D. Vijaya Bank
D. Rs. 1221
180. Which Anti Virus is being used in Our
175. The acronym SRO, being used in the capi- Bank?
tal market for various market participants, A. Norton
stands for which one of the following?
[CDS 2008] B. Symantec
A. Self-Regulatory Organisations C. McAfee
B. Small Revenue Operators D. Quick Heal

181. How many languages are supported by B. 1978, 1980

Vyom app?
C. 1973, 1974

A. 13
D. none of above
B. 11
C. 10 186. In 1921, the Presidency Banks of Bengal,
Madras and Bombay were nationalised to
D. 12 give birth to:
182. A payment made periodically to a land- A. Punjab National Bank
lord for the use of property for a specific
B. Syndicate Bank
period of time is called:
A. Rent C. State Bank of India
B. Profit D. Punjab and Sindh Bank
C. Interest 187. Which of the following is not a type of

D. Royalty Risk in banking Sector
183. Which of the following item is not a com- A. Credit Risk

ponent of ‘Operating Surplus’? B. Market Risk
A. Royalty C. Liquidity Risk
B. Bonus D. Account Risk
C. Interest
188. The functions of the Reserve Bank of In-
D. Rent. dia are:
184. How do we define the terms bull and bear 1. issuing all notes and coins
with regard to stock markets? 2. distributing all notes and coins
A. A bull is an optimistic operator who 3. formulating monetary policy
first buys and then sells shares in expec- 4. acting as agent of Government in re-
tation of the price going up; a bear is a spect of India’s membership of the
pessimistic market operator who sells the IMF
shares in expectation of buying them back A. 1, 3 and 4
at a lower price
B. 2 and 3
B. There is nothing significantly different
as both operate in the capital market C. 2, 3 and 4
C. Bull is one who first sells a share and D. 1, 2, 3 and 4
then buys it at a lower price; bear means
one who first buys and then sells it in ex- 189. In India, the first bank of limited liability
pectation of prices going up managed by Indians and founded in 1881
was:
D. A bull is ready to buy any share; a bear
only deals in government securities A. Hindustan Commercial Bank
B. Oudh Commercial Bank
185. State bank of india started merchant
banking in followed by icici in C. Punjab National Bank
A. 1980, 1981 D. Punjab and Sind Bank

190. What is the minimum amount that can be 195. When the cash reserve ratio (CRR) is in-
transferred through NEFT? creased by the RBI, it will:
A. |1 LAKH A. Increase the supply of money in the
B. |10 LAKHS economy
C. |15 LAKHS B. Decrease the supply of money in the
economy
D. |2 LAKHS
C. No impact on the supply of money in
NARAYAN CHANGDER
191. Merchant Bank can not provide loan to the economy
individuals and small business
D. Initially increase the supply but later
A. True on decrease automatically.
B. False Explanation:When RBI increases the CRR,
fewer funds are available with banks as
192. Category 1 of merchant banker can act they have to keep larger portions of their
as: cash in hand with RBI. Thus hike in CRR
A. All issue management functions leads to an increase of interest rates on
loans provided by the Banks. Reduction in
B. Underwriter
CRR sucks money out of the system caus-
C. Consultant ing a decrease in the money supply.
D. none of above
196. Negotiable Instrument Act came into ef-
193. A merchant banking is a financial institu- fect in the year
tions conducting money market activities
A. 1881
and a lending
B. 1885
A. underwriting and financial advice
B. Investment service C. 1869
C. All of above D. 1911

D. none of above 197. Consider the following statements: [IAS
194. Why is the offering of “teaser loans” 2004]
by commercial banks a cause of economic 1. Reserve Bank of India was national-
concern?1. The teaser loans are consid- ized on 26 January, 1950
ered to be an aspect of sub-prime lend- 2. The borrowing programme of the
ing and banks may be exposed to the risk Government of India is handled by
of defaulters in future.2. In India, the the Department of Expenditure, Min-
teaser loans are mostly given to inexpe- istry of Finance.
rienced entrepreneurs to set up manufac-
turing or export units.Which of the state-
is/are correct?
ments 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. Neither 1 nor 2 D. Neither 1 nor 2

198. Which of the following organisations pre- 203. Merchant banks deal with funds raised
pare rural credit plans on annual basis for through and capital market.
all districts in India, which in turn form the

A. Secondary Market
base for annual credit plans of all rural fi-
nancial institutions? [RBI Grade B Officer B. Primary Market
2011]
C. money market
A. SIDBI
D. Securities market
B. NABARD
C. RBI 204. Which of the following is now a punish-
able offence by a Bank Account holder ?
D. Indian Bank’s Association
[Bank PO 1990]
199. In which year, some more commercial A. If a cheque is not crossed
banks (in addition to the first lot of 14)
were nationalised in India? B. If a post-dated cheque is issued
A. 1976 C. If a cheque drawn by him is dishon-
B. 1979 oured for insufficiency of funds in his ac-
count
C. 1980
D. Issuing a cheque without signature
D. 1982
200. On merging the 3 presidency banks i.e. 205. Microfinance is the provision of financial
Bank of Bengal, Bombay and Madras, services to people of low-income groups.
which bank was established? This includes both the consumers and the
self-employed. The service/services ren-
A. SBI dered under micro-finance is/are:1. Credit
B. RBI facilities2. Savings facilitie 3. Insurance
C. Imperial Bank of India facilities 4. Fund Transfer facilitiesSelect
the correct answer using the codes given
D. Central Bank of India below the lists:
201. Open market operations of a Central A. 1 only
Bank are sale and purchase of:
B. 1 and 4 only
A. foreign currencies
C. 2 and 3 ony
B. corporate securities
D. 1, 2, 3 and 4
C. trade bills
D. government securities 206. The RBI has regional offices at various
places. At which of the following places
202. All calculations in Recurring Deposite Ac-
it does not have an office? [RBI Grade B
count are based on
Officer 2011]
A. Simple Interest
A. Kota
B. Compound Interest
B. Nagpur
C. Both Option Simple and Compond In-
terest C. Lucknow
D. Time D. Panaji

207. Medicine supply to the Earthquake victim 212. What is the mandate of the KV Kamath
in India by British Government is: Committee formed by the Reserve Bank of
India?
A. Factor Income
A. Financial parameters for restructuring
B. Capital Transfer
of loans
C. Net Factor Income from Abroad B. Forex Reserve Management
D. Current transfer C. Potential impact of COVID-19 pan-
NARAYAN CHANGDER
demic on MSME credit
208. Which among the following is not among
the 4 E’s of Payments Vision 2025? D. Monetary Policy Framework Targets
Explanation:The RBI had formed a com-
A. e-Payments mittee under the chairmanship of former
B. Everytime ICICI Bank CEO KV Kamath to make rec-
ommendations on the financial parame-
C. Everyone ters to be considered in the restructuring
D. e-Rupee of loans impacted by the COVID-19 pan-
demic.
209. A Scheduled Bank is one which is included
213. are the source of finance, which is
in the: [CPO SI 2002]
provided by the banks to the companies to
A. II Schedule of Banking Regulation Act meet the short-term financial requirement.
B. II Schedule of Constitution A. Loans
C. II Schedule of Reserve Bank of India B. Bills
Act C. Advances
D. None of the above D. Credits
210. I’m a promise of payment, written with 214. The Reserve Bank of India (RBI) acts as
care, Bearer or Order, the choice you de- a bankers’ bank. This would imply which
clare. Cross me and guard me, don’t let of the following? (2012)1. Other banks
me stray. retain their deposits with the RBI.2. The
RBI lends funds to the commercial banks in
A. Cheque times of need.3. The RBI advises the com-
B. Demand Draft mercial banks on monetary matters.Select
the correct answer using the codes given
C. Pay-in-slip
below:
D. NEFT A. 2 and 3 only
211. Which of the following is at the apex of B. 1 and 2 only
Industrial Finance in India? [UDC 1995] C. 1 and 3 only
A. Industrial Finance Corporation D. 1, 2 and 3
B. Reserve Bank of India 215. In NEFT, when are the settlement batches
C. Industrial Development Bank of India typically processed on weekdays?
D. Industrial Credit and Investment Cor- A. Every Hour

poration of India B. Half-hourly intervals

C. Hourly intervals 221. What is the maximum limit for an IMPS

D. Daily, at a fixed time transaction in India?
A. No Limit

216. Basel Committee has given its recommen- B. |2, 00, 000
dations on which of the following aspects
of banking operations? [RBI Grade B Offi- C. |5, 00, 000
cer 2011] D. |10, 00, 000
A. Priority sector lending 222. Which of the following is not a regulatory
B. Risk Management institution in the Indian Financial System?
A. RBI
C. Micro financing
B. SEBI
D. All of the above
C. CIBIL
217. Legal Entity Identifier (LEI) is a code re- D. IRDA
quired for all transactions of?
223. Formal merchant banking activity in india
A. Rs 70 cr and above was orginated in
B. Rs 60 cr and above A. 1969
C. Rs 10 cr and above B. 1963
D. Rs 50 cr and above C. 1974
D. none of above
218. Which of the following is not a fee-based
financial service? 224. Which of the following is not a subsidiary
of Union Bank of India?
A. Corporate counseling
A. Union Bank of India(UK) Ltd.
B. Lease financing
B. UBI Services Ltd.
C. Issue management
C. Andhra Bank Financial ServicesLtd.
D. Profit management
D. Corporation Bank Financial services
219. The National Stock Exchange functions Ltd.
from: 225. Banking requlation act was passed in
A. New Delhi A. 1939
B. Mumbai B. 1959
C. Nagpur C. 1949
D. Kolkata D. 1969
226. Participatory Notes (PNs) are associated
220. Regional rural banks act was passed in
with which one of the following?
A. Consolidated Fund of India
A. 1973
B. Foreign Institutional Investors
B. 1974
C. United Nations Development Pro-
C. 1975 gramme
D. 1976 D. Kyoto Protocol

227. Which electronic fund transfer system is 232. a person who has the habit of resorting
typically used for high-value transactions to the same place or person to do business
and settles transactions individually and in A. Customer
real-time?
B. Bank
A. NEFT
C. RBI
B. RTGS
D. Businessman
C. IMPS
NARAYAN CHANGDER
D. ECS 233. The word bank is derived from Italian
word
228. Which one of the following Public Sec- A. Banco
tor banks’ emblem figures a dog and the
words ’faithful, friendly’ in it ? [CDS B. Banko
2010] 234. To regulate scam in Indian capital market,
A. Punjab National Bank which of the following body has regulatory
B. Syndicate Bank power:
A. SEBI
C. Oriental Bank of Commerce
B. SECI
D. State Bank of India
C. RBI
229. Which regulatory body controls the mar-
D. SBI
ket in India?
A. SEBI 235. What is the Official What’s App number
for UNION VIRTUAL CONNECT?
B. IRDA
A. 9223008586
C. RBI
B. 9666606060
D. TRAI
C. 9619333333
230. Which among these is not a parameter
D. 9223008486
under the RBI-Digital Payments Index?
A. Payment enablers 236. Issue management is an important func-
tion of and
B. Payment performance
A. Public manager and merchant banker
C. Payment Safety
B. Bank manager and lead manager
D. Consumer centricity
C. Merchant banker and lead manager
231. If Ram gots Rs. 6455 at the end of one D. none of the above
year at the rate fo 14% p.a. in a Recurring
Deposite Account then, his monthly instal- 237. GST rates applicable on goods and ser-
ment will be vices are:
A. 300 A. 0%, 5%, 12%, 18%, 26%
B. 500 B. 0%, 6%, 12%, 18%, 28%
C. 100 C. 0%, 5%, 12%, 18%, 28%
D. 250 D. 0%, 5%, 12%, 16%, 28%

238. Lead of merchant banker should advice Select the correct answer using the code
the issuer to enter into intermediary given below: [Asstt Commdt 2011]
for the purpose of issue management. A. 1 only

A. Agreement B. 1 and 2 only
B. Arrangement C. 2 and 3 only
C. Memorandam of association D. 1, 2 and 3
D. none of above 243. IFRS refers to

A. international finanacial reporting stan-
239. What is the central bank in the United dards
States called?
B. indian finanacial reporting standards
A. Federal Reserve C. institutional financial reporting stan-
B. Federal Reserve board darsd
C. Reserve bank of America D. none of the above
D. Bank of America 244. Select the leading bank in banking sector

A. IDBI
240. is regarded as the fourth element of B. BANDHAN
the financial system.
C. HDFC
A. Financial services
D. Bank of Maharashtra
B. Financial markets
245. Retail banking means
C. Financial institutions A. Wholesale banking
D. Financial instruments B. Banking for individuals
C. Banking for corporates
241. Financial services companies exclude:
D. Retail Outlets
A. Sole proprietor 246. Who appoints the chairman of SEBI?
B. Inurance companies A. Central Government
C. Co-operative Banks B. Stock Exchange

C. Brokers
D. commercial banks
D. Investors
242. Which of the following statements re- 247. OCRM stands for
garding Regional Rural Banks (RRB) in In-
dia is/are correct ? A. Operational Consumer Relationship
Management
1. The basic aim of setting up the RRBs
B. Operational Customer Relative Man-
is to develop rural economy.
agement
2. The area of RRBs is limited to a spe-
cific region comprising one or more C. Operational Customer Relationship
districts. Management
3. RRBs are sponsored by Commercial D. Organization Customer Relationship
Banks. Management

248. What do you understand by Bear raid? 252. When was the Reserve Bank of India
A. An attempt to bring down the price of (RBI) established?
strong short selling A. 1929
B. Simulataneous buying of shares and B. 1935
debentures in view of getting more values
C. 1947
in near future
D. 1951
C. Higher rate of price paid for the partic-
ular government share or debentures
NARAYAN CHANGDER
253. Transfer income is:
D. Any of the above A. One side payment.
249. The best way, a bank can avoid loss is to B. Factor payment.
: C. Factor income.
A. lend only to individuals known to the
D. Mixed Income
bank
B. accept sound collateral 254. A rapid increase in the rate of inflation is
sometimes attributed to the “base effect”.
C. give only short-term loans
What is “base effect”?
D. lend only to bank’s old customers
A. It is the impact of drastic deficiency in
250. Which of the following are under the supply due to failure of crops
purview of Industrial Development Bank B. It is the impact of the surge in demand
of India? due to rapid economic growth
1. Unit Trust of India C. It is the impact of the price levels of
2. Life Insurance Corporation of India previous year on the calculation of infla-
3. Export-Import Bank tion rate
4. State Finance Corporation of India
D. None of the statements (a), (b) and (c)
A. 1, 2 and 3
‘given above is correct in this context
B. 2, 3 and 4
255. Which of the following is true regarding
C. 1, 3 and4
RTGS transactions?
D. 1, 2 and 4
A. They have no upper limit.
251. Which one of the following statements is B. They are typically used for small-value
not correct? [CDS 2009] transactions.
A. The National Association of Securities
C. They are not available on weekends
Dealers Automated Quotations known as
and bank holidays.
NASDAQ, is an American stock exchange
D. They involve batch processing.
B. Nikkei is the stock market index for the
Tokyo Stock Exchange 256. Power to recognize Stock Exchange vests
C. S and P CNX Nifty is the index for 50 with
large companies on the Bombay Stock Ex- A. SEBI
change
B. RBI
D. Hang Seng Indexes record daily
changes of the largest companies of the C. Central Government
Hong Kong stock market D. SIDBI

257. Which of the following provides the C. Magnetic Ink Code Reader
largest part of the demand for loanable D. Monetary Information Control Regis-
funds in India?

ter
A. Farmers
263. First phase of CBDC retail pilot covered
B. Private-house purchasers which cities?
C. Corporate businesses A. Delhi, Mumbai, Bengaluru and
D. Hire-purchase borrowers Bhubaneswar
B. Bhubaneswar, Kolkata, Bengaluru and
258. Which is not a Banking Stock
Mumbai
A. Yes Bank
C. Chennai, Mumbai, Bengaluru and
B. No Bank Bhubaneswar
C. Bank of America D. Delhi, Mumbai, Kolkata and
D. Bank of India Bhubaneswar
259. UPI system is managed by? 264. When a bank accept deposits, it becomes
A. RBI
A. Creditor
B. NPCI
B. Debtor
C. IDRBT
C. Beneficiary
D. CCIL
D. Principal
260. Which of the following organisations in
India is mainly’ working to meet the credit 265. Consider the following statements re-
needs of all types of agricultural and rural garding the National Payments Corpora-
development activities? tion of India (NPCI):It is an initiative of
the Reserve Bank of India (RBI) and the In-
A. FCI dian Banks’ Association (IBA).RuPay card
B. IDBI payment scheme was launched by the
C. NABARD NPCI.Which of the statements given above
is/are correct?
D. ICAR
A. 1 ONLY
261. Which menu is used to collect the penalty B. 2 ONLY
in Locker?
C. BOTH 1 & 2
A. LKCM
D. NEITHER 1 NOR 2
B. LKRCM Explanation:National Payments Corpora-
C. LKKM tion of India (NPCI), an umbrella organisa-
tion for operating retail payments and set-
D. LKPM
tlement systems in India, is an initiative
262. What does MICR stand for in the context of Reserve Bank of India (RBI) and Indian
of a cheque? Banks’ Association (IBA) under the provi-
sions of the Payment and Settlement Sys-
A. Magnetic Ink Character Recognition tems Act, 2007, for creating a robust Pay-
B. Money Issuance Control Record ment & Settlement Infrastructure in India.

266. What is the role of ’Over-the Counter Ex- 271. is the prescribed standard by the RBI
change’ (OTC)? for cheques issued by all Indian banks to
A. Help in the introduction of multi-tiered facilitate faster clearing.
markets and import liquidity to them A. Crossed
B. Help to overcome the balance of pay- B. Cancelled
ment crisis C. CTS 2010
C. To arrange funds from different for- D. Ordered
eign banks of developing/ under develop-
NARAYAN CHANGDER
ing countries 272. Odd man out
D. All of the above A. Trust and confidence
267. Formula for calculating interest in recur- B. Contributes to economic growth

ring deposite account is C. Credit management
P×n×r D. Less revenue
A. 100×2
P×n(n+1)×r
B. 100×2×12 273. Which term best describes the process of
P×n(n+1)×r accepting deposits and granting loans by
C. 100×2 banks?
P×n×t
D. 100×2 A. Trading
268. On hiring out of locker, the relationship B. Banking
between banker and customer is that of C. Barter
D. Finance
A. Lessor and Lessee
274. The banks are required to maintain a cer-
B. Agent and Principal
tain ratio between their cash in hand and
C. Trustee and Beneficiary total assets. This is called: [IAS 1998]
D. Debtor and Creditor A. SBRC (Statutory Bank Ratio)
269. For regulation of the Insurance Trade in B. SLR (Statutory Liquid Ratio)
the country the Government has formed: C. CBR (Central Bank Reserve)
[UP PCS 2002]
D. CLR (Central Liquid Reserve)
A. SEBI
275. With reference to India, consider the fol-
B. Reserve Bank of India
lowing statements:1. Retail investors
C. Insurance Regulatory and Develop- through Demat account can invest in Trea-
ment Authority sury Bills and Government of India Debt
D. General Insurance Corporation Bonds in the primary market 2. The “Ne-
gotiated Dealing System-Ordering Match-
270. The person who draws the cheque is ing” is a government securities trading
called as a platform of the Reserve Bank of India.
A. Drawer 3. The “Central Depository Services
B. Drawee Ltd” is jointly promoted by the Reserve
Bank of India and the Bombay Stock Ex-
C. Payee change.Which of the statements given
D. Banker above is/are correct?

A. 1 ONLY inferior good and income of the consumers

B. 1 AND 2 ONLY increases 4. Its price fallsWhich of the
above statements are correct?

C. 3 ONLY
A. 1 and 4 only
D. 2 AND 3 ONLY
B. 2, 3 & 4
276. The lowering of Bank Rate by the Re- C. 1, 3 & 4
serve Bank of India leads to
D. 1, 2 and 3
A. (a.) More liquidity in the market
281. Which of the following statement is NOT
B. (b.) Less liquidity in the market
correct about the SEBI
C. (c.) No change in the liquidity in the
A. At present it is a non statutory body
market
B. At present it is a statutory body
D. (d.) Mobilization of more deposits by
commercial banks C. It got statutory powers by an ordi-
nance in 1992
277. State whether the statement will be
D. SEBI is managed by 6 members
included in estimating Domestic Income:-
Profit earned by a resident of India from 282. The administrative head office of SEBI is
his company in Singapore. at
A. Yes A. New Delhi
B. No B. Bombay
C. Only (a) C. Kolkata
D. None of these D. Chennai
278. Where is the Nodal Branch for CBDT Sit- 283. The basic regulatory authority for mutual
uated? funds and stock markets lies with the:
A. Bardoli A. Government of India
B. Dhantoli B. Reserve Bank of India
C. Mumbai C. Securities and Exchange Board of In-
dia
D. Bangalore
D. Stock Exchanges
279. The Imperial Bank of India, after nation-
alisation was given the name of: 284. The primary objective of Unit Trust of In-
dia is:
A. Reserve Bank of India
A. to assist the industries in financial dif-
B. Bank of India ficulties
C. State Bank of India B. to diffuse the benefit of development
D. Indian Overseas Bank among the masses
280. Consider the following statementsOther C. to accumulate funds for public invest-
things remaining unchanged, market de- ment expenditure
mand for a good might increase if1. Price D. to promote the investment habit
of its substitute increases 2. Price of its among those who have not been able to
complement increases 3. The good is an diversify investment risk

285. In India, the bank NABARD does not pro- 291. Mr. Gupta opened a recurring deposite
vide refinance to : [CDS 2002] account in a bank. He deposited Rs. 2,
A. Scheduled Commercial Banks 500 per month for two years. At the time
of maturity he got Rs. 67, 500. Find:1.
B. Regional Rural Banks The total interest earned by Mr. Gupta2.
C. Export-Import Banks The rate of interest per annum
D. State Land Development Banks A. 1. Rs. 85002. 10%
B. 1. Rs. 85002. 12%
NARAYAN CHANGDER
286. Bouncing of cheques has become an of-
fence. What is the punishment for the C. 1. Rs. 75002. 8%
same: D. 1. Rs. 75002. 12%
A. 6 months imprisonment 292. Which is the correct option for Number of
B. 1year imprisonment Zonal & Regional Offices of Union Bank?
C. 2 years imprisonment A. 20, 120
D. 3 years imprisonment B. 25, 125
C. 18, 134
287. Merchant bank is an organization that:
D. 18, 120
A. Underwrites securities for cooperat 293. For the following transaction within
B. Involved in owernship of commercial Delhi, fill in the blanks to find the amount
ventures of bill:-MRP = Rs. 12, 000, Discount % =
30%, GST = 18%Amount on the Bill is
C. All of the above
A. 9900
D. none of above
B. 9912
288. Role of merchant banking is Innovation. C. 9910
A. False D. 9914
B. True 294. The present chairman of SEBI is
289. How many themes and Action points are A. Ajay Tyagi
there in EASE 5.0? B. UK Sinha
A. 6, 22 C. CB Bhave
B. 5, 22 D. Vijay Khelkar
C. 6, 21 295. Which one is not true about the benefits
D. 5, 21 of the proposed digitization of Kisan Credit
Cards?
290. The system of value added taxation is ap-
A. It will reduce costs for borrowers
plicable to:
B. It will make the lending more efficient
A. excise duties
C. It will increase the Turn Around Time
B. income tax
for loan disbursement
C. estate duty D. It will entail automation of various pro-
D. taxes on agricultural income cesses within banks

296. Which of the following is not an asset customers, while an NBFI is , mainly con-
held by commercial banks? cerned with the term loan needs of large
enterprises

A. Bills of exchange
B. Current account deposits C. a bank deals with both internal and
international customers while an NBFI is
C. Credit balances with the Reserve Bank mainly concerned with the finances of for-
eign companies
D. Money lent at short notice D. a bank’s main interest is to help in busi-
297. The main function of the Exim Bank is: ness transactions and saving/investment
activities while an NBFl’s main interest is
A. to help RBI in the regulation of foreign in the stabilisation of the currency
exchange
B. to prevent unlicensed transaction 301. Who cancelled Sahara Mutual Fund li-
cense on 28th July’15?
C. to promote exports and curtail imports
A. Supreme Court
D. to conserve foreign exchange B. SEBI
C. BSE
298. If the cash-reserve ratio is lowered by
the Central bank, what will be its effect D. CRISIL
on credit creation?
302. The oldest stock exchange of India is :
A. Decrease
A. Bombay Stock Exchange
B. Increase
B. Ahmedabad Stock Exchange
C. No change
C. Bangalore Stock Exchange
D. None of these
D. Hyderabad Stock Exchange
299. Regional Rural Banks are designed to
work in which of the following ideals? 303. Merchant banking in India has been given
[IAS 1988] a specific direction by RBI Regulation.
A. Work on basics of commercial banks A. False
B. Help the targetted groups B. True
C. Keep lending rates lower than cooper- 304. When Raj stayed in a hostel for 2 days
ative institutions he had to pay Rs 7080 including 18% GST.
D. Work on innovative and adaptive ide- What is the tariff of th hostel for a unit of
als accomodation?
A. Rs. 2500
300. The difference between a bank and a non-
banking financial institution (NBFI) is that: B. Rs. 3000
[IAS 1994] C. Rs. 2000
A. a bank interacts directly with cus- D. Rs. 3500
tomers while an NBFI interacts with
banks and governments 305. Which bank is considered the oldest in In-
B. a bank indulges in a number of activ- dia, established in 1770?
ities relating to finance with a range of A. Punjab National Bank

B. Reserve Bank of India 311. The Committee on Financial Sector Re-

C. State Bank of India forms was headed by:
D. Bank of Hindustan A. Rangarajan

B. Urjit Patel
306. SEBI has allowed celebs to endorse which
products? C. Raghuram Rajan
A. Stocks and Shares D. Viral Acharya
Explanation:The Raghuram Rajan Commit-
NARAYAN CHANGDER
B. Mutual funds
tee on Financial Sector Reforms was a
C. Dividend committee constituted by the Government
D. Insurance of India in 2007 for proposing the next
generation of financial sector reforms in
307. A small loan amount given to low income India.An Internal Working Group of the
households or groups is known as Reserve Bank of India (RBI) has recently
A. Cash Credit recommended that corporate houses be
given bank licenses. The Raghuram Rajan
B. Micro Credit
committee had said that it is premature to
C. Rural Credit allow industrial houses to own banks.
D. Simple Credit
312. A crossed cheque is one, which can be en-
308. When was the Reserve Bank of India cashed only: [IFS 1991]
taken over by the Government? [PCS
A. by the drawee
1994]
B. through a bank,
A. 1945
C. at the State Bank of India
B. 1948
C. 19S2 D. after it has been transferred to an-
other person
D. 1956
313. for auto sweep in SB PLUS minimum re-
309. What is the theme of the first global sultant balance should be RS
hackathon-HARBINGER-organised by
RBI? A. 10000
A. Inclusive Digital Services B. 25000
B. Smarter Digital Payments C. 35000
C. Alternate authentication mechanism D. 40000
for digital payments
314. I’m electronic magic, funds on the go,
D. Creating a sustainable financial world
Swift and secure, in a timely flow. Real-
310. Which of the following Indian Naval Ship time transfers, without delay, Which ser-
is having Union Bank ATM? vice am I?
A. INS Vikrant A. NEFT
B. INS Vikramaditya B. IMPS
C. INS Viraat C. RTGS
D. INS Talwaar D. All of these

315. Who amongst the following has never 319. State whether the statement will be in-
held post of the Governor of the RBI? [RBI cluded in estimating the Domestic income:-
Grade B Officer 2011] Broker’s Commission on the sale of an old

car.
A. L.K. Jha
A. Yes
B. Manmohan Singh
B. No
C. Bimal Jalan
C. Both (a) and (b)
D. Usha Thorat
D. None of these
316. Round the clock, I never sleep, Instant
transfers, my promise I keep. From mo- 320. The price of any currency in international
biles and banks, I serve you best, Who am market is decided by the1. World Bank2.
I? Put your mind to the test! demand for goods/services provided by
the country concerned3. stability of the
A. NEFT
government of the concerned country4.
B. RTGS economic potential of the country in ques-
tionWhich of the statements given above
C. IMPS
are correct?
D. ECS
A. 1, 2, 3 and 4
317. Which of the following are the functions B. 2 and 3 only
of the Central Bank of India? [Railways
C. 3 and 4 only
1992]
D. 1 and 4 only
1. Regulation of currency and flow of
credit system
321. What is the primary duty of a banker in
2. Maintaining exchange value of ru-
the banker-customer relationship?
pee
3. Formulating monetary policy of In- A. Maximizing profits for the bank
dia B. Safeguarding customer’s interests
4. Supervisory powers over the indige- and funds
nous bankers and leasing companies
C. Promoting government policies
A. 1 and 3
D. Providing investment advice
B. 1, 2 and 3
C. 1, 2 and 4 322. Consider the following statements: [IAS
2004]
D. 1, 2, 3 and 4
1. The National Housing Bank, the
318. Which one of these is not a part of apex institution in housing finance in
PROJECT POWER? India, was set up as a wholly owned
subsidiary of the Reserve Bank of
A. Revisit products and places India
B. Employees 2. The Small Industries Development
Bank of India was established as a
C. Outreach and Connect
wholly owned subsidiary of the In-
D. Publicity and advertising dustrial Development Bank of India.

Which of the statements given above A. Commercial Banks

is/are correct? B. Cooperative Banks
A. 1 only C. Regional Rural Banks
B. 2 only D. Microfinance Institutions
C. Both 1 and 2
327. Among the following, which one is not a
D. Neither 1 nor 2 credit rating agency operating in India?
323. State the formula of National Income at A. CRISIL
NARAYAN CHANGDER
Factor Cost B. ICRA
A. National Income at Market Price − C. Dow Jones
B. National Income at Market Price + In- D. CARE
direct Tax
328. In a Recurring Deposite Account, if P =
C. National Income at Market Price −
Rs. 600; M.V. = Rs. 24930; r = 10% per
D. National Income at Market Price × annum, then the time (in years) for which
the account is held will be
324. In some parts of India, farmers face acute
distress because of heavy burden of debt A. 1 year
from non-institutional renders. Who can B. 2 years
be called a non-institutional lender? [RBI C. 3 years
D. 4 years
A. Small Banks
B. Grameen Banks 329. EXIM Bank was set-up in :
C. Micro Finance Institutions A. 1980
D. Money Lenders B. 1982

C. 1985
325. Consider the following events:
D. 1986
1. Conversion of Imperial Bank of India
into S.B.I. 330. Which of the following is not a security
2. Establishment of NABARD measure implemented by RBI for digital
3. Setting up of RRBs payments in India?
4. Nationalisation of R.B.I. A. Two-factor authentication
The correct chronological sequence of these B. Tokenization
events is : [CDS 1999]
C. Cashback offers
A. 4, 1, 2, 3
D. Biometric authentication
B. 4, 1, 3, 2
331. Which two of the following nationalized
C. 1, 4, 3, 2 banks have been merged as per the recom-
D. 1, 4, 2, 3 mendation of the Narsimhan Committee?
[NDA 1995]
326. In India, which of the following have the
highest share in the disbursement of credit A. New Bank of India and Bank of India
to agriculture and allied activities? [CSAT B. Central Bank of India and Corporation
2011] Bank

1.5 Fiscal System of India 107
C. Parur Bank of India and Bank of India D. shareholders are the owners of the
D. Punjab National Bank and New Bank of company whereas debenture holders are
the creditors of the company

India
332. Consequent ’upon the recommendations 335. Maximum investment limit in SCSS?
of the Working Group on Rural Banks, 5 A. 15 lakhs
Rural Regional Banks were initially set up
in the year [CPO SI 2010] B. 30 lakhs
A. 1973 C. 20 lakhs
B. 1974 D. 25 lakhs
C. 1975 336. What does CTS-2010 stand for in the con-
D. 1976 text of cheques?
333. Consider the following statements: A. Cheque Truncation System-2010

1. ICICI Bank is the largest private sec- B. Centralized Transaction Service-2010
tor bank in India. C. Clearinghouse Tracking System-2010
2. Postal life Insurance is the oldest life
D. Cheque Transfer System-2010
insurance organization in India.
Which of the statements give above is/are 337. Which type of account offers the highest
correct? [IAS 2005] returns?
A. 1 only A. A savings account
B. 2 only B. Basic account
C. Both 1 and 2 C. A money market account
D. Neither 1 nor 2 D. All of the above
334. The main difference between shares and 338. Banks and companies worldwide utilize
debentures is : securities to identify, uniquely, their
A. debentures can only be issued after stocks, bonds and other securities
shares
A. Securities identification numbers
B. shareholders receive dividend on (ISIN)
shares whereas debenture holders re-
B. Inter identification numbers (ISIN)
ceive interest on debentures
C. debentures can be partly converted C. Intra identification numbers (ISIN)
into shares whereas shares cannot be D. Indispensible identification numbers
converted into debentures (ISIN)
1.5 Fiscal System of India

1. When the ratio of indirect taxes to total 3. higher taxation burden on the poor
taxation revenue is very high, it leads to : 4. fall in tax revenues
A. 1 and 2
1. rise in the price level
2. higher taxation burden on the rich B. 1 and 3

C. 1, 2 and 4 6. What do we call the instruments of mone-

D. 1, 3 and 4 tary policy which directly affect the quan-
tity of money supply?
2. The tax whose share in overall taxation A. Quantitative instruments
revenue has gone up rapidly during the
planning period is : B. Qualitative instruments
A. income tax C. Money instruments

D. None the above
B. wealth tax
NARAYAN CHANGDER
C. capital gains tax 7. Which of the following would signify
scarcity in economics?
D. tax on production
A. Production of 100 kg of a certain item
3. The RBI uses the following instruments for instead of the targeted 150 kg
quantitative central of credit: (i) Cash Re-
B. Availability of 10 kg of rice against a
serve Ratio (ii) Bank Rate (iii) Open Mar-
demand for 15 kg
ket Operations (iv) Margin Requirements
Choose your answer from: C. Availability of post-graduates for jobs
of typists
A. (i) and (ii)
D. Quantity supplied remains the same
B. (ii) and (iv) when price changes
C. (i), (ii) and (iii)
8. The national income of India is estimated
D. (i), (ii), (iii) and (iv) mainly through: [CBI 1993]
4. National Income total reveals: A. production method alone
1. Production side of the economy B. expenditure method alone
2. Distribution side of the economy C. production and expenditure methods
3. Expenditure side of the economy
D. production and income methods
Choose your answer from
A. 1 only 9. Net factor income from abroad added to
GDP gives:
B. 2 only
A. GNP
C. 1, 2 and 3
B. NNP
D. 3 only
C. NDP
5. In gross domestic saving by sector of ori- D. per capita income
gin, the four sectors in order of importance
are: 10. With reference to Indian economy, con-
A. Household Sector, Public Enterprises, sider the following statements:
Government Sector, Corporate Sector 1. The Gross Domestic Product (GDP)
B. Household Sector, Corporate Sector, has increased by four times in the
Government Sector, Public Enterprises last 10 years.
2. The percentage share of Public Sec-
C. Government Sector, Household Sector, tor in GDP has declined in the last
Public Enterprises, Corporate Sector 10 years. Which of the statements
D. Household Sector, Government Sector, given above is/are correct? [IAS
Public Enterprises, Corporate Sector 2010]

A. 1 only B. DECREASES AS THE NATIONAL IN-

B. 2 only COME INCREASES

C. Both 1 and 2 C. DOES NOT ALTER AS THE NATIONAL
INCOME INCREASES
D. Neither 1 nor 2
D. MAY INCREASES PR DECREASES AS
11. Increase in Oil Pool Deficit implies: THE NATIONAL INCOME INCREASES
A. increasing gap between international 16. Consider the following actions which the
and domestic oil prices Government can take:
B. domestic oil price is comparatively 1. Devaluing the domestic currency.
more than international price 2. Reduction in the export subsidy.
C. government’s Fiscal Deficit goes up 3. Adopting suitable policies which at-
tract greater FDI and more funds
D. none of these from FIIs. Which of the above ac-
12. Since 1951, in India: tion/actions can help in reducing
the current account deficit? [CSAT
A. national income has increased but per 2011]
capita income has decreased
A. 1 and 2
B. national and per capita incomes have
both increased fast B. 2 and 3
C. 3 only
C. national income has increased and per
capita income has also increased but at a D. 1 and 3
slower rate
17. This is a paper component of the money
D. national income and per capita income supply, today consisting of Federal Re-
have increased every year serve notes.
13. Which of the following is not a direct tax? A. coins
A. Tax on income B. currency
B. Tax on wealth C. both coins and currency
C. Tax on expenditure D. debit cards
D. Tax on entertainment 18. The Central Government had recently al-

lowed additional borrowing limit to the
14. The highest sector wise contribution to States for current financial year subject to
gross domestic saving comes from: which of the following reform(s)?1. Imple-
A. private corporate sector mentation of One Nation One Ration Card
System2. Ease of doing business reform3.
B. household sector
Implementation of National Education Pol-
C. public sector icy 2020Select the correct answer using
D. cooperative sector the code given below:
A. 1 and 2 only
15. In a progressive tax, the following state-
ments holds true: B. 2 and 3 only
A. INCREASES AS THE NATIONAL IN- C. 1 and 3 only
COME INCREASES D. All of the above

19. On account of some national emergency or C. Countries having large per capita in-
in order to carry out some secret mission, come
the government sometimes requires funds D. Countries advanced in technology
but may not give the details of the expen-
diture estimates. The House grants some 23. Put the main sources of revenue of the Cen-
lumpsum for this called : tral Government in ascending order of im-
A. emergency budget portance:
B. vote of Credit 1. Income tax
NARAYAN CHANGDER
2. Corporation tax
C. contingency bill
3. Customs
D. supplementary budget 4. Excise duties
20. Which one of the following organiza- A. 1, 2, 3, 4
tions/agencies’ are involved in drafting B. 3, 2, 4, 1
the Union Budget of India? [Punjab &
Sindh Bank 2011] C. 4, 3, 1, 2
A. The Planning Commission only D. 4, 3, 2, 1
B. The Comptroller and Auditor General 24. Consider the following taxes:
only
1. Corporation Tax
C. Administrative Ministries only 2. Value Added Tax
D. 3. Wealth Tax
E. & 4. Import duty Which of these is/are
Indirect taxes?
F. only
A. 1 only
G. All
B. 2 and 4
H. ,
C. 1 and 3
I. &
J. D. 1, 2 and 4
21. In the short run, a producer continues his 25. A deflator is a technique of: [IAS 1992]
production as long as he covers: [Asstt A. adjusting for changes in price level
Grade 1992]
B. adjusting for change in commodity
A. variable cost
C. accounting for higher increase of GNP
B. fixed cost
C. average cost D. accounting for decline of GNP
D. marginal cost
26. The standard of living in a country is rep-
22. Which of the following are referred to as resented by its:
the developed economies?
A. national income
A. Countries earning huge industrial prof-
B. per capita income
its
B. Countries proficient in trade and ex- C. poverty ratio
port D. unemployment rate

27. The exchange of goods and services with- A. 1 and 2

out using money is known as B. 2 and 3

A. near money. C. 1 and 3
B. bartering. D. 1, 2 and 3
C. double coincidence of wants. 32. What is an example of a positive external-
D. fiat money. ity?
A. Air pollution from factories
28. Consider the following statements: In In- B. Eminent domain
dia, stamp duties on financial transactions
are: C. Allowing people to smoke on school
campuses
1. levied and collected by the State
D. A student getting immunizations in or-
Government
der to go to school
2. appropriated by the Union Gov-
ernment Which of the statements 33. The total value of goods and services, pro-
is/are correct? duced’ in a country during a given period
A. Only 1 is [CPO SI 2011]
A. Disposable income
B. Only 2
B. National income
C. Both 1 and 2
C. Per capita income
D. Neither 1 nor 2
D. Net national income
29. Development is : [CDS 1999] 34. Which is the best measure of economic
A. synonymous with economic growth growth of a country ?
A. GNP
B. narrower than economic growth
B. GDP
C. wider than economic growth
C. Net revenue
D. not related to economic growth
D. None of these
30. The system of Budget was introduced in 35. Who is the custodian of Contingency Fund
India during the viceroyalty of: [Central of India?
Excise 1994]
A. THE PRESIDENT
A. Canning B. PRIME MINISTER
B. Dalhousie C. RBI
C. Ripon D. FINANCE MINISTER
D. Elgin 36. Who is the chairperson of the Monetary
Policy committee of India?
31. Funds belonging to Government of India
A. Finance Minister
are kept in:
B. Prime Minister
1. Consolidated Fund of India
2. Public Account Fund of India C. RBI Governor
3. Contingency Fund of India D. Chief Economic Advisor

37. When the government raises taxes, what B. traders

does it take out of circulation? C. consumes
A. Money D. tax payers
B. Credit
43. Which of the following is not a component
C. People
of revenue receipts of the union govern-
D. Jobs ment?
A. Corporate tax receipts
NARAYAN CHANGDER
38. The first estimate of national income in In-
dia was made by: B. Dividends and profits
A. Mahalanobis C. Disinvestment receipts
B. V.K.R.V. Rao D. Interest receipts
C. Dadabhai Naoroji
44. ’Liquidity trap’ is a situation in which:
D. Prof. Sheroi
A. people want to hold only cash because
39. The Indian income tax is : prices are falling everyday
1. direct B. people want to hold only. cash be-
2. progressive cause there is too much of liquidity in the
3. indirect economy
4. proportional C. the rate of interest is so low that no
A. 1and 2 one wants to hold interest bearing assets
and people wants to hold cash
B. 1and 4
D. there is an excess of foregin exchange
C. 2 and 3
reserves in the economy leading to excess
D. 3 and 4 of money supply
40. The basic attribute of a formal organiza- 45. Which one of the following statements is
tion is : [CPO AC 2003] correct? Fiscal Responsibility and Budget
A. esteem and prestige Management Act (FRBMA) concerns [IAS
2006]
B. roles and duties
A. fiscal deficit only
C. dominance and supremacy
B. revenue deficit only
D. rules and regulations
C. both fiscal and revenue deficit
41. Excise Duties are taxes on :
D. neither fiscal deficit nor revenue
A. sale of commodities deficit
B. export of commodities
46. Which of the following are the main causes
C. production of commodities of slow rate of growth of per capita in-
D. import of commodities come in India? [IAS 1993]
1. High capital-output ratio
42. Main bearers of the burden of indirect tax 2. High rate of growth of population
are: 3. High rate of capital formation
A. manufacturers 4. High level of fiscal deficits

A. 1 and 2 51. Consider the following items of wholesale

B. 2, 3 and 4 price index: [Asstt Commt 2010]
1. Primary articles

C. 1 and 4
2. Fuel, power, lights and lubricants
D. 1, 2, and 4 3. Manufacturing products Arrange the
above items in descending order in
47. The per capita income has been low in India terms of their weightage in calculat-
because: ing wholesale price index
A. of population growth A. 1, 2, 3
B. of price rise B. 1, 3, 2
C. more people are in rural areas C. 3, 1, 2
D. of regional imbalances D. 3, 2, 1
48. Which of the following gives a correct pic- 52. Which of the following statements about
ture of the share of various sectors in eco- indirect taxes in India is/are true?
nomic growth in India over the years? 1. Yield from indirect taxes is much
1. Primary sector-stagnant more than that from direct taxes
2. Secondary sector-increasing 2. Indirect taxes have grown faster
3. Tertiary sector-decreasing than direct taxes since independence
A. 1 and 2 3. Indirect taxes are ultimately paid
for by persons who do not actually
B. 2 and 3 pay the taxes to the Government
C. 2 only 4. Increase in indirect taxes is a wel-
come feature in a developing coun-
D. 1 only
try
49. Which of the following constitute the A. 1, 2 and 4
internal debt of the Central Govern- B. 1 and 2
ment?1.Treasury Bills2.Non-marketable
securities issued by Central GovernmentS- C. 2 only
elect the correct answer using the code D. 1, 2 and 3
given below:
53. “The Fed” refers to the
A. 1 only
A. Federal Bureau of Investigation
B. 2 only
B. Federal Government
C. Both 1 and 2
C. Federal Reserve System
D. ) Neither 1 nor 2 D. Federal Income Tax
50. Which of the following schemes was in- 54. Which one of the following is the most im-
tended to tap the black money? portant item of non-plan expenditure?
A. SBI Deposit Scheme A. Interest payment
B. UTI Bonds B. Defence
C. Long term Operations Scheme C. Fertiliser subsidies
D. India Development Bonds D. Loans to public enterprises

55. Fiscal Policy in India is formulated by A. EFFECTS TO SLOW DOWN THE

which of the following? GROWTH RATE IN EXPENDITURE
A. RBI B. EFFORTS TO INCREASE TAX REVENUE
B. MINISTRY OF FINANCE C. EFFORTS TO RAISE PROFITS OF PUB-
LIC UNDERTAKINGS
C. NEETI AAYOG
D. ALL ARE CORRECT
D. NONE OF THEM
61. The Indian budget includes:
NARAYAN CHANGDER
56. Share of Direct tax in post economic re-
form is: A. revised estimates for the current year
A. increasing
B. budget estimates for the following
B. decreasing year
C. can’t say anything C. actual figures of the preceding year
D. fluctuating D. all of these
57. India’s progress has been reasonably sat- 62. Real national income denotes:
isfactory in connection with:
A. national income at constant prices
A. growth of per capita income
B. per capita income
B. reduction in inequalities C. national income at current prices
C. reduction of unemployment D. net factor income
D. growth of GNP
63. After 1991, the Central Government im-
58. If saving exceeds investment, the national plemented various far-reaching reforms in
income will : the area of taxation. This was based on
the recommendations of the: [CDS 1999]
A. fall
A. Wanchoo Committee
B. rise
B. Rajah Chelliah Committee
C. fluctuate
C. Raj Committee
D. remain constant
D. Narsimhan Committee
59. Which of the following is not a direct tax?
64. The prime pirpose of moentary policy is to
A. Estate tax maintain
B. Sales tax A. Wealth
C. Corporation tax B. Exchange rate
D. Wealth tax C. Growth
60. One of the major objectives of Fiscal Pol- D. Price stability

icy in India has been to attain a match be- 65. The recommendations of the Finance Com-
tween the revenue receipts and revenue mission are:
expenditures. Which among the following
is NOT a measure towards achieving this A. binding on the government
objective? B. not binding on the government

C. generally accepted as a matter of con- C. same as the overall rate of growth of

vention the net domestic product

D. accepted or rejected by the govern- D. fluctuating when compared to growth
ment according to its convenience of net domestic product
66. Dear Money Policy implies:
71. Which among the following formulates fis-
A. high price level cal policy?
B. large money supply A. RBI
C. high production
B. Finance Ministry
D. high interest rates
C. SEBI
67. Equality in a country can be best brought
D. Planning Commission
through
A. Progressive expenditure 72. In recent years the capital outlays for the
B. Regressive taxation defence service have been:
C. Regressive expenditure A. increasing steadily
D. None of the abov B. more or less constant
68. Which of the following scenarios would C. going down steeply
cause the nation’s money supply to in-
D. fluctuating frequently
crease?
A. Decreasing government spending 73. Under VAT, how many slabs are there?
B. Lowering interest rates A. 3
C. Raising interest rates
B. 4
D. Selling bonds to investors
C. 2
69. Which among the following sectors re-
D. 5
ceived the largest Central plan outlay in
the last few Central Government annual
budgets? [CDS 2002] 74. A tax Which is paid by the person on whom
the tax is incident is called a :
A. Energy
A. local tax
B. Agriculture and allied activities
C. Social Services B. indirect tax
D. Communication C. direct tax

D. rate
70. The rate of growth of the tertiary sector
has been:
75. Which policy would help fight unemploy-
A. higher than the overall rate of growth ment?
of the net domestic product
A. Expansionary
B. lower than the overall rate of growth
of the net domestic product B. Contractionary

76. The existence of a Parallel Economy or B. Procurement Prices

Black Money: [CPO SI 2003]
C. Issue Prices
A. makes the economy more competitive
D. Ceiling Prices
B. makes the monetary policies less ef- 81. Consider the following statements:
fective
1. In India since independence the
C. ensures a better distribution of income share of the primary sector has been
NARAYAN CHANGDER
and wealth declining while the shares. of the
D. ensures increasing productive invest- secondary and tertiary sectors have
ment been increasing
2. This trend shows that Indian econ-
77. How does the consumer benefit with VAT? omy is passing through the transi-
[CPO SI 2003] tion from an agricultural to an indus-
A. It removes tax on tax and thus reduces trial economy.
price-rise While one of the following is correct?
B. It reduces the cost of production
A. both 1 and 2 are correct
C. With the abolition of the sales tax
B. both 1 and 2 are wrong
D. Due to the exemption of small Busi-
nesses from the tax within certain limits C. 1 is correct, 2 is wrong
prescribed by the State D. 1 is wrong, 2 is correct
78. National income is the same as: 82. Fiscal Policy is controlled by
A. Net Domestic Product at market price
A. The Government
B. Net Domestic Product at cost factor
B. The Federal Reserve System
C. Net National Product at market price
C. The states
D. Net National Product at factor cost
D. The Department of Commerce
79. A budgetary deficit means:
A. total expenditure is more than total 83. Since independence, both development and
revenue non-development expenditures have In-
creased, the increase in the former being
B. current expenditure is more than cur- a little more than in the other. Non devel-
rent revenue opment expenditure involves:
C. capital expenditure is more than capi-
1. interest payment
tal revenue
2. subsidies
D. total expenditure is more than current 3. defence
revenue 4. irrigation
80. The prices at which the government pur- A. 1 and 2
chases food grains for maintaining the pub-
B. 1 only
lic distribution system and for building up
buffer stocks are known as : C. 1, 2 and 3
A. Minimum Support Prices D. 2, 3 and 4

84. A Multinational is: [CDS 1991] A. contribute to economic growth and sta-
A. a company operating in several coun- bility

tries B. keep rich people from getting too rich
B. a company having shareholders from C. Functions like Fiscal Policy
more than one country
D. give Congress and the political parties
C. a company which does charitable work more control of the economy
in poor countries
D. a company that operates only in those 89. Under increasing returns the supply curve
countries that do not have import restric- is [SSC (10+2) 2010]
tions A. positively sloped from left to right
85. Which of the following taxes is not levied B. negatively sloped from left to right
by the Union Government?
C. parallel to the quantity-axis
A. Wealth Tax
D. parallel to the price-axis
B. Excise Duty
C. Profession Tax 90. Which of the following is an indirect tax?
D. Income Tax A. Corporation Tax

B. Excise Duty
86. An example of a contractionary fiscal pol-
icy would be if: C. Wealth Tax
A. taxes were cut D. Capital Gains Tax
B. the government bailed out GM
91. Rate of growth of an economy is measured
C. the Fed decrease the fed funds rate in terms of:
D. taxes were increased A. per capita income
87. Which of the following is not a limitation B. industrial development
of Fiscal policy?
C. number of people who have been lifted
A. Inflation above the poverty line
B. Defective tax system D. national income
C. Instability
92. The National Income is more at current
D. proper income distribution prices than at constant prices because:
[CDS 1992]
88. what is the purpose of Monetary Policy?
A. increase in price is equal to increase
in production
B. increase in price is more than produc-
tion
C. increase in production is more than in-
crease in price
D. of decrease in production only

93. Taxation and the government’s expendi- 98. The budget broadly comprises: (i) revenue
ture policy are dealt under the : budget, and (li) capital budget. Which of
the following item or items is/are not cov-
A. trade policy
ered under the revenue budget? I. Dif-
B. budget ferent proceeds of taxes and other duties
C. fiscal policy levied by the government II. Interest and
dividend on investments made by the gov-
D. monetary policy ernment III. Expenditure on running gov-
ernment and various services IV. Market
NARAYAN CHANGDER
94. Temporary tax levied to obtain additional loans raised by the government
revenue is called:
A. III and IV
A. cess
B. II and III
B. rate
C. only II
C. fee
D. only IV
D. surcharge
99. Which of the following is not an indirect
95. An example of expansionary fiscal policy tax?
would be
A. Land revenue
A. cutting taxes.
B. Customs duties
B. cutting government spending.
C. Entertainment tax
C. cutting production of consumer goods.
D. Sales tax
D. cutting prices of consumer goods.
100. The highest weight in the revised
96. Grants or advances made by the House to Whole Sale Price Index, implemented from
enable the government to carry on until September 2010 is given to which of the
the voting of the demands for grants and following item? [Corporation Bank PO
passing of the General Appropriation Bill 2011]
is called: A. Fuel
A. vote on account B. Food items
B. complementary budget C. Manufactured items
C. supplementary budget D. Primary Articles
D. contingency budget E. All of these
97. What is the impact on the “Social over- 101. Invisible trade is a trade: [IAS 1992]
head capital requirements” of an economy,
A. of government with public institutions
if the population increases?
B. of the services like the bank, marine
A. FALL
companies and shipping companies
B. UNCHANGED
C. of corporate and financial institutions
C. INCREASE with government
D. FALL DRASTICALLY D. of government with other countries

102. Once the demands for grants and expen- C. local bodies
diture of different departments are passed D. all the above
by the Parliament, a bill to draw money

from Consolidated Fund India for these pur- 107. During a economic expansion, the Federal
poses is introduced. This bill is called: Government should use
A. finance bill A. an expansionary fiscal policy
B. money bill B. a contractionary fiscal policy
C. appropriation bill
108. Fiscal deficit in the budget means: [CDS
D. credit budget bill 1999]
103. The principal source of revenue to the A. Revenue deficit plus the net borrow-
State Government in India is : ings of the government
A. Income Tax B. Budgetary deficit plus the net borrow-
B. Sales Tax ings of the government
C. State Excise Duties C. Capital deficit plus revenue deficit
D. Land Revenue D. Primary deficit minus capital deficit
104. One of the following leads to underesti- 109. The Fiscal Responsibility and Budget
mation of national income in India: Management (FRBM) Act aimed fora. elim-
inating both revenue deficit and fiscal
1. Inflation
deficitb. giving flexibility to RBI for infla-
2. Devaluation
tion management
3. Non-Monetary consumption
4. Large unorganized sector Choose A. 1 only
correct answer from: B. 2 only
A. 1, 2, 3 and 4
C. Both 1 and 2
B. 1, 3 and 4
D. Neither 1 nor 2
C. 3 and 4
110. The most appropriate measure of a coun-
D. 2, 3 and 4
try’s economic growth is the:
105. Estimation of national income in India is A. gross domestic product
difficult due to : I. illiteracy of people II.
non-monetised consumption III. inflation B. net domestic product
IV. people holding multiple jobs C. net national product
A. I, II, III and IV D. per capita real income
B. II and III
111. In India, the service tax was first intro-
C. I and IV duced in the year: [CDS 2001]
D. I, II and IV A. 1998
106. Octroi is levied and collected by: B. 1996
A. Centre C. 1994
B. State Government D. 1992

112. Which one of the following is the cor- C. non-monetised consumption

rect statements? Service tax is a/an [IAS D. low savings
2006]
116. In a country like India, why should an in-
A. direct tax levied by the Central Govern-
crease of direct taxes be preferred to an
ment
increase in indirect taxes?
B. indirect tax levied by the Central Gov-
A. Direct taxes serve the end of Socialism
ernment
by taking away the excessive wealth from
NARAYAN CHANGDER
C. direct tax levied by the State Govern- the rich
ment B. Direct taxes involve the well-off sec-
D. indirect tax levied by the State Govern- tions of the society while indirect taxes af-
ment fect the masses
C. It is easy to realise direct taxes and
113. Match List I with List II and select the
is thus useful in a country troubled by tax
correct answer using the codes given be-
evasion
low the Lists1. Fiscal deficit-(A) Excess
of total expenditure over total receipts2. D. All of the above
Budget deficit-(B) Excess of revenue ex-
117. Which one of the following is not a fea-
penditure over revenue receipts3. Rev-
ture of “Value Added Tax”? [CSAT 2011]
enue deficit-(C) Excess of total expendi-
ture over total receipts less borrowings4. A. It is a multi-point destination-based
Primary deficit (D) Excess of total ex- system of taxation
penditure over total receipts less borrow- B. It is a tax levied on value addi-
ings and interest payments tion at each stage of transaction in the
A. 1-C, 2-A, 3-B, 4-D production- distribution chain
C. It is a tax on the final consumption of
B. 1-D, 2-C, 3-B, 4-A
goods or services and must ultimately be
C. 1-A, 2-C, 3-B, 4-D borne by the consumer
D. 1-C, 2-A, 3-D, 4-B D. It is basically a subject of the Central
Government and the State Governments
114. In terms of economy, the visit by for- are only a facilitator for its Successful im-
eign nationals to witness the XIX Common plementation
Wealth Games in India amounted to [CSAT
2011] 118. Which of the following is not a tool of
fiscal policy?
A. Export
A. Taxing
B. Import
B. Spending
C. Production
C. Interest Rates
D. Consumption
D. All of these options are tools of fiscal
115. One of the problems in calculating the na- policy.
tional income in India correctly is : [Rail-
119. National income refers to: [CPO SI
ways 1994]
2002]
A. under-er-employment A. money value of goods ’and services
B. inflation produced in a country during a year.

