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ECONOMICS BASICS OF
ECONOMY:
Q. 1. 'Income and employment theory' is
the other name for which branch of
Economics?
(a) International economics
(b) Public finance
(c) Microeconomics
(d) Macroeconomics
Sol. (d) Microeconomics is a branch of
economics that studies the behavior of
individuals and firms in making decisions
regarding the allocation of scarce resources
and the interactions among these
individuals and firms. Macroeconomics is
the branch of economics that studies the
behavior and performance of an economy
as a whole. It focuses on the aggregate
changes in the economy such as
unemployment, growth rate, gross
domestic product, and inflation.
Q. 2. ______ is defined as the study of
behavior of individual decision-making
units, such as consumers, resource owners
and firms.
(a) Microeconomics
(b) Macroeconomics
(c) Health economics
(d) Econometrics
Sol. (a) Microeconomics is a branch of
economics that studies the behaviour of
individuals and firms in making decisions
regarding the allocation of scarce resources
and the interactions among these
individuals and firms. Macroeconomics is
the branch of economics that studies the
behaviour and performance of an economy
as a whole. It focuses on the aggregate
changes in the economy such as
unemployment, growth rate, gross
domestic product and inflation.
Q. 3. The concepts of wages, rent, interest
and profit are studied under which branch
of Economics?
(a) Macroeconomics
(b) Microeconomics
(c) Econometrics
(d) Health economics
Sol. (b) The concepts of wages, rent,
interest and profit are studied under
Microeconomics.
Q. 4. People like small farmers and seasonal
workers who regularly move in and out of
poverty are categorised as ________.
(a) occasionally poor
(b) churning poor
(c) always poor
(d) usually poor
Sol. (b) Churning poor are those people
who regularly move in or out of poverty.
When they get employed or their harvest is
good they are above the poverty line but
when they are unemployed or in bad
climatic years they are below the poverty
line. Example seasonal workers or small
farmers .
Q. 5. An unexpected rise in sales of a
product leads to ______.
(a) Planned accumulation of inventory
(b) Planned decumulation of inventory
 (c) Unplanned decumulation of inventory
(d) Unplanned accumulation of inventory
Sol. (c) Unplanned accumulation of
inventory refers to the unexpected increase
in the stock of goods due to the fall in sales.
Unplanned decumulation of inventory
refers to the unexpected decrease in the
stock of goods due to the rise in sales.
Q. 6. Which of the following statements is
related to positive economics ?
(a) Inflation is better than deflation.
(b) Inequalities in the distribution of wealth
and incomes should be reduced.
(c) More production of luxury goods is not
good for a less developed country.
(d) An increase in money supply implies a
price rise in an economy.
Sol.(d) An increase in money supply implies
a price rise in an economy is related to
positive economics.
Q. 7. Which branch of economics deals with
the depletion of natural resources stock and
pollution, which are a result of rapid
economic development ?
(a) Environmental Economics
(b) Developmental Economics
(c) International Economics
(d) Public Economics
Sol. (a) Environmental Economics deals with
the depletion of natural resources stock and
pollution, which are a result of rapid
economic development. Development
economics deals with the economic aspects
of the development process in low-income
countries. Public economics is the study of
government policy through the lens of
economic efficiency and equity.
International economics is concerned with
the effects on economic activity from
international differences.
Q. 8. An economy in which both the private
sector and the government are involved is
known as a/an ______. economy.
(a) mixed (b) blended
(c) parallel (d) amalgam
Sol. (a) An economy in which both the
private sector and the government are
involved is known as a mixed economy. An
Indian economy is a mixed form of
economy.
Q. 9. All monetary transfers or kinds sent by
migrants to their place of origin are called
______.
(a) bills (b) drafts
(c) remittances (d) payments
Sol. (c) All monetary transfers or kinds sent
by migrants to their place of origin are
called remittances. In remittance, money
can be transferred from one country to
another country by migrants to their
families and communities.
Q. 10. Which of the following formulas
related to monetary and liquidity
aggregates is NOT correct ?
(a) M4 = M3 + Total deposits with post
office savings organisations (excluding
national savings certificates)
(b) M1 = Currency (notes + coins) +
Demand deposits
(c) M2 = M1 + Savings deposits with post
office savings banks
 (d) M3 = M1 + Net time deposits of post
office savings
Sol. (d) M4 = M3 + total deposits with post
office savings organisations (exclding
national savings certificate); M1 = Currency
(notes + coins) + Demand deposits; M2 =
M1 + Savings deposits with post office
savings banks.
Q. 11. Which of the following formulas
related to monetary and liquidity
aggregates is NOT correct ?
(a) M4 = M3 + Total deposits with post
office savings organisations (excluding
national savings certificates)
(b) M1 = Currency (notes + coins) +
Demand deposits
(c) M2 = M1 + Savings deposits with post
office savings banks
(d) M3 = M1 + Net time deposits of post
office savings
Sol. (d) M4 = M3 + total deposits with post
office savings organisations (exclding
national savings certificate); M1 = Currency
(notes + coins) + Demand deposits; M2 =
M1 + Savings deposits with post office
savings banks.
Q. 12. Which of the following concepts
implies that sustainable development
should take a holistic approach towards
notions of progress and give equal
importance to non economic aspects of
wellbeing ?
(a) Gross Domestic Product
(b) Gross National Product
(c) Gross National Happiness
(d) Net National Product
Sol. (c) The concept of Gross National
Happiness implies that sustainable
development should take a holistic
approach towards notions of progress and
give equal importance to non-economic
aspects of wellbeing.
Q. 13. In the context of Economics, what
does P stand for in EPF?
(a) Planning (b) Profit
(c) Promotion (d) Provident
Sol. (d) Employees Provident Fund (EPF) is a
scheme in which retirement benefits are
accumulated. For EPF, an employee
contributes 12 percent of the basic salary.
Q. 14. Which of the following is NOT
important for individual health?
(a) Social equality
(b) Public cleanliness
(c) Harmony
(d) Public transport
Sol. (d) Public transport is not important for
individual health. Living a healthy lifestyle
can help prevent chronic diseases and long-
term illnesses.
CONCEPTS OF DEMAND AND SUPPLY
Q. 15. In economic terms, what do we
mean by ‘Intermediate Goods’?
(a) Goods sold between industries for
resale or production of other goods.
(b) Goods in transit before reaching the
consumers.
(c) Price of goods without GST.
(d) Fixed assets used by manufacturers.
Sol. (a) Goods sold between industries for
resale or production of others Intermediate
goods, producer goods or semi-finished
products are goods, which are partly
finished goods, and are used for the
production of the other good which
eventually makes the final product. For ex.
If a mobile is to be exported then it’s
battery is an intermediate good.
Q. 16. The demand for a commodity or
service which is a consequence of the
demand for something else is called
______.
(a) Income Demand
(b) Direct Demand
(c) Composite Demand
(d) Derived Demand
Sol. (d) The demand for a commodity or
service which is a consequence of the
demand for something else is called derived
demand. For example if the demand of the
printer increases then the demand of the
paper will also increase, The increase in the
demand of the paper due to the increase in
the demand of the printer is known as
derived demand.
Q. 17. What effect will a decrease in
demand and an increase in supply have on
equilibrium price?
(a) Equilibrium price will fall|
(b) Equilibrium price will rise
(c) Equilibrium price will be constant
(d) Sometimes price will rise and
sometimes it will fall.
Sol. (a) Equilibrium price will fall An
decrease in demand and an increase in
supply will decrease the equilibrium price
and vice versa but the effect on equilibrium
quantity cannot be determined.
Q. 18. What would happen to the demand
curve when there is an increase in the price
of substitute products?
(a) Outward shift
(b) Remains constant
(c) Initially inward and then after a period
outward shift
(d) Inward shift
Sol. (a) Outward shift From the diagram
When the price of the product increases
then the customer will move to its
substitute product and suddenly the
demand for the substitute product will rise
From D to D’ which meansthat there is an
outward shift in the graph.
Q. 19._______ is a type of good for which
demand increases as its price rises.
(a) Giffen Good (b) Capital Good
(c) none (d) Consumer Good
Sol. (a) Giffen Good , A Giffen good is a
product that people consume more of as
the price rises and vice versa—violating the
basic law of demand in microeconomics.
For ex Iphone as it shows the standard of
living.
Q. 20. For economists, ______ refers to the
amount of a product or service that people
are both willing and able to buy.
(a) Demand (b) Supply
(c) Price (d) Income
Sol. (a) According to Economics demand
refers to the willingness to purchase , ability
to pay and willingness to pay. A consumer
may be able to differentiate between a
need and a want, but from an economist's
perspective they are the same thing.
Q. 21.What is the change in total utility due
to consumption of one additional unit of an
item called ?
(a) Marginal Utility
(b) Maximum Utility
(c) Minimum Utility
(d) Change Utility
Sol. (a) Marginal Utility is the additional
Satisfaction that a customer gets for an
additional unit of consumption or additional
unit of service.
Q. 22 As per the law of demand, if all other
commodities remain the same, then the
relation between the demand and price of a
commodity is
(a) Negative
(b) No Relation
(c) May be Positive or Negative
(d) Positive
Sol. (a) The Law of Demand states that
when the price of a commodity rises, then
its demand fall and vice versa keeping all
other things constant. So, if the demand
and price are inversely proportional to each
other.
Q. 23. What kind of relationship exists
between income and demand in case of
normal goods ?
(a) There is no impact of income on
demand
(b) Sometime there is a direct and
sometimes an inverse relationship
(c) There is a direct relationship
(d) There is an inverse relationship
Sol.(c) There is a direct relationship. In the
case of normal goods, income and demand
are directly related, which means an
increase in income will cause demand to
rise and a decrease in income causes
demand to fall.
Q. 24. Which of the following is a private
good ?
(a) A good that is available to everyone to
consume, regardless of who pays for it and
who does not.
(b) Spillover benefits
(c) Non-rival in consumption and non-
excludable
(d) A good that is consumed by a single
person or household
Sol. (d) A private good means a good which
is consumed by a single person or
household. Private goods are excludable
and rivalrous. Food, clothing, cars, parking
spaces, etc are private goods.
Q. 25. Which of the following best describes
the nature of the Indian economy ?
(a) Mixed Economy.
(b) Socialist Economy
(c) Communist Economy
(d) Capitalistic Economy
Sol. (a) In India both the private and public
sectors exist simultaneously which is a
feature of a mixed economy.
Q. 26. Which of the following economic
activities employs the maximum number of
people in india?
(a) Tourism (b) Manufacturing
(c) Agriculture (d) Mining
Sol. (c) In India the maximum number of
people are employed in the Agriculture
sector which contributes to one-fifth of the
total GDP and nearly half of the working
population is employed in Agriculture. The
share of IndiSol working in agriculture is
declining, but still the maximum number of
persons are employed in agriculture.
Q. 27. Which of the following come under
the Quaternary sector?
(a) Information Technology
(b) Mining
(c) Manufacturing
(d) Fisheries
Sol. (a) The three main sectors of the
economy are:
1. Primary sector – deals with the
extraction of raw materials – mining,
fishing, and agriculture.
2. Secondary/manufacturing sector – deals
with producing finished goods, e.g. making
toys, cars, food, and clothes.
3. Service / ‘tertiary’ sector – include both
production and exchange. Tertiary sector =
White collar jobs.
4. Quaternary jobs involve research and
development e.g. IT.
Q. 28. The National Board for Micro, Small
and Medium Enterprises meets once every
_________ months in a year.
(a) 2 (b) 6 (c) 3 (d) 9
Sol. (b) The Ministry of Micro, Small and
Medium Enterprises, meets once in every 6
month.This is a branch of the Government
of India, to administer and formulate law
for the micro, small and medium
enterprises in India.
Q. 29. The Micro, Small and Medium
Enterprises Development Act was passed in
the year_____.
(a) 2006 (b) 2004
(c) 2008 (d) 2002
Sol. (a) The Micro, Small and Medium
Enterprises Development Act, 2006 ("Act")
was enacted with a view to facilitate the
promotion and development of micro, small
and medium enterprises ("MSMEs") and to
enhance the competitiveness between
them.
Q. 30. Who among the following is also
known as the founder of macroeconomics
as a separate discipline?
(a) Adam Smith
(b) Fischer Black
(c) Robert Merton
(d) John Maynard Keynes
Sol. (d) J..M.Keynes is the founder of
macroeconomics. Macroeconomics is that
branch of the economy which deals with
the behaviour of the market at the large
level.
Q. 31. Which of the following is NOT a
primary activity?
(a) Agriculture (b) Construction
(c) Mining (d) Fishing
Sol. (b) The primary sector of the economy
extracts or harvests products from the
earth, such as raw materials and basic
foods. Construction is an industry that is
part of the secondary sector of the
economy, not the primary sector.
Q. 32. Based on economic activities, how
many sectors are there in Indian economy?
(a) 4 (b) 3 (c) 2 (d) 5
Sol. (b) They are three sectors in the Indian
economy, they are; primary economy,
secondary economy, and tertiary economy.
In terms of operations, the Indian economy
is divided into organized and unorganized.
While for ownership, it is divided into the
public sector and the private sector.
Q. 33. What should be the investment of
Micro enterprises in plant & machinery
(Manufacturing Sector) ?
(a) Between twenty five lakh and fifty lakh
(b) More than fifty lakh
(c) Not more than twenty five lakh
(d) More than twenty five lakh
Sol. (c) A micro enterprise is an enterprise
where investment in plant and machinery
does not exceed Rs. 25 lakh.
Q. 34. Which of the following is NOT a
capital good?
(a) Tools (b) Food and Clothing
(c) Machine (d) Truck
Sol. (b) Food and Clothing , The physical
Asset that a company uses in the
production process and manufacturing
process and services Capital goods mainly
consist of buildings, machinery, equipment,
vehicles, and tools. Food and Clothing is not
a capital income.
Q. 35. Which Economist developed
international trade theory in 1817 based on
comparative advantage and specialisation ?
(a) Paul Krugman
(b) Gary Becker
(c) Milton Friedman
(d) david Ricardo
Sol. (d) david Ricardo , David Ricardo
developed the classical theory of
comparative advantage in 1817 to explain
why countries engage in international trade
even when one country's workers are more
efficient at producing every single goods
than workers in other countries.
Q. 36 Which of the following activities is
also referred to as 'Gold Collar' profession?
(a) Secondary (b) Quaternary
(c) Primary (d) Quinary
Sol. (d) tertiary activities are classified into
quaternary and quinary activities. Quinary,
also known as 'gold collar' professions
which represents special and highly paid
skills of senior business executives,
government officials, research scientists,
financial and legal consultants, etc.
Q. 37. For the calculation of the 'wholesale
price index' in 2019, _____ is taken as the
base year.
(a) 2013-14 (b) 2014-15
(c) 2011-12 (d) 2012-13
Sol. (c) 2011-2012 was taken as the base
year for the calculation of the ‘Wholesale
price index 2019.

Q. 38. In which year was the first Industrial
Policy based on the mixed economy
principle announced in India? The policy
clearly demarcated the areas of operation
of the public and private sectors.
(a) 1959 (b) 1948
(c) 1950 (d) 1962
Sol. (b) 1948 , On April 6,1948 the
government of India announced the first
industrial policy based on a mixed economy
principle.this policy was proposed to the
parliament by the industry minister of that
time Dr.Shyama Prasad Mukharji.
Q. 39. Which of the following is working
capital in the farming sector?
(a) threshing machine (b) money
(c) tractor (d) land
Sol. (b) Money , Working Capital is current
assets, which can be turned to cash in one
year or less, minus current liabilities due
within one year. Working capital measures
financial liquidity, which is the ability to sell
assets without disrupting normal business
operations.
Q. 40.In_____ economies, all productive
resources are owned and controlled by the
government.
(a) dual (b) capitalist
(c) mixed (d) socialist
Sol. (d) A socialist economy is a system of
production where goods and services are
produced directly for use. In this type of
economy there is less or no competition as
the state is the only entrepreneur.
Q. 41. Private ownership of the meSol of
production is a feature of a ______
economy.
(a) capitalist (b) socialist
(c) mixed (d) dual
Sol. (a) Capitalism is an economic system
based on private ownership. In this type of
system private firms are the key players,
they actually focus on their profit and the
quality of service provided by them is also
better.
Q. 42. John Maynard Keynes, best known
for his economic theories (Keynesian
theories), hailed from which country?
(a) Sweden (b) Denmark
(c) Australia (d) England
Sol. (d) John Maynard Keynes, belongs to
England. He is also known as the Father of
Macroeconomics.
Q. 43. Depreciation is an annual allowance
for the wear and tear of ______.
(a) finished goods (b) capital goods
(c) work in progress (d) land
Sol. (b) Depreciation is an annual decrease
in the price of a capital good over a year
due to wear and tear and some other
reasons.
Q. 44. Which of the following activities can
be classified as a part of secondary sector of
an Economy ?
(a) Legal consulting
(b) Tea plantation
(c) Farm equipment manufacturing
(d) Banking
Sol. (c) Farm equipment manufacturing ,
Secondary sector is also known as the
manufacturing sector. Farm equipment
manufacturing is a part of the secondary
sector of an economy.
Q. 45. The mixed economy is :-
(a) presence of subsistence and commercial
farming
(b) co-existence of traditional and modern
industries
(c) a market system of resource allocation,
commerce, and trade in which free markets
coexist with government intervention
(d) presence of domestic and foreign
investments
Sol. (c) A mixed economic system is a
system that combines aspects of both
capitalism and socialism. A mixed economic
system protects private property and allows
a level of economic freedom in the use of
capital, but also allows for governments to
interfere in economic activities in order to
achieve social aims.
Q. 46. Which of the following is an
economic system in which capital goods are
owned by private individuals or businesses
and the production of goods and services is
based on supply and demand in the general
market?
(a) Mixed Economy
(b) Capitalistic Economy
(c) State Economy
(d) Communist Economy
Sol. (b) In a Mixed economy, the private
sector (Capitalism) and public sector
(Socialism) exist side by side. In a
Capitalistic economy, capital goods are
owned by private individuals or businesses
and the production of goods and services is
based on supply and demand in the general
market. In a communist economy, the
government owns most of the factors of
production and decides the allocation of
resources and what products and services
will be provided.
Q. 47. Which of the following is a tertiary
economic activity?
(a) Farming (b) Trading
(c) Hunting (d) Weaving
Sol. (b) Primary economic activity involves
getting raw materials from the natural
environment like mining, farming and
fishing. Secondary economic activity
involves manufacturing like making cars and
steel. Tertiary activities include providing
services such as trade, transport, financial
operations, business services, personal
services, accommodation and food service
activities, real estate, education, health etc.
Q. 48. An industrial economy is best defined
as an economy whose 50% or more
produce value comes from the _______
sector.
(a) banking (b) secondary
(c) tertiary (d) primary
Sol; (b) An industrial economy is best
defined as an economy whose 50% or more
production value comes from the secondary
sector.
COSTS, PRODUCTION, (d) First Public offer
Sol. (c) Follow- on Public Offer The process
CONSUMPTIONS AND by which the company, which is already
MARKET listed on the stock exchange can issue new
shares to the investors or existing
Q. 49. Pricing Policy of Minimum support
shareholders is known as FPO (Follow on
price follows which approach?
Public Offer).
(a) Cost plus approach
(b) Investment plus approach
Q. 53. The 'transformation curve' is also
(c) Land plus approach
known as the:
(d) Loan plus approach
(a) production possibility curve
Sol. (a) Minimum Support Price (MSP) is a
(b) indifference curve
form of market intervention by the
(c) supply curve
Government of India to insure agricultural
(d) demand curve
producers against any sharp fall in farm
Sol. (a) production possibility curve The
prices. Cost of production (CoP) is one of
transformation curve is defined as the
the important factors in the determination
maximum amount of commodity X
of MSP of mandated crops.
obtainable for any given amount of
commodity Y, and vice versa. It is also
Q. 50. The expenses leading to the
known as production-possibility curve.
increment in production capacity are which
type of expenses ?
