Economics
332 solved SSC CGL Economy previous year questions on Economics, each with the correct answer and a full explanation.
Q1
One of the following is also called as World Bank.
✓ Correct answer: b) IBRD
ExplanationThe term “World Bank” refers to a group of international financial institutions that provide loans and grants for development.Its main lending institution is the International Bank for Reconstruction and Development (IBRD), established in 1944. The World Bank today consists of IBRD + IDA (International Development Association), but the IBRD is most directly identified as the "World Bank." Other options: IMF (International Monetary Fund) → Manages global monetary cooperation and exchange rates.WTO (World Trade Organization) → Regulates global trade.IDA → Concessional lending arm of the World Bank Group, but not itself called “World Bank.” Hence, the correct answer is "IBRD".
Q2
What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sections?
✓ Correct answer: c) Regressive tax
ExplanationIn a regressive tax system, poorer sections bear a higher tax burden compared to richer sections.The tax rate decreases as income increases, so the poor pay a larger share of their income.Example: Indirect taxes like GST or sales tax affect low-income groups more.This is opposite to a progressive tax, where the rich are taxed at higher rates.
Q3
Which one of the following is not an instrument of Fiscal policy?
✓ Correct answer: a) Open Market Operations
ExplanationFiscal policy uses tools like taxation, public expenditure, and public borrowing to influence the economy.Open Market Operations (OMO) are a monetary policy tool used by the RBI to control money supply and interest rates, not part of fiscal policy.So, while taxation, borrowing, and expenditure are fiscal instruments, OMO is not.
Q4
What is the name of portal launched by RBI recently to check illegal money collection?
✓ Correct answer: d) Sachet
ExplanationRBI launched the Sachet portal to check illegal money collection activities.It allows people to lodge complaints against unauthorised deposit schemes.The portal provides details of entities allowed to accept deposits.It promotes awareness and protection for depositors against fraud.
Q5
When the demand for a good increases with an increase in income, such a good is called
✓ Correct answer: d) Normal good
ExplanationNormal Good → Demand increases when income increases.Inferior Good → Demand decreases when income increases (people shift to better alternatives).Superior Good (Luxury) → High-quality goods, demand rises more than proportionally with income.Giffen Good → Special case of inferior goods where demand increases even when price rises (rare).Hence, the correct answer is "Normal Good".
Q6
Which of the following produces the most solid waste?
✓ Correct answer: c) Manufacturing
ExplanationManufacturing generates the most solid waste, especially in industrialized regions.This includes by-products, scrap materials, packaging waste, and chemical residues.Industries such as mining, metal production, and chemical manufacturing contribute heavily to this waste.Proper waste management and recycling are critical in minimizing environmental impacts.Hence, the correct answer is C) Manufacturing.
Q7
The term 'Macro Economics' was used by __________ .
✓ Correct answer: b) Ragner Frisch
ExplanationMacro Economics studies the economy as a whole (total output, employment, inflation).The term was first used by Ragnar Frisch in 1933. It is different from Micro Economics, which studies individual units like households and firms.Key focus areas include GDP, national income, unemployment, and inflation.
Q8
Disguised unemployment in India is mainly related to?
✓ Correct answer: a) Agricultural sector
ExplanationDisguised unemployment means extra people are employed than actually required, so their removal doesn’t affect total output.In India, it is mainly found in the agricultural sector, especially in rural areas.Example: 5 people working on a farm where 3 can produce the same output, the extra 2 are disguisedly unemployed.It shows underemployment, not complete joblessness.Hence, the correct answer is “Agricultural sector”.
Q9
What situation would result if Government expenditure exceeds the Government revenue on Current Account?
✓ Correct answer: a) Deficit budgeting
ExplanationGovernment expenditure > Government revenue on current account means spending is higher than income.This gap between income and expenditure creates a shortfall.Such a shortfall in the budget is termed as a deficit.Hence, the correct answer is "Deficit budgeting".
Q10
IMF has predicted that the global economy would grow at _______% in 2017.
✓ Correct answer: c) 3.5
ExplanationIn April 2017, the International Monetary Fund (IMF) released a report.According to the report, IMF anticipated the global economy to expand by 3.5%.This projection was based on various economic indicators and trends analyzed by IMF experts.The forecast suggested moderate growth for the global economy amidst prevailing economic conditions.Factors such as trade dynamics, monetary policies, and geopolitical events were considered in making this prediction.IMF's forecast served as a reference point for policymakers, businesses, and investors worldwide.Hence, the correct answer is "3.5."
Q11
Who gave the 'General Equilibrium Theory'?
✓ Correct answer: b) Leon Walras
Explanation‘General Equilibrium Theory’ was formulated by Leon Walras.It is also known as Walrasian Theory.He discussed General Equilibrium Theory in his book ‘ Elements of Pure Economics’.It describes the workings of the macroeconomy as a whole in place of assets of individual market anomalies.It also explains that the interaction of demand and supply results in an overall general equilibrium.This theory assumes a gap between actual and equilibrium prices.Adam Smith is known as the Father of Economics. and he is famous for his book ‘Wealth of Nations’.Hence, the correct answer is “Leon Walras”.
Q12
The ________ exchange rate is the relative price of foreign goods in terms of domestic goods.
✓ Correct answer: d) Real
ExplanationReal exchange rate is the ratio of price level abroad and domestic price level where foreign price level gets converted into domestic currency units through the current nominal exchange rate.It is the ratio of the foreign price level and domestic price level multiplied by the nominal exchange rate.Nominal exchange rate is the price of foreign currency in terms of the domestic currency.Fixed exchange rate is also known as a pegged exchange rate in which the value of a currency is fixed against the value of another currency.Hence, the correct answer is “Real”.
Q13
Union Cabinet approves amendments in M- SIPS to attract investment in electronics manufacturing. What is the full form of M- SIPS?
✓ Correct answer: c) Modified Special Incentive Package Scheme
ExplanationThe M-SIPS stands for Modified Special Incentive Package Scheme.It's a government initiative aimed at attracting investments in the electronics manufacturing sector.The scheme provides financial incentives to offset disabilities faced by electronics manufacturing companies in India.These incentives are designed to promote the growth of the domestic electronics manufacturing ecosystem.The Union Cabinet's approval of amendments signifies a commitment to further enhancing investment attractiveness.The amendments are likely to streamline processes and make the scheme more responsive to industry needs.Hence, the correct answer is "Modified Special Incentive Package Scheme."
Q14
_____ says that the marginal product of a factor input initially rises with its employment level. But after reaching a certain level of employment, it starts falling
✓ Correct answer: b) Law of variable proportions
ExplanationThe law of variable proportions explains that when one factor of production is increased while others are held constant, the marginal product of that variable factor will initially increase.However, as more of the variable factor is employed, there comes a point where the marginal product begins to decline.This occurs due to factors such as limited space, equipment, or other fixed resources that can't be easily expanded.The law illustrates the idea that there's an optimal level of input usage beyond which efficiency decreases.This phenomenon is crucial for understanding production decisions and resource allocation in the short run.Hence, the correct answer is "Law of variable proportions."
Q15
Which tax causes a burden on the poorer section of the society?
✓ Correct answer: b) Indirect Tax
ExplanationMoney is essential to run a government and manage its affairs.For this, the government imposes a variety of taxes on the earnings of individuals and businesses.There are two types of taxes - direct taxes and indirect taxes.Direct taxes are imposed on individuals and companies by the country's supreme tax body.These taxes are directly paid by those on whom it is imposed.For instance, taxpayers directly pay income tax, tax on assets, and gifts to the government.Indirect taxes are imposed on goods and services and their final burden falls on the consumers.That is why it causes a burden on the poorer section of society.For eg - It doesn't matter how much you earn, you have to pay the same amount of tax on toothpaste as the other ones.Hence, the correct answer is “Indirect tax”
Q16
The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.
✓ Correct answer: a) Current Account
ExplanationThe current account reflects the balance of goods and services and net transfers received from the rest of the world.It includes transactions like the purchase of goods and machinery, as well as investments made.The capital account, on the other hand, includes capital transactions such as investments in assets.Together, the capital and current accounts constitute the Balance of Payments, which records a country's economic transactions with the rest of the world.Hence, the correct answer is "Current Account."
Q17
Which of the following is represented by 'The Lorenz Curve'?
✓ Correct answer: d) Income Distribution
ExplanationThe Lorenz curve is a graphical tool used to represent the distribution of income or wealth within a population.It was created by Max O. Lorenz in 1905 to show economic inequality.The curve plots the cumulative percentage of total income received against the cumulative percentage of recipients, starting from the poorest to the richest.A perfectly equal income distribution would be represented by a 45-degree line, known as the line of equality.The more the Lorenz curve bows away from the line of equality, the greater the inequality.Hence, the correct answer is "Income Distribution."
Q18
Goods for which the quantity that a consumer chooses increases as the consumer's income increases and decreases as the income decreases are called?
✓ Correct answer: b) Normal goods
ExplanationNormal goods are goods whose demand rises when consumer income increases.Conversely, their demand falls when consumer income decreases.Examples include clothing, electronics, and branded products.They are different from inferior goods, whose demand decreases as income rises.Hence, the correct answer is "Normal goods".
Q19
Which one of the following is a component of Food Security System?
✓ Correct answer: a) Buffer stock
ExplanationBuffer stock is a measure of the Food Security System.It is the central stock maintained by the Government of India to meet the demand for various purposes of food security, such as taking care of emergency situations.Emergency situations can be crop failure due to climate change or stabilization of prices by way of market intervention.Minimum Support Price (MSP) is the assured price at which food grains are procured from farmers by the central and state governments and their agencies, for the central pool of foodgrains.Fair Price Shop means a shop which has been licensed to distribute essential commodities , to the ration card holders under the Targeted Public Distribution System.The term is defined in Section 2(4) of National Food Security Act, 2013. Mid-day meal (MDM) is a wholesome freshly-cooked lunch served to children in government and government-aided schools in India.Hence, the correct answer is "Buffer Stock".