B. money value of stocks and shares of a 123. The minimum effect of Direct Taxes is on
country during a year. :

C. money value of capital goods produced A. food price
by a country during a year. B. consumer goods
D. money value of consumer goods pro-
C. capital goods
duced by a country during a year.
D. income
120. Who was the chairman of National In-
come Committee? 124. The annual financial statement shows the
A. P. C. Mahalanobis receipts and payments of the government
under the 3 parts in which government ac-
B. V.K.R.V. Rao counts are kept in :
C. D.R. Gadgil 1. Consolidated Fund
D. A.M. Khusro 2. Contingency Fund
3. Public Account Which of the follow-
121. MODVAT is different from VAT in the ing items are covered under the Pub-
sense that: lic Account?
1. under MODVAT, tax is levied only
A. All revenue received by the govern-
on value addition while under VAT,
ment
excise is imposed on final value and
then rebate is given on inputs B. Loans raised by the government
2. MODVAT is only at the production C. Funds placed at the disposal of the
stage while VAT extends both to President
production and distribution stage
D. Transactions relating to provident
3. under MODVAT, excise is levied on
fund, small savings, etc.
final value and then rebate is given
on inputs while under VAT, tax is 125. Which one of the following statements re-
levied only on value addition garding the levying, collecting and distribu-
4. MODVAT implies rationalization of tion of Income Tax is correct? [IAS 1999]
excise duty only while VAT implies
rationalization of excise, sales and A. The Union levies, collects and dis-
turnover taxes etc. also Choose cor- tributes the proceeds of income tax be-
rect answer from: tween itself and the states
A. 1, 2 and 4 B. The Union levies, collects and keeps all

the proceeds of income tax to itself
B. 1, 3 and 4
C. The Union levies and collects the
C. 2, 3 and 4 tax but all the proceeds are distributed
D. 1, 2, 3 and 4 among the states
122. Which one of the following situations D. Only the surcharge levied on income
makes a firm most efficient? [CDS 2002] tax is shared between the Union and the
States
A. Falling average costs
B. Rising average costs 126. National income ignores [CDS 2012]
C. Constant average costs A. sales of firm
D. Lowest average costs B. salary of employees

C. exports of the IT sector B. 1 and 3

D. sale of land C. 2 and 3
127. The South Asian Free Trade Agreement D. 2 only
(SAFTA) was introduced with a view of
levying how much customs duty for trad- 131. Consider the following statements: In
ing any product within the SAARC zone? India, taxes on transactions in Stock Ex-
[RBI Grade B Officer 2011] changes and Futures Markets are
NARAYAN CHANGDER
A. 5% 1. levied by the Union
2. collected by the States Which of the
B. 4%
statements given above is/are cor-
C. 2% rect? [IAS 2010]
D. 1% A. 1 only
E. No customs duty B. 2 only
128. The goals of monetary policy include C. Both 1 and 2
(more than one answer-pick all correct an-
D. Neither 1 nor 2
swers for credit):
A. regulating the amount of money circu- 132. Tax collection of Central govt. was low-
lating in the economy est as compare to G.D.P., in which of the
B. Keep inflation high following year?
C. Keep inflation low A. 1999-2000
D. Keep unemployment low B. 2000-2001
E. Raise the unemployment levels C. 2001-2002
129. The two “tools” of Fiscal Policy are: D. 2002-2003
A. the power to tax 133. Which of the following is not a method
B. the power to spend of estimating national income? [I. Tax &
C. the power to borrow money Central Excise 1991]
D. the power to print money A. Income method
B. Value-added method
130. Consider the following statements with
regard to Statutory liquidity Ratio (SLR) : C. Expenditure method
1. To meet SLR, commercial banks can D. Export-import method
use cash only.
2. SLR is maintained by the banks with 134. Fresh evalution of every item of expen-
themselves. diture from the very beginning of each fi-
3. SLR restricts the banks’ leverage in nancial year is called: [SBI PO 1991]
pumping more money into the econ- A. fresh Budgeting
omy.
B. deficit Budgeting
is/are correct? [CDS 2010] C. performance Budgeting
A. 1, 2 and 3 D. zero-based Budgeting

135. Consider the following statements re- B. currency

garding Fisal Policy:a. It helps to maintain C. coins
the economy’s growth rate so that certain

D. debit cards
economic goals can be achieved.b. It aims
to achieve full employment, or near full 140. According to the law of demand, when:
employment, as a tool to recover from low
A. price increases demand decreases
economic activity.Which of the statements
given above is/are correct? B. price decreases demand decreases
A. 1 only C. price increases demand increases
B. ) 2 only D. price decreases demand does not
change
C. Both 1 and 2
141. To know whether the rich are getting
D. Neither 1 nor 2
richer and the poor getting poorer, it is nec-
136. Consider the following: essary to compare; [IAS 1994]
1. Market Borrowing A. the availability of foodgrains among
2. Treasury Bills two sets of people, one rich and the other
3. Special Securities to the RBI Which poor, over different periods of time
of these is/are components of inter- B. the distribution of income of an iden-
nal debt of the government? tical set of income recipients in different
A. 1 only periods of time
B. 1 and 2 C. the wholesale price index over differ-
ent periods of time for different regions
C. 1 and 3
D. 1, 2 and 3 D. the distribution of income of different
137. Which one of the following forms the sets of income recipients at a point of time
largest share of deficit in Govt. of India 142. Which of the following is wrongly
budget? [UP PCS 2002] matched?
A. Primary deficit A. Cess-a compulsory levy collected by
B. Fiscal deficit the government for a particular purpose
C. Revenue deficit from all persons
B. Rate-a compulsory levy collected by
D. Budgetary deficit
the government from the beneficiaries of
138. Economic growth is usually coupled with particular schemes
[CSAT 2011] C. Corporation tax-levied by corporations
A. deflation for civic amenities
B. inflation D. Proportional tax-a tax levied at the
same time at all levels of the base
C. stagflation
D. hyperinflation 143. Which among the following is true?
1. Decrease in cash reserve ratio in-
139. Metallic forms of money such as pennies, jects higher liquidity in the system
nickles, dimes, and quarters. 2. Higher liquidity in the system may
A. coins and currency soften interest rates

3. Higher market borrowing by the B. 1 and 2 only

government leads to rise in interest C. 2 and 3 only
rates.
D. 1, 2, and 3
A. 1 and 2
148. Deficit financing leads to inflation in gen-
B. 1 and 3
eral, but it can be checked if:
C. 2 and 3
A. government expenditure leads to in-
D. 1, 2 and 3 crease in aggregate supply in ratio of ag-
NARAYAN CHANGDER
gregate demand
144. Investment in public works is known as
: B. aggregate demand is increased only
A. revenue expenditure C. all the expenditure is denoted national

debt payment only
B. capital expenditure
D. all the above
C. current expenditure
149. Which of the following is not shared by
D. either (a) or
the Centre and the States?
E.
A. Sales Tax
145. In India, deficit financing is used for rais- B. Corporation Tax
ing resources for C. Income Tax
A. economic development D. Union Excise Duties
B. redemption of public debt
150. When the Reserve Bank of India an-
C. adjusting the balance of payments nounces an increase of the Cash Reserve
D. reducing the foreign debt ’Ratio, what does it mean? [IAS 2010]
A. The commercial banks will have less
146. All taxes come under: money to lend
A. revenue receipts B. The Reserve Bank of India will have
B. capital receipts less money to lend
C. public debt C. The Union Government will have less
D. both money to lend
D. The commercial banks will have more
E. and (b)
money to lend
147. With reference to revenue deficit, con-
151. Fiscal deficit in the Union Budget means:
sider the following statements:1. It in-
[IAS 1994]
cludes only those transactions that affect
current income and expenditure of govern- A. the difference between current expen-
ment.2. It considers the current borrowing diture and current revenue
by the government.As per the FRBM Act, B. net increase in Union Government’s
the government is required to reduce the borrowings from the Reserve Bank of In-
revenue deficit to 3% of the GDPWhich dia
of the statements given above is/are cor- C. the sum of budgetary deficit and net
rect? increase in internal and external borrow-
A. 1 only ings

D. the sum of monetised deficit and bud- 157. Many times we see in financial jour-
getary deficit nals/bulletins a term M3. What is M3?
[RBI Grade B Officer 2011]

152. By which bill does the government make
arrangement for the collection of revenues A. Currency in circulation on a particular
for a year? day
A. Supplementary Budget B. Total value of foreign exchange on a
particular day
B. Finance Bill
C. Total value of export credit on a given
C. Fiscal Budget
date
D. Economic Bill
D. Total value of the tax collected in a year
153. Consider the following statements:
1. The repo rate is the rate at which E. None of these
other banks borrow from the Re-
158. A rapid increase in the rate of inflation is
serve Bank of India.
sometimes attributed to the “base effect”.
2. A value of 1 for Gini Coefficient in
What is “base effect”? [CSAT 2011]
a country implies that there is per-
fectly equal income for everyone in A. It is the impact of drastic deficiency in
its population. supply due to failure of crops
Which of the statements giver, above B. It is the impact of the surge in demand
is/are correct? [IAS 2007] due to rapid economic growth
A. 1 only C. It is the impact of the price levels of
B. 2 only previous year on the calculation of infla-
tion rate
C. Both 1 and 2
D. None of the statements (a), (b) and
D. Neither 1 nor 2
E. given above is correct in this context
154. A contractionary policy means that the
Fed is attempting to 159. Which one of the following is the largest
item of expenditure of the Government
A. increase the size of the nation’s money of India on revenue account?a) Defenceb)
supply Subsidiesc) Pensionsd) Interest payment
B. decrease the size of the nation’s
A. ONLY A
money supply
B. A, B, AND C
155. Railway Budget in India was separated
C. ONLY D
from general budget in :
D. C, D, AND A
A. 1924-25
B. 1941-42 160. With respect to the government expen-
diture in India, which of the following
C. 1947-48
is / are Transfer Payments?1.The pay-
D. 1950-51 ments which are made by the government
156. Which policy would help fight inflation? to its employees2.The payments which
are made as financial aid in a social wel-
A. Expansionary fare programme3.The payments which are
B. Contractionary made to foreign countries and institutions

as interests on loans taken in past4.The A. 1 only

payments which are made to oil companies B. 2 only
in lieu of the subsidiesSelect the correct op-
tion from the codes given below: C. Both 1 and 2
A. ONLY 1 AND 3 D. Neither 1 nor 2
B. 1, 2, 3, 4 165. Consider the following statements re-
C. ONLY 2 AND 4 garding plan and non-plan expendi-
ture1.Plan expenditure is believed to
NARAYAN CHANGDER
D. ONLY 1, 2 AND 3 be under the discretion of the central
161. If the price of an inferior good falls, its government, whereas non-plan expen-
demand: [CPO SI 2003] diture is not part of discretion of the
central government2.The distinction be-
A. rises tween plan and non-plan expenditures has
B. falls been eliminated from Budget 2017-18
onwards.Which of the statements given
C. remains constant
above is/are correct?
D. can be any of the above
A. 1 only
162. Which one of the following is the updated B. 2 only
base for Wholesale Price Index (WPI) ?
C. Both 1 and 2
[Corporation Bank PO 2011]
D. ) Neither 1 nor 2
A. 2002-2003
B. 2003-2004 166. Gross National Product is less than
Gross Domestic Product depending upon
C. 2004-2005
whether:
D. 2005-2006
A. indirect taxes are more than subsidies
E. 2006-2007
163. Which of the following is fiscal Measure B. depreciation is included or not

to controll inflation in India? C. net factor income from abroad is posi-
A. Cash Reserve Ratio tive or negative
B. Statutory Liquidity Ratio D. indirect taxes are less than subsides
C. Public Expenditure 167. Which among the following is the regula-
D. Repo Rate tory authority for giving clearance for Ex-
ternal Commercial borrowing?
164. Consider the following statements about
A. Foreign Investment Promotion Board
Sinking Fund:
B. RBI
1. It is a method of repayment of public
debt. C. SEBI
2. It is created by the government D. Foreign Investment Promotion Council
out of budgetary revenues every
year. Which of the statements 168. If and economy experiences a dramatic
given above is/are correct? [CDS rise in prices, which fiscal policy action
2011] could be taken?

A. Selling securities on the open market 173. Gross National Product at market prices
B. Raising interest rates is defined as : [CPO AC 2003]
A. the market value of all final goods

C. Reducing government spending
and services produced in an economy tak-
D. Raising reserve requirements ing into account net factor income from
abroad
169. Which of the following is poorest state in
India? B. the market value of all final goods and
services produced in an economy
A. Odisha
C. the market value of all final goods and
B. Bihar services produced in an economy plus in-
C. U.P. direct taxes
D. M.P. D. the market value of all final goods and
services produced in an economy plus in-
170. Sales tax is a tax direct taxes minus subsidies
A. regressive
174. VAT is alternate of:
B. progressive
A. state tax
171. Who is the chairman of 13th Finance Com- B. central tax
mission? C. both (a) and
A. C. Rangarajan D.
B. M.N. Vohra E. neither (a) nor
C. Bimal Jalan F.
D. Vijay Kelkar 175. What do we call the rate at which the
172. Which one of the following statements Reserve Bank of India lends money to com-
appropriately describes the “fiscal stimu- mercial banks?
lus”? A. Repo-rate
A. (a.) It is a massive investment by the B. Reserve-repo rate
Government in manufacturing sector to C. CRR
ensure the supply of goods to meet the D. SLR
demand surge caused by rapid economic
growth 176. After the initiation of economic reforms
in 1991-92 the percentage share of: [CDS
B. (b.) It is an intense affirmative action
1999]
of the Government to boost economic ac-
tivity in the country A. direct taxes increased and that of indi-
rect taxes decreased in gross tax revenue
C. (c.) It is Government’s intensive ac-
tion on financial institutions to ensure dis-
bursement of loans to agriculture and al- B. Both direct and indirect taxes in-
lied sectors to promote greater food pro- creased in gross tax revenue
duction and contain food inflation C. both direct and indirect taxes de-
D. (d.) It is an extreme affirmative action creased in gross tax revenue
by the Government to pursue its policy of D. direct taxes decreased and that of indi-
financial inclusion rect taxes increased in gross tax revenue

177. Which of the following is not part of state 181. An appropriate fiscal policy to combat a
tax? recession would be to increase which of
the following?
A. Land revenue
A. Interest rates
B. Entertainment tax
B. The money supply
C. Sales and purchase of newspapers
C. Taxes
D. Stamp duty other than financial docu-
D. Government spending
ments
NARAYAN CHANGDER
182. National income of India is compiled by:
178. The rate of growth of per capita income
is equal to: A. Finance Commission
B. Indian Statistical Institute
A. Rate of growth of national income di-
vided by the rate of growth of population C. National Development Council
D. Central Statistical Organisation
B. Growth in national income divided by
183. Fiscal deficit in the union budget is equal
the increase in population
to
C. Rate of growth of national income mi- A. Net increase in internal and external
nus the rate of growth of population borrowings
D. Rate of growth of national income B. The difference between current expen-
diture and current revenue
179. Which one among the following is not a
component of fiscal policy? [Asstt Com- C. The sum of monetized deficit and bud-
mdt 2011] getary deficit
D. Net increase in the union govern-
A. Taxation policy
ment’s borrowing from the Reserve Bank
B. Public debt policy of India
C. Trade policy 184. Which one of the following statements
D. Public expenditure policy appropriately describes the “fiscal stimu-
lus”? [CSAT 2011]
180. ’Balanced Growth’ means: A. It is a massive investment by the Gov-
A. growth which brings about a balance ernment in manufacturing sector to en-
between the rich and the poor sure the supply of goods to meet the de-
mand surge caused by rapid economic
B. growth which brings about a balance growth
between the public and private sectors
B. It is an intense affirmative action of
C. growth which brings about a balance the Government to boost economic activ-
between the traditional and modern sec- ity in the country
tor
C. It is Government’s intensive action on
D. growth pattern on which simultaneous financial institutions to ensure disburse-
investments are made in all the sectors ment of loans to agriculture and allied sec-
of the economy, viz., Agriculture, Industry, tors to promote greater food production
Transport, Communication, etc. and contain food inflation

D. It is an extreme affirmative action by B. The Act of taking on a risk for a fee.

the Government to pursue- its policy of fi- C. Giving a Guarantee that a loan will not
nancial inclusion

become a bad loan.
185. Among the structural changes which of D. The act of permission to float an IPO.
the following is not wholly welcome?
E. None of the above
A. Increase in the share of construction
in the GNP 189. What is ’Recession’?
B. Relative contribution of agriculture to A. Rise in the cost of production, espe-
our GNP is declining cially because of wage increase
C. Marked improvement in the contribu- B. Increase in money supply without a
tion of manufacturing to the GNP matching increase in production
D. Substantial increase in the percentage C. Reduction in production and employ-
contribution of public administration and ment for want of sufficient demand for
defence to GDP goods
186. The per capita income is obtained by: D. None of these
A. summing up the income of all the citi- 190. Companies pay Corporation Tax on their:
zens of the country [UDC 1993]
B. dividing national income by the popula- A. investment
tion
B. production
C. estimating the minimum income of in-
dividual citizens C. sales proceeds
D. dividing the total national capital with D. incomes
the profit earned
191. Which of the following is an objective of
187. Which of the following expenses do not fiscal policy
require the sanction of Parliament? A. price stability
I. Salary and allowances of the Presi- B. Balance of Payment
dent and CAG
II. Debt charges of the Government C. foreign exchange market
III. Defence expenditure D. manage rate of interest
IV. Maintenance expenditure of em-
bassies 192. Fiscal consolidation is one of the objec-
tives of India’s economic policy. Which of
A. I, II, III, IV
the following would help in fiscal consoli-
B. I, II, III dation?1. increasing taxes2.getting more
C. I, II loans3.reducing subsidiesSelect the correct
answer using the codes given below.
D. II, IV
A. 1 and 2 only
188. What is meant by ’Underwriting’, the
B. 1 and 3 only
term frequently used in financial sector?
[Punjab & Sindh Bank 2011] C. ) 2 and 3 only
A. Under valuation of the assets. D. 1, 2 and 3

193. is the price paid for the use of money. D. None of these
A. Gold
198. The measure of a worker’s real wage is :
B. Monetary policy [CPO SI 2002]
C. Fiscal policy A. the change in his productivity over a
D. The interest rate given time
194. An advalorem duty is a tax on the basis B. his earning after deduction at source
of: [IAS 1988] C. his daily earnings
NARAYAN CHANGDER
A. the price of a commodity D. the purchasing power of his earnings
B. the value added
199. The primary role of the Federal Reserve
C. the advertisement expenditure Bank is to steer the economy by
D. the unit of the commodity A. controlling the budget
195. National income calculated at current B. setting spending levels.
prices in India has shown a tendency to
C. controlling the money supply.
rise at a faster rate than national income
at constant prices. This is because: D. loaning out money.
A. India’s population has been rising fast 200. Buyer’s market denotes the place
where:
B. General price level in the economy has A. the supply exceeds the demand
been rising rapidly
B. the demand exceeds the supply
C. Statistically manipulations are em-
ployed by the Planning C. the demand and supply are well bal-
anced
D. Base year chosen is an abnormal year
D. commodities are available at competi-
196. Which of the following is the basis for de- tive rates
termining the national income?
A. Total revenue of the State 201. When the government spends more
money than they take in each year is called
B. Net profit earned and expenditure in- a ?
curred by the State
A. Debt
C. Production of goods and services
B. Deficit
D. All of the above
C. Surplus
197. Which of the following is correct regard-
ing the Gross Domestic Saving In India? D. Expansionary
[Asstt Grade 1992] 202. An individual’s actual standard of living
A. Contribution of Household sector is the can be assessed by [SSC Grad 2011]
largest
A. Gross National Income
B. Contribution of Government sector is
B. Net National Income
the largest
C. Contribution of Corporate sector is the C. Per Capita Income
largest D. Disposable Personal Income

203. Which of the following is not required 208. Which of the following is wrongly
while computing Gross National Product matched:
(GNP)? [Asstt Grade 1992]

A. share market-stock exchange
A. Net foreign investment
B. Private investment B. interest rate-fiscal policy
C. Per capita income of citizens C. export subsidy-fiscal policy
D. Purchase of goods by government D. general price index-inflation
204. An expansionary policy means that the
Fed is attempting to 209. An amount given by a government
A. increase the size of the nation’s money agency or even private body to encourage
supply a particular economic activity is a :
B. decrease the size of the nation’s A. grant
money supply
B. loan
205. Fiscal policy in India is formulated by
C. subsidy
A. Reserve Bank of India
B. Planning Commission D. mutual fund
C. Finance Ministry
210. What is the main source of revenue to
D. Securities and Exchange Board of In-
meet different expenditures?
dia
A. Excise duties
206. The Zero Base Budgeting in India was
first experimented from: B. Customs duties
A. April, 1987
C. Internal borrowings
B. April, 2000
D. Income tax
C. April, 1991
D. None of these
211. Which of the following statements is/are
207. Which of the following is not true about correct?
’vote-on-account’? [Bank PO 1991]
1. If a country is experiencing increase
A. It is a budget presented in the Parlia- in its per capita GDP, its GDP must
ment to cover the deficit left by the last necessarily be growing.
budget 2. If a country is experiencing negative
B. It does not allow the Government to inflation, its GDP must be decreas-
set for the economic policies of the new ing. Select the correct answer using
plan which starts from April 1 the code given below: [CDS 2012]
C. It prevents the Government from im- A. 1 only
posing fresh taxes or withdrawing old one
B. 2 only
D. This allows the Government to with- C. Both 1 and 2
draw an amount for a period with the con-
sent of Parliament D. Neither 1 nor 2

212. Value-added tax is : 217. In India, the tax proceeds of which one
A. an ad valorem tax on domestic final of the following as a percentage of gross
consumption collected at all stages be- tax revenue has significantly declined in
tween production and the point of final the last five years? [IAS 2010]
sale A. Service tax
B. an ad valorem tax on final consumption B. Personal income tax
collected at the manufacturing level
C. Excise duty
NARAYAN CHANGDER
C. tax on final consumption collected at
D. Corporation tax
the consumption stage
D. a special tax levised by states on prod- 218. Math the following: [CDS 1999] List I
ucts from other states List II A. Income Tax 1. Levied and col-
lected by the Central Government B. Cor-
213. A tax that takes away a higher propor- poration 2. Levied and collected Tax by
tion of one’s income as the income rises is the Central Government and shared with
termed as [I. Tax & Central Excise 1990] the State Governments C. Professional 3.
A. indirect tax Levied by the Central Tax Government but
collected and appropriated by the State
B. progressive tax Governments D. Stamp Duties 4. Levied
C. regressive tax and collected by the State Governments 5.
Levied and collected by the local bodies A
D. proportional tax BCD
214. Gross National Income is always more A. 1 2 3 4
than Net National Income because it in- B. 1 2 3 5
cludes:
C. 2 1 4 3
A. foreign income
D. 2 1 5 3
B. capital consumption allowance
C. indirect taxes 219. What is a fiscal deficit? [Punjab & Sindh
Bank 2011]
D. direct taxes
A. It is a gap between the values of the
215. In India GDP is higher than GNP because exports and imports
country’s: B. It is a gap between exports and im-
A. import > export ports minus external borrowings
B. capital inflow > capital outflow C. It is a gap between total expenditure
and total receipts of the Govt.
C. net factor income is negative
D. It is a gap between total receipts mi-
D. Govt. expenditure is more than it’s in-
nus External Borrowing
come
E. None of the above
216. During a contraction / recession, the Fed-
eral Government should use 220. Fiscal Policy is concerned with
A. an expansionary fiscal policy A. Government Spending and taxation
B. a contractionary fiscal policy B. Consumer spending and productivity

C. Government spending and the money 226. In economic terms, which of the follow-
supply ing factors determine the ’Individual’s de-
mand’ of a product/commodity? [RBI

D. Taxation and inflation
Grade B Officer 2011] A. Price of a com-
221. The sum total of incomes received for the modity B. Income of the individual C. Util-
services of labour, land or capital in a coun- ity and quality of a commodity
try is called: A. Only A
A. gross domestic product B. Only B
B. national income C. Only C
C. gross domestic income D. Only A & C
D. gross national income E. All A, B, & C
227. The rising prices in India can be checked

222. The ’gilt-edged’ market deals in : [UP
through:
PCS 2002]
1. Budgetary policy
A. worn and torn currency notes 2. Monetary policy
B. bullion 3. Increasing production
4. Increasing income levels Choose
C. Govt. securities
your answer from:
D. Corporate bonds
A. 1 and 2
223. The main reason for low growth rate in B. 1, 2 and 3
India, inspite of high rate of savings and C. 1, 2, 3 and 4
capital formation is: [IAS 1995]
D. 2 and 3
A. high birth rate
228. Consider the following statements relat-
B. low level of foreign aid
ing to estimation of National Income :
C. low capital/output ratio 1. Foreigners working in Indian Em-
D. high capital/output ratio bassies are normal residents of In-
dia.
224. CENVAT is associated with: 2. Foreigners working in the office of
WHO, World Bank. UNO etc. lo-
A. rate of indirect tax
cated in India are not normal resi-
B. rate of income tax dents of India.
C. rate of direct tax 3. Indians working in foreign em-
bassies in India are not normal res-
D. none of the above idents of India. Which of the state-
225. Deficit financing is spending: [CDS 2010]
A. by getting foreign aid A. 1 only
B. less than what is needed B. 1 and 2
C. in excess of revenue C. 3 only
D. by borrowing from abroad D. 1, 2 and 3

1.6 Industries, Infrastructure and Foreign Trade 134
229. What happens when CRR is increased? C. Gambling

A. It decreases money supply D. A loan shark
B. It increases demand of money
231. Among Indian Economists who had done
C. It decreases inflation
pioneering work on National Income ?
D. all of the above
A. P. N. Dhar
230. In institution that accepts deposits and
makes loans is defined as B. Jagdish Bhagwati
NARAYAN CHANGDER
A. A bank C. V. K. R.V. Rao
B. Insurance D. Prof. Shenoi
1.6 Industries, Infrastructure and Foreign Trade

1. Which of the following is not sponsor of D. Import of goods and services and cap-
newly established UTI-II? ital outflows.
A. Punjab National Bank
5. Which of the following states ranks first
B. General Insurance Corporation in terms of the maximum number of agro-
C. Life Insurance Corporation of India based industries? [Bank PO 1993]
D. State Bank of India A. Gujarat
B. Punjab
2. India signed the Dunker proposal in
A. 1984 C. West Bengal
B. 1976 D. Kerala
C. 1950 6. india’s share in world export is:

D. 1994 A. less than 1%
3. Pegging down of national currency is B. 1%
known as C. 1.7%
A. Over valuation D. greater than 2%
B. Under valuation
7. Which organisation promotes the foreign
C. Revaluation trade? [UP PCS 2011]
D. All of the above A. ECGC
4. The demand for domestic currency in the B. MMTC
foreign exchange market is indicated by
C. STC
the following transactions in balance of
payment D. All of these
A. Export of goods and services 8. Which of the following are not features of
B. Import of goods and services. India’s small-scale industries in general?
C. Export of goods and services and capi- 1. large employment potential
tal inflows. 2. great export potential

3. highly skilled labour 2. The British assisted in the building

4. efficient marketing system of the Bokaro Steel plant.

A. 1 and 3 A. 1 only
B. 2 and4 B. 2 only
C. 1 and 2 C. Both 1 and 2
D. 3 and 4 D. Neither 1 nor 2
9. suez canal was opened in the year 14. ’Dumping’ in the context of international
trade refers to : [CDS 2000]
A. 1859
A. exporting goods at prices below the ac-
B. 1869 tual cost of production
C. 1879 B. exporting goods without paying the ap-
D. 1868 propriate taxes in the receiving country
C. exporting goods of inferior quality
10. Which are the major trade center in ancient
indiia D. exporting goods only to re-import
them at cheaper rates
A. patliputra
B. mathura 15. How many countries where membership in
WTO at present?
C. surat
A. 159
D. all if the above
B. 164
11. Who first came to India for trading pur- C. 148
pose?
D. 128
A. Roman Empire
16. Which of the following instrument of trade
B. Portuguese
protection directly raises the price of the
C. Dutch commodity in the domestic economy?
D. Danish A. Import tariff
12. Colonial advent in India B. Export subsidy
A. Portuguese, Dutch, English, Danish, C. Import substitution

French D. Import liberalisation
B. Dutch, English, Danish, French 17. The performance of which of the follow-
C. Portuguese, Danish, Dutch, French, ing industries is considered performance of
English the core industry? [RBI Grade B Officer
2011]
D. Danish, Portuguese, French, English,
Dutch A. Garments
B. Leather
13. Which of the statements given above
is/are correct? [CDS 2008] C. IT
1. The USSR assisted in the building of D. Oil and Petroleum

the Bhilai Steel plant. E. Handicrafts

18. Indian government was introduced in 2. The. Ministry of External Affairs is

1991 in-charge of foreign exchange rate
A. Globalisation determination in India.
3. The Ministry of Commerce puts for-
B. World Trade Organisation ward the Export-Import Policy in In-
C. New Economic Policy dia.
4. The Planning Commission prepares
D. None
the Annual Budget of the Gov-
ernment Which of the statements
NARAYAN CHANGDER
19. More than half on India’s foreign trade
was restricted to: is/are correct ?
A. china A. 1, 2, and 3
B. korea B. 2 only
C. britain C. 3 only
D. sri lanka D. 2 and 4
20. Bokaro Steel Limited was established with
the assistance of: [Asstt Comm 2008] 24. A strategy to earn foreign exchange by
promoting domestic exports and making
A. Germany domestic industry competitive in the inter-
B. Soviet Union national market is called:
C. UK A. inward looking strategy
D. USA B. export promotion strategy
21. Which of the following industry will be C. outward looking strategy
classified under sunrise industry prior to
D. none of these
1991?
A. Food processing industry 25. export surplus was used:
B. Electronic industry A. to make payment for expenditure in-
C. Both (a) and (b) curred by a british office.
D. None of these B. to meet expenses on war
22. Liberalisation in India in the year C. to import invisible items
A. 1990 D. all of these
B. 1991
26. Hundi that is payable to a specific person,
C. 1992 someone ‘respectable’. Liability over who
D. 1993 received payment.
23. Consider the following statements: [CDS A. Sah-jog-Darshani

2002] B. Firman-jog-Darshani
1. The Ministry of External Affairs is
C. Dekhan-har-Darshani
in-charge of monetary policy in In-
dia. D. Firman-jog-Muddati

27. Identify the correct sequence of the estab- 31. When was “Make in India” launched by
lishment of steel plants in India from the the Government of India?
earliest to the latest: [NDA 2002]

A. 15 August 2014
A. Bokaro, Jamshedpur, Vishakhapat- B. 25 September 2015
nam, Bhilai
C. 25 September 2014
B. Jamshedpur, Bhilai, Bokaro, Vishakha-
patnam D. 15 August 2050
C. Bhilai, Jamshedpur, Vishakhapatnam, 32. Which of the following are the public sec-
Bokaro tor undertakings of the Government of In-
D. Jamshedpur, Vishakhapatnam dia?
1. Balmer Lawrie and Company Ltd.
28. India’s share in world import is: 2. Dredging Corporation of India
A. less than 1% 3. Educational Consultants of India Ltd.
B. 1% Select the correct answer using the
code given below [IAS 2008]
C. 1.5%
A. 1 and 2 only
D. greater than 2%
B. 2 and 3 only
29. As per the reports published in the news- C. 1 and 3 only
papers the banks, particularly public sec-
D. 1, 2 and 3
tor banks are tying up with various rat-
ing agencies for providing a qualitative as- 33. Which one of the following pairs is not cor-
sessment of the credit needs of the bor- rectly matched? [CDS 2008]
rowers. Which amongst the following
is/are such credit rating agencies in India? A. Hindalco Industries - Novelis
[Punjab & Sindh Bank 2011] B. Tata Steel - Corus Group
A. CARE C. Jet Airways - Air Sahara
B. CRISIL D. Kingfisher Airlines - MDLR Airlines
C. ULlP 34. Which institution provides long run finance
D. Only A to industries?
E. Only B A. UTI
F. A and B only B. LIC
G. Only C C. GIC
H. All A, B and C D. All of these
30. Which of the following sectors does not 35. The most important small-scale industry in
come under tertiary sector? India is that of:
A. Transport A. textiles
B. Trade B. jute
C. Business Services C. jewellery
D. Electricity D. handloom

36. Which of the following items was not ex- 40. Whenever newspapers talk about the per-
ported prior to independence? formance of core industries, which of the
A. Cotton textiles following is NOT considered among them?
[Bank of India PO 2010]
B. Tea
A. Petroleum
C. Jute
B. Automobile
D. Engineering goods
C. Mining
NARAYAN CHANGDER
37. Sickness of small units can be because of
D. Steel
the factors:
E. Cement
1. under-utilisation of capacity
2. non-payment by the large firms
41. The issue of the is controlled by RBI
3. dependence on borrowed funds
4. lack of management expertise A. Euro
A. 1, 2 and 3 B. USD
B. 2, 3 and 4 C. Rupee
C. 1, 2 and 4 D. Ringett
D. 3 and 4
42. Which minister plays a vital role in the
38. Why is the Government of India disinvest- molding foreign policy of our country?
ing its equity in the Central Public Sector A. Defence Minister
Enterprises (CPSEs)?
B. Prime Minister
1. The Government intends to use the
revenue earned from the disinvest- C. External Affairs Minister
ment mainly to pay back the exter- D. Home Minister
nal debt.
2. The Government no longer intends 43. The core sector includes: I. Coal II. Power
to retain the management control of III. Petroleum IV. Soaps and Detergent
the CPSEs. Which of the statements
given above is/are correct? [CSAT A. I and II
2011] B. I, II and III
A. 1 only C. I
B. 2 only D. II and III
C. Both 1 and 2
44. Which of the following was formed to sug-
D. Neither 1 nor 2
gest means for eradicating black money?
39. What was known as ‘Black Gold’? [I. Tax 1992]
A. jute A. Finance Commission

B. cinnamon B. Sarkaria Commission
C. Black Pepper C. Shah Commission
D. Saffron D. Chelliah Committee

45. More expansion of foreign direct invest- 50. GATT’s first round held in
ment can boost:
A. Tokyo

A. Unemployment
B. Uruguay
B. Supply
C. Torquay
C. Employment
D. Money circulation D. Geneva
46. What does the export surplus mean? 51. occurs when a firm invests resources
A. When export of current year of a coun- in business activities outside its homecoun-
try is more than previous year export try.
B. Total export of a country A. Diversification
C. When export of a country is more than B. FDI
import
C. Cross nationalcommerce
D. When import of a country is more than
export D. None of theabove
47. Identify the second most traded currency 52. After textiles, India’s second important in-
around the world. dustry is :
A. US Dollars A. Sugar
B. Indian Rupee
B. Jute
C. Euro
C. Cement
D. Yuan
D. Iron and steel
48. Which article of Indian constitution directs
to adopt foreign policy? 53. In which of the following industries is the
A. Article 50 maximum number of women employed in
B. Article 51 India? [CDS 1993]
C. Article 52 A. Textile
D. Article 53 B. Jute
49. A country is said to be in a debt trap if: C. Tea

[IAS 2002] D. Coal
A. it has to abide by the conditionalities
imposed by the International Monetary 54. One reason direct investment may be pref-
Fund ered to portfolio is
B. it has to borrow to make interest pay- A. it fills the savings investment gap.
ments on outstanding loans
B. it doesn’t pose a threat to national
C. it has been refused loans or aid by sovereignty
creditors abroad
C. it doesn’t create an outflow on primary
D. the World Bank charges a very high
income.
rate of interest on outstanding as well as
new loans D. it is more long term and stable.

55. Foreign Investment Policy announced in 3. Indian Oil Corporation operates all
A. June 1991 the oil refineries in India. 5. The In-
dian Ordnance Factory is the largest
B. July 1991 departmentally run industrial under-
C. July-August-1991 taking in the country. Which of
D. August 1991 these statements is/are correct?
A. 1 only
56. An action a government uses to control
trade between countries
NARAYAN CHANGDER
B. 2 and 3
A. Trade barrier C. 2, 3 and 4
B. Voluntary trade D. 1 and 4
C. Free trade
D. None of the above 61. When did Portuguese colonise India?
A. 1600 BC
57. India is facing continuous deficit in BOP. In
the foreign exchange market, rupee is ex- B. 1602 BC
pected to C. 1498 BC
A. Depreciate
D. 1616 BC
B. Appreciate
C. No specific tendency 62. Which were important trading community
from south in ancient india
D. All of the above
A. Bhats
58. Which trade centre in ancient India was the
major place for export of stones? B. chattiars
A. Broach C. ayangars
B. Indraprastha D. mahajans
C. Taxila
63. GATT
D. Peshawar
E. Patliputra A. 1986
B. 1947
59. India’s foreign exchange system is
C. Infosys
A. Free float
B. Fixed D. Minimise cost of production
C. Managed float 64. The institution of also played an impor-
D. None tant role during Mughal period and days of
east India company, as intermediaries.
60. Consider the following statements: [IAS
2002] A. Nagar Seths
1. NTPC is the largest power utility in B. Commercial and Industrial Banks
India.
C. Commission Agents
2. ONGC accounts for half of the LPG
production in India. D. Jagat Seths

65. Which of the following measures is not 70. Which part of separated UTI is under
likely to help in improving India’s balance SEBl’s regulation?
of payments position?

A. UTI-I
A. Devaluation of the rupee B. UTI-II
B. Encouragement of import substitution C. Both the above
C. Imposition of higher duty on imports D. None of the above
D. Imposition of higher duty on exports
71. The famous traveler “Megasthenes” be-
66. Arbitrage implies: longed to which of the following country?
A. practice of taking advantage of rice dif- A. GERMANY
ference in two markets B. GREECE
B. the practice of under invoicing exports C. ROME
D. FRANCE
C. the practice of dumping viz., selling
goods in a foreign market cheaper than 72. Types of goods and services we export and
the home market import is called:
D. the practice of over-invoicing imports A. composition of trade
67. Mashelkar Committee was constituted to B. balance of trade
report on : C. direction of trade
A. economic policy D. none of these
B. constitutional changes
73. Which city was famous for ‘Gold silk
C. black money cloth’?
D. auto fuel policy A. Varanasi
68. Import substitution implies [Asstt Commdt B. Mithila
2011] C. Tamralipti
A. importing new items in place of old D. Ujjain
items of import
74. The students of class XI were asked to de-
B. gradual reduction of imported goods
scribe the various types of intermediaries
to save foreign exchange
who played a prominent role in the pro-
C. increasing domestic supply of goods motion of trade. Arun, one of the stu-
by imposing import restrictions dent, spoke in particular, about the mem-
D. replacing import items by domestic bers of the wealthy business, banking and
production of such items money lender family institution that exer-
cised great influence during the Mughal pe-
69. drain of wealth means ? riod and the days of the East India Com-
A. inflow of domestic wealth to other pany. Identify the type of intermediaries
countries for their wealth. being highlighted by Arun.
B. outflow of domestic wealth to other A. Commission Agents

countries for their wealth. B. Brokers

C. Jagat Seths B. is recorded as a debit in the financial

D. Distributors account
C. increases foreign assets.
75. In India, maximum number of workers are
employed in : D. is recorded as a debit in primary in-
come
A. textile industry
B. iron and steel industry 80. How much of one country’s money is
worth compared to another country?
NARAYAN CHANGDER
C. petrochemical industry
A. Exchange rate
D. automobile industry
B. Exchange control
76. Consider the following statements: [IAS C. Currency
2004]
D. Foreign trade
1. National Thermal Power Corpora-
tion has diversitled into hydropower 81. Who played special role in banking and fi-
sector nancing in ancient time in india
2. Power Grid Corporation of India A. Bankers
has diversified into telecom sec-
tor Which of the statements given B. sahukar
above is/are correct? C. Seth/lending institution
A. 1 only D. above all
B. 2 only
82. Which of the following is the largest (in
C. both 1 and 2 terms of’ turnover) Public Sector organi-
D. neither 1 nor 2 sation in India?
A. Bharat Petroleum
77. One major government initiative to attract
foreign companies to invest in India is B. Steel Authority of India
A. to raise the standard of education C. Indian Oil Corporation
B. to build special economic zones D. Oil and Natural Gas Commission
C. to promote unemployment in the pub- 83. Our tradition and national ethos is to prac-
lic sector tice
D. None of the above A. Fighting
78. India earns maximum foreign exchange B. Nuclear weapons

from the export of: C. Disarmament
A. garments D. Armed forces
B. jute 84. Find the incorrect match
C. gems and jewellery A. Dhanijog-Darshani
D. cotton B. Sahjog-Muddati
79. Repayment of a foreign loan C. Firmanjog-Muddati
A. decreases foreign liabilities. D. Jokhmi-Muddati

85. Who is the head of the World Trade Organ- D. When a foreign individual invest in do-
isation mestic stock markets

A. Ministerial conference
90. Reduction of value of currency due to mar-
B. Director general ket forces
C. Deputy director general A. Revaluation
D. None of these
B. Devaluation
86. From part of India, Chatts were the C. Depreciation
important business traders.
D. Appreciation
A. North India
B. West India 91. Removing barriers or restrictions by the
government policy is called
C. East India
D. North East India A. Free trade
E. South India B. liberalisation

C. Favourable trade
87. Which of the following authority sanctions
foreign exchange for the import of goods? D. FDI
[UP PCS 2011]
92. Which of the following industries was
A. Any Nationalised Bank
started first in India?
B. Exchange Bank
A. Cotton
B. Paper
D. Ministry of Finance
C. Tea
88. “Sunrise Industries” are Industries:
D. Jute
A. which are well-developed and have
ample scope for further development 93. India got connected to adjoining foreign
B. which improve export performance of countries through the network of which
the country route
C. which are small-scale industries A. spice route
D. which have high growth potential and B. black route
meet further requirements of the econ-
C. Coal route
omy
D. none of above
89. What is Foreign direct investment?
A. This is when a country makes an in- 94. Which industry earns the second highest,
vestment into a company. net foreign exchange from the trade?
B. This is when a company makes an in- A. Gems and ornaments
vestment into a foreign country and has
B. Textile industry
the right to control.
C. Steel industry
C. When a domestic country invest into
its own companies. D. Engineering goods industry

95. Which is not included in major export from C. Singapore

India.
D. USA
A. furs
B. copper 101. Invisible Export means export [Corpora-
C. horse tion Bank PO 2011]
D. Silver A. Services
96. Which of the following committees was as- B. Prohibited goods
NARAYAN CHANGDER
signed to recommend reforms in the insur- C. Unrecorded goods
ance sector?
A. Rekhi Committee D. Goods through smuggling
B. Nadkarni Committee E. All the above

C. Malhotra Committee
102. When does the problem of unfavourable
D. Chelliah Committee balance of payment arise?
97. Among the following famous travelers, A. When exports decrease
who belonged to country “MOROCCO”?
B. When exports increase
A. Ibn Battuta
B. Frenchman Francois C. When imports increase
C. Al Beruni D. When imports are greater than ex-

ports
D. Faxian (Fa Hien)
98. Which industry in India was worst af- 103. is the instrument for implementing
fected because of the partition? [PCS foreign policy of a state.
1994]
A. Harmony
A. Paper and Iron
B. Diplomacy
B. Jute and Cotton
C. Cotton and Sugar C. Belief
D. Engineering and Cement D. Co operator
99. International trade free of government 104. Which of the following best defines a
control and trade barriers multinational corporation (MNC)?
A. Trade barrier
A. A company that exports to many coun-
B. Free trade tries.
C. Tariff
B. A large company that import from
D. Voluntary trade many countries.
100. The largest importer country of Indian C. A company that operates in more than
textile is : two different countries.
A. Italy D. A company that produces goods and
B. Germany services for a large market.

105. The difference between visible exports A. 1, 2 and 3

and visible imports is defined as [Corpo- B. 3 and 4
ration Bank PO 2011]

C. 1, 2 and 4
A. Balance of trade
D. 2, 3 and 4
B. Balance of payment
110. The biggest Public Sector undertaking in
C. Balanced terms of trade
the country is .... [Corporation Bank PO
D. Gains from trade 2011]
E. All the above A. Iron & steel plants
B. Roadways
106. 8th Uruguay round
C. Railways
A. 1947
D. Airways
B. 1986
E. None of these
C. Enforce international trade
111. canal provided a direct trade route for
D. Infosys
ships operating between Britain and India.
107. Foreign Direct Investment or FDI occurs A. panama canal
when a company from one country invests
B. suez canal
in another country as an effort to secure
lasting interest in the other country’s en- 112. Both Foreign Direct Investment (FOI) and
terprises to produce and/market a product Foreign Institutional Investor (FII) are re-
or service. lated to investment in a country. Which
A. True one of the following statements best rep-
resents an important difference between
B. False the two? [CSAT 2011]
108. India adopted the following ideas from A. FII helps bring better management
USSR skills and technology, while FDI only
brings in capital
A. Socialism
B. FII helps in increasing capital availabil-
B. Capitalism ity in general, while FDI only targets spe-
C. Communism cific sectors
D. Democracy C. FDI flows only into the secondary mar-
ket, while FII targets primary market
109. Which of the following pairs are correctly D. FII is considered to be more stable
matched? [IAS 2005] Enterprise Indus- than FDI
trial Group
1. VSNL : Bharati Group 113. India’s oldest iron and steel plant is : [In-
2. Mundra Special Economic Zone Ltd. : telligence Bureau 1991]
Adani Group A. TISCO at Jamshedpur
3. CMC Ltd. : Tata Group B. TISCO at Burnpur
4. IPCL : Reliance Group Select the cor-
rect answer using the codes given C. Durgapur Iron and Steel Plant
below: D. Rourkela Iron and Steel Plant

114. Foreign aid is a commonly used tool of C. It is the account showing transactions
foreign policy. like net external assistance, NRI deposits,
A. True etc.
B. False D. It is the account showing trade bal-

ance plus invisible balance
115. The main argument advanced in favour of
119. UTI has been divided into two parts UTI-I
small scale and cottage industries in India
and UTI-II. Which part has been kept under
is that:
the control of the government?
NARAYAN CHANGDER
A. cost of production is low
A. UTI-I
B. they require small capital investment
B. UTI-II
C. they advance the goal of equitable dis-
C. Both the above
tribution of wealth
D. they generate a large volume of em-
ployment 120. BoP (Balance of Payment) refers to :
116. Over the last few years: A. transactions in the flow of capital
1. the value of imports has increased B. transactions relating to receipts and

at a faster rate as compared to ex- payment of invisibles
ports C. transactions relating only to exports
2. exports have fallen as compared to and imports
imports D. systematic record of all its economic
3. both exports and imports have risen transaction with the rest of the world
4. the balance of trade has been
favourable to India 121. In which year make in India launched
A. 1, 2 and 3 A. 2004
B. 1 and 3 B. 2012
C. 1 C. 2014
D. 1, 3 and 4 D. 2016
117. Which is not related to our foreign policy 122. Decreased government spending would
result in
A. World co operation
A. A lower discount rate
B. World peace
B. Higher prices
C. Racial equality
C. Lower taxes
D. Colonialism
D. Higher reserve amount
118. What is the current account of balance of
123. Muziris is an ancient harbour and urban
payments?
centre on the Coast.
A. It is the account showing difference of A. Calicut
total exports and imports in one year
B. Malabar
B. It is the account showing transactions
in invisible account like tourism, shipping, C. None of the above
insurance etc. D. none of above

124. Which one of the following statements is A. Net exporter of raw materials
not correct? [IAS 2005] B. Net importer of finished goods repro-

A. Rourkela Steel Plant, the first inte- duced by British India
grated steel plant in the Public Sector of C. Surplus on account of foreign trade
India was set up with the Soviet Union col- was spent on war expenses
laboration.
D. All of these
B. Salem Steel Plant is a premier pro-
ducer of stainless steel in India. 129. Core industries include:
C. Maharashtra Elektrosmelt Ltd. is a A. basic industries
subsidiary of the Steel Authority of India B. industries catering to defence require-
Ltd. ments
D. Visakhapatnam Steel Plant is a unit of C. critical industries
the Rashtriya Ispat Nigam Ltd.
D. all the above
125. It was the capital of the Pandayas who
controlled the pearl fisheries of the Gulf 130. During british rule, more than 50% of In-
of Mannar. It attracted foreign merchants, dia’s foreign trade was confined to USA
particularly Romans, for carrying out over- A. FALSE
seas trade. B. TRUE
A. Mathura
131. One of the main factors that led to rapid
B. Tamralipti expansion of Indian exports is :
C. Surat A. liberalisation of the economy
D. Madura B. diversification of exports
126. Present Industrial policy in India aims at C. imposition of import duties
: D. recession in other countries
A. promoting the private sector units
132. which of the following countries is the
B. increasing the production of public sec- largest trading partner of India?
tor units
A. US
C. accelerating the performance of mixed
B. Uk
economy
C. UAE
D. discourage the performance of the pri-
vate sector D. China
127. Inward looking trade strategy relies on: 133. Which of the following statements re-
garding the iron and steel plants at Bhilai,
A. export promotion
Rourkela and Durgapur are correct? [CDS
B. import substitution 1992]
C. both (a) and (b) 1. These plants were established in
D. none of these public sector during the Second Five
Year Plan
128. What was the condition of foreign trade 2. These are located in the steel raw
under British rule? material belt

3. These were established with the 138. Which coast are used for trade of black
help from Britain, Soviet Union and pepper
West Germany respectively A. Malabar
A. 1 and 2
B. goa
B. 2 and 3
C. mumbai
C. 1 and 3
D. none of these
D. 2 and 3
NARAYAN CHANGDER
139. Who granted the English “golden fire-
134. Which of the following methods would
man” in 1632
NOT attract FDI into a country?
A. Jahangir
A. Tax breaks and subsidies
B. Grants and low interest loans B. Sultan of Golconda
C. Relaxed regulations and reduced re- C. Akbar

strictions D. Aurangzeb
D. Political instability and uncertainty
140. MNC
135. The exports of India: A. 1947
A. are confined to a few items B. Minimise cost of production
B. are spread over several commodity C. 1986
groups
D. Enforce international trade
C. have not shown much of a change
since 1960-61 141. Indian Railways revenue from:
D. comprise mainly of agro-based prod- A. passenger fare
ucts
B. freight
136. India’s largest FDI as of 2020 is from
C. traffic tax
A. China
D. passenger tax
B. Singapore
C. UK 142. Which of the following agencies has the
power to declare any industrial unit as a
D. Mauritius potentially sick unit? [CDS 2000]
137. Consider the following statements: [NDA A. BIFR
2003]
B. MRTPC
1. The first newsprint plant set up in
India was at Nepanagar. C. FICCI
2. The first modern steel plant in India D. IRBI
was set up at Bhadrawati. Which of
these statements is/are correct? 143. WTO
A. 1 only A. Infosys
B. 2 only B. Enforce international trade
C. Both 1 and 2 C. 1986
D. Neither 1 nor 2 D. 1947

144. Multinational corporation in India 149. New exim policy has choosen a town for
A. 1947 the pottery export :

B. Enforce international trade A. Panipat
B. Moradabad
C. Minimise cost of production
C. Khurja
D. Infosys
D. Agra
E. 1986
150. EOU stands for
145. Trade deficit occurs when
A. Expected Output per Unit
A. export>import
B. Export Oriented Unit
B. export<import
C. Export Order Undertaking
C. export=import
D. export#import
151. Which one among the following is not
146. Sector-wise, maximum employment in true for Special Economic Zones? [CDS
the public sector is in : 2011]
A. electricity, gas and water A. No licence is required for import
B. community, social and personal ser- B. Manufacturing and service activities
vices are allowed
C. finance, insurance and real estate C. No permission for subcon- tracting
D. transport, storage and communication D. No routine examination of cargo for ex-
port/import by customs authorities
147. Which of the following would most likely
lead to an increase in the FD in the short 152. Which of following are examples of for-
term? eign direct investments?
A. An appreciation of the AUD. A. Mergers
B. A fall in Australia’s household savings B. Acquisitions or partnership in retail
ratio. C. Vertical FDI
C. A decrease in the size of a federal gov- D. Service & Manufacturing
ernment budget deficit
153. indian became an of primary products
D. A fall in the size of the current account
and of finished goods.
deficit.
A. importer, exporter
148. The government issues currency and coins
B. exporter, importer
to
A. Promote global trade 154. Which Agriculture export item is second
in case of India?
B. Control exchange of goods and ser-
vices A. Marine product
C. Promote monopolies B. Rice
D. Help make exchange of goods and ser- C. Sugar

vices easier D. Oil cake

1.7 International Organisations and Human Development 150
155. Trade surplus occurs when C. any firm can influence price and supply
A. export>import in the market
B. export<import D. no firm can influence price and supply
in the market
C. export=import
D. export#import 159. The following is the list of four integrated
steel plants in the country [CDS 1991]
156. What does the acronym FDI mean?
1. Bhilai
NARAYAN CHANGDER
A. Free Daily Inputs
2. TISCO
B. Foreign Dividends Investment 3. IISCO
C. Foreign Direct Intervention 4. Bokaro Which of the following com-
D. Foreign Direct Investment binations lists all the plants in the
public sector ?
157. which of the following is India’s highest
A. 1, 2 and 4
exporting category?
A. Gems & Jewellery B. 1, 3 and 4
B. Agri-products C. 2, 3 and 4
C. Readymade garments D. None of these
D. Coffee
160. Hundi that is payable on order following
158. Under perfect competition: [GIC AAO a fixed term is called
1993] A. Dhani-jog (Darshani)
A. any firm can influence price in the mar-
B. Jokhmi (Muddati)
ket
C. Firman-jog (Muddati)
B. any firm can influence supply in the
market D. Dhani-jog (Muddati)
1.7 International Organisations and Human Development

1. Countries that want to join the IMF must D. Thailand
A. pay a quota 3. Which picture best represents NAFTA and

B. pay each of the existing members an the WTO?
entrance fee
C. agree to allow IMF conditionally
A.
D. recognize the importance of the US
2. WHICH COUNTRY IS THE TOP BORROWER
OF WORLD BANK?
A. Mexico
B.
B. Republic of Korea
C. Cuba

8. Which one among the following is not a

clause of World Trade Organization? [CDS
C. 2012]

A. Most favoured nation. treatment
B. Lowering trade barriers with negotia-
tions
D. C. Providing financial support to the coun-
tries having deficit balance of payments
D. Discouraging unfair trade practices
such as antidumping and export subsidies
4. Which of the following is not an objective
of the G-20 Summit? 9. Governments, firms, investors etc., should
A. Promoting global economic growth have confidence that trade barriers will
not be raised arbitrarily. What principle
B. Enhancing financial regulation is this?
C. Improving international trade rela- A. Non-discrimination
tions
B. Free trade
D. Promoting religious harmony C. Predictability
5. International peace and cooperation is dis- D. Promotion of fair competition
cussed in the of our Constitution E. Development and economic reform
A. 51 article should be encouraged
B. 41 article 10. world bank is the largest lender in the
world?
C. 52 article
A. true
D. 61 article
B. false
6. is the 25% component of a member C. can’t say
country’s quota with the IMF that is in the
D. none of above
form of gold/ foreign currency and with-
drawn virtually at will by the members. 11. trust funds are used to-(you many tick
A. Stand By arrangement more than one option)
A. financial concessional lending
B. Supplementary Finance Facility
B. debt relief to high income countries
C. Gold or Reserve tranche
C. debt relief to low income countries
D. Extended Fund Facility
D. spend on any purpose
7. Rapid integration and connection between
12. Which of the following is a main function
countries is known as
of WTO?
A. Liberalisation A. Reviewing national trade policies
B. Investment B. Administering trade agreements
C. Globalisation C. Settling trade dispute
D. Interrelation D. All is correct

13. The International Development Associa- C. Global

tion, a lending agency, is administered by D. Great
the [IAS 2010]
19. WHAT WAS THE PARENT ORGANIZATION
A. International Bank for Reconstruction
OF WORLD BANK?
and Development
A. World Bank Institute
B. International Fund for Agricultural De-
velopment B. World Bank Corporation
C. World Bank Group
NARAYAN CHANGDER
C. United Nations Development Pro-
gramme D. World Bank Association
D. United Nations Industrial Develop- 20. What determines a country’s borrowing
ment Organization power from the IMF?
14. Which of the following organisations lays A. country size
stress on liberalisation of foreign trade B. loan size
and foreign investment?
C. a quota
A. International Labour Organisation
D. the World Bank
B. International Monetary Fund
21. Why was OPEC created?
C. World Health Organisation
A. To regulate the supply and price of oil
D. World Trade Organisation
B. to help the Palestinians in their prob-
15. WHERE IS THE HEADQUARTER OF WORLD lems with Israel
BANK? C. to design new machinery to get oil out
A. WASHINGTON, D.C of the ground
B. CALIFORNIA D. to keep countries that are not mem-
C. NEW HAMPSHIRE bers from producing any oil
D. FLORIDA 22. Human Development Index comprises lit-

eracy rates, life expectancey at birth and:
16. EU, ASEAN, SAARC and BRICS are all form [IAS 1997]
of
A. gross domestic product per head in the
A. Multilateral regional cooperation US dollars
B. Bilateral cooperation B. gross domestic product per head at
real purchasing power
17. world bank provides-
C. gross national product in US dollars
A. low interest loans
D. national income per head in US dollars
B. grants to developing countries
23. WHICH COUNTRY IS THE LARGEST SHARE-
C. investment for education development
HOLDER OF IBRD?
D. all of these
A. Japan
18. What is letter G in G20? B. China
A. Group C. The United States
B. General D. The United Kingdom

24. In 1971 these countries signed an agree- 29. Who founded IMF?
ment of 20 years peace and cooperation.
A. John Maynard Keynes Only

A. India Russia
B. Thomas Edison only
B. India America
C. Harry Dexter White only
C. India china
D. John Maynard Keynes and Harry Dex-
D. Russia America ter White
25. The WTO carries out periodic reviews of 30. International trade can be detrimental to
its members’ national trade policies. Mem- nations if it leads to:a) dependence on
bers are required to notify the WTO of any other countriesb) Growing gap between
changes in trade policy. What is this func- rich and poor countriesc) commercial link-
tion? ages amongst countriesd) Rivalry and
A. It facilitates co-operation with other wars between countries
international organisations A. All the statements are incorrect
B. It monitors national trade policies
B. All the statements are correct
C. It provides technical assistance and
C. Only a, b and c are correct
training for developing countries
D. Only a, b and d are correct
D. It provides a forum for trade negotia-
tions
31. What is the main objective of the World
E. It handles trade disputes Bank?
26. Under the , each country pegged the A. To reduce poverty and improve living
value of its currency to gold. standards
A. mercantilism B. To promote an orderly system of world

trade
B. gold standard
C. To provide educational support to
C. econometrics member states
D. factor endowment theory D. To offer technical expertise and eco-
nomic aid
27. What happens to the price of oil when
OPEC countries decide to limit production?
32. Which of the following states are classi-
A. prices rise fied as the BRICS?
B. prices drop A. Belgium, Romania, Iceland, Canada,
Sweden
28. The principle of eye for an eye in foreign
policy is followed by. B. Brazil, Russia, India, China, South
Africa
A. Lal bahadur shastry and Nehru
C. Britain, Rwanda, Ireland, Cuba, Singa-
B. Lal bahadur shastry and Indira Gandhi pore
C. Manmohan singh and Indira Gandhi
D. Bahrain, Reunion, Iran, Cameroon,
D. Rajiv Gandhi and Lal bahadur shastry Switzerland

33. Many a times, we read about Special C. Supporting economic development

Drawing Right (SDR) in newspapers. As and job creation
per its definition. SDR is a monetary unit D. Provide reconstruction loans to the
of the reserve assets of which of the fol- devastated economies of Europe
lowing organizations/agencies? [SBI PO
2010] 38. Where was the first BRICS meeting held?
A. World Bank A. Russia
B. International Monetary Fund (IMF) B. China
NARAYAN CHANGDER
C. Asian Development Bank C. India
D. Reserve Bank of India D. South Africa
E. None of the above 39. New Development Bank (NDB) also com-
monly known as BRICS bank
34. This country not supported India for per-
manent Seat in the UN Security Council. A. Voices concern on global issues like
terrorism and climate change
A. USA
B. An initiative to help its member coun-
B. Russia
tries to develop its economy
C. China
40. what are world bank’s objective till 2030?
D. Brazil
A. end extreme poverty and promote
35. SDRs of the IMF stand for: shared prosperity
A. Social Drawing Rights B. end capitalism and promote prosperity
B. Special Domestic Rights C. end Chinese products and promote
trade
C. Special Drawing Rights
D. end barriers and promote agriculture
D. Special Drawing Ropes
41. India and USSR agreement.
36. “World Development Report” is an annual
publication of: [IAS 2002] A. 1971
A. United Nations Development Pro- B. 1974
gramme C. 1969
B. International Bank of Reconstruction D. 1970
and Development
42. G-77 summit is a forum for: [CDS 2000]
C. World Trade Organisation
A. North-South Cooperation
D. International Monetary Fund
B. East-West Cooperation
37. WHAT WAS THE ORIGINAL MISSION OF C. South-South Cooperation
THE WORLD BANK GROUP?
D. North-North Cooperation
A. Reduce poverty and improve people
lives 43. What happens to the price of oil when
B. Providing resources, sharing knowl- OPEC countries decide to limit production?
edge, building capacity A. prices rise

B. Prices Drop A. Multilateral Investment Guarantee

C. prices stay the same Agency

D. oil stops being sold B. International Finance Corporation
C. International Centre for Settlement of
44. What is the main focus of the IMF? Investment Disputes
A. Reducing poverty and improving living
D. Bank for International Settlements
standards
B. Promoting an orderly system of world 49. This organization was created to promote
trade trade and economic growth by lowering
C. Providing educational support to mem- taxes and removing limits on some types
ber states of trade.
D. Offering technical expertise and eco- A. North American Free Trade Agreement
nomic aid (NAFTA)
B. North Atlantic Treaty Organization
45. An impact of international conflict can be
(NATO)
A. Increase in organised crime
C. United Nations (UN)
B. Cheaper products
D. World Trade Organization (WTO)
C. Holiday cancellations
D. Weapons become more expensive 50. When did IMF start functioning?
A. April 13, 2004
46. The silk trade between India and China is
discussed in. B. December 27, 1944
A. Kaalidaasa’s Meghadhuta C. December 27, 1945
B. Baana’s Harshacharita D. December 31, 1945
C. Kautilya’s Arthashastra
51. The steel plants of Bhilai and Bokaro are
D. Kalhana’s Rajatarangini assisted by.
47. Seaports are called Gateways of Interna- A. USA
tional Trade because:a) Cargoes and pas-
B. Russia
sangers travel from one part of the world
to other through these portsb) The ports C. China
provide facilities for docking, loading, un-
D. Brazil
loading and storage of goodsc) Ports make
arrangements for tugs and barges 52. Which international organization is located
A. All the statements are correct in the United States?
B. Only a and b are correct A. North Atlantic Treaty Organization
C. Only a is correct (NATO)
D. All the statements are incorrect B. The United Nations (UN)
C. World Trade Organization
48. Which one of the following is not related
to United Nations? [IAS 2010] D. The World Court

53. Which country hosted the first G-20 Sum- A. North Atlantic Treaty Organization
mit? (NATO)
A. Canada B. North American Free Trade Agreement
B. United States (NAFTA)
C. United Kingdom
D. Germany
57. Which of the following is not a member of
NARAYAN CHANGDER
54. As we all know rise of the ’BRICS’
the G-20?
has left a vast impact on almost all as-
pects of the global economy. However, A. Brazil
which of the following cannot be called B. China
as the direct effect(s) of ’Rise of the
C. Switzerland
BRICS’ on global/other powerful econ-
omy/ economies? [Punjab & Sindh Bank D. Australia
2011] 58. WHEN WAS THE WORLD BANK SET UP?
A. Countries like China wish to learn A. July, 1994
more about outsourcing from India.
B. October, 1994
B. It has made countries to suffer from
Sub-prime Crisis. C. September, 1997
D. January, 1998
C. EURO has become a powerful currency
and many non-Euro countries are in ’Swap 59. Which country will host the G20 summit in
Agreement’ with various nations. 2023?
D. Only A A. India
E. Only B B. China
F. Only C C. Switzerland
G. All A, B & C D. Australia
H. None of these 60. The term BRIC was coined by
55. What is the mandate of the IMF A. United Nations
A. reduce poverty by lending the money B. Goldman Sachs
of rich corporations to poor corporations
61. Where is the IMF HQ?
B. to reduce poverty by lending the
A. Strasbourg
money of rich countries to poor countries
B. New York
C. to ensure the stability of the interna-
tional monetary system C. Boston
D. to ensure the stability of the interna- D. Washington DC
tional political system 62. With reference to BRIC countries, consider
56. The purpose of this international organi- the following statements:
zation is to keep peace around the world 1. At present, China’s GDP is more
and develop friendly relationships among than the combined GDP of all the
nations. three other countries.