Q. 54. ______ refers to money that has
(a) Revenue Expenditure
already been spent and which cannot be
(b) Production Expenditure
recovered.
(c) Investment Expenditure
(a) Replacement cost
(d) Capital Expenditure
(b) Opportunity cost
Sol. (c) The expenses leading to the
(c) Imputed cost
increment in production capacity are
(d) Sunk cost
Investment expenditure. It is the
Sol. (d) Replacement cost is the cost of
expenditure that an organisation makes for
replacing an asset, plant, machinery,
the creation of the new assets like
equipment etc. Opportunity cost refers to
machinery, building etc.
the cost of the next best alternative
foregone in order to pursue the chosen
Q. 51. In the context of capital markets ,
action. Imputed cost are hypothetical costs
the abbreviation ‘FPO’ stands for:
which are considered just for the purpose
(a) Free Public Offer
of decision making and do not involve any
(b) First Portfolio Operation
actual cash outflow. Sunk cost is the cost
(c) Follow- on Public Offer
which is not altered by a change in current
business activity. It can be understood as an
irrevocable cost of the past business activity
which has to be incurred now and is
irrelevant to the current business scenario.
Q. 55. Which of the following is NOT a
central economic problem, solved by the
Production Possibility Curve (PPC) ?
(a) Full utilisation of resources
(b) Sustainable consumption
(c) Economic efficiency
(d) Economic growth
Sol. (b) The Production Possibilities Curve
(PPC) is a model used to show the trade offs
associated with allocating resources
between the production of two goods. The
PPC can be used to illustrate the concepts
of scarcity, opportunity cost, efficiency,
inefficiency, economic growth and
contractions.
Q. 56. What is Gini coefficient used for ?
(a) To measure income equality
(b) To measure income inequality
(c) To measure distribution of income
(d) To measure profit and loss
Sol. (b) To measure income inequality Gini
coefficient is used to measure income
inequality. A value of ‘0’ represents
absolute equality, a value of 100 represents
absolute inequality.
Q. 57. A higher ______ index represents
inequality in income distribution.
(a) CPI (b) Gini
(c) GDP (d) NDP
Sol. (b) Gini coefficient measures the
inequality in income distribution. A value of
0 represents absolute equality, a value of
100 represents absolute inequality.
Q. 58. Which of the following does NOT
have an opportunity cost ?
(a) Soap (b) Software
(c) Sunlight (d) Stylus
Sol. (c) Opportunity costs represent the
potential benefits an individual, investor, or
business misses out on when choosing one
alternative over another. From the given
options ‘Sunlight’ does not have an
opportunity cost.
Q. 59. The Cabinet Committee on Economic
Affairs (CCEA) increased the Minimum
Support Prices (MSPs) of cotton (long
staple) to ₹______ per quintal for
marketing season 2020-21.
(a) 7,285
(b) 5,825
(c) 6,855
(d) 8,525
Sol. (b) The Cabinet Committee on
Economic Affairs (CCEA) increased the
Minimum Support Prices (MSPs) of cotton
(long staple) to ₹5,825 per quintal for
marketing season 2020-21.
Q. 60. Which department of the
Government of India declares the minimum
support prices ?
(a) Department of Economic Affairs
(b) Department of Agriculture and
Cooperation
(c) Department of Disinvestment
(d) Department of Expenditure
Sol. (b) Department of Agriculture and
Cooperation Department of the
Government of India declares the minimum
support prices. As of now, CACP
recommends MSPs of 23 commodities. The
MSP system was started in 1966-67.
Q. 61. What is the full form of WPI?
(a) Wholesale Product Index
(b) Wholesale Price Information
(c) World Product Index
(d) Wholesale Price Index
Sol. (d) A wholesale price index (WPI)
measures and tracks the changes in the
price of goods before they reach
consumers. WPI= (Current Price / Base
Period Price) × 100
Q. 62.Which amongst the following is NOT
one of the four main factors of production?
(a) Land (b) Labour
(c) Expenditure (d) Entrepreneurship
Sol. (c) Economists divide the factors of
production into four categories: land, labor,
capital, and entrepreneurship. So,
Expenditure is not the factor of the
production.
Q. 63.What does the Lorenz curve indicate
? time of selection.
(a) Relationship between the price of a
certain commodity and its demand.
(b) Income distribution
(c) Rate of employment
(d) Taxable income elasticity
Sol. (b) The Lorenz curve is a graphical
representation of the distribution of income
or of wealth. The graph represents the
population percentile on X-axis and Y-axis
represent the cumulative frequency
Q. 64. What is the name given to the graph
that shows all the combinations of two
commodities that a consumer can afford at
given market prices and within the
particular income level in economic terms ?
(a) Demand Curve
(b) Isocost Line
(c) Supply Curve
(d) Budget Line
Sol. (d) The Budget Line, also called as
Budget Constraint shows all the
combinations of two commodities that a
consumer can afford at given market prices
and within the particular income level.
Q. 65. Which economist gave the theory of
Opportunity cost?
(a) Milton Friedman
(b) Adam Smith
(c) John Keynes
(d) Gottfried Haberler
Sol. (d) Gottfried Haberier gave the theory
of the opportunity cost. Opportunity cost in
microeconomics is the loss of the benefit
that could have been taken by making the
alternative option that was available at the
Q. 66.When the output is equal to zero, the
variable cost is _______.
(a) Constant (b) Zero
(c) Minimum (d) Maximum
Sol. (b) Total Variable cost = total quantity
of output variable cost per unit. If output is
equal to zero then the variable cost is equal
to zero. Total cost = variable cost +fixed
cost
Q. 67. What is the value of all tangible
resources such as raw materials and labour
that are used in the production process
called ?
(a) Real Coast
(b) Variable Cost
(c) Opportunity Cost
(d) Fixed Cost
Sol. (a) Real Cost : It is the overall actual
expense involved in creating a good or
service for sale to consumers.The real cost
of production for a business typically
includes the value of all tangible resources
such as raw materials and labor that are
used in the production process.
Q. 68.A marketplace in which final goods or
service is bought and sold is called ____.
(a) Equity Market
(b) Factor Market
(c) Commodity Market
(d) Product Market
Sol. (d) The product market is the market
where final goods or services are sold to the
customer for example the pharmaceutical
sector, smart- phones. In this type of
market trading of raw does not happen
both company and customer deals with the
finished product .
Q. 69. A market structure which is
dominated by only a small number of firms
is called:
(a) Perfect Competition
(b) Monopoly
(c) Oligopoly
(d) Monopolistic Competition
Sol. (c) The monopolistic competition is also
called a competitive market, where there is
a large number of producers, each producer
has a small share in the market with slightly
different products.
Q. 70. In Economics, buying an asset in one
market and simultaneously selling an
identical asset in another market at a higher
price is termed as_____.
(a) Depreciation (b) Mortgage
(c) Arbitrage (d) Devaluation
Sol. (c) Arbitrage is the practice of taking
advantage of a price difference between
two or more markets. In this type of trade
one is profited by selling similar assets in
different markets and in different forms.
Q. 71. The ______ shows all the
combinations of two commodities that a
consumer can afford at given market prices
and within the particular income level.
(a) Utility line (b) Supply line
(c) Demand line (d) Budget line
Sol. (d) The Budget Line, also called as
Budget Constraint shows all the
combinations of two commodities that a
consumer can afford at given market prices
and within the particular income level.
Q. 72. Which of the following is not
included in the factors of production ?
(a) Capital (b) Labour
(c) Tax (d) Land
Sol. (c) Factors of production are the inputs
needed for the creation of a good or
service. The factors of production include and Departments to establish a 'Gender
land, labor, entrepreneurship, and capital. Budgeting Cell' by 1st January 2005.
Tax is not the factor of production.
Q. 75.The financial resources of an
NATIONAL INCOME, economy cannot be mobilized
(a) Public Savings
INFLATION, BUDGET, (b) Individual Savings
TAXATION AND GDP (c) Taxation
(d) Inflation
Sol. (d) Inflation , The financial resources of
an economy cannot be mobilized by
Q. 73.What is the National Gross Domestic
Inflation. It can be mobilized by Public
Product(GDP) ?
Savings, Initial savings taxation etc.
(a) The GDP that is calculated in terms of
cryptocurrency.
Q. 76. _______ is a type of direct Tax which
(b) The GDP that is calculated by taking a
is levied at the time of sale/purchase of
base year as a determinant
securities through the Indian Stock
(c) The GDP that is calculated at the current
Exchanges.
market price.
(a) Stamp Duty
(d) The GDP that excludes all exports and
(b) Shares and Securities Tax
imports in the calculation.
(c) Stamp and Securities Tax
Sol. (c)The GDP that is calculated at the
(d) Securities Transaction Tax
current market price. Gross Domestic
Sol. (d) Securities Transaction Tax STT is a
Product (GDP) is the total monetary or
kind of financial Transaction tax which is
market value of all the finished goods and
similar to tax collected at source (TCS). STT
services produced within a country's
is a direct tax levied on every purchase and
borders in a specific time period.
sale of securities that are listed on the
recognized stock exchanges in India.
Q. 74. In which year, the first Gender
Budget Statement appeared in the Union
Q. 77. Which of the following statements
Budget of India?
regarding Goods and Services Tax is
(a) 2001-02 (b) 2005-06
INCORRECT ?
(c) 2010-11 (d) 2007-08
(a) It has no Compliance Cost
Sol. (b) In 2005-06 the first gender
(b) This eliminates the far-reaching effects
Budgeting Cell budget was introduced in
of tax.
parliament. In December 2004, the
(c) It resolves disputes related to the
Department of Economic Affairs, Ministry of
classification of goods and services
Finance, issued instructions to all Ministries
 (d) Goods and services tax will not be a cost
for registered retailers, so there will be no
hidden tax.
Sol. (a) It has no Compliance Cost Goods
and services tax (GST) has no compliance
cost.
Q. 78. Which among the following indirect
taxes is charged by the Central Government
? This net income from abroad includes
(a) Service Tax (b) Luxury tax
(c) Purchase tax (d) Taxes on Lottery
Sol. (a)Service Tax Indirect taxes are those
taxes that can be transferred to another
person. Service tax comes under the central
government whereas all others options are
state government taxes.
Q. 79. Current Account of Balance of
payments does NOT include which of the
following?
(a) Investments
(b) Transfer Payments
(c) Trade in Goods
(d) Trade in Services
Sol. (a) The current account on the balance
of payments measures the inflow and
outflow of goods, services, investment
incomes, and transfer payments. The main
components of the current account are
Trade in goods (visible balance) Trade in
services (invisible balance), e.g. insurance
and services.
Q. 80.Which of the following relations is
true?
(a) GNP = GDP * Net factor income from
abroad
(b) GNP = GDP - Net factor income from
abroad
(c) GNP = GDP + Net factor income from
abroad
(d) GNP = GDP / Net factor income from
abroad
Sol. (c) GNP = GDP + Net factor income
from abroad , GNP (Gross National Product)
= GDP + net property income from abroad.
dividends, interest and profit. GNI (Gross
National Income) = (similar to GNP) includes
the value of all goods and services produced
by nationals – whether in the country or
not.
Q. 81. Which of the following statements is
true regarding disinflation ?
(a) A scenario when inflation is mainly due
inflation of only a few commodities and not
of all commodities
(b) An overall decrease in prices over a
specific period
(c) A decrease in the rate of inflation in a
specific period.
(d) A sudden sharp decrease in prices due
to unexpected reasons..
Sol. (c) A decrease in the rate of inflation in
a specific period. Disinflation is a decrease
in the rate of the inflation. Disinflation
occurs when the increase in the “consumer
price level” slows down from the previous
period when the price were rising. For
example, if the annual inflation rate for the
month of january is 5% and it is 4% in the
month of February, the prices disinflated by
1% but are still increasing by a 4% annual
rate.

Q. 82. Which among the following regarding
GST is correct ?
(a) GST network was formed under
Companies Act
(b) The 100th Amendment introduced GST
in the country
(c) Centre holds 100 per cent stake in GST
network
(d) GST council is a statutory body
Sol. (a) GST network was formed under the
Companies Act.Goods & Services Tax
Council is a constitutional body for making
recommendations to the Union and State
Government on issues related to Goods and
Service Tax. The GST in the country was
introduced through the 101st amendment.
As of October 2019, the Centre will own a
50 percent stake in the GST Network and
the remainder will be held by the states on
a pro-rata basis in the new structure.
Q. 83. Which of the following may be
classified as a 'Pigouvian tax'?
(a) Long term capital gain tax
(b) Corporate tax
(c) Carbon tax
(d) Income tax
Sol.(c) Carbon tax , A Pigovian tax is a tax on
any market activity that generates negative
impacts on the environment or society. The
tax is intended to correct an undesirable or
inefficient market outcome. A carbon tax is
a tax levied on the carbon content of goods
and services.
Q. 84. Who among the following publishes
the Economic Survey of India ?
(a) Ministry of Finance
(b) Indian Statistical Institute
(c) National Development Council
(d) Institute of finance
Sol. 2 (a) Ministry of Finance , Economic
survey of India is published by the Ministry
of Finance. The Department of Economic
Affairs, Ministry of Finance presents the
survey in parliament every year, just before
the union budget.
Q. 85. The aggregate value of goods and
services produced in an economy can be
calculated by three methods: income
method, expenditure method and ______
method.
(a) spending
(b) product / value added
(c) deposit
(d) lending
Sol. 3 (b) product / value added , The value-
added method of calculating national
income focuses on the value added to a
product at each stage of production.
Q. 86. A situation where the expenditure of
the government exceeds its revenue is
known as______.
(a) Default
(b) Devaluation
(c) Deficit Financing
(d) Morbidity
Sol. (c) Deficit Financing , A situation where
the expenditure of the government exceeds
its revenue is known as Deficit financing. To
make up with this deficit the government
generally disinvest, borrowing of loSol or
minting of new currency.

Q. 87.What does GNP stand for ?
(a) Gramin Nisak Praman
(b) Gramin Nigam Parishad
(c) Gross National Product
(d) Gross National Produce
Sol. (c) Gross national product (GNP) is an
estimate of the total market value of all
goods and services produced in one year by
labour and property supplied by the
residents of a country.
Q. 88.Under which Amendment to the
Constitution of India was Goods and
Services Tax imposed ?
(a) 101st (b) 99th
(c) 103rd (d) 97th
Sol. (a)101st , The Constitution (One
Hundred and First Amendment) Act, 2016,
introduced Goods and Services Tax (GST) in
India which came into effect from 1 July
2017. It replaces all indirect taxes levied on
goods and services by the Central and state
governments with a single nation wide tax.
Q. 89. GST was introduced by which
amendment act of the Constitution ?
(a) 102 (b) 107
(c) 101 (d) 106
Sol. (c) 101 , GST was introduced by 101st
Constitutional Amendment Act.
Q. 90 Which of the following sectors of the
economy has the highest share in India's
GDP ?
(a) Agriculture (b) Industrial
(c) Manufacturing (d) Service
Sol. (d) The services sector is estimated to
contribute 55.3% to India’s GVA in 2019-20.
Q. 91. Which of the following best defines
Net National Income ?
(a) NDP – Depreciation
(b) GNP + Depreciation
(c) GDP – Depreciation
(d) GNP – Depreciation
Sol. (d) GNP – Depreciation , Gross National
Product is Gross Domestic Product (GDP)
plus net factor income from abroad. It
measures the monetary value of all the
finished goods and services produced by
the country’s factors of production
irrespective of their location. When
depreciation is deducted from the GNP, we
get Net National Income.
Q. 92. Who among the following is
responsible for preparation of National
Income estimates in India ?
(a) Central Statistical Organization
(b) IRDA
(c) Finance Commission
(d) NITI Aayog
Sol. (a) Central Statistical Organization ,
Central Statistical Organization, working
under Ministry of Statistics and Programme
Implementation is responsible for
preparation of National Income estimates in
India.
Q. 93. Goods and Services Tax (GST) was
enacted by Parliament vide
______Constitutional Amendment Act,
2016 on 8th September 2016.
(a) 103rd (b) 105th
 (c) 107th (d) 101st
Sol. (d) 101st , Goods and Services Tax
(GST) was enacted by Parliament vide 101st
Constitutional Amendment Act, 2016 on 8th
September 2016.
Q. 94. The GST council is headed by the:
(a) Prime minister
(b) SEBI chairman
(c) RBI governor
(d) Union finance minister
Sol. (d) Union finance minister , The GST
Council consists of the Union Finance
Minister (as Chairman), the Union Minister
of State in charge of Revenue or Finance
and the Minister in charge of Finance or
Taxation or any other Minister, nominated
by each State government.
Q. 95. Tax reforms are concerned with the
reforms in the government’s taxation and
public expenditure policies, which are
collectively known as its ______.
(a) fiscal reforms
(b) fiscal policy
(c) financial policy
(d) financial reforms
Sol. (b) fiscal policy , Tax reforms are
concerned with the reforms in the
government’s taxation and public
expenditure policies, which are collectively
known as its Fiscal Policy.Through fiscal
policy the government adjusts its spendings
and tax rate to monitor and influence the
nation’s economy.
Q. 96. As per the recommendations of the
National Statistical Commission, the Base
Year of the GDP Series in India was revised
from 2004-05 to ______ with effect from
January 2015.
(a) 2011-12 (b) 2013-14
(c) 2005-06 (d) 2009-10
Sol. (a) As per the recommendations of the
National Statistical Commission, the Base
Year of the GDP Series in India was revised
from 2004-05 to 2011-12 with effect from
January 2015.
Q. 97. Ronald Reagan, the 40th President of
the US, signed the largest tax cut in the
history of their country in 1981. Which
economic theory was this policy centred
around?
(a) Laffer Curve
(b) Lorenz Curve
(c) Kuznets Curve
(d) Sweezy's Kinked Demand Curve
Sol. (a) Ronald Reagan, the 40th President
of the US, signed the largest tax cut in the
history of their country in 1981. This policy
was centered around the economic theory
of the Laffer Curve.
Q. 98. The difference between Revenue
Receipts plus Non-debt Capital Receipts
(NDCR) and total expenditure is called
______.
(a) Revenue Deficit
(b) Fiscal Deficit
(c) Effective Revenue Deficit
(d) Primary Deficit
Sol. (b) The difference between Revenue
Receipts plus Non-debt Capital Receipts
(NDCR) and total expenditure is called Fiscal
Deficit. A fiscal deficit is a shortfall in a
government's income compared with its
spending. The government that has a fiscal
deficit is spending beyond its means. A
fiscal deficit is calculated as a percentage of
gross domestic product (GDP), or simply as
total dollars spent in excess of income.
Q. 99. India's average exponential growth
rate (population) for the period 2001-2011
was ______% per annum.
(a) 3.82 (b) 1.64
(c) 0.46 (d) 2.38
Sol. (b) India's average exponential growth
rate (population) for the period 2001-2011
was 1.64 % per annum.
Q. 100. In which year was the Value Added
Tax introduced in India?
(a) 2007 (b) 2005
(c) 2002 (d) 2010
Sol. (b) The Value Added Tax was
introduced in India in 2005. VAT has been
implemented in all the states and union
territories of India except Pondicherry,
Andaman and Nicobar Islands, and
Lakshadweep Island.
Q. 101. In which year did the Government
of India introduce value-added tax (VAT) as
an indirect tax in the Indian taxation system
to replace the existing general sales tax?
(a) 2005 (b) 2011
(c) 2013 (d) 2007
Sol. (a) In 2005, the Government of India
introduced value-added tax (VAT) as an
indirect tax in the Indian taxation system to
replace the existing general sales tax.
Q. 102. Which of the following items does
NOT directly affect the Current Account
Balance of India?
(a) Net income abroad
(b) Foreign aid
(c) Trade gap
(d) Revenue income
Sol. (d) Revenue income does not directly
affect the Current Account Balance of India.
Revenue is the total amount of income
generated by the sale of goods or services
related to the company's primary
operations.
Q. 103. Which of the following best
represents the concept of Net Domestic
Product (NDP) ?