Q20
Citizen of which neighbouring country does not require a passport or visa to enter India?
✓ Correct answer: c) Nepal
ExplanationCitizens of Nepal can enter India without a passport or visa.They can use their driver’s license, voter’s ID card, or ration card as identity proof.Nepali citizens can stay and work in India indefinitely without the need for a visa.Similarly, Indians going to Nepal enjoy similar ease of travel.This relaxed border policy fosters strong cultural and economic ties between the two nations.Hence, the correct answer is "Nepal."
Q21
In April 2017, the G20 Digital Ministerial Meeting on Digital Economy was held in which country?
✓ Correct answer: b) Germany
ExplanationThe G20 Digital Ministerial Meeting on Digital Economy took place in Dusseldorf, Germany.Ministers representing the digital economy from G20 nations participated in the event.The meeting resulted in the adoption of a declaration titled ‘Shaping Digitalisation for an Interconnected World’.Discussions revolved around various aspects of digitalization and its impact on global interconnectedness.The event aimed to foster collaboration and strategic planning among G20 countries in the digital sphere.Hence, the correct answer is "Germany."
Q22
Movement along the supply curve is known as_______.
✓ Correct answer: d) Expansion and contraction of supply
ExplanationThe movement along the supply curve takes place when all the factors affecting supply remain constant and only the price changes.Hence, when the price increases supply contracts, and when the price decreases supply expands.A rise or fall in the price of the commodity alone causes a movement along the supply curve.A movement along a supply curve represents a change in quantity supplied.It is caused by a change in the price of goods.There is a direct relationship between price and quantity supplied.Hence, The correct answer is "Expansion and contraction of supply".
Q23
Medium-term loans are provided for a period of ______.
✓ Correct answer: d) 1 year to 3 years
ExplanationThe long-term loan can be cleared or repaid within a time limit of 20-30 years.Medium-term loans where settlements are made over a period between one and three years.The Short-term loan is basically for less than a year.Hence, the correct answer is “1 year to 3 years”.
Q24
Which one of the following is not an instrument of credit control in India?
✓ Correct answer: d) Variable cost reserve ratios
ExplanationInstrument of credit control refers to the instruments that are introduced by the RBI to control the money supply.These can be classified into Quantitative and Qualified instruments.Quantitative instruments include Bank rate, Repo rate, Reverse Repo rate, CRR, SLR and Open Market Operations while Qualitative instruments include Margin requirement, Rationing of credit, Direct Action and Moral Suasion.Rationing of credit is introduced when the supply of credit is to be checked by the RBI, particularly for speculative activities.Direct action is adopted when commercial banks do not cooperate with the RBI in controlling credit.Open Market Operations refer to the purchase and sale of securities in the open market by the RBI on behalf of the government.Hence, the correct answer is “Variable cost reserve ratios”.
Q25
In a centrally planned economy, the ________ plans all the important activities in the economy.
✓ Correct answer: c) Government
ExplanationCentrally planned economy is a system in which the government makes economic decisions rather than the interaction between businesses and consumers.Government of a centrally planned economy decides when and where production and investment will be directed.This economy is also known as a command economy as prices are controlled by a centrally managed government.This economy is different from a market economy in which market decisions are taken by businesses and consumers.Hence, the correct answer is “Government”.
Q26
Which of the following is not true about a Demand Draft?
✓ Correct answer: c) It may be dishonored for lack of funds.
ExplanationDemand Draft cannot be dishonored by the Bank for the lack of funds.This is because Demand Draft guarantees the amount of money for which it is pledged and that money is taken before the draft is issued.Demand draft is a negotiable instrument that is similar to a bill of exchange.Bank issues a demand draft to its client, directing another bank or its branch to pay a certain sum to a specific party.Hence, the correct answer is “It may be dishonored for lack of funds”.
Q27
When there is only one buyer and one seller of the product, it is called a ______ situation.
✓ Correct answer: b) Bilateral monopoly
ExplanationA bilateral monopoly involves a single buyer (monopsony) and a single seller (monopoly) of a product.It's like a tug-of-war between the buyer and seller, each having significant market power.Think of a labor union, which monopolizes labor supply, negotiating with a monopsonist, a single large employer in a town.The dynamics involve intense bargaining power struggles due to the limited options available.The buyer and seller have considerable influence over the price and quantity of the product or service.This scenario often leads to complex negotiations and sometimes even to inefficient outcomes.Hence, the correct answer is "Bilateral monopoly."
Q28
_________says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output (i.e., the marginal product of that input) will start falling.
✓ Correct answer: a) Law of diminishing marginal product
ExplanationLaw of diminishing marginal product says that while increasing one input and keeping other inputs at the same level may initially increase output, further increases in that input will have a limited effect, and eventually negative or no effect on the output.Law of variable proportions says that ‘ an increase in some inputs relative to other fixed inputs will in a given state of technology cause output resulting from same additions of extra inputs will become less.In the short-run scenario, any one of the factors which are associated with production is fixed.In the long run, factors associated with production as well as associated costs are variable in nature.Hence, the correct answer is “Law of diminishing marginal product”.
Q29
______ is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.
✓ Correct answer: c) Isoquant
ExplanationAn isoquant shows the possibilities of any two inputs that result in the same output level.A set of technically effective operations that produce the same result are expressed by an isoquant.It is a curve that depicts all conceivable resource combinations that can result in a specific level of output based on the substitutability of inputs.Hence the correct answer is "Isoquant".
Q30
Which of the following is not a component of monetary policy in India?
✓ Correct answer: d) Public Debt
ExplanationPublic Debt (Government Debt) is the debt owed by the government, whereas monetary policy is framed and implemented by the RBI.Monetary policy tools include Repo Rate, Moral Suasion, and Credit Rationing, which are directly controlled and employed by the Reserve Bank of India (RBI).Public Debt does not fall within the ambit of RBI's monetary policy measures and is managed separately by the government.Public debt includes the total liabilities of the Union government that have to be paid from the Consolidated Fund of India, and it is a key indicator of the government's financial health.Almost a fourth of the government expenditure goes into interest payment, highlighting the significant impact of public debt on government finances.Hence, the correct answer is "Public Debt."
Q31
..................of an input is defined as the change in output per unit of change in the input when all other inputs are held constant.
✓ Correct answer: a) Marginal product
ExplanationMarginal product of input or factor of production is a change in output resulting from employing one more unit of a particular input.Example, change in output when a firm's labor is increased from five to six units, assuming that quantities of other inputs are kept constant.Hence, the correct answer is “Marginal product”.
Q32
The closest example of a centrally planned economy is the ____ for the major part of the 20th Century.
✓ Correct answer: c) Soviet Union
ExplanationThe closest example of a centrally planned economy is the Soviet Union for the major part of the 20th Century.A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.The economy of the Soviet Union was based on a system of state ownership of the means of production, collective farming, and industrial manufacturing.The main character of the command economy is centralized administrative planning.Hence the correct answer is “ Soviet Union.”
Q33
Who takes the decision regarding the savings and loan activities in a Self Help Group (SHG)?
✓ Correct answer: b) Members of group
ExplanationSelf-help groups are informal groups of people who come together to address their common problems.While self-help might imply a focus on the individual, one important characteristic of self-help groups is the idea of mutual support – people helping each other. .The Reserve Bank of India(RBI) was established following the Reserve Bank of India Act of 1934. It was nationalized in 1949. It is the central bank of India.A nongovernmental organization (NGO) is an organization independent of the government whose primary mission is not commercial and that focuses on social, cultural, environmental, educational, and other issues.Private sector banks are those whose stock is primarily owned by private companies or individuals.Hence, the correct answer is “Members of group”.
Q34
In which market form, a market or an industry is dominated by a single seller?
✓ Correct answer: b) Monopoly
ExplanationMonopoly refers to a market structure where only one seller controls the entire market supply.It is characterized by maximizing profits for the single seller.Monopolies lack economic competition, as there is no rival to challenge the dominant position of the seller.Consumers have no visible substitute goods available in the market, leaving them limited choices.Due to the absence of competition, monopolies often set high prices for their products or services.Hence, the correct answer is "Monopoly."
Q35
Which among the following is an example of the micro-economic variable?
✓ Correct answer: d) Consumer's Equilibrium
ExplanationMicro-economic variables are those variables, values, or figures that help studying the individual unit of the economy.Example- Price, Quantity, Consumer's Equilibrium, hours worked, incomes in currency units, acres of land, and a number of employees, etc. Macroeconomic variables are used to study the economy as a whole.Examples- National Income, Aggregate supply, Aggregate demand, Employment levels, Inflation, GDP, etc. National income is the total amount of income accruing to a country from economic activities in a fixed period of time (i.e., One Year).It includes payments made to all resources either in the form of wages, interest, rent, and profits.Aggregate supply refers to the total supply of services and goods produced within an economy in a given period at a given price.Employment refers to the state of having a paid job.Consumer Equilibrium refers to a state of maximum satisfaction for the consumer.Hence, the correct answer is “Consumer Equilibrium”.
Q36
From which of the following, is the GDP of a country not derived from?
✓ Correct answer: c) International sector
ExplanationIf we sum the gross value added of all the firms of the economy in a year, we get a measure of the value of the aggregate amount of goods and services produced by the economy in a year.Such an estimate is called Gross Domestic Product (GDP).A nation's agricultural, industrial, and service sectors contribute to its GDP.Agriculture consists of fishing, forestry, and farming.Manufacturing, energy generation, and building fall under industry.Government, communications, transportation, finance, and other private economic activities that don't result in the production of tangible things are all considered services.Hence, the correct answer is " International sector".