2. China’s population is more than the and encouraged the economic growth of its
combined population of any two members.
other countries. Which of the state-

A. North Atlantic Treaty Organization
(NATO)
[IAS 2010]
B. North American Free Trade Agreement
A. 1 only
(NAFTA)
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
67. Which of the following states in India has
63. Arunachal Pradesh is the issue matter of
three major sea ports?
these two nations.
A. Pakistan A. Tamil Nadu
B. Srilanka B. Kerala
C. USA C. Maharashtra
D. China D. West Bengal
64. Which group has been an example for suc- 68. The headquarters of IMF and World Bank
cessfully determining the amount and price are located at :
of a world-wide commodity?
A. Geneva and Montreal
A. The European Union
B. Geneva and Vienna
B. World Trade Organization
C. New York and Geneva
C. North Atlantic Treaty Organization
D. Both Washington DC
D. Organization of Petroleum Exporting
Countries 69. Out of the following select the standing
committees of UNCTAD.
65. Consider the following countries:
1. Brazil A. economic cooperation
2. Mexico B. Poverty alleviation
3. South Africa According to UNCTAD,
C. committee on commodities
which of the above is/are cate-
gorized as “Emerging Economies”? D. committee on services
[IAS 2010]
E. all of these
A. 1 only
B. 1 and 3 only 70. Which year was the G-20 Summit first
held?
C. 2 and 3 only
A. 1997
D. 1, 2 and 3
B. 2001
66. This organization allows free trade among
C. 2003
the United States, Canada, and Mexico
and has helped with trade, created jobs, D. 2008

71. How many permanent members of the UN 76. The United Nations Conference on Trade
Security Council are there? and Development (UNCTAD) is located at
A. Four which of the following places?
B. Five A. Geneva
B. Rome
C. Six
C. Paris
D. Fifteen
D. Vienna
72. Choose the incorrect statement.
NARAYAN CHANGDER
77. One common objective of multilateral or-
A. The act of opening up economies for ganisation is to
trading is called trade liberalisation
A. Enter the markets of its member coun-
B. Trade liberalisation is attained by in- try and instruct “right” political ideals
creasing the tariff
B. Evolve cooperation and non-
C. It allows goods and services from ev- interference in the internal policies
erywhere to compete with domestic prod-
ucts 78. What is the cause behind the decline in the
share of traditional items of export from
D. Trade liberalisation is not in favour of
India?
small businesses
A. Low quality products
73. WTO helps in the implementation and ad- B. Tough international competitions
ministration of international trade agree-
ments. What is this function? C. Decline in the production of traditional
items
A. It facilitates co-operation with other
international organisations D. Decline in demand of these products
B. It monitors national trade policies 79. The agreement at Tashkent between India
and Pakistan was in the year.
C. It administers WTO trade agreements
A. 1962
tions B. 1963
E. It handles trade disputes C. 1965
D. 1966
74. When was IMF established/ conceived?
80. Consider the following:
A. April 2004
1. Life expectancy at birth
B. July 1944
2. Gross enrolment ratio for schools
C. December 1945 3. Adult Literacy rate
D. January 1945 4. Per capita income Which of the
above is/are the parameters for the
75. The headquarters of OPEC (Organisation measurement of Human Develop-
of Petroleum Countries) is at : ment Index by UNDP? [CDS 2005]
A. Vienna A. 1, 2 and 4
B. Kuwait City B. 1 and 3
C. Algeria C. 4 only
D. Tehran D. 1, 2, 3 and 4

81. What is the official language of the G-20 D. cutting edge knowledge
Summit? E. research analysis

A. English
86. Which one of the following is not a mem-
B. French
ber of Organization of the Petroleum Ex-
C. Spanish porting Countries (OPEC)? [Asstt Comm
D. All of the above 2008]
82. The headquarters of World Trade Organi- A. Algeria

sation (WTO) is situated at: B. Brazil
A. New York, USA C. Ecuador
B. Brussels, Belgium D. Nigeria
C. Geneva, Switerland
87. The International Criminal Court (ICC) has
D. London, UK NO army or police
83. What organisation does this logo repre- A. True
sent? B. False
88. One of the main bone of contentions be-

tween India and China is.
A. China’s invassion over Tibet
B. Arunachal Pradesh issue
C. River water disputes
D. Racial enimity
A. IMF 89. Which of the following is not true about

International trade in India?
B. WTO
A. The value of export is less than the
C. GATT
value of import
D. EU
B. International trade in India has under-
84. What services does the World Bank pro- gone a sea change from the past
vide? C. India’s contribution in world trade is
A. Educational support and cultural con- as low as 4%
cerns D. Manufactured goods share bulk of ex-
B. Technical expertise and economic aid ports from India
85. world bank provides support to develop- 90. What is the impact of neo-liberal restruc-
ing countries through which means?(you turing on low-income countries?
may tick more than one)
A. Significant improvement in education
A. policy advice and healthcare
B. seminars and conferences B. Limited access to basic services for
C. technical assistance the majority

C. Increased employment opportunities 95. how many development institutions are

for the population there in world bank?
D. none of above A. 1
B. 2
91. Which of the following is not the function
of the World Bank? C. 4
D. 5
A. To provide long term loan to the mem-
ber countries
NARAYAN CHANGDER
96. Look at the table enclosed. Which of the
B. To provide loan to private investors be- following has been incorrectly matched.
longing to member countries on its own A. 1
guarantee
B. 2
C. To ensure exchange rate stability C. 4
D. To provides loan mainly for productive D. 5
activities
97. Banks of BRICS nations have agreed to es-
92. The practice of selling a commodity in two tablish credit lines in currencies.
countries at a price that differs for reasons A. Legal
not related to costs is called:
B. Plastic
A. Dumping
C. Cryptocurrency
B. Free Trade D. National
C. Donation
98. Amnesty International is an organisation
D. Charity associated with which of the following
fields?
93. The racial discrimination of skin is called.
A. Protection of cruelty to animals
A. Apartheid
B. Environment protection
B. Castism C. Protection of human rights
C. Gender discrimination D. Protection of historic monuments
D. colorism 99. Which of the following describe correctly
the Group of Seven Countries (G-7)?
94. What is the main argument of neo-liberals
regarding the drop in living standards? A. They are developing countries.
A. It is justified by longer-term economic B. They are industrialised countries.

gains C. They are holding Atomic Bomb technol-
ogy.
B. It is an unfair consequence of capital-
ism D. They are countries who can launch
their own satellites
C. It is a result of government misman-
agement 100. What does OPEC stand for?
D. It is a necessary sacrifice for social A. Organization of Petroleum Excelling
progress Countries

B. Oil Producing of the Equilibrium Coun- D. ALL OF THE ABOVE

tries
105. The religion which orginated in India has

C. Organization of Petroleum Exporting found wide acceptance in China was.
Countries
A. Jainism
D. Oil, Petroleum, and Excellent Coun-
tries B. Vedic culture
C. Hindusim
101. What is the mandate of the World Bank
D. Buddhism
A. Reduce poverty by lending rich corpo-
rations’ money to poor corporations 106. The office of the UN General Assembly is
B. Reduce poverty by lending rich coun- in-
tries’ money to poor countries A. Vienna
C. Ensure stability of the international B. New York
monetary system
C. Paris
D. Ensure stability of the international po-
litical system D. Zurich
102. When WTO members disagree on trade 107. Functions of UNCTAD are studied in how
issues, the WTO makes decisions to re- many heads?
solve the differences on the basis of the A. 1
legal foundations of the trade agreement. B. 2
What is this function?
C. 3
international organisations D. 4
B. It monitors national trade policies 108. What country consumes more oil than
C. It administers WTO trade agreements they produce?
D. It provides a forum for trade negotia- A. Iran
tions B. USA
E. It handles trade disputes C. Kuwait
103. Some different international sanctions D. Saudi Arabia
are
109. How do Iran and Saudi Arabia bene-
A. Financial fit from belonging to the Organization of
B. Sporting Petroleum Exporting Countries (OPEC)?
C. Travel bans A. OPEC keeps the price of oil high on the
D. A telling off world market
B. Countries in OPEC are able to share
104. Which of the following is not associated water resources with each other
with the UNO?
C. The organization sets up tariffs to pro-
A. ILO tect Southwest Asian manufacturing
B. WHO D. OPEC makes it possible for Southwest
C. ASEAN Asian countries to buy oil at low prices

110. UNCTAD provides technical assistance to 115. HOW MANY INSTITUTIONS DOES
developing nations on which basis? WORLD BANK HAVE?
A. management of public attitude A. 7
B. management of public debts B. 5
C. management of politics and economy C. 6
D. management of public life and stan- D. 4
dard
116. SAARC stands for
NARAYAN CHANGDER
111. In which city was the 2021 G-20 Summit A. South American Association for Re-
held? gional Cooperation
A. Riyadh B. South Asian Association for Regional
B. Tokyo Cooperation
C. Buenos Aires 117. Who represents India at the G-20 Sum-

mit?
D. Rome
A. Prime Minister
112. IMF provides technical assistance mainly
B. President
in how many areas?
C. Foreign Minister
A. 3
D. Finance Minister
B. 4
C. 5 118. What are the conditions called that re-
ceiving countries must agree to?
D. 6
A. Structural Adjustment Programmes
113. On joining the IMF, each member country B. Economic Development Plans
contributes a certain sum of money, called
C. Poverty Reduction Strategies
a quota subscription with of the quota
being paid in gold or dollars and the re- D. none of above
maining in domestic currency.
119. What is the purpose of privatisation in
A. 50% neo-liberal capitalism?
B. 25% A. To promote socialism and equality
C. 75% B. To generate profits for the govern-
D. 20% ment
C. To ensure the widest possible role for
114. WHICH INSTITUTION DOES NOT BELONG the private sector
TO WORLD BANK?
D. none of above
A. The International Development Associ-
ation (IDA) 120. It is one of the major aim of Indian for-
eign policy.
B. The International Finance Corporation
(IFC) A. Solve the internal problems
C. The international Center for Settle- B. Solve the water disputes
ment of investment Disputes (ICSID) C. Cooperationbetween states
D. The international Court of Justice D. National security

121. Maintain the same distance from both 126. Find the odd SAARC member country
blocks is called. out:Afghanistan, Bangladesh, Bhutan, In-
dia, Maldives, Myanmar Nepal, Pakistan,

A. Non Adjustment movement
and Sri Lanka
B. Non Aligned Movement
A. Bhutan
C. Non cooperation movement
B. Myanmar
D. None of the Above
127. Which country currently owes the great-
122. From where is the logo of the G20 2023
est loan to IMF?
summit inspired?
A. USA
A. India’s national flag
B. Portugal
B. Russia’s national flag
C. France’s national flag C. England
D. None of the above D. Mexico
123. UN peacekeepers wear this uniform 128. How many countries are members of the
G-20?
A. A. 20
B. 21
C. 22
B. D. 23
129. The WTO cooperates with World Bank in
order to facilitate coordination of global
C. policies. What is this function?
international organisations
D. B. It monitors national trade policies
124. Which industry does the government of
Saudi Arabia heavily control? D. It provides a forum for trade negotia-
tions
A. oil
E. It handles trade disputes
B. technology
C. agriultural 130. This international organization is a group
of 28 countries that have agreed to pro-
D. textile manufacturing
tect each other in case of attack.
125. Besides UK, USA, Germany and Japan the A. North Atlantic Treaty Organization
G-7 countries includes- (NATO)
A. Canada, France and Russia B. North American Free Trade Agreement
B. Canada, Italy and Netherlands (NAFTA)
C. France, Netherlands and Russia C. United Nations (UN)
D. Canada, France and Italy D. World Trade Organization (WTO)

131. What is a potential negative consequence change and special privileges. What prin-
of neo-liberal capitalism? ciple is this?
A. Expatriates taking management posi- A. Non-discrimination
tions B. Free trade
B. Increased government control over in- C. Predictability
dustries
D. Promotion of fair competition
C. Limited job prospects for local people
E. Development and economic reform
NARAYAN CHANGDER
D. Higher wages for the majority of the should be encouraged
population
136. IMF has how many countries as its mem-
132. Observe Table 8.5. Which item has the bers?
largest share in total imports of India.
A. 187
A. Petroleum and Petroleum products
B. 188
B. Chemical products C. 180
C. Edible oils D. 189
D. Iron and Steel
137. A primitive system of trade where direct
133. What is the theme of the G20 summit exchange of goods take place:
happening in India? A. Local Trade
A. Shaping an Interconnected World B. Barter Trade
B. Fighting poverty with rigidity C. National Trade
C. “One Earth-One Family-One Future”. D. International Trade
138. The main reason for the tension between
134. The logo represents? India and Pakistan is.
A. Jammu and Kashmir issue
B. Trade disputes
C. Pakistan relationship with China
D. Lahore Bus yatra
139. IS “WORKING FOR A WORLD FREE
OF POVERTY” THE SLOGAN OF WORLD
BANK?
A. TRUE
A. IMF
B. FALSE
B. United Nations
C. World Bank 140. The earlier name of the WTO was:
D. WHO A. UNIDO
B. UNCTAD
135. Developing countries should be offered
flexibility with respect to lowering their C. OECD
trade barriers, more time to adjust to D. GATT

141. makes longer-term loans to pay for A. Free Trade

specific projects related to development or
B. Cocoa Alliance
poverty reduction.

A. World Trade Organization C. Rainforest Alliance
B. World Bank D. Fair Trade
C. IMF
147. Which country hosted the first-ever vir-
D. Federal Reserve tual G-20 Summit in 2020?
142. The headquarters of the UNESCO is at- A. Saudi Arabia
A. Rome B. Japan
B. Geneva
C. Australia
C. New York
D. Canada
D. Paris
143. Which of the following institutions is not 148. The G-20 consists of how many conti-
part of the World Bank community? nents?
A. IBRD A. 2
B. WTO B. 3
C. IDA C. 4
D. IFC
D. 5
144. Which of the following is a key theme for
the G-20 Summit in 2023? 149. What is the concept of ‘trickle down’ ef-
fect in neo-liberal capitalism?
A. Empowering women and youth
B. Promoting sustainable agriculture A. The equal distribution of wealth among
the population
C. Addressing climate change
D. Improving public health B. The gradual improvement of living
standards for all
145. What does IMF stand for?
C. The concentration of wealth in the
A. I Miss Family hands of a few
B. International Money Fund D. The transfer of economic benefits
C. International Monetary Fund from the rich to the poor
D. International Market Fund
150. China’s invasion of India in 1962, had
146. This is the logo of which organisation supported India at UNO.
A. USA
B. Russia
C. China
D. Brazil

151. is an interest-bearing international 156. How can individuals participate in and

reserve asset created by the IMF in 1969 support international organizations? (pick
to supplement other reserve assets of all that apply)
member countries. A. Donate money
A. SDRs B. Intern or Work for an international or-
B. GDRs ganization
C. ADRs C. Write a report at home about an inter-
NARAYAN CHANGDER
national organization
D. FCCBs
D. Volunteer for an organization
152. What is the major natural resource of the E. Spread awareness about an interna-
Middle East? tional organization on social media
A. Diamonds
157. The WTO continues the GATT’s empha-
B. Apples sis on equal, non-discriminatory treatment
C. Gold for all member countries (excepting trad-
ing blocs). What principle is this?
D. Oil
A. Non-discrimination
153. Fair Globalisation in WTO is a fight B. Free trade
against
C. Predictability
A. Dissimilarity in interests
B. Domination of developed countries
C. Implementation of tax should be encouraged
D. Developing countries
158. Where is the headquarters of BRICS New
154. A member from WTO cannot set the trade Development Bank situated?
policy which discriminate between its trad- A. Beijing, China
ing partner. It can impose a higher tariff B. Moscow, Russia
on imports from one country and a lower
one on imports from another country. C. Shanghai, China
A. True D. Cape Town, South Africa
B. False 159. Which is the highest decision making

body of UNCTAD?
155. Which of the following names/terms is
A. Secretariat
NOT associated with the World Trade Or-
ganization (WTO)? [Punjab & Sindh Bank B. Quadrennial Conference
2011] C. executive committee
A. UNCTAD D. standing committee
B. GATI
160. Special Drawing Rights (SOR) facility is
C. GATS available at : [SSC Graduate 2003]
D. SEWA A. International Monetary Fund (IMF)
E. FTA B. World Bank (IBRD)

C. International Development Associa- A. IMF

tion (lDA) B. WTO
D. Organisation of Economic Cooperation

C. ASEAN
and Development (OECD)
D. BRICS
161. The headquarters of World Trade Organi-
sation is in : [CDS 2000] 166. identify the four departments of
IMF?(CHOOSE MORE THAN ONE)
A. Montreal
A. Area department
B. Seattle
B. functional and services department
C. Geneva
C. inform and late department
D. The Hague
D. support service department
162. The G-8 countries include:
167. PIIGS is the group of nations falling un-
1. France 2. Germany der........ [RBI Grade B Officer 2011]
2. Canada 4. Italy 5. Netherlands 6.
U.K. 7. U.S. 8. Russia 9. Japan A. Euro zone
A. 1,2,3,4,6,7,8,9 B. Asia Pacific
B. 1,2,4,5,6,7,8,9 C. SAARC
C. 1,2,3,4,6,7,8,9 D. NATO
D. 1,2,3,4,5,6,7,9 E. Commonwealth
163. is a financial facility of the IMF, es- 168. The World Bank and IMF gives respec-
tablished in 1997 over and above its or- tively:
dinary lending to provide financial assis- A. long term and short term credits
tance to member countries experiencing B. short term and long term credits
exceptional BOP difficulties
C. both long term credits
A. Stand By arrangement
D. both short term credits
C. Gold or Reserve tranche 169. How often the meeting of BRICS held?
D. Extended Fund Facility A. Once in four years

B. Once in three years
164. Which of the following countries is not a
member of both the G-20 and the BRICS C. Biennial
group? D. Annually
A. Russia 170. Financial assistance by IMF helps coun-
B. South Africa tries to-(you may tick more than one op-
C. Brazil tion)
D. India A. rebuild their international reserves

B. stabilize their currencies
165. “Trade Negotiation & Dispute Settle-
ment” is the major objective of which of C. gain maximum profits
these D. stop corruption in departments

171. Which of these are nicknamed ’Bretton 176. The headquarters of Food and Agriculture
Woods Twins’ ? Organisation is in-
1. IDA A. Washington
2. IMF B. Paris
3. IBRD
C. Madrid
4. WTO
D. Rome
A. 1and 4
177. When a country faces serious medium-
NARAYAN CHANGDER
B. 2and 4
term BOP problems because of structural
C. 3 and 4 weaknesses that require time to address,
D. 2 and 3 the IMF can assist through an
172. Which nation leads the Middle East re- A. Stand By arrangement
gion in the production and export of oil? B. Supplementary Finance Facility
A. Iran C. Gold or Reserve tranche
B. Iraq D. Extended Fund Facility
C. Kuwait 178. What is a ‘Hinterland’?
D. Saudi Arabia A. Area of influence of a port, city or in-
dustry
173. What is an element of the World Bank’s
B. The neighbouring places to a port
enforcement?
C. The places from where a port receives
A. borrowing becomes part of the
its goods
sovereign debt of the borrower
D. The places to which a port supplies its
B. borrowing becomes part of the
goods
sovereign debt of the borrower
C. both a and b are correct 179. India faced serious food shortages in
1950’s and 1960’s. So food grains
D. neither a nor b are correct were an important item of import. What
changed this condition after 1970’s?
174. The main reason for Sino-Indian war (In-
dia China war) is. A. High Price of grains in International
market
A. Tibetan crisis
B. The success of Green revolution in In-
B. India Pakistan rivalry
dia
C. Arunachal Pradesh C. Spread of epidemics
D. River water disputes. D. Decline in population
175. To date how many summits of G20 have 180. What are some of the topics that will be
been held? discussed at the G20 summit in 2023?
A. 5 A. The global economy
B. 12 B. Global security
C. 13 C. Global climate change
D. 17 D. Global health

181. Where is IMF located? 186. Find the odd member country outDuring
its formation in 2006 its members were
A. Alberta
Brazil, Russia, India, China, and South

B. Washington D.C Africa respectively.
C. L.A A. South Africa
D. Tokyo B. China
182. Both the IMF and World Bank structures C. Brazil

were created and decided upon at the fo- D. none of above
rum known as
187. The GATT was based on the following
A. Plaza Accord
principles
B. Louvre Accord
A. Non-discrimination
C. Smithsonian Agreement
B. Elimination of non-tariff trade barriers
D. Bretton Woods Conference C. Consultations to resolve trade dis-
putes
183. Observe Table 8.5. Why does India im-
port edible oil, inspite of being an agricul- D. none of above
turally rich country? Choose the best pos-
sible answer. 188. UNCTAD conducts research in which
fields?(you can tick more than one option)
A. Indians consume a lot of oily food
A. science
B. India doesnot produce oilseeds
B. technology
C. The consumption of edible oil in India
is more than its production C. innovation for development
D. India is largest producer of edible oil D. family system

in the world E. consumer behaviour
184. Which country is the largest debtor of 189. Indo-China relationship is based on prin-
UNO? ciples.
A. India A. Communist and Hindu
B. Mexico B. Political and Economic
C. Japan C. Panchsheel and Hindi-Chini Bhai-Bhai
D. U.S. D. Democracy and Equality
185. HOW MANY MEMBERS DOES WORLD 190. This is not in the BRICS group of organi-
BANK HAVE? sation.
A. 108 A. Brazil
B. 173 B. Russia
C. 161 C. USA
D. 189 D. China

191. India and China’s mutual relationships C. It refers to the difference between the
were guided by. value of imports and the value of exports
A. Non-Alied Movement D. Balance of trade has no relation with
developing and developed countries
B. Panchasheela principles
C. Aparthied policy 196. Kochi and Karwar in India are examples
of:
D. Human rights declarations
A. Inland Port
NARAYAN CHANGDER
192. The assistance provided to develop- B. Naval Port
ing countries concerns trade-related is-
sues arising from WTO trade agreements. C. Out Ports
What is this function? D. Comprehensive Ports
A. It facilitates co-operation with other 197. How often is the G-20 Summit held?
international organisations
A. Annually
B. It monitors national trade policies
B. Biennially
C. Triennially
D. Quadrennially
tions 198. Which of the following pairs are correctly
E. It handles trade disputes matched?
1. Dow Jones: New York
193. Which of the following organizations is 2. Hang Seng: Seoul
not affiliated with the G-20? 3. FTSE-100:London Select the correct
A. International Monetary Fund (IMF) answer using the codes given below:
[IAS 1998]
B. World Trade Organization (WTO)
A. 1, 2 and 3
C. World Bank
B. 2 and 3
D. United Nations (UN)
C. 1 and 2
194. Investments made by MNCs are termed D. 1 and 3
as:
199. Which country is matched wrong?
A. Indigenous investment
B. Foreign investment
C. Entrepreneur’s investment
195. Which of the following is not true about

‘Balance of Trade’?
A. Developing countries have negative
balance of trade
B. Developed countries have negative
balance of trade A. Red-Brazil

B. Blue-South Africa 204. ‘Difference of natural resources’ is an

C. Green-Russia important basis of interanational trade.
Which of the following factors doesn’t ex-

D. Yellow-India plain difference in natural resources?
200. Which country is scheduled to host the A. Mineral resources are unevenly dis-
2022 G-20 Summit? tributed
A. India B. Variation in climate causes variation in
B. Italy natural vegetation
C. Saudi Arabia C. Densely populated countries have

large volume of internal trade
D. Japan
D. None of these
201. is a group of countries agree to abol-
ish all trade restrictionsand barriers 205. International trade is based on which of
the following principles?
A. Common market
A. Principle of Comparative advantage
B. Economic Union
C. Free Trade Area B. It should be mutually beneficial to the
trading partners
D. Custom Union
C. Complimentarity and Specialisation of
202. Where is the World Bank HQ? skills
A. New York D. All of these
B. Washington DC
206. The South Asian Free Trade Area (SAFTA)
C. Brussels is an agreement which aims to
D. Berlin A. Build a stronger political alliance by
2016
203. Very often we read about the Doha Min-
isterial Conference 2001 in reference to B. Reduce customs duties of all traded
WTO negotiations. What were the ma- goods to zero by the year 2016
jor issues over which nations were of dif-
ferent opinions? [Punjab & Sindh Bank 207. When was South Africa inducted into
2011] BRIC (Brazil, Russia, India, China) to form
BRICS?
A. Providing subsidy to agriculture.
A. 2008
B. Export of patented drugs/medicines
by developed nations. B. 2009
C. Restriction on natural movement of C. 2010
people from one nation to other. D. 2011
D. Only A
208. What does IMF do?
E. Only B
A. Promotes International financial sta-
F. Only C bility and monetary cooperation
G. Both A and C B. Helps its members use trade as a
H. None of these means to raise living standards

C. The principle goal is to ensure that 213. What is the initial impact of Structural Ad-
goods, services and labour can move eas- justment Programmes?
ily across boarders A. An increase in living standards
D. Promotes work to build better policies B. Government subsidies on basic goods
for better lives
C. Improved access to education and
209. Unfair practices such as dumping and ex- healthcare
port subsidies are discouraged. What prin-
D. A drop in living standards
ciple is this?
NARAYAN CHANGDER
A. Non-discrimination 214. At the time of the creation of the IMF, it
was normal for a currency’s value to be
B. Free trade
fixed
C. Predictability
A. relative to other currencies
B. relative to the price of gold
C. both a and b are correct
should be encouraged
D. neither a nor b are correct
210. Which of these are Commonwealth mem-
ber states 215. What was the name of the group formed
A. Pakistan before WW2 to try and stop wars
B. Australia A. Champions League of Nations

C. Germany B. NATO
D. India C. United Nations
D. League of Nations
211. Which of the following is an example of
‘Entreport’? 216. International trade is mutually benefi-
A. Kolkata Port cial to nations if it results in:a) special-
isation of skillsb) Higher level of pro-
B. Athens
ductionc) Worldwide availability of goods
C. Singapore and servicesd) differentiation of prices and
D. London wagese) diffusion of knowledge and cul-
ture
212. Identify the country by flag?
A. All the statements are correct.
B. Only a, b, c and d are correct
C. Only a, b, c and e are correct
D. All the statements are incorrect
217. Who was the first country to borrow

from IMF?
A. Brazil A. Germany
B. Russia B. Canada
C. South Africa C. France
D. None of the above D. China

218. What is the name of the main court in the A. 1, 2 and 3

EU B. 1 and 2

C. 1 and 3
D. 1, 2, 3 and 4
222. ‘The impact of Globalisation has not been

fair.’ Who among the following people
have not benefitted from globalisation?
A. European Court of Justice A. Well off consumers
B. Court of Justice of the European Union B. Skilled and educated producers

C. Small producers and workers
C. European Union Supreme Court
D. Large wealthy producers
D. EU Super Court
223. ASEAN group includes:
219. Voting rights in the IMF are distributed
A. 18 Countries
on the basis of: [CDS 1993]
B. 29 Countries
A. one country, one vote
C. 6 Countries
B. proportion to the share of the income
of the country in the world income D. 10 Countries
C. proportion to contributions given by 224. Which of the following is not a chief or-
each country gan of the United Nations Organisation?
D. proportion to quota alloted to coun- A. International Labour Organisation
tries from time to time B. Security Council
220. Where are most of the countries of OPEC C. International Court of Justice
located? D. General Assembly
A. Africa 225. Which UN body deals with population
B. South American problem?
C. North American A. UNFPA

B. UNDP
D. Southwest Asia
C. UNICEF
221. Which of the following constitute the D. UNESCO
World Bank? [IAS 1995]
226. Permanent Secretariat to coordinate the
1. International Bank of Reconstruc-
implementation of SAARC programme is lo-
tion and Development
cated at-
2. International Finance Corporation
3. International Development Associa- A. Dhaka
tion B. New Delhi
4. International Monetary Fund
Choose the correct answer from the C. Colombo
codes given below: D. Kathmandu

227. When was G20 established? 232. refers to international financial assis-
tance to a country whose export earnings
A. 1995
have suffered as a result of a decline in
B. 1999 primary commodity prices. Such a system
C. 2000 was instituted in 1963 by the IMF.
D. 1998 A. Stand By arrangement

228. In an economic crisis, countries often
NARAYAN CHANGDER
C. Compensatory Financing Facility
need financing from IMF to help them
overcome their BOP problems. D. Extended Fund Facility
A. Stand By arrangement 233. How many countries are there in IMF?
B. Supplementary Finance Facility A. 250
C. Gold or Reserve tranche B. 189
D. Extended Fund Facility C. 191
D. 190
229. Regarding the International Monetary
Fund, which one of the following state- 234. Identify the achievements of SAARC
ments is correct? [CSAT 2011]
A. Chinese ambitions
A. It can grant loans to any country
B. India as a hegemon
B. It can grant loans to only developed C. People to people exchange
countries
D. none of above
C. It grants loans to only member coun-
tries 235. World Trade Organisation (WTO) was
started at the initiative of which one of
D. It can grant loans to the central bank
the following group of countries?
of a country
A. Developed
230. The countries need to have regulate its B. Developing
interaction with other countries.
C. Under Developed
A. Dual policy
D. Poor
B. Foreign policy
236. What might be the key characteristics
C. Interdependent policy
that have set the BRICS apart?
D. Mutual policy
A. Increased influence and participation
231. This is not one of the panchasheela prin- in international organisations such as the
ciple. United Nations
B. Increasing economic and military ca-
A. Do not belive each other
pabilities
B. Peaceful coexistence
C. Increasing capacity for independent
C. Non interference in each other’s iner- action in order to fulfill their own national
nal issues interests
D. Non invasion of each other D. All of the above

1.8 Natural Resources and Indian Economy 175
237. The country which is not under any other 241. Why was the World Bank established?
country’s control either for internal or ex- A. To promote the International Trade
ternal issues is.

B. To reconstruct the economies dam-
A. Single country aged during the Second World War
B. Isolation country C. To improve the adverse Balance of Pay-
C. Sovereign country ment situation of the nonmember coun-
tries
D. Monopoly country
238. Which of the following is not the member
of the G20? 242. Individual citizens may participate in this
organization whose main goal is to help
A. Indonesia
people around the world by responding
B. Singapore to disasters and running programs in local
C. Mexico communities.
D. Turkey A. The North Atlantic Treaty Organization

B. The Red Cross and Red Crescent
239. Both the IMF and the World Bank were
created most closely after the end of this C. The European Union
world event. D. The United Nations
A. Cold War 243. Trade barriers should be lowered through
B. WWI negotiations. What principle is this?
C. WWII A. Non-discrimination
D. creation of the EU B. Free trade
C. Predictability
240. The makes short-term loans of for-
eign currencies that the borrowing country D. Promotion of fair competition
must use to finance the stabilization of its E. Development and economic reform
own currency. should be encouraged
A. World Trade Organization
244. In both BRICS and SAARC, China and In-
B. World Bank dia are perceived to be a
C. IMF A. Participant
D. all of the above B. Hegemon
1.8 Natural Resources and Indian Economy

1. Oil Pool Deficit is a deficit: oil companies Choose your answer
from:
1. in the balance of payments
2. that the government owes to the A. 1 and 3
world bank B. 2 and 3
3. in the oil pool account
4. that the government owes to the C. 3 and 4

D. 2 and 4 2. One of the components of the Accel-

erated Power Development and Re-
2. Which of the following is NOT a pro- forms Programme (APDRP) is upgra-
gramme / agency of the Union Ministry dation of sub-transmission and dis-
of Finance? [Punjab & Sindh Bank 2011] tribution system for electricity in In-
A. Investor Education and Protection dia. Which of the statements given
Fund (IEPF) above is/are correct? [IAS 2006]
B. National Foundation for Corporate A. 1 only
NARAYAN CHANGDER
Governance (NFCG) B. 2 only
C. Serious Frauds Investigation Office C. Both 1 and 2
(SFIO) D. Neither 1 nor 2
D. Investment Commission 6. Agricultural marketing in India has certain
E. Central Rural Sanitation programme defects which do not include:
A. inadequate transport facilities
3. Who is the originator of Green Revolution
in India? B. lack of standard measures and
weights
A. Norman E. Borlaug
C. agricultural produce not being prop-
B. M.S. Swaminathan erly graded
C. Garry Backer D. insufficient price incentives by the gov-
D. None of these ernment
7. Which one amongst the following has the
4. Consider the following statements: largest livestock population in the world?
1. The number of post offices in India [IAS 2008]
is in excess of 1.5 lakhs. A. Brazil
2. Bharat Sanchar Nigam Limited
(BSNL) was formed in the year B. China
1997. C. India
3. Telecom Regulatory Authority of In- D. USA
dia (TRAI) was established in the
year2000. Which of the statements 8. The success of the Green Revolution does
given above is/are correct? [IAS not require:
2005) A. adequate irrigation facilities
A. 1, 2 and 3 B. availability of high yielding seeds
B. 1 and 2 C. pesticides and chemical fertilizers
C. 1 only D. large scale mechanization
D. 3 only 9. Highest milk producer in India is :
A. U.P.
5. Consider the following statements:
B. Gujarat
1. Appellate Tribunal for Electricity has
been established by each State Gov- C. Punjab
ernment in India. D. Haryana

10. Which of the following is/are commod- 13. Which one of the following categories of
ity/ies on which subsidy is given to farm- workers is termed as cultivators? [CPO SI
ers/poor in India? [SBI Ass PO 2011] 2010]

A. Fertilizer A. Those who own land and cultivate
B. Kerosene B. Those who lease in land and cultivate
C. LPG C. Those who cultivate the land of others
D. Only A
D. Those who own land and lease in from
E. Only B
others or institutions and cultivate
F. Only C
14. The ideal average NPK ratio aggregated
G. Only A & B for the country as a whole is :
H. AII A, B & C A. 4 : 2 : 1
11. Which type of forests does the following B. 2 : 4 : 1
picture show C. 4 : 1 : 2
D. 4 : 3 : 2
15. Who is regarded as the founder of the sci-

entific Socialism? [NDA 1993]
A. Rousseau
B. Karl Marx
C. Engels
A. Temperate forest
D. Lenin
B. Boreal forest
C. Tropical forest 16. GDR means:
D. None of the above A. ’gross domestic ratio’ which is a macro

aggregate
12. NAFED is concerned with: B. ’global depository receipt’ which is the
1. promotion of inter-state and export mechanism to raise funds from interna-
trade of farm produce tional market
2. import of foodgrains for buffer C. ’global development range’ which has
stocking and public distribution been set up by UNO for developing coun-
3. marketing of eggs and poultry’ at tries
national level
D. ’geographically developed regions’ as
4. movement of consumer goods from
defined by the UNDP
surplus areas to scarcity areas
A. 1 and 2 17. Which of the following statements are cor-
rect?
B. 1, 2 and 3
1. Aircrafts of Air India plying between
C. 3 and 4
Sri Lanka and Bangladesh are a part’
D. 1, 3 and 4 of domestic territory of India

2. Premises of the German embassy in 22. Consider the following statements:

Pakistan is international territory 1. The agreement on South Asian Free
3. A Japanese working for the WHO of- Trade Area (SAFTA)came into effect
fice located at New Delhi is a normal from 1st December, 2005.
resident of Japan 2. As per SAFTA agreement terms, In-
4. An American teacher employed in dia, Pakistan and Sri Lanka have
the American School in India for to decrease their custom duties to
three years is a normal resident of the level of 0 to 5 percent by the
India
NARAYAN CHANGDER
year 2013. Which of the state-
A. 1 and 2 ments given above is/are correct?
B. 3 and 4 [IAS 2006]
C. 1 and 3 A. 1 only
D. 2 and 4 B. 2 only
C. Both 1 and 2
18. Which state produces maximum Soy-
abean? D. Neither 1nor 2
A. Madhya Pradesh 23. Which one of the following is different
B. Uttar Pradesh from the others from the point of view of
ownership? [UP PCS 2011]
C. Bihar
A. LIC Policy
D. Rajasthan
B. Bank Fixed Deposit
19. What percentage of country’s demand for
C. Kisan Vikas Patra
natural rubber is met by indigenous pro-
duction: D. Debenture of a Company
A. 80% 24. Consider the following statements: [IAS
B. 97% 2004]
C. 86% 1. Regarding the procurement of food-
grains, Government of India follows
D. 100%
a procurement target rather than an
20. Which one of the following countries is not open-ended procurement policy
a member of ASEAN? [IAS 2006] 2. Government of India announces min-
imum support price only for cereals
A. Vietnam
3. For distribution under Targeted Pub-
B. Brunei Darussalam lic Distribution System (TPDS)wheat
C. Bangladesh and rice are issued by the Govern-
D. Myanmar ment of India at uniform central is-
sue prices to the States/Union Ter-
21. From the view of International economy, ritories Which of the statements
Third World implies: given above is/are correct?
A. the developed countries A. 1and 2
B. the developing countries B. 2 only
C. block led by U.S.A., U.K. etc. C. 1and 3
D. None of these D. 3 only

25. The ’Uruguay Round’ negotiations re- A. 1 only

sulted in the establishment of: [Asstt B. 1 and 4 only
Comm 2008]

C. 2 and 3 only
A. NATO
D. 1, 2, 3 and 4
B. OECD
C. WHO 30. Which State produces maximum pulses in
the country?
D. WTO
A. Madhya Pradesh
26. In which one of the following countries is
B. Uttar Pradesh
Rupee its currency? [IAS 2003]
A. Bhutan C. Odisha
B. Malaysia D. Maharashtra
C. Maldives 31. More than one-third of the crude steel pro-

D. Seychelles duction of the world comes from [UP PCS
2011]
27. Basel II relates to which one of the follow- A. China
ing? [IAS 2007]
B. Japan
A. International standards for safety in
civil aviation C. Russia
B. Measures against cyber crimes D. U.S.A.
C. Measures against drug abuse by 32. Which of the following statements regard-
sportspersons ing wheat production is/a reincorrect?
D. International standards for measuring 1. Maximum area under wheat is in Ut-
the adequacy of a bank’s capital tar Pradesh
28. Select the layers of a forest: 2. Maximum production is in Uttar
Pradesh
A. Understory 3. Highest productivity is from
B. Middle story Haryana
C. Overstory A. 1 and 3
D. none of above B. 2 only
29. Microfinance is the provision of financial C. 1 and 2

services to people of low-income groups. D. 3 only
This includes both the consumers and the
self-employed. The service/services ren- 33. In which year was ’Rajiv Gandlii Grameen
dered under micro-finance is/are: Vidyutikaran Yojana’ launched? [Asstt
Comm 2008]
1. Credit facilities
2. Savings facilities A. 2004
3. Insurance facilities B. 2005
4. Fund Transfer facilities Select the
correct answer using the codes C. 2006
given below the lists: [CSAT 2011] D. 2007

34. Which’ day is celebrated as ’National Con- A. 1 and 3

sumer Right Day? B. 1, 2 and 3
A. 24th September C. 2, 3 and 4
B. 24th October D. 2 and 4
C. 24th November 39. Consider the following statements : [IAS
D. 24th December 2004] India continues to be dependent
on imports to meet the requirement of
NARAYAN CHANGDER
35. World Bank is a body: [Asstt Grade oilseeds in the country because:
1994] 1. farmers prefer to grow food grains
A. of non-official, generous individuals with highly remunerative support
B. that controls worldwide foreign ex- prices
change operations 2. most of the cultivation of oilseed
crops continues to be dependent on
C. of major banks operating in different rainfall
countries 3. oils from the seeds of tree origin and
D. that gives aid to developing countries rice bran have remained unexploited
4. it is far cheaper to import oilseeds
36. Labour legislations in India have an im- than to cultivate the oilseed crops
portant dimension of protection of women Which of the statements given
from exploitation. Some special provi- above are correct?
sions are made for women in the work A. 1 and 2
place. Which of the following is NOT one
such special provision? [Punjab & Sindh B. 1, 2 and 3
Bank 2011] C. 3 and 4
A. Equal pay for work of equal value D. 1, 2, 3 and 4
B. Maternity protection 40. Air is a precious natural resource that is a
C. Creche facility at the work place for in- mixture of
fants A. gases
D. No night shifts B. food items
E. Cooked meals during day shifts to be C. juices
provided by the employer D. powdery substances
37. Acid rain is an effect of air pollution 41. India is regarded as a country with “De-
mographic Dividend”. This is due to [CSAT
A. True 2011]
B. False A. Its high population in the age group be-
low 15 years
38. The Green Revolution has led to :
B. Its high population in the age group of
1. spurt in all foodgrains production 15-64 years
2. increase in regional inequalities
3. reduction in inter-personal inequali- C. Its high population in the age group
ties within a region above 65 years
4. good production in wheat D. Its high total population

42. What is the best way to conserve our non- C. Textile Industry
renewable resources? D. Only A

A. Make sure you use non-renewable re-
E. Only B
sources as much as possible
F. Only C
B. Reduce dependency on non-renewable
resources G. All A, B & C
C. Make posters on using non-renewable H. None of these
resources and display them
47. The per capita foodgrains consumption:
D. none of above
A. has fallen steadily over the years
43. Select the examples of non-renewable re-
B. has fluctuated
sources
C. has remained stagnant
A. Coal
B. Water D. has risen very slowly
C. Fossil fuels 48. Select all the examples of natural re-

D. Petroleum sources
E. Forest A. Air
B. Water
44. Gadgil Formula refers to the allocation of:
C. Soil
A. market borrowings between the
States D. Wood
B. Central Plan assistance between the E. Coal
States
49. Why is agricultural productivity in India
C. tax proceeds between the States
low both on the basis of per worker and
D. foreign aid between the Centre and per hectare of land?
States
1. pressure of population on land
45. Which neighbouring country has objections 2. large landholdings in few hands
on Indian Baglihar Hydro-electric Project? 3. high capital base
4. dominance of subsistence farming
A. Nepal
A. 1, 2 and 3
B. Bhutan
B. 2, 3 and 4
C. Bangladesh
C. 1, 3 and 4
D. Pakistan
D. 1 and 4
46. Many a times we read about the priority
sector in newspapers. Which of the follow- 50. Select the uses of forests
ing is/are considered segment(s) of Prior-
A. Timber
ity Sector in India? [Punjab & Sindh Bank
2011] B. Metal
A. Agriculture C. Spices
B. Small Scale Industry D. Paper

51. The book Wealth of Nations’ was written 56. A natural resource is
by: A. something found in nature that is use-
A. Eric Roll less to people
B. J.M. Keynes B. something found in nature that is very
C. Adam Smith useful to people
D. Harold Laski C. something that is man-made

D. NONE OF THE ABOVE
NARAYAN CHANGDER
52. Buffer stocks of foodgrains have helped
the Government to achieve all but one of 57. India is said to be in the second stage of
the following: the demographic transition because:
A. solve food problem A. both birth and death rates are high
B. maintain Public Distribution System B. birth rate is high but -death rate is de-
C. implement employment generation clining due to improvement in healthy ser-
programmes vices
D. provide balanced diet to masses C. death rates and birth rates are declin-
ing sharply
53. In India the co-operative movement was
initiated in the sector of : D. none of the above
A. farming 58. The area under cultivation is declining fast

B. consumer goods production in the case of:
C. agricultural credit A. cotton
D. marketing of agricultural products B. sugarcane

C. jute
54. With reference to Union Government,
which one of the following undertake the D. tea
country-wide Economic Census? [Asstt
Comm 2008] 59. What is Green Gold?
A. Department of Expenditure A. Tea
B. The National Sample Organization B. Coffee
C. Planning Commission C. Gold

D. The Central Statistical Organization D. Rice
55. In which one of the following activities per- 60. In which one of the following countries,
centage share of cooperative sector is the the rate of Income Tax is highest? [Pun-
highest? [Corporation Bank PO 2011] jab & Sindh Bank 2011]
A. Agricultural Credit disbursement A. US
B. Sugar production B. China
C. Wheat procurement C. Japan
D. Fertilizer distribution D. UK
E. Handlooms E. France

61. forests are also called TAIGA 4. Organization for Economic Coopera-
A. Boreal tion and Development (OECD) Select
the correct answer using the code

B. Tropical given below: [IAS 2008]
C. Temperate A. 1 and 3 only
D. Other B. 2 and 4 only
62. ’Conditionality’ of an IMF loan to a mem- C. 1, 2 and 3 only
ber country stands for: [Asstt Grade D. 1, 2, 3 and 4
1994]
66. The increase in agricultural production is
A. interest and repayment terms of the
due to:
loan
1. increase in area under crops
B. an assessment of the credit worthi-
2. improvement in yield
ness of the borrower
3. improvement in cropping pattern
C. schedule of disbursement of loan in- 4. effective implementation of land re-
stallments forms
D. the policy steps which the borrower A. 1 and 3
country must take B. 1 and
63. India is self-sufficient in production of C. 1, 2 and 3
which of the following commodities? [RBI D. 1, 2, 3 and 4
A. Edible oil 67. Select the advantages of sunlight
B. Milk A. Gives us vitamin D
C. Pulses B. Causes skin cancer

C. Gives us heat
D. Natural gas
D. Gives us light
E. All of these
68. Ever greening of patents is done by [CDS
64. In India, which of the following is reg-
2011]
ulated by the Forward Markets Commis-
sion? [IAS 2010] A. citing another use of the same product
A. Currency Futures Trading
B. citing another process of forming the
B. Commodities Futures Trading
same product
C. Equity Futures Trading
C. applying for extension of patent term
D. Both Commodities Futures and Finan- D. citing another product with same use
cial Futures Trading
69. Tarapore Committee was associated with
65. India is a member of which of the follow- which one of the following? [IAS 2007]
ing?
A. Special Economic Zones
1. Asian Development Bank
2. Asia-Pacific Economic Cooperation B. Fuller capital account convertibility
3. Colombo Plan C. Foreign exchange reserves

D. Effect of oil-prices on the Indian econ- 1. high birth rate with high death rate
omy 2. birth rate with low death rate
3. high birth rate with low death rate
70. India’s economic zone extends ...... miles
off its coast: A. 1, 2, 3
A. 100 B. 1, 3, 2
B. 150 C. 3, 1, 2
C. 200 D. 2, 1, 3
NARAYAN CHANGDER
D. 250
76. Which State stands first in the length of
71. Which of the following is NOT a non- roads in the country?
renewable resource?
A. Maharashtra
A. Coal
B. Uttar Pradesh
B. Water
C. Madhya Pradesh
C. Natural gas
D. Petroleum D. Rajasthan
72. Ad Valorem means: 77. Who among the following have been the
Union Finance Ministers of India?
A. according to value
B. according to weight 1. V. P. Singh
2. R. Venkataraman
C. according to size 3. Y. B. Chavan
D. according to advertisement costs 4. Pranab Mukherjee Select the correct
answer using the code given below:
73. The ’Year of Great Divide’ refers to: [IAS 2007]
A. rapid growth rate in population after
A. 1, 2 and 3 only
1921
B. the declining sex ratio after 1921 B. 1, 3 and 4 only
C. the slow-down in death rate after 1921 C. 2 and 4 only

D. 1, 2, 3 and 4
D. all the above
78. Which of the following statements regard-
74. What does S & P 500 relate to? [IAS ing Indian agriculture is correct?
2008]
A. It contributes nearly 25 per cent of the
A. Supercomputer GDP
B. A new technique in e-business B. India has the least area in the world
C. A new technique in bridge building under pulse crops
D. An index of stocks of large companies C. The share of foodgrains in gross
cropped area has increased since inde-
75. Which arrangement of the following would
pendence
show the correct sequence of demographic
transition as typically associated with eco- D. Agriculture accounts for twenty per
nomic development? cent of India’s exports

1.9 Sectors Of the Indian Economy 185
79. We can live without air but we need water B. Mustard

A. False, we can live without water but C. Rapeseed

we need air D. Sunflower
B. False, we can live without both
82. Low productivity of agriculture in India is
C. False, we need both not caused by:
D. True A. inadequate availability of inputs
80. The main source of fund for the National B. subdivision of land holdings
Highway Authority of India is [UP PCS C. less area under cultivation
2011] D. poor finance facilities
A. Cess
83. A person returning from abroad can re-
B. Foreign assistance tain foreign currency up to what period?
C. Market borrowings [Haryana Gr Bank PO 2011]
D. Budgetary support Government of A. 60 days
Union B. 30 days
81. Which of the following gives the maximum C. 90 days
production of edible oil? D. 180 days
A. Groundnut E. There is no such restriction
1.9 Sectors Of the Indian Economy

1. What will happen if the government fails goods.
to provide hundred days employment un- A. tertiary
der NREGA
B. agricultural
A. Unemployment allowance will be not
given 4. Give two examples of secondary sector
B. Unemployment allowance will be given A. Manufacturing of car
C. Both a and b B. Manufacturing of chair
D. None of the above C. Both a and b
2. Which one of the following countries has
the largest size of illiterate population in 5. Which is the largest employer of people in
the world? India?
A. India A. Private sector
B. Japan B. public sector
C. France C. Manufacturing sector
D. Germany D. Primary sector
3. Fill in the blanks using the correct option 6. Manufacturing sector is associated with
Workers in the sector do not produce A. Primary Sector

B. Tertiary Sector 12. Under employment occurs when people:

C. Secondary Sector A. do not want to work
D. Private Sector B. our working in a lasy manner
C. our working less than what they are ca-
7. The kind of underemployment is hidden in pable of doing
contrast to someone who does not have a
D. our not paid for their work
job is clearly visible as unemployed. It is
also called as
NARAYAN CHANGDER
13. What are the three sectors of Indian econ-
A. Seasonal Unemployment omy?
B. Structural Unemployment A. Primary, Secondary and Industrial sec-

tor.
C. Disguised Unemployment
B. Primary, Tertiary and Service sector.
D. Frictional Unemployment
C. Primary, Secondary and Tertiary sec-
tor.
8. The sector that involves the production of
goods by exploiting natural resources is D. none of above
called as?
14. Over the past decade, certain new services
A. Secondary sector. such as and have become essential.
B. Primary sector. A. Information and Machinery
C. Tertiary sector. B. Information and Communication
D. Service sector. C. Communication and professional train-
ing
9. A situation in which more persons are em- D. Both B & C
ployed on a job than are optimally required
is: 15. What is public sector?
A. Structural unemployment A. assets owned and services provided
by companies for people
B. Disguised unemployment
B. assets owned and services provided
C. Cyclical unemployment for making profit
D. Seasonal unemployment C. assets owned and services provided
by the government
10. find the odd one out
D. assets owned and services provided
A. engineering by group of workers forming an associa-
B. welding tion
C. gem cutting 16. Which sector employs a mojority of people

in India?
D. driving
A. Agriculture sector
11. Employment opportunities are less in B. Industrial sector
A. Organised sector C. Services sector
B. Unorganised sector D. all of the above

17. Factories producing goods will come under 22. Assertion:GDP shows how big an economy
which sector is. Reason:GDP is the value of all goods
and services produced within the domestic

A. Primary
territory of a country in a year.
B. Secondary
A. Both assertion & reason are true &
C. Tertiary reason is the correct explanation of asser-
D. None of the above tion.
B. Both assertion & reason are true but
18. Which sector has grown the most over reason is not the correct explanation of
forty years? assertion.
A. Primary C. Assertion is true but reason is false.
B. Tertiary D. Assertion is false but reason is true.
C. Secondary E. Both assertion & reason are false.
D. Equal production
23. Assertion:Id India, the primary sector is
19. Choose the correct meaning of organised the largest employer.Reason:The demand
sector: for services has increased enormously.
A. It covers those enterprises where the A. Both assertion & reason are true &
terms of employment are regular. reason is the correct explanation of asser-
tion.
ment. B. Both assertion & reason are true but
reason is not the correct explanation of
C. Jobs are not regular. assertion.
D. It provides low salaries. C. Assertion is true but reason is false.
20. In the years tertiary sector replaced D. Both assertion & reason are false.
the primary sector as the largest sec-
24. NREGA STANDS FOR
tor in India.
A. NATIONAL REAL EMPLOYMENT GUAR-
A. 2012-13; Employing
ANTEE ACT OF 2005
B. 2013-14; Employing
B. NATIONAL RURAL EMPLOYMENT
C. 1973-74; Producing GUARANTEE ACT OF 2005
D. 2013-14; Producing C. NATIONAL RURAL EMPLOYMENT
GUARANTEE ACT OF 2006
21. Which of the following are synonyms for
D. none of above
“developed countries”?
A. Rich world 25. Which of the following types of activities
are covered in the secondary sector?
B. The have nots
A. Goods are produced by exploiting nat-
C. The north
ural resources.
D. Fist world
B. It generates services rather than
E. Low income goods.

C. Natural products are changed through 30. Which of the following activities does not
manufacturing. belong to the primary sector?
D. It includes agriculture, forestry and A. Fishing
dairy. B. Banking
26. replaces the traditional practices of In- C. Mining
dian agricultural sector D. Forestry
A. World War
NARAYAN CHANGDER
31. Agriculture, Mining, Fishing, Forestry,
B. British Rule Dairy etc. are some examples of
C. Industrialization A. Primary sector
D. Green Revolution B. Secondary sector

C. Tertiary sector
27. When was NREGA implemented
D. none of above
A. 2004
32. THE ECONOMY IS CLASSIFIED INTO PUB-
B. 2005 LIC AN PRIVATE SECTORS ON THE BASIS
C. 2008 OF:
D. 2009 A. EMPLOYMENT CONDITIONS
B. THE NATURE OF ECONOMIC ACTIVITY
28. Production of Sugar from Sugarcane is in-
C. OWNERSHIP OF ENTERPRISES
cluded in this Sector
D. THE NO. OF WORKERS EMPLOYED IN
THE ENTERPRISE
33. Which of the following is included in ter-

tiary sector?
A. ATM booths
B. Call centres
C. Internet cafe
A. Industrial
D. All of them
B. Primary
C. Service 34. Who measures the GDP of our country
A. Government
D. none of above
B. GDP commission
29. In developed countries, the sector has C. Central govt ministry
become the most important in terms of to-
tal production. D. Finance ministry
A. primary 35. Which of the following type of unemploy-

ment is hidden in contrast to someone who
B. tertiary
does not have a job and is clearly visible
C. secondary as unemployed?
D. none of above A. Underemployed

B. Disguised unemployed C. National Product

C. Uneremployed D. Gross National Product

D. Both A and B 41. MGNREGA has guaranteed days of em-
36. Railways are the example of which sec- ployment in a year in may districts of In-
tor? dia.
A. Private sector A. 200 days
B. Public sector B. 100 days
C. Organised sector C. 30 days
D. None of these D. 60 days
37. what is the work period of workers work- 42. In a developing country the government
ing in the unorganized sector compared to has to take responsibility for provision of
the organized sector?
A. Day and night A. Basic Services
B. Fixed no. of hours B. Secondary Services
C. No fixed time C. IT Services
D. No. of hours the employer says D. Services
38. Iain Buchanan Orthodontist Practice is in 43. Storage is included in this Sector
what sector?
A. Private
B. Public A. Agriculture and Related
C. Third B. Service
D. none of above C. Industrial
D. none of above
39. What is the tertiary sector also called?
A. Private sector 44. Which one of the following does not be-
long to the tertiary sector?
B. Public sector
A. Banking
C. Industrial sector
B. Trade
D. None of these
C. Transport
40. The value of all final goods and services
produced within a country during a partic- D. Fishing
ular year is called as 45. GDP I is the sum of
A. Gross Domestic Product A. All the goods and services produced in
B. Net Domestic Product a year

B. All the final goods and services pro-

duced in a year
C. All the intermediate goods produced in
a year
D. all the services produced in a year
46. Assertion:workers do not have the right
NARAYAN CHANGDER
to decide the time when they want
to leave.Reason:The MGNREGA only pro-
vides 100 days for work. A. Primary (Extraction)
B. Secondary (Production)
A. (A) truly explains (R) and both are true
C. Tertiary (Services)
B. (A) does not truly explain (R) and both
are true D. none of above
C. (A) is false and (R) is true 50. WHICH OF THESE CAN BE CONSIDERED AS
BASIC SERVICES?
D. Both are false
A. GROWING O HEAT
47. Assertion:In India, the tertiary sector is B. TRANSPORT
not the smallest employer.Reason:The de-
C. STORAGE
mand for services has decreased drasti-
cally. D. POLICE STATION
A. Assertion and Reason are true and rea- 51. Group of sectors on the basis of economic
son is the correct explanation for the as- activities
sertion
A. Primary, Secondary and Tertiary sec-
B. Assertion is true but Reason is false tors
C. Assertion and reason are true but rea- B. Organised and Unorganised sectors
son is not the correct explanation for the C. Public and Private sectors
Assertion
D. none of above
D. Assertion and Reason are both false
52. What is the tertiary sector known as?
E. Assertion is false but Reason is true
A. Industrial sector
48. In our country, MNREGA 2005 aims to pro- B. Service sector
vide to all those who are able to, and are C. Quaternary sector
willing to work of, a minimum of-
D. none of above
A. 200 days of employment in a year
53. Which of the following types of activities
B. 100 days of employment in a year are covered in the secondary sector?
C. 300 days of employment in a year A. It generates services rather than
D. 365 days of employment in a year goods.
B. Natural products are changed through
49. Miner manufacturing.