(a) GDP – Income from abroad
(b) GDP + Income from abroad
(c) GNP – Depreciation
(d) GDP – Depreciation
Sol. (d) GDP – Depreciation best represents
the concept of Net Domestic Product (NDP).
Net domestic product (NDP) is an annual
measure of the economic output of a nation
that is adjusted to account for depreciation.
It is calculated by subtracting depreciation
from the gross domestic product (GDP).
This concept determines the economic
health of a country.
Q. 104. Which among the following is
included in the gross domestic product?
(a) Sale of used goods
(b) Bartered goods and services
(c) Sales of final goods
(d) Transfer payments
Sol. (c) Sales of final goods are included in
the gross domestic product. GDP measures
the monetary value of final goods and
services. GDP is the most commonly used
measure of economic activity.
Q. 105. The Union Budget, 2020-21,
increased deposit insurance coverage for
bank deposits to ₹______ per depositor.
(a) 1 lakh (b) 2 lakh
(c) 5 lakh (d) 3 lakh
Sol. (c) The Union Budget, 2020-21,
increased deposit insurance coverage for
bank deposits to ₹5 lakhs per depositor.
Q. 106. Which country was the first to
implement Goods and Services Tax (GST)?
(a) France (b) USA
(c)Germany (d) Canada
Sol. (a) The Goods and Service Tax is
popularly known as GST was first
introduced in France in 1954. It came into
effect in India from 1 July 2017(also known
as GST day) by the 101st amendment of the
constitution . GST replaced the existing tax
system of India into a single tax.
Q. 107. If there is a lack of money supply in
comparison to the supply of goods and
services, then the possible consequence
would be_____.
(a) Hyperinflation (b) Deflation
(c) Devaluation (d) Inflation
Sol. (b) Deflation refers to the state when
the price of the goods and services is kept
on decreasing. Negative inflation is also
known as Deflation.
Q. 108. A sustained rise in the general price
level in an economy is called ___________.
(a) Disinflation (b) Deflation
(c) Inflation (d) Stagflation
Sol. (c) Inflation refers to the state when
the price of the goods and services is kept
on increasing. When the general price level
rises, each unit of currency will buy fewer
goods and services, finally decreasing the
purchasing power of the currency.
Q. 109 A _________ occurs when a
government’s total expenditures exceed the
revenue that is generated, excluding money
from borrowings.
(a) Current Account Deficit
(b) Budgetary Deficit
(c) Revenue Deficit
(d) Fiscal Deficit
Sol. (d) Fiscal Deficit = Total Expenditure -
Total Revenue(without borrowing)Current
Account Deficit is when a country’s import
exceeds it’s export.Budgetary deficit is the
sum of revenue account deficit and capital
account deficit. If revenue expenses of the
government exceed revenue receipts, it
results in revenue account deficit.
Q. 110. A situation where the expenditure
of the government exceeds its revenue is
called:
(a) Default Financing
(b) Deficit Revenue
(c) Budget Deficit
(d) Default Revenue
Sol. (c) A budget deficit occurs when the
expenditure of the company exceeds the
revenue collected by the country. The
government generally uses the term budget
deficit when referring to spending rather
than businesses or individuals.
Q. 111. A substantial increase in capital
expenditure or revenue deficit leads to ___.
(a) Budgetary Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) Revenue Deficit
Sol. (b) A substantial increase in capital
expenditure or revenue deficit leads to
Fiscal deficit. A fiscal deficit occurs when a
government's total expenditures exceed the
revenue that it generates, excluding money
from borrowings.
Q. 112. When the deficit is high, what
happens to prices ?
(a) Prices decrease
(b) there is no direct impact on prices
(c) Prices remain stable
(d) Prices increase
Sol. (d) When the deficit is high then mainly
government borrows from reserve bank of
India or sells it property(Disinvestment),
printing of new notes is also an option this
increases the liquidity in the market which
eventually causes condition of inflation in
the market and thus the price increases.
Q. 113. What is the economic impact of
increase in productivity of firms?
(a) Decrease in Gross Domestic Product
(b) No change in Gross Domestic Product
(c) The impact may vary among nations and
their economic conditions
(d) Increase in Gross Domestic Product
Sol. (d) Increase in Gross Domestic Product
means the increase in revenue, which
means that to export more at the same
input which eventually increases the
productivity of the firm.
Q. 114. What is the full form of GSTIN in
relation to GST ?
(a) Goods and Services Tax Identification
Note
(b) Goods and Services Tax Identification
Number
(c) Goods and Services Tax Information
Number
(d) Goods and Services Taxation Income
Number
Sol. (b) Goods and Services Tax
Identification Number , Under GST a service
tax registration number by the Central
given to each and every service Board of
Excise and Custom (CBEC) provider. All the
service providers are under the same
format number which consist of 16 digits.
Q. 115. In which year was the Central Board
of Revenue Act in India promulgated?
(a) 1983 (b) 1963
(c) 1973 (d) 1953
Sol. (b) Central Board of Revenue Act
separates Board of revenue for direct taxes
and excise and customs.
Q. 116. Name the Nobel Prize winning
American economist whose report to the
US Congress titled “National Income, 1929-
35” paved the way for the calculation of
Gross Domestic Product (GDP) as the
ultimate measure of a country’s overall
welfare.
(a) Paul Samuelson
(b) John Maynard Keynes
(c) Simon Kuznets
(d) Kenneth Arrow
Sol. (c) Simon Kuznets, a Russian-American
development economist and statistician,
was awarded the 1971 Nobel Memorial
Prize in Economics for his research on
economic growth. He is best known for his
work on the calculation of Gross Domestic
Product (GDP) as the ultimate measure of a
country’s overall welfare .
Q. 117. Which one of the following brings
out an annual publication titled 'National
Accounts Statistics' containing Gross
Domestic Product, Fixed Capital Formation
and other macroeconomic aggregates?
(a) The Indian Statistical Institute (ISI)
(b) The Central Statistics Office (CSO)
(c) The NAtional Sample Survey Office
(NSSO)
(d) The Reserve Bank of India (RBI)
Sol. (b) The Central Statistics Office (CSO) ,
The Central Statistics Office is a
governmental agency in India under the
Ministry of Statistics which brings out an
annual publication titled 'National Accounts
Statistics' containing Gross Domestic
Product, Fixed Capital Formation and other
macroeconomic aggregates.
Q. 118. _____ is the final value of all the
finished goods and services produced
within a country’s borders in a specific time
period.
(a) Government revenue
(b) Net National Product
(c) Gross Domestic Product
(d) Gross National Product
Sol. (c) Gross Domestic Product (GDP) is the
total monetary or market value of all the
finished goods and services produced
within a country's borders in a specific time
period. As a broad measure of overall
domestic production, it functions as a
comprehensive scorecard of the country’s
economic health.
Q. 119. Which of the following are the
major state taxes in India?
(a) Stamp duty and registration
(b) Income tax
(c) Corporation tax
(d) Customs duty
Sol. (a) Stamp duty and registration ,
Registration fee is the cost levied by the
government to record the property details,
and stamp duty is a tax levied on the legal
recognition of the property documents.
However, the stamp duty and registration
charges depend on the ownership type and
the transaction value of the property.
Q. 120.How many members are there in the
GST Council ?
(a) 33 (b) 35 (c) 25 (d) 23
Sol. (a) 33 , GST Council is the governing
body of GST having 33 members, out of
which 2 members are of centre and 31
members are from 29 states and 3 Union
territories with legislation.
Q. 121. What is the meaning of Fiscal Deficit Sol. (d) The products which are exempted
? from GST are Alcohol, petroleum and
(a) Total revenue collected by the govt Electricity bill. Rest all the commodity
(b) The difference between total revenue comes under GST.
and total expenditure of the govt
(c) Total expenditure of the govt
(d) Total amount of loan taken by the govt MONEY BANKING AND
Sol. (b) The difference between total
revenue and total expenditure of the govt . FINANCIAL INSTITUTIONS
Fiscal Deficit can be expressed as: Fiscal
Deficit = Total Expenditure – Total Receipts Q. 125. Which of the following is NOT a
(Excluding Borrowings). nationalised bank?
(a) United Bank of India
Q. 122. Fiscal Policy is formulated by (b) State Bank of India
______ in India. (c) Punjab National Bank
(a) NITI Ayog (b) Finance Ministry (d) Punjab and Sind Bank
(c) RBI (d) Different Banks Sol. (b) State Bank of India ( SBI ) is not a
Sol. (b) In India, Fiscal Policy is formulated nationalized bank. It is a PUBLIC SECTOR
by the Ministry of Finance. Governments BANK. There are a total of 12 Public Sector
use fiscal policy to promote strong and Banks alongside 1 state-owned Payments
sustainable growth and reduce poverty. Bank in India.

Q. 123. GST council is headed by : Q. 126. If the inflation in an economy is

(a) Union Finance Minister rising steadily, the Central Bank might
(b) CAG ______.
(c) RBI Governor (a) keep the repo rate unchanged
(d) Prime Minister (b) decrease the repo rate
Sol. (a) The council is headed by the union (c) decrease the reverse repo rate
finance minister Nirmala Sitharaman (d) increase the repo rate
assisted with the finance minister of all the Sol. (d) increase the repo rate , The inflation
states of India. in an economy is rising steadily then the
central bank might increase the repo rate.
Q. 124. GST is NOT applicable on which of
the following goods or services ? Q. 127. Merchant discount rate refers to
(a) Automobiles _______.
(b) Salon services (a) only taxes that a digital payment entails
(c) Restaurant services (b) the total discount a merchant offers on
(d) Alcohol online transactions
 (c) the rate charged to a merchant for
payment processing services on debit and
credit card transactions.
(d) the total discount a bank offers to the
merchant for promoting online transactions
ions.
Sol. (c) the rate charged to a merchant for
payment processing services on debit and
credit card transactions The merchant
discount rate is the rate charged to a
merchant for payment processing services
on debit and credit card transactions. The
merchant must set up this service and agree
to the rate before accepting debit and
credit cards as payment.
Q. 128. Which of the following Acts was
amended to provide a statutory basis for
the implementation of the flexible inflation
targeting (FIT) framework ?
(a) Deposit Insurance and Credit Guarantee
Corporation Act, 1961
(b) Banking Regulation Act, 1949
(c) Reserve Bank of India (RBI) Act, 1934
(d) The Industrial Finance Corporation of
India Act, 1948
Sol. (c) Reserve Bank of India (RBI) Act,
1934 , In May 2016, The Reserve Bank of
India Act of 1934 was amended to provide a
legal basis for the execution of the flexible
inflation targeting agenda. The edited RBI
Act also provides for the inflation target to
be set by the Indian Government, after
discussing with the Reserve Bank, once in
every five years.
Q. 129. Which among the following
financial institutions was nationalised in
1949?
(a) RBI (b) SIDBI
(c) PNB (d) IFCI
Sol. (a) RBI was nationalised in 1949 on the
basis of the Reserve Bank of India (Transfer
to Public Ownership) Act, 1948.
Q. 130. Which of the following is the apex
banking institution of India that regulates
the monetary policy?
(a) Reserve Bank of India
(b) Axis Bank
(c) State Bank of India
(d) Bank of India
Sol. (a) Reserve Bank of India is the apex
banking institution of India that regulates
the monetary policy.
Q. 131. Which of the following banks prints
the currency notes in India?
(a) NABARD
(b) ICICI Bank
(c) State Bank of India
(d) Reserve Bank of India
Sol. (d) Reserve Bank of India prints the
currency notes in India.
Q. 132. Who among the following
formulates the monetary policy in India ?
(a) Reserve Bank of India
(b) NITI Aayog
(c) Finance Commission of India
(d) The Ministry of Statistics and
Programme Implementation
Sol. (a) Reserve Bank of India is responsible
for formulating the monetary policy in
India.
Q. 133. Reserve Bank of India, which acts as
a banker to the Central Government, was
established on:
(a) 1st April 1935 (b) 1st April 1948
(c) 1st April 1950 (d) 1st April 1945
Sol. (a) 1st April 1935 , Reserve Bank of
India, which acts as a banker to the Central
Government, was established on 1st April
1935, in accordance with the provisions of
the Reserve Bank of India Act, 1934.
Q. 134. Which section of the RBI Act
empowers the Central Government to
supersede the RBI board and issue
directions considered to be ‘necessary in
public interest’ to the RBI, after consulting
the Governor of the bank?
(a) Section 5 (b) Section 7
(c) Section 3 (d) Section 1
Sol. (b) Section 7 , The Section 7 of the RBI
Act empowers the government to give
directions to the central bank on matters of
public interest.
Q. 135. The Coinage Act, 2011, allows issue
of coins up to the denomination of ₹______
in India.
(a) 1,000 (b) 500
(c) 100 (d) 5,000
Sol. (a) 1,000 , The Coinage Act, 2011,
allows issue of coins up to the
denomination of ₹ 1000 in India. Coins in
India are minted as per the Coinage
Act,2011. RBI prints the currency notes as
per the provisions of the Reserve Bank of
India, Act 1934.
Q. 136 I-Sprint’21 is a FinTech Hackathon
Series launched by ?
(a) RBI (b) SEBI
(c) NPCI (d) IFSCA
Sol. (d) The International Financial Services
Centres Authority (IFSCA) along with GIFT
city has launched the FinTech Hackathon
Series named “I-Sprint’21”. The first series
of the Hackathon is “Sprint01: BankTech”
with a special focus on Banking. The IFSCA
was established in April 202 under the
provision of the IFSCA Act 2019. It is
headquartered at GIFT City – Gandhinagar.
Q. 137. Where is the corporate office of RBL
Bank located?
(a) Patna (b) Mumbai
(c) Srinagar (d) Bengaluru
Sol. (b) The corporate office of RBL Bank is
located in Mumbai. RBL Bank, formerly
known as Ratnakar Bank, is an Indian
private sector bank headquartered in
Mumbai. It was founded in 1943.
Q. 138. Which of the following is one of the
three 'Domestic Systemically Important
Banks' in India?
(a) State Bank of India (SBI)
(b) Federal Bank
(c) RBL Bank
(d) Axis Bank
Sol.(a) State Bank of India (SBI) is one of
the three 'Domestic Systemically Important
Banks' (D-SIB) in India. Systemically
important banks are considered as “too big
to fail”. These banks are large in size and
have complex judicial systems. SBI, ICICI
Bank and HDFC Bank are D-SIBs, which
means that the distress or failure of these
banks will have an impact on the domestic
economy.
Q. 139. What do you call the amount of
monetary or other returns, either earned or
unearned, accruing over a period of time?
(a) Price (b) Value
(c) Services (d) Income
Sol. (d) The amount of monetary or other
returns, either earned or unearned,
accruing over a period of time is called
Income. There are three types of income-
earned, portfolio and passive. Earned
income consists of income you earn while
you are working a full-time job or running a
business. Passive income is income earned
from rents, royalties, and stakes in limited
partnerships. Portfolio income is income
from dividends, interest, and capital gains
from stock sales.
Q. 140. ______ is an alphanumeric code
that uniquely identifies a bank-branch
participating in the NEFT system.
(a) IFSC (b) STP
(c) SFMS (d) RTGS
Sol. (a) IFSC is an alphanumeric code that
uniquely identifies a bank branch
participating in the NEFT system. Indian
Financial System Code (IFSC) is a unique
eleven-digit number that is a combination
of alphabets and numerals. It is used to
transfer funds online for NEFT, IMPS, and
RTGS transactions.
Q. 141. Which of the following hills is
situated in Assam ?
(a) Aravali Hills
(b) Karbi Anglong Hills
(c) Javadi Hills
(d) Shevaroy Hills
Sol. (b) Karbi Anglong Hills is situated in
Assam situated in the Karbi Anglong district
of central Assam.
Q. 142. What happens to Indian exports
when Indian rupee is devalued ?
(a) Export prices fluctuate
(b) Exports become cheaper
(c) Export prices remain stable
(d) Exports become dearer
Sol. (b) A fall in the value of any country's
currency is not negative in every situation.
A fall in the value of a currency makes
imports of that country expensive and its
exports cheap.
Q. 143. Which of the following is used as a
primary means of implementing the
monetary policy of the Reserve Bank of
India ?
(a) Repo rate
(b) Call money
(c) Mumbai Interbank Offer Rate
(d) Promissory notes
Sol. (a) Repo Rate is used as a primary
means of implementing the monetary
policy of the Reserve Bank of India. A
repurchase agreement, also known as a
repo, RP, or sale and repurchase
agreement, is a form of short-term
borrowing, mainly in government securities.

Q. 144. Ministry of Finance introduced a
new form called Form 26AS for:
(a) school admission application
(b) taxpayers
(c) e-Visa application
(d) job application
Sol. (b) Form 26AS is introduced by the
Ministry of Finance for taxpayers. It is an
annual statement that includes all the
details about the tax deducted at the
source, information regarding the tax
collected by your collectors, and
information regarding the refund you have
received over a financial year.
Q. 145. The concept of fiscal policy is based
fundamentally on the ideas of ______.
(a) Warren Buffett
(b) Elinor Ostrom
(c) John Maynard Keynes
(d) Milton Friedman
Sol. (c) Fiscal policy is largely based on the
ideas of British economist John Maynard
Keynes. who argued that economic
recessions are due to a deficiency in the
consumer spending and business
investment components of aggregate
demand.
Q. 146. The legal provisions governing the
management of foreign exchange reserves
are laid down in the Reserve Bank of India
Act, ______.
(a) 1947 (b) 1971
(c) 1923 (d) 1934
Sol. (d) Reserve Bank of India Act, 1934 laid
down the legal provisions governing the
management of foreign exchange reserves.
Q. 147. What is the meaning of the term
'collateral' in the context of the banking
system ?
(a) Collateral is an asset of the government
that is used for the protection of
consumers.
(b) Collateral is an asset that a borrower
owns and uses this as a guarantee to a
lender until the loan is repaid.
(c) Collateral is an asset that a borrower
took as a loan.
(d) Collateral is an asset that the
government provides to farmers.
Sol. (b) Collateral is an asset that a
borrower owns and uses this as a guarantee
to a lender until the loan is repaid.
Q. 148. In which of the following years did
the Reserve Bank of India liberalise the
licensing policy for Urban Co-operative
Banks?
(a) 1993 (b) 1998
(c) 1995 (d) 2001
Sol .(a) RBI liberalized the licensing policy
for Urban Co-operative Banks in 1993.
Q. 149. In which of the following years did
the Government of India set up the
Monetary Policy Committee?
(a) 2008 (b) 2019
(c) 2010 (d) 2016
Sol. (d) The Reserve Bank of India Act, 1934
was amended by Finance Act (India), 2016
to constitute MPC which will bring more
transparency and accountability in fixing
India's Monetary Policy. The committee is
answerable to the Government of India if
the inflation exceeds the range prescribed
for three consecutive quarters.
Q. 150. Which of the following is the correct
definition of bank rate?
(a) It is the rate of interest payable by
commercial banks to RBI.
(b) It is the rate of interest payable by a
scheduled bank at which RBI lends
overnight.
(c) It is the rate of interest payable by a
consumer to commercial banks.
(d) It is the rate of interest payable by RBI
to commercial banks.
Sol. (a) It is the rate of interest payable by
commercial banks to RBI.
Q. 151. The mutual funds industry in India is
regulated by which of the following
organisations?
(a) IRDA and IFCI
(b) SEBI and RBI
(c) NITI Aayog and IIFCL
(d) Ministry of Commerce and SIDBI
Sol. (b) The mutual funds in India are
regulated by the Securities and Exchange
Board of India (SEBI) and the Reserve Bank
of India (RBI).
Q. 152. The total liability of the monetary
authority of the country, Reserve Bank of
India, is called:
(a) Hot money
(b) Grey money
(c) Cold cash
(d) High powered money
Sol. (d) The total liability of the monetary
authority of the country is called the
monetary base or high powered money.
Q. 153. Which of the following statements
about the Reserve Bank of India is
INCORRECT ?