Q37
Which of the following rates is charged by banks to their most creditworthy customers?
✓ Correct answer: a) Prime Lending Rate
ExplanationThe prime lending rate is the rate banks lend to their most creditworthy customers, typically large corporations and institutions.This rate is a benchmark for other types of loans, such as credit cards and small- business loans.It is determined by factors like the central bank's policy rate, prevailing economic conditions, and the bank's operating costs.Banks adjust their prime lending rates periodically in response to changes in the broader economic environment and monetary policy objectives.Hence, the correct answer is "Prime Lending Rate."
Q38
After which five-year plan, 'The Rolling Plan' was implemented?
✓ Correct answer: b) Fifth Plan
Explanation'The Rolling Plan' was a two-year plan and was implemented after the fifth five- year plan.It was implemented from 1978 to 1980 and was brought by the Janata Party government.The third five-year plan was implemented from 1961 to 1966. This plan was introduced to take the development effort that started ten years ago one step further.The plan was signifying the first phase of a system of long-term expansion that would last about 15 years.The Seventh Five-Year Plan was proposed in 1985 to help India reach its development objectives by 1990. The plan aimed to increase industrial and agricultural production.The Seventh Five-Year Plan eventually failed to achieve all of its goals.The Ninth Five-Year Plan was a socio- economic development plan applied in India from 1997 to 2002. Hence, the correct answer is “Fifth Plan”.
Q39
Short run marginal cost curve cuts the average variable cost curve from ____________at the minimum point of average variable cost.
✓ Correct answer: b) below
ExplanationIf marginal cost is higher than average costs, the average cost curves are rising or upward sloping.Hence, the Marginal cost (MC) or marginal cost curve cuts the average cost curves from below their minimum points.At the point where MC=AVC, the AVC (average variable cost) is at its minimum and the marginal cost (MC) cuts it from below.Hence, the correct answer is “below”.
Q40
'Neo-Malthusian Theory' is associated with which of the following?
✓ Correct answer: c) Resource scarcity
ExplanationNeo-Malthusian Theory is associated with Resource Scarcity.It was given by Thomas Malthus, an economist,in 1798. It is the advocacy of population control programs to ensure resources for current and future populations.Neo-Malthusians believe that the earth's resources can only support a finite population.As per the theory, food resources increase in a slow arithmetical ratio; man himself increases in a quick geometrical ratio unless want and vice stop him.The increase in numbers is necessarily limited by the means of subsistence.Population invariably increases when the means of subsistence increase, unless prevented by powerful and obvious checks.Hence the correct answer is “ Resource Scarcity.”
Q41
Which country was India's largest overseas investment destination in the year 2015-16?
✓ Correct answer: a) Mauritius
ExplanationFor the year 2015-16, both the top two destinations of India’s FDI overseas and the highest two overseas sources of FDI to India are the same.Mauritius and Singapore are these two nations.In FY 2022-23, Singapore was the top investment destination for Indian companies accounting for US$ 1,138 million of the total overseas investments.Hence, the correct answer is “Mauritius”.
Q42
Which of the following is called GDP Deflator?
✓ Correct answer: a) Ratio of nominal to real GDP
ExplanationGDP Deflator is the ratio of nominal to real GDP and a tool to eliminate the effect of price fluctuations in the economy.The formula implies that dividing the nominal GDP by the real GDP hence "deflating" the nominal GDP into a real measure.The GNP deflator is the ratio of nominal GNP to real GNP.Hence, the correct answer is "Ratio of nominal to real GDP".
Q43
_________is defined as the output per unit of variable input
✓ Correct answer: d) Average product
ExplanationThe Average Product is defined as the output per unit of factor inputs or the average of the total product per unit of input.Average Product = Total Product/ Units of Variable Factor Input The marginal product helps companies to establish the increase in production that results from the addition of a unit of labor.In economics, the Total product is the output generated by the firm within a given period of time with the given set of inputs.A production function is a description of the functional relationship between the amount of input employed and the amount of output produced.Hence, the correct answer is “Average product”.
Q44
The relation between the consumer’s optimal choice of the quantity of a good and its price is very important and this relation is called the ________ function.
✓ Correct answer: d) Demand
ExplanationThe demand function establishes the relation between the consumer’s optimal choice and price.It explains how many units of a good will be purchased by a consumer at different prices.The demand function is crucial in understanding consumer behaviour and market dynamics.It helps in analyzing the impact of price changes on the quantity demanded of a product.Hence, the correct answer is "Demand."
Q45
Which among the following is not an account under Balance of Payment?
✓ Correct answer: c) Official Reserves Account
ExplanationThe balance of payments is a record of all economic transactions between a country and the rest of the world over a certain period of time, typically a year or a quarter.It is also known as the balance of International payments.The current account includes trade in goods and services, income, and transfers, while the capital account includes investments and changes in reserves.A Unilateral Payments Account (UPA) is a sub-account of a country's current account in its balance of payments.It records all the one-sided economic transactions between a country and the rest of the world, such as gifts and humanitarian aid.Because it is a division of all other accounts which are given in the options but, the official reserves account does not come under it.Hence, the correct Answer is "Official Reserves Account".
Q46
For a price-taking firm, average revenue is_______ market price.
✓ Correct answer: b) equal to
ExplanationThe average revenue (AR) of a firm is described as the total revenue per unit of output sold.Let a firm’s output be Q and the market price be P, then Total Revenue (TR) equals P x Q. In other words, for a price-taking firm, average revenue equals the market price.Hence the correct option is “equal to”.
Q47
Which company acquired Linkedln For $ 26.2 Billion?
✓ Correct answer: c) Microsoft
ExplanationMicrosoft acquires Linkedin for $26.2 billion.LinkedIn is the world's largest and most valuable professional networking site.It is designed for career and business professionals to connect.It is an American business and employment-oriented online service that operates through websites and mobile apps.Hence, the correct answer is “Microsoft”.
Q48
Which among the following sponsors are Regional Rural Banks (RRB)?
✓ Correct answer: c) National Commercial Banks
ExplanationRegional Rural Banks were established under the provisions of the RRB Act 1976. They were set up to provide sufficient banking and credit facilities for agriculture and other rural sectors.These banks are sponsored by any commercial bank, PSU, or private bank.The central government, sponsor bank, and state government have share capital in the ratio of 50:35:15. Hence, the correct answer is "National Commercial Banks".
Q49
_________ is the relationship between the variable input and output, keeping all other inputs are held constant.
✓ Correct answer: a) Total product
ExplanationWhen we vary a single input while keeping all other inputs constant, we observe different levels of output from the production function.This relationship between the variable input and output, under constant input conditions, is known as the Total Product (TP) of the variable input.The total product indicates the total quantity of output produced by varying levels of the variable input.It helps in understanding the productivity of the variable input in different production scenarios.Hence, the correct answer is "Total product."
Q50
Which one of the following is also regarded as Disguised unemployment?
✓ Correct answer: a) Underemployment
ExplanationDisguised unemployment is a specific form of underemployment.It happens when more workers are engaged in a task than are actually required, meaning their marginal productivity is zero.An example is an engineer working in a role that doesn't utilize their skills fully, like a clerk.This phenomenon is prevalent in developing nations where large labour forces exceed demand.It can lead to inefficiency in resource allocation and hinder economic growth.Unlike open unemployment, underemployment is often less visible but still affects economic productivity.Policies addressing underemployment often focus on skill development and job creation tailored to individuals' abilities.Hence, the correct answer is "Underemployment."
Q51
What is the accepted average Calorie requirement for rural areas in India?
✓ Correct answer: d) 2400
ExplanationIn 1973, the poverty line was decided to be set as per the nutritional intake of the citizens of India.There are many ways of measuring poverty.One way is to determine it by the monetary value (per capita expenditure) of the minimum calorie intake which was estimated at 2,400 calories for a rural person and 2,100 calories for a person in the urban area.The Tendulkar committee deviated from the calorie norm set in 1973-74, which determined the money required to access 2,100 calories in urban areas and 2,400 calories in rural areas.It defines the new poverty line on wider access to commodities and services like health, sanitation, and education.Hence, the correct answer is "2400".
Q52
Which organisation monitors the banks in actually maintaining cash balance?
✓ Correct answer: b) Reserve Bank of India
ExplanationAn economic challenge for the banks is to manage the complexity of its cash and reserves.The main sources of the cash balance at RBI are the Indian Government and the other central banks.They maintain their cash balances in the form of deposits with the RBI.Also commercial banks keep a certain amount of their cash in the form of reserves called the Cash Reserve Ratio .The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission by the Reserve Bank of India Act, 1934 which came into action in 1935. Shaktikanta Das is serving as the current & 25th governor of the Reserve Bank of India (RBI).Hence, The correct answer is "Reserve Bank of India".
Q53
In which market form, a market or industry is dominated by a few firms?
✓ Correct answer: c) Oligopoly
ExplanationAn oligopoly is when a few firms form a cartel and dominate the industry.By the term "Oligopoly" we mean a state of limited competition.Some features of an Oligopoly are A small number of Large firms Barriers to new entry Interdependence Advertising Group policies A monopoly is the exclusive control of the supply of or trade in service.Hence, The correct answer is "Oligopoly".
Q54
In which of the following market forms, a firm does not exercise control over price?
✓ Correct answer: b) Perfect competition
ExplanationIn perfect competition, the market consists of many buyers and sellers, each of whom has a negligible share of the market.Products in a perfectly competitive market are homogeneous, meaning that they are identical and interchangeable.Because of the large number of participants and the uniformity of the product, no single buyer or seller can influence the market price.Prices are determined by the forces of supply and demand, ensuring that the market price is beyond the control of any individual firm.Firms in perfect competition are price takers, meaning they must accept the prevailing market price and cannot charge a different price.If a firm tries to charge more than the market price, buyers will switch to other sellers, and if it charges less, it will not cover its costs.Hence, the correct answer is "Perfect competition."