C. Goods are produced by exploiting nat- 57. Which options are not the correct ones for
ural resources. the given statement?Industrial or the man-
ufacturing sector is the secondary sector

D. It includes agriculture, forestry and
activity as
dairy.
A. It converts the raw material from the
54. Which sector is also called as agriculture primary sector to products consumable by
and related sector? humans
A. Tertiary sector B. It goes through various stages of
transformation in factories, mills or in
B. Secondary sector workshop
C. Primary sector C. It significantly contributes to the GDP
D. None of these D. It absorbs part of the workforce into
its fold from the primary and other sec-
55. Employment figures of a country are based tors.
on data collected from 5-yearly survey on
58. Which is the correct definition of a devel-
employment and unemployment
oped country?
A. NSSO-National Sample Survey Organi- A. A country with a well established econ-
sation omy and infrastructure. Typically with a
B. NREGA 2005-National Rural Employ- high HDI
ment Guarantee Act, 2005 B. A country with a well established econ-
C. ILO-International Labour Organisation omy and infrastructure. Typically with a
low HDI
D. Census of India
C. A country without a well established
economy and infrastructure. Typically
56. Assertion:The initial stages of develop-
with a high HDI
ment had secondary sector as the most im-
portant sector Reason:In the early 19th D. A country with a poorly established
centuries, majority of people were in- economy but well established infrastruc-
dulged in manufacturing, crafts, trading, ture. Typically with a high HDI
etc
59. MTNL is an example of Entrprise
A. Both Assertion and Reason are true A. Public sector
and the Reason is the correct explanation
B. Private sector
of the Assertion
C. Both public sector and private sector
B. Both Assertion and Reason are true
but the Reason is not the correct explana- D. Public private partnership
tion of the Assertion 60. What is the official currency of India?
C. Assertion is true but the Reason is
false
D. Assertion is false but the Reason is
true
E. Both the Assertion and the Reason are
false

A. Pound 65. Why did the Secondary sector later be-

come the most important sector?
B. Dollar
A. 1. People began to use many more
C. Peso
goods that were produced in factories at
D. Rupee cheap rates.
B. 2.Employment increased
61. Underemployment occurs when people
C. 3.Agriculture declined
A. don’t want to wok
NARAYAN CHANGDER
D. 4.both 1 and 2
B. are working in a lazy manner
66. Animal Husbandry is a part of
C. are working less than what they are ca-
pable of doing A. primary sector
D. are not paid for their work B. secondary sector
C. tertiary sector
62. The sum total of production of all goods
and services in the three sectors are com- D. none of these
binedly
67. When the skills of a labour force are not
A. GDP utilized to their full capacity it is known as
B. NDP A. Employment
C. GNI B. Labour Effort
D. NI C. Seasonal Unemployment
D. Underemployment
63. Which one is primary occupation?
68. The workers involved in the tertiary sector
A. Basket weaver
jobs are known as?
B. Tailor
A. Purple collar workers
C. Flower cultivator B. White Collar workers
D. Milk vendor C. Black collar workers
64. Assertion:Reliance industries is a D. none of above
privately-owned firm.Reason:Government
69. Which sector has replaced the sector
is a major stakeholder is reliance indus-
and became the largest producing sector
tries.
?
A. Primary, secondary
reason is the correct explanation of asser-
tion. B. Secondary, tertiary
B. Both assertion & reason are true but C. Tertiary, primary
reason is not the correct explanation of D. primary, tertiary
assertion.
70. Assertion:When calculating the total value
C. Assertion is true but reason is false.
of goods and services produced in a coun-
D. Both assertion & reason are false. try, the value of all goods and services at

each stage of production should be calcu- 74. Transport of coal to a factory falls under
lated. Reason:In GDP, the value of only which of the following economic sectors?
final goods and services is considered.

A. Primary Sector
A. Both assertion & reason are true & B. Tertiary Sector
tion. C. Prmary sector
B. Both assertion & reason are true but D. Secondary sector

reason is not the correct explanation of 75. “Access by all people at all times to
assertion. enough food for an active, healthy life “
C. Assertion is true but reason is false. is the definition of
D. Assertion is false but reason is true. A. Company Security
E. Both assertion & reason are false. B. Social Security
C. Customer Security
71. The service sector includes activities such
as: D. Food Security
A. agriculture, dairy, fishing and forestry 76. Name one type of classification of the
B. making sugar, gur and bricks economy?
C. transport, communication and banking A. Urban
D. None of these B. Rural

C. Public/private
72. Using sugarcane as raw material, we
make sugar or gur, under what sector does D. state/national
this activity come? 77. Fill in the blanks using the correct option-
A. Primary Cloth is a product.
B. Private A. natural
C. Industrial B. manufactured
D. Tertiary 78. Out of 200 million children in the school
going age group, how many are attending
73. A MAN WORKS AT RESTAURANT ON
schools?
A CONTRACT BASIS AN GETS MEAGRE
SALARY AFTER WORKING THE ENTIRE A. One-fourth
DAY. HE DOESN’T GET ANY HOLIDAYS B. Half
OR PAID LEAVES, RATHER HIS EMPLOYER
C. Two-thirds
DEDUCTS HIS SALARY WHENEVER HE IS
ABSENT FROM HIS WORK. FIND OUT IN D. One-fifth
WHICH OF THE FOLLOWING SECTORS HE
79. Assertion:Mohan is a shopkeeper who
IS WORKING?
pays his taxes on time. He has employed
A. PRIMARY SECTOR two workers Rakesh and Raghu in his
B. ORGANIZED SECTOR shop. He pays them well, however, none
of the workers get any paid leaves in the
C. UNORGANIZED SECTOR year.Reason:Rakesh and Raghu are em-
D. SERVICE SECTOR ployed in unorganized sector.

A. Both assertion & reason are true & C. White collar

reason is the correct explanation of asser- D. none of above
tion.
B. Both assertion & reason are true but 84. Which of the following is not included in
reason is not the correct explanation of tertiary sector?
assertion. A. ATM
C. Assertion is true but reason is false. B. Internet cafe
NARAYAN CHANGDER
D. Both assertion & reason are false. C. Industries
80. A situation in which more persons are em- D. All of them

ployed on a job than are optimally required 85. As the methods of farming changed and
is: the agriculture sector began to prosper,
A. Structural unemployment most of the goods produced were from
the primary sector and most people were
B. Seasonal unemployment
also employed in this sector?
C. Disguised unemployment
A. Synthetic products
D. Cyclic unemployment
B. Involved machines
81. More than percent population of India C. Natural products
ia engaged in agricultural sector
D. Mixed products
A. 60
86. In what ways, Employment can be created
B. 70
for people working in Unorganized Sec-
C. 50 tors.
D. 40 A. Promoting small scale industries
82. Choose the correct sentence from the fol- B. Increasing tourism activities
lowing. C. Support in irrigation and other facili-
A. GDP stands for Gross Dormitory Profit. ties
B. In disguised unemployment, the D. All of the above
labour effort gets doubled 87. A teacher teaching in a school is working
C. The underemployment is clearly hid- in which sector?
den in contrast to someone who is clearly A. organised sector
unemployed hence its called disguised un-
employment. B. primary sector
D. Many people in service sector like C. secondary sector
plumbers, carpenters do not spend the D. unorganised sector
whole day for work but do not earn very
little. 88. Why did the Secondary sector later be-
come the most important sector?
83. People engaged in tertiary sector are A. People began to use many more goods
called that were produced in factories at cheap
A. Red collar rates
B. Blue collar B. Employment increased

C. Agriculture declined C. subject to central bank’s regulations

D. A & B D. none of the above

89. When was MGNREGA launched 94. The following sector is the largest contrib-
A. 2005 utor to GDP?
B. 2003 A. Primary Sector
C. 2004 B. Tertiary Sector
D. 1950 C. Quaternery Sector
90. We classify economic activities into on or- D. Secondary Sector
ganised and unorganised sector on the ba-
sis of 95. Employment in the service sector has
A. nature of activity to the same extent as production.
B. Working conditions A. increased

C. Ownership B. not increased
D. All of the above C. stabilized
91. Which statement is wrong?Mahatma D. none of above

Gandhi National Rural Employment Guar-
antee Act 2005 guarantees 96. The motive of public sector enterprises is:
A. 100 days of work to rural unemployed A. Profit making

in a year B. Entertainment
B. 100 days of work to urban unemployed C. Social welfare and security
in a year
C. Government to provide unemployment
allowances if it fails to provide jobs. 97. Where are the employment and non-
D. It should be the kind of work that employment figures taken from to study
help increasing production from land to be the data?
given the preference under this ACT. A. Real-Time Handbook of Statistics on
92. Rohan is working long hours, gets regular Indian Economy.
salary, gets provident fund.Which sector B. National Statistical Office (NSO)
is he working in?
C. NITI Aayog
A. Organised sector
D. Statistics information Bureau
B. unorganised sector
C. none of the above 98. Which of the following is included in ter-
tiary sector?
D. none of above
A. ATM booths
93. Manufacturing units in unorganised sector
are: B. Call centres
A. not subject to government regulations C. Internet cafe
B. subject to government regulations D. All of them

99. What is the secondary sector? 103. For growth of the cotton plants, we de-
A. production of a good by exploiting nat- pend mainly on
ural resources A. rainfall
B. activities, by themselves, do not pro- B. sunshine and climate
duce a good but they are an aid or support C. option 1 and 2 are correct
for the production process.
D. option 1 and 2 are incorrect
C. activities in which natural products are
NARAYAN CHANGDER
changed into other forms through ways of 104. Communication and banking come under
manufacturing sector.
D. none of above A. Tertiary
B. Primary
100. The sum of production in the three sectors
gives what is called the of a country? C. government
D. unsecure
105. Other Name of primary sector is

B. Related sector
C. Farming sector
D. Agriculture and related sector
106. It is common to see many organised sec-

A. GNP tor enterprises in the unorganised sec-
tor.Why?
B. GPD
A. because of more landless people in ru-
C. GDP ral areas
D. GDD B. because they want to evade taxes
101. Agriculture, dairy farming are activities C. because jobs are not enough
belonging to which of the following sec- D. because the workers are of SC and ST
tors? category
A. Primary 107. Which one of these is not a developed
B. Secondary country?
C. Tertiary
A.
D. Scientific technology
102. Poultry is concerned with

B.
A. Primary sector
B. Secondary Sector
C. Tertiary Sector C.
D. Organised Sector

B. Tourism
D.
C. More food

108. Assertion:Rakesh is an educated and D. Hospitals
skilled worker who earns a high monthly 112. NREGA (National Rural Employment
salary as he is employed in a private bank Guarantee Act of 2005) has guaranteed
in a city. Reason:All services in India are days of employment in a year in many
growing extremely well and each individ- districts of India. What is the correct num-
ual engaged in any kind of tertiary activity ber of days?
earns a high income.
A. (a) 200 days
reason is the correct explanation of asser- B. b) 30 days
tion. C. c)100 days
B. Both assertion & reason are true but D. d) 60 days
assertion. 113. NREGA (National Rural Employment
Guarantee Act of 2005) has guaranteed
C. Assertion is true but reason is false. days of employment in a year in many
D. Assertion is false but reason is true. districts of India. What are the correct
E. Both assertion & reason are false. number of days?
A. 200 days
109. Which of the following is correct about
Gross Domestic Product?(i) Gross domes- B. 100 days
tic product is the average value of fi- C. 30 days
nal goods and services.(ii) Gross domestic D. 60 days
product is the sum of the values of all final
goods and services. 114. Name the sector which continued to be
A. Only (i) the largest employer even in the year
2000
B. Only (ii)
A. Primary sector
C. Both (i) & (ii)
B. Public sector
D. None of them
C. Organised sector
110. In which type of unemployment more peo- D. none of above
ple are employed than required?
A. seasonal unemployment 115. Full form of GDP
B. disguised unemployment A. Gross domestic product
C. educated unemployment B. Gross dominant product
D. all the above C. Gross dominance product

111. When income levels rise, certain sections
of people start demanding many more ser- 116. Who estimates the GDP of Indian econ-
vices like omy?
A. Defence A. CSO

B. NSSO D. Produce a good by exploiting natural

C. IMF resources
D. RBI 121. Find odd man out
117. Identify the correct answer from the A. Post and Telegraph services
alternatives provided.Both Tisco and Re-
B. Village administrative offices
liance Industries are owned by:
C. Educational institute
A. The government
NARAYAN CHANGDER
B. Private company D. Professional trainings
C. A cooperative society 122. Despite having largest contribution in
D. Jointly by private companies and the country’s GDP, tertiary sector is unable to
govt. create enough employment opportunities
because,
118. The criterion for classification could of
many depending on what we desire to find A. Less jobs are created in tertiary sector
out.In dividing the economic activities ac- B. Low Urban population in India
cording to the ‘ nature of activity’ it is clas-
C. Jobs in tertiary sector requires skill
sified into
and expertise
A. public and private sectors
D. All of the Above
B. organised and unorganised sectors
C. primary, secondary and tertiary sec- 123. Fill in the blanks using the correct option-
tors The activities in primary, secondary and
tertiary sectors are
D. all of the above
A. independent
119. THE MONEY VALUE OF ALL FINAL
GOODS AN SERVICES PRODUCED WITHIN B. interdependent
A COUNTRY DURING A PARTICULAR YEAR
IS CALLED: 124. Choose the most appropriate answer.The
sectors are classified into public and pri-
A. GROSS DOMESTIC PRODUCT vate sector on the basis of:
B. NET DOMESTIC PRODUCT A. employment conditions
C. NATIONAL PRODUCT
B. the nature of economic activity
D. PRODUCTION OF SECONDARY SECTOR
C. ownership of enterprises
120. Name one functioning activity of the Ter-
D. number of workers employed in the en-
tiary sector?
terprise
A. Goods that are produced would need
to be transported by trucks or trains and 125. Give any two examples of primary activ-
then sold in wholesale and retail shops ities?
B. This sector gradually became associ- A. Animal rearing and lumbering
ated with the different kinds of industries
B. Making cars
C. Activities in which natural products
C. Manufacturing off chair
are changed into other forms through
ways of manufacturing D. None of the above

126. If in a country primary activity is the 131. Group of sectors on the basis of owner-
most important economic activity then the ship
country is likely to be

A. Primary, secondary and tertiary sec-
A. Developed tors
B. Developing
B. public and private sectors
C. Under developed
C. Organised and unorganised sectors
D. none of above
127. Which of the following examples does
not fall under unorganized sector? 132. Which sector has grown the most over
A. A farmer irrigating his field. forty years?
B. A daily wage labourer working for a A. Primary
contractor.
B. Secondary
C. A doctor in a hospital treating a pa-
tient. C. Tertiary
D. A handloom weaver working on a loom D. Private
in her house.
133. What is HDI?
128. Which indicators would you want to use
when looking to measure the standard of A. Human Development Index
healthcare received in a country?
B. Huge Donut Industry
A. Number of people per doctor
C. High Development Industry
B. % of qualified doctors
C. Current health Expenditure D. Highly Dubious Imagination
D. GDP Per Capita
134. Those activities, by themselves, do not
129. NREGA (National Rural Employment produce a good but they are an aid or sup-
Guarantee Act of 2005) has guaranteed port for the production process, are called
days of employment in a year in many
districts of India. What are the correct A. Primary
number of days?
A. 200 B. Private
B. 100 C. Industrial
C. 300 D. Tertiary
D. 150
135. The 2nd shift in the sector’s imporatance
130. Which one is the unorganized activity? was
A. A teacher taking class in a school A. Primary to secondary
B. A doctor in a hospital treating a patient
B. Secondary to tertiary
C. A farmer irrigating his field
C. Tertiary to secondary
D. A factory worker going to work in a big
factory D. none of above

136. Human Development Index is not related B. when people are employed but with
to less pay and perks
A. Life Expectancy C. when people are made to work less
B. Per Capita Income than their potential
C. Gross Domestic Product D. It is a hidden condition compared to
the more visible ‘not employed’ or not
D. Education
holding a job at all.
137. Assertion:Leela works five days a week,
NARAYAN CHANGDER
receives her income on the last day of each 141. Primary sector is related to
month and gets medical facilities from her A. agriculture
firm. Reason:Leela is working in orga-
B. dairy, forestry
nized sector.
C. fishing, mining
A. Both assertion & reason are true and
reason is the correct explanation of asser- D. all the above
tion.
142. For how many days, MGNREGA give job
reason is not the correct explanation of A. 200 days per year
assertion. B. 365 days per year
C. Assertion is true but reason is false. C. 100 days per year
D. Assertion is false but reason is true. D. 30 days per month
E. Both assertion & reason are false.
143. what is the full form of (TISCO) and
138. Which of the following is a public sector (RIL)?
enterprise?
A. Tata Iron and Steel Company Limited
A. TISCO
B. Reliance Industries Limited
B. Reliance Industry
C. Tata Steel and Iron Company Limited
C. Bajaj Auto
D. Tata and Reliance Steel Company Lim-
D. SAIL
ited
139. The sector in which the productive units
are owned, maintained and managed by 144. Which of the following statement is not
the government are known as which of the true?
following? A. it is the duty of the government to take
A. Public sector care of poorest and most ignored regions
of the country.
B. Government sector
B. it is the duty of the government to sup-
C. All of the above
port the farmers
C. it is the duty of the government to build
140. Choose the correct options:Underemployment dams, harbours, roads etc
and disguised unemployment are the same D. it is the duty of the government to pro-
when vide all the services free of cost to all the
A. when people are unemployed people of the country.

145. When income levels rise, certain sections C. Assertion is true but the Reason is
of people start demanding many more ser- false
vices like

A. More food true
B. Hospitals E. Both the Assertion and Reason are
C. Defense false
D. Tourism 150. Which sector has the largest contribution

in GDP?
146. What is meant by GDP?
A. Gross Dairy Product
B. Industrial sector
B. Gross Domestic Product
C. Service sector
C. Great Development Project
D. Manufacturing sector
D. Great Domestic Product
151. Which sector is represented in the picture
147. Choose the inCORRECT sentence from the
following.
A. In the public sector the government
owns majority of the assets
B. Private sector is more profitable than
the public sector
C. Artisans include Goldsmiths, spinner,
farmers and plumbers A. Service Sector
D. Protection and support of the unorga- B. Agricultural sector
nized sector is necessary for both eco-
C. Organised Sector
nomic and social development.
D. Unorganized sector
148. Life insurance is an activity of the
152. The erstwhile Planning Commission is
A. Primary Sector
known as
B. Secondary Sector
A. Neeti Aayog
C. Tertiary Sector
B. Niti Aayog
D. Private Sector
C. NITI Aayog
149. Assertion:In India, the primary sector is D. NEETI Aayog
the largest employer. Reason:The demand
for services has increased enormously. 153. Choose the incorrect sentence from the
A. Assertion and Reason are true and the following.
Reason is the correct explanation of the A. Organized sector job employers have
Assertion to follow many acts such as maximum
B. Assertion and Reason are true but the wages act, workshops act etc.
Reason is not the correct explanation of B. Unorganized sector is largely outside
the Assertion the control of governments.

C. Those who are employed on their own 160. Economic growth can be measured by
without restriction are part of organized A. The CPI
sector.
B. The CBI
D. Kamal is Kanta’s Neighbour.
C. GDP
D. MPC
A. Private Sector 161. Which one of these is an example of in-
NARAYAN CHANGDER
B. Public Sector termediate goods?
C. Organised Sector A. Woven basket
D. Tertiary Sector B. Biscuits

C. Wheat flour
155. We depend on biological process of the
animals and availability of fodder for dairy D. Wooden chair
farming.
162. Which of the following option is not re-
A. True lated to the given statement?Cultivation
B. False of cotton is a primary sector activity be-
cause
156. The task of measuring GDP is undertaken
by the A. it provides raw material to the textile
industry, a secondary sector activity.
A. State Government
B. the making of cotton is partially de-
B. Central Government pended on natural factors like rain, sun-
C. Provincial Government shine, soil, etc
D. All of the above C. Cotton growing falls under agriculture,
that is an activity which exploits natural re-
157. MGNREGA 2005 has been implemented
sources of gifts of nature.
in districts of India
D. It is the most important sector con-
A. 666
tributing to the country’s GDP
B. 625
163. When we produce a good by exploiting
C. 630
natural resources it is called ?
D. 509
A. tertiary
158. Government owns most of the assets and B. primary
C. secondary
A. Public Sector
D. none of above
B. Private Sector
164. The sector that covers activities in which
159. Who carries economic activities?
natural products are changed into finished
A. individuals goods by manufacturing process is called
B. firms as?
C. government A. Secondary sector.
D. all the above B. Industrial sector.

C. All of these. 170. When we produce a good by exploiting

D. none of above natural resources, it is an activity of the:

165. How many sectors are there A. Secondary sector
A. 2 B. Tertiary sector
B. 3 C. Primary sector
C. 4
D. Organised sector
D. 5
166. Which one of the following economic ac- 171. NREGA (National Rural Employment
tivities is not in the tertiary sector? Guarantee Act of 2005) has guaranteed
A. Banking
districts of India. What is the correct num-
B. Bee keeping ber of days?
C. Teaching
A. 45
D. Working in a call centre
B. 40
167. Tertiary sector has grown over past few
decades because and have become C. 100
important and essential D. 250
A. Information and communication tech-
nology 172. Match the following.
B. Information and Education sector
C. Communication and transportation
D. Education and Health sector
168. Which of the following industry refers to
those industries which require huge infras-
tructure, man power and have influx of
capital assets
A. 1.-(a), 2.-(c), 3.-(d), 4.-(b), 5.-(e)
A. Primary Industry
B. Genetic Industry B. 1.-(b), 2.-(a), 3.-(c), 4.-(e), 5.-(d)
C. Large Scale Industry C. 1.-(e), 2.-(b), 3.-(c), 4.-(a), 5.-(d)
D. Service Industry D. 1.-(d), 2.-(c), 3.-(e), 4.-(a), 5.-(b)
169. As per NREGA 2005 (National Rural Em-
ployment Guarantee Act 2005) the num- 173. Which of the following sectors is the
ber of days of employment guaranteed by largest employer in India?
government is
A. Primary Sector
A. 100 days
B. Secondary Sector
B. 80 days
C. 150 days C. Tertiary Sector
D. 120 days D. IT Sector

174. Assertion:Rakesh is an educated and C. using cotton fiber from the plant
skilled worker who earns a high monthly D. Selling agricultural products in the
salary as he is employed in a private bank market
in a city.Reason:All service sectors in In-
dia are growing extremely well and each 179. In which sector there is no provision for
individual engaged in any kind of tertiary overtime, paid leave, holidays etc.
activity earns a high income. A. Organised sector
A. Both assertion & reason are true & B. Public sector
NARAYAN CHANGDER
C. Unorganised sector
tion.
D. Primary sector
reason is not the correct explanation of 180. In the tertiary sector
assertion. A. we can find health services, transports
C. Assertion is true but reason is false. and raw materials
D. Both assertion & reason are false. B. we can find health services, trans-
ports, emergency services
175. Manish is preparing to join Google as
C. we can find transports and lumberjack
software engineer which of the following
might be wrong about him?
D. none of above
A. He will work in tertiary sector
B. He will work in unorganized sector 181. In India in 1973-74, the two sectors that
significantly grew together were
C. He will work in private sector
A. Primary and secondary
D. He will work in organized sector
B. Primary and Tertiary
176. Total no jobs that can be made in educa- C. Secondary and Tertiary
tion sector
D. none of above
A. 20 lakh
182. Identify the correct answer from the
B. 30 lakh alternatives provided.Both Tisco and Re-
C. 35 lakh liance Industries are owned by:
D. 20 crore A. The government
B. Private company
177. Pot maker belongs to which sector
C. A cooperative society
A. Primary sector
D. Jointly by private companies and the
B. Secondary sector govt.
C. Tertiary sector
183. Which of the following is also known as
D. none of above disguised employment?
178. Which activities come under the agricul- A. Over-employment
ture and related sectors? B. Factory employment
A. dairy C. Under-employment
B. mineral excavation D. Unemployment

184. The service sector includes activities such 188. The MGNREGA implemented in
as
A. 2004

A. agriculture, dairy, fishing and forestry
B. 2005
B. making sugar, gur and bricks
C. 2006
C. transport, communication and banking
D. 2007
D. none of these
189. Mining is an activity under
185. Where will you find the disguised unem-
ployment most? Select the correct option A. Primary Sector
from those given below: B. Secondary sector
A. Among agricultural workers working C. Tertiary sector
for small farm lands
D. All of these
B. Among part-time industrial workers
C. In most of the government offices 190. Manufacturing sector is associated with
D. In big private companies A. primary sector
B. secondary sector
186. Assertion:In India, the tertiary sector is
not the smallest employer. Reason:The C. tertiary sector
demand for services has decreased dras- D. private sector
tically.
A. Assertion and Reason are true and rea- 191. Which of the following economic activity
son is the correct explanation for the as- does not come under the primary sector?
sertion A. Fishing
B. Assertion and reason are true but rea- B. Farming
son is not the correct explanation for the
Assertion C. Mining
C. Assertion is true but Reason is false. D. Banking
D. Assertion is false but Reason is true. 192. In the data given of GDP, which was the
E. Assertion and Reason are both false most productive sector in 1974?
187. Which of the following is NOT wrong? A. Primary
A. In a developing country the govern- B. Tertiary

ment is not responsible to make arrange- C. Secondary
ments to provide basic services to the peo-
D. Equal production
ple.
B. All parts of the service sector is grow- 193. ATM is an example of
ing equally well.
A. primary sector
C. Today, the secondary sector is the
B. secondary sector
largest contributor to India’s GDP.
C. tertiary sector
D. The primary sector continues to be the
largest employer even now. D. all of these

194. IDENTIFY THE CORRECT ANSWER FROM B. Secondary

THE ALTERNATIVES PROVIDED.BOTH C. Tertiary
TISCO AN RELIANCE INDUSTRIES ARE
OWNED BY: D. none of above
A. THE GOVERNMENT 200. Service is both
B. PRIVATE COMPANY A. tangible
C. A COOPERATIVE SOCIETY B. intangible
NARAYAN CHANGDER
D. JOINTLY BY PRIVATE AN THE GOVERN- C. physical product
MENT
D. both 1 and 2
195. Private sector works for
201. GDP is the total value of produced in
A. Profit making
a multiple year
B. Social welfare
A. all goods and services
C. Both
B. all final goods n services
C. all intermediate goods n services
196. Using sugarcane as raw material, we D. All intermediate and final goods n ser-
make sugar or gur, under what sector does vices
this activity come?
A. Primary 202. underemployment is found in-
B. Private A. Agriculture sector
C. Industrial B. Services sector
D. Tertiary C. Both agriculture sector and services
sector
as: D. Agriculture Sector nor services sector
A. agriculture, dairy, fishing and forestry 203. pick the odd one
B. making sugar, gur and bricks A. Delhi metro Rail corporation
C. transport, communication and banking B. Delhi transport Corporation
D. mining, livestock C. Satyam Computers
198. Most of the workers in sector enjoy D. Air india
job security.
204. In disguised unemployment we see that
A. Organised
B. Private
A. few people are working
C. Unorganised
B. labour effort is divided
D. Public
C. All are working and they are fully em-
199. Workers in the sector do not produce ployed
goods. D. All People work as per their full poten-
A. Primary tial

205. Which of the following is a tertiary sector C. more than 35 lakhs of jobs
activity? D. more than 20 lakhs of jobs

A. Nursing
211. Small and scattered units which are
B. Making pots
largely outside the control of the govern-
C. Food processing ment are called
D. All of the above A. public sector
206. Which three activities which belong to B. organised sector
the primary sector
C. primary sector
A. Doctors, washermen, transport
D. unorganised sector
B. Dairy, mining, agriculture
C. Sugar, cotton textile, mineral based in- 212. What is life expectancy?
dustries A. How long you are expected to live for
D. none of above when you’re born
B. What people expect out of life
207. THE TASK OF MEASURING GDP IS UN-
DERTAKEN BY THE C. Whether or not you will be born
A. CENTRAL GOVERNMENT D. Amount of money a country has
B. STATE GOVERNMENT
213. Which sector has the largest contribution
C. PROVINCIAL GOVERNMENT in GDP
D. ALL O THE ABOVE A. Primary
208. When income level rise, certain sections B. Secondary
of people start demanding many more ser- C. Tertiary
vices like
D. none of above
A. Poverty
B. More food 214. GREATER THE DEVELOPMENT OF THE
PRIMARY AND SECONDARY SECTORS,
C. Hospitals
WOULD BE THE DEMAND FOR SUCH
D. Tourism SERVICES?
209. A sole trader operates in the A. EQUAL
A. Public sector B. MORE
B. Private sector C. LESS
C. Third sector D. UNEVEN
D. none of above
215. Railways is an examples of
210. In NITI Aayog, tourism sector is potential
A. Public sector
for generating more than how many lakhs
of jobs? B. Private sector
A. more than 15 lakhs of jobs C. Tertiary sector
B. more than 22 lakhs of jobs D. Joint sector

216. Assertion:There are several goods and

services that the society needs; however,
the private sector does not produce all
of them.Reason:Private sector is profit
driven.
tion.
NARAYAN CHANGDER
reason is not the correct explanation of A. Present generation only
assertion. B. future generation only
C. Assertion is true but reason is false. C. both (a) (b)
D. Both assertion & reason are false. D. none of these
217. On which of the following basis the sec- 221. gradually became the most important
tors are classified into primary, secondary in total production and employment?
and tertiary sector?
A. Secondary sector
A. Employment conditions
B. Tertiary sector
B. The nature of the economic activity
C. Public sector
C. Ownership of enterprises
D. Primary sector
D. Number of workers employed in the en-
terprise 222. Which of the following sector is the
largest contributor to the economy?
218. What will happen if the government fails A. Primary
to provide 100 days employment under
NREGA? B. Secondary
A. No extra benefit will be given C. Tertiary
B. The officer-in-charge will be punished D. Information Technology
C. Unemployment allowance will be given 223. Find the odd one

D. Food grains will be provided A. tourist guide
B. dhobi
219. Underemployment occurs-
C. tailor
A. when people are not willing to work.
D. potter
B. when people are working slowly.
C. when people are working less than 224. Assertion:Reliance industries is
what they are capable of doing. a privately-owned firm. Rea-
son:Government is a major stakeholder
D. when people are not paid for their
is Reliance Industries.
jobs.
220. Sustainable Development is that develop- reason is the correct explanation of asser-
ment which satisfies the need of: tion.

B. Both assertion & reason are true but D. Assertion and Reason are both false
reason is not the correct explanation of E. Assertion is false but Reason is true
assertion.

C. Assertion is true but reason is false. 229. Identify the sector
D. Assertion is false but reason is true.

not fall under unorganized sector?
A. A farmer irrigating his field
B. A daily wage labourer working for a A. Agricultural sector
contractor. B. Industrial sector
C. A doctoor in a hospital treating a pa- C. Service sector
tient
D. Commercial sector
D. A handloom weaver working on a ioom
in her house. 230. Which sector has emerged as the largest
producing sector in India. Select one from
226. India is the seventh largest agricultural the following alternatives:
across the globe
A. Primary sector
A. Exporter
B. Secondary sector
B. Importer
C. Tertiary sector
C. Exporter and Importer
D. Science and Technology sector
231. Which of the following is not an activity
227. Which sector is called service sector
of organised sector
A. Primary
A. Casual labourer
B. Secondary
B. Domestic workers
C. Tertiary
C. Construction workers
D. Nonenof the above
D. A teacher teaching in a government
228. Assertion:An individual who manufacture school
flour from wheat is engaged in the tertiary
sector.Reason:When some process of man- 232. Assertion:In India, over the forty years
ufacturing is used, the product is a part of between 1973-74 and 2013-14, while
the secondary sector. production in all the three sectors has in-
creased, it has increased the most in the
A. Assertion and Reason are true and rea- tertiary sector. Reason:Tertiary sector is
son is the correct explanation for the as- the only organized sector in the economy
sertion so the government spends a lot of money
B. Assertion and reason are true but rea- for creating jobs in tertiary sector.
son is not the correct explanation for the A. Both assertion & reason are true and
Assertion reason is the correct explanation of asser-
C. Assertion is true but Reason is false tion.

B. Both assertion & reason are true but 237. Both Tisco and Reliance Industries are
reason is not the correct explanation of owned by:
assertion. A. The government
C. Assertion is true but reason is false. B. Private company
D. Assertion is false but reason is true. C. A cooperative society
E. Both assertion and reason are false. D. Jointly by private companies and the
govt.
233. It has been noted from the histories of
NARAYAN CHANGDER
many, now developed, countries that at 238. Group of sectors on the basis of working
initial stages of development, sector condition
was the most important sector of economic
A. Primary, secondary and tertiary sec-
activity
tors
A. Public
B. Organised and Unorganised sectors
B. Tertiary
C. Private and Public sectors
C. Secondary
D. none of above
D. Primary
239. The sectors are classified into public and
234. GDP stands for: private sector on the basis of:
A. Gross Development Project A. employment conditions
B. Gross Domestic Project B. the nature of economic activity
C. Gross Domestic Product C. ownership of enterprises
D. Gross Domestic Produce D. number of workers employed in the en-
terprise
235. Which of the following sentences is NOT
wrong? 240. Choose the sentence from the following,
which is correct.
A. A study conducted by NITI Aayog
states that nearly 20 lakh jobs can be cre- A. The task of collection of data in all the
ated in the agricultural sector alone. three sectors of the economy is done by
BPO
B. None of the above
B. The task of collection of data in all the
C. A study conducted by NCE states that
three sectors of the economy is done by
nearly 25 lakh jobs can be created in the
UDPA
educational sector alone.
C. The task of collection of data in all the
D. A study conducted by NCE Aayog
three sectors of the economy is done by
states that nearly 25 lakh jobs can be cre-
IEGC
ated in the educational sector alone.
D. The task of collection of data in all the
236. primary sector is known as three sectors of the economy is done by
A. Agriculture sector NSSO
B. Service sector 241. What is the secondary sector known as?
C. Both a and b A. Service sector
D. None of the above B. Quaternary sector

C. Manufacturing sector C. Industrial Licensing

D. none of above D. FDI

242. Cotton cultivation falls under sector. 247. when we include intermediate goods in
A. Service sector the estimation of GDP we face the prob-
lems like:
B. Tertiary
A. Double accounting
C. Primary
B. Unemployment
D. Government
C. Poverty
243. WHICH SECTOR HAS EMERGED AS THE D. Overestimation of GDP
LARGEST PRODUCING SECTOR IN INDIA.
SELECT ONE FROM THE FOLLOWING AL- 248. Which of the following statements is true
TERNATIVES: in respect of Public Sector?
A. SECONARY SECTOR A. An individual owns most of the assets
B. TERTIARY SECTOR B. A group of people owns most of the as-
sets
C. PRIMARY SECTOR
C. Big companies own most of the assets
D. SCIENCE AN TECHNOLOGY SECTOR
D. Government owns the assets
244. Which two statements are correct for the Explanation:
statement?Workers in agriculture sector
are underemployed because 249. Which of these can be considered as basic
services?
A. there are less people than required
A. Growing of wheat
B. there are more people than required
B. Transport
C. The secondary and tertiary sectors
produce 4/5th of the produce and employ C. Storage
less than 1/2 the people D. Police Station
D. none of above 250. Choose the correct meaning of organised
245. which of the following involves in its sim- sector
plest form the buying and selling of agricul- A. It covers those enterprises where the
tural produce terms of employment are not regular.
A. International Marketing B. It is outside the control of the govern-
B. Agricultural Marketing ment.
C. Marketing Strategy C. Jobs are not regular.
D. Green Revolution D. It provides low salaries.
246. What is the process by which an econ- 251. Assertion (A):In certain areas, govern-
omy is transformed from primarily agricul- ment has to undertake heavy spending to
tural to one based on the manufacturing of ensure that facilities are available to ev-
goods eryone in the society. Reason (R):Some of
the things needed by the society, require
A. Industrialization spending large sums of money, which is
B. Business beyond the capacity of the Private sector.

A. Both A and R are true and R is the cor- 256. Assertion:The sum of the production of
rect explanation of A three sectors of the economy is called GDP
(Gross Domestic Product). Reason:Only
B. Both A and R are true and R is the not
the final goods and services are included
correct explanation of A.
so that the intermediate goods do not get
C. A is correct but R is wrong. counted more than once.
D. A is wrong but R is correct. A. Both Assertion and Reason are true
NARAYAN CHANGDER
252. Industries falls under of the Assertion
A. Primary sector B. Both Assertion and Reason are true bit
B. Secondary sector the Reason is not the correct explanation
of the Assertion
C. Tertiary sector
D. none of above false
253. In which sector government owns most D. Assertion is false but the Reason is
of the assets and provides all the ser- true
vices? E. Both the Assertion and the Reason are
A. Primary Sector false
B. Secondary Sector
257. On what basis the sectors are classified
C. Public Sector into public and private sector
D. Private Sector A. Ownership of enterprises
B. By the profit
254. Which of the following institutions pro-
vide data related to employment and un- C. By their investment
employment?(i) National Sample Survey
Organisation(ii) Reserve Bank of India
A. All of the above 258. Activities in private sector have a motive
of
B. None of the above
A. Service to citizens
C. Only [ii]
B. Competition
D. (i) National Sample Survey Organisa-
tion C. Earning profits
D. Exploiting Labourers
255. Over the past decade or so, certain new
services such as have become impor- 259. Assertion:An individual who manufac-
tant and essential? tures flour from wheat is engaged in pri-
A. private hospitals mary sector. Reason:When some process
of manufacturing is used, the product is a
B. professional training
part of secondary sector.
C. information and communication tech-
nology
D. Insurance tion.

B. Both assertion & reason are true but 265. Assertion (A):Not every good or ser-
reason is not the correct explanation of vice that is produced or sold needs to be
assertion. counted to know the total production in

C. Assertion is true but reason is false. each sector. Reason (R):The value of fi-
nal goods already includes the value of all
D. Assertion is false but reason is true. the intermediate goods.
E. Both assertion & reason are false. A. Both A and R are true and R is the cor-
rect explanation of A.
260. To get GDP we should calculate the value
of B. Both A and R are true and R is the not
A. Final goods and services
C. A is correct but R is wrong.
B. Individual goods’ value
D. A is wrong but R is correct.
261. Which sector includes the units producing
services? 266. When workers do not utilise their full po-
tential in terms of labour efforts then it is
A. primary sector called
B. secondary sector A. Underemployment
C. tertiary sector B. Disguised unemployment
D. all the above C. Seasonal employment
262. What is the primary sector also called? D. All of the above
A. Industrial sector 267. DON’T select the sentence from the fol-
B. Agriculture sector lowing which is wrong.
C. Related sector A. The central government in India made
a law implementing the Right to Work in
D. Both (A) and (B) about 625 districts.
263. Fill in the blankThe central government in B. The Mahatma Gandhi National Rural
India had made a law implementing the Guarantee Act was implemented in 2009.
in about 625 districts of India. C. Education sector doesn’t provide any
A. Right to increased wage employment.
B. Right to governmental services D. Farmers in India are the most prof-
itable in the agricultural sector.
C. Right to education
D. Right to work 268. NREGA (National Rural Employment
264. In which year ‘National Rural Employ- days of employment in a year in many
ment Guarantee Act was passed? districts of India
A. 1980 A. 200 days
B. 1985 B. 100 days
C. 2004 C. 30 days
D. 2005 D. 60 days

269. FDI stands for 274. Cotton is a product and cloth is a

product.
A. Foreign Direct Investment
A. Natural, manufactured
B. Financial Direct Investment
B. Natural, final
C. Foreign Direct Information
C. Final, manufactured
D. none of above
270. which sector has considerably grown in
NARAYAN CHANGDER
275. Assertion:Rakesh is an educated and
recent years skill worker, who earns monthly high in-
A. primary come salary as he is employed in private
bank.Reason:All service sector in India are
B. secondary
growing equally well and all the individual
C. teritary in this sector earns a high income
D. public sector A. Both assertion and reason are true
and reason is the correct explanation of
271. Who among the following fall under the assertion
organized sector? B. Both assertion and reason are true but
A. Purushothaman, a cleaning staff in a reason is not the correct explanation of as-
private bank. sertion
B. Nafeesa, a doctor getting all employ- C. Assertion is true but Reason is false
ment benefits.Ammini, a tailor stitching D. Both Assertion and Reason are false
clothes at his home.
276. Where are the employment and non-
C. Ammini, a tailor stitching clothes at his employment figures taken from to study
home. the data?
D. Raghu, a daily wage labourer working A. National Sample Survey Organisation
in a dam site under a contractor.
B. National Statistical Office
272. The sectors are classified into public and C. National Rural Employment Guarantee
private sector on the basis of: Act
A. Employment conditions D. NITI Aayog
B. The nature of economic activities 277. IN THE DATA GIVEN BY GDP, WHICH
C. Number of workers employed WAS THE MOST PRODUCTIVE SECTOR IN
1974?
D. Ownership of enterprises
A. PRIMARY
273. Name the sector of the economy that B. TERTIARY
does not produce any goods
C. SECONDARY
A. Primary Sector D. EQUAL PRODUCTION
B. Tertiary Sector
278. In the data given of GDP which was the
C. Secondary Sector most productive sector in 2013-14?
D. None of the above A. Primary

B. Tertiary B. Both the Assertion and the Reason are

C. Secondary true but the Reason is not the correct ex-
planation of the Assertion

D. Equal production
279. In the secondary sector workers false
true
E. Both Assertion and Reason are false
283. Assertion:In India, over the forty years

between 1973-74 and 2013-14, while
production in all three sectors has in-
A. they work in shops creased, it has increased the most in the
primary sector. Reason:Primary sector is
B. obtain raw materials the only organized sector in the economy
C. transform raw materials into products so the government spends a lot of money
for creating jobs in the tertiary.
D. none of above A. Assertion and Reason are true and
Reason is the correct explanation of As-
280. On which of the following basis, the sec-
sertion
tors are classified into public and private
sector? B. Assertion and Reason are true but U is
A. Employment conditions not the correct explanation of Assertion
B. The nature of economic activity C. Both Assertion and Reason are false
C. Ownership of enterprises D. Assertion is true but Reason is false
D. Number of workers employed in an en- E. Assertion is false but Reason is true
terprise
284. Information and communication technol-
281. Life Insurance is an activity of the
ogy is associated with
A. Primary Sector
A. primary sector
B. Seconadry Sector
B. secondary sector
C. Service Sector
C. tertiary sector
D. none of the above
282. Assertion:If enough jobs are created in
secondary and tertiary sectors, it would 285. As per Niti Aayog jobs can be created
lead to better economic development of by improvement of education sector
the country. Reason:This would reduce un-
deremployment in the primary sector and A. 15 LAKH
value potential of human resource. B. 10 LAKH
A. Both the Assertion and the Reason are
C. 20 LAKH
true and the Reason is the correct expla-
nation of the Assertion D. 30 Thousand

286. In the data given of GDP which was the C. Tertiary sector
least productive sector in 2013-2014? D. All of the above
A. Agriculture and related sector
292. People engaged in secondary activities
B. Manufacturing
are called
C. Service Sector
A. Red collar
D. Industrial Sector
B. Blue collar
287. Railway is an example of:
NARAYAN CHANGDER
C. White collar
A. Private Sector D. none of above
B. Public Sector
293. What sector of economy does this fall un-
C. Secondary Sector der?
D. None of these
288. How do big private companies contribute

in the development of a nation?
A. By increasing productivity of the coun-
try in the manufacturing of industrial good
B. By increasing their profits
C. By increasing the demands for their A. Private
products through advertisements
B. Public
D. By providing private hospitals facilities
C. Third
for the rich person
D. none of above
289. In India, the mammoth task of measuring
GDP is undertaken by 294. As the methods of farming changed and
A. Union territories the agriculture sector began to prosper,
most of the goods produced were from
B. A central government ministry the primary sector and most people were
C. Indian states also employed in this sector?
D. All of the above A. Synthetic Products
290. Name one type of classification of the B. Involved Machines
economy? C. Natural Products
A. Urban D. Mixed Products
B. Rural
295. WHICH OF THE FOLLOWING ACTIVITIES
C. Private/ Public DOES NOT BELONG TO THE PRIMARY SEC-
D. State/ National TOR?
A. FISHING
291. Conversion of raw material into finished
products is an activity of B. BANKING
A. Primary sector C. MINING
B. Secondary sector D. FORESTRY

296. Which of the following is not a method to A. Both assertion & reason are true &
increase income of the state? reason is the correct explanation of asser-
tion.

A. Tourism
B. Domestic Industries B. Both assertion & reason are true but
C. Craft industry
assertion.
D. Both B & C
297. Since transportation and communication
D. Both assertion & reason are false.
provide services, they are called sec-
ondary services. 301. Economic activities are highly
A. Absolutely right
A. Producing
B. some what right
B. Independent
C. absolutely wrong
C. Interdependent
D. some what wrong
D. Wasteful
298. The share of which sector has been the
largest in GDP in India? 302. Assertion:In India, over the forty years
production in all three sectors has de-
creased, it has increased the most in the
primary sector.Reason:Tertiary sector is
the only organized sector in the economy
so the government spends a lot of money
for creating jobs in the tertiary sector.
A. Primary A. Assertion and Reason are true and
Reason is the incorrect explanation of the
B. Secondary
Assertion
C. Tertiary
B. Assertion and Reason are true and
D. none of above Reason is the correct explanation of the
299. GDP is the sum of the value of goods Assertion
and services produced in a particular year C. Both Assertion and Reason are false
by all the three sectors
D. Assertion is true but Reason is false
A. Primary
E. Assertion is false but Reason is true
B. Secondary
C. Tertiary 303. Which occupation belongs to the primary
D. Final sector?
A. Teaching
300. Assertion:Leela works five days a week,
receives her income on the last day of each B. Fishing
month and gets medical facilities from her
C. Iron and steel industry
firm.Reason:Leela is working in organized
sector. D. none of above

304. Which of the following examples does 308. Other name of underemployment
not fall under unorganized sector? A. Disguised unemployment
A. A farmer irrigating his field. B. Hidden unemployment
B. A daily wage labourer working for a C. Over employment
contractor
D. Both a and b
C. A doctor in a hospital treating a pa-
tient. 309. Choose the meaning of organised sector:
NARAYAN CHANGDER
D. A handloom weaver working on a loom A. It covers those enterprises where the
in her house. terms of employment are regular
305. Which sector is characterized by small ment
and scattered units which are largely out-
side thecontrol of the government? C. Jobs are not regular
A. Joint sector D. It provides low salaries
B. Unorganized sector 310. In urban areas, unorganised sector com-

prises mainly of
C. Private sector
A. sharecroppers
D. Organized sector
B. share market people
306. GDP stands for Gross Domestic Product
C. landless farmers
What does it show? Pick up the correct
statement given below: D. workers in small scale industries
A. It shows how big is the economy of a 311. Primary sector is also known as
country in a given year in terms of its total A. Agricultural sector
output.
B. It shows what the total product of a
country in a given year without counting C. Service sector
the country’s total resources. D. Commercial sector
C. It shows the number of people in- 312. The allownce given to the person who
volved in production in a particular year. didnt get job under MGNREGA
D. It shows the total value of trade trans- A. Employment allownancs
actions of a country in a particular year.
B. Unemployment allowances
307. As the methods of farming changed and C. Job allowances
the agriculture sector began to prosper,
D. none of above
most of the goods produced were from
the primary sector and most people were 313. Which activities come under the agricul-
also employed in this sector? ture and related sectors
A. Synthetic products A. Dairy
B. Natural products B. manufacturing
C. Mixed products C. using cotton fiber from the plant
D. Involved products D. selling agricultural products

314. How many sectors of economy are there? D. all intermediate and final goods and
A. 3 services

B. 4 319. The goods and services that finally reach
C. 2 the consumers are called
D. none of above A. Intermediate goods
B. final goods
315. Which of the following is an intermediate
good- C. Primary products
A. Sugar cane used in making sugar D. none of above
B. Sugar cane used in making jaggery
320. What is the secondary sector?
C. Sugar used in making cakes
A. production of a good by exploiting nat-
D. Bread consumed by households ural resources
316. How do big private companies contribute B. activities in which natural products are
to the development of a nation? changed into other forms through ways of
manufacturing
A. By increasing the demands for their
products through advertisements. C. activities, by themselves, do not pro-
B. By increasing their profits. duce a good but they are an aid or support
for the production process.
C. By increasing productivity of the coun-
try in the manufacturing of industrial D. Mineral excavation
goods.
321. In India GDP is a task that is taken
D. By providing private hospital facilities up by
for the rich.
A. Enormous, Supreme Court
317. Choose the correct meaning of organised B. Mammoth, Central Govt.
sector:
C. Huge, State Govt.
A. It covers those enterprises where the
terms of employment are regular with D. Large, Central Govt.
good working conditions.
322. The share of which sector has been the
B. It is outside the control of the govern- largest in Employment in India?
ment.
C. Jobs are not regular but working con-
ditions are good.
D. It provides low salary but tenure is
fixed.
318. GDP is the total value of produced

during a particular year. A. Tertiary
A. all goods and services B. Agriculture
B. all final goods and services C. Industrial
C. all intermediate goods and services D. none of above

323. Which of the following is a necessary con- A. TISCO/RIL

dition for sustainable development?
B. Railways/Post-Office
A. Increase in the quality of life
B. Reduction in the level of pollution 329. Assertion:Leela works five days a week,
receives her income on the last day of each
C. conservation of stock of natural capital
month and gets medical facilities from her
D. All of these firm. Reason:Leela is working in the orga-
nized sector
NARAYAN CHANGDER
324. Disguised unemployment can be ob-
served in A. Both Assertion and Reason are true
A. Rural area and the Reason is the correct explanation
of the Assertion
B. Urban area
C. In both the areas but the Reason is not the correct explana-
D. None of these tion of Assertion
325. Find the odd one out and say why. C. Assertion is true but the Reason is
false
A. Postman
B. Cobbler D. Both Assertion and Reason are false
C. Soldier E. Assertion is false but Reason is true
D. Police constable.
330. % of rural households in India come
326. The money value of all final goods and under small and marginal farmer category
services produced within a country during A. 77 %
a particular year is called?
B. 69 %
A. Net Domestic Product
C. 80 %
B. Gross Domestic Product
C. Production of Secondary Sector D. 73 %
D. Total Product 331. Which of the following Acts would not ap-
327. The backbone of Indian Economy is ply to a company like TISCO?
A. Industrial Sector A. Minimum Wages Act
B. Agricultural Sector B. National Rural Employment Guarantee
C. National Income Act
D. GDP C. Factories Act
328. An example of privately owned organisa- D. Payment of Gratuity Act

tion
332. Right to Work is a Central Government
law that is also called the MGNREGA 2005
ACT
A. True
B. False

333. occurs when industry is established 339. The task of measuring GDP is undertaken
on a large scale by the

A. Privatization A. central government
B. Globalization B. state government
C. Liberalization
C. provincial government
D. Industrialization
D. all of the above
334. In terms of GDP the share of tertiary sec-
tor in 2003 is 340. The value of all final goods and services
A. between 20 per cent to 30 per cent produced within a country during a partic-
ular year is called as
B. between 30 per cent to 40 per cent
C. between 50 per cent to 60 per cent A. Gross Domestic Product
D. 70 per cent B. Net Domestic Product
335. The value of all final goods and services C. National Product
produced within a country during a partic- D. Production of Tertiary Sector
ular year is called as:
A. Gross Domestic Product 341. NREGA (National Rural Employment
B. Net Domestic Product
C. National Product districts of India. What are the correct
D. Production of Tertiary Sector number of days?
336. Which of the following is also known as A. 30 days

disguised employment? B. 80 days
A. Over employment C. 100 days
B. Factory employment
D. 200 days
C. Under employment
D. Unemployment 342. Where are most of the peopleemployed?
337. MGNREGA guarantee job to poor for A. Tertiary

A. 100 days B. Secondary
B. 90 days C. Primary
C. 60 days D. none of above
D. 50 days
343. THE MOTIVE OF THE PUBLIC SECTOR EN-
338. Which sector of the economy is the TERPRISES IS
largest employer?
A. PROFIT MAKING
A. Service Sector
B. Industrial Sector B. ENTERTAINMENT
C. Agriculture Sector C. SOCIAL WELFARE AND SECURITY

D. None of the above D. NONE OF THE ABOVE

344. Goods used in the production of final 348. Where will you find the disguised unem-
goods and services are called ployment most? Select the correct option
from those given below
A. Final goods
A. Among agricultural workers working
B. Intermediate goods
C. Consumer goods
B. Among part-time industrial workers
D. none of above
C. In most of the government offices
NARAYAN CHANGDER
345. On which of the following basis the sec- D. In big private companies
tors are classified into public sector and pri-
vate sector? 349. Give an example of an intermediate
good?
A. Woven basket
B. The nature of the economic activity
B. Chair production from wood
C. Ownership of enterprises
C. Wheat flour
terprise D. Biscuits
346. Which sector has lost its share in GDP but 350. Where are the employment and non-
still continues to be largest employer? employment figures taken from to study
the data?
A. Tertiary
A. Real-Time Handbook of Statistics on
B. Primary
Indian Economy.
C. Secondary
B. National Statistical Office (NSO)
D. Only c
C. NITI Aayog
347. Assertion:The initial stages of develop- D. Statistics information Bureau
ment had secondary sector as the most im-
portant sector. Reason:Over time, there 351. When we produce a good by exploiting
has been a shift observed among different natural resources it is called ?
sectors. A. Tertiary
A. Both Assertion and Reason are true B. Primary
of the Assertion C. Service
B. Both Assertion and Reason are true D. Public

but the Reason is not the correct explana-
tion of the Assertion 352. Underemployment is a situation where
people:
false A. do not want to work
D. Assertion is false but the Reason is B. are not paid of their work
true C. are working in a lazy manner
E. Both the Assertion and the Reason are D. are working less than what they are ca-
false pable of doing

353. Production of a commodity, mostly 358. WHO CARRIES ECONOMIC ACTIVITIES?

through the natural process, is an activity A. INDIVIDUALS
in sector.

B. FIRMS
A. primary
C. GOVERNMENT
B. secondary
D. ALL OF THE ABOVE
C. tertiary
359. Sectors are-
D. information technology
A. Independent
354. In terms of GDP the share of tertiary sec-
B. Dependent
tor in 2003 is between:
C. Interdependent
A. 20%to30%
D. Non dependent
B. 30%to40%
C. 50 %to60% 360. Identify the correct answer from the al-
ternatives provided:Both TISCO and RE-
D. 70% LIANCE Industries are owned by:
355. gradually became the most important A. The Government
in total production and employment? B. Private Company
A. primary sector C. A cooperative Society
B. public sector D. Joint Sector
C. tertiary sector
361. The sum of production in the three sectors
D. secondary sector gives what is called the of a country?
A. Gross income
356. The task of collection of data in all the
three sectors of the economy is done by B. Gross Domestic Product
which of the following anlanizations. C. Net Domestic Product
A. NSSO D. Net income
B. BPO
362. The primary sector is also called
C. KPO
A. Service sector
D. UNDP
B. Agriculture and related sector
357. Small scale industries need support of C. Pre-industry sector
the government because-A)selling electric-
D. Unorganized sector
ity at high cost can push the cost of
production.B)small scale industries employ 363. The task of collection of data in all three
largest number of workers sectors is done by
A. A is true but B is wrong A. BPO
B. B is true but A is incorrect B. UNDP
C. Both A and B are incorrect C. NSSO
D. Both A and B are correct reasons D. KPO

364. Name one functioning activity of the Ter- A. among agricultural workers working
tiary sector? for small farm lands
A. this sector gradually became associ- B. Among part-time industrial workers
ated with the different kinds of industries C. In most of the government offices
B. goods that are produced would need D. In big private companies
to be transported by trucks or trains and
then sold in wholesale and retail shops 369. Which sector is also called as industrial
sector?
NARAYAN CHANGDER
C. activities in which natural products are
changed into other forms through ways of A. Primary sector
manufacturing B. Secondary sector
D. none of above C. Tertiary sector
365. Which of the below is an example of un- D. None of these
organised sector? 370. The value of all goods and services pro-
A. A teacher teaching in school duced within a country in a certain year is
B. a headload worker carrying a bag of called its:
cement on his back in a market A. National Product
C. A factory worker going to work in a big B. Net Domestic Product
factory C. Gross Domestic Product
D. none of above D. None of these
366. In which sector activities are not guided 371. In the last 100 years there is a shift in
by profit? the developed economies and societies to-
A. Public wards the
B. Organised A. Primary sector due to advanced agri-
cultural techniques and greater demand
C. Private due to population increase
D. unorganised B. Secondary sector as new methods of
manufacturing were introduced and facto-
367. How do big private companies contribute
ries were employing huge work force to
produce goods at cheaper rates.
C. Tertiary Sector as most of the work-
products through advertisements
ing people are using their time and energy
B. By increasing their profits. to establish connectivity between Primary
C. By increasing productivity of the coun- and Secondary sectors for smoother run
try in the manufacturing of industrial of the economies.
goods D. none of above
D. By providing private hospital facilities 372. WHY I THE SECONDARY SECTOR LATER
for the rich. BECOME THE MOST IMPORTANT SECTOR?
368. Where will you find the disguised unem- A. PEOPLE BEGAN TO USE MANY MORE
ployment most? Select the correct option GOODS THAT WERE PRODUCE IN FACTO-
from those given below RIES AT CHEAP RATES

B. EMPLOYMENT INCREASED 376. In which sector are natural products

C. AGRICULTURE DECLINED changed into form through ways of man-
ufacturing?

D. A & B
A. Primary sector
373. Identify the type of activity B. Secondary sector
C. Tertiary sector
D. none of above
377. MGNREGA guarantees job to poor for

A. 25 days
B. 60 days
C. 100 days
D. 120 days
378. The unorganised sector is characterised

by
A. Small and scattered units under the
control of the government
A. Primary
B. Small and scattered units not under
B. Secondary the control of the government
C. Tertiary C. Large grouped units under the control
D. None of the above of the government
D. None
not fall under unorganized sector? 379. Which of the following industry is con-
A. A handloom weaver working on a loom cerned with extraction or drawing out
in her house goods from the soil, air or water
B. A doctor in a hospital treating a patient A. Primary Industry
C. A farmer irrigating his field B. Genetic Industry
D. A daily wages labourer working for a C. Extractive Industry
contractor D. Service Industry
375. In how many districts the “right to work”
380. Assertion:An individual who manufac-
has been implemented?
tures flour from wheat is engaged in pri-
A. 625 districts mary sector.Reason:When some process
B. 525 districts of manufacturing is used the product is a
part of secondary sector.
C. 675 districts
D. 200 districts reason is the correct explanation of asser-
E. None of the above tion.

B. Both assertion & reason are true but B. organized sector

C. Primary sector
assertion.
D. Private sector
D. Both assertion & reason are false. 386. Which of the following is not applicable
for a worker, who works in the organised
381. GDP is the sum total of the value of sector?
produced during a particular year.
NARAYAN CHANGDER
A. She gets a regular salary at the end of
A. all goods and services
the month
B. all final goods and services
B. She is not paid for leave
C. all intermediate goods and services
C. She gets medical allowance
D. all intermediate and final goods and
services D. She got an appointment letter stating
the terms and conditions of work when
382. THE SECONDARY SECTOR IS ALSO she joins work.
CALLED
387. GDP is the total value of produced
A. ORGANISED SECTOR
during a particular year.
B. SERVICE SECTOR
A. All goods and services
C. INDUSTRIAL SECTOR
B. All final goods and services
D. PUBLIC SECTOR
C. All intermediate goods and services
383. Which one is the correct option for the
given statement?Dairy is a primary sector D. All intermediate and final goods and
activity and not secondary sector despite services
the fact that ‘industry’ is attached to it,
388. In India, sector is largest employer
because
while sector is largest income genera-
A. Dairy products are availed through bi- tor.
ological process of the animals
A. secondary, tertiary
B. Availability of animal feed and fodder
B. tertiary, primary
C. the main product milk is a natural prod-
uct C. primary, tertiary
D. all of the above. D. tertiary, secondary
384. Agriculture is an unorganized sector 389. FIND OUT THE ODD ONE OUT?
A. true A. TEACHER
B. false B. DOCTOR
385. Minimum Wages Act and Factories Act, C. VEGETABLE VENDOR
Payment of Gratuity Act, Shops and Estab-
D. LAWYER
lishment Act are some of the laws associ-
ated with 390. Economic activity shown in the picture is
A. unorganized sector related to

B. To make facilities for public

C. To earn profit

D. All of these
395. Which sector has emerged as the largest

producing sector in India
A. Agriculture sector A. Secondary sector
B. Primary sector
B. Tertiary sector
C. Secondary sector
C. Primary sector
D. Tertiary sector
private sector on the basis of: 396. Employment figures of a country are
based on data collected from 5-yearly sur-
vey on employment and unemployment.
Which organisation conducts this survey?
A. NSSO-National Sample Survey Organi-
sation
B. NREGA 2005-National Rural Employ-
ment Guarantee Act, 2005
A. Employment conditions C. ILO-International Labour Organisation
B. Ownership of enterprises
D. Census of India
C. The nature of economic activities
D. Number of workers employed 397. The sectors are classified into public and
private on the basis of
392. The public sector aims to make good use
A. employment conditions
of taxpayers’ money and provide the ser-
vices needed. B. the nature of economic activity
A. True C. ownership of enterprises
B. False D. number of workers employed in the en-
terprise s
393. How are goods produced in the agricul-
ture and related sector?
398. Those activities, by themselves, do not
A. Reusing Natural Resources produce a good but they are an aid or sup-
B. Overusing Natural Resources port for the production process, are called
?
C. Exploitation of Natural Resources
D. Effective usage of Natural Resources A. secondary
B. primary
394. What is the main motive of private sector
enterprises C. tertiary
A. To give more wages to employee D. none of above

399. GDP per capita is highest in C. Mahatma Gandhi national rural em-
ployment gurantee act
D. none of above
403. The motive of Private sector enterprises

is:
A. Profit making
B. Entertainment
NARAYAN CHANGDER
A. South America
B. East Asia C. Social welfare and security
C. North America D. None of these
D. Eastern Europe 404. Who is known as the father of green rev-
olution in India?
400. Assertion” There are several goods and
services that the society needs; however, A. Dr. Varghese Kurian
public sector does not produce all of them. B. Dr. M S Swaminathan
Reason:The private sector is profit driven.
C. Dr. Manmohan Singh
A. Both the Assertion and Reason are
D. Dr. M S Ahluwalia
true but the Reason is not the explanation
of the Assertion 405. Underemployment is hidden in contrast
B. Both the Assertion and Reason are to someone who does not have a job and
true but the reason is not the explanation is clearly visible as unemployed It is also
of the Assertion called
C. The Assertion is false but the reason A. Hidden employment
is true B. Disguised unemployment.
D. The Assertion is true but the reason is C. Unstable employment
false
D. Less employment
E. Both the Assertion and the reason are
false 406. Identify the activity
401. Total no jobs that can be made in tourism

sector
A. 20 lakh
B. 35 lakh
C. 30 lakh
D. 40 lakh
402. Full form of MGNREGA

A. Primary
A. National rural employment guarantee
act B. Secondary
B. Mahatma national rural employment C. Tertiary

guarantee act D. Nonenof the above

407. Answer the following Assertion and Rea- 412. In terms of G.D.P., the share of tertiary
soning Question sector in 2003 was:

A. between 20 to 30%
B. between 30 to 40%
C. between 50 to 60%
A. Both A and R are true, and R is the cor- D. above 70%
B. Both A and R are true, but R is not cor- natural resources it is called
rect explanation of R
A. Tertiary sector
C. A is true but R is false
B. Primary sector
D. Both A and R are False C. Service sector
408. Underemployment is a type of hidden em- D. Public sector
ployment in contrast to someone who does
not have a job.
natural resources, it is an activity of the:
A. True
B. False
409. The difference between a nations exports

and imports is
A. Balance of Payment
B. Equilibrium
A. Industrial
C. Balance of Trade
B. Primary
D. Balance of nation
C. Tertiary
410. A public distribution shop is also known D. Unorganised
as
415. In 2013-14, the sector that contributed
A. Fair Price Shop (FPS)
highest to the GDP was
B. Ration Shop A. Primary
C. Free Distribution shop B. secondary
D. All the above C. tertiary
411. Workers in this sector do not produce D. none of above

goods: 416. Find the odd one out and say why.
A. tertiary sector A. Teacher
B. secondary sector B. Doctor
C. primary sector C. Vegetable vendor
D. none of the above D. Lawyer.