(a) In 1931, the Indian Central Banking
Enquiry Committee revived the issue of the
establishment of the Reserve Bank of India
as the Central Bank for India.
(b) The Reserve Bank of India commenced
operations in 1935.
(c) In 1929, the Hilton Young Commission
recommended the establishment of a
central bank to be called the 'Reserve Bank
of India'.
(d) The Reserve Bank of India Act was
enacted in 193(d)
Sol. (c) In 1929, the Hilton Young
Commission recommended the
establishment of a central bank to be called
the 'Reserve Bank of India'. This statement
is INCORRECT about the Reserve Bank of
India. The Royal Commission on Indian
Currency (Hilton Young Commission)
recommended the establishment of a
central bank to be called the 'Reserve Bank
of India' in 1926.
Q. 154. The ______ was nationalised in the
year 1949.
(a) Union Bank of India
(b) Reserve Bank of India
(c) Central Bank of India
(d) Imperial Bank of India
Sol. (b) The Reserve Bank of India was
nationalized in the year 1949. The Reserve
Bank of India was nationalized with effect
from 1st January 1949 on the basis of the
Reserve Bank of India Act, 1948.
Q. 155. To which of the following sectors of
the economy do Basel III norms belong ?
(a) Banking (b) Capital market
(c) Automobile (d) Aviation
Sol. (a) Basel III norms of economy belong
to the Banking sector. Basel III is the
regulatory norm for setting common
standards for banks across different
countries. The motive of Basel III norms is
to enhance the regulation, supervision, and
risk management in the banking industry.
Q. 156. Which of the following is NOT a
public sector insurance company ?
(a) United India Insurance Company
Limited
(b) The New India Assurance Company
Limited
(c) SBI Life Insurance
(d) General Insurance Corporation of India
Sol. 8.(c) SBI Life Insurance is NOT a public
sector insurance company. SBI Life
Insurance is a joint venture life insurance
company between State Bank of India (SBI),
the largest state-owned banking and
financial services.
Q. 157. The 'Clean Note Policy' was
announced by the Reserve Bank of India in
the year ______.
(a) 1992 (b) 1999
(c) 1997 (d) 1995
Sol. (b) The 'Clean Note Policy' was
announced by the Reserve Bank of India in
the year 1999. The objective of the Reserve
Bank's Clean Note Policy is to give the
citizens good quality currency notes and
coins while the soiled notes are withdrawn
out of circulation. In 2002, under the clean
note policy, the RBI advised banks to stop
stapling currency notes.
Q. 158. What is the minimum amount
which can be remitted through Real Time
Gross Settlement (RTGS)?
(a) ₹2,00,000 (b) ₹3,00,000
(c) ₹5,00,000 (d) ₹1,00,000
Sol.(a) ₹2,00,000 is the minimum amount
that can be remitted through Real Time
Gross Settlement (RTGS). The term real-
time gross settlement (RTGS) refers to a
funds transfer system that allows for the
instantaneous transfer of money and/or
securities
Q. 159. A paper instructing the bank to pay
a specific amount from a person's account
to another person in whose name it has
been issued is known as:
(a) cash (b) cheque
(c) passbook (d) currency
Sol. (b) A paper instructing the bank to pay
a specific amount from a person's account
to another person in whose name it has
been issued is known as a cheque.
Q. 160. Which of the following is a
comprehensive and in-depth analysis of a
country’s financial sector, done jointly by
the World Bank and IMF in developing and
emerging market countries ?
(a) Evaluation and Monitoring of the
Financial Sector
(b) Developing Economies Financial Audit
Scheme
(c) Financial Sector Assessment Program
(d) Finance and Socio Economic Audit
Scheme
Sol. (c) Financial Sector Assessment
Program is a comprehensive and in-depth
analysis of a country’s financial sector, done
jointly by the World Bank and IMF in
developing and emerging market countries.
Q. 161. Which of the following statements
is NOT true?
(a) Fiscal policy deals with the supply of
money in the economy and the rate of
interest.
(b) Fiscal policy includes tax policy,
expenditure policy, investment or
disinvestment strategies and debt or
surplus management.
(c) Fiscal policy is linked with general
economic policy strategy of the country.
(d) The government deals with fiscal policy.
Sol. (a) Fiscal policy deals with the supply of
money in the economy and the rate of
interest. This statement is NOT true. Fiscal
policy deals with taxation and government
spending and is often administered by a
government department; while monetary
policy deals with the money supply, interest
rates and is often administered by a
country's central bank.
Q. 162. In which year was the Reserve Bank
of India established ?
(a) 1942 (b) 1932
(c) 1947 (d) 1935
Sol. (d) The Reserve Bank of India was
established in 1935. The Central Office of
the Reserve Bank was initially established in
Kolkata but was permanently moved to
Mumbai in 1937.
Q. 163. In the context of the banking sector
in India, what does 'G' stand for in 'RTGS' ?
(a) Gradual (b) Grand
(c) Gross (d) Gain
Sol. (c) In the context of the banking sector
in India, RTGS stands for Real-Time Gross
Settlement. It is the process of continuous
(real-time) settlement of funds, which
occurs individually, on an order by order
basis, without netting. In other words, your
request to transfer or settle funds is carried
out immediately, instead of the same
happening in batches (as is the case in
NEFT).
Q. 164. In which year was the Securities
Appellate Tribunal (SAT) established in
India?
(a) 1990
(b) 1992
(c) 1994
(d) 1997
Sol. (b) The Securities Appellate Tribunal
(SAT) was established in 1992 in India.
Securities Appellate Tribunal was mainly
established to hear an appeal against the
order passed by the SEBI (Securities and
Exchange Board of India) or by an
adjudicating officer under the SEBI Act. It is
a three-member tribunal and is currently
headed by Justice Tarun Agarwala, former
Chief Justice of the Meghalaya High Court.
Q. 165. The Central Board of Directors of
the RBI (Reserve Bank of India) is
appointed/nominated for a period of _____
years.
(a) five (b) six
(c) three (d) four
Sol. (d) The Central Board of Directors of
the RBI (Reserve Bank of India) is
appointed/nominated for a period of four
years. RBI is India's central bank and
regulatory body under the jurisdiction of
Ministry of Finance. It is responsible for the
issue and supply of the Indian rupee and
the regulation of the Indian banking system.
Q. 166. In which year was the State Bank of
India created following the passage of the
Imperial Bank of India into state ownership
? Ramanan, (Chairman & MD).
(a) 1947 (b) 1965
(c) 1955 (d) 1950
Sol. (c) The State Bank of India created
following the passage of the Imperial Bank
of India into state ownership in 1955.
Q. 167. With which of the following
functions of a bank would you associate the
term 'collateral' ?
(a) Accepting deposits
(b) Portfolio management
(c) Collection of cheques
(d) Granting loans and advances
Sol. (d) Granting loans and advances are the
functions of a bank would you associate the
term 'collateral'. Collateral is property or
something valuable that you agree to give
to somebody if you cannot pay back money
that you have borrowed.
Q. 168. What is the full form of SIDBI ?
(a) Service Industries Development Bank of
India
(b) Service Investment Development Bank
of India
(c) Small Investment Development Bank of
India
(d) Small Industries Development Bank of
India
Sol.(d) The full form of SIDBI is the Small
Industries Development Bank of India. SIDBI
is the Primary Financial Institution for
promoting, developing, and financing
MSME (Micro, Small, and Medium
Enterprise) sector. Founded: 2 April 1990,
Headquarters: Lucknow, Sivasubramanian
Q. 169. Which of the following helps
borrowers to overcome the problem of lack
of collateral?
(a) Civil Societies
(b) Self Help Groups
(c) Pressure Groups
(d) Non-Governmental Organizations
Sol. (b) Self Help Groups help borrowers to
overcome the problem of lack of collateral.
Members can take small loans from the
group itself to meet their needs without any
collateral.
Q. 170. Which of the following is NOT an
instrument of the monetary policy of the
Reserve Bank of India?
(a) Liquidity Adjustment Facility (LAF)
(b) Repo rate
(c) Goods and Services Tax (GST)
(d) Cash Reserve Ratio (CRR)
Sol. (c) Instruments of RBI to control
monetary policy: Cash Reserve Ratio,
Statutory Liquidity Ratio, Bank Rate, Repo
Rate, Reverse Repo Rate, and Open Market
Operations. Goods and Service Tax (GST) is
levied on the supply of goods and services.
The tax came into effect on 1 July 2017. The
GST council has fitted over 1300 goods and
500 services under four tax slabs of 5%,
12%, 18%, and 28% under GST. RBI controls
the inflation and liquidity in the economy.
Q. 171. The Reserve Bank of India also
acted as the central bank for _______ till
April 1947.
(a) Burma (b) Nepal
(c) Bhutan (d) Sri Lanka
Sol. (a) The Reserve Bank of India also acted
as the central bank for Burma till April 1947.
Burma (Myanmar) seceded from the Indian
Union in 1937 but the Reserve Bank
continued to act as the Central Bank for
Burma till the Japanese Occupation of
Burma.
Q. 172. In which year was the National Bank
for Agriculture and Rural Development Bank
(NABARD) established ?
(a) 1952 (b) 1962
(c) 1982 (d) 1972
Sol. (c) In 1982 the National Bank for
Agriculture and Rural Development Bank
(NABARD) was established. The major
functions of NABARD include promotion
and development, refinancing, financing,
planning, monitoring, and supervision.
Agency Executive(DEC 2021)- Harsh Kumar
Bhanwala( Chairperson). It is under the
jurisdiction of the Ministry of Finance,
Government of India. The headquarters is in
Mumbai.
Q. 173. In which year was the National Bank
for Agriculture and Rural Development Bank
(NABARD) established?
(a) 1952 (b) 1962
(c) 1982 (d) 1972
Sol. (c) In 1982 the National Bank for
Agriculture and Rural Development Bank
(NABARD) was established. The major
functions of NABARD include promotion
and development, refinancing, financing,
planning, monitoring, and supervision.
Agency Executive(DEC 2021)- Harsh Kumar
Bhanwala( Chairperson). It is under the
jurisdiction of the Ministry of Finance,
Government of India. The headquarters is in
Mumbai.
Q. 174. Which aspect of the financial
system do the Basel Norms focus on?
(a) Share market
(b) Insurance
(c) Banking
(d) Commodity market
Sol. (c) Basel norms or Basel accords are the
international banking regulations issued by
the Basel Committee on Banking
Supervision.
Q. 175. To which of the following countries
did the Export-Import Bank of India extend
a $250 million line of credit for improving
power supply quality in the country?
(a) Nepal (b) Mozambique
(c) Bangladesh (d) Sri Lanka
Sol. (b) Export-Import Bank of India
extended a $250 million line of credit for
improving power supply quality in the
country of Mozambique. Mozambique
Capital- Maputo, Currency- Mozambican
metical.
Q. 176. The fiscal policy helps the
government of a country to control the flow
of ..
(a) equity market
(b) angel investment
(c) personal expenditure
(d) tax revenues
Sol. (d) Fiscal policy helps the government
of a country to control the flow of tax
revenues. Governments typically use fiscal
policy to promote strong and sustainable
growth and reduce poverty.
Q. 177. In which of the following years was
the Reserve Bank of India nationalized ?
(a) 1935 (b) 1949
(c) 1927 (d) 1965
Sol. (b) The Reserve Bank of India was
nationalized with effect from 1st January
1949 on the basis of the Reserve Bank of
India (Transfer to Public Ownership) Act,
1948. The Reserve Bank of India was set up
on the basis of the recommendations of the
Hilton Young Commission. Founded on 1st
April 1935 at Kolkata. Headquarters-
Mumbai. Present RBI Governor- Shaktikanta
Das. Sir Osborne Smith was the first
Governor of the Reserve Bank.
Q. 178. Which of the following statements
is NOT true about the Export-Import Bank
of India (EXIM BANK)?
(a) Its main objective is to provide financial
assistance to promote Indian exports
(b) It is a premier export finance institution
of India.
(c) The Bank provides assistance in helping
Indian firms in their globalization efforts
(d) It was established in 2014 under the
Export-Import Bank of India Act
Sol. (d) It was established in 2014 under the
Export- Import Bank of India Act. Export–
Import Bank of India is a finance institution
in India, established in 1982 under Export-
Import Bank of India Act 1981. Since its
inception, Exim Bank of India has been both
a catalyst and a key player in the promotion
of cross border trade and investment.
Q. 179. Which of the following banks is NOT
a public sector bank?
(a) Jammu and Kashmir Bank Ltd
(b) Canara Bank
(c) State Bank of India
(d) IndusInd Bank
Sol. (d) Indusind Bank , Public Sector Banks
(PSBs) are a major type of bank in India,
where a majority stake (i.e. more than 50%)
is held by a government. The shares of
these banks are listed on stock exchanges.
There are a total of 18 Public Sector Banks
alongside 1 state-owned Payments Bank in
India.
Q. 180. The currency printing press of India
is NOT located in___.
(a) Dewas (b) Kochi
(c) Mysore (d)Salboni
Sol. (b) Kochi All Indian currency notes are
printed in the RBI’s currency printing press
centers. At the current time there are four
currency printing presses in India worked
under RBI. These are Currency Note Press,
Nashik (Maharashtra) Bank Note Press,
Dewas(Madhya Pradesh), Bharatiya Reserve
Bank Note Mudran Pvt. Ltd. Maysor
(Karnatak), Salboni (West Bengal)
Q. 181. Which of the following is NOT a
nationalized bank?
(a) South Indian Bank
(b) Syndicate Bank
(c) Canara Bank
(d) Vijaya Bank
Sol. (a) South Indian Bank Limited (SIB) is a
major private sector bank headquartered at
Thrissur in Kerala, India. South Indian Bank
has 857 branches, 4 service branches, 54
ext. counters and 20 Regional Offices
spread across more than 27 states and 3
union territories in India.
Q. 182.The Banking Regulation Act was
passed in India in _________.
(a) 1949 (b) 1974
(c) 1965 (d) 1951
Sol. (a) 1949, The Banking Regulation Act,
1949 is a legislation in India that regulates
all banking firms in India. Passed as the
Banking Companies Act 1949, it came into
force from 16 March 1949 and changed to
Banking Regulation Act 1949 from 1 March
1966.
Q. 183.The Interest Rate charged by banks
on short term to their largest, most secure,
and most creditworthy customers is called
_______
(a) Prime Lending Rate
(b) Amortised Rate
(c) Discount Rate
(d) Variable Rate
Sol. (a) Prime Lending Rate , A prime rate or
prime lending rate is an interest rate used
by banks, usually the interest rate at which
banks lend to favored customers—i.e.,
those with good credit. Some variable
interest rates may be expressed as a
percentage above or below the prime rate.
Q. 184. Cash Reserve Ratio (CRR) is
calculated as a percentage of each bank’s
___.
(a) rate of inflation
(b) net demand and time liabilities
(c) credit growth
(d) savings of customers
Sol. (b) Net demand and time liabilities ,
The cash reserve Ratio (CRR) is the total
fund that the banks have to keep with the
RBI all the time. If the RBI decides to
increase the CRR, the available liquidity of
the market comes down. The RBI uses the
CRR to drain out excessive money from the
system.
Q. 185. In the context of the banking sector
of India, what is the full form of IMPS ?
(a) Instant Payment Service
(b) Instant Payment Sector
(c) Immediate Payment Sector
(d) Immediate Payment Service
Sol. (d) Immediate Payment Service ,
Immediate Payment Service (IMPS) is an
instant payment inter-bank electronic funds
transfer system in India. IMPS offers an
inter-bank electronic fund transfer service
through mobile phones.
Q. 186. Which of the following terms refer
to the running down or payment of a loan
in installments?
(a) Discounted Cash Flow
(b) Credit Creation
(c) All
(d) Amortisation
Sol. (d) Amortisation , In business,
amortization refers to spreading payments
over multiple periods. The term is used for
two separate processes: amortization of
loSol and amortization of assets. In the
latter case it refers to allocating the cost of
an intangible asset over a period of time.
Q. 187. Which of the following banks was
authorised to issue Electoral Bonds ?
(a) State Bank of India
(b) HDFC Bank
(c) ICICI Bank
(d) Corporation Bank
Sol. (a) State Bank of India , At 29
authorised Branches of SBI were allowed to
use and encash the electoral bonds in the
months of March, April and May 2019.
Q. 188. In which year was the State
Financial Corporation Act passed ? The Act
provides for the establishment of state
financial corporations.
(a) 1972 (b) 1983
(c) 1951 (d) 1947
Sol. (c) 1951 , STATE FINANCIAL
CORPORATION ACT, 1951. An Act to provide
for the establishment of State Financial
Corporations. The Union Parliament passed
the State Financial Corporation Act on
September 28, 1951 empowering the state
governments to establish financial
corporations for their respective regions.
Q. 189. Which committee was appointed to
give a detailed report on the Non
Performing Assets of the Public Sector
Banks ?
(a) Malegam Committee
(b) Srikrishna Committee
(c) Pannir Selvam Committee
(d) Mandal Committee
Sol. (c) Pannir Selvam Committee , The
Pannir Selvam Committee was appointed to
provide a detailed explanation on the non
performing assets.Non Performing Assets is
a loan according to the Reserve bank of
India that is overdue from more than 90
Days.
Q. 190. Which one of the following is a
monetary principle stating that “Bad money
drives out good” ?
(a) Pareto Efficiency
(b) The multiplier effect
(c) Marshall’s scissors analysis
 (d) Gresham’s Law
Sol. (d) Gresham’s Law , In economics,
Gresham's law is a monetary principle
stating that "bad money drives out good".
For example, if there are two forms of
commodity money in circulation, which are
accepted by law as having similar face
value, the more valuable commodity will
gradually disappear from circulation.
Q. 191. Which one of the following is
defined as “The proportion of highly liquid
assets held by financial institutions, to
ensure their ongoing ability to meet short-
term obligations?
(a) Liquidity Coverage Ratio
(b) Base Rate
(c) Statutory Liquidity Ratio
(d) Cash Reserve ratio
Sol. (a) Liquidity coverage ratio (LCR) The
liquidity coverage ratio is the cash held by
the bank to meet the shortage of the
market lasting food as long as 30 days.
During the period of stress in the market
bank can compensate with Liquidity
coverage Ratio.
Q. 192. The responsibility of regulating and
supervising primary (urban) cooperative
banks, which are popularly known as Urban
Cooperative Banks(UCBs) is vested with
which one of the following ?
(a) The Department of Non-Banking (b) The
Urban Banks Department of the Reserve
Bank of India
(c) State Co-operative Banks
(d) The Department of Corporate Services
of the Reserve Bank of India.
Sol. (b) The Urban Banks Department of the
Reserve Bank of India , Urban Banks
Department functions in close coordination
with other regulators viz., RCSs and CRCS.
The Banking Regulation Act, 1949(AACS)
provides for submission of periodical
returns by UCBs to the Reserve Bank of
India.
Q. 193. The rate of interest on which
commercial banks borrow money from RBI
to meet their short term credit needs is
known as:
(a) Sub- Prime Lending Rate
(b) Statutory Lending Rate
(c) Prime Lending Rate
(d) Bank Rate
Sol. (d) Bank Rate , A bank rate is the
interest rate at which a nation's central
bank lends money to domestic banks, often
in the form of very short-term lo Sol.
Managing the bank rate is a method by
which central banks affect economic
activity.
Q. 194. In the context of the banking
system in India, what does IFSC stand for ?
(a) Indian Financial Structural Code
(b) Indian Functional System Calculation
(c) Indian Financial System Code
(d) Indian Financial Social Code
Sol.(c) IFSC (Indian Financial System Code) is
an 11-digit alphanumeric code that helps to
identify different bank branches that deal
with online fund transfer either via NEFT
(National Electronic Funds transfer ), IMPS
(Immediate Payment Service) or RTGS (Real
Time Gross Settlement). First four
characters of the IFSC code are letters
which indicate the name of the bank and
the other seven are digits.
Q. 195. With reference to Banking System
of India, what does NEFT stand for ?