Q55
The study of individual markets of demand and supply in which the 'players', or the decision-makers, were also individuals (buyers or sellers, even companies) who were seen as trying to maximize their profits (as producers or sellers) and their personal satisfaction or welfare levels (as consumers) is called?
✓ Correct answer: c) Microeconomics
ExplanationMicroeconomics: It is a study of individual markets of supply and demand, and the ‘players’, or the decision-makers, were also individuals (buyers or seller) who were trying to maximize their profits (as producers or seller) and their personal satisfaction or welfare levels (as consumers).Macroeconomics: It is a branch of economics that studies how an overall economy i.e, the markets, consumers, governments, and businesses behave.Econometrics: It is the use of mathematical and statistical models to build theories or test existing hypotheses in economics and to forecast future trends from historical data.It studies real-world data in statistical trials and then equates the results compared to the theory being tested.Heterodox economics: It is an economic theory that conflicts with orthodox schools of economic thought, or that may be away from neoclassical economics.Hence, the correct option is “Microeconomics”.
Q56
A commodity market has a _________ structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.
✓ Correct answer: b) Monopoly
ExplanationA monopoly market structure involves a single seller controlling the entire market.This seller has exclusive control over the production and distribution of the commodity.In a monopoly, there are no close substitutes available to consumers.Barriers to entry, such as patents, economies of scale, or government regulations, prevent other firms from entering the industry.Monopolies often maximize profits by setting prices higher than in competitive markets.Price discrimination, where different prices are charged to different consumers, is a characteristic strategy of monopolies.Hence, the correct answer is "Monopoly."
Q57
India recently notified the Third Protocol to amend the Double Taxation Avoidance Agreement with which of the following countries?
✓ Correct answer: c) Singapore
ExplanationIndia notified the Third Protocol amending the existing India-Singapore Double Taxation Avoidance Agreement on 23rd March-2017. DTAA, signed by India with other countries, fixes a particular rate at which tax has to be concluded on income paid to residents of that country.This means that when Non-Resident Indians earn an income in India, the TDS applicable would be according to the rates set in the Double Tax Avoidance Agreement with that country.Hence, the correct answer is "Singapore".
Q58
The demand for a normal good increases with________ in the consumer's income.
✓ Correct answer: a) increase
ExplanationNormal goods are those goods whose demand increases with an increase in consumer income i.e., if the demand for laptops increases with a rise in income, then a laptop will be called a normal good.The income effect is positive in the case of normal goods.Hence, the correct answer is “increase”.
Q59
The demand for an inferior good increases with ________ in the consumer's income.
✓ Correct answer: b) decrease
ExplanationInferior goods are those considered lower in utility by consumers.When the consumer's income decreases, they tend to opt for these goods more.This happens because consumers switch to cheaper alternatives when they have less to spend.Therefore, the demand for inferior goods increases as income decreases.Hence, the correct answer is "decrease."
Q60
If at a price, market supply is greater than market demand, we say that there is _________in the market at that price.
✓ Correct answer: c) Excess Supply
ExplanationMarginal revenue is a central concept in microeconomics that illustrates the additional total revenue produced by increasing product sales by 1 unit.Economic equilibrium is also termed market equilibrium.It is a state in which economic forces are balanced.In effect, economic variables remain unchanged from their equilibrium values in the absence of external influences.Excess Supply belongs to the condition in which at a price in the market, supply is more than that of demand [SS>DD], which creates downward price pressure.Excess Demand signifies the condition in which demand is more than supply at a price in the market [DD>SS], which creates upward price pressure.Hence, the correct answer is “Excess Supply”.
Q61
If the ______ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the average revenue is zero.
✓ Correct answer: a) Perfect competition
ExplanationIn perfect competition, it supplies an equilibrium quantity given by a point where average revenue is zero.In a monopoly, a firm has zero costs or only has fixed costs, the quantity supplied in equilibrium is given by a point where marginal revenue is zero.In oligopolies, markets are dominated by a small number of suppliers.In monopolistic competition, many companies offer competing products or services which are similar but are not perfect substitutes.Hence, the correct answer is Perfect competition.
Q62
The _____ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.
✓ Correct answer: c) market demand
ExplanationMarket demand curve is the summation of all individual demand curves in a market.It depicts the quantity demanded of goods by all individuals at varying price points.Market demand curve describes the quantity demanded at every given price for the whole market.Hence, the correct answer is “Market demand”.
Q63
A ___________ deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.
✓ Correct answer: a) Current Account
ExplanationCurrent account deficit is equal to a capital account surplus, up to inevitable errors and lapses in the data.It is a common error to treat international capital flows as though they are inertly responding to what is happening in the current account.In economics, a country's current account is one of the two components of its balance of payments, the other being the capital account.A current account shortfall is when a country imports more goods, services, and capital than it exports.Hence, the correct answer is “Current Account”.
Q64
In which of the following case, the law of demand fails?
✓ Correct answer: d) Both Giffen and Inferior goods
ExplanationThe law of demand states that as the price of a commodity increases, the demand for that commodity decreases, and vice versa.However, in the case of Giffen goods and inferior goods, this relationship between price and demand breaks down.Giffen goods are those for which demand increases when the price increases, violating the typical downward-sloping demand curve.Inferior goods, on the other hand, may have a positive relationship between price and demand depending on the consumer's income level.For example, when income is low, a consumer may buy more of an inferior good like soap.But as income increases, they may switch to a a better alternative, like shower gel, making the demand for soap increase with its price.Hence, the correct answer is "Both Giffen and Inferior goods."
Q65
In a market system, the central problems regarding how much and what to produce are solved through the coordination of economic activities brought about by _____ signals.
✓ Correct answer: c) Price
ExplanationIn a market system, the central economic problems are typically addressed through either the market or price mechanism.This mechanism relies on the interaction of supply and demand forces to determine prices.Price signals convey information about the scarcity of resources and the preferences of consumers.Based on these price signals, producers decide how much to produce and what goods or services to offer.The allocation of resources is thus guided by the signals sent through prices in the market.Economic planning is another approach to solving these central problems but contrasts with the decentralized nature of the market system.Hence, the correct answer is "Price."
Q66
Which nation is not a part of the South Asian Free Trade Area?
✓ Correct answer: a) China
ExplanationSouth Asian Free Trade Area is a free trade agreement between India, Bangladesh, Bhutan, Maldives, Nepal, Afghanistan and Sri Lanka.It has a vision of increasing economic cooperation and integration.It was signed in 2004. Its main goal was to reduce customs duties on all traded goods to zero by 2016. Hence, the correct answer is China.
Q67
Goods for which demand moves in the opposite direction of the income of the consumer are called?
✓ Correct answer: a) Inferior goods
ExplanationWhen the income of the consumer increases, the demand for inferior goods decreases.Conversely, when the income decreases, the demand for inferior goods tends to increase.This phenomenon occurs because inferior goods are considered lower in standard concerning consumption.Unlike normal goods, where demand increases with rising income, inferior goods follow an inverse pattern.People tend to switch to higher-quality substitutes as their income rises, reducing demand for inferior goods.This characteristic makes inferior goods distinct from other types of goods in the market.Hence, the correct answer is "Inferior goods."
Q68
The__________ exchange rate is the price of one unit of foreign currency in terms of the domestic currency.
✓ Correct answer: b) Nominal
ExplanationNominal exchange rate is the number of units of domestic currency that can purchase a unit of a given foreign currency.It is the exchange rate at which the currencies of different countries are exchanged or traded.A decrease in the Nominal exchange rate is termed nominal appreciation of the currency and vice versa.Hence, the correct answer is “Nominal”.
Q69
What would happen to the demand curve when there is an increase in the price of substitute products?
✓ Correct answer: a) Outward shift
ExplanationWhen there is an increase in the price of substitute products, the demand curve for the original product shifts outward.This means that consumers are more inclined to purchase the original product rather than its substitutes.The higher price of the substitutes makes the original product relatively more attractive and desirable.As a result, the demand for the original product increases, leading to an outward shift of the demand curve.This shift indicates that consumers are willing to buy more of the original product at each price level.It signifies a stronger demand and reflects a change in consumer preferences favoring the original product over its substitutes.Hence, the correct answer is "Outward shift".
Q70
What is the value of all tangible resources such as raw materials and labour that are used in the production process called?
✓ Correct answer: a) Real Cost
ExplanationThe value of all tangible resources such as raw materials and labor used in the production process is known as the real cost.It represents the actual expenditure incurred by a business to manufacture a product or provide a service.The real cost includes various elements such as the cost of raw materials, wages paid to workers, utility expenses, equipment costs, and other production- related expenses.Calculating the real cost is essential for businesses to determine the true expenses associated with their operations.By understanding the real cost, companies can make informed decisions regarding pricing, profitability, and cost optimization.Accurate assessment of the real cost helps businesses maintain competitiveness and make efficient use of their resources.Hence, the correct answer is "Real Cost".
Q71
In economic terms what do we mean by 'intermediate goods'?
✓ Correct answer: a) Goods sold between industries for the resale or production of other goods
ExplanationIntermediate goods are also known as semi-finished goods.These goods are used in the production of final goods.Examples of intermediate goods are steel, sugar, soil, crude oil, wheat, etc. These goods are also known as producer goods.These goods are purchased by one production unit from another unit and stay within the production boundary.Hence, the correct answer is "Goods sold between industries for the resale or production of other goods."
Q72
In which year was the term 'Gross Happiness Index' coined by the fourth king of Bhutan, Jigme Singye Wangchuck?