417. Where are the employment and non- 423. Information and technology is a part of
employment figures taken from to study A. tertiary sector
the data?
B. primary sector
A. Real time handbook of statistics on In-
dian Economy C. secondary sector
B. National Statistical office (NSO) D. all of these
C. NITI Aayog 424. Greater the development of the primary
NARAYAN CHANGDER
D. Statistics information Bureau and secondary sectors, would be the
demand for such services?
418. Which sector is also called the service sec-
tor? A. Less
A. Primary B. Equal
B. Public C. More
C. Industrial D. Uneven
D. Tertiary 425. Assertion:There are several goods and
services that the society needs; however,
419. What are the groups of classification of
the private sector does not produce all of
an economy called?
them. Reason:Private sector is not owned
A. Sectors by the government.
B. Centers A. Both assertion & reason are true and
C. Types reason is the correct explanation of asser-
tion.
D. Categories
420. Under which right, MGNREGA was en- reason is not the correct explanation of
acted assertion.
A. Right to live C. Assertion is true but reason is false.
B. Right to livelihood D. Assertion is false but reason is true.
C. Right to work E. Both assertion & reason are false.
D. Right to job
426. Choose one correct statement from the
421. Fill in the blanks using the correct option following:Underemployment occurs-
A proportion of labourers in India are
A. when people are not willing to work.
working in the unorganised sector.
A. large
C. when people are working less than
B. small
what they are capable of doing.
422. Service is D. when people are not paid for their jobs
A. tangible
427. How many percentage of rural house-
B. intangible holds in India are in small and marginal
C. tangible & intangible farmer category.
D. physical Product A. 85%

B. 90% A. Manufacturing Sector

C. 81% B. Agricultural sector

D. 80% C. Orgainised Sector
428. Find the odd one out and say why. D. Unorganized sector
A. MTNL
B. Indian Railways 433. Driver
C. Air India
D. Sahara Airlines
E. All India Radio
429. Fill in the blanks using the correct option

Employment in the service sector in-
creased to the same extent as production.
A. has
B. has not A. Primary (Extraction)
430. Assertion:In India Primary sector is the B. Secondary (Production)

largest employerReason:The demand for C. Tertiary (Services)
services has increased enormously
D. none of above
A. Both Assertion and reason are true
and reason is the correct explanation of
434. Employment figures of a country are
assertion
based on data collected from 5-yearly sur-
B. Both Assertion and reason are true but vey on employment and unemployment.
reason is not the correct explanation of as- Which organization conducts this survey?
sertion
A. NSSO-National Sample Survey Organi-
C. Assertion is true but reason is false
sation
D. both assertion and reason are false
B. NREGA 2005-National Rural Employ-
431. Workers in agricultural sector are ment Guarantee Act, 2005
A. underemployed C. ILO-International Labour Organisation
B. over employed D. Census of India
C. unemployed
D. None of these 435. which is an example of disguised unem-
ployment?
A. 3 workers working in 2.5 hectares
B. 9 workers working in 1 hectare of land
C. 10 workers working in 10 hectares of
land
D. None of these

436. What am I? I am a Private Sector or- 441. In which sector is seasonal and disguised
ganisation, owned by shareholders, I sell and unemployment most prevalent in In-
shares on the Stock Market to the public dia?
and I am managed by a Board of Directors.
A. Agricultural sector
A. Private Limited Company
B. Public Limited Company
C. Service sector
C. Partnership
D. none of above
NARAYAN CHANGDER
D. Franchise
437. Which of the following examples does 442. Select the correct option/s regarding the
not fall under unorganized sector? economic sector and its other name.(i)
A. A farmer irrigating his field. Agriculture and allied sector-primary sec-
tor(ii) Manufacturing sector-secondary
sector(iii) Service sector-tertiary sector
contractor.
C. A doctor in a hospital treating a pa- A. Only [i] is correct
tient. B. Only [ii]&[iii] are correct
D. A handloom weaver working on a loom C. All are incorrect
in her house.
D. All are correct
438. In the last 100 years, the sector gaining
prominence is 443. In an unorganised sector,
A. secondary sector A. Worker gets wages as per the govern-
B. primary sector ment rules and regulation
C. tertiary sector B. Workers get regular work
D. all of these C. Workers do not have fixed working
439. Production of a commodity, mostly hours
through the natural process, is an activity D. Workers are not paid for overtime
in the sector. work
A. Primary
B. Secondary
natural resources it is called ?
C. Tertiary
A. Primary Sector
D. Information Technology
B. Secondary Sector
440. In urban areas, the unorganized sector
comprises mainly of which of the follow- C. Tertiary Sector
ing? D. Public Sector
A. People who work in hospitals
B. Teachers 445. Fill in the blanks using the correct option-
Cotton is a product
C. Workers in a transportation company
A. natural
D. People who work as employers in a
company B. manufactured

446. Assertion:If enough jobs are created in clearly visible as unemployed. It is also
secondary and tertiary sectors, it would called
lead to better economic development of

A. Hidden employment
the country. Reason:This would reduce un-
deremployment in the primary sector and B. Disguised unemployment
value potential of human resource. C. Unstable employment
A. Both the Assertion and the Reason are D. Disguised employment
true but the Reason is not the correct ex-
planation of the Assertion 451. In terms of GDP the share of teritary sec-
tor in 2013-14 is-
B. Assertion is false but the reason is
true A. Between 20 to 30 percent
B. Between 30 to 40 percent
C. Assertion is true but the reason is
false C. Between 50 to 60 percent
D. Both the Assertion and the Reason are D. Between 60 to 70 percent
true and the Reason is the correct expla-
452. Traditionally, which part of the world is
nation of the Assertion
more developed?
447. Choose one correct statement from the A. Northern hemisphere
following:
B. Southern hemisphere
A. when people are not willing to work
453. Assertion:In India, over the forty years
C. when people are working less than production in all the three sectors has in-
what they are capable of doing. creased, it has increased the most in the
D. when people are not paid for their tertiary sector.Reason:Tertiary sector is
jobs. the only organized sector in the economy
so the government spends a lot of money
448. The process of is essential in the Sec- for creating jobs in tertiary sector.
ondary Sector. A. Both assertion & reason are true &
A. Manufacturing reason is the correct explanation of asser-
B. Producing tion.
C. Recycling
D. Exploitation assertion.
449. The activities in Primary, Secondary and C. Assertion is true but reason is false.
Tertiary sectors are D. Both assertion & reason are false.
A. interlinked
454. Disguised Unemployment means a situa-
B. interrelated tion where people are:
C. interdependent A. Unemployed
D. none of above B. Employed but earning less salary
450. Underemployment is hidden in contrast to C. Employed but productivity is nil

someone who does not have a job and is D. Unemployed for a short period of time

455. Assertion:In India, the primary sector is 460. The sum of production in the three sectors
the largest employer. Reason:The demand gives what is called the of a country?
for services has increased enormously. A. gross domestic product
B. gross national income
tion. C. gross domestic
B. Both assertion & reason are true but D. none of above
NARAYAN CHANGDER
assertion. 461. When we produce a good by exploiting
natural resources, it is an activity of the
A. Secondary Sector
E. Both assertion & reason are false. B. Tertiary Sector
C. Primary Sector
456. Which sector has grown the most over
forty years? D. Quinery sector
A. primary 462. What sector does Starbucks operate in?
B. tertiary
C. secondary
D. none of above
457. The following sector is the largest con-
tributor to Employment?
A. Primary Sector
B. Tertiary Sector
C. Quaternery Sector
D. Secondary Sector
A. Private
458. Over the past decade or so, certain new B. Public
services such as have become impor-
tant and essential? C. Third
A. information and communication tech- D. none of above
nology
463. A proportion of labourers in India are
B. private hospitals working in the Unorganised sector.
C. professional training A. Large
D. insurance
B. small
Primary Industry 464. GDP includes
A. Horticulture A. Intermediate goods

B. Poultry B. Final goods
C. Extraction of Timber C. Final goods and services
D. Cattle Breeding D. none of above

465. Assertion:GDP shows how big an econ- C. Assertion is true but the Reason is
omy is.Reason:GDP is the value of all false
goods and services produced within the do-

mestic territory of a country in a year.
true
reason is the correct explanation of asser- E. Both the Assertion and the Reason are
tion. false
469. The money value of all final goods and
services produced within a country during
assertion.
a particular year is called:
A. Gross domestic product
D. Both assertion & reason are false.
B. Net domestic product
466. The value of final goods and services pro-
duced in each sector during a particular C. National product
year provides the D. Production of secondary sector
A. Average Production of the sector for
that year 470. Converting iron ore to steel is a part of
B. Net Production of the sector for that A. primary activity
year
B. secondary activity
C. Total production of the sector for that
year. C. tertiary activity
D. Gross production of the sector for that D. all of these
year
471. Assertion:When calculating the total
value of goods and services produced in
A. 1990 a country, the value of all goods and ser-
B. 1998 vices at each stage of production should
be calculated.Reason:At each stage of pro-
C. 2000
duction some value is added to a good or
D. 2005 service, therefore, the value added at each
stage of production is added to derive the
468. Assertion:The sum of the production of
total value of gods and services in an econ-
three sectors of the economy is called GDP
omy.
(Gross Domestic Product). Reason:Only
the final goods and services are included A. Both assertion & reason are true &
so that the intermediate goods do not get reason is the correct explanation of asser-
counted more than once. tion.
A. Both Assertion and Reason are true B. Both assertion & reason are true but
and the Reason is the correct explanation reason is not the correct explanation of
of the Assertion assertion.
but the Reason is not the correct explana-
tion of the Assertion D. Both assertion & reason are false.

472. MRTP stands for 477. Give an example of Intermediate good?

A. Monopoly and Restrictive Trade Prac- A. Woven basket
tices B. Wheat flour
B. Monopolies and Respective trade prac- C. Biscuits
tices
D. Chair production from wood
C. Monopolies & restrictive trade prac-
tices 478. Which organisation India undertakes the
NARAYAN CHANGDER
D. Monopolies & restrictive trade policy task of measuring GDP
A. Central government ministry
473. Tertiary sector is also called service sec-
tor. B. State government
C. Both of these
A. True
D. None of these
B. False
479. The sector of the economy that has be-
474. What is the primary sector known as?
come the least contributor to GDP in recent
A. Service sector years is
B. Agricultural sector A. Primary sector
C. Manufacturing sector B. Secondary sector
D. none of above C. Tertiary sector
D. none of above
475. Workers in this sector do not produce
goods: 480. Which of the following is a private sector
A. secondary sector enterprise?
B. tertiary sector A. TCS
C. primary sector B. BHEL
D. none of the above C. Postoffice
D. Air India
476. Primary sector continues to be the
largest employer since 1973-74 until the 481. Pick the incorrect option:GDP is defined
present times because as Gross Domestic Product of a country
A. Tertiary sector is the largest contribu- when we take into account the
tor to the GDP A. value of final goods and services pro-
B. Secondary sector has grown in leaps duced in each sector during a particular
and bounds year, providing the total production of the
sector for that year.
C. not enough jobs were created in
the secondary and tertiary sectors even B. The sum of production in the three sec-
though industrial output of goods have tors gives us the GDP.
considerably risen by 9 times and 14 times C. The value of intermediate goods that
in the service sector. are used in making the final goods.
D. none of above D. None of the above is incorrect

482. Which sector is also called as service sec- A. Semi private sector
tor? B. Private sector

A. Secondary sector C. Public sector
B. Primary sector D. None of the above
C. Tertiary sector
487. Workers in agricultural sector are
D. None of these
A. unemployed
483. Which of the following statements is true B. over employed
in respect of Public Sector?
C. underemployed
A. Big companies own most of the assets
D. None of these
B. Government owns the assets
C. A group of people owns most of the as- 488. Under the all those who are able to,
sets and are in need of work, in a rural area
are guaranteed 100 days of employment
D. An individual owns most of the assets in a year by the government.
484. Which of the following sectors is the A. Right to work
largest employer in India? B. Employment Right Act
A. Primary C. National Rural Employment Guarantee
B. Secondary Act 2005
C. Tertiary D. none of above
D. Private 489. In which sector activities are not guided
485. Name one functioning activity of the Ter- by profit motive?
tiary sector? A. organised sector
A. goods that are produced would need B. public sector
to be transported by trucks or trains and
C. private sector
then sold in wholesale and retail shops
D. unorganised sector
B. this sector gradually became associ-
ated with the different kinds of industries 490. In urban areas, unorganized sector com-
C. activities in which natural products are prises mainly of which of the following?
changed into other forms through ways of A. People who work in hospitals
manufacturing
B. People who work as employers in a
D. produce a good by exploiting natural company
resources
C. Teachers
486. The enterprise shown in the picture be- D. Workers in a transportation company
longs to
not fall under unorganized sector?
A. A farmer irrigating his field
contractor.

C. A doctor in a hospital treating a patient D. Seasonal Unemployment

in her house. 496. Another name for secondary sector is
A. primary sector
492. Assertion:Mohan is a shopkeeper who
pays his taxes on time. He has employed B. tertiary sector
two workers Rakesh and Raghu in his
C. service sector
shop. He pays them well, however, none
of the workers get any paid leaves in the D. industrial sector
NARAYAN CHANGDER
year. Reason:Rakesh and Raghu are em-
ployed in unorganized sector. 497. How do big private companies contribute
A. Both assertion & reason are true and
reason is the correct explanation of asser- A. By increasing the demands for their
tion. products through advertisements.
B. Both assertion & reason are true but B. By increasing their profits.
assertion. C. By increasing productivity of the coun-
try in the manufacturing of industrial
C. Assertion is true but reason is false. goods.
D. By roviding private hospitals facilities
E. Both assertion & reason are false. for the rich
493. is also called Tertiary sector.
498. In India, is the largest sector, while
A. Manufacturing sector sector is the largest income generator.
B. Agriculture sector A. primary; secondary
C. Services sector
B. tertiary; primary
D. Industrial sector
C. primary; tertiary
494. Why do the workers need protection and
D. secondary tertiary
support of the government in the unorgan-
ised sector?
499. Identify the natural product from the list
A. there is no job security of items given below:
B. pay is low A. Textile
C. they are often exploited B. Wheat flour
D. all of the above
C. Cotton
E. none of the above
D. Tomtao sauce
495. A situation in which more persons are em-
ployed on a job than are optimally required 500. Fill in the blanks using the correct option-
is Most of the workers in the sector en-
A. Structural Unemployment joy job security.
B. Disguised Unemployment A. organised
C. Cyclic Unemployment B. unorganised

501. Which of the following generate money. A. Secondary sector

B. Tertiary sector

A. C. Primary sector
B. 505. Which of the following activities is not

the activity of Primary Sector?
A. Milking
C. B. Fishing
C. Making of sugar
D. Farming
506. In the primary sector

D.
502. The full form of NREGP is:

A. National Rural Employment Gurrantee
Policy
B. National Rural Employment Gurrantee A. we obtain raw materials
Program
B. we transform raw materials into prod-
C. National Rural Employer Gurrantee ucts
Policy
C. we provide jobs
D. National Rural Employer Gurrantee
program D. none of above
503. Tertiary sector is called the service sector 507. Assertion:Leela works five days a week,
as receives her income on the last day of each
A. it does not produce goods but provide month and gets medical facilities from her
services to all the sectors firm.Reason:Leela is not working in the un-
organized sector.
B. it provides the interlink or inter con-
nectivity between all the sectors A. Assertion and Reason are true and rea-
son is the correct explanation for the as-
C. it provides the support that is needed
sertion
by both secondary and primary sector to
contribute to the GDP B. Assertion and reason are true but rea-
son is not the correct explanation for the
D. All the above options are true to the
Assertion
given statement.
C. Assertion is true but Reason is false
producing sector in India? Select one from D. Assertion and Reason are both false
the following alternatives: E. Assertion is false but Reason is true

508. Why the government shift its strategy A. 100 DAYS

from long term to short term program to B. 80 DAYS
remove unemployment?
C. 120 DAYS
A. Large scale corruption
D. 150 DAYS
B. Lukewarm response from State gov-
ernment 514. In which sector is manufacturing in-
cluded?
C. Long term programs take a long time
A. Primary sector
NARAYAN CHANGDER
to implement
B. Secondary sector
D. Lack of funds
C. Tertiary sector
509. Many organised sector enterprises are D. none of above
found in unorganized sector as to
A. Ensure to pay taxes 515. Central government in India made a law,
implementing the Right to Work in how
B. Do illegal activities many districts of India?
C. Pay additional taxes A. 150 districts
D. Evade taxes B. 200 districts
510. Classify the economic sector based on C. 250 districts
ownership? D. 625 districts
A. Private Sector 516. In how many districts central government
B. Public Sector made a law implementing the Right to
Work?
C. Both [i]&[ii]
A. 655
D. Only [i]
B. 629
511. Which activities come under Agriculture C. 642
and allied sector?
D. 625
A. Diary farming
517. Like any other commodity, the price of
B. Making sugar from sugarcane currency depends upon
C. Transporting milk to the Milk coopera- A. Demand
tive
B. Supply
D. Mineral excavation
C. Both
512. Which sector is the largest employer D. None
A. Secondary sector 518. Choose the correct sentence from the fol-
B. private sector lowing.
C. Primary sector A. In India primary sector is the largest
employe while the tertiary sector is the
D. Tertiary sector
largest income generator.
513. THE NUMBER OF DAYS OF EMPLOYMENT B. In India secondary sector is the
GUARANTEE BY GOVERNMENT AS PER largest employe while the tertiary sector
NREGA 2005 IS is the largest income generator.

C. In India primary sector is the largest B. Both assertion & reason are true but
employe while the secondary sector is the reason is not the correct explanation of
largest income generator. assertion.

D. In India tertiary sector is the largest C. Assertion is true but reason is false.
employe while the primary sector is the D. Assertion is false but reason is true.
largest income generator.
519. What is the secondary sector?
523. Which collar workers are included in the
A. Production of a good by exploiting nat- Primary sector?
ural resources
A. White collar workers
B. Activities in which natural products
B. Blue collar workers
are changed into other forms through
ways of manufacturing C. Red collar workers
C. Activities, by themselves, do not pro- D. none of above
duce a good but they are an aid or support 524. Production of a commodity through ex-
for the production process. ploitation of natural resources is an activ-
D. Mineral excavation ity in the
520. Find the odd one out. A. primary sector
A. Tourist Guide B. secondary sector
B. Dhobi C. tertiary sector
C. Tailor D. Information Technology sector
D. Potter 525. Which of the following occupations can-
not be included in tertiary sector?
521. In recent times secondary sector shows a
growth by 9 times and tertiary sector by A. Transporter
14 times but in case of employment B. Basket weaver
A. secondary sector grew by 5 times and C. Courier
tertiary sector by 3 times D. Call center employee
B. Tertiary sector 5 times and secondary
526. What are the groups of classification of
sector by 3 times
an economy called?
C. Secondary sector 5 times and tertiary
A. Centers
sector 5 times.
B. Sectors
D. none of above
C. Components
522. Assertion:The development of agriculture
D. Elements
and industry leads to the development of
service sector. Reason:As the primary and 527. The workers which work in the sec-
secondary sectors develops, the demand ondary sector are known as?
for transport, storage structures, banks,
A. Pink collar workers
insurance, etc., increases.
B. White collar workers
reason is the correct explanation of asser- C. Blue collar workers
tion. D. none of above

528. What is GDP? B. Planning Commission

A. The value of goods produced in the pri- C. Mandal Commission
mary sector D. Ministry of Communication
B. The value of final goods
534. Which sector of the economy in India
C. The budget of the government bears most of the workforce?
D. Both (A) and (B) A. Tertiary Sector
529. The share of the private sector in In- B. Primary Sector
NARAYAN CHANGDER
dia’s GDP presently has been estimated at C. Secondary Sector
about
D. All of the above
A. 30 percent
535. The secondary sector is also called
B. 45 percent
A. Organised sector
C. 75 percent
B. Service sector
D. 85 percent
C. Industrial sector
530. Under which economic sector does the D. Public sector
production of a commodity through the nat-
ural process come? 536. Greater the development of the primary
and secondary sectors,
A. Primary sector
A. Equal
B. More
C. Tertiary sector
C. Less
D. none of above
D. Uneven
531. What does a private limited company aim
to do? 537. CHOOSE ONE CORRECT STATEMENT
FROM THE FOLLOING:UNEMPLOYMENT
A. Maximise profits OCCURS-
B. To promote awareness of “good A. WHEN PEOPLE ARE NOT WILLING TO
causes” WORK
532. Which of the following brings a rapid in- B. WHEN PEOPLE ARE WORKING
crease in the national income of the coun- SLOWLY
try C. WHEN PEOPLE ARE WORKING LESS
A. Business growth THAN WHAT THEY ARE CAPABLE OF DO-
ING
B. Industrial Policy
D. WHEN PEOPLE ARE NOT PAID OR
C. Industrial growth
THEIR JOBS
D. Industrial Revolution
538. Which one is a primary occupation?
533. A study by estimates that nearly 20
A. Tailor
lakh jobs can be created in the education
sector alone.Which government body gave B. Basket weaver
this report? C. Flower cultivator
A. ASI D. Milk vendor

539. GDP is the total value of produced B. no

during a particular year C. maybe

A. all intermediate goods and services D. Either (A) or (B)
B. all final goods and services
C. all goods and services
A. Jet Airways
D. none of above
B. MTNL
540. A labourer working under a contractor, is C. BSNL
in which type of sector?
D. LIC
A. Public sector
B. Unorganised sector 546. Full form of GDP is
C. Service sector A. Gross domestic part
D. None of these B. Gross Domestic Product

C. Gross Double Product
541. Not every good (or service) that is pro-
duced and sold needs to be counted It D. All of the above.
makes sense only to include the to get 547. Economic Survey is published by the-
the total production?
A. National Sample Survey Organisation
A. values of goods and services in produc-
tion B. Ministry of Statistics
B. final goods and services C. Ministry of Finance
C. adding up the actual numbers of goods D. Ministry of Commerce & Trade
D. goods and services in the three sec- 548. Name the sector that help in the devel-
tors opment of the primary and secondary sec-
tors.
542. Find the odd one out and say why.
A. Tertiary sector.
A. Tourist guide
B. Primary sector.
B. Dhobi
C. Industrial sector.
C. Tailor
D. none of above
D. Potter
543. Planning Commission of India is known as
NITI Ayog who estimated nearly 20 lakh A. teacher
jobs can be created in the education sector B. doctor
alone. C. vegetable vendor
A. True D. lawyer
B. false
550. Protection and support of unorganised
544. Is there equal distribution of jobs in the sector is needed for the development
tertiary sector? of the people
A. yes A. Economic

1.10 Globalisation and the Indian Economy 244
B. Economic and Social C. Fixed income, Fixed work time, No for-

mal agreement
C. Social
D. none of above
D. Mental
552. Which of the following person works in
551. What does the Organised sector include? the unorganised sector in the country?
A. a teacher employed in a govt. school
A. Fixed income, Fixed work time, Fixed
formal agreement B. an engineer in Maruti Suzuki Ltd.
NARAYAN CHANGDER
B. Less income, Fixed work time, Fixed C. a domestic helper in a rich family
formal agreement D. a manager of a Nationalised Bank
1.10 Globalisation and the Indian Economy

1. Globalisation, by connecting countries, A. Growth investments
shall result in B. Investment Funds
A. lesser competition among producers C. Foreign Investments
B. greater competition among producers
D. Annuities
C. no change in competition among pro-
ducers 5. Rapid integration or interconnection be-
tween countries is known as:
D. none of above
A. Privatisation
2. Globalization so far has been more in
favour of: B. Globalisation
A. Developed countries C. Liberalisation
B. Developing countries D. Socialisation

C. Poor countries 6. World Trade Organisation (WTO) was
D. None of these started at the initiative of developing coun-
tries.
3. Amalgamation and rapid unification be-
A. True
tween countries can be identified as
B. False
A. Globalisation
B. Liberalisation 7. In recent years China has been importing
steel from India. Explain how the import
C. Socialisation
of steel by China will affect.(a) steel com-
D. Privatisation panies in China.(b) steel companies in In-
4. Investments made by MNC’s in different dia.(c) industries buying steel for produc-
countries is called- tion of other industrial goods in China.
A. Steel companies in China will face
competition and may have to lower their
prices.(b) Steel companies in India will
benefit from increased demand and may
increase their production.(c) Industries

buying steel for production of other indus- 10. Assertion:developed countries have un-
trial goods in China will have access to fairly retained trade barriers. Rea-
cheaper steel. son:WTO rules have forced the developing

countries to remove trade barriers.
B. Steel companies in China will benefit
from increased supply and may increase A. A is correct but R is incorrect
their production.(b) Steel companies in In- B. A is false and R is true
dia will face competition and may have
C. Both A & R are true.
to lower their prices.(c) Industries buy-
ing steel for production of other industrial D. none of above
goods in China will have access to cheaper
11. In which year did the government decide
steel.
to remove barriers on foreign trade and
C. Steel companies in China will face com- investment in India?
petition and may have to increase their A. 1992
prices.(b) Steel companies in India will
B. 1993
benefit from increased demand and may
decrease their production.(c) Industries C. 1995
buying steel for production of other indus- D. 1991
trial goods in China will have access to
more expensive steel. 12. SEZ may prove harmful to the farmers
whose lands have been acquired and to the
D. Steel companies in China will benefit small producers.
from decreased supply and may decrease
their production.(b) Steel companies in In- A. True
dia will face competition and may have B. False
to increase their prices.(c) Industries buy-
ing steel for production of other industrial 13. Removing Barriers or restrictions from for-
goods in China will have access to more eign trade is called Privatization of foreign
expensive steel. Trade.
A. True
8. Which of the following factors has not fa- B. False
cilitated globalisation?
14. Suppose the Indian government puts the
A. Technology tax on the import of toys from China, what
B. Liberalisation of trade would happen?
C. WTO A. Toys will get cheaper, more purchase

by a customer
D. Nationalisation of banks
B. Toys will get expensive, less purchase
by a customer
9. Fair globalisation refers to ensuring bene-
fits to: C. Toys will get expensive, more pur-
chase by a customer
A. labourers
D. No effect
B. producers
15. Which one is false?
C. consumers
A. MNCs acquire small companies to ex-
D. all the above pand production

B. MNCs enter into joint venture to enter B. Investment

into foreign markets C. Fovourable trade
C. MNCS offer subsidy to the small scale D. Free trade
industries
21. All buy and sell goods.
D. MNCs set up own production center in
foreign countries A. People
B. Villages
16. A is a company that owns or con-
NARAYAN CHANGDER
C. Businesses
trols production in more than one na-
tion/country. D. Nations
A. Reliance 22. Selected areas created and are equipped
B. Microsoft with world class facilities are called
A. Special Economic Zones
C. MNC
B. Electronic Capital
D. Uni Lever
C. IT centers
17. Removing barriers or restrictions set by D. none of above
the government is called-
23. Find the odd one
A. Investment
A. tourist guide
B. Liberalisation
B. dhobi
C. Free Trade
C. tailor
D. Favourable Trade
D. potter
18. Which of the following has played a big 24. ‘Increased job opportunities’ is an impact
role in organising production across the of
country?
A. Privatisation
A. WTO
B. Globalisation
B. Domestic companies C. Liberalisation
C. Information technology D. Industrialisation
D. Consumers
25. Special Economic Zones (SEZs) are being
19. A nation may put a limit on the amount of set up to attract
foreign goods imported by placing a on A. foreign tourists
these goods. B. foreign investment
A. Export C. foreign goods
B. Quota D. foreign policies
C. Deficit 26. Investment made by MNCs are termed as-
D. Trade Surplus A. Indigenous Investment
20. Removing barriers or restrictions set by B. Foreign Investment
the government is called: C. Entrepreneurial Investment
A. Liberalisation D. None of These

27. Define trade. B. Fun Foods Ltd.

A. To bring “merchandise” from a foreign C. Agro Tech Foods Ltd.

or external source-into a place or country
D. Parakh Foods
from another country.
B. To buy/sell something:exchange 33. Which of the following organisations lays
something for something else. stress on liberalisation of foreign trade
C. To carry or send-as a commodity-to
some other place, such as another coun- A. International Labour Organisation
try. B. International Monetary Fund
D. none of above C. World Health Organisation
28. Large companies that have their presence D. World Trade Organisation
in more than on country are called
34. What is happening with the import of Chi-
A. Large National Companies
nese toys in India?
B. Multi National Corporations
A. Indian toys are selling more
C. Multi International Companies
B. Indian consumers are buying less
D. none of above
C. Indian consumers are getting more
29. Globalisation results in choice at cheaper rates
A. inflow of labour from abroad D. Chinese consumers are falling short of
B. inflow of capital from abroad choice
C. inflow of tourists from abroad 35. A furniture factory is an example of
D. all the above A. Primary Industry
30. find the odd one out B. Secondary Industry
A. Jet Airways C. Tertiary Industry
B. MTNL D. Quaternary Industry
C. BSNL
36. Globalisation has led to improvement in
D. LIC
A. choice to consumers
31. NAFTA was made among B. quality of goods and services
A. The U.S., Canada, and Mexico C. foreign investment
B. European Countries D. all the above
C. Developing Countries
37. Globalisation has led to higher standards
D. The U.S., Russia, and China
of living of:
32. Which Indian company was bought over by A. well-off consumers
Cargill Foods-a large American MNC? Pick
B. poor consumers
out the name from the alternatives pro-
vided. C. big producers
A. Amul D. small producers

38. SEZ stands for 43. Cargill Foods, an MNC has bought over
A. Special Economic Package which indigenous Indian company?
B. Special Economic Zone A. Amul
C. Special Ecology Zone B. Britannia
D. none of above C. Parakh Foods
39. markets are a trait of the global econ- D. Dabur

omy.
NARAYAN CHANGDER
44. Fisheries is an example of
A. World Wide
A. Primary Industry
B. Local
B. Secondary Industry
C. Regional
C. Tertiary Industry
D. Isolated
D. Quaternary Industry
40. refers to all those different economic
reforms or policy measures and changes 45. The factors of production for MNC’s are:
which aim at increasing the productivity
and efficiency by creating an environment
of competition in the economy.
A. Mixed Economy
B. New Economic Policy
C. Closed Economy
A. Cheap skilled and unskilled labour
D. Globalisation
B. Proximity of markets
41. What is the definition of globalisation in C. Favourable government policies
this chapter?
D. All of the above
A. The integration between countries
through foreign trade and foreign in- 46. “MNCs keep in mind certain factors before
vestments by multinational corporations setting up production”. Identify the incor-
(MNCs) rect option from the choices given below
B. The rapid rise and influence of MNCs A. Proximity to markets
in the globalisation process
B. Availability of cheap skilled and un-
C. The interconnectedness of regions skilled labour
across the world in various dimensions
C. Favourable government policies
D. The integration of production and mar-
kets through MNCs D. Presence of a large number of local
competitors
42. Globalisation has led to improvement in
living conditions- 47. Fair Globalisation in WTO is a fight against
A. Of all the people A. Dissimilarity in interests
B. Of people in the developed countries B. Domination of developed countries
C. Of workers in the developing countries C. Implementation of tax
D. None of the above D. Developing countries

48. “MNCs keep in mind certain factors before 53. Cotton cultivation falls under sector.
setting up production”. Identify the incor-
A. Service sector
rect option from the choices given below

A. Availability of cheap skilled and un- B. Tertiary
skilled labour C. Primary
B. Proximity to markets D. Government
C. Presence of a large number of local
competitors 54. Globalisation has led to improvement in
D. Favourable government policies living conditions:
A. of all the people
49. Which one of the following is not charac-
teristic of‘ Special Economic Zone’? B. of people in the developed countries
A. They do not have to pay taxes at all C. of workers in the developing countries
B. Government has allowed flexibility in D. none of the above.
labour laws.
C. They have world class facilities. 55. Which one of the following is not charac-
D. Government allows flexibiilty of labour teristic of‘Special Economic Zone’?
laws A. They do not have to pay taxes for long
50. If tax is imposed on Chinese toys, what period.
will happen? B. Government has allowed flexibility in
A. Chinese toy-makers will benefit labour laws.
B. Indian toy-makers will prosper C. They have world class facilities.
C. Chinese toys will remain cheap D. They do not have to pay taxes for an
D. Indian consumers will buy more Chi- initial period of five years.
nese toys
56. Tax on imports is an example of
51. The Central and state governments in India
have set up to attract foreign compa- A. Terms of trade
nies to invest in India? B. Collateral
A. Special investment zones C. Trade barriers
B. Special economic zones
D. none of above
C. Special business zones
D. Special trade zones 57. The most common route for investments
by MNCs in countries around the world is
52. refers to exchange of goods, i.e., pur- to
chase and sale, across geographical bound-
aries of the countries. A. set up new factories.
A. Trade B. buy existing local companies.
B. Foreign trade C. form partnerships with local compa-
C. Local trade nies.
D. State trade D. None of the above

58. Which out of the following is an example 64. Chinese are exporting electrical goods and
of a trade barrier? other consumer goods in the Indian mar-
A. Foreign investment ket in a big way. It is posing problems for
India and Indian manufacturer.
B. Delay or damage of goods
A. True
C. Tax on imports
D. None of these B. False
59. Liberalisation is 65. Cheaper imports, inadequate investment
NARAYAN CHANGDER
A. more trade in infrastructure lead to
B. removing barriers or restrictions set A. slowdown in agricultural sector

by the government B. replace the demand for domestic pro-
C. checking barriers by the government duction
D. help by the government C. slowdown in industrial sector
60. The reason due to which multinational com- D. All the above
panies set up their branches in other coun-
tries is 66. In developed countries like the USA and
Australia, which sector do most people
A. cheap labour and resources
work in?
B. welfare motive
A. Primary Sector
C. to generate employment
B. Secondary Sector
D. to generate income
C. Tertiary Sector
61. Special Economic Zones (SEZ) developed
by the Government of India aim: D. Quaternary
A. to attract foreign companies to invest
67. Deregulation of Industries’ is a feature of
in India
economic reforms introduced in 1991 in In-
B. to encourage small investors dia.
C. to encourage regional development A. True
B. False
62. Globalization has largely favored the rich,
highly educated and skilled persons of the 68. Why do MNCs set up offices and factories
society. in more than one nation?
A. True A. The cost of production is high and the
MNCs can earn profit
B. False
B. The cost of production is low and MNCs
63. MNC stands for undergoes a loss
A. Multinational Corporation
C. The cost of production is low and the
B. Multination Corporation MNCs can earn greater profit
C. Multinational Cities D. The MNCs want to make their pres-
D. Multinational Council ence felt globally

69. What attracts an MNC? 74. Assertion(A):In India, the primary sec-
A. Cheap labour tor is the largest employer.Reason(R):The
demand for services has increased enor-

B. Cheap raw material mously.
C. Closer to the Market A. Both A and R are true and R is the cor-
D. All of these rect explanation of A.
70. Which of the following organisations lays B. Both A and R are true and R is not the
stress on the liberalisation of foreign trade correct explanation of A.
and foreign investment? C. A is true but R is false.
A. World Health Organization (WHO) D. A is false but R is true.
B. WorldTrade Organisation (WTO)
75. What was the main channel connecting
C. International Labour Organisation
countries in the past?
(ILO)
D. All of these A. Labour
B. Religion
71. Which of the following is not a feature of
a Multi-National Company? C. Technology
A. It owns/controls production in more D. Trade
than one nation.
B. It sets up factories where it is close to 76. What is the advantage of spreading out
the markets. production across borders for MNCs?
C. It organises production in complex A. It allows MNCs to tap into the advan-

ways. tages of large markets, lower production
costs, and availability of resources in dif-
D. It employs labour only from its own ferent countries
country.
B. It enables MNCs to control production
72. Mc Donald’s is an example of a multina- and exert influence on distant producers
tional corporation.
C. It provides opportunities for interlink-
A. true ing production across countries
B. false D. It allows MNCs to buy up local compa-
73. How do big private companies contribute nies and expand production
products through advertisements A. 1990
B. By increasing their profits. B. 1998

C. By increasing productivity of the coun- C. 2000
try in the manufacturing of industrial D. 2005
goods
D. By providing private hospital facilities 78. Which country has affected the toy indus-
for the rich. try in India adversely?

82. Globalization was stimulated by

A. Money
B. Transportation
C. Population
D. Computers
83. MNCs do not increase
NARAYAN CHANGDER
A. Competition
A. China B. Price war

C. Quality
B. USA
C. Japan
84. Examples of industries where production
D. Canada
is carried out by a large number of small
producers around the world.
79. When did the Indian Government intro-
duced a policy of liberalisation known as A. Garments
‘New Economic Policy’? B. footwear
A. 1980 C. Sports items
B. 2000 D. All of the above
C. 1994 85. Removing barriers or restrictions set by
the government is what is known as
D. 1991
A. liberalisation
80. Foreign trade creates an opportunity B. globalisation
A. Producers can sell their produce not C. socialisation
only in markets located within the country
but can also compete in markets located
in other countries of the world 86. The money spent on buying assets such as
land, building, machinery etc is known as
B. For the buyers, import of goods pro-
duced in another country is one way of ex- A. capital
panding the choice of goods, at cheaper B. rent
price
C. investment
C. Both are correct D. production
87. The industrial zones which are set up to
81. When was the WTO established? attract the foreign investment are known
as
A. 1985
A. SIPCOT
B. 1995 B. Industrial Zone
C. 2000 C. Special Economic Zone
D. 2005 D. SISCO

88. MNCs bring with them the latest technol- B. 149

ogy and Investment for production. C. 159

A. True D. 169
B. False
94. What is the basic function of foreign
89. The primary driver of globalization is trade?
A. natural resources A. To create an opportunity for producers
B. technology to reach beyond domestic markets and
compete in markets located in other coun-
C. communication tries
D. none of above B. To facilitate the integration of markets
and the interlinking of production across
90. To check the free flow of Chinese goods in
countries
the Indian markets, what the Indian gov-
ernment can do? C. To provide consumers with a wide
choice of goods and services
A. Ban trade with China
D. To attract foreign investment and pro-
B. Impose tax on imports
mote economic development
C. Impose tax on exports
95. Which of the following industries have
D. Complain to UNO
been hard hit by foreign competition?
91. What does outsourcing and offshoring A. Dairy products
mean for you?
B. Leather industry
A. Nothing, USA will always be number
C. Cloth industry
one
D. Vehicle industry
B. We compete for our jobs with people
all over the world 96. Which sector has not benefited by the pol-
C. I get to own a boat icy of globalisation?
D. I get my own resources A. Agricultural sector
B. Manufacturing sector
92. The most common way to control produc-
tion by MNCs is C. Service sector
A. set up production with the local com- D. All the above
pany
97. Liberalization does not include
B. buy the local company
A. Removing trade barriers
C. place order for production with small
producers B. Liberal policies
D. compete with the local company C. Introducing quota system

D. Disinvestment
93. By 2006, how many countries were the
members of the World Trade Organisa- 98. A company that owns or controls produc-
tion? tion in more than one nation is called:
A. 139 A. multinational corporation

B. joint stock company 103. Rapid integration and connection be-

tween countries is known as
C. global company
A. Liberalisation
D. none of these
B. Investment
99. The essential Functions of WTO is/are: C. Interrelation
A. acting as forum for multinational trade D. Globalisation
negotiations.
104. Investment means spending on
NARAYAN CHANGDER
B. implementing the multilateral trade
agreements. A. land
C. seeking to resolve trade disputes. B. building

C. machines
D. co-operating with other international
agencies of economic policy making. D. all of the above
100. is the interconnection of the global 105. Integration of markets means

economy. A. wider choice of goods
A. Global Studies B. operating beyond the domestic mar-
kets
B. Global
C. price of the product tend to become
C. Market
equal
D. Globalization D. all the above
101. Indian government felt the need for re- 106. The main reason behind MNCs invest-
moving barriers on foreign trade and for- ments are
eign investment in
A. To benefit foreign countries
A. 1990 B. To provide financial support to the
B. 1991 country’s government
C. 1992 C. For the welfare of underprivileged peo-
ple.
D. 1993
D. To increase the assets and earn prof-
102. The factors of production for MNC’s are: its.
107. Tax on imports can be treated as

A. Collateral
B. Trade Barriers
C. Foreign Trade
D. Terms of Trade
A. Cheap skilled and unskilled labour
108. An important factor causing globalisation
B. Proximity of markets is
C. Favourable government policies A. more income
D. Dry climatic conditions B. expansion of markets

C. technological development D. none of above

D. urbanisation 114. Globalisation will result in

109. Which among the following is NOT a fac- A. more competition among producers
tor that promote MNCs to set up their pro-
B. less competition among producers
duction unit?
A. Proximity of market.
ducers
B. Availability of labour
D. to generate income
C. Favourable Government Policies
115. Why all major multinationals are Ameri-
D. Trade barrier
can, Japanese or European, such as Nike,
110. Till which time period, production was or- Coca-Cola, Pepsi, Honda, Nokia.?
ganised within the countries? A. They have much political influence in
A. Middle of twentieth century the world
B. End of twentieth century B. They have huge sum of money to ex-
pand their production to other countries
C. Starting of twentieth century
D. Till nineteenth century C. They have many franchises that are
supported by different governments
111. Which of the following is NOT a feature D. Their production coast is cheap be-
of a Multi-National Company? cause of advanced technology.
A. It owns/controls production in more
than one nation. 116. Mahindra & Mahindra an automobile com-
pany has a collaboration with which of the
B. It sets up factories where it is close to following MNC’s
the markets
A. BMW
C. It organises production in complex
ways. B. Ford
D. It employs labour only from its own C. Honda
country. D. Suzuki
112. Globalisation is created by 117. The most common route for investments
A. Multinational Companies by MNCs in countries around the world is
to:
B. Sharing of knowledge and technolo-
gies A. set up new factories
C. Music and film B. buy existing local companies
D. All of the responses C. form partnerships with local compa-
nies
113. Two factors that enabled Globalisation
D. None of these
A. Foreign Trade and Foreign Investment 118. Investment by a person or company

B. World Trade organisation and Exports based in another country is called
C. Development in Technology and Liber- A. Distribution

alization of Foreign Trade B. economic interdependency

C. Foreign investment 124. What is the main motive behind the in-
D. imports vestment of MNCs?
A. The main motive is to increase their as-
119. In which year did the government decide sets and earn profit.
to remove barriers on foreign trade and in-
B. The main motive is the welfare of the
vestment in India?
poor people.
A. 1990
C. The main motive of an MNC is is to of-
NARAYAN CHANGDER
B. 1980 fer financial support to the Government of
C. 1991 their country.
D. 1999 D. The main motive is to benefit foreign

countries.
120. Multinational corporations have suc-
125. Both TISCO and Reliance Industries are
ceeded in entering global markets through
owned by:
A. WTO
A. The government
B. UNO
B. Private company
C. UNESCO C. A cooperative society
D. none of the above D. Jointly by private companies and the
govt.
121. What are the advantages of globalisa-
tion? 126. Employment figures of a country are
A. Improvement in technology based on data collected from 5-yearly sur-
vey on employment and unemployment.
B. Competition among producers
Which organisation conducts this survey?
C. Creation of new job opportunities A. NSSO-National Sample Survey Organi-
D. Availability of international market sation
E. All of these B. NREGA 2005-National Rural Employ-
ment Guarantee Act, 2005
122. Entry of MNCs in a domestic market may
C. ILO-International Labour Organisation
prove harmful for
D. Census of India
A. all large scale producers
B. all domestic producers 127. FDI (Foreign Direct Investment) attracted
by globalisation in India belongs to the
C. all substandard domestic producers
A. World Bank
D. all small-scale producers
B. multinationals
123. Which organization provides loans to de- C. foreign governments
veloping countries for capital projects?
A. The IMF
128. When did the government remove the
B. The WTO
barriers for investment and investment in
C. The GATT India?
D. The World Bank A. 1990

B. 1991 133. Investment means spending on

C. 1950 A. Factory building

D. 1999 B. machines
129. Which of the following is a ‘barrier’ on C. Equipment

foreign trade? D. All the above
A. Tax on import 134. Fill in the blank. Globalization is the re-
B. Quality control sult of several factors. Advances in com-
C. Sales tax munication & transportation have played a
big part. Another major factor is the move-
D. Tax on local trade ment toward “ “
130. International trade is an important part A. free trade
of globalisation because B. distribution
A. It allows for countries to share tech- C. multinational corporation
nology and resources
D. imports
B. It provides raw materials for countries
to create products 135. Rapid integration or interconnection be-
C. It allows for countries to have trade tween countries is known as-
partnerships with strengthens relation- A. Privatisation
ships between countries B. Liberalisation
D. All of the responses C. Globalisation
131. Which organisation support liberalisation D. Socialization
of foreign trade and investment in India?
136. The task of collection of data in all three
A. International labour organisation sectors is done by
(ILO)
A. BPO
B. World Bank
B. UNDP
C. World Trade organisation
C. NSSO
D. International monetary fund
D. KPO
137. Any substance that makes a spectacular
dish
A. Food miles
B. Ingre
C. Diet
D. freshness
A. Service Sector 138. Entry of MNCs in a domestic market may
B. Agricultural sector prove harmful for:
C. Organised Sector A. all large scale producers.
D. Unorganized sector B. all domestic producers.

C. all substandard domestic producers. C. Globalization 3.0

D. all small scale producers. D. none of above
139. What is happening with the import of Chi- 144. Production of services across countries
nese toys in India? has been facilitated by
A. Indian toys are selling more A. Money
B. Indian consumers are buying less B. Machine
NARAYAN CHANGDER
C. Indian consumers are getting more C. Labour
choice at cheap at rates
D. Information and communication tech-
D. Chinese consumers are failing short of nology
choices
145. Globalization is not supported by
140. It refers to the globalisation which cre-
ates opportunities for all and ensures that A. Privatization
its benefits are better shared. B. Liberalization
A. Privatisation
C. Information and communication tech-
B. Special Economic Zones (SEZs) nology
C. World Trade Organisation (WTO) D. None of these
D. Fair globalisation
146. What is the role of MNCs in the globali-
141. The process of rapid integration or inter- sation process?
connection between countries through free A. MNCs play a major role in promoting
trade, free mobility of capital and labour is globalisation by investing in foreign coun-
called tries, establishing production facilities,
A. Foreign trade and facilitating the exchange of goods and
services between countries.
B. Liberalisation
C. Globalisation B. MNCs have no role in the globalisation
process.
D. Privatisation
C. MNCs hinder the globalisation process
142. How is a tariff best described? by creating trade barriers and restricting
A. A tax on imports the flow of goods and services between
countries.
B. A violation of human rights
D. MNCs only benefit from the globalisa-
C. Comparative Advantage tion process without contributing to it.
D. Contributing to a favorable balance of
trade 147. Which of the following contributes to
globalisation?
143. According to Friedman (2005), this phase
A. internal trade
continues to spread globalization due to
technologies like fiber-optic network. B. external trade
A. Globalization 1.0 C. large scale trade
B. Globalization 2.0 D. small scale trade

148. Which one of the following is not true re- A. Both A and R are true and R is the cor-
garding the World Trade Organisation? rect explanation of A.

A. It allows free trade to all countries B. Both A and R are true and R is not the
without any trade barriers. correct explanation of A.
B. Its aim is to liberalise international C. Assertion is true, but reason is false.
trade.
D. Assertion is false, but reason is true.
C. It establishes rules regarding inter-
naional trade.
153. Countries impose restriction or barrier on
D. WTO rules have forced the developing foreign trade by
countries to remove trade barriers.
A. Applying High rate of interest
149. Which one of the following is a major B. Banning import and export of certain
benefit of joint production between a local goods
company and a Multi-National Company?
C. banning trade with certain countries
A. MNC can bring latest technology in the
production D. All of the above
B. MNC can control the increase in the
price 154. Which Indian company was bought over
by Cargill Foods-a large American MNC?
C. MNC can buy the local company Pick out the name from the alternatives
D. MNC can sell the products under their provided
brand name
A. Amul
150. Investments made by MNCs are termed B. Fun Foods Ltd.
as:
C. Agro Tech Foods Ltd.
A. Indigenous investment
D. Parakh Foods
C. Entrepreneur’s investment 155. Where do MNCs choose to set up produc-
D. None of the above tion?
151. World Trade Organisation (WTO) was A. Cheap goods

started at the initiative of which one of B. Cheap labour resources
C. Economic sustainability
A. Rich countries
D. None of these
B. Poor countries
C. Developed countries 156. Globalisation has led to improvement in
D. Developing countries living conditions:
A. of all the people
152. Assertion(A):There are several goods
and services that the society needs; how- B. of people in the developed countries
ever, the private sector does not produce
C. of workers in the developing countries
all of them.Reason(R):Private sector is
profit driven. D. none of the above.

157. The most common route for investments 162. Selling of goods to any other country is
by MNCs in countries around the world is called
to: A. Export
A. place orders to small companies B. Import
B. set up new factories. C. Collateral
C. buy existing local companies. D. none of above
D. form partnerships with local compa- 163. Globalisation leads to rapid movements
NARAYAN CHANGDER
nies. of the following between countries:
158. World Trade Organisation (WTO) was A. goods and services
started at the initiative of which one of B. investments
the following group of countries? C. people
A. Developed D. all the above
B. Developing 164. The past two decades of globalisation
C. Under Developed has seen rapid movements in:
D. Poor A. goods, services and people between
countries
159. World Trade Organisation (WTO) was B. goods, services and investments be-
started at the initiative of which one of tween countries
C. goods, services and people between
A. Rich Countries countries
B. Poor Countries D. none of the above
C. Developed countries 165. An MNC is a company that owns or con-
D. Developing Countries trols production in
A. one country
160. In the past few years, WTO has influ-
enced important decisions relating to trade B. more than one country
and investments. Why? C. only developing countries
A. demonstrated organised by asian D. only developed countries
countries
166. technology has played a major role
B. massive campaigns and representa- in spreading out production of services
tion by people’s organisations across countries.
C. Developing countries have created al- A. Transport
ternative solutions against MNCs. B. Information and communication
D. none of above
167. SEZs are related from-
161. Globalization is posing challenging to the A. Export Promotion
and of the country. B. Education Promotion
A. autonomy and sovereignty C. Health Infrastructure
B. Autonomy and Sovereignty D. Defence Equipment

168. Due to globalisation, what is moving be- 173. Ford Motors entered the Indian automo-
tweencountries? bile business in collaboration with which
Indian manufacturer?

A. Investment
A. Mahindra and Mahindra
B. Technology
B. Tata Motors
C. Goods
C. Maruti Suzuki
D. Services
D. Hindustan Motors
E. People
174. The term Globalization means integra-
tion of domestic economy with rest of the
world through:
A. trade
B. capital
C. technology flows
D. none of above
175. Choose the incorrect statement.
A. teacher
A. MNCs have increased their invest-
B. doctor ments in India over the past 20 years,
C. vegetable vendor which means investing in India has been
beneficial for them.
D. lawyer
B. Globalisation and greater competition
170. WTO aims at: among producers-both local and foreign
A. establishing rules for domestic trade producers-has been of advantage to con-
sumers, particularly the well-off sections
B. restricting trade practices in the urban areas.
C. liberalising international trade C. Government has also allowed flexibil-
D. none of these ity in the labour laws to attract foreign in-
vestment.
171. Which Indian company was bought over D. several of the top Indian companies
by Cargill Foods-a large American MNC? have been able to drawback from the
A. Amul increased competition. They have in-
vested in newer technology and produc-
B. Britannia tion methods and raised their production
C. Agro Tech Foods Ltd. standards.
D. Parakh Foods 176. What are the positive impact of Liberali-
sation?
172. Foreign Trade
A. Increase in GDP
A. Increases choice of goods B. Increase in Production
B. Decreases prices of goods C. Technological Advancement
C. Increases competition in the market D. Increase in foreign Investment
D. Decreases earnings E. All of these

177. Tax on imports is an example of A. Foreign Trade

A. Investment B. Multinational Trade
B. Disinvestment
C. Global Trade
C. Trade barrier
D. Privatization D. none of above
178. This aspect of globalization focuses on

183. Rapid integration or interconnection be-
the exchange of goods and services.
NARAYAN CHANGDER
tween countries is known as:
A. Economic
B. Political A. Privatisation
C. Socio-cultural B. Free trade
D. none of above
C. Globalisation
179. SEZ stands for
D. Liberalisation
A. Special economic package
B. Special economic zone 184. Special Economic Zones (SEZ) developed
C. Special ecology e zone by the Government of India aim
D. None of these A. to attract foreign companies to invest
180. The main aim of World Trade Organisa- in India
tion is
B. to encourage small investors
A. To liberalise international trade
C. to encourage regional development
B. To increase the export
C. To increase the import D. none of the above
D. To increase the unity between the
countries 185. pick the odd one
181. Which of the following is an example of A. Delhi metro Rail corporation
Trade Barrier?
B. Delhi transport Corporation
A. Tax on Imports
B. Custom Duty C. Satyam Computers
C. Transit Permits D. Air india
D. All of the above
182. has been the main channel for con- 186. What was the main channel connecting
necting countries. countries in the past? How is it different
now?
A. By sea routes; By air routes
B. By land routes; By sea routes
C. By air routes; By land routes
D. By rail routes; By sea routes

187. A SECONDARY Industry is C. all intermediate goods and services

A. an industry that converts raw materi- D. all final and intermediate goods and

als into commodities and products for the services
consumer
192. This aspect of globalization focuses on
B. an industry that is concerned with ob- the distribution of ideas and way of life.
taining or providing natural raw materials
A. Economic
C. an industry that is concerned with the
B. Political
provision of services
C. Socio-cultural
D. an industry concerned with providing
information services D. none of above
193. Why do MNCs set up offices and factories
188. Removing barriers or restrictions set by
in more than one nation?
the government is known as
A. The cost of production is high and the
A. Globalisation
MNCs can earn profit.
B. Privatisation
B. The cost of production is low and the
C. Liberalisation MNCs undergoes a loss.
D. none of above C. The cost of production is low and the
MNCS can earn greater profit.
189. Small Scale industries face competition
from D. The MNCs want to make their pres-
ence felt globally.
A. Rising prices
194. Globalisation results in
B. Cheap imports
A. lesser competition among producers
C. Exports
D. Subsidy
190. What is the main motive behind the in- ducers
vestments of MNCs? D. none of the above
A. The main motive is to increase their as-
195. Which one of the following has benefited
sets and earn profits.
least because of globalisation in India?.
B. The main motive is the welfare of the
A. Agriculture Sector
poor people.
B. Industrial Sector
C. The main motive of an MNCs is to of-
fer financial support to the government of C. Service Sector
their country. D. Secondary Sector
D. The main motive is to benefit foreign 196. New Economic policy was initiated in the
countries. year.
191. GDP is the sum total of the value of A. 1991
produced during a particular year. B. 1990
A. all goods and services C. 1988
B. all final goods and services D. 1980

197. Ehich benefits enjoyed by a local company 203. find the odd one out
in a joint production with a MNC- A. engineering
A. Additional investment
B. welding
B. Latest technology
C. gem cutting
C. International market
D. driving
D. All of these
204. This helps to create an opportunity for
NARAYAN CHANGDER
198. ‘The impact of Globalisation has not been the producers to reach beyond the domes-
fair.’ Who among the following people tic market
have not benefitted from globalisation?
A. Foreign trade
A. Well off consumers
B. Domestic trade
B. Small producers and workers
C. Internal trade
C. Skilled and educated producers
D. Trade barrier
D. Large wealthy producers
205. Assertion(A):Leela works five days a
199. Foreign trade connects the markets
week, receives her income on the last day
A. In the country of each month and gets medical facilities
B. Among neighbouring countries from her firm.Reason(R):Leela is working
in the organized sector.
C. Between two countries
D. In different countries
200. A law firm is an example of B. Both A and R are true and R is not the
A. Primary Industry correct explanation of A
B. Secondary Industry C. Assertion is true, but reason is false.
C. Tertiary Industry D. Assertion is false, but reason is true.
D. Quaternary Industry 206. MNCs are investing in India because of
201. BPOs have benefited growth of:
A. local companies A. the cheaper production costs
B. national companies B. Plenty of raw materials

C. MNCs C. good government policies
D. none of these D. none of above
202. Which one of the following organizations 207. ‘The impact of Globalisation has not been
lay stress on liberalization of foreign trade fair.’ Who among the following people
and foreign investment? have not benefitted from globalisation?
A. International Monetary Fund A. Well off consumers
B. International Labour Organisation B. Skilled and educated producers
C. World Health Organisation C. Small producers and workers
D. World Trade Organization D. Large wealthy producers

208. Service is both 214. Which one among the following is a far
A. tangible reaching change in the policy made in India
in 1991?