(a) National Equity Finance transactions
(b) National Equity Funds transactions
(c) National Electronic Finance Transfer
(d) National Electronic Fund Transfer
Sol. (d) ) National Electronic Funds Transfer
is an electronic funds Transfer system
maintained by the Reserve Bank of India.
Started in November 2005, the setup was
established and maintained by the Institute
for Development and Research in Banking
Technology.
Q. 196. In context of Banking system in
India what is the fullform of RTGS?
(a) Real Time Gross Settlement
(b) Random Time Gross Settlement
(c) Real Time Gain Settlement
(d) Reel Time Gain Settlement
Sol. (a) Real-Time Gross Settlement . The
term real-time gross settlement (RTGS)
refers to a funds transfer system that allows
for the instantaneous transfer of money
and/or securities.
Q. 197. RBI does not transfer olact the
business of which of the following State
governments?
(a) Bihar
(b) Jammu and Kashmir
(c) Telangana
(d) Meghalaya
Sol. (b)Jammu and Kashmir , State
Government transactions are carried out by
RBI in terms of the agreement entered into
with the State Governments in terms of
section 21A of the Act. As of now, such
agreements exist between RBI and all the
State Governments except with the
Governments of Jammu and Kashmir and
Sikkim.
Q. 198. Who among the following was NOT
a Governor of the Reserve Bank of India ?
(a) Manmohan Singh
(b) Sunil Arora
(c) Urjit Patel
(d) Raghuram Rajan
Sol. (b) Sunil Arora is the current and 23rd
Chief Election Commissioner of India. He is
also the chairman for Association of World
Election Bodies.
Q. 199. How many digits are there on a
debit card?
(a)15 (b)16 (c)14 (d)17
Sol. (b) On the front face of the debit card,
a 16 digits' code is written. First 6 digits are
Bank Identification Number and the rest 10
digits are Unique Account Number of the
card holder.
Q. 200. In India, Monetary policy is formed
by _____ .
(a) Central Government
(b) SBI
(c) Various Banks
(d) Reserve Bank of India
Sol. (d) Reserve Bank of India , The RBI
implements the monetary policy in India.
There are three main tools of monetary
policies are reserve requirement, discount
rate, and open market operation.
Q. 201. ’Rani ki vav’ motif is present on
which of the following currency notes ?
(a) 50 Rupee Note
(b) 200 Rupee Note
(c) 10 Rupee Note
(d) 100 Rupee Note
Sol. (d) 100 Rupee Note A 100 rupee note
has ‘Rani ki Vav’ printed at its backside. It is
a UNESCO World Heritage site in Gujarat.
200 rupee note has Sachi stupa.10 rupee
note has Konark Temple , 50 rupee note has
Hampi
Q. 202.Which of the following is working
capital?
(a) Building (b) Money
(c) Machine (d) Tool
Sol. (b) In financial speak, working capital is
the Current Assets and the current
Liabilities. Working capital is in the form of
cash, Short term debit or inventory.
Q. 203. India’s foreign reserves does NOT
consist of which of the following ?
(a) Gold
(b) Carbon Bonds
(c) Reserve Tranche Position (RTP)
(d) Special Drawing Rights (SDR)
Sol. (b) Carbon Bonds, Forex reserves
consist of foreign currency assets, Special
drawing rights, gold and reserve position in
the IMF. Carbon copy is absent in the Forex
reserve.
Q. 204. Which of them is not a nationalist
bank?
(a) Allahabad Bank
(b) Bandhan Bank
(c) Punjab National Bank
(d) Dena Bank
Sol. (b) Bandhan Bank is not a nationalized
bank, it is a private bank, similar to ICICI
Bank, HDFC, AXIS etc. Currently there are 19
nationalised banks in India as per the RBI.
Nationalization refers to the Transfer of
public sector assets to be operated or
owned by the state or central government.
Q. 205.Who is the founder of Indian
Overseas Bank ?
(a) M. Chidambaram Chettyar
(b) V.G. Kale
(c) Devkaran Nanjee
(d) Rana Kapoor
Sol. (a) M. Chaidambaram chetttar was the
founder of the Indian overseas bank. On 10
February 1937, he founded the Indian
Overseas Bank, With the initiative to
improve the country’s industrial sector. It is
headquartered in Chennai, India.
Q. 206.Who decides repo rate, reverse repo
rate and bank rate ?
(a) SEBI
(b) NABARD
(c) Reserve Bank of India
(d) SBI
Sol. (c) Reserve Bank of India , The
monetary policies are regulated by the
Reserve bank of India. These policies
include Repo rate, Reverse Repo rate, Bank
Rate. by these rates RBI use to maintain the
flow of the liquidity in the market.
Q. 207. Which central agency issues
currency notes on behalf of the Central
Government ?
(a) IRDA
(b) SEBI
(c) Reserve Bank of India
(d) State Bank of India
Sol. (c) Reserve Bank of India , The currency
notes on behalf of the Central Government
are issued by the Reserve Bank of India
(RBI) only.
Q. 208.Which Index is used by RBI to decide
repo rate and measure Inflation?
(a) CPI-Rural (b) CPI-Combined
(c) IIP (d) WPI
Sol. (d) WPI , The Reserve Bank of India
(RBI) primarily used WPI inflation for the
formulation of monetary policy under
monetary targeting framework as well as
under multiple indicator approach (MIA)—
although inflation measured by other
indices was also monitored/ analysed.
Q. 209. Who acts as Banker to the Indian
Government ?
(a) International Monetary Fund
(b) Reserve Bank of India
(c) World Bank
(d) State Bank of India
Sol. (b) The Reserve Bank of India is known
as the Banker’s bank. It is the bank from
which the Government borrows during the
time of deficit. RBI also has the
responsibility to maintaining the monetary
policies and currency printing throughout
the India
Q. 210.Which department is the nodal
department for overseeing the public
financial management system in the Central
govt of India?
(a)Department of Expenditure
(b)Department of Revenue
(c)Department of Financial Services
(d)Department of Economic Affairs
Sol. (a) Department of Expenditure The
Department of Expenditure is the nodal
Department for overseeing the public
financial management system in the Central
Government and matters connected with
State finances.
Q. 211. Which of the following Monetary
policy tools is used by RBI to control
inflation ?
(a)Fiscal Drag
(b)Parsimoniousness Measures
(c)Repo Rate
(d)Fiscal Boost
Sol. (c)Repo Rate Repo rate is the rate at
which RBI lends to its clients generally
against government securities. Reduction in
repo rate helps the commercial banks to get
money at a cheaper rate and increase in
repo rate discourages the commercial banks
to get money as the rate increases and
becomes expensive.
Q. 212. If RBI increases Repo Rate, then
what may be its impact on the Indian
Economy?
(a) Inflation will reduce
 (b) Inflation will increase
(c) Reverse Repo Rate will decrease
(d) Credit will be cheaper
Sol. (a) Inflation will reduce , If the repo
rate is increased then the commercial bank
will not take borrow from the RBI thus the
liquidity of the market will go down
resulting in an increase of inflation.
Q. 213.How many members are there in the
Indian Monetary Policy Committee?
(a) 6 (b) 5 (c) 21 (d) 3
Sol. (a) 6 , The meetings of the Monetary
Policy Committee are held at least 4 times a
year and it publishes its decisions after each
such meeting. The committee comprises six
members - three officials of the Reserve
Bank of India and three external members
nominated by the Government of India.
Q. 214. In the older monetary system of
India, ‘One Anna’ used to be what part of
‘One Rupee’?
(a) 16th Part of a Rupee
(b) 20th part of a Rupee
(c) 10th Part of a Rupee
(d) Sixth part of a Rupee
Sol .(a) 16th Part of a Rupee , An anna (or
ānna) was a currency unit formerly used in
British India, equal to 1 ⁄ 16 of a rupee. It
was subdivided into four (old) Paisa or
twelve pies (thus there were 192 pies in a
rupee). When the rupee was decimalised
and subdivided into 100 (new) paise, one
anna was therefore equivalent to 6.25
paise.
Q. 215. Which of the following is a
nationalized bank in India ?
(a) Axis Bank
(b) State Bank of India
(c) ICICI Bank
(d) Yes Bank
Sol. (b) State Bank of India , The Central
Bank of India - RBI, in its official website has
listed the following 19 banks as nationalized
banks. The major nationalized banks in
India are State Bank of India (SBI), Punjab
National Bank (PNB), Bank of Baroda (BOB),
Canara Bank, Union Bank of India and so on.
Q. 216.The percentage of deposits that a
bank must keep as cash reserves with itself
is known as ______.
(a) Liquidity Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Capital Output Ratio
(d) Cash Reserve Ratio
Sol. (d) Cash Reserve Ratio (CRR) is a
specified minimum fraction of the total
deposits of customers, which commercial
banks have to hold as reserves either in
cash or as deposits with the central bank.
CRR is set according to the guidelines of the
central bank of a country.
Q. 217. On which rate does the Reserve
Bank of India provide loSol to the
commercial banks ?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Penalty Rate
(d) Bank Rate
Sol. (d) Bank Rate , A bank rate is the
interest rate at which a nation's central
bank lends money to domestic banks, often
in the form of very short-term loans.
Managing the bank rate is a method by
which central banks affect economic
activity.
Q. 218. Which of the following options is
NOT correct about the Payment Banks ?
(a) Giving loSol to the primary sector is not
mandatory
(b) CRR /SLR requirements should be
fulfilled
(c) Credit Cards can be issued
(d) No NRI deposits
Sol. (c) Credit Cards can be issued , Payment
banks cannot lend or offer credit advance
to customers like traditional banks. They
can issue cheque books and debit cards but
not credit cards. Also, unlike traditional
banks, you can keep a limited sum in a
payment bank account, currently capped at
Rs 1 lakh per account.
Q. 219. Who is the Chairman of the
Monetary Policy Committee ?
(a) Finance Minister of India
(b) President of India
(c) Governor of the Reserve Bank of India
(d) Prime Minister of India
Sol. (c) Governor of the Reserve Bank of
India , The composition of the current and
first monetary policy committee is as
follows: Governor of the Reserve Bank of
India – Chairperson, ex officio - Shaktikanta
Das. Deputy Governor of the Bank, in
charge of Monetary Policy—Member, ex
officio - BP Kanungo.
Q. 220. Which of the following is not
considered as a valid currency ?
(a) Gold
(b) Demand Draft
(c) Currency
(d) Coin
Sol. (a) Gold , Demand draft, Currency coin
all are the legal form of currency. Even
though gold is no longer used as a primary
form of currency in developed nations, it
continues to have a strong impact on the
value of those currencies.
Q. 221.Which central institution in India
monitors and regulates agricultural credit ?
(a) SEBI (b) NABARD
(c) IRDA (d) RBI
Sol. (b) NABARD is an Development Bank
authorised for providing and regulating
credit and other facilities for the promotion
and development of agriculture, small-scale
industries, cottage and village industries,
handicrafts and other rural crafts and other
allied economic activities in rural areas with
a view to promote integrated rural
development and prosperity and for
matters connected therewith.
Q. 222. Under Banking Regulation Act,
1934, The Reserve Bank was established in
1935 with the capital of Rs. ______ .
(a) 5 crore (b) 4 crore
(c) 3 crore (d) 2 crore
Sol. (a) The Reserve Bank of India was
established on April 1, 1935bt the Reserve
Bank of India Act, 1934 with a share capital
of Rs. 5 crores on the recommendation of
Hilton Young Commission.
Q. 223.Which central agency manages the
public debt of the central and state
government?
(a) FICCI (b) IRDA
(c) SEBI (d) RBI
Sol. (d) The RBI manages public debt on
behalf of the Central and the State
Governments. Reserve Bank of India is
known as the Banker’s bank. It is the bank
from which the Government borrows
during the time of deficit. RBI also has the
responsibility to maintaining the monetary
policies and currency printing throughout
the India.
Q. 224. Which central agency regulates and
monitors the housing sector in India ?
(a) RERA (b) RBI
(c) LIC (d)SEBI
Sol. (a) RERA , The Real Estate (Regulation
and Development) Act, 2016 is an Act of the
Parliament of India which seeks to protect
home-buyers as well as help boost
investments in the real estate industry. Bill
published on: 14 August 2013.
Q. 225. Which of the following bodies is
primarily concerned with maintaining the
integrity of the international financial
system ?
(a) IMF (b) AIIB
(c) FATF (d) ADB
Sol. (c) FATF , The Financial Action Task
Force (FATF) is primarily concerned with
maintaining the integrity of the
international financial system. The Financial
Action Task Force (FATF) is the global
money laundering and terrorist financing
watchdog. The inter-governmental body
sets international standards that aim to
prevent these illegal activities and the harm
they cause to society.
Q. 226. What is the full form of NPCI which
is an umbrella organisation for all retail
payments systems in India ?
(a) National Payments Corporation of India
(b) Non-cash Payments Corporation of
India
(c) Non-cash Payments Cooperative Inc.
(d) Net Payments Company Inc.
Sol. (a) National Payments Corporation of
India , The National Payments Corporation
of India is an umbrella organisation for
operating retail payments and settlement
systems in India.
Q. 227. What is the minimum amount
which can be remitted through Real Time
Gross Settlement (RTGS) ?
(a) Rs 2,00,000 (b) Rs 1,00,000
(c) Rs 5,00,000 (d) Rs 3,00,000
Sol. (a) Rs 2,00,000, The RTGS system is
primarily meant for large value
transactions. The minimum amount to be
remitted through RTGS is Rs 2 lakh. The
maximum limit is Rs 10 lakh per day.
Q. 228. Which of the following institutions
does NOT regulate capital markets in India ?
(a) RBI (b) SEBI
(c) Ministry of Finance (d) IRDA
Sol. (d) IRDA , The Securities & Exchange
Board of India (SEBI),The Ministry of
Finance (MoF), and the Reserve Bank of
India (RBI) are the three regulatory
authorities governing Indian capital
markets.
Q. 229. In which year was the Reserve Bank
of India established?
(a) 1925 (b) 1935
(c) 1939 (d) 1945
Sol. (b) 1935 , The Reserve Bank of India is
India's central bank, which controls the
issue and supply of the Indian rupee. It was
established on 1 April,1935 under the RBI
act, 1934.
Q. 230. Which of these Institutions fixes the
repo rate and reverse repo rate in India ?
(a) Comptroller and Auditor General of
India
(b) Ministry of Finance
(c) State Bank of India
(d) Reserve Bank of India
Sol. (d) Reserve Bank of India decides repo
rate and reverse repo rate to control
liquidity and inflation in the economy. The
monetary policies are regulated by the
Reserve bank of India. These policies
include Repo rate, Reverse Repo rate, Bank
Rate. by these rates RBI use to maintain the
flow of the liquidity in the market.
NAVRATNA/MAHARATNA
/PSU ETC
Q. 231. Which of the following is NOT a
Navratna Company ?
(a) Bharat Electronics Limited
(b) Rashtriya Ispat Nigam Limited
(c) Hindustan Petroleum Corporation
Limited
(d) Steel Authority of India Limite
Sol. (d) Steel Authority of India Limited
(SAIL) is the largest steel-making company
in India and one of the seven Maharatnas of
the country’s Central Public Sector
Enterprises.
Q. 232. Which of the following pairs is
INCORRECTLY matched ?
(a) Indian Oil Corporation Limited –
Maharatn
(b) Hindustan Aeronautics Limited –
Navratna
(c) Airport Authority of India – Navratna
(d) Bharat Sanchar Nigam Limited –
Miniratna
Sol. (c) Airport Authority of India –
Navratna. The government has divided all
the Public Sector Undertakings mainly in
three categories namely Maharatna,
Navratna and Miniratna. Airport Authority
of India is a Miniratna.
Criteria for grant of Miniratna status to
CPSEs: Miniratna Category-I status: The
CPSEs which have made profit in the last
three years continuously, pre-tax profit is
Rs. 30 crores or more in at least one of the
three years and have a positive net worth
are eligible to be considered for grant of
Miniratna-I status.Miniratna Category-I
status: The CPSEs which have made profit
for the last three continuously and have a
positive net worth are eligible to be
considered for grant of Miniratna-II status.
(i) Miniratna CPSEs should have not
defaulted in the repayment of loans interest
payment on any loSol due to the
Government.
(ii) Miniratna CPSEs shall not depend upon
budgetary support or Government
guarantees.
Q. 233. Which of the following Public Sector
Undertakings does NOT have 'Maharatna'
status?
(a) Steel Authority of India Limited
(b) Engineers India Limited
(c) GAIL (India) Limited
(d) Coal India Limited
Sol. (b) Engineers India Limited is a
Navratna public-sector undertaking which
was setup in 1965 to provide engineering
and related technical services for petroleum
refineries and other industrial projects.
Q. 234. ONGC ______ is a subsidiary of the
Indian public sector enterprise, Oil and
Natural Gas Corporation.
(a) Vishesh (b) Videsh
(c) Vinesh (d) Vighnesh
Sol. (b) ONGC Videsh Limitedis a subsidiary
of the Indian public sector enterprise, Oil
and Natural Gas Corporation and it is
working globally for the energy security of
India.It has expanded its business to 17
countries so far.
Q. 235. Which of the following public sector
enterprises falls under the status
‘Maharatna’?
(a) Bharat Sanchar Nigam Limited
(b) Steel Authority of India Limited
(c) Mahanagar Telephone Nigam Limited
(d) Hindustan Aeronautics Limited
Sol. (b) Steel authority of India is a
Maharatna Company. There are a total of
10 Maharatna companies in India. There are
certain standards that must be met by the
companies to be listed under a Maharatna
Status.
(a).Having Navratna status
(b).Listed on Indian stock exchange with
minimum prescribed public shareholding
under SEBI regulations
(c).An average annual turnover of more
than Rs. 25,000 crore during the last 3 years
(d).An average annual net worth of more
than Rs. 15,000 crore during the last 3 years
(e).An average annual net profit after tax of
more than Rs. 5,000 crore during the last 3
years(f).Should have significant global
presence/international operations.
Q. 236.Which of the following Public Sector
Undertakings was accorded the Maharatna
status in February 2013?
(a) BHEL (b) ONGC
(c) OIL (d) CIL
Sol. (a) Bharat Heavy Electricals Limited
(BHEL) and Gas Authority of India Ltd.
(GAIL) was given the status of Maharatna in
February 2013. The main reason behind this
step was to increase the financial and
functional autonomy. Presently there are 8
PSUs with Maharatna status. Bharat
Petroleum Corporation Ltd. is the latest to
be added in this list.
Q. 237. Which of the following companies is
a Navratna company ?
(a) Rashtriya Chemicals and Fertilizers
Limited
(b) Coal India Limited
(c) Steel Authority of India
(d) Engineers India Limited
Sol. (d) Engineers India Limited There are 16
Navratna CPSEs as following:
1. Bharat Electronics Limited (BEL)
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
5. Hindustan Petroleum Corporation
Limited
6. Mahanagar Telephone Nigam Limited
7. National Aluminium Company Limited
8. National Buildings Construction
Corporation Limited
9. NMDC Limited
10. Neyveli Lignite Corporation Limited
11. Oil India Limited
12. Power Finance Corporation Limited
13. Power Grid Corporation of India Limited
14. Rashtriya Ispat Nigam Limited
15. Rural Electrification Corporation
Limited
16. Shipping Corporation of India Limited
Q. 238. Which of the following is NOT an
Indian Multinational Company ?
(a) Mahindra Group
(b) Unilever
(c) Infosys
(d) Aditya Birla Group
Sol. (b) Unilever Hindustan Unilever Limited
(HUL) is a British-Dutch manufacturing
company. Unilever now holds 67.25%
equity in the company. It is an MNC not an
Indian company. MNC means Multinational
Company i.e A company having its business
operation in many countries.