✓ Correct answer: d) 1972
ExplanationTerm 'Gross Happiness Index' was coined by Jigme Singye Wangchuk in 1972. It has four following pillars:1. Environmental conservation.2. Sustainable and equitable socio-economic development.3. Good governance.4. Preservation and promotion of culture.Nine domains used in this index are good governance, education, cultural diversity, time use, health, psychological well- being, community vitality, ecological diversity, and living standards.Hence, the correct answer is "1972."
Q73
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?
✓ Correct answer: d) Budget Line
ExplanationA budget line is a graphical delineation of all possible combinations of two commodities that can be bought with provided income and cost so that the price of each combination is equivalent to the monetary earning of the consumer.A budget set is the total combination of different sets of two goods and helps to draw the budget line.The demand curve is a graph that shows the relationship between the price of a good or service and the quantity demanded within a specified time frame.The Isocost line is a curve that shows various combinations of inputs that cost the same total amount.A supply curve shows how a change in the price of a good or service affects the number of seller supplies.Hence, the correct answer is "Budget Line."
Q74
What is India's rank in 2024 World Happiness Report?
✓ Correct answer: b) 126th
ExplanationIn the 2024 World Happiness Report, India was ranked 126th.The report measures the happiness and well-being of individuals based on various factors such as income, social support, life expectancy, freedom, generosity, and corruption.While India's overall ranking was relatively low, it is worth noting that the report considers a wide range of factors beyond economic indicators.Factors such as income inequality, social support systems, and mental health are taken into account.The report serves as a valuable tool for policymakers to identify areas that require attention to improve the overall happiness and well-being of the population.Hence, the correct answer is "126th".
Q75
What effect will a decrease in demand and an increase in supply have on equilibrium price?
✓ Correct answer: a) Equilibrium price will fall
ExplanationThe effect of a decrease in demand and an increase in supply on equilibrium price depends on the relative magnitude of the changes.However, in general, when demand decreases and supply increases, it is expected that the equilibrium price will fall.This is because a decrease in demand means that there is less willingness or ability to buy the product at higher prices, leading to downward pressure on prices.Additionally, an increase in supply means there is more availability of the product, which can further contribute to lower prices as producers may be willing to sell at lower prices to compete for customers.Hence, the correct answer is "Equilibrium price will fall".
Q76
When the output is equal to zero, the variable cost is ______.
✓ Correct answer: b) zero
ExplanationWhen the output is equal to zero, the variable cost is also zero.A variable cost is an expense that changes in proportion to production output or sales.When production or sales increase, variable costs increase; when production or sales decrease, variable costs decrease.Variable costs stand in contrast to fixed costs, which do not change in proportion to production or sales volume.Hence, the correct answer is "zero".
Q77
An economic condition when there is one buyer and many sellers is called ______.
✓ Correct answer: d) Monopsony
ExplanationMonospony is a condition of the market in which there is a single buyer with many sellers.In this condition, a single buyer has a large control over the market and he is the major purchaser of goods and services.It is the opposite of monopoly.An example of monopsony is a food retailer buying supplies from many farmers who grow the same crops.In an oligopoly, the market is dominated by a small number of suppliers.In perfect competition, many firms produce identical products and many buyers buy the product.Hence, the correct answer is "Monopsony."
Q78
A substantial increase in capital expenditure or revenue deficit leads to ______.
✓ Correct answer: b) Fiscal Deficit
ExplanationA significant rise in capital expenditure or revenue deficit results in a Fiscal Deficit.Fiscal Deficit refers to the excess of total expenditure over total revenue in a government's budget.It represents the amount of borrowing required by the government to finance its expenses.Budgetary Deficit, on the other hand, is the difference between the government's total revenue and total expenditure, excluding borrowing.Primary Deficit refers to the fiscal deficit after subtracting the interest payments on past borrowings.It represents the shortfall between the government's total expenses and its total revenue, excluding interest payments.Revenue Deficit, conversely, signifies the excess of revenue expenditure over revenue receipts.Hence, the correct answer is "Fiscal Deficit".
Q79
A situation where the expenditure of the government exceeds its revenue is called ______.
✓ Correct answer: c) Budget Deficit
ExplanationA budget deficit occurs when a government's expenditures exceed its revenue in a given period, typically a fiscal year.In other words, it indicates that the government is spending more money than it is collecting through various sources such as taxes, tariffs, and other revenues.Budget deficits can arise due to various factors, including economic downturns, recessions, increased government spending on public services, infrastructure projects, defense, social welfare programs, and tax cuts without corresponding revenue increases.It's important to note that budget deficits are a common occurrence for many governments, particularly during economic downturns or periods of significant public spending.Hence, the correct answer is “Budget Deficit”.
Q80
The demand for a commodity or service which is a consequence of the demand for something else is called ______.
✓ Correct answer: d) Derived Demand
ExplanationDerived demand is related solely to the demand placed on a good or service for its ability to acquire or produce another good or service.Derived demand can be spurred by what is required to complete the production of a particular good, including capital, land, labor, and necessary raw materials.In these instances, the demand for raw materials is directly tied to the demand for products that require the raw material for their production.Example: demand for a certain size and configuration of an android case for a new android phone that is just launched.Hence, the correct answer is "Derived Demand".
Q81
The interest rate charged by banks on short- term loans to their largest, most secure, and most creditworthy customers is called ______.
✓ Correct answer: a) Prime Lending Rate
ExplanationThe interest rate charged by banks on short-term loans to their largest, most secure, and most creditworthy customers is called the Prime Lending rate.Commercial banks have the liberty to decide their Prime Lending Rate.The process involves getting a sanction from all the board members.The Reserve Bank of India introduced the concept of the Prime Lending Rate in 2003. The Prime Lending Rate is directly connected with the Repo Rate, which in turn, is the rate at which the Reserve Bank of India loans money to commercial banks.Hence, the correct answer is "Prime Lending rate".
Q82
The Micro, Small and Medium Enterprises Development Act was passed in the year______
✓ Correct answer: a) 2006
ExplanationIn the year 2006, the legislation known as the Micro, Small and Medium Enterprises Development Act was enacted.This act aims to promote and support the growth of micro, small, and medium enterprises (MSMEs) in India.It provides a legal framework for the recognition, registration, and regulation of these enterprises, as well as various support measures such as credit facilities, technology assistance, and marketing support.The act plays a crucial role in fostering the development and competitiveness of MSMEs, which are considered the backbone of the Indian economy.Hence, the correct answer is "2006".
Q83
Cash Reserve Ratio (CRR) is calculated as a percentage of each bank's _____.
✓ Correct answer: b) net demand and time liabilities
ExplanationThe cash reserve ratio (CRR) is calculated daily based on the bank’s net demand and time liabilities.The RBI decides a certain percentage of deposits that every bank must keep as reserves.This is done to ensure that no bank is ‘over lending’.This is a legal requirement and is binding on the banks.This is called the ‘Required Reserve Ratio’ or the ‘Reserve Ratio’ or ‘Cash Reserve Ratio (CRR).Cash Reserve Ratio (CRR) = Percentage of deposits that a bank must keep as cash reserves with the bank.NDTL refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other banks.Demand deposits consist of all liabilities, which the bank needs to pay on demand.Hence, the correct answer is "net demand and time liabilities".
Q84
A sustained rise in the general price level in an economy is called_________.
✓ Correct answer: c) Inflation
ExplanationInflation refers to a sustained increase in the general price level of goods and services in an economy over a period of time.It is characterized by a decline in the purchasing power of money, as the same amount of currency can buy fewer goods and services.Inflation is typically measured using various indices, such as the Consumer Price Index (CPI) or the Wholesale Price Index (WPI).It can be caused by factors such as increased demand, supply shortages, changes in production costs, or monetary factors such as excessive money supply.Inflation has various economic implications and can affect consumers, businesses, and policymakers in different ways.Deflation: A sustained decrease in the general price level in an economy, leading to an increase in the purchasing power of money.Disinflation: A decrease in the rate of inflation, meaning prices are still rising but at a slower pace.Stagflation: A situation characterized by a combination of stagnant economic growth, high unemployment, and high inflation, creating a challenging economic environment.Hence, the correct answer is "Inflation".
Q85
Which of the following economic activities employs the maximum number of people in India?
✓ Correct answer: c) Agriculture
ExplanationAgriculture is the largest employer in India, providing livelihoods to a significant portion of the population, particularly in rural areas.It involves farming activities, animal husbandry, fisheries, and related occupations.The agricultural sector employs a vast workforce, including farmers, agricultural laborers, and workers involved in the processing and marketing of agricultural products.The mining sector, although significant in terms of natural resources, employs a relatively smaller portion of the population compared to other sectors.It provides employment opportunities to individuals involved in mining operations, transportation, and related activities.Hence, the correct answer is "Agriculture".
Q86
___ is not constrained by prior work.
✓ Correct answer: d) greenfield project
ExplanationA greenfield project refers to a new project or venture that is developed from scratch without any limitations imposed by prior work or existing infrastructure.It typically involves the construction of new facilities, infrastructure, or systems in an area that has not been previously developed or used for the intended purpose.Greenfield projects are often undertaken in industries such as manufacturing, real estate, energy, and technology, where starting a new offers greater flexibility, control, and potential for innovation.These projects require significant planning, investment, and development, as they involve establishing everything from the ground up, including land acquisition, construction, equipment installation, and operational setup.Hence, the correct answer is "greenfield project".
Q87
Minimum Support Price (MSP) is recommended by _____.
✓ Correct answer: d) The Commission for Agricultural Costs and Prices
ExplanationThe Commission for Agricultural Costs and Prices (CACP) is responsible for recommending the Minimum Support Price (MSP).The CACP is a statutory body that operates under the Department of Agriculture, Cooperation, and Farmers Welfare of the Indian government.It is responsible for recommending MSPs for various agricultural commodities to ensure remunerative prices to farmers and promote agricultural production.The CACP considers factors such as cost of production, market trends, demand and supply, and other relevant factors while recommending the MSPs.The MSPs provide a safety net to farmers and aim to protect their interests by guaranteeing a minimum price for their produce.Hence, the correct answer is "The Commission for Agricultural Costs and Prices ".