B. intangible
C. physical product A. Removing barriers or restrictions set
by the government which is known as lib-
D. both 1 and 2 eralisation.
209. Which one of the following organisations B. Put barriers to foreign trade and for-
lay stress on liberalisation of foreign trade eign investments.
C. Restrictions set by the government to
A. International Monetary Fund
protect the producers within the country
B. International Labour Organisation from foreign competition.
C. World Health Organisation D. By giving protection to domestic pro-
D. World Trade Organisation ducers through a variety of means.
210. Which factor might attract a multina-
215. The past two decades of globalisation
tional corporation to a country?
has seen rapid movements in:
A. Good tourist attractions.
A. goods, services and people between
B. Cheap raw materials.
countries
C. High average monthly wage.
B. goods, services and investments be-
D. none of above tween countries
211. True or False Globalisation is created by C. goods, services, investments and peo-
TRADE. ple between countries
A. True
D. none of these
B. False
212. What function do the World Bank and In- 216. What is the aim of World Trade Organi-
ternational Monetary Fund serve? sation (WTO)?
A. Give loans to developing countries A. To promote Health facilities
B. Subsidize global corporations B. To liberalize International Trade
C. Act as a slush fund for international C. Domestic infrastructure
politicians
D. Finance refugee operations and relief D. To Increase Literacy
efforts
217. Benefits enjoyed by companies who set
213. Why did the Indian Government re- up production units in the SEZs are:
stricted foreign trade after independence?
A. they do not have to pay taxes for some
A. to protect domestic producers years
B. to increase competition
B. reduction in excise duty
C. to know the international level of qual-
ity C. reduced tariffs and barriers
D. all of the above D. none of the above

218. Which one of the following refers to in- B. buying existing local companies
vestment? C. form partnerships with local compa-
A. The money spent on religious cere- nies
monies D. none of the above
B. The money spent on social customs.
223. Globalisation by connecting countries
C. The money spent to buy assets such as
leads to:
land
A. lesser competition among producers
NARAYAN CHANGDER
D. The money spent on household goods
219. Due to globalisation, what is moving be-
C. no competition between producers
tweencountries?
D. none of these
224. Ford motors wanted to collaborate with

which Indian company?
A. People Investment
B. Technology
C. Goods services
D. All of the above A. Hyundai India
B. Mahindra Mahindra
220. Which organisations strain on the liberal-
isation of foreign investment and foreign C. Maruti Suzuki
trade? D. Tata Motors
A. International Monetary Fund
225. The most common route for investments
B. World Health Organisation by MNCs in countries around the world is
C. World Trade Organisation to:
D. International Labour Organisation A. set up new factories
B. buy existing local companies
the government is called C. form partnerships with local compa-
nies
A. Liberalisation
D. both (a) and (b)
B. Investment
C. Favourable trade 226. In which year Indian Government an-
nounced New Economic Policy (NEP)
D. none of above
A. 1991
222. The most common route for investments
by MNCs in countries around the world is B. 2001
to C. 2011
A. set up new factories D. 1981

227. which sector has considerably grown in B. of people in the developed countries
recent years C. of workers in the developing countries

A. primary D. none of the above
B. secondary
233. Globalisation is a process of rapid or
C. teritary between the countries.
D. public sector A. integration or interconnection
228. What factor is considered by MNC before B. intersection or interrelation
establishing the plant in another nation C. Interaction or intermingling
A. skilled and semi skilled labours at low D. none of above
cost
234. Cargill Food’s is the largest producer of
B. Availability of resource such as raw which of the following in India?
materials
A. Medicines
C. Governmental Policies
B. Asian Paints
D. All of these
C. Edible oil
229. Which of the following is a barrier on in- D. Garments
ternational trade?
235. Which among the following are factors
A. Tax on import that enabled globalisation?
B. Tax on local trade A. Improvement in transport technology
C. Quality control tax B. Development of information and com-
D. Sales tax munication technology
C. Liberalisation
230. Which one of the following categories
refers to investment? D. All of the above
A. The money that is spent to buy assets 236. What will happen if the government fails
such as land, building, machines, etc. to provide 100 days employment under
B. The money that is spent on religious MGNREGA?
ceremonies. A. No extra benefit will be given
C. The money that is spent on social cus- B. The officer-in-charge will be punished
toms. C. Unemployment allowance will be given
D. The money that is spent on household D. Food grains will be provided
goods.
237. How do MNCs spread their production to
231. ‘Increase in GNP’ is a positive impact of other countries?
liberalisation A. By setting up partnerships with local
A. True companies, using local companies for sup-
B. False plies, competing with local companies, or
buying them up
232. Globalisation has led to degradation of B. By dividing the production process into
living conditions: small parts and spreading it across the
A. of all the people globe

C. By placing orders for production with

small producers in developing countries
D. By investing in foreign countries and
setting up factories and offices for produc-
tion
238. Which MNC is the largest producer of ed- A. Nestle

ible oil in India?
NARAYAN CHANGDER
B. Parakh foods
C. Amul
D. None of these
242. have been a Major force in the global-

isation process connecting distant regions
of the world?
A. Traders
A. Parakh Foods B. International companies
B. Mahendra C. MNCs
C. Amul D. Business houses
D. Cargill 243. Infosys (IT) and TATA Motors (Automo-
bile) are examples of Indian-
239. Globalization has brought economic A. Domestic Companies
growth to many developing countries.
This has meant jobs for millions of peo- B. Local Companies
ple. It has also increased “ “ among C. Multi Sectoral Companies
countries. D. Multinational Corporations (MNCs)
A. imports & exports
244. Which one of the following refers to in-
B. multinational corporations vestment?
C. economic interdependence A. The money spent on religious cere-
monies
D. none of above
B. The money spent on social customs
240. Rapid integration and connection be- C. The money spent to buy assets such as
tween countries is known as land
A. Liberalisation D. The money spent on household goods
B. Investment 245. Globalization has led to a variety of

goods.
C. Globalisation
A. lesser
D. Interrelation B. smaller
241. Cargill Foods, an American MNC, brought C. wider

up which Indian local company D. restricted

246. When goods travel from one market to 251. Special economic zones are being set up
another, the prices of similar goods in the to attract
two marketstend to become-

A. Foreign tourists
C. Foreign goods and services
D. Foreign policies
252. What has contributed to the rise in the
global flow of information?
A. Natural Resources
A. expensive B. Capital
B. cheap C. Money
C. equal D. New technology
D. all of the above
253. Investment means spending on:
247. A commodity, article or service brought A. Factory building
in from abroad for sale is known as B. Machines
A. Export C. Equipments
B. Import D. All of these
248. What is the principle of comparative ad- 254. Which of the following is a cost of inter-
vantage best described as governing? national trade?
A. Developed countries A. New Jobs
B. Multinational conglomerates B. More Products
C. The WTO C. Loss of Jobs
D. International trade D. Lower Prices
249. Which has played a big role in spreading 255. How do MNC’s set up production in for-
globalisation? eign countries?
A. A-Information technology (IT)

B. B-Transport technology
C. Both (a) and (b)
250. What is monopoly?

A. By setting up production jointly with lo-
A. Board game cal companies
B. Control of supply of or trade of com- B. By buying up local companies
modity or service
C. By controlling the production of local
C. being rich companies
D. Taking control D. All of the above

256. the worldwide spread of culture, eco- 260. Globalisation, by connecting countries,
nomics, and technology shall result in
A. Culturization A. lesser competition among producers
B. Urbanization B. greater competition among producers
C. Globalization C. no change in competition among pro-
ducers
D. Environmentalism
D. All of the above
NARAYAN CHANGDER
257. In developing countries like Nepal and
Nigeria, which sector do most people work 261. Which one of the following is a major
in? benefit of joint production between a local
company and a Multi-National Company?
A. Primary Sector
A. MNC can bring latest technology in the
B. Secondary Sector production
C. Tertiary Sector B. MNC can control the increase in the
D. Quaternary price
C. MNC can buy the local company
258. In the question given below, there are
D. MNC can sell the products under their
two statements marked as Assertion (A)
brand name
and Reason (R).Read the statements and
choose the correct option:Assertion:MNCs 262. A large company that has operations in
set up factories and offices for production more than one country.
in other countriesReason:It is to set up
jointly with some of the local companies
of different countries.
A. Both A and R. are true and R is the cor-
B. Both A and R are true, but It is not the
C. A is true but R is false.
D. A is false but R is true. A. Domestic Corporation
259. Which of the following is not a feature of B. Multinational Corporation
a Multi-National Company? C. Foreign Corporation
A. It owns/controls production in more D. State Corporation
than one nation.
263. Which of the following contributes to
B. It employs labour only from its own globalization?
country.
A. External trade
ways. B. Internal trade
D. It sets up factories where it is close to C. Large scale trade

the marke D. Small scale trade

264. The development of a worldwide econ- a decrease in the exchange of steel be-
omy where resources flow fairly freely tween the two countries.
across borders

C. The import of steel from India will have
no effect on the integration of markets for
steel in the two countries.
D. The import of steel from India will lead
to the complete separation of markets for
steel in the two countries.
A. Globalization 268. Which steps are treated as trade

B. Economy barriers-
C. GDP A. Decrease in foreign trade
D. Economic Independence B. Decision regarding what kind of goods
imported
265. A large company that owns or controls
C. decision regarding How much of goods
production in more than one nation is na-
imported
tion is called a-
D. All of these
B. Self Help Group 269. One major government initiative to at-
tract foreign companies to invest in India
C. Global Companies
is:
D. Non Government Organisation
A. to raise the standard of education
266. Choose the reason for which MNCs at- B. to promote unemployment in the pub-
tracted to India for investments. lic sector
A. India has educated English speaking C. to build special economic zones
people
D. both (a) and (c)
B. India has skilled professionals
C. India has lot of natural resources 270. Deregulation of Industries is a feature of
economic reforms introduce in 1991 in In-
D. All of the above dia.
267. How will the import of steel from India A. True
into the Chinese markets lead to integra-
B. False
tion of markets for steel in the two coun-
tries? Explain. C. None of these
A. The import of steel from India will in- D. none of above
crease competition in the Chinese mar-
kets, leading to a convergence of prices 271. What are goods?
and a greater exchange of steel between A. Material
the two countries.
B. treat
B. The import of steel from India will de-
crease competition in the Chinese mar- C. good stuff
kets, leading to a divergence of prices and D. healthy things

272. Companies who set up production units in 277. Name the organisation that was formed
the Special Economic Zones (SEZs) do not by the initiative of some developed coun-
have to pay taxes for an initial period of: tries
A. 10 years A. Trade Union Organisation
B. 3 years B. Earth Summit
C. 5 years C. World Trade Organisation
D. 8 years D. none of above
NARAYAN CHANGDER
278. Integration of markets means
273. Which among the following is an example
for Indian based MNCs. A. operating beyond the domestic mar-
kets
A. Emaar Properties
B. wider choice of goods
B. Adidas
C. competitive price
C. Bajaj
D. all the above
D. Mc Donald
279. Nations trade internationally to increase
274. A TERTIARY Industry is their ?
A. an industry that converts raw materi- A. wants
als into commodities and products for the B. needs
consumer
C. ideas
B. an industry that is concerned with ob-
taining or providing natural raw materials D. wealth
C. an industry that is concerned with the 280. One of the cause for imposing trade bar-
provision of services rier
D. an industry concerned with providing A. To protect local small manufacturers
information services B. To encourage investment of MNC
275. The state of being over weight C. To encourage foreign import
A. Diet D. none of above
B. Obesit 281. Which organisation supports liberalisa-

tion of foreign trade and investments in
C. Food miles
India?
D. Ingre
A. International Labour Organisation
276. Companies who set up production units in (ILO)
the Special Economic Zones (SEZs) do not B. World Bank
have to pay taxes for an initial period of: C. World Trade Organisation (WTO)
A. 2 years D. International Monetary Fund (IMF)
B. 5 years
282. Ford Motors set up its first plant in India
C. 4 years at:
D. 10 years A. Kolkata

B. Mumbai 288. Liberalisation refers to

C. Chennai A. freeing the economy from direct con-

D. Delhi trol
B. putting an end to various restrictions
283. Globalisation provides
C. opening up the economy
A. Choice of goods and services
D. all the above
B. Competitive price
289. The main objective of World Trade Organ-
C. Better quality
isation is to
D. All of the above
A. No restrictions on import or export
284. WTO stands for B. allow meeting of producers and con-
A. World Tennis Organization sumers
B. World Trade Office C. create environment suitable for trade
C. World Trade Organization D. none of above
D. World Trade center 290. Distinguish between foreign trade and
foreign investment.
285. Indian Government put barrier to foreign
trade and investment after independence A. Foreign trade involves the exchange
to save domestic producers. of goods and services between countries,
while foreign investment involves the in-
A. True vestment of capital in a foreign country.
B. False B. Foreign trade involves the investment
286. Process of integration of different coun- of capital in a foreign country, while for-
tries is called eign investment involves the exchange of
goods and services between countries.
A. Liberalization
C. Foreign trade and foreign investment
B. Privatization are the same thing.
C. Globalization D. Foreign trade and foreign investment
D. none of above are unrelated.
287. What is the mainpurpose of a MNC’s 291. Money that is spent to buy assets such as
land, building, machines and other equip-
ments is called
A. Export
B. Import
C. Investment
A. Earn profits D. Infrastructure
B. Provide better living opportunities for 292. How many countries of the world are cur-
people rently members of the WTO?
C. Minimise the cost of production A. 164
D. Provide job opportunities to people B. 167

C. 155 D. the gradual removal of trade restric-

D. 132 tions
293. It refers to the globalisation which cre- 298. Globalisation has been of advantage to
ates opportunities for all and ensures that A. all the people
its benefits are better shared. B. the poorer section of the society
A. Privatisation C. the richer section of the society
B. Special Economic Zones (SEZs)
NARAYAN CHANGDER
D. none of the above.
C. World Trade Organisation (WTO)
299. Globalisation so far has been more in
D. Fair globalisation favour of:
294. What attracts an MNC? A. developed countries
A. A-Cheap labour B. developing countries
B. B-Ready demand for the product C. poor countries
C. Both (a) and (b) D. none of the above
D. None of the above 300. Which one of the following is not true re-
garding impact of globalisation of India?
private sector on the basis of: A. It has created jobs in the service sec-
tor.
B. People with education, skill and wealth
B. The nature of economic activities
have not been benefited.
C. Number of workers employed
C. Benefits of globalisation are not
D. Ownership of enterprises shared equally.
296. Which one of the following is not true re- D. Labour laws are not implemented
garding the World Trade Organisation? properly and workers are denied their
rights.
A. Its aim is to liberalise international
trade 301. MNC is a company
B. WTO rules have forced the developing A. That owns or controls production in
countries to remove trade barriers. more than one nation
C. It establishes rules regarding interna- B. That owns or controls production in
tional trade. one nation
D. It allows free trade to all countries C. That owns or controls production out-
without any trade barriers. side the nation
297. For participating countries, what did D. All the above

NAFTA call for? 302. Which of the following examples does
A. a challenge to U.S. economic leader- not fall under unorganized sector?
ship A. A farmer irrigating his field.
B. the development of a single currency B. A daily wage labourer working for a
C. removal of environmental controls contractor.

C. A doctor in a hospital treating a pa- C. Surrounding Extraordinary Zone

tient. D. Secret Export Zone

in her house. 308. A large company that owns or controls
production in more than one nation is na-
303. Removing barriers or restrictions set by tion is called a-
the government is known as
A. Globalisation
B. Privatisation
C. Nationalism
D. Liberalisation
304. Which is not a benefit of global trade?

A. countries obtain things that they may
not normally produce B. Self Help Group
B. increased competition with other coun- C. Global Companies
tries D. Non Government Organisation
C. technology lowers the cost of produc-
tion 309. Investment made by MNCs is called
D. Sell things to more people in other A. Investment

countries B. Foreign Trade
305. Globalisation is the C. Foreign Investment
A. the process by which the world is be- D. none of above
coming increasingly disconnected
310. What are the factors that have facilitated
B. process by which the world is becom- globalisation?
ing increasingly interconnected
A. Rapid improvements in technology, lib-
C. connection created by the United Na- eralisation of trade and investment poli-
tions cies, and pressures from international or-
D. connection created only by the inter- ganisations
net B. The integration of production and mar-
kets, and the role of MNCs
306. UNDER WHICH GOVERNMENT LIBERALI-
SATION WAS INTRODUCED IN INDIA? C. The impact of globalisation on the de-
velopment process
A. BJP GOVERNMENT
D. The examples and activities drawn
B. CONGRESS GOVERNMENT
from the local environment
C. NATIONAL FRONT GOVERNMENT
D. CPI GOVERNMENT 311. In 1991 Government of India adopted
New Economic Policy and remove barriers
307. What is full form Of SEZ on foreign trade and investment.
A. Security Expert Zone A. False
B. Special Economic Zone B. True

C. None of these C. Assured availability of raw materials

D. none of above D. Government policies that can look af-
ter their decisions
312. Which one of the following Indian indus-
tries has been hit hard by globalisation? 317. The ability of a country to produce a prod-
A. soft drinks uct at a lower cost than another country is
called
B. automobiles
A. Free trade
NARAYAN CHANGDER
C. electronics
D. toy B. Comparative Advantage
C. Balance of trade
313. A situation in which all the countries
reap equally the benefits of foreign trades D. Import quota
equally is known as
318. Which country led the exploration during
A. Internationalisation
Globalization 1.0?
B. Fair Globalisation
A. USA and Canada
C. Liberalisation
B. United Kingdom and Germany
D. Equal Globalisation
C. Spain and Portugal
the government is known as D. none of above
A. globalisation 319. MNCs bring advanced technologies and

B. nationalism modern managerial skills and thus help in
technological up-gradation of the compa-
C. liberalisation
nies of developing countries.
D. privatisation
A. True
315. This aspect of globalization focuses on B. False
the relationship of countries among each
other and the increasing influence of inter- 320. Tax on imports is an example of:
national organizations
A. Terms of Trade
A. Economic
B. Collateral
B. Political
C. Trade Barriers
C. Socio-cultural
D. none of above D. Foreign Trade
316. MNCs normally take decisions regarding 321. Investments made in a country by Multi
the location of production units on the ba- National Companies is called
sis of following factors: A. Internal Investment
A. Production units should be close to the
B. Local Investment
markets
C. Foreign Investment
B. Availability of skilled and unskilled
labour at low cost D. none of above

1.11 Lifelines of Indian Economy 277
322. A PRIMARY Industry is A. producing industrial equipment, de-

A. an industry that converts raw materi- signs its products in research centres in
als into commodities and products for the the United States

consumer B. China provides the advantage of being
B. an industry that is concerned with ob- a cheap manufacturing location.
taining or providing natural raw materials
C. the company’s customer care is car-
C. an industry that is concerned with the
ried out through call centres located in In-
provision of services
dia.
D. an industry concerned with providing
information services D. Mexico and Eastern Europe where the
products are assembled and the finished
323. Which of the following is an example of products are sold all over the world.
Spreading of Production by an MNC across
the globe E. All of the above
1.11 Lifelines of Indian Economy

1. National Highways are constructed and B. Marmagao port
maintained by C. New Mangalore port
A. Border Roads Organisation (BRO) D. Kanla port
B. State Public Works Department
(SPWD) 5. Which states have been difficult for build-
ing railway tracks?
C. Central Public Works Department
(CPWD) A. Rajasthan, gujarat, Madhya Pradesh
D. PMGSY B. Himachal Pradesh

C. West Bengal
2. East West corridor connects
D. Tamil Nadu
A. Porbandar to Silchar
B. Srinagar to Kanyakumari 6. It is an inland riverine port. This port
serves a very large and rich hinterland
C. Uri to Silchar of Ganga-Brahmaputra basin. Name this
D. none of above port.
3. The problems faced by railways are A. KOLKATA PORT
A. Travelling without ticket B. HOOGHLY PORT
B. Thefts and damaging of railway prop- C. HALDIA PORT

erty D. BENGAL PORT
C. pulling chain unnecessarily to stop 7. Which two extreme locations are con-
train nected by the North-South Corridor?
D. All A. Amritsar and Tuticorin
4. The biggest port is B. Srinagar and Tiruvananthapuram
A. Mumbai port C. Srinagar and Tuticorin

D. Srinagar and Kanyakumari 13. The National Highway no 1 is also known

as
8. The National Highway that covers most of
A. Mahatma Gandhi Marg
the Rajasthan is
B. Sher Shah Suri Marg
A. N.H.-15
C. Golden Quadrilateral
B. N.H.-8
D. Jawaharlal Nehru Road
C. N.H.-1
NARAYAN CHANGDER
D. N.H.-2 14. Meenam Bakkam International Airport is
located in
9. Which two of the followingextreme loca-
A. Madurai
tions are connected by the East-West cor-
ridor? B. Chennai
A. Mumbai and Nagpur C. Vishakhapatnam
B. Mumbai and Kolkata D. Port Blair
C. Silchar and Porbandar
15. Which one of the following ports is the
D. Nagpur and Silgudi biggest with a spacious natural and well-
sheltered harbour?
A. Kolkata
private sector on the basis of:
B. Chennai
C. Mumbai
B. The nature of economic activities
D. Vishakhapatnam
C. Number of workers employed
D. Ownership of enterprises 16. Which one of the following is not true re-
garding the sea ports of India?
11. Which is the extreme south-western port,
A. Mumbai is the biggest port with a spa-
located at the entrance of a lagoon with a
cious natural and well sheltered harbour.
natural harbour?
B. Tuticorin Port in Tamil Nadu has a nat-
A. KERALA PORT
ural harbour and hinterland.
B. KOCHI PORT
C. Vishakhapatnam is the deepest land-
C. MUMBAI PORT locked and well protected port.
D. MARMAGAO PORT D. Chennai is an inland riverine port.
12. The only obstacle for Railways in Northern 17. locations are connected by east-west cor-
Plains of India is ridar
A. Mountains A. Mumbai-Nagpur
B. Deserts B. Mumbai-Kolkata
C. Rivers C. Silchar-Porbandar
D. None D. Nagpur-S

18. Roads linking State Capital With different

district headquarters are known as

A. Golden Quadrilateral
B. Super Highways
C. National Highways
D. State Highways
19. Himalayan mountainous regions too are

favourable for the construction of railway
lines due to high relief, sparse population
A. Chatrapati Sivaji
and lack of economic opportunities.
B. Raja Sansi
A. True
C. Banda Munda
B. False
D. Birsamunda
20. Which port handles a large variety of car-
24. Rapid integration and connection between
goes to our neighbouring countries like Sri
countries is known as
Lanka, Maldives, etc. and the coastal re-
gions of India? It also has a flourishing A. Liberalisation
trade. B. Investment
A. TUTICORIN PORT C. Globalisation
B. TRIVANDRAM PORT D. Interrelation
C. MADRAS PORT 25. Delhi airport is named as Indra GandhiIin-
D. HUGHLI PORT ternational airport-SAY TRUE OR FALSE
A. TRUE
21. The 1st train steamed off from Mumbai to
B. FALSE
A. Delhi 26. Which one of the following is the southern-
B. Chennai most international airport in India?
C. Kolkata A. Nedimbacherry
B. Chhatrapati Shivaji
D. Thane
C. Raja Sansi
22. Border Roads Organization was estab-
D. Meenam Bakkam
lished in
A. 1950 27. Who is responsible for movement of goods
and services from their supply locations to
B. 1955 demand locations?
C. 1960 A. Industrialist
D. 1958 B. Manufacturer
23. Identify the given international Airport C. Trader

and write its name. D. Consumer

28. World has become a global village due to 34. 4) Roads linking a state capital with dif-
which of the following? ferent district headquarters are known as
A. Transport and communication
B. International Trade A. National Highways
C. Engineering Industry B. State Highways

D. Electronic Industry C. Expressways
D. Super Highways
NARAYAN CHANGDER
29. The Southernmost point of North-South
corridor is Uri. 35. The value of all final goods and services
A. True produced within a country during a partic-
B. False ular year is called as:
30. Which one of the following is the most im-
portant modes of transportation in India? B. Net Domestic Product
A. Pipeline C. National Product

B. Railways D. Production of Tertiary Sector
C. Roadways 36. Which of the following is the headquar-
D. Airways ter of South-Eastern Railway and Eastern
Railway zones?
31. Which is the cheapest mode of transport in
India? A. Kolkata
A. Waterways B. Kharagpur
B. Roadways C. Bhubneshwar
C. Railways D. Mumbai
D. Airways 37. India has inland navigation waterways of
32. Roads can also be classified on the basis km in length, out of these only km
of the type of material used for their con- are navigable by mechanized boats.
struction such as metalled and unmetalled A. 14, 200km, 5300km
roads.
B. 14, 100km, 5600km
A. True
C. 14, 500km, 5685 km
B. False
D. 14, 000km, 5800km
33. Which port was planned with a view to
decongest the Mumbai port and serve as 38. Which port is the major iron ore exporting
a hub port for this region? port of the country?
A. RAJIV GANDHI PORT A. Mumbai port
B. RAJASANSI PORT B. Marmagao port
C. JAWAHARLAL NEHRU PORT C. Paradip port
D. NONE OF THE ABOVE D. Kandla port

39. What are the three important domains of B. English

transport? C. Urdu

A. Land, water, and air D. Marathi
B. Road, rail, and air
45. n recent years, India is earning large for-
C. Highway, pipeline, and waterway eign exchange through the export of which
D. Metalled, unmetalled, and narrow of the following?
A. Ores and Minerals
40. Railways are the principal mode of trans-
portation for B. Information Technology
A. Gold and Silver C. Agricultural Products
B. Freight and passengers D. Electrical goods
C. Vegetables and Fruit 46. The Golden Quadrilateral is for trading of
D. None Gold only.
A. True
41. In which year the air transport was nation-
alized? B. False
A. 1951 47. Roads linking a state capital with different
B. 1955 district headquarters are known as
C. 1953 A. National highways
D. 1990 B. District roads
E. 1953 C. State highways
D. Other roads
provides all the services: 48. National Waterway No. 1 is navigable be-
A. Private Sector tween which of the following places?
B. Public Sector A. Between Sadiya and Dhubri
C. Organised Sector B. Between Allahabad and Haldia
D. Tertiary Sector C. Between Kottapuram and Komman
D. Between Udyogamandal and Cham-
43. National Highways are constructed and pakkara
maintained by
A. NHAI 49. Delhi and Mumbai are connected by
B. PMGSY A. NH2
C. CPWD B. NH8
D. BRO C. NH44
D. NH15
44. The largest number of newspapers pub-
lished in India are in which of the following 50. Which was the first port developed soon
languages? after Independence?
A. Hindi A. HALDIA

B. KANDLA 57. DISTRICT ROADS ARE MAINTAINED BY

C. MUMBAI THE
D. CHENNAI A. A. ZILA PARISAD
B. B. DISTRICT COMMISSIONER
51. What is the main advantage of pipeline
transport? C. BOTH A AND B
A. Low construction cost D. NONE OF THESE
B. High speed
NARAYAN CHANGDER
58. Delhi and Mumbai are connected by
C. Environment friendly
A. N.H.-15
D. Door-to-door service
B. N.H.-1
52. Which one of the following ports is the
C. N.H.-7
deepest land-locked and well-protected
port along the east coast? D. N.H.-8
A. Chennai 59. The Indian National Highways are main-
B. Tuticorin tained by the department of
C. Paradwip A. National Highway Authority of India
D. Vishakhapatnam B. State Public Works Department
53. In India, roads are classified in the follow- C. Zila Parisad
ing six classes according to their capacity. D. Central Public Works Department
A. True
60. Railways conduct which type of activity
B. False
54. The major objective of these Super High- A. Business
ways is to reduce the time and distance
between the mega cities of India. B. Sightseeing
A. True C. Pilgrimage
B. False D. All
55. Globalisation has been of advantage to 61. Roads provides door-to-door service, thus
A. all the people the cost of loading and unloading is much
lower.
B. the poorer section of the society
A. True
C. the richer section of the society
B. False
D. none of the above.
56. Investments made by MNCs are termed 62. Narrow Gauge railway line is found in
as: A. the Northern Plains
A. Indigenous investment B. the hilly areas of Darjeeling, Shillong
B. Foreign investment and Ooty
C. Entrepreneur’s investment C. deserts of Rajasthan
D. None of the above D. the Central Highlands

63. The extreme south-western port is 69. Which one of the following is considered
A. Tuticorin port as the first-class mail by the Indian postal
network?

B. Kochchi port
A. Cards and envelopes
C. New Mangalore port
B. Registered periodicals
D. Kandla port
C. Book packets
64. What are state highways? D. Registered newspapers
A. Roads linking a state capital with dif-
ferent district headquarters 70. Kandla port is also known as
B. Roads linking different districts in a A. DEENDAYAL PORT
state B. KANDLA KARACHI PORT
C. Roads linking a state capital with other C. DEVENDRAN PORT
state capitals D. GUJARAT PORT
D. Roads linking State capital with impor-
tant cities 71. The distribution pattern of the railway net-
work in the country has been largely influ-
65. The Longest Highway of India is enced by factors.
A. National Highway-8 A. Physiographic
B. National Highway-7 B. Economic
C. National Highway-1 C. Administrative
D. National Highway-15 D. Physiographic, Economic and Adminis-
trative
66. The total network of India’s roadways is
about 72. Which organisation constructs and main-
A. 55 lakh km tains roads in the border areas?
B. 56 lakh km A. NHAI
C. 57 lakh km B. BRO
D. 65 lakh km C. Pradhan Mantri Grameen Sadak Yo-
jana
67. Choose the correct meaning of organised D. BSF
sector:
A. It covers those enterprises where the 73. Solids can also be transported through
terms of employment are regular. pipelines
B. It is outside the control of the govern- A. True
ment. B. False
C. Jobs are not regular. 74. Which Port is one of the oldest artificial
D. It provides low salaries. ports of the country?
68. District Roads connects district headquar- A. MUMBAI PORT
ters with state capital. B. KOLKATTA PORT
A. True C. CHENNAI PORT
B. False D. KOCHI PORT

75. Which one of the following Organizations B. PMKSY

constructs Border roads in India?
C. PMFBY
A. PWD
D. None
B. CPWD
C. BRO 81. World’s longest Highway tunnel is and
is built by
D. NHAI
A. Atal Tunnel, NHAI
NARAYAN CHANGDER
76. What is the main advantage of rail trans-
port? B. Jawahar Tunnel, PMGSY
A. Low cost C. Atal Tunnel, BRO

B. Fuel efficiency D. None
C. Environment friendly
82. This organisation was established in 1960
D. Door-to-door service for the development of the roads of strate-
gic importance in the northern and north-
77. Which one of the following National High-
eastern border areas.
ways is the longest in India?
A. True
A. NH1
B. NH8 B. False
C. NH44 83. State any three merits of roadways.

D. NH24 A. Cost-effective
78. Which one of the following modes of trans- B. Flexible routes
portation reduces tran-shipment losses
C. Last-mile connectivity
and delays in the supply of petroleum and
gases? D. Fastest mode of transportation
A. Railways
84. A situation in which more persons are em-
B. Roadways ployed on a job than are optimally required
C. Pipeline is:
D. Waterways A. Structural unemployment
79. The air transport was nationalised in B. Disguised unemployment

A. 1852 C. Cyclical unemployment
B. 1952 D. Seasonal unemployment
C. 1853
85. Which of the following airlines is the na-
D. 1953 tionalised airline of India?
80. Under which scheme special provisions are A. Air India
made so that every village in the country
B. Jet Airways
is linked to a major town in the country by
an all season motorable road C. Kingfisher Airline
A. PMGSY D. Indigo

86. Which two of the following extreme loca- C. West-Coast Canal in Kerala
tions are connected by the East-West Cor-
ridor?

A. Mumbai and Silchar 92. India has major and notified non
B. Mumbai and Kolkata major ports.
C. Porbandar and Silchar A. 10 and 100

D. Porbandar and Siligudi B. 12 and 200
87. Which port did we lose to Pakistan after C. 14 and 200

partition of India? D. 16 and 200
A. Hyderabad
B. Lahore natural resources, it is an activity of the:
C. Rawalpindi A. Secondary sector
D. Karachi
B. Tertiary sector
88. Busiest railway junction in Northern India. C. Primary sector
A. Delhi D. Organised sector
B. Lucknow
C. Mugalsarai 94. Name the Port that is located in Kar-
nataka?
D. Patna
A. MARMAGAO PORT
89. The highway projects in India are being im-
B. MANDAVI PORT
plemented by which organisation?
A. GAIL C. NEW MANGALORE PORT
B. NTPC D. KOCHI PORT

C. NHAI 95. Raja Sansi International airport is located
D. NDDB in
90. National Highways are constructed and A. Mumbai

maintained by: B. Chennai
A. NAHI C. Amritsar
B. CPWD D. Ambala
C. SPWD
96. Which two of the following extreme loca-
D. BRO
tions are connected by the East-West Cor-
91. Which waterway is declared as National ridor?
Waterway No. 1? A. Mumbai and Nagpur
A. Ganga river between Allahabad and
B. Mumbai and Kolkata
Haldia
C. Porbandar and Silchar
B. Brahmaputra river between Sadiya
and Dhubri D. Nagpur and Siligudi

97. The Indian Railway network runs on 103. Which one of the following ports was de-
A. Broad Guage veloped in order to relieve the pressure of
Kolkata port?
B. Metro Gauge
A. Paradip port
C. Narrow Guage
B. Tuticorin port
D. All
C. Haldia port
98. The full form of NHAI is D. Chennai port
NARAYAN CHANGDER
A. National Highway Academy of India 104. Which is the biggest port with a spacious
B. Northern Highway Authority of India natural and well-sheltered harbour?
C. New Highway Authority of India A. Kochi Port
D. National Highway Authority of India B. Deendayal Port
C. Chennai Port
99. The total network of India’s roadways is
about D. Mumbai Port
A. 4.5 million km 105. Metalled roads go out of use in the rainy
B. 3.5 million km season.
C. 5.5 million km A. True
D. 2.3 million km B. False
100. The Indian Railway is now reorganised 106. The golden quadrilateral super highways
into zones project linking
A. 13 A. Delhi-Chennai-Madurai-Punjab
B. Chennai-Mumbai-Delhi-Uttar Pradesh
B. 14
C. Kannyakumari-Srinagar-Calcutta-
C. 15
Chennai
D. 16
D. Delhi-Kolkata-Chennai-Mumbai
101. Which one of the following states is not 107. Largest postal net work system in the
connected with the H.V.J. pipeline? world is
A. Madhya Pradesh A. The United states
B. Maharashtra B. The Indian
C. Gujarat C. The England
D. Uttar Pradesh D. The African
102. National Highway No 1between Delhi 108. Which port was developed to ease the
and Amritsar is also known as- volume of trade on the Mumbai port?
A. Aurangzeb Marg A. HALDIA
B. Sher Shah Suri Marg B. KANDLA
C. Nagarhauli marg C. KOCHI
D. Rohtang Marg D. CHENNAI

109. Which mode of transportation reduces C. Delhi-Mumbai-Chennai and Kolkata

trans-shipment losses and delays? D. Kashmir-Kanyakumari

A. Railways
115. Which of the following is the oldest arti-
B. Roadways
ficial port and the second most important
C. Pipeline port of the country?
D. Waterways A. Mumbai port
110. Trade carried in cities, towns and villages B. Kandla port
is called
C. Chennai port
A. External trade
D. Ennore port
B. Local trade
C. internal trade 116. is one of the oldest artificial ports of
the country
D. International trade
A. KOCHI
111. Which mode of transport is most suitable
B. CHENNAI
for carrying heavy and bulky goods?
C. KANDLA
A. Roadways
B. Railways D. none of above
C. Pipelines 117. Which port is the deepest landlocked and

D. Waterways well-protected port?
A. Vishakhapatnam
112. What is the historical Sher Shah Suri
Marg now called? B. Kandla
A. NH 4 C. Pradeep
B. NH 1 D. Haldia
C. NH 3
118. Which one of the following groups of
D. NH 7 cities is connected by the National High-
way No. 1?
113. The Ganga river between and Haldia
is national waterway 1 A. Kolkata-Amritsar
A. Allahabad B. Ranchi-Kolkata
B. Sadiya C. Delhi-Punjab
C. Dhubri D. Varanasi-Kanyakumari
D. none of above
119. Which one of the following National High-
114. The Golden Quadrilateral Super High- ways is the longest in India?
ways connect
A. NH1
A. Delhi-Silchar-Madurai and Gandhina-
B. NH8
gar
B. Srinagar-Kanyakumari-Bhopal & Alla- C. NH24
habad D. NH44

120. India has inland navigation waterways 125. Which one of the following states has the
of km in length, out of these only highest road density?
km are navigable by mechanized boats. A. Goa
A. 14, 200km, 3, 000km B. Kerala
B. 14, 100km, 2, 000km C. Karnataka
C. 14, 500km, 3, 700km D. Gujarat
D. 14, 000km, 3, 500km 126. Which two of the following extreme loca-
NARAYAN CHANGDER
tions are connected by the east-west cor-
121. Raja sansi International airport is situ- ridor?
ated in
A. Mumbai and Nagpur
A. Bangalore
B. Silchar and Porbandar
B. Amritsar C. Mumbai and Kolkata
C. Vishakhapatnam D. Nagpur and Siligudi
D. none of above
127. Which one of the following is the oldest
122. Which is the deepest landlocked and well- artificial port of the country?
protected port? This port was, originally, A. Tuticorin
conceived as an outlet for iron ore exports. B. Vishakhapatnam
A. NEW MANGALORE PORT C. Chennai
B. MARMAGAO PORT D. Mumbai
C. TUTICORIN PORT 128. Which metrocities are connected by
D. VISHAKAPATNAM PORT Golden Quadrilateral Super Highways?
{more than one answers applicable}
123. Which mode of transport is the largest in A. Old Delhi
India?
B. Chennai
A. Roadways
C. Bangalore
B. Railways D. Kolkata
C. Pipelines
129. Railways in India bind the economic life
D. Waterways of the country as well as accelerate the de-
velopment of the industry and agriculture
124. Which one of the following is not an ad-
A. True
vantage of pipeline transportation?
B. False
A. Pipelines are used for transporting
crude oil and gas from fields to refineries. 130. is the most comfortable and presti-
B. Solids can be transported in slurry gious mode of transport.
form through pipelines. A. Pipeline
C. Pipelines rule out trans-shipment B. Railways
losses or delays. C. Airways
D. Initial cost of laying a pipeline is high. D. none of above

131. The roads that connects all the metro C. Marmagao

cities in India is known as- D. none of above

A. Golden Quadrilateral
137. WHAT DOES THE DEENDAYAL PORT
B. Super Highways CATER TO?
C. National Highways A. Convenient handling of exports and im-
D. State Highways ports
B. Handles highly productive granary and
132. The helicopter services to Oil and Natural industrial belt
Commission in its offshore operations are
provided by: C. Trade of the states of Jammu and
Kashmir, Himachal Pradesh, Punjab,
A. Air India Haryana, Rajasthan and Gujarat.
B. ndian Airlines D. All of the above
C. Pawanhans helicopters
138. is an example of an inland riverine
D. Alliance Air port in India
133. National Water.No.1 in India A. Mumbai
A. The Brahmaputra river between B. Kolkata
sadiya and dhubri C. Marmagao
B. The West coast canal in Kerala D. none of above
C. The Krishna river system 139. Which type of roads received special
D. The Ganga river between Allahabad impetus under Pradhan Mantri Grameen
and haldia Sadak Yojana?
A. Rural
134. Over millian foreign tourists visit In-
dia every year. B. NHAI
A. 2.4 C. BRO
B. 2.5 D. SHAI
C. 2.6 140. The air transport was nationalised in the

year
D. 3.7
A. 1947
135. Which one of the following is the oldest
B. 1950
port of the eastern coast of India?
C. 1953
A. Kolkata (Haldia)
D. 1957
B. Vishakhapatnam
141. is the Premier iron ore exporting port
C. Tuticorin
of the country.
D. Chennai (Madras)
A. Marmagao
136. in Gujarat is an example of Tidal Port B. Kochchi
A. Kandla C. Kandla
B. Paradwip D. Kolkata

142. National Waterway No. 1 is navigable C. Uttar Pradesh

between which of the following places? D. Maharastra
A. Sadiya and Dhubri
148. port was developed as a subsidiary port
B. Allahabad and Haldia in order to relieve growing pressure on the
C. Udyogamandal and Champakkara Kolkata port.
D. Kottapuram and Komman A. Haldia
B. Kochi
NARAYAN CHANGDER
143. The northern plains with their vast level
land, high population density and rich C. Kandla
agricultural resources provided the most D. Vishakhapatnam
favourable condition for the growth of
Railway network. 149. Which one of the following terms is used
A. True to describe trade between two or more
countries?
B. False
A. Internal trade
144. What is the purpose of the Hazira- B. International trade
Vijaipur-Jagdishpur (HVJ) gas pipeline?
C. External trade
A. To transport crude oil
D. Local trade
B. To connect major cities
150. Which of the following is not a feature of
C. To supply gas to fertilizer and power
a Multi-National Company?
plants
A. It owns/controls production in more
D. To link oil fields with refineries
than one nation.
145. The Roads which received special impetus B. It employs labour only from its own
under the Pradhanmantri Grameen Sadak country.
Yojna
A. Rural roads ways.
B. district roads D. It sets up factories where it is close to
C. border roads the marke
D. none of above 151. The other village roads received special
inputs under
146. Who maintains the District Roads?
A. The Pradhan Mantri Grameen Sadak
A. District Magistrate
Yojana
B. Municipality B. Zilla Parrished
C. Village Panchayat C. Public works department
D. Zila Parishad D. Panjayathraj
147. Which one of the following state is NOT 152. World Trade Organisation (WTO) was
connected with the H. V. j. pipeline? started at the initiative of which one of
A. Madhya Pradesh the following group of countries?
B. Gujurat A. Developed

B. Developing activities along with goods transportation

C. Under Developed over long distances.

D. Poor A. Both A and R are true and R is the cor-
153. Assertion (A):Transport and communi-
cation are called lifelines of our econ- B. Both A and R are true and R is not the
omy.Reason (R):Transport and communi- correct explanation of A.
cation do not help in easy movement of C. A is true but R is false.
goods and materials between countries.
D. A is false but R is true.
158. Which one of the following ports is a tidal
B. Both A and R are true and R is not the port?
A. Mumbai
C. A is true and R is false.
B. New Mangalore port
C. Kandla
154. Apart from an important means of trans-
port the Indian Railways have been a D. Vishakhapatnam
great integrating force for more than 150
years. 159. Which south-eastern port has a natural
A. true harbour and rich hinterland?
B. false A. Tuticorin Port
155. Pawanhans Helicopters Limited provides B. Thiruvananthapuram Port

helicopter services to in its offshore C. Madras Port
operations
D. Kochi Port
A. ONGC
B. TATA STEEL 160. Unmetalled roads may be made of ce-
C. NTPC ment, concrete or even bitumen of coal.
D. none of above A. True
156. Which Port is the premier iron ore export- B. False

ing port of the country? This port accounts
for about how many per cent of India’s 161. What is the purpose of the Golden
iron ore export? Quadrilateral Super Highways project?
A. MUMBAI PORT, 100% A. To reduce time and distance between
B. MANGALORE PORT, 70% mega cities
C. MARMAGAO PORT, 50% B. To connect major towns with rural ar-
D. MANDAVI PORT, 40% eas
C. To transport crude oil and petroleum
157. A):Railways are the most important
products
mode of transport in India.R):Railway
make it possible to conduct multifarious D. To link oil fields with refineries

1.12 India’s Foreign Policy 292
162. Which one is incorrect about roadways:- modes of transport such as they provide a
link between railway stations, air and sea
A. (a) construction cost of roads is much
ports.
lower than that of railway lines.
B. roads can’t traverse comparatively 163. Which two of the following extreme loca-
more dissected and undulating topogra- tions are connected by the east-west cor-
phy ridor?
A. Mumbai and Nagpur
C. roads can negotiate higher gradients
NARAYAN CHANGDER
of slopes and as such can traverse moun- B. Silchar and Porbandar
tains such as the Himalayas, C. Mumbai and Kolkata
D. It is also used as a feeder to other D. Nagpur and Siliguri
1.12 India’s Foreign Policy

1. Apartheid is (UNCIP) was set up to supervise the
A. An international association ceasefire.
B. Energy diplomacy C. A ceasefire agreement signed on June

30, 1965 was aimed at defusing the ten-
C. A policy of racial discrimination sion along Gujarat.
D. None of these D. The Security Council passed Resolu-
tion 211 on September 20 calling for an
2. The agreement signed by India and China
end to the fighting
in 1954 related to
A. Trade and commerce 5. What was the assigned code name for the
1st nuclear tests conducted by India?
B. Restoration of normal relations
A. Operation Shakti
C. Cultural exchange programs
B. Smiling Buddha
D. The five principles of Co-existence
C. Operation Pokhran
3. Which article of Indian constitution directs
D. Nuclear Ops
to adopt foreign policy?
A. Article 50 6. The Father of the Indian nuclear pro-
gramme is
B. Article 51
A. APJ Abdul kalam
C. Article 52
B. JC bose
D. Article 53
C. Homi J bhabha
4. What happened after the 1965 war be-
D. CNR Rao
tween India and Pakistan ended?
A. Pakistan joined the Southeast Asia 7. Why was the Nuclear Non-Proliferation
Treaty Organization (SEATO) Treaty signed?
B. a commission known as United Na- A. To disarm countries with nuclear
tions Commission for India and Pakistan weapons

B. To prevent the spread of nuclear 13. Identify one organization based in Delhi
weapons which take up issue of Dowry.

C. To regulate the use of nuclear power A. Janwadi Mahila Samiti
for energy
B. Mahila Atma Rakhsha Samiti
D. To make nuclear technology accessi-
ble to all nations C. SEWA
8. The 20 years friendship treaty between In- D. Stri Sangharsh

dia and Russia was signed in
14. India US relationship was not good during
A. 1970
A. During Cold War period
B. 1971
B. Post Cold War period
C. 1972
D. 1962 C. Before WWII
D. none of above
9. The article deals with foreign policy of In-
dia
15. The US supported India in
A. 51
A. 1971 war
B. 55
B. 1962 war
C. 52
D. 17 C. 1975 war
D. none of above
10. Which of the following country is not a
founder of NAM?
16. Maintain the same distance from both
A. Yugoslavia blocks is called.
B. Indonesia A. Non Adjustment movement
C. Egypt
B. Non Aligned Movement
D. Pakistan
C. Non cooperation movement
11. Which political party won the election of
1970 in East Pakistan?
A. East Pakistan democratic Party 17. When was the first nuclear test conducted
B. Pakistan National Party by India?
C. Awami League A. April 1975
D. Mukti Bahini (liberation Army) B. May 1974
12. What was the aim of the infiltrators into C. January 1965
Kashmir in 1965? D. December 1968
A. To end Indus water dispute
B. To ‘liberate’ the people of Kashmir 18. Foreign aid is a commonly used tool of for-
eign policy.
C. To annex the whole Kashmir valley
A. True
D. To internationalize the Bangladesh is-
sue B. False

19. Jawaharlal Nehru outlined foreign policy D. after the exchange of the visits of two
of India. Expressed it on radio speech on leader in 1017 & 2018
A. Sept 7, 1950
24. Which Former Prime Minister declared In-
B. Sept 7, 1951 dia as a ‘nuclear state’?
C. Sept 7, 1946 A. PV Narasimha Rao
D. Sept 7, 1947 B. VP Singh
20. This is not in the BRICS group of organisa- C. Atal Bihari Vajpayee
NARAYAN CHANGDER
tion. D. Jawaharlal Nehru
A. Brazil
25. What is foreign policy?
B. Russia
C. USA A. a country’s relations with other na-
tions
D. China
B. international trade policy
21. Find the odd one
C. sending diplomats to global confer-
A. Social welfare ences
B. Healthcare D. protection of overseas interests
C. Diplomacy
26. Our tradition and national ethos is to prac-
D. Domestic office tice
22. In 1972, the United States and 143 other A. Fighting
nations signed a treaty that banned the de-
B. Nuclear weapons
velopment, production and storage of bio-
logical weapons. What is most likely the C. Disarmament
goal of this treaty? D. Armed forces
A. To stop nations from acquiring military
secrets 27. The amendment of strengthened the
law against the perpetrators of dowry re-
B. To give nations the right to defend lated crimes.
themselves
A. Hindu Adoption and Maintenance Act
C. To prevent the use of biological
weapons by nations at war B. Dowry Prohibition Act
D. To conduct research on the effects of C. Protection of Women from Domestic
biological weapons Violent Act
23. India’s diplomatic relationship with Israel D. Hindu Succession Act

formally developed 28. Non-Alliance means
A. after they gained independence from
A. Being neutral
British Government
B. Freedom to decide on issues indepen-
B. after the opening of Israeli embassy in
dently
India in 1992
C. after the formation of the NDA govern- C. Demilitarisation
ment in 1996 D. None of the above

29. It is one of the major aim of Indian foreign 35. was India’s policy in the face of the
policy. bipolar order of the cold war.

A. Solve the internal problems A. Alignment
B. Solve the water disputes
B. Agreement
C. Cooperationbetween states
C. Non alignment
D. National security
30. Which minister plays a vital role in the
molding foreign policy of our country? 36. Which is not related to India’s foreign pol-
A. Defence Minister icy
B. Prime Minister A. World co operation
C. External Affairs Minister B. World peace
D. Home Minister
C. Racial equality
31. The countries need to have regulate its in-
D. Colonialism
teraction with other countries.
A. Dual policy 37. The is a set of five principles to guide
B. Foreign policy the conduct of foreign relations with In-
dia’s immediate neighbours.
C. Interdependent policy
D. Mutual policy A. Panchsheel
32. India conducted its first nuclear test at B. The Gujral Doctrine
A. Delhi C. Look East Policy

B. Hyderabad D. None of the above
C. Pokhran
38. The main reason for the tension between
D. Chennai
India and Pakistan is.
33. India adopted the following ideas from A. Jammu and Kashmir issue
USSR
A. Socialism B. Trade disputes
B. Capitalism C. Pakistan relationship with China

C. Communism D. Lahore Bus yatra
D. Democracy
39. The panchsheel treaty was signed be-
34. Where did Pakistan first make an incursion tween
into Indian territory in 1965?
A. India and Nepal
A. Srinagar
B. Indian and Pakistan
B. Nowshera-Poonch area of Kashmir
C. Rann of Kutch C. India and China
D. Assam D. India and Sri Lanka

40. Panchsheel does not include one of the fol- C. Battle of Shelatang
lowing five principles of foreign policy: D. Attack on Kargil
A. Mutual respect for each other’s terri-
torial integrity and sovereignty. 46. Which country did not support India in its
war against Pakistan in 1971
B. Non-aggression against each other.
A. USSR
C. Non-interference in each other’s exter-
nal affairs. B. France
NARAYAN CHANGDER
D. Equality and mutual benefit. C. Britain
E. Peaceful co-existence. D. USA
41. is the instrument for implementing for- 47. The idea of 5 year plan was taken from
eign policy of a state. A. United States
A. Harmony B. Soviet Union
B. Diplomacy C. China
C. Belief D. Israel
D. Co operator 48. Non-military shoes offer
42. Who signed Tashkent Agreement in 1966? A. Energy security
A. Ayub Khan B. Water security
B. Zulfiqar Ali Bhutto C. Pandemics
C. Liaquat Ali Khan D. All the above
D. Nurul Amin 49. Arrange the following events in the correct
43. The countries which have not signed in the chronological sequence from the earlier to
Comprehensive Nuclear-Test-Ban Treaty the latest:(a) First nuclear test conducted
and Non-Proliferation Treaty are by India.(b) Twenty year treaty of peace
and relationship between India and Soviet
A. India and Israel Union.(c) The Tashkent Agreement.(d) The
B. India and Pakistan Panchsheel declaration.
C. India and Iran A. a c d b
D. India and China B. c d b a
44. What is Foreign Policy? C. d c b a
A. A country’s strategy to achieve its D. d c a b

goals around the world. 50. At present our foreign policy acts as
B. The act of working with other nations a means to generate for domestic
through discussion and negotiation. growth and development
45. Which was the biggest battle of the Kash- A. Outward investment
mir war of 1947-48? B. Inward investment
A. Battle in Srinagar C. Selling
B. Attack on Naushera D. Buying

1.13 Indian Economy (1950-1990) 297
51. Where did the first protest against dowry B. Bhopal

start in 1975 C. Delhi

A. Hyderabad D. Mumbai
1.13 Indian Economy (1950-1990)

1. Schedule comprise of industries which A. Use of high yielding variety seeds
is exclusively by State. B. The abolition of intermediaries
A. A C. The change in ownership of landhold-
B. B ings
C. c D. Land ceiling.
D. None of theses 6. implies either a larger stock of produc-
tive capital, or a larger size of supporting
2. Which of the following is the main objec- services like transport and banking, or an
tive of carrying out various economic ac- increase in the efficiency of productive cap-
tivities for serving society? ital and services
A. Profit A. Modernisation
B. Public welfare B. Equity
C. Competition C. Growth
D. Equality D. Self-reliance
3. Inward looking trade strategy is also 7. Who is the father of Green Revolution?
known as policy of A. Dr Norman Borlau
A. import relaxation B. Dr M.S.Swaminathan
B. import substitution C. Dr A.P, J Abdul Kalam
C. import promotion D. Mrs Indira Gandhi
D. none of these 8. Budgetary policies are implemented by
the.
4. Land reforms were successful in the fol-
lowing because these states had govern- A. Foreign sector
ment committed to the policy of ‘land to B. Finance ministry
the tiller’
C. Government
A. kerala D. Private sector
B. west bengal
9. Which factor led to the breaking up of the
C. karnataka stagnation of agriculture?
D. both a and b A. Land reforms
E. both b and c B. Green revolution
5. Which of the following in not included in C. Buffer stock
land reforms? D. Land ceiling

1.13 Indian Economy (1950-1990) 298
10. Disinvestment is a- 16. Who is known as the architect of Indian

Planning?
A. Capital expenditure
A. Jawaharlal Nehru
B. Revenue expenditure
B. Dr. B. R. Ambedkar
C. Capital receipts
C. PC Mahalanobis
D. Revenue receipts
D. Sardar Vallabhbhai Patel
11. Who presented the 1st 5-year plan of the
17. Which of the following is not an objective
NARAYAN CHANGDER
country?
of Import substitution during 1950-1990?
A. Pandit Jawaharlal Nehru A. Protection of domestic industries from
B. B R Ambedkar foreign competition.
C. Sardar Ballav Bhai Patel B. To save foreign exchange reserves.
D. Mahatma Gandhi C. Decreasing taxes on all imported
goods.
12. The first phase of green revolution D. Substituting imports with domestic
spanned approximately between production.
A. mid 1950s upto mid 1960s
18. IPR-1956 laid emphasis on the role of
B. mid 1960s upto mid 1970s sector.
C. 1980s A. Private
D. 1960-1970 B. Public
13. The portion of agricultural produce which is 19. When a farmer produces just for his self-
sold in the market by the farmers is called? consumption and not for commercial pur-
pose is known as
A. Excess surplus
A. Subsistence farming
B. Marketable surplus
B. Commercial farming
C. Agricultural produce C. both a and b
D. Exports D. None of the above
14. industries were the focus for the second 20. Who is regarded as the architect of Indian
five-year plan. planning?
A. True A. MS Swaminathan
B. False B. Prasanta Chandra Mahalanobis
15. What were the focus points of 2nd five- 21. Why did farmers in Soviet Union pack rot-
year plan? ten fruits with fresh fruits in the same
box?
A. Agriculture
A. Farmers were not aware.
B. Industry
B. Farmers were not trained.
C. service
C. In the absence of ownership. farmers
D. none of these did not have the incentive to be efficient.

1.13 Indian Economy (1950-1990) 299
D. Farmers did it purposefully to spoil all 26. What was the % of India’s population that
fruits. was dependent on agriculture during agri-
culture?