INTERNATIONAL
ORGANISATIONS
Q. 239. Minimum Support Price (MSP) of
the agricultural crops in India is fixed by the
government on the recommendations of
the:
(a) Reserve Bank of India
(b) Commission for Agricultural Costs and
Prices (CACP)
(c) Food Corporation of India (FCI)
(d) NABARD
Sol. (b) Commission for Agricultural Costs
and Prices (CACP) , Minimum Support Price
(MSP) of the agricultural crops in India is
fixed by the government on the
recommendations of the Commission for
Agricultural Costs and Prices (CACP).
Q. 240. Identify the INCORRECT statement
about Public Distribution System (PDS) in
India.
(a) From 1997, PDS became TPDS for
targeted consumers.
(b) PDS was envisaged in 1967 as a price
support program to help consumers.
 (c) Those living below the poverty line get
food grains at subsidized prices
(d) PDS has been abandoned in the country
since 2007.
Sol. (d) PDS has been abandoned in the
country since 2007. The public distribution
system is a government-sponsored chain of
shops entrusted with the work of
distributing the basic food and non-food
commodities to the needy sections of
society at very cheap prices.
Q. 241. The Raleigh Commission (1902) was
appointed to recommend reforms in:
(a) the education system
(b) draught management
(c) the judicial system
(d) the police system
Sol. (a) The viceroy filled with the
imperialistic design was not in favor of
giving any power to the Indi Sol. He
concluded the Indian Universities and the
colleges were slowly becoming a cradle of
propaganda against the government.
Therefore, Lord Curzon appointed Raleigh
Commission under Sir Thomas Raleigh. The
Rayleigh bill, when became an act, was
called Indian Universities Act 1904.
Q. 242. The first Five-Year Plan’s main
emphasis was to improve the condition of
agriculture in India. The plan began in the
year:
(a) 1953 (b) 1952
(c) 1951 (d) 1949
Sol. (c) 1951 , The First Five Year plan
began in 1951.
Q. 243. Which of the following is the base
year of a new WPI series effective from
April 2017 ?
(a) 2010-11 (b) 2013-14
(c) 2012-13 (d) 2011-12
Sol. (d) Wholesale Price Index measures
the changes in the prices of goods sold and
traded in bulk by wholesale businesses to
other businesses. 2011-12 is the base year
of a new WPI series effective from April
2017.
Q. 244. In the context of Colonial India, the
Hartog Committee Report is related to
which of the following fields ?
(a) Education (b) Urbanisation
(c) Irrigation (d) Health
Sol. (a) Education , The Hartog committee
in 1929 submitted its report on education.
The committee stated that in India people
leave their school before completing a
particular level of education.
Q. 245. Planned economic development in
India began in ______ with the inception of
the First Five Year Plan.
(a) 1951 (b) 1956
(c) 1948 (d) 1958
Sol. (a) 1951 , Planned economic
development in India began in 1951 after
the inception of five year plans. The first
five year plan was introduced in 1951
whose prime focus was on the development
of the primary sector. It was introduced by
The first Prime Minister of India Jawahar Lal
Nehru for effective and balanced utilization
of resources.
Q. 246. Atal Tinkering Labs is an initiative by
which of the following institutions ?
(a) National AYUSH Mission
(b) Central Board of Secondary Education
(c) Reserve Bank of India
(d) Niti Aayog
Sol. (d) NITI Aayog , Atal Tinkering Labs is
the initiative of the National Institution for
Transforming India (NITI Aayog). The
objective of this scheme is to foster
curiosity, creativity, and imagination in
young minds and inculcate skills such as
design mindset, computational thinking,
adaptive learning, physical computing etc.
Q. 247. In which of the following years was
the Planning Commission of India set up ?
(a) 1945 (b) 1950
(c) 1958 (d) 1962
Sol. (b) The Planning Commission was set
up by a resolution of the Government of
India in March 1950 with the Prime Minister
as the ex officio chairman. Formulating a
plan for the most effective and balanced
utilization of the country’s resources has
been one of its functions. It was scrapped in
2014 and replaced by NITI Aayog in 2015.
Q. 248. Who among the following
economists coined the terminology 'Hindu
Rate of Growth'?
(a) Amiya Kumar Bagchi
(b) Vijay Kelkar
(c) Raj Krishna
(d) Bimal Jalan
Sol. (c) The terminology 'Hindu Rate of
Growth' was coined by Raj Krishna. The
Hindu rate of growth is a term referring to
the low annual growth rate of the economy
of India before the economic reforms of
1991, which stagnated around 3.5% from
1950s to 1980s, while per capita income
growth averaged around 1.3%.
Q. 249. Which of the following is NOT a
feature of food security?
(a) Availability
(b) Affordability
(c) Acceptability
(d) Accessibility
Sol. (c) Acceptability is not a feature of food
security. The four features of food security
are availability, accessibility, utilization, and
stability. Acceptability means access to
culturally acceptable food, which is
produced and obtained in ways that do not
compromise people's dignity, self-respect,
or human rights.
Q. 250. IPR 1956 formed the basis of the
______ Five Year Plan of India.
(a) First (b) Second
(c) Third (d) Fourth
Sol. (b) IPR 1956 formed the basis of the
Second Five Year Plan of India. IPR stands
for Industrial policy resolution and is a
resolution adopted by the Indian Parliament
in April 1956. According to this resolution,
the objective of the social and economic
policy in India was the establishment of a
socialistic pattern of society.
Q. 251. In the context of agricultural costs
in India, what is MSP?
(a) Model Stability Product
(b) Midterm Supply Plan
(c) Maximum Selling Price
(d) Minimum Support Price
Sol. (d) MSP is known as the Minimum
Support Price. It is a guaranteed minimum
price for agricultural produce which is
decided by the Government of India to
purchase directly from the farmers. It
provides economic security to the farmers.
Q. 252. A government budget is an annual
financial statement that outlines estimated
government expenditures and expected
government receipts or revenues for the
forthcoming fiscal year. Depending on the
feasibility of these estimates, which of the
following is NOT the budget type?
(a) Deficit budget
(b) Balanced budget
(c) Economy budget
(d) Surplus budget
Sol. (c) Depending on the feasibility of these
estimates, Budgets are of three types - a
balanced budget, surplus budget, and
deficit budget.
A budget is said to be a balanced budget if
the estimated government expenditure is
equal to expected government receipts in a
particular financial year.
A budget is said to be a surplus budget if
the expected government revenues exceed
the estimated government expenditure in a
particular financial year.
A budget is said to be a deficit budget if the
estimated government expenditure exceeds
the expected government revenue in a
particular financial year.
Q. 253. Which of the following recommends
Minimum Support Prices for crops in India?
(a) Commission for Agricultural Costs &
Prices
(b) NITI Aayog
(c) Indian Council of Agricultural Research
(d) Fiscal Prudence Commission
Sol. (a) Commission for Agricultural Costs &
Prices (CACP) recommends Minimum
Support Price for 22 crops in India.
Q. 254. 10 per cent reservation in central
government jobs under economically
weaker sections (EWS) category is available
to persons whose family income is below:
(a) ₹10 lakh (b) ₹8 lakh
(c) ₹3 lakh (d) ₹5 lakh
Sol. (b) 10 percent reservation in central
government jobs under economically
weaker sections (EWS) category is available
to persons whose family income is below:₹8
lakh
Q. 255. Infant Mortality Rate (or IMR)
indicates the number of children that die
before the age of ______ as a proportion of
1000 live children born in that particular
year.
(a) 6 months (b) 3 months
(c) 1 year (d) 3 years
Sol. .(c) Infant Mortality Rate (or IMR)
indicates the number of children that die
before the age of one year as a proportion
of 1000 live children born in that particular
year. In 2020, infant mortality rate for India
was 29.07 deaths per thousand live births.
Q. 256. What was the literacy rate of India
as per the Census of 2011?
(a) 72.0% (b) 61.0%
(c) 74.0% (d) 81.5%
Sol. (c) 74.0% was the literacy rate of India
as per the Census of 2011. Literacy rate
among females is 65.5 percent whereas the
literacy rate among males is 82.1 percent.
Q. 257. The five-year plans of India were
centralised economic and social growth
programmes modelled after those
prevalent in ______.
(a) the USSR (b) the US
(c) Germany (d) Norway
Sol. (a) The five-year plans of India were
centralised economic and social growth
programmes modelled after those
prevalent in the USSR. It was based on the
Harrod-Domar model that sought to boost
economic growth through higher savings
and investments.
Q. 258. Who among the following is the
chairman of NITI Aayog?
(a) Rajeev Kumar
(b) Narendra Modi
(c) Amitabh Kant
(d) Nirmala Sitharaman
Sol. (b) Narendra Modi is the chairman of
NITI Aayog. The NITI Aayog is a public policy
think tank of the Government of India.
Formed: 1 January 2015. Shri Amitabh Kant
is presently posted as CEO. Dr. Rajiv Kumar
is Vice Chairman.
Q. 259. Who among the following was the
Chairperson of the Disinvestment
Commission, Ministry of Industry
(Department of Public Enterprises)
established in 1996?
(a) Arundhati Roy
(b) NK Singh
(c) Arvind Mehta
(d) GV Ramakrishna
Sol. (d) GV Ramakrishna was the
Chairperson of the Disinvestment
Commission, Ministry of Industry
(Department of Public Enterprises)
established in 1996. It was set up to advise,
supervise, monitor, and publicize the
gradual disinvestment of Indian PSUs.
Q. 260. Launched in 1951, India’s first five-
year plan was based on which of the
following economic models to focus on
agriculture and irrigation to boost farm
output?
(a) Heckscher-Ohlin Model
(b) Harrod-Domar Model
(c) Mundell-Fleming Model
(d) Cobb-Douglas Model
Sol. (b) India’s first five-year plan was based
on the Harrod-Domar Model economic
models to focus on agriculture and
irrigation to boost farm output. It was
launched in 1951. The concept of the 5-year
plan was borrowed from the USSR into the
Indian constitution. Joseph Stalin
implemented the first FYP in the Soviet
Union in the late 1920s.
Q. 261. Which of the following Countries is
NOT a member of the World Trade
Organization ?
(a) Israel (b) Iran
 (c) Guinea (d) Norway
Sol. (b) Iran has an observer status at the
World Trade Organization (WTO) since
2005. The United States has consistently
blocked Iran's bid to join the WTO.All other
are the member of the of WTO Israel is a
member since 21 april Guinea is a member
since 25 october 1995And Norway has been
a member Since 1 january 1995.
Q. 262. Which organisation publishes a
Human Development Report ?
(a) WTO (b) ILO
(c) World Bank (d) UNDP
Sol. (d) UNDP ,. The Human Development
Report (HDR) is an annual report published
by the Human Development Report Office
of the United Nations Development
Programme (UNDP).
Q. 263. In the context of UN Sustainable
Development Goals, which of the following
pairs is INCORRECT ?
(a) Zero Hunger - SDG 2
(b) Decent Work and Economic Growth -
SDG 8
(c) No Poverty - SDG 1
(d) Quality Education - SDG 3
Sol .(d) Sustainable Development Goal 4
(SDG 4) is the education goal. It aims to
“ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all.”
Q. 264. UNDP’s ‘Human Development
Report’ (HDR) measures development by
combining which of the following three
indicators ?
(a) Health, education and average salary
(b) Health, education and agricultural
growth
(c) Health, education and standard of living
(d) Health, industrial growth and standard
of living
Sol. (c) UNDP’s ‘Human Development
Report’ (HDR) measures development by
combining Health, education and standard
of living.
Q. 265. With reference to the United
Nations’ Sustainable Development Goals,
which of the Following is the SDG 10?
(a) Climate action
(b) Reduced inequalities
(c) Zero hunger
(d) Decent work and economic growth
Sol. (b) Reduced inequalities , Sustainable
Development Goal 10 is about reduced
inequality and is one of the 17 Sustainable
Development Goals established by the
United Nations in 2015. The full title is:
"Reduce inequality within and among
countries". The Goal has ten targets to be
achieved by 2030. It was started in 2015.
It’s mission was to reduce inequality within
and among countries.
GOVERNMENT SCHEMES
Q. 266. Which of the following ministries
implemented the Mid day Meal scheme?
(a) Ministry of Social Justice and
Empowerment
(b) Ministry of Home Affairs
 (c) Ministry of Human Resource
Development
(d) Ministry of Social Welfare
Sol. (c) Ministry of Human Resources and
Development is implementing Mid-day
Meal Scheme. The Midday Meal Scheme is
a school meal program of the Government
of India designed to better the nutritional
standing of school-age children
nationwide.The programme supplies free
lunches on working days for children in
primary and upper primary classes in
government, government aided, local body,
Education Guarantee Scheme, and alternate
innovative education centres.
Q. 267. The Pradhan Mantri Shram Yogi
Mandhan Yojana was launched by
_____________.
(a) Arun Jaitley
(b) Ram Nath Kovind
(c) Smriti Zubin Irani
(d) Narendra Modi
Sol. (d) Prime Minister Narendra Modi on
March 5, 2019 launched the Pradhan
Mantri Shram Yogi Maan-dhan Yojana, a
mega pension scheme for the unorganised
sector, from Gandhinagar, Gujarat.
Q. 268. Pradhan Mantri Awas Yojana aims
at providing shelter to everyone by _____.
(a) 2021 (b) 2022
(c) 2023 (d) 2024
Sol. (b) PMAY Scheme is an initiative
provided by the Government of India which
aims at providing affordable housing to the
urban poor. The mission is to provide
housing for all by the year 2022, by that
time Nation completes 75 years of its
Independence.
Q. 269. The Mission Indradhanush, an
initiative of Govt. of India, is associated
with:
(a) immunisation
(b) highway development
(c) digitalisation
(d) cleanliness
Sol. (a) immunisation , The Mission
Indradhanush aims to cover all those
children by 2020 who are either
unvaccinated, or are partially vaccinated
against vaccine preventable diseases.
India's Universal Immunisation Programme
(UIP) provides free vaccines against 12 life
threatening diseases to 26 million children
annually.
Q. 270. The Mahatma Gandhi National
Rural Employment Guarantee Act, 2005
aims to provide_____ days of wage
employment to every household to ensure
livelihood security in rural areas.
(a) 250 (b) 45
(c) 365 (d) 100
Sol. (d) The Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 aims to
provide 100 days of wage employment to
every household to ensure livelihood
security in rural areas. It is Indian labor law
and social security measure that aims to
guarantee the 'right to work'.

INDIAN ECONOMY:
CENTRAL PROBLEMS AND
PLANNING
Q. 271. Which panel set up by the
Government of India suggested total
decontrol of the sugar industry?
(a) RamSevak Panel
(b) Rangarajan Panel
(c) RadheShyam Panel
(d) Sri Krishna Panel
Sol. (b). The Rangarajan Panel was set up by
the Government of India for total decontrol
of the sugar industry in November 2012. In
April 2013, the government announced
partial decontrol of sugar.
Q. 272. Minimum Support Price (MSP)
is recommended by _________.
(a) The Commission for Weights and
Measures
(b) The Food Safety and Standards
Authority of India
(c) The Farmer's Welfare Society
(d) The Commission for Agricultural Costs
and Prices
Sol. (d) The Commission for Agricultural
Costs and PricesMSP is recommended by
the Commision for Agricultural Costs and
Prices(CACP). Every year Cabinet
Committee of Economic Affairs (CCEA)
announce a minimum support price for
various types of crops. MSP is the minimum
.
Q. 273. The base financial year for the
calculation of the All India Index of
industrial production (IIP) is:
(a) 2010-2011 (b) 2004-2005
(c) 2011-2012 (d) 2005-2006
Sol. (c) 2011-2012 , The base year in
economics is used to set the starting point
of the comparison. The Central Statistics
Office (CSO) revised the base year of the all-
India Index of Industrial Production (IIP)
from 2004-05 to 2011-12 on 12 May 2017.
Q. 274. As per Mankiw’s Principles of
Economics , the standard of living of a
country depends on the country’s _______.
(a) Government Policies
(b) Nominal Wages
(c) Average Wages
(d) Ability to produce goods and services
Sol. (d) Mankiw's eighth principle of
economics is: a country's standard of living
depends on its ability to produce goods and
services.
Q. 275.Which theory in economics proposes
that countries export what they can most
efficiently and plentifully produce ?
(a) Solow-Swan Model
(b) Heckscher-Ohlin Model/
(c) Input-Output Model
(d) Cournot Competition
Sol. (b) Heckscher-Ohlin Model The
Heckscher–Ohlin model (H–O model) states
that countries export what they can most
efficiently and plentifully produce.
Q. 276.Which one of the following is used
for indexing dearness allowance to
government employees for increase in
prices in India ?
(a) Interest rates
(b) Consumer Price Indices (CPI)/
(c) Bank rates
(d) Statutory Liquidity Ratio (SLR)
Sol. (b) Industrial Dearness Allowance (IDA)
applies to the Public sector employees of
the Central Government. The Industrial
Dearness Allowance for public sector
employees undergoes quarterly revision
depending on the Consumer Price Index to
help offset the impact of rising levels of
inflation.
Q. 277. A savings fund in which both, the
employer and the employee contribute
regularly in the interest of the employee is
known as:
(a) Index Fund
(b) Mutual Fund
(c) Provident Fund
(d) Balanced Fund
Sol.(c) The EPF is one of the main platforms
of savings for all employees working in
Government, Public or Private sector
Organizations. It is a type of scheme in
which a certain part of one’s salary is
deducted and the employer also adds a
certain amount into it and then the
complete amount is put into a savings
account.
Q. 278. The Minimum Support Price is
declared by ______.
(a) Finance Ministry
(b) Ministry of Agriculture
(c) The Cabinet committee of economic
affairs
(d) Chamber of Commerce
Sol. (c) The Cabinet Committee on
Economic Affairs chaired by Prime Minister
Shri Narendra Modi declares the MSP every
year. The minimum support price (MSP) is
an agricultural product price, set by the
Government of India to purchase directly
from the farmer.
Q. 279. In whose guidance the economic
survey of India is prepared ?
(a) Finance Commission
(b) Finance Minister
(c) RBI Governor
(d) Chief Economic Advisor
Sol. (d) The Department of Economic
Affairs, Ministry of Finance presents the
Economic Survey of India in the Parliament
every year, just before the Union Budget. It
is prepared under the guidance of the Chief
Economic Adviser attached to the Ministry
of Finance.
Q. 280. Who maintains a Buffer Stock of
Food grains in India ?
(a) NAFED
(b) FICCI
(c) Ministry of Agriculture
(d) FCI
Sol. (d) FCI FCI is a government body Works
under the Food and Public Distribution,
Ministry of Consumer Affairs. Its main work
is to store the buffer stock of the food.
Q. 281. For how many mandated crops,
Minimum Support Price (MSP) is announced
by the government ?
(a) 22 (b) 42
(c) 32 (d) 12
Sol. (a) Government announces minimum
support prices (MSPs) for 22 mandated
crops and fair and remunerative price (FRP)
for sugarcane. The mandated crops are 14
crops of the kharif season, 6 rabi crops and
two other commercial crops.
Q. 282. For which crop, fair and
remunerative price is announced instead of
minimum support price?
(a) Rice (b) Sugarcane
(c) Pulses (d) Wheat
Sol. (b) Sugarcane , Government announces
minimum support prices (MSPs) for 22
mandated crops and a fair and
remunerative price (FRP) for sugarcane. The
mandated crops are 14 crops of the kharif
season, 6 rabi crops and two other
commercial crops.
Q. 283. The period of second five year plan
in India was:
(a) 1961-66 (b) 1969-74
(c) 1956-61 (d) 1951-56
Sol. (c) 1956-61 , The second five year plan
(1956-61) was based on the Mahalanobis
model and accorded high priority to
industrialization.
Q. 284. The fund into which the proceeds
from disinvestment of Central Public Sector
Enterprises are channelised is known as
______.
(a) National Fund
(b) National Infrastructure Fund
(c) National Investment Fund
(d) National Rural and Urban Fund
Sol. (c) The fund into which the proceeds
from disinvestment of Central Public Sector
Enterprises are channelized is known as
national Investment Fund.
Q. 285. The minimum support price
protects farmers against which of the
following ?