Q88
Which of the following was the most important characteristic of India's trade throughout the colonial period?
✓ Correct answer: d) Export surplus
ExplanationDuring the colonial period, India served as a supplier of raw materials and a market for finished goods produced by the colonial powers, primarily Britain.The British implemented policies that favored the export of raw materials from India, such as cotton, jute, indigo, tea, and spices, to meet the demands of their industries back home.This led to a significant trade imbalance and drained India's wealth, resulting in economic underdevelopment.The British colonial policies also hindered the growth of India's domestic industries, further exacerbating the situation.Hence, the correct answer is “Export surplus”.
Q89
As per Mankiw's Principles of Economics, the standard of living of a country depends on the country's ______.
✓ Correct answer: d) ability to produce goods and services
ExplanationAs per Mankiw's Principles of Economics, the standard of living of a country depends on the country's ability to produce goods and services.He has given 10 principles of economics which are as below:1. People face trade-offs.2. The cost of something is what you give up getting it.3. Rational people think at the marginal cost and marginal revenue.4. People respond to incentives.5. Trade can make everyone better off.6. Markets are usually a good way to organize economic activity.7. Governments can sometimes improve market outcomes.8. A country's standard of living depends on its ability to produce goods and services.9. Growth of money leads to inflation10. Society faces a short-run tradeoff between Inflation and unemployment.Hence, the correct answer is "ability to produce goods and services".
Q90
Which of the following Public Sector Undertakings was accorded the Maharatna status in February 2013?
✓ Correct answer: a) BHEL
ExplanationThe Maharatna status is granted to select public sector companies in India based on their financial performance, growth, and global presence.Here are the years when the Maharatna status was given to the following companies: BHEL (Bharat Heavy Electricals Limited) - BHEL was conferred with the Maharatna status on 1st February 2013. ONGC (Oil and Natural Gas Corporation) - ONGC was granted the Maharatna status on 1st March 2010. OIL (Oil India Limited) - Oil India Limited was awarded the Maharatna status on 20th March 2019. CIL (Coal India Limited) - Coal India Limited was given the Maharatna status on 8th April 2011. Hence, the correct answer is "BHEL".
Q91
When the fiscal deficit is high, what happens to prices?
✓ Correct answer: b) There is no direct impact on prices
ExplanationThe fiscal deficit is the difference between a government's total revenue and total expenditure.It serves as an indicator of the government's borrowing requirements.A fiscal deficit can occur due to either a revenue deficit, where the government's revenue falls short of its expenditure, or a significant increase in capital expenditure.While a high fiscal deficit can have indirect implications for the economy, such as inflation or crowding out, it does not directly impact prices.Price levels are influenced by various factors, including supply and demand dynamics, monetary policy, market conditions, and other economic factors.Therefore, the fiscal deficit itself does not have a direct effect on prices.Hence, the correct answer is "There is no direct impact on prices".
Q92
The Banking Regulation Act was passed in India in _____.
✓ Correct answer: a) 1949
ExplanationThe Banking Regulation Act, of 1949, is a significant piece of legislation that was enacted in India.It aimed to regulate the functioning of banks and ensure the soundness and stability of the banking system.The act empowered the Reserve Bank of India (RBI) to regulate and supervise banks, including licensing, control of management, and imposition of certain restrictions.It also laid down provisions for the governance of banking companies, capital requirements, maintenance of reserves, and control over shareholdings.The Banking Regulation Act, of 1949, has been instrumental in shaping the banking sector in India and maintaining the integrity and efficiency of the banking system.Hence, the correct answer is "1949".
Q93
The Indian Passport was ranked _____ in the 'Global Passport Index Report 2019'.
✓ Correct answer: c) 67th
ExplanationIn the 'Global Passport Index Report 2019', the Indian Passport was ranked 67th.The Global Passport Index is a ranking system that assesses the strength of passports based on the number of countries and territories their holders can visit without a visa or with visa-on- arrival.The ranking indicates the level of global mobility and ease of travel that a passport provides.With its 67th rank, the Indian Passport allows visa-free or visa- on-arrival access to several countries around the world.The ranking is determined by factors such as diplomatic relationships, international agreements, and reciprocity between countries regarding visa requirements.Hence, the correct answer is "67th".
Q94
Which economist gave the theory of Opportunity Cost?
✓ Correct answer: d) Gottfried Haberler
ExplanationGottfried Haberler gave the theory of Opportunity Cost in the year 1936. He explained the theory of comparative advantage in international law using the opportunity cost theory.Opportunity Cost: The number of other goods and services that must be sacrificed to obtain more of any one good is called the opportunity cost of the good and services and helps us determine choices.In simple words, we can say that opportunity cost is what we must give up to buy what we want in terms of other goods or services.An example of opportunity cost might be when we choose between two brands of washing machines at the electronics store.Hence, the correct answer is "Gottfried Haberler".
Q95
If there is a lack of money supply in comparison to the supply of goods and services, then the possible consequence would be _______.
✓ Correct answer: b) Deflation
ExplanationHyperinflation refers to a rapid and uncontrollable increase in prices, resulting in a significant devaluation of a country's currency.Hyperinflation erodes the purchasing power of money, causing severe economic instability and hardship for individuals and businesses.Deflation is the opposite of inflation and refers to a sustained decrease in the general price level of goods and services over time.It occurs when the supply of goods and services exceeds the demand, leading to reduced spending (money supply), declining prices, and a slowdown in economic activity.Devaluation refers to a deliberate downward adjustment in the value of a country's currency in relation to other currencies.It is usually done by the central bank to make the country's exports more competitive and stimulate economic growth.Inflation is the sustained increase in the general price level of goods and services over time.It means that the purchasing power of money decreases, and it takes more units of currency to buy the same goods and services.Hence, the correct answer is "Deflation".
Q96
What is the economic impact of increase in productivity of firms?
✓ Correct answer: d) Increase in Gross Domestic Product
ExplanationThe economic impact of an increase in the productivity of firms is generally an increase in Gross Domestic Product (GDP).When firms become more productive, they can produce more goods or services with the same amount of resources or produce the same amount of goods or services with fewer resources.This increased efficiency leads to higher output and can contribute to economic growth.As more goods and services are produced, it can stimulate consumption, investment, and overall economic activity.Therefore, option D, "Increase in Gross Domestic Product," is the most appropriate choice to reflect the economic impact of increased firm productivity.It is important to note that the actual impact may vary among nations and their specific economic conditions.Hence, the correct answer is "Increase in Gross Domestic Product".
Q97
A marketplace in which a final good or service is bought and sold is called___
✓ Correct answer: d) Product Market
ExplanationThe market where final goods or services are exchanged between buyers and sellers is referred to as the Product Market.In the product market, businesses offer their goods or services for sale to consumers or other businesses.It is the market where the exchange of finished products or services occurs, and prices are determined based on the interaction of supply and demand.Consumers or buyers in the product market purchase the final goods or services directly from the sellers or producers.This market plays a crucial role in the economy as it facilitates the consumption and distribution of goods and services to meet the needs and wants of individuals and businesses.Hence, the correct answer is "Product Market".
Q98
What was India's rank among 156 countries in the Global Happiness Index 2019?
✓ Correct answer: a) 140th
ExplanationIn the Global Happiness Index 2019, India was ranked 140th among 156 countries.The index measures the subjective well- being and happiness of individuals based on various factors such as GDP per capita, social support, life expectancy, freedom to make life choices, generosity, and perceptions of corruption.While India's rank in the index is relatively low, it is important to note that the ranking is based on a wide range of factors and varies from year to year.The index provides insights into the overall happiness and well-being of a country's population and serves as a benchmark for policymakers to address areas of improvement.Hence, the correct answer is "140th".
Q99
What does the Lorenz Curve indicate?
✓ Correct answer: b) Income distribution
ExplanationThe Lorenz Curve is a graphical representation used to measure the distribution of income or wealth in a society.It plots the cumulative percentage of total income or wealth on the y-axis against the cumulative percentage of households or individuals on the x-axis.A perfectly equal distribution would result in a straight line, while a more unequal distribution would result in a curved line.The curve allows us to visualize the degree of income or wealth inequality within a population.The relationship between the price of a commodity and its demand is typically represented by a demand curve.The concept of "taxable income elasticity" refers to the responsiveness of taxable income to changes in tax rates.Hence, the correct answer is “Income distribution”.
Q100
A ____________occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.
✓ Correct answer: d) Fiscal Deficit
ExplanationFiscal deficit refers to the difference between a government's total expenditures and its total revenue in a given fiscal year, including both revenue from taxes and non-tax sources.It represents the amount by which a government's spending exceeds its income, excluding borrowings.A current account deficit refers to a situation where a country's total imports of goods, services, and transfers exceed its total exports of goods, services, and transfers over a specific period.A budgetary deficit refers to a situation where a government's total expenditures exceed its total revenue in a given fiscal year, including both revenue from taxes and non-tax sources.A revenue deficit occurs when a government's total revenue, including both tax and non-tax revenue, falls short of its total revenue expenditures, excluding borrowings.Hence, the correct answer is “Fiscal Deficit”.
Q101
Which of the following come under the Quarternary sector?
✓ Correct answer: a) Information Technology
ExplanationInformation Technology, is the sector that falls under the Quaternary sector.The Quaternary sector refers to the knowledge-based part of the economy that focuses on intellectual activities, information services, research and development, and knowledge-intensive industries.Information Technology involves the development, management, and utilization of computer systems, software, and networks to process, transmit, and store information.It encompasses various areas such as software development, data analysis, computer programming, and IT consulting.Hence, the correct answer is "Information Technology".