22. In which of the following type of econ-
omy are resources owned privately and A. 75%
the main objective behind economic activ- B. 50%
ities is profit-making? C. 85%
A. Capitalist D. 60%
B. Socialist
27. The first five year plan was launched for a
C. Mixed period from
D. Global A. 1948-1953
23. What is needed to provide protection B. 1959-1954
against natural calamities like floods, C. 1951-1956
drought, locusts, thunderstorms, etc.?
D. 1955-1960
A. Multiple cropping
28. Perspective plan is a
B. Green revolution
A. short term plan
C. Crop insurance
B. long term plan
D. HYV
29. Large increase in production of food grains
24. Tick the correct options resulting from the use of HYV seeds is
A. In a capitalist society the goods pro- called
duced are distributed among people not A. 2 years
on the basis of what people need but on
the basis of Purchasing Power. B. 3 years
B. In a socialist society, the government C. 5 years

decides what goods are to be produced in D. 6 years
accordance with the needs of society.
30. It is a conscious design to shape the socio-
C. In a mixed economy, the market will economic processes in order to achieve an
provide whatever goods and services it objective
can produce well, and the government
A. Economic infrastructure
will provide essential goods and services
which the market fails to do. B. Economic growth
D. If the economy depends on the market C. Economic planning
forces of supply and demand, it is called a D. Economic development
market economy or capitalism.
31. The legislation of land ceiling to bring land
25. Who is considered to be the architect of reforms in India were successful in which
indian planning? two states?
A. William Digby A. Bihar & Odhisha
B. P.C. Mahalanobis B. Kerala & West Bengal
C. Dada bhai Naroji C. Odisha & Kerala
D. R.C.Desai D. West Bengal & Bihar

1.13 Indian Economy (1950-1990) 300
32. The portion of agricultural produce that is C. Jawahar lal Nehru

sold in the market by farmers is known as D. Lal Bahadur Shastri
A. Trade deficit 38. The central problems of an economy are:
B. Marketed surplus A. What to produce
C. Subsidy B. how to produce
D. Import substitution C. For whom to produce
NARAYAN CHANGDER
D. All of these
33. The common goals of five year plans are:
A. Modernisation 39. Which among the following is not a benefit
of Green Revolution?
B. Growth
A. Increase in marketed surplus
C. Self-reliance
B. Buffer stock
D. All of the above
C. High cost
34. In 1955, the Karve Committee was consti- D. Self-reliance
tuted. What was the aim of Karve Com-
mittee? 40. When was the planning commission set
A. Development of public sector indus- up?
tries. A. 1949
B. Development of large scale industries. B. 1950
C. Development of small scale industries. C. 1956
D. Development of private sector indus- D. 1850
tries.
41. Abolition of Intermediaries and Land ceil-
35. refer to taxes levied on imported ing are part of
goods. A. Industrial reforms
A. Quotas B. Banking reforms
B. Tariffs C. Land Reforms
C. Lagaan D. External reforms
D. None of these
42. What was the share of Service Sector to
36. Who is the Architect of Indian Planning? GDP, in India on 1950-51 and 1990-91?
A. Prasanta Chandra Mahalanobis, A. 50%
B. V K V RAO B. 28 %
C. Dr B R Ambedkar C. 40%
D. Mahamta Gandhi D. 80%
37. The concept of five year plan in India was 43. Who is the chairman of the planning com-
introduced by mission in India?
A. Lord Mountbatten A. prime minister
B. Gandhi Indira B. president

1.13 Indian Economy (1950-1990) 301
C. chief minister 50. The non-tax revenue in the following is:

D. governor A. Income Tax

B. Corporate Tax
44. The states where land reforms were suc-
cessful C. Dividends
A. Kerala & Tamil Nadu D. Borrowings
B. Kerala & West Bengal 51. Repayment of loans is an example of:
C. Tamil Nadu & Maharashtra A. Capital Expenditure
D. West Bengal & Maharashtra B. Non-planned expenditure
45. Long term Goals of five year planning are: C. Revenue expenditure
A. Growth D. Planned expenditure
B. Equity 52. In a mixed economies, the government an-
C. Land Reforms swer the three questions of what to pro-
duce, how to produce and how to dis-
D. Modernisation tribute what is produced
46. Union Budget is the budget of A. True
A. Central Government B. False
B. Local Government 53. The economic justification of subsidies in
C. State Government agriculture is, at present, a hotly debated
question. Consider the following state-
D. Election Commission
ments related to this.1. A substantial
47. What does HYVP stand for? amount of fertiliser subsidy also benefits
the fertiliser industry, not only farmers.2.
A. High Yielding Varieties Products
The subsidy largely benefits the farmers
B. High Yielding Various Programme in the more prosperous regions.3. Most
C. High Yielding Varieties Programme farmers in India are very poor and they
will not be able to afford the required in-
D. High Yielding Various Products puts without subsidies.Select the correct
statements using codes below
48. Escheats is an example of:
A. 1 and 2
A. Capital Receipts
B. 1 and 3
B. Revenue Receipts
C. 2 and 3
C. Capital Expenditure
D. all of these
D. Revenue Expenditure
54. Land ceiling refers to:
49. Borrowings are equivalent to:
A. Fix rural landholdings at the existing
A. Revenue deficit
level
B. Primary deficit B. Fix land area for irrigation purposes
C. Fiscal deficit C. Fix urban landholdings at the existing
D. None of these level

1.13 Indian Economy (1950-1990) 302
D. Fix quantum of land held by an individ- 60. Which of the following steps promoted the
ual growth of the economy as a whole by stim-
ulating the development of industrial and
55. What was the % of India’s population that tertiary sectors?
was dependent on agriculture during agri-
culture? A. Independence
B. Planning
A. 85
C. Colonial Rule
B. 65
NARAYAN CHANGDER
D. Green Revolution
C. 55
D. 75 61. When was the planning commission set up
in India?
56. refers to an arrangement by which cen-
A. 5th March 1951
tral problems of an economy are solved.
B. 25th April 1950
A. Economic System
C. 20th March 1951
B. Mixed Economy
D. 15th March 1950
C. Modernisation
D. Socialist economy 62. Which seeds are called miracle seeds?
A. Traditional seed
57. Adopting of new technology in the produc-
tion of goods and services to increase the B. British Seed
output is called C. S.Y.V seed
A. Economic Growth D. H.Y.V seed
B. Economic Welfare 63. The government budget is an
C. Modernisation A. Half yearly statement
D. Equity B. Weekly statement
58. Under Industrial Policy Resolution (IPR), C. Five yearly statement
1956, Category II of the industrial sector D. Annual statement
includes industries jointly owned and con-
trolled by the private sector and the state. 64. refers to utilisation of country’s re-
sources in order to promote economic
A. True
growth.
B. False
A. Self-reliance
59. During the initial years after independence, B. Sankhya
the low productivity of Indian agricultural
C. Land ceiling
sector forced India to import food from
which country? D. Market surplus
A. UK 65. Match the following:1. Marketed surplus
B. USSR A. Large increase in production of food
grains resulting from the use of high yield-
C. USA ing variety seeds especially for wheat and
D. South America rice.2. Green Revolution B. Portion of

1.13 Indian Economy (1950-1990) 303
agricultural produce which is sold in the 70. Self reliance means

market by the farmers.3. HYV Seeds C. A. Avoiding imports
Seeds that give large proportion of output

4. Land Reforms D. Improvements in the B. Produce goods in India which are im-
field of agriculture to increase its produc- ported from abroad
tivityWhich of the above are not matched C. Export promotion
correctly?
D. None of these.
A. 1 and 2
71. Objectives of planning in India are
B. 1, 2 and 4
A. growth
C. 2 and 4
B. self reliance
D. 3 and 4
C. modernization
66. Inward looking trade strategy is also
D. all of these
known as the policy of
A. Export promotion 72. In which year India adopted High Yielding
Varieties programme for the first time?
B. import substitution
A. 1977
C. Both
B. 1966
C. 1986
67. The five year planning in India was giving
D. 1956
importance to “self reliance” which means
73. What does HYVs stand for?
A. Avoiding imports of goods which could A. High Yeilding Variety Seeds
be produced in India.
B. High Yeilding Various Seeds
B. Reducing the dependence of Indian
C. None of the above
Economy on foreign countries.
D. none of above
C. Both the statements.
D. Only 1st statement. 74. The father of high yielding variety seeds
is considered to be Norman Borlaug.
68. Quotas are a tax on imported goods while
A. True
tariffs specify the number of goods which
can be imported. B. False
A. True 75. When was GST implemented?
B. False A. 2015
69. Under Import substitution trade policy: B. 2017
A. Instead of exporting vehicles made C. 2018
in india to foreign countries, industries D. 2014
would be encouraged to import them.
B. Instead of importing vehicles made in 76. What type of economy is followed in In-
a foreign country, industries would be en- dia?
couraged to produce them in India itself. A. Communist

1.13 Indian Economy (1950-1990) 304
B. Capitalist 82. Evaluate the below statements related to

land reforms.i) Just a year after indepen-
C. mixed
dence, steps were taken to abolish in-
D. socialist termediaries and to make the tillers the
owners of land.ii) The purpose of land
77. Subsidies do not allow prices to indicate ceiling was to keep the concentration of
the supply of a good. True/False? land ownership in the hands of a selected
A. True few.Which of the above are correct?
NARAYAN CHANGDER
B. False A. Only i
B. Only ii
78. Planning in India started with a heavy re-
C. Both i and ii
liance on the sector.
D. Neither i nor ii
A. Public
B. Private 83. ‘Abolition of Intermediaries ‘ and ‘Land
Ceiling” are part of:
C. Both a and b
A. Industrial reforms in India
B. External sector reforms in India
79. In India what type of economic system is C. Land reforms in India
being followed?
D. Banking Reforms in India
A. capitalism
B. socialism 84. Schedule comprise of industries which
would be exclusively owned by the state:
C. Mixed
A. A
D. Monarchy
B. B
80. Capilalist is controlled and operated by C. C
A. private sector D. None
B. public sector
85. Who formulates five year plans in India?
C. both a and b
A. R.B.I.
D. neither a nor b
B. Planning Commission
81. According to Industrial Policy Resolution, C. Parliament
1956, following industries were part of
D. Supreme court
Schedule A:
A. Arms and ammunition 86. Small-scale industries are more ‘labour in-
tensive’ i.e., they use more labour than
B. Chemical industry
the large-scale industries and, therefore,
C. atomic energy generate less employment.
D. railways A. True
E. shipbuilding B. False

1.13 Indian Economy (1950-1990) 305
87. Tick mark all the requirements to reap the C. 2007-2012

benefits of Green Revolution.
D. 2012-2017

A. Fertilizers and pesticides
93. The maximum size of land an individual
B. High Yieding Variety seeds
could have is known as
C. Regular supply of water
A. Consolidation of land holdings
D. Adequate Finance
B. Abolition of intermediaries
88. The planning commission was set up in
C. Land ceiling
which year in India?
A. 5th March 1951
B. 25th April 1951 94. Eliminating subsidies will eliminate the
C. 20th April 1951 goal or equity
D. 15th March 1950 A. true

B. false
89. Fixing the maximum size of land which
could be owned by an individual is called? 95. What is the duration of plan period in In-
A. Land fragmentation dia?
B. Land ceiling A. 10
C. Land consolidation B. 2
D. Land upgradation C. 3
90. Which of the following is not included in D. 5
land reforms?
96. How many industries have been reserved
A. land ceiling for the public sector under Industrial Policy
B. abolition of intermediaries Resolution, 1956?
C. consolidation of land holdings A. 17
D. use of HYV seeds B. 21
91. Planning commission was set up in India C. 15
with the Prime Minister as its Chairperson D. 2
in
A. 1947 97. In the field of Economic Planning in India
the government of India substituted NITI
B. 1950
Ayog for Planning Commission and the on
C. 1951 going five year planning concept abolished
D. 1948 in which year?
A. 2015
92. What are the years of India’s 12th five-
year plan? B. 2016
A. 1997-2002 C. 2017
B. 2002-2007 D. 2018

1.13 Indian Economy (1950-1990) 306
98. The policy makers of independent India 102. Who is the chairperson of the Planning
tried to bring in growth and equity in commission?
the agriculture sector through:i) Bringing A. Prime Minister
in land Reformsii) Without using any ‘High
Yielding Variety’ (HYV) seedsWhich of the B. President
above are correct? C. Chief Minister
A. Only I D. Governor
B. Only II 103. The Village and Small-Scale Industries
NARAYAN CHANGDER
C. Both I and II committee also called the Karve commit-
D. Neither I nor II tee was constituted for the development
of small-scale industries in
99. Which of the following steps promoted the A. 1950
growth of the economy as a whole by stim-
B. 1954
ulating the development of industrial and
tertiary sectors? C. 1955
A. Independence D. 1956
B. Planning 104. The Industrial licensing policy introduced
C. Colonial rule during 1950-1990 aimed at
D. Green revolution A. Expansion of industries in backward re-
gions.
100. Which one of the central problem of an
B. Promotion of regional equality.
Economy
C. Checking undue expansion of indus-
A. what to produce
trial sector.
B. How to Produce
D. All of the above.
105. NITI Aayog was formed on?
D. All of these
A. 1 January 2014
101. ASSERTION(A):Just a year after indepen- B. 1 January 2015
dence, efforts towards land reforms were
introduced. REASON (R):Ownership of C. 1 July 2015
land would give incentives to the tillers to D. 1 July 2014
invest in making improvements.
106. Import substitution policy aimed at re-
A. a. Both Assertion (A) and Reason (R) placing or substituting imports with
are true and Reason (R) is the correct ex-
planation of Assertion (A) A. Export Promotion
B. Both Assertion (A) and Reason (R) are B. inward-looking trade strategy
true and Reason (R) is not the correct ex- C. domestic production
planation of Assertion (A) D. None of these
C. Assertion (A) is true but Reason (R) is
false 107. Long term plan is also termed as
D. Assertion (A) is false but Reason (R) is A. Objectives of plan

true B. Objective planning

1.13 Indian Economy (1950-1990) 307
C. Perspective planning 113. The Planning Commission was set up in:

D. both b and c A. 1948

108. One of the common goals of five year B. 1950
plans is ‘growth’. What does the growth C. 1951
imply?
D. 1956
A. A large stock of productive capital
B. A large size of supporting services like 114. In a market economy, is also called as
transport and banking , only those consumer goods will be
produced that are in Demand.
C. An Increase in the efficiency of produc-
tive capital and services A. Capitalism
D. All of the above B. Socialism
C. Both A and B
109. A direct tax is a tax which is imposed on.
D. None of these above
A. Corporations only
B. None of these 115. Which of the following statements re-
C. Individuals only garding high yielding variety (HYV) seeds
are correct?i) The use of these seeds re-
D. Individuals and corporations quires neither the use of fertilisers nor the
110. In a capitalist society the goods produced pesticides.ii) Dependence on regular sup-
are distributed among people not on the ply of water is eliminated.iii) In the first
basis of what people need but on the basis phase of the green revolution(mid 1960s
of what people can afford and are willing upto mid 1970s), the use of HYV seeds
to purchase. This primarily benefited the wheat growing re-
A. True 1970s to mid-1980s), the HYV technol-
B. False ogy benefited more variety of crops.iv)
In the first phase of the green revolution,
111. Which of the following is the main focus
the use of HYV seeds was restricted to
of “Aatma Nirbhar Bharat Abhiyaan” an-
the more affluent states such as Punjab,
nounced by Prime Minister Narendra Modi
Andhra Pradesh and Tamil Nadu.
to combat covid-19 crisis?
A. i and iii
A. Increasing tax on all imported goods.
B. Fixing the quantity of imports. B. iii and iv
C. Enable India to become self reliant C. i, ii, iii and iv

economy. D. ii, iii and iv
D. None of the above 116. The portion of agricultural produce which
112. In which year was the Planning commis- is sold in the market by the farmers is
sion set up in India? known as,
A. 1947 A. Trade deficit
B. 1948 B. Marketed surplus
C. 1949 C. Subsidy
D. 1950 D. Import substitution

1.14 Indian Economic Development & policy 308
117. Legally stipulated maximum size beyond 119. When did Industrial policy resolution take
which no individual farmer can hold any place in India?
land A. 1957
A. Tenancy reforms
B. 1948
B. Abolition of intermediaries
C. 1954
C. Land consolidation
D. 1956
D. Land Ceiling
NARAYAN CHANGDER
118. What is the year of India’s 12th 5-year 120. A good indicator of growth is steady in-
plan? crease in the:
A. 2012-2017 A. Gross Domestic Product

B. 2007-2017 B. Net Domestic Product
C. 1951-1056 C. Population
D. 2002-2007 D. National Income
1.14 Indian Economic Development & policy

1. What is the primary objective of the Public 4. How many industries have been reserved
Distribution System (PDS) in India? for the public sector under Industrial Policy
Resolution, 1956?
A. To provide cash directly to beneficia-
ries A. 17
B. To distribute essential food items and B. 21
commodities to eligible households
C. 15
C. To offer healthcare services to the
poor D. 2
D. To support the agricultural sector 5. Money that can be directly used for trans-
action is
2. Which of the following is not considered a
factor income A. near money.
A. Rent B. broad money.
B. Wages C. M1.
C. Gifts from abroad D. M2.
D. Profit
6. In which year is education commission
3. When was Navratna Policy announced formed?
A. 1992 A. 1964
B. 1991 B. 1960
C. 1995 C. 1947
D. 1996 D. 1970

7. Which of the following programme ia also B. Consistent Poor

known as National Rural Livelihoods Mis- C. Churning Poor
sion (NRLM)

D. Transient Poor
A. Swarna jayanti Shahari Rozgar Yojana
(SJSRY) 12. Which scheme encouraged people to open
bank account in 2014?
jana A. Integrated Child development scheme
C. Prime Minister Rozgar Yojana (PMRY) B. Public distribution system
D. Rural Employment Guarantee Pro- C. National old age scheme

gramme (REGP) D. Jan Dhan Yojana
8. What type of money would this be? 13. Identify the programme which aim at im-
proving the food and nutritional status of
the poor?
A. Public Distribution System (PDS)
B. Integrated Child Development
Scheme(ICDS)
C. Midday meal scheme( MDMS)
D. All of the above
A. Commodity
14. People who are always poor and those
B. Fiat
who are usually poor but who may some-
C. Representitive times have little more money (exam-
D. Gold ple:casual workers) are grouped together
as the
9. How many percent of Indian farmers get A. Chronic poor
Minimum Support Price (MSP) in India
B. Churning poor
A. 100%
C. Occasionally poor
B. 65%
D. Transient poor
C. 25%
15. year adopted HIgh yielding variety for
D. 6% the first time
10. Mention the Indian economy’s nature on A. 1977
the Independence B. 1966
A. under developed C. 1986
B. backward D. 1956
C. stagnant 16. is the sum of individual poverty
D. all of the above A. Average poverty
11. People who never move above the B. Aggregate poverty
poverty line are called C. Absolute poverty
A. Chronic Poor D. None of the above

17. Rule stating that a percentage of every de- 22. Choose the correct meaning of organised
posit be set aside as legal reserves sector:
A. monetary policy A. It covers those enterprises where the
terms of employment are regular.
B. discount rate
C. reserve requirement
ment.
D. margin requirements
C. Jobs are not regular.
NARAYAN CHANGDER
18. Which type of poverty is characterized by D. It provides low salaries
a lack of basic necessities like food, clean
water, and shelter? 23. Quotas are a tax on imported goods while
tariffs specify the number of goods which
A. Absolute poverty can be imported.
B. Relative poverty A. True
C. Income poverty B. False
D. Wealth poverty 24. Under Industrial Policy Resolution (IPR),
19. Poverty alleviation programmes are imple- 1956, Category II of the industrial sector
mented with the help of which of the fol- includes industries jointly owned and con-
lowing programme from 1990 onwards? trolled by the private sector and the state.
A. Swarna Jayanti Gram Swarozgar Yo- A. True

jana B. False
B. Self-help Group 25. What are the years of India’s 12th five-
C. MGNREGA year plan?
D. None of the above A. 1997-2002
B. 2002-2007
20. SGSY stands for
C. 2007-2012
A. Swarn Jayanti Gram Self-Employment
D. 2012-2017
Scheme
B. Sampoorna Jayanti Gram swarozgar 26. net investment is equal to
yojana A. gross investment +depreciation
C. Swarna jayanti Gram swartantra yo- B. gross investment-depreciation
jana C. gross investment xdepreciation
D. Swarna jayanti gram shahri swarozgar D. none of above
yojana
27. What is the term for a situation where
21. The factories, machines, and technology the demand for labor exceeds the avail-
that people use to make products to sell. able supply of labor?
A. capital goods A. Labor shortage
B. human capital B. Labor surplus
C. entrepreneurship C. Labor strike
D. none of above D. Labor union

28. Which objective of planning was consid- 34. British rule lasted for almost for years.
ered a necessity to reduce our dependence A. 100 years
on foreign goods:

B. 50 years
A. modernisation
C. 200 years
B. self reliance
D. 300 years
C. growth
D. all of the above 35. Economists identify the poor on the basis
of their:
29. When was the planning commission set up A. occupation
in India?
B. ownership of assets
A. 5th March 1951
C. income
B. 25th April 1950
D. Both 1 and 2
C. 20th March 1951
D. 15th March 1950 36. A situation in which more persons are em-
ployed on a job than are optimally required
30. Indian economy depend on secto is:-
A. manufacturing A. Structural unemployment
B. agriculture B. Disguised unemployment
C. mining C. Cyclical unemployment
D. production D. Seasonal unemployment
31. which of the following is an example of is 37. Capitalist Economy is controlled and oper-
non durable goods? ated by
A. milk A. Private sector
B. bread B. Public sector
C. both a and b C. Both A and B
D. none of these D. None of the above
32. those goods which satisfy human wants 38. The minimum calorie requirement in Rural
directly are called? areas to decide poverty line is
A. intermediate goods A. 2100 calories
B. capital goods B. 2600 calories
C. consumer goods C. 2400 calories
D. none of these D. 2000 calories
33. The sectors are classified into public and 39. What was growth in per capita income at
private sector on the basis of: the time of British rule
A. Employment conditions A. 0.7
B. The nature of economic activities B. 0.5
C. Number of workers employed C. 5
D. Ownership of enterprises D. 10

40. In which of the following type of econ- 46. percentage of population dependent on
omy are resources owned privately and agricultural sector.
the main objective behind economic activ- A. 1/2 %
ities is profit-making?
B. 1/3%
A. Capitalist
C. 1/8%
B. Socialist
D. none of above
C. Mixed
NARAYAN CHANGDER
D. Global 47. There exists a direct relationship between
and poverty
41. classification of goods depend on the
A. unemployment
A. consumption of goods
B. famine
B. end use
C. poor health
C. first use
D. debt
D. none of these
48. When was New Economic Policy intro-
42. MGNREGA was launched in the year duced in India
A. 2000 A. 1991
B. 2005 B. 1981
C. 2006
C. 1995
D. 2004
D. 2000
43. The division of money into M1, M2, and
49. who is who
M3 is based on
A. me
A. assets
B. supply B. rashi
C. amount in circulation C. gopi
D. liquidity D. none of above
44. The final approval to the five-year plans 50. Who among these had estimated National
of India is given by? income for first time
A. NITI Aayog A. V.K.R.V RAO
B. President of India B. R.C DESAI
C. National Development Council C. NONE OF THESE
D. National Development Council D. BOTH OF THESE
45. on 15th august 2020 we celebrated 51. In which year is the Task Force Group
independence day. formed?
A. 72 A. 1979
B. 73 B. 1985
C. 74 C. 1990
D. 75 D. 1947

52. Which of the following is a phase of circu- C. privatisation

lar flow of income

A. Generation phase
B. Distribution phase 58. refrigerator purchased by a confectionery
shop is and example of?
C. Disposition phase
A. final good
D. All of these
B. intermediate good
53. Which of the following best describes the
GST? C. capital good
A. A direct tax on personal income D. both a and c

B. A tax on the sale of goods only 59. What was the nature of the Indian econ-
C. A consumption-based indirect tax on omy on the eve of independence?
goods and services A. Stagnant
D. A tax exclusively on exports
B. Backward
54. The minimum calorie requirement in Rural C. Underdeveloped
areas to decide poverty line is
D. All of these
A. 2100 calories
B. 2400 calories 60. Underemployment occurs-
C. 2600 calories A. When people are not willing to work.
D. 2000 calories B. When people are working slowly.
55. What does HYVP stand for? C. When people are working less than
A. High Yielding Varieties Products what they are capable of doing.
B. High Yielding Various Programme D. When people are not paid for their
jobs.
C. High Yielding Varieties Programme
D. High Yielding Various Products 61. To protect the goods produced in India
from imports Government made use of
56. small farmers and seasonal workers are
categorised as A. Quotas
A. Churning Poor B. Tariff
B. Transient poor C. Both a and b
C. Always poor D. neither a nor b
D. Usually Poor
62. What was the life expectancy at birth in
57. The process of transferring the ownership, India on the eve of Independence?
Management and control of a public sector A. 44 years
partially / entirely to the private sector is
known as B. 50 years
A. globalisation C. 60 years
B. liberalisation D. All of these

63. What is the role of microfinance institu- D. Both for Public distribution and meet-
tions in supporting workers in the informal ing urgent needs during a period of low
sector? output and scarcity.
A. Microfinance institutions primarily fo-
68. While estimating national income, depreci-
cus on formal sector workers
ation is measured from:
B. They provide access to credit and fi-
A. Durable Consumer goods
nancial services for informal sector en-
trepreneurs B. Capital Goods
NARAYAN CHANGDER
C. Microfinance institutions only serve C. Intermediate goods
large corporations D. Final Goods
D. They offer free financial advice to all
workers. 69. Farmers need credit for consumption pur-
pose such as on birth, death, marriage etc
64. What was the immediate crisis India faced called
in the beginning of the 1990s
A. Productive credit
A. Inflation
B. Unproductive credit
B. Debt Trap
C. Both (i) and (ii)
C. Foreign exchange crisis
D. All of the above
70. traditional industries was India partic-
65. One can trace the approach of providing ularly well known for before the advent of
basic amenities through public expenditure the british rule.
from the
A. chemical industry
A. First five year plan
B. handicraft industry
B. Third five year plan
C. jute industry
C. Fifth five year plan
D. steel industry
D. Sixth five year plan
71. The minimum requirement of a person
66. Which industry employs the largest num-
ber of women in India? A. food
A. Tea B. education
B. Textile C. car
C. Jute D. both a and b
D. Coal 72. refers to poverty of people in compar-
ison to other people, regions or nations.
67. Buffer stocks are used for
A. absolute poverty
A. Exporting
B. relative poverty
B. Public Distribution
C. both a and b
C. Meeting urgent needs during a period
of low output and scarcity D. neither a nor b

73. The Government implemented plan to C. Direct Benefit Transfer (DBT)

prioritize certain sectors and allocate re- D. Public Distribution System (PDS)
sources accordingly-

A. annual plan 79. The action plan includes elements
B. industrial plan A. Development of the means of trans-

port. linking the rural area with the urban
C. five year plan areas
D. state led plan B. Provision of power/.energy for the ru-
ral area
74. The first five year plan was launched for a
period from C. Permanent means of irrigation
A. 1948-1953 D. All of the above
B. 1959-1954 80. The portion of agricultural produce that is
C. 1951-1956 sold in the market by farmers is known as
D. 1955-1960
A. Trade deficit
75. The Poverty line in India is prepared on the B. Marketed surplus
basis of
C. Subsidy
A. Income of individual
D. Import substitution
B. consumption expenditure
81. Which of the following is the reason of
C. National income
poverty
D. Per capita income
A. Inflation
76. Which age group of children is included for B. Inadequacy of capital
calculating Net Attendance Ratio?
C. Low rate of growth
A. 6-10 D. All of the above
B. 7-11
82. The father of high yielding variety seeds
C. 5-9 is considered to be Norman Borlaug.
D. 14-15 A. True
77. In which year is NABARD formed? B. False
A. 1980 83. Employment figures of a country are based
B. 1979 on data collected from 5-yearly survey on
employment and unemployment. Which or-
C. 1991
ganisation conducts this survey?
D. 1982
A. ILO-International Labour Organisation
78. Which of the following is an example of a B. Census of India
cash transfer program in India? C. NREGA 2005-National Rural Employ-
A. Mahatma Gandhi National Rural Em- ment Guarantee Act, 2005
ployment Guarantee Act D. NSSO-National Sample Survey Organi-
B. Pradhan Mantri Jan Dhan Yojana sation

84. refers to poverty of people in compar- 90. is not the process of Agricultural Mar-
ison to other people, regions or nations. keting.
A. Relative A. Arranging credit
B. Absolute B. Packaging the produce according to
buyers’ preference
C. Both 1 and 2
C. Storing the produce for future sale
D. None
D. Selling the produce when the price is
NARAYAN CHANGDER
85. Food inflation causes both demand-pull in- lucrative
flation as well as Inflation
91. Agriculture marketing does not comprise
A. Cost-Push
of
B. Demand-Push
A. Transportation of the produce to the
C. Supply-Push marketplace for sale
D. None of the above B. Grading of the produce according to
the quality
86. The socialist economy is also known as
C. Storage of the produce for sale in fu-
ture
A. Mixed
D. Credit has been taken to meet expen-
B. Traditional diture on agricuture.
C. Market
92. A person who starts a business to produce
D. Command a new product in the marketplace is known
as:
87. me are you
A. A manager.
A. a
B. A bureaucrat.
B. b
C. An entrepreneur.
C. c
D. Consumer
D. d
88. which of the following is a stock variable? micro Economics study
A. interest on capital A. National Income
B. distance between delhi and manali B. Consumer behavior
C. expenditure of money C. Unemployment
D. all of these D. Foreign trade
89. Which of these is not a component of op- 94. refer to taxes levied on imported
erating surplus? goods
A. Interest A. quotas
B. Rent B. tariff
C. Royalty C. lagaan
D. Wages D. none of these

95. Which of the following will be included in 100. What does the term “jobless growth” re-
national income of India fer to in the context of India’s economic
development?

A. Old age pension
A. Economic growth without any impact
B. Subsidies
on employment
C. Scholarship
B. The creation of new jobs without any
D. Salaries increase in economic output
96. ISI policy aimed to develop industries C. A decline in both economic growth and
employment
A. domestic
D. The rapid growth of the informal sec-
B. foreign tor in the economy
C. agriculture
101. Which of the following is NOT a function
D. manufacturing of money?
97. What is the potential benefit of increasing A. Unit of Account

female labor force participation for a coun- B. medium of exchange
try’s economy?
C. liquidity value
A. It may lead to higher unemployment D. store of value
rates among men
B. It can contribute to economic growth 102. What is Head count ratio?
and higher GDP A. Total number of people in a country
C. It often results in wage stagnation for B. Proportion of people below poverty
both men and women line.
D. It primarily benefits multinational cor- C. percentage of people above poverty
porations line
98. Which social sector encompasses programs D. Total number of poor in a country
and services related to healthcare, medical 103. In which year PMEGP formed?
facilities, and public health?
A. 2005
A. Education sector
B. 2000
B. Health sector
C. 2008
C. Environmental sector
D. 2019
D. Housing sector
104. If the reserve requirement is 10% and I
99. which of the following is long period objec- put in $100, what is the amount a bank
tive of five year plans in India can loan out?
A. increase in national income and PCI A. $80
B. full employment B. $90
C. equitable distribution C. $72
D. all of these D. .9

105. in which year was the planning commis- C. restrict imports and protect domestic
sion abolished industries from foreign competition
A. 2017 D. make exported goods cheaper
B. 2015
C. 2016 111. What is fiscal development?
D. 2914 A. The growth of government expendi-

tures
106. Urban poor includes
NARAYAN CHANGDER
B. The improvement of a country’s finan-
A. street cobblers cial sector
B. road side vendors
C. The process of achieving economic sta-
C. push cart vendors bility through taxation and government
D. all of the above spending
107. When was the first census data collected D. The expansion of a nation’s industrial
during British rule? base
A. 1880
112. What does a trade surplus indicate in a
B. 1881 country’s external sector?
C. 1882
A. Exports exceeding imports
D. 1981
B. Imports exceeding exports
108. is the social security programme initi-
C. Stable trade relations
ated by the Central government to help a
few specific groups D. A declining economy
A. Pradhan Mantri Gramodaya Yojana
113. Which sector of the Indian economy has
B. Midday Meal Scheme
traditionally been a major source of em-
C. Integrated Child Development Scheme ployment for the majority of the work-
D. National Social assistance Programme force?
109. What is the Cash Reserve Ratio (CRR)? A. Agriculture

A. the fraction of the deposits that com- B. Manufacturing
mercial banks lend to the customers
C. Information technology
B. the fraction of the deposits that RBI
must keep with commercial banks D. Financial services
C. the fraction of the deposits that com-
114. Which of the following is not a goal of
mercial banks must keep with RBI
five year plan?
D. none of above
A. Growth
110. Tariffs and quotas adopted under foreign
B. Equality
trade policy during 1950-1990 was to:
A. increase exports C. Land reforms
B. increase foreign competition D. Modernisation

115. Identify the incorrect statement.( 120. Under which scheme each bank account
A. Green Revolution was the result of holder is entitled to Rs.1 lakh accident in-
surance Rs.30, 000 insurance cover?

technological and institutional reforms
B. Green Revolution took place in all ma- A. Prime Minister’s Rozgar Yojana
jor states of India B. MGNREGA
C. Green Revolution was due to use of C. Jan Dhan Yojana
HYV Seeds
D. PMRY
D. Green Revolution was limited to few
crops. 121. Accepting deposits from individuals or
firms and providing loans to the public are
116. Where will you find the disguised unem-
the basic function of
ployment most? Select the correct option
from those given below: A. Financial institution.
A. Among part-time industrial workers B. Commercial banks.
B. In most of the government offices C. Insurance company.
C. In big private companies D. Bank Negara Malaysia.
D. Among agricultural workers working
122. NREGA (National Rural Employment
117. what part of GDP was earned by agricul- days of employment in a year in many
tural sector districts of India. What are the correct
number of days?
A. 20
A. 200 days
B. 50
C. 60 B. 100 days
D. 70 C. 30 days
D. 60 days
118. Assume the total population of a coun-
try is 200 crores and the people below 123. Government owns most of the assets and
poverty line is 44 crores. What is the provides all the services:-
Head Count ratio?
A. Private Sector
A. 20 percent
B. Public Sector
B. 25 percent
C. Organised Sector
C. 22 percent
D. Tertiary Sector
D. 26 percent
119. The main objective of the first five-year 124. Which of the following is not the subject
plan of India was? matter of macroeconomics?
A. Development of infrastructure A. National Income Accounting
B. Development of ports B. Business cycle
C. Development of the industries C. Laws of demand and supply
D. Development of agriculture D. General price level

125. Which of the following organisation B. 1951

looks after the credit needs of agriculture C. 1981
and rural development in India.
D. 1991
A. FCI
B. IDBI 131. depreciation of fixed capital assets refers
to?
C. NABARD
A. normal wear and tear
D. ICAR
NARAYAN CHANGDER
B. foreseen obsolescence
C. normal wear and tear and foreseen ob-
transfer income
solescence
A. Bonus
D. none of these
B. Unemployment allowance
132. The concept of normal residents applies
C. Compensation of employees
to
D. All of above
A. Individuals only
127. The government imposed strict controls B. Institutions only
and licenses on sector enterprise
C. Both
A. government
D. None of them
B. private
C. production 133. final goods refer to those goods which
are used either for or for
D. manufacturing
A. consumption, investment
128. What was the growth rate of per capita B. consumption, resale
income in India on the eve of Indepen-
dence? C. resale, investment
A. 0.9% D. resale, further production
B. 0.5% 134. Which of the following is a characteristic
C. 1.2% of people below the poverty line?
D. 3% A. Debt trap
B. Gender inequality
129. Poverty is the inability in secure the
consumption requirements for life, health C. poor health
and efficiency. D. all of the above
A. minimum
B. maximum producing sector in India. Select one from
C. constant the following alternatives:
D. stable A. Secondary sector
130. Which year is known as the”Year of B. Tertiary sector

Great Divide” C. Primary sector
A. 1921 D. Technology sector

136. “Ariana Rose purchases a new computer 141. The colonial government never made
from the MYT Computer and paid by credit any sincere attempt to estimate India’s
card.” Based on the statement, choose the national and per capita income. Who

appropriate money function. among the following were the Indian es-
timators who attempted to measure such
A. A store of value.
incomes?i) Dadabhai Naoroji ii) William
B. A measure of value. Digby iii) V.K.R.V. Rao iv) Motilal Nehru
C. A medium of exchange. A. I and ii
D. A standard of deferred payment tools. B. i and iii
C. i, iii and iv
137. small farmers and seasonal workers are
categorised as D. none of above
A. chronic poor 142. What is the term for the condition in
B. churning poor which an individual who is willing and able
to work is unable to find suitable employ-
C. occasionally poor ment?
D. Both B and C A. Unemployment
138. How many industries are reserved for B. Underemployment

public sector at present C. Labor force participation
A. 4 D. Wage stagnation
B. 17 143. The term Green Revolution has been used
C. 6 to indicate higher production through
D. 3 A. creation of grasslands
B. planning more tree
139. Legally stipulated maximum size beyond
C. creation of gardens in urban areas
which no individual farmer can hold any
land D. enhanced agricultural productivity per
hectare
A. Tenancy reforms
B. Abolition of intermediaries 144. Which of the following neighbouring
countries has better performance in terms
C. Land consolidation of human development than India?
D. Land Ceiling A. Bangladesh
140. Which of the following is wage employ- B. Sri Lanka

ment Programme? C. Nepal
A. Prime Minister Rozgar Yojana D. Pakistan
B. Swarna Jayanti Gram Swarozgar Yo- 145. The opening of suez canal in 1869:
jana
A. raised the cost of goods transporta-
C. Swarna Jayanti Shahari Rozgar Yojana tion between Britain and India
D. Mahatma Gandhi National Rural Em- B. reduced exports of goods from India to
ployment Guarantee Act foreign countries

C. reduced the cost of transportation be- B. 40

tween Britain and India C. 72
D. Adversely affected Britain’s monopoly
D. 84
control of india’s trade
151. Depreciation means:
146. India liberalized its trade policies reduc-
ing and removing import licensing re- A. Destruction of a factory due to fire
quirement B. Loss in fixed assets due to normal
NARAYAN CHANGDER
A. tax wear and tear
B. tariffs C. Loss in fixed assets due to earthquake
C. income D. Shut-down of a factory due to strike
D. wage
152. Real flow is also known as
147. RBI doesn’t consist of A. Nominal flow
A. Longevity B. Physical flow
B. Knowledge C. Money flow
C. Life Expectancy D. Both a and b
D. Standard of living
153. What is needed to provide protection
148. What is the primary goal of closing the against natural calamities like floods,
gender gap in labor force participation drought, locusts, thunderstorms, etc.?
rates?
A. Multiple cropping
A. To reduce women’s economic indepen-
dence B. Green revolution
B. To ensure equal employment oppor- C. Crop insurance

tunities and economic empowerment for D. HYV
women
154. Competition and free enterprise are most
C. To increase the retirement age for
common in which type of economic sys-
women
tem?
D. To prioritize men’s employment over
A. A traditional
women’s
B. B market
149. When was the planning commission set
up? C. C communist
A. 1949 D. D planned
B. 1950 155. which of the following is poverty estima-
C. 1951 tion tool
D. 1850 A. sen index
B. poverty gap index
150. What percentage of Indian population
was engaged in agriculture C. squared poverty index
A. 50 D. all of the above

156. British policies transformed the country 161. Which of the following implies use of ad-
into a of raw material and of fin- vanced technology?
ished goods from Britain.

A. modernisation
A. consumer, supplier B. liberailisation
B. supplier, consumer C. privatisation
D. gloabalisation
157. Which regulatory body plays a central
role in overseeing India’s financial sector? 162. Who is the governor of RBI at present.
A. Securities and Exchange Board of In- A. Urjit Patel
dia (SEBI) B. Shakti Kant Das
B. Reserve Bank of India (RBI) C. Raghuram Rajan
C. Ministry of Finance D. Manmohan Singh
D. Competition Commission of India (CCI) 163. Name the Finance Minister of India
158. One of the following is not associated A. Arun Jetly

with a socialist economy identify the fea- B. Nirmala Sitaraman
ture C. Urjit Patel
A. the economy has no private property D. P.Chidambaram
and everything is owned by the state.
164. How were the third category of indus-
B. the government provides free health tries allocated to private sector kept under
care to those who need it state control?
C. incomes are more or less equally dis- A. allocation of capital goods
tributed
B. industrial licensing
D. it is called a free market economy C. state distribution of goods
159. The sector under which activities involves D. procurement of goods by government
exploitation of the natural resources is only
165. The economic term used to rank countries
A. primary sector according to human development is
B. secondary sector A. GDP Per Capita
C. tertiary sector B. GNP

C. Gini
D. quaternary sector
D. HDI
160. The first poverty line line in India was
166. Abolition of intermediateries and Land
discussed by
ceiling are part of
A. Dadabhai Naoroji A. Industrial reforms of India
B. PC Mahalanobis B. External sector reforms in India
C. VKRV Rao C. Land reforms in India
D. Amartya Sen D. Banking reforms in India

167. Based on monetary value (per capita ex- 172. Development of a country can generally
penditure ) of the minimum calorie intake, be determined by its:-
in 2011-12, the poverty line was defined A. Per capita income
for rural areas as consumption worth Rs
per person per month and for urban B. Average literacy level
area it was Rs C. Health status of its people
A. 1000, 816 D. None of these
B. 816, 1000
NARAYAN CHANGDER
173. Which of the following is not an institu-
C. 815, 1000 tional problem in Indian Agriculture?
D. 1000, 800 A. (a) Defective tenancy reforms

B. b) Lack of credit facilities
168. Which institute does not provide direct
C. Fragmented land holding
loans to farmers?
D. d) Lack of irrigation
A. NABARD
B. Commercial bank 174. Which sector of the informal economy is
characterized by small-scale, unregistered
C. Regional Rural Bank businesses and street vendors?
D. Cooperative Society A. Agricultural sector
169. True or False. Economic Development B. Industrial sector

refers to how advanced an economy is. C. Services sector
A. True D. Manufacturing sector
B. False 175. The national level poverty line consider it
as 22%. Find with the help of diagram In
170. Which of the following is a common fea- which of the following state ratio of poor
ture of informal sector employment? are lesser?
A. Formal contracts and legal protections
B. Stable and permanent employment
C. Lack of social security benefits
D. Access to paid leave and healthcare
171. Why did the government set up a plan-

ning commission in 1950? A. Rajasthan
B. Tamil Nadu
A. to help design and execute suitable
policies for economic development C. Andhra Pradesh
B. to help design and execute suitable D. Gujarat
policies for social development
176. is implementing the Rural Employ-
C. to help design and execute suitable ment Generation Programme (REGP)
policies for political development
A. The Khadi and village Industries Com-
D. none of above mission

B. The Central Government 182. Domestic income is greater than National

C. The State Government Income if

D. None of the above A. NFIA is positive
B. NFIA is zero
177. Which of the following explains the term
economic growth? C. NFIA is negative
A. Increase in per capita production D. None of these.
B. Increase in per capita real income 183. In how many sectors is the occupational
C. Structural change in the economy structure of India is divided?
D. All of the above A. One
178. The british turned the Indian economy B. Two

into supplier of raw material and consumer C. Three
of british industrial goods. this is the fea-
D. Four
ture of which economy
A. colonial 184. Evaluate the below statements related
to land reforms.i) Just a year after inde-
B. stagnant
pendence, steps were taken to abolish in-
C. amputated termediaries and to make the tillers the
D. semi feudal owners of land.ii) The purpose of land
ceiling was to keep the concentration of
179. What will be the top priority in the devel- land ownership in the hands of a selected
opmental goal of a landless labourer? few.Which of the above are correct?
A. Expansion of rural banking A. Only i
B. More days of work and better wages B. Only ii
C. Metal roads for transportation C. Both i and ii
D. Establishment of a high school
D. Neither i nor ii
185. Construction of a bridge comes under
as:
which sector?
A. Agriculture, dairy, fishing and forestry
A. Primary
B. Making sugar, gur and bricks, banking
B. Secondary
C. Transport, communication and bank-
ing C. Tertiary
D. None of these D. Any other sector not mentioned here
181. Which of the following is intermediate 186. Which one of the following is the problem
product? of poverty alleviation Programmes?
A. Pulses purchased by consumers A. Lack of resources
B. Machine purchased by a firm B. improper implementation
C. Wheat used by flour mill C. Lack of infrastructure
D. Wheat used by household. D. All of the above

187. What is the term for the process of con- A. Independence

verting raw materials into finished goods B. Planning
on a large scale?
C. Colonial rule
A. Production
D. Green revolution
B. Manufacturing
C. Distribution 193. Which one of the following is/are the
feature of MGNREGA?
D. Retailing
NARAYAN CHANGDER
A. (a)Self employment by providing bank
188. Which year was established and replace loans
the Planning Commission? B. (b)100 days of guaranteed employ-
A. 2013 ment
B. 2012 C. (c )It is a wage employment pro-
C. 2014 gramme
D. 2015 D. both (b) and (c )
189. In Pre-Independent India who among the 194. is the policy that helps integrate a do-
following first to discuss the concept of a mestic economy with the world economy.
poverty line? A. liberalization
A. VKRV RAO B. globalization
B. WILLIAM DIGBY C. privatisation
C. R C DESAI D. none of the above
D. DADABHAI NAOROJI 195. was the rate of growth of per capita
190. economy is the economy in which output per year during the first half of the
means of production are owned, controlled 20th century
and operated by the government. A. 0.5 %
A. Mixed B. 1 %
B. Socialist C. 1.5%
C. Capitalist D. 2%
D. None of the above 196. is the total money value of all goods
191. When was launched MGNREGP? and services produced in an economy dur-
ing an accounting year.
A. 2001
A. per capita income
B. 2005
B. national income
C. 2008
C. private income
D. 2015
D. disposable income
192. Which of the following steps promoted
the growth of the economy as a whole by 197. Tell percapita income at the time of inde-
stimulating the development of industrial pendance
and tertiary sectors? A. 150

B. 200 203. India on the eve of independence was

C. 230 A. Vibrant economy

D. 300 B. Stagnant economy
198. Which of the following is a subject matter 204. India adopted the economic system.
of Macroeconomics?
A. Capitalist
A. Studies Employment & Unemployment
B. Mixed
B. Determination of National Income
C. Promotes Economic Growth & Devel- C. Socialist
opment D. None of the above
D. All of the above options
205. MGNREGA was based on the principle of:
199. Mahalanobis Modal was started in A. Right to earn
Five year plan.
B. Right to work
A. First
C. Right to live
B. Second
C. Tenth D. None of the above
D. Eleventh 206. Which Indian city is often referred to as

the country’s IT capital and has played a
200. WHO IS THE FATHER OF MACRO ECO-
pivotal role in the services export sector?
NOMICS
A. P SAMUELSON A. Kolkata
B. J M KEYNES B. Mumbai
C. ADAM SMITH C. Bangalore

D. MALTHUS D. New Delhi
201. The planning commission was an estab- 207. In a closed economy is not included
lished in
A. Household
A. 1948
B. Firms
B. 1951
C. Government
C. 1950
D. Foreign sector
D. 1952
202. Which of the following organisation col- 208. Which of the following is the main reason
lect data on poverty in India? behind the poor people in India getting lim-
ited economic opportunities?
A. Reserve Bank of India (RBI)
A. lack of skills and basic literacy
B. National Sample survey organisation
(NSSO) B. scarcity of resources
C. Census of India C. most of them live in rural area
D. None of the above D. none of the above

209. Expand BPO C. General Agreement on terms of Trade

A. Business process outsourcing D. Government Agreement on terms of
B. Balance payment output Trade
C. Balance payment outstanding 215. India opted for mixed economy in

D. Business process outstanding A. Industrial policy of 1948
210. Railways were introduced in India in B. Framing of the Constitution
NARAYAN CHANGDER
which year? C. Second Five year plan
A. 1850 D. Industrial policy of 1948
B. 1853
216. The value of all final goods and services
C. 1854 produced within a country during a partic-
D. 1855 ular year is called as:-
211. Combination of Churning and Occationally
poor is categorised as B. Net Domestic Product
A. Chronic poor C. National Product
B. Usually Poor D. Production of Tertiary Sector
C. Always poor 217. Which of the following is stock
D. Transient Poor A. Wealth
212. Where was the first iron and steel com- B. Savings
pany established? C. Exports
A. Kolkata D. Profits
B. Jamshedpur
218. Which of the following statements re-
C. Patna garding high yielding variety (HYV) seeds
D. Ranchi are correct?i) The use of these seeds re-
quires neither the use of fertilisers nor the
213. Which sector of the economy is character- pesticides.ii) Dependence on regular sup-
ized by jobs that are not part of the formal ply of water is eliminated.iii) In the first
labor market and often lack benefits and phase of the green revolution(mid 1960s
job security? upto mid 1970s), the use of HYV seeds
A. Manufacturing sector primarily benefited the wheat growing re-
B. Informal sector
1970s to mid-1980s), the HYV technol-
C. Service sector ogy benefited more variety of crops.iv)
D. Agricultural sector In the first phase of the green revolution,
the use of HYV seeds was restricted to
214. GATT stands for the more affluent states such as Punjab,
A. Genral Agreement on Trade and Tariff Andhra Pradesh and Tamil Nadu.
B. Government Association for Trade and A. i and iii

Tariff B. iii and iv

1.15 New Economic Policy of 1991 329
C. i, ii, iii and iv A. True

D. ii, iii and iv B. False

219. abolition of intermediaries and land ceil- 223. What is the tax or duty on imports
ing are part of called?
A. industiral reforms in India
A. Tariff
B. land reforms in india
B. Quota
C. external sector reforms in India
C. Export
D. banking reforms in India
D. None of these
220. SGSY stands for
A. Swarn Jayanti Gram Self-Employment 224. Central government in India made a law,
Scheme implementing the Right to Work in how
many districts of India?
B. Golden Jayanti Urban Self-
Employment Scheme A. 150 districts
C. Swarna Jayanti Gram Swathantrar Yo- B. 200 districts
jana C. 250 districts
D. Sampoorna Jayanti Gram Swarozgar D. 625 districts
Yojana
225. Which one of these is a central problem
221. India’s economy was poor and backward
of an Economy?
before the colonial rule.
A. true A. What to produce
B. false B. How to produce
222. industries were the focus for the second
five-year plan. D. All of the above
1.15 New Economic Policy of 1991

1. WHICH OF THE FOLLOWING INDUSTRIES D. Exporters
ARE RESERVED FOR THE PUBLIC SECTOR
3. Reforms related to revenue and expendi-
A. DEFENCE EQUIPMENTS
ture of government is termed as
B. ATOMIC ENERGY GENERATION
A. Industrial Reforms
C. CEMENT
B. Monetary Reforms
D. BOTH 1 AND 2
C. Fiscal Reforms
2. Mudra Bank was set up to meet the credit
needs of the: D. Financial Reforms
A. farmers 4. Liberalisation means a system of laissez-
B. Small Enterprises faire
C. Large Enterprises A. True

B. False 10. Choose the correct alternative show-

ing chronological order of the following
5. Which of the following reforms were initi- eventsi. establishments of GATTii. Demon-
ated under liberalisation by Govt etisation in Indiaiii. Maharatna status to
A. Industrial sector reforms different companies.iv. Foreign Exchange
Management Act
B. Tax reforms
A. iv, iii, i, ii
C. Financial sector reforms
B. i, iv, iii, ii
NARAYAN CHANGDER
D. All of these C. iv, ii, i, iii
6. Which of following step is not taken by the D. iii, i, iv, ii
government to execute policy of privatisa-
11. Assertion (A) Post liberalization,
tion?
the sale of domestic goods has in-
A. Disinvestment of Public Sector creaded.Reasoning (R) The demand for
B. Setting up of BIFR imported goods had increased due to lib-
eral policy.
C. No restriction on expansion of busi-
A. is True but (R) is False
ness
B. is False but (R) is True
C. and (R) both are True and (R) is the cor-
7. Which of following step is taken by the rect explanation
government to execute policy of privatisa- D. and (R) both are True but (R) is not the
tion? correct explanation of (A)
A. Setting up of Board of Industrial and 12. All indirect taxes have been subsumed un-
Financial Reconstruction(BIFR) der:
B. Reduction of Import Duty A. state government tax
C. Abolition of Export duty B. Central Government tax
D. None of the above C. Goods and service tax
D. Value added tax
8. The recent demonetization took place in
A. December 8, 2015 13. LPG policy focused on
B. November 8, 2015 A. Liberalisation

B. privatisation
C. November 8, 2016
C. globalisation
D. December 8, 2016
D. all of these
9. Frequent fixing the price of goods and ser-
14. Which of the following is not a tax re-
vices is part of
form?
A. Liberalisation A. Reduction in tax
B. Privatisation B. Reforms in Indirect taxes
C. both C. Removal of Export Duties
D. none of the above D. Devaluation of Rupee

15. Which of following is a part of Globalisa- B. 3

tion? C. 4

A. Giving more freedom D. 5
B. Integration of different countries of
the world 21. Which one of the following measure was
taken to reduce inflation.
C. Increasing participation of private sec-
tor A. Reduction of CRR and SLR
D. Reducing number of industries B. Increase in CRR and SLR
C. Lowering of exports
16. Outsourcing is an off-shoot of:
A. Liberalisation
B. Privatisation 22. WTO was established in the year
C. Nationalisation A. 1995
D. Globalization B. 1885
C. 2005
17. Which of the following is not a benefit of
demonstration in India? D. 2015
A. Control over corruption 23. Liberalisation implies
B. Counterfeiting use of high denomina- A. reduction in government’s control over
tion notes for illegal activities economy
C. Control on black money B. encouragement to public sector
D. More demanding Customers C. nationalisation
18. What was the main reason for increase in D. none of these
import price during 90s?
24. When was IRDA Act was passed?
A. Increase in crude oil prices
A. 1995
B. War with Pakistan
B. 1999
C. Demonetization
C. 2000
D. Non availability of solar vehicle’s
D. 2010
19. refers to the transfer of assets or ser-
vices function from public to private own- 25. What was the limit on companies Assets
ership. under MRTP Act?
A. Globalisation A. 80 crores
B. Privatisation B. 150 crores
C. Disinvestment C. 120 crores
D. Liberalisation D. 100 crores
20. Recently there are how many types of GST 26. Who was the Prime Minister in 1991 to
in India? take bold and significance decision
A. 2 A. Atal Bihari Vajpayee

B. P.V. Narasimha Rao 32. Reforms in indirect taxes categorised into:

C. Rajiv Gandhi A. financial sector reforms
D. Lal Bahadur Shastri B. Reforms in industrial sector
C. Agricultural sector reforms
27. laissez-faire policy is that in which
D. External sector reforms
A. there is no intervention by the govern-
ment in the functioning of an economy 33. refers to disposal of equity of public
NARAYAN CHANGDER
B. there is intervention by the state in the sector units in the market.
functioning of an economy A. Globalisation
C. there is no intervention by the state in B. Privatisation
the functioning of an economy
C. Disinvestment
D. none of these
D. Liberalisation
28. Which of following is not a part of Liberal-
34. RBI WAS SETUP IN
isation?
A. 1960
A. Reduction in Tariff
B. 1952
B. Removal of licencing policy
C. 1991
C. Simplifying procedure
D. 1935
D. Integration of different countries of
the world 35. Outsourcing is good for India because:
29. Trade between two contries is known as A. It provides employment to large num-
ber of unemployed
A. Multi lateral trade
B. It provides excellence in a particular
B. Bilateral trade field
C. Unilateral trade C. Both (a) and (b)
D. none of above D. Neither (a) nor (b)
30. Which of following is not a major compo- 36. Since 1951, India has been economy.
nent of new economic policy?
A. Socialist
A. Liberalisation
B. Mixed
B. Modernisation
C. Capitalist
C. Globalisation
D. Feudalistic
D. Privatisation
37. When was new economic policy an-
31. ‘Make in India’ is an example of nounced?
A. Liberalisation A. June, 1991
B. Privatisation B. May, 1991
C. Globalisation C. July, 1991
D. none of above D. January, 1991

38. NEP stands for: B. Atomic energy generation

A. New economic policy C. Cement

B. New Export Policy D. Both (a) and (b)
C. New economic progress 44. Which international organisation replaced
D. Nation export policy general agreement on trade and tariff
(GATT):
39. Which of the following was not a feature A. International Monetary Fund
of Demonetisation?
B. United Nations
A. Channelizing savings into formal finan-
C. World Trade Organisation
cial system
D. World Health Organisation
B. Tax administration
C. Cash less economy 45. refers to reduction in the value of do-
mestic currency by the government
D. Promotion of black money
A. Depreciation of rupee
40. refers to disposal of equity of public B. Devaluation of rupee
sector units in the market
C. Revaluation of rupee
A. Globalisation D. Appreciation of rupee
B. Privatisation
46. the policy of planned disinvestments of the
C. Disinvestment public sector
D. Liberalisation A. Liberalisation
E. All of these B. Privatisation
41. involves deregulation and reduction of C. Globalisation
government controls and greater auton- D. none of above
omy of private investment to make econ-
omy more competitive. 47. Structural reforms are also known as
A. Infrastructural development
A. Globalisation
B. Supply side management
B. Privatisation
C. Liberalisation 48. Which Macroeconomic stabilization mea-
sures were taken in 1991?
D. All of these
A. Control of inflation
42. HEAD OFFICE OF WTO IS LOCATED IN B. Fiscal correction
A. GENEVA C. Improvement in BOP
B. BERLIN D. All of the above
C. NEW YORK 49. Trade between two countries is known as:
D. DELHI A. Bilateral trade
43. Which of the following industries Are re- B. Multilateral trade
served for the public sector? C. Both (a) and (b)
A. Defence Equipments D. Neither (a) not (b)

50. After Independence, India had adopted 56. INDIA ASKED FOR A LOAN OF FROM
IMF IN 1991
A. Socialism A. $10 BILLION
B. Capitalism B. $7 BILLION
C. Mixed Economy C. $200 MILLION
D. Communism D. NONE
NARAYAN CHANGDER
51. Reduction of Import Duty is part of 57. The policy encourage foreignprivate partic-
A. Liberalisation ipation in industrial development
B. Globalisation A. Liberalisation
C. Both B. Privatisation
D. None of the above C. Globalisation
52. Abolition of export duty is part of D. none of above
A. Globalisation 58. New Economic Policy was initiated in the

B. Privatisation year
C. Both A. 1980
D. None of the above B. 1988
C. 1990
53. abolishing licensing requirement in most of
the industries is example of D. 1991
A. Liberalisation 59. WTO was established in the year
B. Privatisation A. 1995
C. Globalisation B. 1948
D. none of above C. 1996
54. Find the odd word out:Liberalization dealt D. 1994
with the following-
60. LPG policy focused on:
A. MRTP
A. Liberalisation
B. FERA
B. globalisation
C. SEBI
C. privatisation
D. NTPC
D. all of the above
55. refers to contracting out some of its ac-
tivities to a third party which were earlier 61. Relaxation or removal of strict rules and
performed by the organisation regulation is part of
A. Outsourcing A. Liberalisation
B. Globalisation B. Privatisation
C. Privatisation C. Globalisation
D. Liberalisation D. All of the above

62. What is the full form of LPG? C. Removal of MRTP limit

A. Liberty Prosperity Governance D. All of the above

B. Low Poverty Goals
68. Privatization of the public sector enter-
C. Liberalization Privatization Globaliza-
prises (PSEs) by selling off part of the eq-
tion
uity of PSEs to the public is known as
D. Long Performance Goals
A. Disinvestment
63. Which of the following economic reforms B. Devaulation
we’re initiated by the government under
liberalisation? C. Liberalisation
A. Industrial sector reforms D. Globalisation
B. Financial sector reforms
69. Which is not the features of liberalisation
C. Tax reforms
A. Delicencing
D. All of these
B. Disinvestment
64. Components of New Economic Policy (
NEP) C. Freedom of fixing price
A. Liberalization D. Reduction of tax

B. Privatization
70. Which of the following refers to relaxation
C. Globalization of previous government restrictions?
D. All of the above A. Privatisation
65. Which one is not the features of privatisa- B. Globalisation
tion
C. Disinvestment
A. export promotion
D. Liberalisation
B. Loss of budgetary support to public
sectors 71. Cheaper imported goods was one of the
C. transfer of ownership to the private reasons behind:
sector. A. Growing unemployment
D. Revival of sick units
B. Unbalanced growth
66. Which of the following was the reason for C. Low level of industrial growth
initiation of economic reforms in 1991?
D. Spread of Consumerism
A. Increase in fiscal deficit
B. (b) BoP crises 72. Which of the following is a policy initiated
C. Fall in foreign exchange reserve under New Economic Policy?
D. All of these A. Liberalisation
67. Industrial sectors reforms are B. Privatisation

A. Abolition of industrial licensing C. Globalisation
B. Reduced the role of public sector D. Licensing

1.16 Indian economy on the eve of independence 336
73. Features of Globalization is/are D. All of these
A. Free flow of goods and services across 74. Demonetisation aimed at:
nations A. Curb corruption
B. Free flow of capital across nations B. Digitalization
C. Free flow of information and technol- C. Curtail counterfeit currency

ogy; D. All of the above
NARAYAN CHANGDER
1.16 Indian economy on the eve of independence
1. What is the tax or duty on imports called? A. Bombay to Durgapur
A. Tariff B. Calcutta to Thane
B. Quota C. Bombay to Thane
C. Export D. Calcutta to Durgapur
D. none of above 5. What was the objective of the Green Rev-

olution in India?
2. Read the following statements, Assertion A. Increase industrial production
(A) and reason (R). choose the correct al-
ternatives(A):Indian became an exporter B. Promote self-reliance in food grains
of primary products and an importer of C. Expand foreign trade
finished consumers and capital goods pro- D. Improve infrastructure
duced on Britain.(R):Restrictive policies of
commodity production, trade and tariff 6. When was the first postage stamp re-
pursued by the colonial govt adversely af- leased in India?
fected the structure, composition and vol- A. 1830
ume of India’s foreign trade. B. 1840
A. Both A and R are true and R is the cor- C. 1847
rect explanation of A
D. 1852
B. Both A and R are true and R is not the
correct explanation of A 7. India was a prosperous and wealthy econ-
omy prior to the advent of British rule.
C. A is false but R is false
A. True
D. A is false but R is true
B. False
3. Which one of these is a central problem of 8. Which of the following was the main fea-
an Economy? ture of industrial sector on the eve of inde-
A. What to produce pendence?
B. How to produce A. Non existence of capital good industry
C. For whom to produce B. Bleak expansion of modern industry

C. Discriminatory tariff policy of the
D. All of the above
British government
4. The first train in India linked D. All of these

9. What was the immediate crisis India faced 15. Which of the following explains the term
in the beginning of the 1990s economic growth?