(a) Crop failure due to unexpected diseases
or insect infections
(b) The high rate of interest from the local
currency lenders
(c) Extreme drought, flood or any other
natural disaster
(d) Excess fall in prices during bumper
production
Sol. (d) Excess fall in prices during bumper
production , MSP provides a guarantee to
the farmer that their production will be sold
at least at the price which is pre-decided by
the government. So, during the condition of
bumper production farmers have a security
that price will not fall.
Q. 286. The period of 12th Five Year Plan
was:
(a) 2012-2017 (b) 2007-2012
(c) 2002-2007 (d) 1997-2002
Sol. (a) 2012-2017 The period of 12th Five
Year Plan was 2012-2017.
STOCK, DEBENTURES AND
FOREIGN TRADE

Q. 287. In which year was the first
Exchange-traded Index Derivative Contract
traded on the Bombay Stock Exchange
(BSE)?
(a) 2000 (b) 1994
(c) 1991 (d) 2004
Sol. (a) 2000 , BSE created history on June
9, 2000 by launching the first Exchange-
traded Index Derivative Contract in India i.e.
futures on the capital market benchmark
index - the BSE Sensex.
Q. 288. Bombay Stock Exchange became
the first stock exchange in India to launch
commodity derivatives contracts in gold
and ______.
(a) diamond (b) silver
(c) platinum (d) equity
Sol. (c) Bombay Stock Exchange (BSE)
became the first stock exchange in India to
launch commodity derivatives contracts in
gold and silver. BSE was established in 1875
by cotton merchant Premchand Roychand
and is located in Dalal Street, Mumbai. It is
the oldest Stock Exchange in Asia.
Q. 289. In which year was the Bombay Stock
Exchange established ?
(a) 1864 (b) 1893
(c) 1875 (d) 1882
Sol. (c) Bombay Stock Exchange (BSE)
Established in 1875 and located on Dalal
Street in Mumbai is the oldest stock
exchange in South Asia and also the tenth
oldest in the world.
Q. 290. Which of the following is the oldest
stock exchange in India?
(a) DSE (b) BSE
(c) CSE (d) NSE
Sol. (b) BSE is the oldest stock exchange in
India. The Bombay Stock Exchange (BSE) is
the first and largest securities market in
India and was established in 1875.
Q. 291. The index titled SENSEX of BSE
(erstwhile Bombay Stock Exchange) is an
index of trading of top ______ companies in
terms of their volume of trade and their
share prices.
(a) ten (b) thirty
(c) hundred (d) fifty
Sol. (b) The index titled SENSEX of BSE
(erstwhile Bombay Stock Exchange) is an
index of trading of the top thirty companies
in terms of their volume of trade and their
share prices. The full form of SENSEX is the
Sensitive Index. Published on 1 January
1986, the BSE SENSEX is regarded as the
pulse of the domestic stock markets in
India.
Q. 292. In which year was the Foreign
Exchange Management Act (FEMA) enacted
to replace the Foreign Exchange Regulation
Act (FERA)?
(a) 1999 (b) 1988
(c) 2014 (d) 1992
Sol. (a) The Parliament has enacted the
Foreign Exchange Management Act,1999 to
replace the Foreign Exchange Regulation
Act, 1973. This Act came into force on the
1st day of June, 2000.
Q. 293. Bombay Stock Exchange is the
______ stock exchange of Asia.
(a) first (b) second
(c) fourth (d) third
Sol. (a) Bombay Stock Exchange is the first
stock exchange in Asia. BSE, the first-ever
stock exchange in Asia established in 1875
and the first in the country. The Dutch East
India Company (founded in 1602) was the
first joint-stock company to get a fixed
capital stock and as a result, continuous
trade in company stock occurred on the
Amsterdam Exchange.
Q. 294. Which theory is used to make long-
run predictions about exchange rates in a
flexible exchange rate system ?
(a) Purchasing Power Parity Theory/
(b) Balance of Payment Theory
(c) Interest Rate Approach
(d) Portfolio Balance Approach
Sol. (a) The Purchasing Power Parity (PPP)
theory is used to make long-run predictions
about exchange rates in a flexible exchange
rate system.
Q. 295. A/an _______ stock is the stock of a
large, well-established and financially sound
company that has operated for many years.
(a) Cyclical (b) Defensive
(c) Blue-chip (d) Income
Sol. (c) Blue-chip stocks are popular stocks
to buy because they represent stable
companies that often pay attractive
dividends. There is no official definition for
a blue chip stock, but in general they are
large, well-established and financially sound
companies that have operated for many
years.
Q. 296. In economic, IPO stands
for_______.
(a) Inclusive Property Offer
(b) Initial Public Offering
(c) Indented Performance Objective
(d) Inventory Performance Output
Sol. (b) Initial Public Offering IPO" stands for
"initial public offering." When the news
media report that a company is "going
public," this means that company is making
an initial public offering. This meSol that the
company is offering its shares for sale to the
public for the first time.
Q. 297. Which central agency is responsible
for the regulation of the Stock Market in
India ?
(a) RERA (b) NABARD
(c) IRDA (d) SEBI
Sol. (d) The Securities and Exchange Board
of India (SEBI) is the regulatory authority
established under the SEBI Act 1992 and is
the principal regulator for Stock Exchanges
in India.
Q. 298. _____ is a situation of very low rate
of interest in the economy where every
economic agent expects the interest rate to
rise in future and consequently bond prices
to fall, causing capital loss.
(a) Paradox of thrift
(b) Parametric shift
(c) Revenue deficit
(d) Liquidity trap
Sol. (d) Liquidity trap Liquidity Trap is a
situation of very low rate of interest in the
economy where every economic agent
expects the interest rate to rise in future
and consequently bond prices to fall,
causing capital loss. Liquidity Trap is a
contradictory economic situation in which
interest rates are very low and saving rates
are high, Rendering economic policy
ineffective.
MISCELLANEOUS
Q. 299. ______ is the term used for
breeding of fish in specially constructed
tanks and ponds.
(a) Pisciculture (b) Agriculture
(c) Viticulture (d) Horticulture
Sol. (a) Pisciculture is the term used for
breeding of fish in specially constructed
tanks and ponds. Viticulture is the
cultivation and harvesting of grapes.
Horticulture is the agriculture of plants
mainly for food, materials, comfort and
beauty for decoration.
Q. 300. What type of unemployment is
generally found in the agricultural sector of
India?
(a) Voluntary unemployment
(b) Structural unemployment
(c) Frictional unemployment
(d) Disguised unemployment
Sol. (d) Disguised unemployment,
Voluntary unemployment - A person able
but not willing to work.
Structural unemployment - unemployment
arising from the mismatch between the jobs
available in the market and skills of the
available workers in the market.
Frictional unemployment - Time lag
between the jobs when an individual is
searching for a new job or is switching
between the jobs.
Disguised unemployment - A phenomenon
wherein more people are employed than
actually needed. It is prevalent mostly in
the agricultural sector.
Q. 301. With which of the following is
'Operation Flood' related ?
(a) India’s poultry industry
(b) India’s farming industry
(c) India’s dairy industry
(d) India’s mining industry
Sol. (c) India’s dairy industry Operation
Flood launched on 13 January 1970 was the
world’s largest dairy development program
and a landmark project of India’s National
Dairy Development Board.
Q. 302. Related area of Golden Revolution
is:
(a) Eggs (b) Oilseeds
(c) Fruits (d) Fish
Sol. (c) Fruits , The period between 1991 to
2003 is known as the period of Golden
Revolution in India. The Golden Revolution
is related to the production of honey and
horticulture. Nirpakh Tutej is considered to
be the Father of the Golden Revolution in
India.
Q. 303. The Great Leap Forward (GLF) was a
campaign initiated in ______ in 1958 aimed
at industrialising the country on a massive
scale.
(a) India (b) Bangladesh
(c) China (d) Sri Lanka
Sol. (c) The Great Leap Forward was a five-
year plan of forced agricultural
collectivization and rural industrialization
that was instituted by the Chinese
Communist Party in 1958, which resulted in
a sharp contraction in the Chinese economy
and between 30 to 55 million deaths by
starvation, execution, torture, forced labour
and suicide out of depression. The initiative
was led by Mao Zedong. The goal was to
rapidly evolve China from an agrarian
economy into a modern industrial society
with greater ability to compete with
Western industrialized nations.
Q. 304. ‘A Plan of Economic Development
for India’, which was prepared by a cross-
section of India’s leading capitalists in 1944,
was popularly known as the ______ Plan.
(a) Mysore (b) Allahabad
(c) Bombay (d) Calcutta
Sol. (c) Bombay , The Bombay plan was
authored by top industrialists such as JRD
Tata, GD Birla and Lal Shri Ram. The
economists who helped draft the plan were
John Mathai (who went on to become the
finance minister in Nehru’s cabinet),
Ardheshir Dalal, AD Shroff and PS
Lokanathan.
Q. 305. The steel plant at Bokaro was set up
in collaboration with ______.
(a) France (b) United Kingdom
(c) Germany (d) Soviet Union
Sol. (d) Soviet Union , The steel plant at
Bokaro was built in collaboration with
Soviet Union. The first prime minister of
India Jawahar Lal Nehru desired to establish
a steel plant in the region.
Q. 306. The phrase ‘Gross National
Happiness’ was first coined in:
(a) New Zealand (b) Bhutan
(c) Sweden (d) India
Sol. (b) Bhutan , The Phrase ‘gross national
happiness’ was first coined in Bhutan.It is an
index which is used to measure the
collective happiness and well being of a
population. The concept of gross national
happiness is defined by four pillars.
(a) good governance
(b) sustainable socio economic
development
(c)cultural preservation
(d) environmental conservation.
Q. 307. The Tata Iron and Steel Company
(TISCO) is located at which of the following
places?
(a) Bhilai (b) Rourkela
(c) Jamshedpur (d) Durgapur
Sol. (c) Jamshedpur , TISCO is located in
Jamshedpur in Jharkhand. The industry is
located on the banks of Subarnarekha and
Kharkai river. These rivers help in the
industrial uses and water treatment for the
industry. Jamshedpur is also known as Tata
City.
Q. 308. Viticulture refers to the:
 (a) cultivation of grapes
(b) breeding of fish
(c) commercial rearing of silkworm
(d) growing of vegetables
Sol. (a) Viticulture refers to the science
study and production of grapes. Breeding
and rearing of fish is called
Pisciculture.Growing of vegetables is called
Oreiculture. Sericulture or Silk farming is
the cultivation of silkworms to produce silk.
Q. 309. Which among the following
organisations releases the Index of
Economic Freedom?
(a) International Monetary Fund
(b) Heritage Foundation
(c) Fraser Institute
(d) World Bank
Sol. (b) Heritage Foundation releases Index
of Economic Freedom. The Index of
Economic Freedom is an annual index and
ranking created in 1995 by right-wing
libertarian think-tank The Heritage
Foundation and the editorially right-wing
The Wall Street Journal to measure the
degree of economic freedom in the world's
nations.
Q. 310.______ is a land which is left fallow
(Uncultivated ) for more than five years and
can be bought under cultivation after
improving it through reclamation practices.
(a) permanent pastures
(b) Current fallow
(c) Forest land
(d) Culturable wasteland
Sol. (d) Culturable wasteland is the land
which was either a cultivable land or not
but from the last years or more cultivation
over the land is not possible due to various
reasons including the current yearIt can be
used for the purpose of cultivation after
improving its fertility level.
Q. 311. ‘An Enquiry into the Nature and
Cause of the Wealth of Nations’ is an
influential work by economist ______.
(a) Millicent Fawcett
(b) Adam Smith
(c) John Maynard Keynes
(d) Alfred Marshall
Sol. (b) Adam Smith , ‘An Enquiry into the
Nature and Cause of the Wealth of Nations’
is an influential work by economist Adam
Smith. It was published in 1776. the book
offers one of the world's first collected
descriptions of what builds nations' wealth ,
and is today a fundamental work in classical
economics .
Q. 312. What is the objective of the
'Doughnut Model' of development?
(a) It envisions total abandonment of
technology to live at peace with the
environment.
(b) It envisions the food processing industry
as the center of development.
(c) It envisions rapid development at an
environmental cost, then makes up for it
later.
(d) It envisions a world in which people and
the planet can thrive in balance.
Sol. (d) The objective of the 'Doughnut
Model' of development is to envision a
world in which people and the planet can
thrive in balance. The Doughnut model of
economics was proposed by Kate Raworth.
Q. 313. SHG promotes thrift in small
proportion by a minimum contribution from
each member of the group. What does 'H'
stand for in SHG?
(a) Habitat (b) Harvest
(c) Heavy (d) Help
Sol. (d) In SHG, H stands for ‘help’. SHG
promotes thrift in small proportion by a
minimum contribution from each member
of the group. Self-Help Groups (SHGs) are
informal associations of people who choose
to come together to find ways to improve
their living conditions. It can be defined as a
self-governed, peer-controlled information
group of people with similar socio-
economic backgrounds and having a desire
to collectively perform a common purpose.
Q. 314. According to Malthusian theory,
which of the following grows in geometric
progression?
(a) Poverty (b) Employment
(c) Population (d) Food supply
Sol. (c) According to Malthusian theory, the
population grows in geometric progression.
This theory, proposed by Malthuswho,
stated that the human population increases
geometrically, while food production
increases arithmetically. Under this
paradigm, humans would eventually be
unable to produce enough food to sustain
themselves.
Q. 315. Which of the following is a
characteristic of human wants in terms of
economics?
(a) Wants are limited.
(b) Wants do not become habits.
(c) Wants are satiable.
(d) Wants are not competitive.
Sol. (c) ‘Wants are satiable’ is a
characteristic of human wants in terms of
economics. All the desires, aspirations and
motives of humans are known as human
wants in economics. And the wants that can
be satisfied with goods and services of any
kind are economic wants. For eg. food,
shelter, clothing etc are common economic
human wants.
Q. 316. Which of the following is a
characteristic of human wants in terms of
economics ?
(a) Wants are limited.
(b) Wants do not become habits.
(c) Wants are satiable.
(d) Wants are not competitive.
Sol. (c) ‘Wants are satiable’ is a
characteristic of human wants in terms of
economics. All the desires, aspirations and
motives of humans are known as human
wants in economics. And the wants that can
be satisfied with goods and services of any
kind are economic wants. For eg. food,
shelter, clothing etc are common economic
human wants.
Q. 317. What are the two variables whose
relationship is given by the environmental
Kuznets curve?
 (a) Environmental degradation and tax
revenue
(b) Environmental degradation and per
capita income
(c) Inequality and tax revenue
(d) Inequality and per capita income
Sol. (b) The environmental Kuznets curve
depicts the relationship between
environmental degradation and per capita
income.
Q. 318. According to the 2011 Census of
India, which of the following is the second
most populous state in the country ?
(a) Gujarat
(b) Maharashtra
(c) Madhya Pradesh
(d) Rajasthan
Sol. (b) According to the 2011 Census of
India, Maharashtra is the second most
populous state in the country. According to
the census, Uttar Pradesh is on the top of
the list, followed by Maharashtra on second
and Bihar on the third position and Sikkim is
the least populous.
Q. 319. Which of the following states of
India has the maximum number of
inhabited villages as per Census 2011?
(a) Odisha
(b) Bihar
(c) Madhya Pradesh
(d) West Bengal
Sol. (b) Bihar has the maximum number of
inhabited villages as per Census 2011. It is
the 3rd largest state by population and 12th
largest by territory, with an area of 94,163
km 2 (36,357 sq mi). Bihar borders Uttar
Pradesh to its west, Nepal to the north, the
northern part of West Bengal to the east,
and Jharkhand to the south. Bihar is also
the world’s fourth-most populous entity.
Q. 320. Which economic thought talks
about methodological individualism or the
idea that people will act in meaningful ways
which can be analyzed ?
(a) Washington consensus
(b) Keynesian theory
(c) Monetarist
(d) Austrian economic thought
Sol. .(d) Austrian economic thought talks
about methodological individualism or the
idea that people will act in meaningful ways
which can be analyzed. This doctrine was
introduced as a methodological precept for
the social sciences by Max Weber.
Q. 321. Which of the following is the
correct full form of CACP?
(a) Commission for Agricultural Costs and
Prices
(b) Centre for Agricultural Commission and
Prices
(c) Chamber of Agro Chemicals and
Pesticides
(d) Center for Agricultural costs and Policies
Sol. (a) CACP: Commission for Agricultural
Costs and Prices was established on 8th
January 1965 as the Agricultural Prices
Commission which later became
commission for Agricultural Costs and Prices
in 1985. It is a statutory body attached to
the Ministry of Agriculture & Farmers
Welfare, Government of India. The main
objective of CACP is to work on various
formulas for deciding the prices of the crops
Minimum Support Price.
Q. 322. Which committee was appointed by
SEBI to advise on the development of
appropriate regulatory framework for
derivatives trading in India in the year 1996
? date of declaration is to be transferred to
(a) Balwant Rai Committee
(b) L.C. Gupta Committee
(c) Dinesh Mehta Committee
(d) Ravi Tripathi Committee
Sol. (b) L.C.Gupta Committee was
appointed by SEBI to advise on the
development of appropriate regulatory
framework for derivatives trading in India in
the year 1996.
Q. 323. Which of the following institutions
conducts the survey on employment and
unemployment?
(a) NITI Aayog
(b) National Institution of Economic and
Social Research
(c) National Council of Applied Economic
Research
(d) National Sample Survey Organisation
Sol. (d) The survey on employment and
unemployment is conducted by National
Sample Survey Organisation(NSSO). It is the
largest independent organization since
1950 in the country for conducting the
socio-economic survey.
Q. 324. As per the Companies Act, 2013,
dividend declared by a company but not
paid or claimed within ______ days from
the date of declaration is to be transferred
to the Unpaid Dividend Account.
(a) 120 (b) 60
(c) 30 (d) 90
Sol. (c) As per the Companies Act, 2013, the
dividend declared by a company but not
paid or claimed within 30 days from the
the Unpaid Dividend Account. The
Companies Act 2013 is an Act of the
Parliament of India on Indian company law
which regulates incorporation of a
company, responsibilities of a company,
directors, dissolution of a company.
Q. 325. 'Thalinomics' was introduced in the
Economic Survey for ______.
(a) 2017-18 (b) 2019-20
(c) 2016-17 (d) 2018-19
Sol. (b) 'Thalinomics' was introduced in the
Economic Survey for 2019-20. The term
“Thalinomics” means “the economics of a
plate of food in India”. It is an attempt to
figure out how much a meal costs in India.
This term was given by Raghuram G. Rajan
and Krishnamurthy Subramanian.
Q. 326. As per a report of the Ministry of
Statistics and Programme Implementation
(Government of India), India recorded an
Infant Mortality Rate (IMR) of ______ to
1000 live births in the year 2016.
(a) 68 (b) 55
(c) 34 (d) 47
Sol. (c) As per a report of the Ministry of
Statistics and Programme Implementation
(Government of India), India recorded an
Infant Mortality Rate (IMR) of 34 to 1000
live births in the year 2016.
Q. 327. In which year did the Government
of India set up the first mutual fund by an
Act of Parliament?
(a) 1979 (b) 1982
(c) 1963 (d) 1971
Sol. (c) The Government of India set up the
first mutual fund by an Act of Parliament in
1963. The Mutual Fund industry in India
started in 1963 with the formation of UTI in
1963 by an Act of Parliament and
functioned under the Regulatory and
administrative control of the Reserve Bank
of India (RBI).
Q. 328. In which year did the companies
IBM and Coca Cola shut down their
operations for not being able to comply
with the Foreign Exchange Regulation Act
that mandated foreign investors cannot
own over 40% in Indian enterprises?
(a) 1964 (b) 1981
(c) 1956 (d) 1977
Sol. (d) IBM and Coca-Cola companies shut
down their operations in 1977 for not being
able to comply with the Foreign Exchange
Regulation Act that mandated foreign
investors cannot own over 40% in Indian
enterprises.
Q. 329. ______ is a type of fraud where a
small electronic device is used to steal
debit/credit card information during an
authorized banking transaction.