Q102
Which theory in economics proposes that countries export what they can most efficiently and plentifully produce?
✓ Correct answer: b) Heckscher-Ohlin Model
ExplanationThe Heckscher-Ohlin Model, developed by Eli Heckscher and Bertil Ohlin, is a theory in economics that explains the pattern of international trade based on countries' factor endowments.According to this model, countries will export goods that require abundant and relatively cheaper factors of production, while importing goods that require scarce factors.The model suggests that a country with abundant labor will specialize in labor- intensive goods, while a country with abundant capital will specialize in capital- intensive goods.This theory highlights the importance of comparative advantage and resource allocation in determining trade patterns and suggests that countries can benefit from trading goods in which they have a relative abundance of resources.Hence, the correct answer is "Heckscher- Ohlin Model".
Q103
Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system?
✓ Correct answer: a) Purchasing Power Parity Theory
ExplanationThe theory used to make long-run predictions about exchange rates in a flexible exchange rate system is the Purchasing Power Parity (PPP) Theory.According to this theory, the exchange rate between two currencies should adjust in such a way that the purchasing power of each currency is equalized.In other words, the relative price levels in different countries should determine the exchange rate.The PPP theory suggests that over time, changes in the price levels of goods and services will result in corresponding changes in exchange rates.This theory is based on the idea that in the long run, trade imbalances will be corrected through changes in exchange rates to maintain purchasing power parity.Hence, the correct answer is "Purchasing Power Parity Theory".
Q104
A situation where the expenditure of the government exceeds its revenue is known as_______.
✓ Correct answer: d) Deficit Financing
ExplanationA situation where the government spends more money than it earns from taxes and other sources is known as a budget deficit.This occurs when the government's expenses, such as salaries, infrastructure projects, and social welfare programs, are higher than the revenue it receives from taxes, duties, and other sources.A budget deficit can have negative effects on the economy, such as inflation, rising government debt, and a weaker currency.To address a budget deficit, the government may need to increase taxes, reduce spending, or borrow money.The government needs to maintain a balance between spending and revenue to ensure the stability and growth of the economy.Hence, the correct answer is "Deficit Financing".
Q105
John Maynard Keynes, best known for his economic theories (Keynesian economics), hailed from which country?
✓ Correct answer: d) England
ExplanationJohn Maynard Keynes was an English economist.His ideas changed the theory of macroeconomics and economic policies of governments.He is considered as the founder of Macroeconomics.He founded the Keynesian School of economics .His famous books are ‘ The General Theory of Employment’ and ‘Interest and Money.’ Keynes law states that demand creates its own supply and changes in aggregate demand cause changes in real GDP and employment.Hence, the correct answer is "England".
Q106
What is the uniform GST rate that has been fixed up for lottery prizes by the GST Council?
✓ Correct answer: c) 28 %
ExplanationThe Indian government has established a tax system called Goods and Services Tax (GST) to collect taxes on various products and services.The GST Council, a group of government officials, determines the GST rates for each item or service.For lottery prizes, the GST Council has determined a fixed rate of 28%.This means that if someone wins a lottery prize, they will need to pay 28% of the prize value as GST to the government.This tax applies to all types of lotteries, whether run by the government or privately.The uniform GST rate for lottery prizes is the same throughout India.Hence, the correct answer is "28%".
Q107
Who among the following publishes the Economic Survey of India?
✓ Correct answer: b) Ministry of Finance
ExplanationThe National Development Council is a significant body in India that makes important decisions about the country's development.The Prime Minister of India leads this council.Each year, the Ministry of Finance releases an important document called the Economic Survey of India.The department of Economic Affairs prepares this report, which gives a complete picture of how the Indian economy did in the past year.The Chief Economic Adviser guides the creation of this report.The Economic Survey is released just before the union budget and provides a detailed analysis of the nation's economic status.Hence, the correct answer is "Ministry of Finance".
Q108
Depreciation is an annual allowance for the wear and tear of _____.
✓ Correct answer: d) capital goods
ExplanationDepreciation is an annual allowance for the wear and tear of Capital goods.Capital goods are physical assets used by a company in the process of production to manufacture products and services.Examples include tools, buildings, machinery, computers and vehicles.Finished goods are end product goods i.e., completed and ready for sale goods.Examples include furniture, clothes, cars and smartphones.Land is a resource that encompasses the natural resources used in the production process.Hence, the correct answer is “capital goods”.
Q109
Name the company that has acquired an online travel portal Yatra Online Inc., for an enterprise value of $ 337.8 million, in an all- stock transaction.
✓ Correct answer: c) Ebix Inc.
ExplanationEbix Inc. acquired an online travel portal Yatra Online Inc. for a value of dollar 337.8 million in an all -stock transaction.Ebix Inc. is a supplier of on-demand software and e-commerce services.It was decided that yatra would continue to be independent and will retain its brand and status in India.Ebix Cash is an Indian subsidiary of the company.Hence, the correct answer is "Ebix Inc.".
Q110
Private ownership of the means of production is a feature of a ________economy.
✓ Correct answer: a) capitalist
ExplanationCapitalist economy has the feature of private ownership for the means of production.Capitalism is a system of economy in which private individuals and businesses own capital goods.Production of goods and services is based on supply and demand in the market and hence it is also known as market economy.Its main feature is to make profit.In Socialism, the state owns the means of production and is focused on social welfare rather than making profit.In a mixed economy, both capitalism and socialism are practiced.In this system, the private sector aims at making profit and the government sector aims at social welfare.India is an example of a Mixed economy.In a dual economy, there is co-existence of the modern commercial sector along with a traditional subsistence sector.Hence, the correct answer is "capitalist".
Q111
Which organisation launched the Agricultural Marketing and Farmer Friendly Reforms Index (AMFFRI) in 2016?
✓ Correct answer: d) NITI Aayog
ExplanationNITI Aayog launched the Agricultural Marketing and Farmer Friendly Reforms Index (AMFFRI) in 2016. Three key areas for reform were identified in 2016: Agricultural market reforms, Land lease reforms, and Reforms related to forestry on private land – felling and transit of trees.The Index is based on the implementation of seven provisions proposed under the model APMC (Agricultural Produce & Livestock Market Committee) Act.The indicators represent competitiveness, efficiency, and transparency in agricultural markets.The Index scores range from a minimum value of "0" implying no reforms to a maximum value of "100" implying complete reforms.Hence, the correct answer is "NITI Aayog."
Q112
Which of the following is NOT a nationalised bank?
✓ Correct answer: b) State Bank of India
ExplanationThe State Bank of India (SBI) is not nationalized.There are a total of 12 Nationalized banks in India.Nationalized banks are those in which the government has more than 50% shareholding.They are also known as Public Sector Banks.About SBI: Established- 1955 Headquarter- Mumbai, Maharashtra Chairman(Feb 2023) -Shri Dinesh Kumar Hence, the correct answer is "State Bank of India".
Q113
What is the rank of India in the Global Peace Index 2019?
✓ Correct answer: b) 141
ExplanationGlobal Peace Index was (GPI) founded by Steve Killelea, an Australian philanthropist.GPI is released by Institute for Economics and Peace which is an Australian Think tank.Countries are given ranks on the basis of three domains: Degree of militarism The extent of ongoing domestic and international conflict.Level of societal safety and security.India secured 141st rank in GPI 2019 and had 136th rank in 2018. India was ranked 135th among 163 countries on the Global Peace Index in 2022. Hence, the correct answer is 141.
Q114
'Industry 4.0' is a complex cyber-physical system which synergies production with digital technologies. The Ministry of Railways and the Department of Science and Technology have joined hands in partnership with which institution for taking up a unique project on 'Industry 4.0'?
✓ Correct answer: b) IIT Kanpur
ExplanationIndustry 4.0 refers to the fourth industrial revolution, which is characterized by the integration of advanced digital technologies such as artificial intelligence, the Internet of Things (IoT), and big data into all aspects of production and manufacturing.It represents a new era of industrial production that is smart, connected, and highly automated.The Ministry of Railways, Department of Science & Technology, and IIT Kanpur have partnered to launch a pilot project on Industry 4.0 at the Modern Coach Factory in Raebareli.The aim of the project is to implement the principles of Industry 4.0, also known as the Fourth Industrial Revolution, in the manufacturing process at the factory.Hence, the correct answer is "IIT Kanpur".
Q115
Which is the first Indian company to hit the ₹10 lakh crore mark in market capitalisation?
✓ Correct answer: c) Reliance Industries
ExplanationReliance Industries Limited is the first Indian firm to cross the Rs 10 lakh crore market valuation mark.It is an Indian company headquartered in Mumbai.The company is engaged in energy, petrochemicals, textiles, natural resources, and telecommunications.The CEO of the company is Mukesh Ambani.Hence, the correct answer is "Reliance Industries."
Q116
What is the ranking of India in the World Economic Forums (WEF)'s World Travel, Tourism Competitiveness Index for the year 2019?
✓ Correct answer: d) 34
ExplanationThe ranking of India in the World Economic Forums (WEF)'s World Travel, Tourism Competitiveness Index for the year 2019 is 34th.In 2022 India ranked 54th in the World Economic Forums (WEF)'s World Travel, Tourism Competitiveness Index.In 2022 Japan secured the first position followed by the USA and Spain.About World Economic forum: Headquarter:Colony, Canton of Geneva, Switzerland Established:1971. Hence the correct answer is "34".
Q117
The SDG India index is developed by _____.