A. Inflation A. Increase in per capita production
B. Debt Trap B. Increase in per capita real income
C. Foreign exchange crisis C. Structural change in the economy
D. All of the above D. All of the above
10. During the time of Indian independence 16. When was TISCO established in India?
what was IMR? A. 1869
A. 216 B. 1907
B. 218 C. 1881
C. 220 D. none of above
D. 214
17. India was merely an exporter of which
11. Before the advent of the British rule, India kind of products on the eve of indepen-
was particularly well known for which of dence
the following industries? A. agricultural products
A. service industry B. Capital goods
B. manufacturing C. Primary sector products
C. capital goods D. None of these
D. handicrafts 18. Assertion (A):Railways was the most im-
12. Last census operation conducted by British portant infrastructure developed during
in india the British period. Reason (R):Railways
enabled people to undertake long distance
A. 1941 travel. It broke geographical and cultural
B. 1881 barriers which promoted national integra-
tion.
C. 1951
A. Both Assertion (A) and Reason (R) are
D. none of above
true and Reason (R) is the correct expla-
13. The most important infrastructure during nation of Assertion (A).
the British Rule in India was: B. Both Assertion (A) and Reason (R) are
A. Airways true and Reason (R) is not the
B. Railways C. Assertion (A) is true but Reason (R) is
false. correct explanation of Assertion(A).
C. Waterways
D. Assertion (A) is false but Reason (R) is
true.
14. Colonialism is a system of political ans so- 19. In the history of demographic transition,
cial relationship between two countries. which year is regarded as the year of great
A. No divide?
B. Yes A. 1901

B. 1902 26. The rate of growth of real output during

C. 1921 the first half of the 20th century in our
country was
D. 1923
A. Less than 1%
20. What was the condition of agriculture sec- B. Less than 2%
tor on the eve of independence?
C. Less than 3%
A. High productivity D. Both (a) and (b)
NARAYAN CHANGDER
B. Abundance of irrigation facilities
27. The sole purpose of the British colonial rule
C. Large and consolidated land holdings in India was:
D. Low productivity A. to increase production of capital goods
21. WHAT IS DEMOGRAPHY? B. to increase handicraft business
A. RELATED TO AGRICULTURE C. to increase the country’s supply of fin-
ished consumer goods
B. RELATED TO INDUSTRY
D. to reduce the country to being a raw
C. RELATED TO SCIENCE material supplier for Britain
D. RELATED TO POPULATION
28. Which year is described as a “Year of
22. Which of the following industry was ad- Great Divide”?
versely affected by partition: A. 1931
A. Silk B. 1921
B. Jute C. 1941
C. Cotton D. 1911
D. Nylon 29. Which of the following highlights the back-
wardness of the agriculture on the eve of
23. Stagnant economy is the one which shows
independence?
little or no growth in income.
A. Gulf between the owners of the soil
A. No
and the tiller of the soil
B. Yes B. Small and fragmented holdings
24. Land settlement introduced by the colonial C. Exploitative land settlement system
government resulted in stagnation in the under the British Raj
agricultural sector. D. Forced commercialisation of agricul-
A. True ture
B. False 30. What was the life expectancy at birth in
India on the eve of Independence?
25. DURING BRITISH RULE BOTH BIRTH RATE
AND DEATH RATE WERE HIGH. IS THE A. 44
STATEMENT B. 50
A. TRUE C. 60
B. FALSE D. none of above

31. Economic infrastructure includes: C. Assertion (A) is true but Reason (R) is
A. communication false

B. banking D. Assertion (A) is false but Reason (R) is
true
C. power
36. At the time of independence of our country
D. all of these.
in which industries did we excel?
32. Decline of handicrafts industries led to: A. Handicrafts
A. Export of finished goods B. Precious stone work
B. Massive unemployment C. Cotton
C. Both (a) and (b) D. All of the above
D. None of the above 37. Indian economy at the time of indepen-
33. GATT stands for dence was a/an economy.
A. Genral Agreement on Trade and Tariff A. Industrial
B. Government Association for Trade and B. agricultural

Tariff C. only (a) and not (b)
C. General Agreement on terms of Trade D. both (a) and (b)
D. Government Agreement on terms of 38. The colonial rule destroyed India’s tradi-
Trade tional handicraft industry.
34. Landholdings at the time of independence A. True
were B. False
A. Large 39. Assertion:Colonial government levied 0%
B. Economic import duty on British goods imported in
C. Fragmented India. Reason:Colonial government sys-
tematically destroyed Indian handicraft in-
D. None of these dustry.
35. Assertion (A):The restrictive policies of A. Both A and R are true and R is the cor-
commodity production, trade and tar- rect explanation of A.
iff pursued by the Colonial government B. Both A and R are true but R is NOT the
adversely affected the structure, com- correct explanation of A.
position and volume of India’s foreign
C. A is true but R is false.D-A is false but
trade.Reason (R):The export surplus gen-
R is true
erated during colonial period did not result
in any flow of gold or silver into India.a) D. Both A and R are false
b) c) d)
40. The first census data were collected in
A. Both Assertion (A) and Reason (R) are during the British rule.
true and the Reason (R) is the correct ex-
A. 1881
planation of Assertion (A)
B. 1891
B. Both Assertion (A) and Reason (R) are
true and the Reason (R) is not the correct C. 1911
explanation of Assertion (A) D. 1921

41. Estimation of national income by is con- C. Raghuram Rajan

sidered most significant. D. Manmohan Singh
A. Dadabhai naoroji
47. On the eve of independence Indian econ-
B. William digby omy was heavily dependent upon
C. A.K.R.V Rao A. Exports
D. R.C.Desai B. Imports
42. Land ceiling refers to C. Either A or B
NARAYAN CHANGDER
A. fixing rural land holding at the existing D. Neither a nor b
level 48. Which of the following is not a goal of five
B. fixing qantum of land held by an indi- year plan?
vidual A. Growth
C. fixing urban land holding at the exist- B. Equality
ing level
C. Land reforms
D. fixing land area for irrigation purpose
D. Modernisation
43. Introduction of tariff policy by the 49. RBI doesn’t consist of
Britishers led to the decay of Indian hand-
icraft industries. A. Longevity
B. Knowledge
A. Zamindari
C. Life Expectancy
B. Modernization
D. Standard of living
C. Discriminatory
D. None of these 50. What is another name for service sector
A. Tertiary
44. When was first jute mill industry started
in india B. Primary
C. Secondary
A. 1881
D. Agriculture
B. 1855
C. 1890 51. mode of production leads to low pro-
ductivity.
D. none of above
A. Feudalistic
45. When did the British East India Company B. Capitalist
get permission to trade in India?
C. Socialist
A. 1618
D. All of these
B. 1757
52. What was the main source of livelihood in
C. 1907
India before British rule?
D. 1615
A. Agriculture
46. Who is the governor of RBI at present. B. Handicraft industries
A. Urjit Patel C. Mining
B. Shakti Kant Das D. Trade

53. When was the planning commission set C. A is true but R is false.
up?
D. 1) A is false but R is true.

A. 1949
58. The economic policies pursued by the colo-
B. 1950
nial government in India were concerned
C. 1951 more with the protection and promotion of
D. 1850 the economic interests of India.
A. True
54. In which of the following sectors is manu-
facturing activity included? B. False
A. Primary
59. What was the percentage of people living
B. Tertiary in village and deriving their livelihood from
C. Secondary agriculture during British period in India?
D. All of these A. 72%

B. 88%
55. India’s jute industry suffered heavily due
to after partition. C. 79%
A. Lack of Raw Material D. 25%
B. Famines
60. On the eve of independence Indian econ-
C. Earthquakes omy was considered as
D. None of these A. Developed economy
56. Which of the following organisation looks B. Developing economy
after the credit needs of agriculture and ru- C. Underdeveloped
ral development in India.
D. All the above
A. FCI
B. IDBI 61. When was New Economic Policy intro-
duced in India
C. NABARD
A. 1991
D. ICAR
B. 1981
57. Read the following statement-Assertion
(A) and Reason (R). Choose one of the C. 1995
correct alternatives given below Asser- D. 2000
tion:Some efforts were made by the Colo-
nial Regime to improve infrastructure facil- 62. The rate of growth of per capita output
ities in India.Reason:The real objective of per year in India during the first half of
the British was to subserve various Colo- the twentieth century was:
nial interests.
A. 0.8
A. Both A and R are true but R is the cor-
B. 1.5
C. 0.5
B. Both A and R are true but R is not cor-
rect explanation of A. D. 2.3

63. At the time of independence, bulk of work- C. Capitalist

force was engaged in: D. None of the above
A. Agriculture
69. Capitalist Economy is controlled and oper-
B. Industry ated by
C. Service A. Private sector
D. None of these B. Public sector
64. Which year is known as great division year C. Both A and B
NARAYAN CHANGDER
in the history of demography or population D. None of the above
growth of India
70. Occupational Structure refers to:
A. 1881
A. Nature of workforce
B. 1911
B. Size of workforce
C. 1921
C. Number of people living in a country
D. 1991
D. Distribution of workforce among dif-
65. In how many sectors is the occupational ferent occupations.
structure of India is divided?
71. which of the following industry was not
A. One reserved for the government in industrial
B. Two policy resolution 1956?
C. Three A. Iron and steel
D. none of above B. Transport
C. Atomic energy
66. is the year of divide between the first
and the second stage of demographic tran- D. Railways transport
sition. 72. The main reason for decline in handicraft
A. 1881 industry during the colonial rule was:
B. 1891 A. Lack of raw materials
C. 1911 B. Lack of Skilled workers
D. 1921 C. Discriminatory tariff policy
67. When was TISCO incorporated?
A. 1909 73. Assertion (A):By introducing Indian rail-
ways, British government dug its own
B. 1908 grave in India.Reason (R):Indian railways
C. 1907 allowed Indians to get help from foreign
D. 1906 countries.
68. economy is the economy in which true and Reason (R) is the correct expla-
means of production are owned, controlled nation of Assertion (A).
and operated by the government.
B. Both Assertion (A) and Reason (R) are
A. Mixed true but Reason (R) is not the correct ex-
B. Socialist planation of Assertion (A)

C. Assertion (A) is true but Reason (R) is 79. Opening of Suez Canal was in the year
false. A. 1850

D. Assertion (A) is false but Reason (R) is B. 1969
true.
C. 1869
74. What was the impact of colonial policies D. 1853
on the Indian economy?
80. What was the role of the public sector in
A. Increased national income industrial development in India?
B. Promotion of Indian industries A. Providing capital for private en-
C. Transformation into a supplier of raw trepreneurs
materials B. Promoting foreign investment
D. Development of infrastructure C. Controlling all industries
75. Which was the most important infrastruc- D. Undertaking capital investment
ture developed during the British rule? through public sector undertakings
A. Railways 81. Who made the first attempt to estimate

India’s national income?
B. Air transport
A. Dadabhai Naroji
C. Water transport
B. William Digby
D. Roadways.
C. V.K.R.V.Rao
76. Pick the correct event for the given D. R.C Desai
year:1850
82. Who among the following took attempts
A. Suez Canal
to calculate national income of India on the
B. TISCO eve of independence?
C. Year of great divide A. Dadabhai Naoroji
D. Railways B. VKRV Rao
C. Findlay Shirras
77. Name the Finance Minister of India
D. All of the above
A. Arun Jetly
B. Nirmala Sitaraman 83. Read the following statement-Assertion
(A) and Reason (R). Choose one of the
C. Urjit Patel correct alternatives given below Asser-
D. P.Chidambaram tion:Some efforts were made by the Colo-
nial Regime to improve infrastructure facil-
78. During the time of Indian independence ities in India.Reason:The real objective of
what was the literacy rate? the British was to subserve various Colo-
nial interests.
A. less than 15%
A. Both A and R are true but R is the cor-
B. less than 16%
C. less than 18% B. Both A and R are true but R is not cor-
D. less than 12% rect explanation of A.

C. A is true but R is false. B. India and Sri lanka

D. A is false bu C. India and Britain
84. In which year was the first official census D. India and Pakistan
conducted?
90. What is another name for the service sec-
A. 1881 tor?
B. 1882 A. Primary sector
NARAYAN CHANGDER
C. 1883 B. Tertiary sector
D. 1884 C. Secondary sector
85. The first official census of India occurred in D. none of above
the year
91. What was the life expectancy at birth in
A. 1921 India on the eve of Independence?
B. 1821 A. 44 years
C. 1881 B. 50 years
D. 1871 C. 60 years
86. On the eve of independence, only heavy D. all of above
and basic industries were developed in the
Indian economy. 92. On the eve of independence Indian econ-
omy was a:
A. True
A. Feudal economy
B. False
B. Semi feudal economy
87. On the eve of independence, the propor- C. Mixed economy
tion of population was engaged in indus-
trial sector was: D. Both b and c
A. approx. 10% 93. Which industry received the major set back
B. approx. 20% during the the colonial rule?
C. approx. 15% A. Cement
D. approx. 26% B. Handicraft
C. Paper
88. Suez canal was opened for transport in
D. Iron and steel
A. 1850 94. The secondary sector accounted for only
B. 1853 10.1 percent of the working population on
the eve of independence.
C. 1869
A. True
D. 1901
B. False
89. The opening of the Suez canal served as
a direct route for ships operating between 95. Elements of infrastructural change during
the British rule included:
A. India and America A. Railways

B. Roads B. Backward
C. Post and telegraphs C. Underdeveloped

D. All of these D. All of these
96. At the time of independence India’s import 102. The main reason for stagnation in agricul-
included: ture sector during British rule was:
A. Silk clothes
A. Land settlement system
B. Woolen clothes
B. De-industrialisation
C. Cotton clothes
C. Lack of technology
D. All of these
D. Commercialization of agriculture
97. The contribution of the new industrial sec-
tor to the Gross Domestic Product (GDP) 103. Which of the following activities is in-
expanded significantly during British rule. cluded in the primary sector?
A. True A. Agriculture
B. False B. Industries
98. recorded an increase in workforce en- C. Service
gaged in agriculture sector. D. none of above
A. Rajasthan
104. India adopted the economic system.
B. Punjab
C. Kerala A. Capitalist
D. Both a and b B. Mixed

C. Socialist
99. When was cotton mill industry started in
India D. None of the above
A. 1947
105. Assertion (A):During the colonial rule,
B. 1854 the British built roads to create good in-
C. 1881 frastructure in the countryReason (R):The
main motive of building of roads by the
D. none of above British in India was to mobilise the army
100. Back ward economy is the one which A. Both Assertion (A) and Reason (R) are
shows: true, and Reason (R) is the correct expla-
A. high growth in income. nation of Assertion (A).
B. low level of productivity. B. Both Assertion (A) and Reason (R) are
true, and Reason (R) is not the correct ex-
C. slow growth in income.
planation of Assertion (A).
D. both (a) and (b)
C. Assertion (A) is true, but Reason (R) is
101. What was the nature of indian economy false.
on the eve of independence D. Assertion (A) is false, but Reason (R)
A. Stagnant is true.

106. Pick the correct event for the given 112. What was the major drawback of the
year:1932 land revenue system implemented by the
A. Tata Airlines British?
B. First census of India A. Excessive taxation on farmers
C. Battle of Plassey B. Lack of land ownership for farmers
D. TISCO C. Lack of irrigation facilities

D. Lack of market access for farmers
NARAYAN CHANGDER
107. Infrastructure refers to
A. Elements of economic change 113. Where was the first iron and steel com-
pany established?
B. Elements of social change
A. Kolkata
C. Both a and b
B. Jamshedpur
D. None of these
C. Patna
108. More than half of India’s foreign trade D. Ranchi
during the British rule was restricted to:
114. Indian handicraft products enjoyed a
A. China
world wide market based on:
B. Britain
A. the reputation of the fine quality of the
C. Korea material used
D. Sri Lanka B. the high standards of the craftsman-
ship
109. When was the Suez Canal built?
C. both of the above
A. 1757
B. 1617
C. 1869 115. When did the first railway line start in
India?
D. 1907
A. 1850
110. Which of the following was the major oc-
B. 1854
cupation on the eve of independence?
A. Industry 116. Where was the first iron and steel com-
pany established?
B. Services
A. Kolkata
C. Agriculture
B. Patna
D. None of above
C. Jamshedpur
111. On the eve of independence, only heavy D. Ranchi
and basic industries were developed in the
Indian economy. 117. When was Navratna Policy announced
A. True A. 1992
B. False B. 1991
C. None of these C. 1995
D. none of above D. 1996

118. Which year is known as the”Year of B. Both Assertion (A) and Reason (R) are
Great Divide” true and Reason (R) is not the correct ex-
planation of Assertion (A).

A. 1921
B. 1951 C. Assertion (A) is true but Reason (R) is
false
C. 1981
D. Assertion (A) is false but Reason (R) is
D. 1991 true
119. who made significant estimates about 123. were developed to enhance adminis-
calculating national income I India during trative efficiency.
the British period?
A. Ports
A. Dadabhai naoroji
B. Post and telegraphs
B. Findley Shirras
C. Roads
C. William Digby
D. Railways
D. V K R V Rao
124. The opening of Suez canal served as a di-
120. Which sector of the Indian economy was rect route for ships operating between:
well known for its cotton and silk textiles,
metal and precious stone works? A. India and America
A. Agriculture B. India and Sri Lanka
B. Handicraft industries C. India and Pakistan
C. Mining D. India and Britain
D. Trade 125. What was the life expectancy in India
during British rule?
121. When was modern postal system start in
india A. 65
A. 1937 B. 38
B. 1947 C. 45
C. 1940 D. 32
D. none of above 126. Assertion (A):The two important indus-
tries which were adversely affected by
122. (A):the zamindari system which was im-
partition were Cotton textile and Jute in-
plemented in the then Bengal Presidency
dustry. Reason (R):India faced problem of
comprising parts of India’s present-day
rehabilitation of large number of refugees
eastern states, the profit accruing out
from Pakistan.
of the agriculture sector went to the za-
mindars instead of the cultivators.(R):this A. Both Assertion (A) and Reason (R) are
caused immense misery and social tension true and Reason (R) is the correct expla-
among the landless labourers. nation of Assertion (A)
A. Both Assertion (A) and Reason (R) are B. Both Assertion (A) and Reason (R) are
true and Reason (R) is the correct expla- true and Reason (R) is not the correct ex-
nation of Assertion (A). planation of Assertion

C. Assertion (A) is true but Reason (R) is 132. India was reduced to an importer of pri-
false. mary products.
D. Assertion (A) is false but Reason (R) is A. True
true B. False
127. Indian economy on the eve of Indepen- 133. The foundation of british empire in India
dence was was laid by Battle of Plassey fought in
A. underdeveloped A. 1775
NARAYAN CHANGDER
B. deviloping B. 1857
C. stagnant C. 1756
D. semi feudal D. 1757
128. Which of the following was the major oc- 134. The British rule in India concert with
cupation on the eve of independence? revolution in Britain.
A. Industries A. Green
B. Service B. Milk
C. Agricultural
C. Agriculture
D. Industrial
D. none of above
135. The British government introduced the
129. Per Capital Income = Railways in India in 1853.
National Income
A. Population A. Yes
B. National Income
Population × 100 B. No
Gross Domestic Pr oduct
C. National Income 136. Decline of handicraft industry lead to
National Income × 100

GDP A. Massive unemployment
D.
B. Sale of finished goods
130. In how many sectors is the occupational
structure of India is divide C. Export of finished goods
A. one D. All of these
B. two 137. Per capita income=

C. three A. National income /population
D. four B. National income /population X 100
C. Gross domestic product /national in-
131. Land holdings on the eve of independence come
were:
D. Gross domestic product /national in-
A. Small come X 100
B. Fragmented
138. Intermediaries between the colonial Gov-
C. Both a and b ernment and present work called
D. None of these A. Zamindari

B. Zamindars 144. Which of the following was an exposed

C. Ryotwari item of India on the eve of independence?

D. Mahajans A. Jute
B. Sugar
139. India was under British rule which lasted
for almost centuries. C. Indigo
A. 2 D. All of these
B. 3 145. When did railways start in India?

C. 4 A. 1881
D. 1 B. 1850
140. Before 1921, India was in the first stage 146. What was the nature of the Indian econ-
of demographic transition. omy on the eve of independence?
A. Yes A. Backward
B. No B. Stagnant
141. Which year is described as year of great C. Underdeveloped
divide D. All of the above
A. 1931
147. What was the growth rate of per capita
B. 1921 income in India on the eve of Indepen-
C. 1941 dence?
D. 1911 A. 0.9
B. 0.5
142. Assertion (A):India inherited a well-
developed infrastructure from the C. 1.2
British.Reason (R):Britishers developed D. none of above
roads and introduced railways in India.
148. BMI refers
A. A and R both correct. R is correct ex-
planation of A. A. Bio Metrics Intelligence
B. A and R both correct. R is not the cor- B. Broad Meter Index
rect explanation of A. C. Broad Massive Intelligence
C. A is true but R is false. D. Body Mass Index
149. Most number of people or majority pro-
143. enjoyed a world wide market based portions of population of India was in-
on the reputation of the fine quality of ma- volved in which kind of economic activity
terial. on the eve of independence
A. handicraft industries A. Agriculture
B. capital goods B. Manufacturing
C. zamindari system C. Services
D. none of above D. All of these

150. Mining as a production activity, belongs 156. What is the main characteristic of small
to sector of the economy. scale industries in India?
A. Primary A. Capital intensive
B. Secondary B. Employment friendly
C. Tertiary C. Focused on export market
D. None of these. D. Owned by multinational corporations
157. Tick the notable estimators who made at-
NARAYAN CHANGDER
151. Indian economic was a economic on
the eve of independence. tempts to estimate India’s National and
A. Backward Per capita Income during the Colonial Pe-
riod.
B. Stagnant
A. Naoroji
C. Mixed
B. Digby
D. All of these
C. Shirras
152. what is the great division year D. Rao
A. 1917 E. Desai
B. 1921
158. Per capita income refers to:
C. 1947
A. Income per head of total population in
D. none of above the country
153. WHICH TYPE OF CROP DID BRITISH ASK B. Income per head of total labour force
FARMER TO GROW? in the country
A. COMMERCIAL C. Income per head of total work force in
the country
B. SELF CONSUMPTION
D. None of these
C. SUBSISTENCE
D. ALL OF THE ABOVE 159. Which is regarded as the defining year to
mark the demographic transition from its
154. Which of the following activities is in- first to second decisive stage?
cluded in the primary sector?
A. 1922
A. Agriculture
B. 1925
B. Services C. 1926
C. Industries D. 1921
D. all of these
160. is regarded as the ‘year of great di-
155. The nature of Indian economy before the vide’ in the history of demographic transi-
advent of the British rule was: tion of India
A. dependent A. 1911
B. independent B. 1921
C. developing C. 1931
D. mixed D. 1951

161. India’s economy under the British rule re- B. To exploit India’s as a potential market
mained fundamentally: for the industry products of Britain

A. agrarian C. Both a and b
B. industrial D. None of these
C. developed 167. Occupational structure refers to the dis-
D. independent tribution of across primary, secondary
and tertiary sector of the economy.
162. British colonial rule positively affected A. Working population
the structure, composition, and volume of
India’s foreign trade. B. Labour force
A. True C. Population
B. False D. None of these

168. In which of the following sectors is man-
163. Mahalanobis Modal was started in
ufacturing activity included?
Five year plan.
A. Primary
A. First
B. Secondary
B. Second
C. Tertiary
C. Tenth
D. none of above
D. Eleventh
169. Which of the following handicraft prod-
164. Which of the following is not a notable es- uct of India enjoyed a world wide market
timator of National and Per capita Income before the advent of the British rule?
during colonial rule?
A. Cotton and Silk textiles
A. Dadabhai Naroji
B. ALL
B. William Digby
C. Metal works
C. Findlay Shirras
D. Precious stone works
D. Alfred Marshall
170. Most studies did find that India’s growth
165. Which of the following was the main fea- of aggregate real output during the first
tures of Indian economy on the eve of in- half of the 20th century was less than:
dependence? A. 2%
A. Semi-feudal economy B. 1%
B. Urbanized economy C. 0.5%
C. Industrial economy D. 3%
D. All of these
171. What is the purpose of subsidies in Indian
166. The motive behind the systematic de- agriculture?
industrialisation during the British rule in A. To increase the profits of large farm-
India was: ers
A. The exploit India’s wealth of raw mate- B. To promote inequality in the farming
rial and primary products sector

C. To provide financial support to small B. 1825

farmers C. 1850
D. To encourage import of agricultural D. 1875
products
178. The aim of developing postal and tele-
172. What is the tax or duty on imports graph was to enhance the efficiency of
called? British administration.
A. Tariff A. True
NARAYAN CHANGDER
B. Quota B. False
C. Export
179. How many industries are reserved for
D. All of these public sector at present
173. Land productivityi refers to: A. 4
A. Storage B. 17
B. Animal husbandry C. 6
C. Building construction D. 3
D. None of these 180. Forestry as a production activity belongs
to sector of economy.
174. Before 1921, India was in the second
stage of demographic transition. A. Primary
A. True B. Secondary
B. False C. Tertiary
D. None of theseNone of these
175. What was the condition of agricultural
sector growth of India on the eve of in- 181. When was bengol famine take place
dependence A. 1943
A. Decreasing B. 1881
B. Stagnant C. 1947
C. Increasing D. none of above
D. None of these
182. Suez canal provides direct trade route be-
176. Were there any positive contributions tween:
made by the British in India? A. European ports and South Asia ports
A. Introduction to railways B. European ports and East Asia ports
B. Commercialization of agriculture C. European ports and East African ports
C. Promoted western culture D. Both a and c
D. All of the above 183. Pick the correct year for the given
177. When were the railways introduced in In- event:TISCO
dia? A. 1908
A. 1769 B. 1907

C. 1909 B. 1947
D. 1906 C. 1869

184. Distribution of working population D. 1757
among different sectors of the economy 189. Read the following statements-Assertion
is called: (A) and Reason (R). Choose one of the
A. occupational structure correct alternatives given below:Assertion
B. output structure (A):The construction of railways led to
huge economic losses to the Indian econ-
C. population structure omy.Reason (R):It enhanced commercial-
D. gender structure. ization of Indian agriculture, which ad-
versely affected the comparative self-
185. Which of the following was the main sufficiency of the village economies in In-
source of livelihood before the advent of dia.
the British rule?
A. handicrafts true and Reason (R) is the correct expla-
B. service sector nation of Assertion (A)
C. agriculture B. Both Assertion (A) and Reason (R) are
D. manufacturing true and Reason (R) is not the correct ex-
planation of Assertion (A)
186. Which of the following is a cash crop? C. Assertion (A) is true but Reason (R) is
A. Rice false.
B. Wheat D. Assertion (A) is false but Reason (R) is
C. Cotton true.
D. None of the above 190. What was the reason of decay of Indian
handicrafts in the colonial period
187. What is GDP
A. Competition from man-made machines
A. Value of all final goods and services
produced within the national territory of B. New pattern of demand
the country over one year period C. British tariff policy
B. Value of all final goods and services D. all of these
produced within the domestic territory of
the country over one year period 191. When was railways introduced in India?
C. Value of all final goods and services A. 1856
produced within the domestic territory of B. 1850
the country over ten year period
C. 1851
D. Value of all intermediate goods and
services produced within the domestic ter- D. 1848
ritory of the country over one year period 192. Whose estimates during the Colonial Pe-
188. When did the British lay their foundation riod were considered very significant?
in India through the Battle of Plassey? A. VKRV Rao
A. 1617 B. Desai

1.17 Manufacturing industries 354
C. Shirras B. No
D. MK Gandhi 196. When was telegraph introduce in india
193. Distribution of working profit among dif- A. 1853
ferent sector of the economy is called B. 1850
A. Occupational structure
C. 1840
B. Output structure
D. none of above
C. Population structure
NARAYAN CHANGDER
197. Life expectancy refers
D. Gender structure
A. Average longevity of life in a country
194. Subsistence farming is a form of farming
B. Average birth rate of country in a year
A. In which crops are produced for sale
C. Average death rate of a country in a
in the market
year
B. In which crops are produced to pro-
D. None of these
vide for the basic needs of the family
C. In which there is a lack of commercial 198. When was the first basic census con-
Outlook ducted?
D. Both B and C A. 1881
195. Tata Airlines, a division of Tata and Sons B. 1921

was established in 1932. C. 1617
A. Yes D. 1618
1.17 Manufacturing industries

1. is converted into finished products by D. none of above
different kinds of industries.
4. Full form of STPI
A. Finery
A. Statue of Transport Plant Industry
B. Raw Material
B. Software Technology Parks of India
C. oilery Material
C. Signature To Park of India
D. none of above
D. Software Technology Parks in India
2. Japan is the largest Ship Builder
5. Why manufacturing industries are instru-
A. True mental to trade and commerce?
B. false A. Manufacturing industries provide op-
portunities of trading the finished goods
3. The process of extracting rocks from un-
all over the world.
derground is known as
B. The provide tools such as vehicles, ma-
A. Manufacturing chinery for easy trading.
B. Mining C. Manufacturing industries provide
C. Quarrying ways to easy financial transactions.

D. All of these C. Maharashtra
6. Mining comes under industry D. Tamil Nadu

A. Primary / extractive 12. Durgapur is situated in
B. Secondary / manufacturing A. Jharkhand
C. tertiary B. Orissa
D. none of above C. Chhattisgarh
7. Which one of the following factors plays D. West Bengal
the most important role in the location of
13. Which of these is not a large industries
an industry in a particular region?
A. Iron
A. Raw Material
B. Steel
B. Market
C. Sports Goods
C. Least production cost
D. Textiles
D. Transportation
14. Bharat electronics limited was set up in
8. Manufacturing industries includes
sector
A. Converting raw material into ready to
A. Public
use goods
B. Private
B. Transporting raw material
C. Cooperative
C. Producing raw material
D. Joint venture
D. Procuring raw material
15. Agriculture and Manufacturing sectors are
9. BEFORE INDEPENDENCE WHERE WERE
supportive to each other. How?
THE INDUSTRIES CONCENTRATED AND
WHY? A. With manufacturing industries there is
rising demand on agricultural products on
A. MOUNTAINS, PROTECTION
the other hand the manufacturing indus-
B. COASTAL AREAS, FOR THE VIEW OF tries are dependent on agricultural prod-
THE BEACH ucts.
C. IN MY HOUSE, I LIKE IT CLOSE BY B. Agriculture provide raw material for
D. COASTAL AREAS, CHEAPER TRANS- industries while manufacturing industries
PORT provide tools needed for agriculture.
10. The Silicon valley is the most important C. Both of these

high technology centre in USA D. None of these
A. True 16. The workers employed in do not fall
B. False into secondary sector category.
11. Map-In which state Jamshedpur is situ- A. breweries

ated? B. textile
A. Karnataka C. banking
B. Jharkhand D. none of above

17. India exports yarn to 23. Which of the following statements regard-
A. Japan ing manufacturing is not true?
B. USA A. a) Manufacturing helps in modernising

agriculture.
C. China
B. (b) Development of manufacturing in-
D. Australia dustries is a preconditi(on for eradication
18. Full Form of BPO of unemployment and poverty.
NARAYAN CHANGDER
A. Business Processes Outsourcing C. (c) Export of manufactured goods ex-
pands trade and commerce and brings in
B. Busness Processing Output much needed foreign exchange.
C. Business Processing Output D. (d) Manufacturing puts the country
D. Busness Processing Output into a debt trap.
19. These are also known as the household in- 24. Mumbai pune belt is the most important
dustries. industrial region for
A. Village industry A. Iron and steel
B. Cottage industry B. Cotton textile
C. Small scale industry C. Cement
D. none of above D. Woolens
20. what ratio are iron ore, coking coal and 25. Our traditional industries suffered a set-
limestone required to make steel? back during the colonial period because
A. 4:2:1 A. they were not allowed production of
B. 4:1:2 clothes
C. 2:4:1 B. Indian cloth was very cheap
D. 2:1:4 C. They could not compete with the mill
made cloth from England
21. What were the previous names of Ben-
galuru D. There were very less textile Industries
in India
A. Silicon Valley Of India, The Cyber City
B. The Garden City, The Market of South 26. Arrange in correct order:1) Processing2)
India Raw materials3) Valuable Goods
C. None of These A. 1, 2, 3
D. All of these B. 2, 1, 3
C. 2, 3, 1
22. Which one of the following industries uses
bauxite as a raw material? D. 3, 2, 1
A. Aluminum 27. Largest producer of jute and jute made
B. Cement goods is
C. Jute A. Bangladesh
D. Steel B. India

C. Sri Lanka 34. The process of converting raw materials

D. Brazil into finished goods that are produced on a
large scale called:

28. Capital is a geographical factor required to
A. Information technology
start up an industry
A. True B. Electronic industry
B. False C. Manufacturing
29. After which century, power-looms came D. Factory

into use.
35. The first cotton mill of India was set up in
A. 12th
A. Ahmedabad
B. 14th
B. Kolkata
C. 7th
C. Mumbai
D. 18th
D. Coimbatore
30. Manufacturing helps in modernizing agri-
culture. 36. Production of a commodity, mostly
A. True through the natural process, is an activ-
B. False ity in sector.
A. Primary
31. Choose the correctly match pair about the
industries in India from the following op- B. Secondary
tions: C. Tertiary
A. Bulky raw material-Jute industry
D. none of above
B. Stiff competition from synthetic
substitute-Sugar industry 37. Countries that transform their raw materi-
C. Highly decentralized-Cotton Industry als into a wide variety of furnished goods
of higher value are prosperous.
D. Seasonal in nature-Iron and Steel In-
dustry A. True
32. Map-Coimbatore is in which state? B. False

A. Karnataka 38. More than 3, 600 fishes are found in the
B. Kerala world.
C. Tamil Nadu A. True
D. Telangana B. False
33. In the early years, the cotton textile indus-
39. The product obtained from the blast fur-
try was concentrated in the cotton grow-
nace is
ing belt of and
A. Maharashtra and Gujarat A. Molten steel
B. Gujarat and Madhya Pradesh B. Pig iron

C. Maharashtra and Tamil Nadu C. Scrap iron
D. none of above D. Coke

40. Where was the first successful textile mill 46. Where are most of the jute mills located in
established in India? India?
A. Mumbai A. Bihar
B. Kolkata B. West Bengal
C. Kanpur C. Assam
D. Gujarat D. Meghalaya
NARAYAN CHANGDER
41. Petrochemicals are important chemi- 47. The location of industry depends on
cals derived from petroleum products. A. Availability of resources
A. Exterior B. Industry-Market linkage
B. Inert C. Both of these
C. Inorganic D. None of these
D. Organic
48. What steps have been taken by NTPC to-
42. Identify the main problems faced by the wards environment protection?
textile industry. A. Adopting latest technique
A. Erratic power supply B. Minimising waste management by
B. Old and obsolete machinery maximising ash utilisation
C. Stiff competition from the synthetic fi- C. Afforestation and green belt
bre industry D. All of these
D. All of these 49. The sectors are classified into public and
private sectors on the basis of
43. India has world class production in spin-
ning, but weaving supplies low quality of A. Employment conditions
fabric as it cannot use much of the high B. The nature of economic activities.
quality yarn produced in the country.
C. Ownership of enterprise
A. True
B. False terprise
44. Cotton is a natural fibre obtained from a 50. Which city is the electronic capital of India?
plant
A. Delhi
A. True
B. Mumbai
B. False
C. Bangalore
45. Which one of the following cities is known D. none of above
as electronic capital of India?
51. Diyas made by artisans at a small scale is
A. Srinagar
B. Noida A. a part of the manufacturing industries
C. Bengaluru B. is not a part of the manufacturing in-
D. Pune dustries

52. Which city is called the ‘Manchester of In- 58. Banking is an example of industry
dia’ A. Primary / Extractive

A. Kanpur B. Secondary / Manufacturing
B. Ahmedabad C. Tertiary
C. Bengaluru D. none of above
D. All of the above 59. Where was the First Jute Mill set up in In-
dia?
53. Iron and steel industry is known as back-
bone of the industrial economy. A. Madras
B. Bombay
A. True
C. Calcutta
B. False
D. Delhi
54. Oil India Limited (OIL) belongs to which
60. Map-In which state Vijaynagar is situ-
type of industry?
ated?
A. Joint sector
A. Karnataka
B. Public sector B. West Bengal
C. Cooperative C. Tamil Nadu
D. Private sector D. Kerala
55. Agriculture and industry are not of 61. Why is there a tendency for Sugar mills to
each other. concentrate in the southern and western
states of India?
A. exclusive
A. Higher sucrose content and yield
B. inclusive greater quantity
56. Which of the following industries have B. Cooler climate
been a major foreign exchange earner for C. Cooperative are more successful in
India in the last few years? these reason
A. Information Technology D. All of these
B. Automobile Industry 62. Which are the two prime factors for the
C. Shipbuilding Industry location of aluminium industry?
D. Cotton textile industry A. Market and labour

B. Transport network and water supply
57. Most of India’s jute mills are located on
C. Cheap and regular supply of electricity
the banks of
and bauxite
A. Hugli D. None of the above
B. Alakhnanda
63. Which Industry Produce goods for con-
C. Yamuna sumption such as sugar, paper, cloth etc.
D. Son A. Basic Industries

B. Capital Goods Industries 69. Iron and Steel Industry comes under
C. Intermediate Goods Industries A. Mineral based industry
D. Consumer Goods Industries B. Heavy Industry
C. Basic Industry
64. Map-In which state Pune is located?
D. All of these
A. Uttar Pradesh
70. In 1857 where the first cotton mill of India
B. Karnataka founded
NARAYAN CHANGDER
C. Maharashtra A. Mysore
D. Kerala B. Madras
C. Surat
65. In which of the following countries the
world’s major Iron & Steel Industries are D. Bombay
located? 71. Chemical industries usually are located
A. Germany near
B. China A. Iron and steel industries
C. Russia B. Thermal power plant
D. All of the above C. Oil refineries
D. Auto mobile industry
66. Map-In which state Mumbai is located?
72. There are less than 70 miles in Ahmedabad
A. Gujarat
A. True
B. Maharashtra
B. False
C. Andhra Pradesh
73. Market is one of the factors for setting
D. Goa up of industries.
67. Concentration of cotton textile industries A. locational
in Mumbai pune region is due to B. sizeable
A. Cotton production in nearby areas C. natural systematic
B. Mumbai port D. none of above
C. Humid climate 74. The Bhopal Gas Disaster occurred in
D. All of the above A. 1980
B. 2003
68. Which one of the following is not true re-
garding the National Jute Policy of 2005? C. 1984
D. 1990
A. Creating awareness about the use of
biodegradable materials 75. Map-In which state Noida is located?
B. Ensuring good prices to the jute farm- A. Delhi
ers B. Punjab
C. Increasing productivity C. Uttar Pradesh
D. Improving quality of jute D. Andhra Pradesh

76. Which one of the following agencies, mar- 81. Which of the following industries is not a
kets steel for the public sector plants? heavy industry.

A. GAIL A. Cotton textile
B. SAIL B. Cement
C. TATA STEEL C. Iron and Steel
D. MNCC D. Ship building
77. Which of the following statements regard-
82. Which of the following industries has been
ing manufacturing is not true?
a major foreign exchange earner in the last
A. Manufacturing helps in modernising few years?
agriculture.
A. Electronics Industry
B. Development of manufacturing indus-
B. Information Technology Industry
tries is a precondition for eradication of
unemployment and poverty. C. Engineering Industry
C. Export of manufactured goods ex- D. Tourism Industry
pands trade and commerce and brings in
much needed foreign exchange. 83. Which one of the following groups of fac-
D. Manufacturing puts the country into a tors is a prime group for the location of
debt trap. aluminum smelting plant?
A. Capital and market
78. Which country is the major importer of In-
dian yarn? B. Raw material and Electricity
A. Indonesia C. Labour and Raw material
B. Japan D. Capital and Transport
C. Bhutan
84. Cotton textile industry provide employ-
D. Spain ment to the nearly percent of the
labour force in india.
79. Which industry comprises both large and
small scale manufacturing units. A. 30
A. Cement Industry B. 35
B. Fertiliser Industry C. 40
C. Chemical Industry D. 50
D. Iron and Steel Industry
85. NMCC is abbreviated for:-
80. Which two states are more famous for A. The National Manufacturing Competi-
their cotton textile industry? tiveness Council.
A. Jammu & Kashmir and Punjab B. Nation Manufacture Competitive Can-
B. Maharashtra and Gujarat cel
C. Kerala and Tamil Nadu. C. The Notion Mock Captive Counsil
D. Assam and West Bengal D. No Matters Can Change

86. Map-In which state Bengaluru is located? D. None of these

A. Tamil Nadu 92. Which is not a factor of industrial location?
B. Kerala A. Market
C. Telangana B. Capital
D. Karnataka C. Population density
87. Mumbai is known as cottonopolis of India. D. Power
NARAYAN CHANGDER
A. True 93. Classification of industry based on source
B. false of raw material:
A. Agro Based
88. The Software Technology Parks are set up
by the government to provide B. Mineral based
A. Skilled software professionals C. Both Agro and mineral based
B. Capital to start a software company D. None of these
C. Single window service and high-speed 94. Which one of the following industries man-
data communication facility to software ufactures telephones, computers, etc.?
experts
A. Steel
B. Electronic
89. India has only 3 main shipbuilding centers C. Aluminium
A. True D. Information Technology
B. False
95. The requirement of large number of people
90. Weaving is highly decentralized in India. or workers.
Identify the correct statement related to A. self sufficient
the given statement from the following op-
B. Labour-intensive
tion.
C. Transport
A. It supports other industries like chem-
icals and dyes, packaging materials and D. none of above
engineering works
96. Cycle manufacturing is a scale indus-
B. It provides scope for incorporating tra- try.
ditional skills and designs of weaving
A. Large
C. Weaving units can not much of the B. Medium
highlights quality yarn
C. Small
D. Most of the production units are frag-
mented and small D. none of above
91. Which one of the following is not way to 97. Rourkela steel plant is in sector
prevent industrial pollution A. Public
A. Use clean Energy B. Private
B. Stop Polluting Water C. Joint
C. Plant trees D. Cooperative

98. To which sector does the textile industry 104. Which one of is not an example of Public
belong to? Sector

A. Agro-based A. Airtel
B. Mineral based B. Hindustan Aeronautical limited
C. Chemical based C. Bhilai Iron & Steel Plant
D. None of these D. Indian Oil Corporation
99. Which one of the following public sector 105. In which year National Jute Policy was
plants is located in Odisha? formulated?
A. Bokaro Steel Plant A. 2006
B. Bhilai Steel Plant B. 2005
C. Durgapur Steel Plant C. 2004
D. Rourkela Steel Plant D. 2003
100. Iron and Steel is a 106. The processing of raw material into more
A. an agro based industry valuable products falls under the category
B. a chemical industry of
C. basic industry A. Primary Industry
D. tertiary industry B. Secondary Industry
C. Tertiary Industry
101. The first cement plant was set up in India
in 1904 in D. None of these
A. Jamshedpur 107. The factors that contributed towards the
B. Hyderabad localization of cotton textile industry in
C. Nagpur the cotton growing belt of Maharashtra
and Gujarat were
D. Chennai
A. High demand of the cotton clothes
102. What does an industrial system consist B. Availability of high quantity cotton in
of? these areas
A. Inputs C. Availability of raw cotton, market,
B. Processes transport including accessible port facili-
C. Output ties, labour, moist climate
D. Marketing D. Power looms came to be used
103. The industry which is managed and 108. How does the development and compet-
owned by the government is known as itiveness of manufacturing industries help
the primary sector? Selcet the odd one.
A. Public sector A. increase in production
B. Private sector B. made the production process efficient
C. Joint sector C. decrease in cost of production
D. Cooperative sector D. faster delivery to the markets possible

109. Which of the following factors plays the C. to provide large scale employment
most important role in the location of an D. none of above
industry in a particular region?
A. Less production cost 115. Vegetable oil falls in the following cate-
gory:
B. Transport
A. Agro-Based industry
C. Raw material
B. Mineral Based industry
D. Market
NARAYAN CHANGDER
116. Map-In which state Bokaro is situated?
110. Which is the largest producer of sugar?
A. West Bengal
A. Maharastra
B. Uttar Pradesh B. Karnataka
C. Punjab C. Tamil Nadu
D. Tamil Nadu D. Jharkhand
111. Which of the following is an electronics 117. The objective of setting up NMCC is
industry? A. reducing industrial pollution
A. HMT, Bengaluru B. to improve productivity
B. TISCO, Jamshedpur C. to maintain diplomatic relations in or-
C. BHEL, Hyderabad der to increase exports
D. BALCO, Korba D. none of above
112. Where was the first cotton textile mill 118. Map-In which state Chennai is located?
was set up in India. A. Uttar Pradesh
A. Mumbai B. Karnataka
B. Ahmadabad C. Telangana
C. Bengaluru D. Tamil Nadu
D. None of these
119. Most important benefit of Vishakhapat-
113. Many industries tend to come together to nam steel plant is its location at
make use of the advantages offered by the A. Near iron ore producing area
urban centres known as
B. port city
A. Central Business District
C. Coal producing area
B. Industrial hub
D. none of above
C. Agglomeration economies
D. Manufacturing units 120. Which of the following does not affect
the location of industries?
114. Why did Mahatma Gandhi lay emphasis
A. Land
on spinning yarn and weaving khadi?
A. It is in line with the ideals of self help B. Entrepreneur
B. to stop the exploitation of industrial C. Infrastructure

workers D. None of the above

121. Which of the following factors are not 126. Climate doesn’t affect the location of Tex-
necessary to set up an iron and steel tile industries
plant?

A. True
A. Proximity to iron-ore mines
B. False
B. Availability of coking coal
C. Good resources of limestone and man- 127. Rourkela steel plant is built with the co-
ganese operation of company
D. Nearness to a water body to discharge A. USSR
wastes
B. Chinese firm
122. A small scale industry is defined with
C. Japanese firm
reference to the maximum investment al-
lowed on the assets of a unit. This limit D. German firm
has changed over a period of time. At
present the maximum investment allowed 128. Map-In which state Hyderabad is lo-
is rupees cated?
A. one crore A. Tamil Nadu
B. two crore B. Telangana
C. four crore C. Karnataka
D. none of above
D. Kerala
123. Which one of the following factors plays
the most important role in the location of 129. INDUSTRIALIZATION BRINGS URBAN-
an industry in a particular region? [Delhi IZATION
2012] A. TRUE
A. Raw material
B. FALSE
B. Market
C. Least production cost 130. Many industries tend to come together to
make use of the advantages offered by the
D. Transport
urban centres. This is known as
124. 11has higher per hectare yield of sug- A. Agglomeration economics
arcane
B. Coming together
A. Maharashtra
C. Holding together
B. Uttar Pradesh
C. Punjab D. Joint sector if economics
D. Tamil Nadu 131. Map-Indore is in which state?
125. The IT industry involves the processing, A. Karnataka
storing and transferring of information in
a digital format using computer. B. Uttar Pradesh
A. True C. Tamil Nadu
B. False D. Madhya Pradesh

132. An industry that builds small products 138. Where did the first Cement plant estab-
such as electronics and furniture is called lish in India?
A. Chennai
A. Manufacturing
B. West Bengal
B. Light
C. Delhi
C. Service
D. none of above
D. Heavy
NARAYAN CHANGDER
139. . Which of the following is not a private
133. Steel pipes are replaced by sector industry?
A. Synthetic pipes A. Dabur Industries
B. CSC pipes
B. Bajaj Auto Ltd.
C. PVC pipes
C. SAIL
D. Poly pipes
D. TISCO
134. Which country is the largest producer of
raw jute? 140. which are the examples of small scale in-
dustry?
A. India
A. pickle, sports goods
B. China
B. radio, jams
C. Banglades
C. radio, sports goods
D. none of above
D. jams, pickle
135. ITI was the first government undertaking
to be set up after independence near in 141. Who is the World’s Largest Ship Builder
A. China
A. Hydrabad in 1950
B. South Korea
B. Mumbai in 1960
C. Japan
C. Bangaluru in 1960
D. None of these
D. Banguluru in 1950
142. In which year the first successful textile
136. is the leading producer for sugar in mill was established in Mumbai?
India.
A. 1854
A. Punjab
B. 1864
B. Uttar Pradesh
C. Maharashtra C. 1990
D. Tamilnadu D. none of above
137. Manufacturing industries includes 143. The Oldest Industry Of India is

A. Crop production A. Textile Industry
B. Fish production B. Sugar Industry
C. Plantation C. Iron and steel Industry
D. Sugar Production D. none of above

144. is a steel city in USA. 150. In the early years, the cotton textile
A. New York City industry was concentrated in the cotton
growing belt of Maharashtra and

B. Detroit
A. West Bengal
C. Pittsburg
B. Gujarat
D. Ohio
C. Madhya Pradesh
145. Map-Where is Durgapur located? D. Karnataka
A. Jharkhand
151. STP is the Abbreviation of
B. Chhattisgarh
A. system tech park
C. West Bengal
B. softwer technology park
D. Karnataka C. state thermal plant
146. Where was the First Cement Plant dey up D. softwer technology picket
in India?
152. is the by product of sugarcane which
A. Madras is used for making cardboard.
B. Bombay A. Jaggery
C. Calcutta B. Molasses
D. Delhi C. Bagasse
147. Which one of the following agencies mar- D. Press mud
kets steel for the public sector plants?
153. ON THE BASIS OF CAPITAL INDUSTRIES
A. Honeywell Automation India Limited ARE DIVIDED INTO:
B. Malaysian National Computer Confed- A. SMALL SCALE
eration. B. LIGHT
C. Steel Authority of India Limited C. RICH INDUSTRIES
D. TATA Steel D. LARGE SCALE
148. Which of the following industries are set 154. is the home for jute textile
up by individuals at home
A. Ahmedabad Vadodara region
A. Small Scale Industries
B. Mumbai pune belt
B. Cottage Industries
C. Chhota nagpur region
C. Large Scale Industries
D. Hooghly belt
D. none of above
155. After which event in India, there was a
149. Which out of the following industries great demand for the vehicles in the mar-
uses bauxite as a raw material? ket go high?
A. Iron and steel A. Liberalisation
B. Cement B. Privatisation
C. Aluminum Smelting C. Globalisation
D. Fertilizers D. Special Economic Zones(SEZs)

156. India is the largest producer of sugarcane C. Jaipur

but not sugar due to
D. none of above
A. Less demand
B. Use of sugarcane in other products 162. Which out of the following is a mineral
based industry?
C. Government doesn’t take initiative
A. Sugar
D. Poor quality of sugarcane in Maharash-
tra B. Tea
NARAYAN CHANGDER
C. Petrochemicals
157. Bhadravati is an important steel centre
located at D. Coffee
A. Jharkhand
163. Most of the integrated steel plants in In-
B. Karnataka dia are located in
C. Odisha A. Malwa Plateau
D. Bihar B. Bundelkhand Plateau
158. Which one of the following countries has C. Meghalaya Plateau
the largest installed capacity of spindles in D. Chotanagpur Plateau
the world?
A. India 164. Find the incorrect option:
B. China A. Thermal pollution affects aquatic life.
C. USA B. Manufacturing sector is considered
D. Britain the backbone of economic development.
C. Items like diyas are made in big facto-
159. is the oldest industry in india. ries.
A. Cottin textile
D. Yarn is an industrial product.
B. Jute textile
C. Iron and steel 165. TISCO was established by Jamshedji Tata
in
D. Cinema
A. 1901
160. Map-In which state Gandhinagar is lo- B. 1904
cated?
C. 1907
A. Maharashtra
D. 1910
B. Rajasthan
C. Delhi 166. The key to decision of the factory location
D. Gujarat is
A. availability of power
161. choose one correct option where the iron
and steel industry located B. availability of finance
A. Durgapur C. the least cost
B. Lucknow D. market

167. Which one of the following factors plays C. Gujarat

the most important role in the location of D. Maharashtra

A. Raw material 173. Map-In which state Salem is located?
B. Market A. Chhattisgarh
C. Least production cost B. Karnataka
D. Transport C. Tamil Nadu

D. Jharkhand
168. Which one of the following agencies mar-
kets steel for the public sector plants? 174. The blast furnace is usedin the process of
A. HAIL
B. SAIL A. Mixing of raw material
C. Tata Steel B. Steel melting
D. MNCC C. Ore reduction

D. Rolling sheets
169. Which is an example of Pure Raw Mate-
rial? 175. Tendency of the sugar industry to migrate
towards south is due to
A. Iron ore
A. High demand
B. Bauxite
B. Favourable maritime climate
C. Cotton
C. Cooperative sectors in punjab
D. Crude oil
D. Red soil of south India
170. Which one is not a feature of New Indus-
trial Policy, 1991? 176. The electronic industry is developed in In-
dia in
A. Abolition of industrial licensing
A. 1950
B. Foreign investment policy
B. 1960
C. Free entry to foreign technology
C. 1940
D. Maximum interference from govern-
ment D. 1970
171. Which of these is not a product of a cot- 177. The minister of Iron and steel industry is
tage industry? Mrs. Smriti Irani
A. Lapad A. True
B. Pickles B. False
C. Hosiery 178. Air pollution is caused by
D. Candles A. Organic and inorganic industrial efflu-
ents discharged into rivers.
172. Map-Surat is in which state?
B. Presence of high proportion of sulphur
A. Jammu and Kashmir dioxide, carbon monoxide and air-borne
B. Delhi particulate materials.

C. Unwanted sounds from industries, B. Tertiary activities

generators, saws and pneumatic and elec- C. Primary activities
tric drills.
D. Overdrawing of groundwater.
184. Why do industrial accidents happen?
179. Which of the following does not affect
A. Due to technical failure
the location of industries?
B. Due to irresponsible handling of mate-
A. Per capita income
rials
NARAYAN CHANGDER
B. Energy C. Due to negligence
C. Raw material D. None of the above
D. Labour
185. The most important factor for the loca-
180. Which of the following is not an aspect tion of any industry is
of the definition of manufacturing? A. Energy
A. done in large quantities B. Market
B. raw materials come from the farms C. Raw material
C. value is added D. Credit
D. none of above 186. In which of the following countries tex-
181. Identify the objective behind the formula- tile industry is concentrated?
tion of National Jute Policy, 2005. A. India
A. Increasing productivity B. Hong Kong
B. Improving quality and ensuring good C. Japan
prices D. All of the above
C. Enhance the yield per hectare
187. With what aim were industries estab-
D. All the above lished in the tribal and backward areas?
182. All of the following explain why Manu- A. To earn huge foreign exchange
facturing is the backbone of development, B. To bring down regional disparities be-
except tween the developed regions and back-
A. REDUCES DEPENDENCE ONLY ON ward areas
AGRO-SECTOR C. To indiscriminately exploit the natural
B. EXPORT INCREASES FOREIGN EX- resources of the tribal and backward ar-
CHANGE eas
D. To develop the secondary sector
C. ERADICATES POVERTY
D. INDUSTRIES HELP IN POLLUTING 188. What of a country is measured by the de-
OUR ENVIRONMENT velopment of manufacturing industries.
A. Economic Delevopment
183. The processing of raw material into more
valuable products falls under the category B. Economic Activity
of C. Economic Strength
A. Secondary activities D. All of the Above

189. Which industry had experienced a quan- 195. Which one of the following factors plays
tum jump in less than 15 years. the most important role in the location of

A. Automobile
B. IT A. Raw material
C. Fertiliser B. Market
D. Chemical C. Least production cost
190. Which one of the following cites has D. Transport

emerged as a ‘ electronic capital of India’?
196. The trend of growth rate in manufactur-
A. Delhi ing over the last decade has been around
B. Kolkata per cent per annum.
C. Bengaluru A. 7
D. Hyderabad B. 8
191. Which industry is known as Basic and C. 9
Heavy industry? D. 6
A. Cement
197. Which industry has been a major foreign
B. Automobile exchange earner in the last few years?
C. Iron and Steel
A. Automobile
D. Cotton
B. Textile
192. Which country is the major importer of C. Iron and Steel
Indian yarn?
D. Information Technology
A. Indonesia
B. Bhutan 198. What is the correct meaning of agglomer-
ation economies?
C. Japan
D. Iran A. Many industries set up in rural centres
B. Industries are basically agro-based.
193. Map-In which state Thiruvananthpuram
is located? C. Many industries tend to come together
to make use of the advantages offered by
A. Karnataka
the urban centres
B. Telangana
D. Industries set up produce raw mate-
C. Bengaluru rial for secondary sector.
D. Kerala
199. What does the software technology park
194. Which one of the following industries provide?
uses limestone as a raw material?
A. They provide expert view
A. Aluminum
B. They provide online consumer services
B. Cement around the world
C. Sugar C. They allow access to internet through
D. Jute satellites

D. They provide single window service 205. In which state Jamshedpur Iron and Steel
and high data communication facility to industry situated?
software experts A. West Bengal
200. AGRICULTURE AND INDUSTRIES ARE EX- B. Jharkhand
CLUSIVE OF EACH OTHER. C. Odisha
A. FALSE D. Bihar
B. TRUE
206. Which country is the major importer of
NARAYAN CHANGDER
201. Which one of the following public sector Indian yarn?
plants is located in Chhattisgarh? A. Indonesia
A. Bokaro Steel plant B. Bhutan
B. Bhilai steel plant C. Spain
C. Durgapur steel plant D. Japan
D. Rourkela steel plant 207. ON THE BASIS OF OWNERSHIP INDUS-
TRIES ARE CLASSIFIED BASED ON:
202. Map-Where is Bhilai located?
A. PUBLIC SECTOR
A. Jharkhand
B. PRIVATE SECTOR
B. Chhattisgarh
C. SMALL SCALE SECTOR
C. West Bengal
D. JOINT SECTOR
D. Madhya Pradesh E. COOPERATIVE SECTOR
203. What is the importance of manufactur- 208. Iron ore, coking coal and lime stone are
ing? required in the ratio of approximately
A. Industrial Development is necesary A. 3:4:5
for the eradication of Poverty.
B. 4:2:1
B. Doesn’t remove regional division.
C. 7:7:7
C. Agriculture is not affected.
D. 2:2:3
D. Brings much needed foreign exchange.
209. Export of manufactured goods expands
204. WHAT IS AGGLOMERATION??? trade and commerce, and brings in much
needed
A. THE SCIENTIFIC METHOD OF CULTI-
VATION. A. foreign exchange
B. GLOWING OF INDUSTRIES IN THE B. foreign investment
NIGHT
210. When and where was the first successful
C. CREATING CIRCUMSTANCES IN SUCH textile mill established in India?
A WAY THAT IT ISN’T PROFITABLE FOR A. In Ahmedabad in 1858
THE INDUSTRY
B. In Chennai in 1954
D. CREATING CIRCUMSTANCES IN SUCH
A WAY THAT IT IS PROFITABLE FOR THE C. In Kolkata in 1816
INDUSTRY D. In Mumbai in 1854

211. The sugar industry is well suited to the 217. Which of the following industries is not a
heavy industry.
A. Cotton textile

A. cooperative sector
B. Joint Sector B. Cement
C. Private sector C. Ship building
D. Iron and steel
D. Public sector
218. Which one of the following industries
212. is the world’s most important natural manufactures telephones, computers etc.
fibre.
A. Cement
A. cotton
B. Iron and steel
B. jute C. Electronic
C. silk D. Chemical
D. woolen
219. Which is the top most fish producing coun-
213. Which one of the industry referred as Ba- try
sic Industry? A. USA
A. Agro industry B. Peru
B. Chemical industry C. India
C. Iron & Steel industry D. China
D. Fertilizer industry 220. Which of the following group of factors is

a prime group for the location of aluminium
214. The Dabur industry is a public sector in- smelting plant?
dustry. (True/False) A. Capital and Market
A. True B. Raw material and Electricity
B. False C. Labour and Raw material
D. Capital and Transport
215. By what name is Ahmedabad is called as
A. The Cyber City 221. Which of the following is a negative ef-
fect of industrialisation?
B. The Garden City
A. Economic growth
C. The Silicon Valley of India
B. Pollution
D. None of these C. Foreign exchange earnings
216. Industry that requires a lot of machines D. Rapid urbanisation
and equipment to produce a product is
222. Agro based industries takes their raw
called what?
material from
A. Manufacturing A. Agricultural produce
B. Heavy B. Cement industry
C. Service C. Coal fields
D. Light D. Rivers

223. Credit facilies are considered as 229. Which one of the following does not in-
A. Geographical factors fluence industrial location?
B. Commercial factors A. Raw material

C. Basic factors B. Capital and power
D. Manmade factors C. Market and labour
D. Underground railway line
224. In which sector are the manufacturing in-
NARAYAN CHANGDER
dustries placed? 230. WHAT IS THE FULL FORM OF ‘GDP’?
A. Primary A. GRAND DEVELOPMENT PROJECT
B. Secondary
B. GROSS DEVELOPMENT PROJECT
C. Tertiary
C. GROSS DOMESTIC PRODUCT
D. None of these
D. GROSS DAILY PRODUCT
225. In what ratio are iron ore, cooking coal
and limestone are required to make Iron 231. Why is steel called as the backbone of
and steel? modern industries?
A. 4:2:1 A. Steel is cheaper.
B. 4:1:2 B. Steel is available everywhere in the

world.
C. 4:3:1
C. Everything we use is related with
D. 4:3:2
steel.
226. Where was the first successful textile D. None of these
mill established in India?
A. Bengal 232. Japan is dependent upon the imported
raw materials for spinning mills.
B. Bengaluru
A. True
C. Mumbai
B. False
D. Ahmedabad
233. port in Goa handles about fifty per-
227. Golden fiber is
cent of India’s iron ore export.
A. Silk
A. Visakhapatnam
B. Silk
B. Kandla
C. Cotton
C. Marmagao
D. Jute
D. Kochi
228. Which is the second most important met-
allurgical industry in India? 234. SAIL means
A. Iron and Steel A. Steel & aluminium India ltd.
B. Aluminum Smelting B. Steel alloy of india limited
C. Fertilizer indusrty C. Steel armour of India limited
D. none of above D. Steel Authority of India ltd.

235. Silicon Valley is the nickname of an area 237. Which is the second most important met-
in northern California allurgical industry in India.

A. True A. Miniral Based Industries
B. Iron and Steel Industry
B. false
C. Cement Industry
236. India has the largest installed capac- D. Aluminium Smelting
ity of spindles in the world.
238. TISCO is
A. first
A. Joint Sector Industry
B. second
B. Private Sector Industry
C. third C. Co-operative Sector Industry
D. none of above D. Public Sector Industry

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220. MGNREGA was implemented in