(a) Phishing (b) Skimming
(c) Smishing (d) Vishing
Sol. (b) Skimming is a type of fraud where a
small electronic device is used to steal
debit/credit card information during an
authorized banking transaction.
Q. 330. Of the following abbreviations,
which one is primarily an umbrella
organization for operating retail payments
and settlement systems in India?
(a) NPCI (b) NABARD
(c) SIDBI (d) IRDAI
Sol. .(a) NPCI is primarily an umbrella
organisation for operating retail payments
and settlement systems in India. NPCI
provides online transaction routing,
processing, and settlement services to
members participating in UPI.
Q. 331. An asset that has remained in the
substandard category for a period of 12
months is classified as a _____ asset by a
bank.
(a) liquid (b) non-performing
(c) doubtful (d) loss
Sol. (c) An asset that has remained in the
substandard category for a period of 12
months is classified as a doubtful asset by a
bank.
Q. 332. Which of the following does NOT
figure among the main objectives of the Self
Help Groups in India?
(a) To provide loans with collateral
(b) To provide a platform to discuss and act
on domestic violence
(c) To collect savings of their members
 (d) To organise the rural poor into the
formation of groups
Sol. (a) The main objective of Self Help
Groups (SHGs) does NOT include providing
loans with collateral. In fact, SHGs provide
collateral-free loans i.e. loans without the
need of any collateral. Hence, SHGs become
a vehicle of change for the poor and
marginalized sections of the society.
Q. 333. Who among the following has
served as the Deputy Chairman of the
Planning Commission of India?
(a) Pranab Mukherjee
(b) Ramaswamy Venkataraman
(c) Pratibha Patil
(d) Giani Zail Singh
Sol. (a) Pranab Mukherjee has served as the
Deputy Chairman of the Planning
Commission of India. Bharat Ratna 2019-
Nanaji Deshmukh (Posthumous) Bhupen
Hazarika (Posthumous) Pranab Mukherjee.
He was the 13th president of India.
Q. 334. Who among the following is
credited with giving a theory of population
growth in his work titled 'Essay on
Population' (1798)?
(a) Thomas Robert Malthus
(b) Karl Marx
(c) Adam Smith
(d) Friedrich Engels
Sol. (a) Thomas Robert Malthus is credited
with giving a theory of population growth in
his work titled 'Essay on Population' (1798).
In it,Malthus theorized that population
would continue expanding until growth is
stopped or reversed by disease, famine,
war, or calamity.
Q. 335. Which classical economist
popularised the following phrase: "From
each according to his ability, to each
according to his needs”?
(a) David Ricardo
(b) John Stuart Mill
(c) Adam Smith
(d) Karl Marx
Sol. (d) Karl Marx popularised the following
phrase: "From each according to his ability,
to each according to his needs”. He is
famous for his theories about capitalism
and communism. Famous work-"The
Communist Manifesto". Karl Marx wrote
"Das Kapital" .
Q. 336. According to the 2011 Census of
India, the decadal growth rate of India was
around:
(a) 19.3% (b) 15.6%
(c) 17.7% (d) 20.5%
Sol. (c) According to the 2011 Census of
India, the decadal growth rate of India was
around 17.7%.
Q. 337. Consumer Protection Act was
enacted in ______. SSC MTS
(a) 1990 (b) 1986
(c) 1992 (d) 1985
Sol. (b) The Consumer Protection Act, 1986
was enacted to provide simpler and quicker
access to redressal of consumer grievances.
Q. 338. Which economist took the subject
of economics away from approaches that
focus exclusively on income, growth, and
utility, witan increased emphasis on
individual entitlements, capabilities,
freedoms, and rights?
(a) Robert Lucas
(b) Amartya Sen
(c) Milton Friedman
(d) Adam Smith
Sol. (b) Amartya Sen took the subject of
economics away from approaches that
focus exclusively on income, growth, and
utility, with an increased emphasis on
individual entitlements, capabilities,
freedoms, and rights. Amartya Sen is
famous for his significant contributions to
welfare economics (for which he was
awarded the 1998 Nobel Prize in
economics).
Q. 339.The Imperial Bank of India was
renamed as ____in 1955.
(a) Central Bank of India
(b) The State Bank of India
(c) Allahabad Bank
(d) Punjab National Bank
Sol. (b) State Bank of India , Imperial Bank
of India in 1955 was renamed as State bank
of India. The Bank of Madras was merged
with the other two, Bank of Calcutta and
the Bank of Bombay, to form the Imperial
Bank of India.
Q. 340. When was NABARD established ?
(a)1982 (b)1980
(c)1986 (d)1984
Sol. (a) National Bank for Agriculture and
Rural Development (NABARD) is an apex
development financial institution in India,
headquartered at Mumbai with regional
offices all over India. NABARD was
established on the recommendations of the
B.Sivaraman Committee, on 12 July 1982.
Q. 341. Who was the economist who wrote
the book ‘Small is beautiful”?
(a) Karl Marx
(b) David Ricardo
(c) E.F. Schumacher
(d) Amartya Sen
Sol. (c) E.F. Schumacher , Small is beautiful
is a book written by E.F. Schumacher. It was
published in 1973.
Q. 342. Who among the following was NOT
a governor of the Reserve Bank of India?
(a) D. Subbarao
(b) Manmohan Singh
(c) M Narasimham
(d) M S Gill
Sol. (d) M S Gill Manohar Singh Gill is an
Indian politician, of the Indian National
Congress party, has served as the Minister
of Youth Affairs and Sports. He represents
Punjab in the Rajya Sabha, the upper house
of the Indian Parliament. He has never
acted as a Governor of RBI.
Q. 343. Name the ‘Father of Indian
Economic Reforms’
(a) Narendra Modi
(b) PV Narasimha Rao
(c) Manmohan Singh
(d) Yashwant Sinha
Sol. (b) PV Narasimha Rao, Former Prime
Minister PV Narasimha Rao is known as the
father of Indian economic reforms. He along
with Dr. Manmohan Singh, Finance minister
of that time introduced the policy of LPG
Which revived the Indian economy
Q. 344. Which of the following is the first
port in India to become a public company?
(a) Kandla (b) Mangalore
(c) Ennore (d) Mormugao
Sol.(c) Ennore port is a port in coromandel
cost 18km north of chennai is one of the
major ports of south india and india is the
first port in India to become a public
company.
Q. 345. Who founded the Indian Statistical
Institute on 17 December 1931? (a) P.C.
Mahalanobis
(b) R.A. Fischer
(c) F. Yates
(d) M.H. HSolen
Sol. (a) Established in 1931, by
P.C.Mahalanobis. It is one of the most
prestigious institutions of statistics in India.
In 1959, it was recognised as the institute of
national importance. ISI has its
headquarters in Baranagar, Kolkata, West
Bengal.
Q. 346. The Khadi and Village Industries
Commission Act was passed in the
year______.
(a)1956 (b)1948
(c)1964 (d)1965
Sol. (a) 1956, The Khadi and Village
Industries Commission Act 1956. An Act to
provide for the establishment of a
Commission for the development of Khadi
and village industries and for matters
connected therewith.
Q. 347. Which of the following cities houses
the headquarters of the Union Bank of
India?
(a) Mumbai (b) Lucknow
(c) Mangalore (d) Kolkata
Sol . (a) Mumbai The headquarters of Union
Bank of India is in the prestigious Nariman
Point area of Mumbai, a stone's throw from
the famous Marine Drive.
Q. 348. In which year was the State
Financial Corporation Act passed ? The Act
provides for the establishment of state
financial corporations.
(a) 1972 (b) 1983
(c) 1951 (d) 1947
Sol. 7(c) STATE FINANCIAL CORPORATION
ACT, 1951. An Act to provide for the
establishment of State Financial
Corporations. The Union Parliament passed
the State Financial Corporation Act on
September 28, 1951 empowering the state
governments to establish financial
corporations for their respective regions.
Q. 349. Which of the following banks was
founded by Muttaiya Chidambaram
Chettiar in Chennai in 1937 ?
(a) Canara Bank
(b) Indian Overseas Bank
(c) Syndicate Bank
(d) Dhanlaxmi Bank
Sol. (b) Indian Overseas Bank ,
Chidambaram Chettiar was the founder of
the Indian overseas bank. On 10 February
1937, he founded the Indian Overseas Bank,
With the initiative to improve the country’s
industrial sector. It is headquartered in
Chennai, India.
Q. 350. A company that has been founded
after 2003 and that has a current valuation
of more than 1 billion USD is referred to as
in the industry by which term?
(a) Unicorn Startup Company
(b) Blue Moon Startup Company
(c) Stratosphere Startup Company
(d) 5th Gear Startup Company
Sol. 9. (a) Unicorn startup companies are
the companies which are set up after 2003
and have a net worth of more than 1 billion
US dollar. There are a total 39Indian
companies certified under this title.
Q. 351. Who among the following i co-
founder of e-commerce store Flipkart ?
(a) Peyush BSolal
(b) Vishal Sikka
(c) Binny BSolal
(d) Rohit BSolal
Sol. (c) Binny Bansal along with Sachin
BSolal is the founder of one of the largest e-
commerce company Flipkart.
Q. 352.______ Bank has become the first
bank in the country to introduce Iris Scan
Authentication feature for Aadhaar-based
transactions through its micro ATM tablets.
(a) Axis (b) Canara
(c) Bandhan (d) Yes
Sol. (a) Axis , Mumbai, Aug 09, 2018: Axis
Bank has become the first bank in the
country to introduce Iris Scan
Authentication feature for Aadhaar-based
transactions through its micro ATM tablets.
Q. 353. Badhti ka naam zindagi’ is the
tagline of which of the following banks ?
(a) Syndicate (b) Axis
(c) Corporation (d) Indian
Sol. (b) Axis , Tagline of Axis Bank is ‘Badhti
ka naam zindagi’.
Q. 354. The name of UTI Bank was changed
to _____ in 2007.
(a) HDFC Bank (b) IDBI Bank
(c) Centurion Bank (d) Axis Bank
Sol. (d) Axis Bank , The name of the
country's third largest private sector lender
UTI Bank has been officially changed to Axis
Bank Ltd with effect from 30 July, 2007.
Q. 355. Where is the headquarters of Bank
of Baroda located?
(a) Pune (b) Kolkata
(c) Vadodara (d) Mumbai
Sol. (c) Vadodara , The Headquarters of
Bank of Baroda is in Vadodara.
Q. 315. What is the tagline of UCO Bank ?
(a) Where every individual is committed.
(b) Faithful and friendly
(c) Honours your Trust
(d) Good people to Bank with
Sol. (c) Honours your Trust , The
background has remained yellow since the
beginning as well. The motto UCO Bank is
"Honours your Trust".Place founded:
Kolkata
Q. 356. Which organization publishes
‘World Development Report’?
(a) United Nations Development
Programme (UNDP)
(b) World Economic Forum
(c)International Monetary Fund (IMF)
(d) World Bank
Sol. (d) World Bank , World Development
Report-The World Development Report
(WDR) is an annual report published since
1978 by the International Bank for
Reconstruction and Development (IBRD) or
World Bank. Each WDR provides in-depth
analysis of a specific aspect of economic
development.
Q. 357. ’Rani ki vav’ motif is present on
which of the following currency notes ?
(a) 50 Rupee Note
(b) 200 Rupee Note
(c) 10 Rupee Note
(d) 100 Rupee Note
Sol. (d) 100 Rupee Note , A 100 rupee note
has ‘Rani ki Vav’ printed at its back side. It is
a UNESCO World Heritage site in Gujarat.
200 rupee note has Sachi stupa
10 rupee note has Konark Temple
50 rupee note has hampi.
Q. 358. Which of the following motif is
present on 2000 Rupee Note of Indian
currency ?
(a) Mangalyaan
(b) Sanchi Stupa
(c) Sun Temple
(d) Hampi with Chariot
Sol(a) Mangalyaan , The new note has Motif
of Mangalyaan (Mars mission) on the
reverse. The colour of the note is magenta
and the size is 66 mm × 166 mm. Sanchi
stupa is on the 200 rupee note Sun temple
is on 10 rupee note , Hampi the chariot is
on 50 rupee note
Q. 359 Where is the headquarters of
Allahabad Bank situated?
(a) Allahabad (b) Hyderabad
(c) Mumbai (d) Kolkata
Sol. (d) Kolkata , Allahabad Bank is a
nationalised bank with its headquarters in
Kolkata, India. It is the oldest joint stock
bank in India. On 24 April 2014, the bank
entered into its 150th year of
establishment. The bank was founded in
Allahabad in 1865.
Q. 360. Which of the following departments
publishes the Index of Industrial
Production(IIP) ?
(a) Central Statistics Office
(b) National Sample Survey Organisation
(c) Department of Industrial Policy and
Promotion
(d) Labour Bureau
Sol. (a) Central Statistics Office The Central
Statistics Office (CSO) is a department
under "Ministry of Statistics and Program
Implementation" which collects and
publishes data related to the Index of
Industrial Production (IIP) since 1950.
Q. 361._______, the code-breaker during
World War II has been chosen by Bank of
England to feature on Britain’s new E50
note.
(a) Michael Faraday
 (b) Sir Christopher Wren
(c) Sir John Houblon
(d) Alan Turing
Sol. (d) Alan Turing, the computing pioneer
who became one of the most influential
code breakers of World War II, has been
chosen by the Bank of England to be the
new face of its 50-pound note.
Q. 362. Which of the following quality
marks are NOT correctly matched ?
(a) AGMARK - agricultural products
(b) HALLMARK - silver jewelry
(c) FPO - processed food products
(d) ISI - semi-processed food products
Sol. (d) The ISI mark is a standards-
compliance mark for industrial products in
India since 1955. The mark certifies that a
product conforms to an Indian standard (IS)
developed by the Bureau of Indian
Standards (BIS), the national standards
body of India.
Q. 363. PRASAD Scheme has been launched
under which Ministry?
(a) Ministry of External Affairs (b) Ministry
of Tourism
(c) Ministry of Housing and Urban affairs
(d) Ministry of Culture
Sol. (b) Ministry of Tourism , It was
launched by the Union Ministry of Tourism.
It aims at integrated development of
pilgrimage destinations in planned,
prioritised and sustainable manner to
provide complete religious tourism
experience.
Q. 364. How many languages are there on
the language panel of Indian currency notes
?
(a) 12 (b) 17
(c) 15 (d) 10
Sol. (c) 15 , There are 15 languages written
on the Indian currency language panel.
These languages are Assamese, Bengali,
Gujarati, Kannada, Kashmiri, Konkani,
Malayalam, Marathi, Nepali, Oriya, Punjabi,
SSolkrit, Tamil, Telugu, and Urdu. Apart
from these languages Hindi and English
language is also written on the Indian
currency.
Q. 365. Where is the head office of
Syndicate Bank situated ?
(a) Bangalore (b) New Delhi
(c) Manipal (d) Kolkata
Sol. (c) Manipal , Headquarter of Syndicate
bank is in Manipal, Karnataka.
Q. 366. On which of the following notes the
motif of Sanchi Stupa is present?
(a) 2000 Rupee Note
(b) 100 Rupee Note
(c) 500 Rupee Note
(d) 200 Rupee Note
Sol. (d) 200 Rupee Note
Motif of 2000 note is Mangalyaan
Motif of 500 note is Red Fort
Motif of 200 note is Sanchi Stupa
Motif of 100 note is Rani ki Vav
Q. 367. Asian Infrastructure Investment
bank headquarter is located in which city ?
(a) Philippines (b) Gurugram
(c) Shanghai (d) Beijing
Sol. (d) Beijing , The Asian Infrastructure
Investment Bank (AIIB) is a multilateral
development bank headquartered in
Beijing. Like other development banks, its
mission is to improve social and economic
outcomes in its region, Asia, and beyond.
Q. 368.“Healthy States, Progressive India”
Report has been published by which of the
following institutions?
(a) Ministry of Health and Family Welfare
(b)WHO
(c) United Nations
(d) Niti Aayog
Sol. (d) Niti Aayog , Healthy States,
Progressive India Report is a comprehensive
Health report released by the National
Institution for transactions India (NITI
Aayog).
Q. 369.The situation in an economy where
unemployment is prevailing is known as
_______.
(a) Galloping Inflation
(b) Stagflation
(c) Hyperinflation
(d) Individual Debt
Sol. (b) Stagflation , A stagflation is a
condition when the economic rate is slow,
Inflation is high and Unemployment is also
high.
Q. 370. Who will be the beneficiaries under
‘Pradhan Mantri Shram Yogi Maandhan
Scheme’?
(a) Widows working in organised sector
(b) Grade-D govt employees
(c) People working in unorganised sector
(d) People working in organised sector
Sol. (c) People working in unorganised
sector , The Pradhan Mantri Shram Yogi
Maan-dhan scheme is meant for old-age
protection and social security of
unorganised workers. This scheme is mainly
for mid-day meal workers, rickshaw pullers,
street vendors, head loaders, brick kiln
workers, cobblers, rag pickers, and similar
peoples like them.
Q. 371. Which Economic Survey was also
called ‘Pink Economic Survey’?
(a) Economic Survey 2017-18
(b) Economic Survey 2015-16
(c) Economic Survey 2016-17
(d) Economic Survey 2018-19
Sol. (a) Economic Survey 2017-18 , The
Economic Survey 2017-18 is printed in pink
colour to underline the importance of
gender issues to the economy. The survey
points out that the North-Eastern states (a
model for the rest of the country)
consistently out-perform others.
Q. 372. Where is the head office of Vijaya
Bank situated?
(a) Kolkata (b) Banglore
(c) Mumbai (d) Delhi
Sol. (b) Banglore , Vijaya Bank was a public
sector bank with its corporate office in
Bengaluru, Karnataka, India. It was one of
the nationalised banks in India.
Q. 373. Which central agency is responsible
for promoting cooperative marketing of
agricultural produce to benefit the farmers?
(a) FCI (b) RBI
(c) SEBI (d) NEFED
Sol. (d) National Agricultural Cooperative
Marketing Federation of India Ltd. (NAFED)
was established 2nd October 1958. Nafed
was set up with the objective to promote
Cooperative marketing of Agricultural
Produce to benefit the farmers.
Q. 374. Which of the following is an
international agreement between
governments that aims to ensure that
international trade in specimens of wild
animals and plants does not threaten their
survival ?
(a) CITES (b) BRICS
(c) OPEC (d) GATS
Sol. (a) CITES (the Convention on
International Trade in Endangered Species
of Wild Fauna and Flora) is an international
agreement between governments.. Its aim
is to ensure that international trade in
specimens of wild animals and plants does
not threaten their survival.
Q. 375. In which of the following sectors,
100% FDI in equity in India is NOT permitted
as per India’s FDI policy ?
(a) Wholesale trading
(b) Single-brand product retail trading
(c) E-commerce activities
(d) Multi-brand product retail trading
Sol. (d) Multi-brand product retail trading ,
In August 2019, the government has
allowed 100% FDI in contract
manufacturing and single brand retailing.
Q. 376. In which city is the head office of
the Insurance Regulatory and Development
Authority of India (IRDAI) situated ?
(a) Hyderabad (b) Mumbai
(c) Kolkata (d) New Delhi
Sol. (a) Hyderabad , The headquarters of
Insurance Regulatory and Development
Authority (IRDA) of India is located in
Hyderabad.
Q. 377. In which year was NABARD
established ?
(a) 1979 (b) 1982
(c) 1981 (d) 1978
Sol. (b) 1982 ,NABARD was established on
the recommendations of B. Sivaraman
Committee, (by Act 61, 1981 of Parliament)
on 12 July 1982 to implement the National
Bank for Agriculture and Rural Development
Act 1981.
Q. 378. The term 'white revolution' is
related with :
(a) crops (b) fish
(c) milk (d) egg
Sol. (c) milk , The White Revolution also
known as Operation Flood was launched in
the 1970s to make India self dependent in
milk production. Dr. Verghese Kurien is
known as the Father of the White
Revolution in India.