✓ Correct answer: d) NITI Aayog
ExplanationThe SDG India index is developed by the NITI Aayog, the policy think-tank of the Government of India, in partnership with the United Nations in India and other stakeholders.The SDG India index is an initiative to track the progress of India's states and Union Territories towards achieving the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015. The index provides a comprehensive and robust assessment of the progress made by each state and UT in achieving the 17 SDGs, and it serves as a tool to guide the efforts of the government and other stakeholders in addressing the development challenges and accelerating progress towards a sustainable future.The Ministry of Home Affairs is a government ministry in India that is responsible for the maintenance of internal security, law and order, and administration of Union Territories.The World Bank is an international financial institution that provides loans and grants to developing countries for the purpose of pursuing capital projects.The Ministry of Environment, Forests and Climate Change is the government ministry in India that is responsible for the protection and conservation of the country's environment and its forests, as well as for addressing climate change issues.Hence, the correct answer is "NITI Aayog".
Q118
Which International organisation released the 'World Energy Outlook 2019' Report?
✓ Correct answer: b) International Energy Agency
ExplanationThe 'World Energy Outlook 2019' report was released by the International Energy Agency (IEA).The IEA is an intergovernmental organization that was established in 1974 to address energy security and promote sustainable energy policies.The United Nations (UN) is a global intergovernmental organization that was established in 1945 to promote international peace, security, and cooperation.The UN has several specialized agencies and programs, including the United Nations Development Programme (UNDP), the United Nations Children's Fund (UNICEF), and the United Nations Framework Convention on Climate Change (UNFCCC), among others.The World Trade Organization (WTO) is a global intergovernmental organization that was established in 1995 to promote and regulate international trade.UNESCO (United Nations Educational, Scientific and Cultural Organization) is a specialized agency of the United Nations that was established in 1945 to promote international cooperation and peace through education, science, and culture.Hence , the correct answer is "International Energy Agency".
Q119
If the inflation in an economy is rising steadily, the Central Bank might _____.
✓ Correct answer: c) increase the repo rate
ExplanationIf the inflation in an economy is rising steadily, the Central Bank might increase the repo rate.The repo rate is the interest rate at which commercial banks can borrow money from the Central Bank.When the Central Bank raises the repo rate, it makes borrowing more expensive, which can help to curb inflation and control the money supply in the economy.Reverse Repo Rate is the rate at which the central bank (in India, it's the Reserve Bank of India) borrows money from commercial banks.It is a monetary policy tool used by the central bank to control the money supply in the economy.Hence, the correct answer is " increase the repo rate".
Q120
Which US based Indian topped the Forbes India's ' 20 people to watch in the 2020 s' list?
✓ Correct answer: a) Hasan Minhaj
ExplanationHasan Minhaj topped the Forbes India’s 20 people to watch in 2020 s’ list He is an Indian origin American comedian and political commentator.Recently his show "Patriot Act" is getting appreciation from all over the world.Mahua Mitra is a Lok Sabha member.Dushyant Chautala was Deputy CM of Haryana.Prasant Kishor is a political strategist and business tactician.Kishor has worked as a political strategist for BJP, INC, AAP, YSRCP , DMK and TMC.Hence, the correct answer is "Hasan Minhaj".
Q121
What was India's position in the Brand Finance Nation ranking of 2019?
✓ Correct answer: a) Seventh
ExplanationIn 2019, India climbed from the 9th to the 7th position in the Brand Finance Nation ranking.The top three nations in the ranking were the US, China, and Germany, maintaining their positions from previous years.Brand Finance, an independent brand business valuation consultancy, conducted the ranking.The consultancy specializes in advising branded organizations and those with tangible assets on maximizing their value through effective management of their brand and other intangible assets.Brand Finance is headquartered in London, United Kingdom.Hence, the correct answer is "Seventh."
Q122
In ________economies, all productive resources are owned and controlled by the government.
✓ Correct answer: b) socialist
ExplanationSocialism is an economic system in which the means of production are owned and controlled by the government, rather than by individual citizens or corporations.The goal of socialism is to reduce income inequality and create a more equitable distribution of wealth.In a socialist economy, the government typically plans and manages the production and distribution of goods and services, and uses its control over the economy to ensure that basic needs, such as food, housing, and healthcare, are met for all citizens.Some well-known examples of countries with socialist economies include Cuba and Venezuela, although the specifics of each country's system can vary significantly.Hence, the correct answer is "socialist".
Q123
Who among the following is the head of the standing committee on economic statistics set up by Ministry of Statistics and Programme Implementation (MOSPI)?
✓ Correct answer: c) Pronab Sen
ExplanationThe first Chief Statistician of India, Pronab Sen was the head of the standing committee on economic statistics set up by the Ministry of Statistics and Programme Implementation(MOSPI).It reviewed and developed the country’s survey on employment,industry and services sector .It consists of 4 standing committees on labor force statistics, industrial statistics, services statistics and unincorporated sector enterprises.Krishnamurthy Subramanian is an Indian economist who served as the 17th Chief Economic Adviser to the Government of India.Dr. Manmohan Singh is an Indian politician, economist, academician and bureaucrat who served as the 13th Prime Minister of India from 2004 to 2014. Raghuram Govind Rajan is an Indian economist and served as the 23rd governor of Reserve Bank of India.Hence ,the correct answer is "Pronab Sen".
Q124
Which is the first Indian company to hit the lakh crore mark in market capitalisation?
✓ Correct answer: b) Reliance Industries
ExplanationThe first Indian company to hit the ₹10 lakh crore mark in market capitalization is Reliance Industries.The second most valued company on the stock exchanges, Tata Consultancy Services has a market cap of Rs 7.81 lakh crore.The world's most valuable 290 billion- dollar energy firm is Exxon Mobil.In August 2018, RIL became the first corporation to cross the Rs 8 lakh crore mark and was also the first company to cross the market cap mark of $100 billion in the year 2007. Hence, the correct answer is “Reliance Industry”.
Q125
The aggregate value of goods and services produced in an economy can be calculated by three methods: income method, expenditure method and _____ method.
✓ Correct answer: a) product / value added
ExplanationThe aggregate value of goods and services produced in an economy can be calculated by three methods: income method, expenditure method and product/value added method.The income approach is an evaluation methodology used for real estate estimation, which is computed by dividing the price or capitalisation tariff by the net operating income of the rental payments.The expenditure method is a system for calculating gross domestic product i.e., that combines consumption, government spending, investment, and net exports.The primary objective of the value added or product method is to calculate the national income by taking the value added to a product during the various stages of production into account.Hence, the correct answer is “product/value added”.
Q126
Merchant discount rate refers to _____.
✓ Correct answer: b) the rate charged to a merchant for payment processing services on debit and credit card transactions
ExplanationThe rate charged to a merchant for payment processing services on debit and credit card transactions is referred to as the "merchant discount rate." Before accepting debit and credit cards as payment, the business must set up this service and agree to the fee.It is essentially a fee that retailers should take into account when controlling their entire business expenses.For the majority of businesses, the processing fee for each transaction will range from 1% to 3%.However, service level agreements and costs vary frequently between local and online retailers.Hence, the correct answer is "the rate charged to a merchant for payment processing services on debit and credit card transactions".
Q127
Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?
✓ Correct answer: d) Reserve Bank of India
ExplanationThe Reserve Bank of India (RBI) is responsible for fixing the Repo rate and the Reverse Repo Rate.RBI regulates these rates as a part of its monetary policy.Monetary policy refers to the steps undertaken by the central bank to control the liquidity and supply of money in the market.Repo Rate: It is an acronym for the Repurchasing Agreement Rate.It is the rate at which the RBI lends money to other banks in the country for the short term.Reverse Repo Rate: When banks deposit their surplus funds with the RBI for a short term, the rate then offered by the RBI is called the Reverse Repo Rate.The Reserve Bank of India (RBI) was established on April 1, 1935, under the RBI Act 1934, but as a private bank and was nationalised in 1949. Hence, the correct answer is "Reserve Bank of India".
Q128
As per the government rules, how much percentage of advance tax needs to be paid by 15 th June by an individual who is liable to pay advance tax?
✓ Correct answer: a) 15 %
ExplanationAccording to the government rules, 15% of advance tax is required to be paid by 15th June by an individual who is liable to pay advance tax.Advance tax refers to the earnings tax that will be charged in advance, rather than a lump-sum payment at year-end.The way in which an individual collects tax is called an earning tax.These payments are to be made in installments as given by the income tax department according to the due dates.If an individual gross tax liability in a financial year is Rs 10,000 or more he/she will pay the advance tax.Hence, the correct answer is “15%”.
Q129
UN Women propose to partner with _____ in South Asia. gender park with an aim to secure gender parity
✓ Correct answer: a) Kerala's
ExplanationUN Women has proposed to partner with the Gender Park in South Asia with the aim of securing gender parity.The Gender Park is a state-level initiative in the state of Kerala, India, that works to promote gender equality and empower women and girls by providing them with access to resources, education, and opportunities.By partnering with the Gender Park, UN Women hopes to expand its reach and impact in the region and to work together to achieve a more equal and just society for all.Hence, the correct answer is "Kerala's".
Q130
Which of the following became the first Indian state to give electricity subsidies to farmers through Direct Benefit Transfer in January 2021?
✓ Correct answer: d) Madhya Pradesh
ExplanationMadhya Pradesh implemented Direct Benefit Transfer for electricity subsidies in January 2021. Direct Benefit Transfer is a scheme by the Government of India where subsidy amounts are directly transferred to the consumer's bank account.This initiative aimed to streamline the process of subsidy distribution and ensure transparency.By adopting DBT, Madhya Pradesh became the pioneer in providing electricity subsidies to farmers in this manner.Hence, the correct answer is "Madhya Pradesh."
Q131
According to the World Bank's annual report on the Ease of Doing Business (EODB), 'Doing Business 2020: Comparing Business Regulations in 190 Economies', India ranks _______out of 190 countries.
✓ Correct answer: c) 63rd
ExplanationThe Ease of Doing Business index is issued internationally by the World Bank, assessing factors like labour regulation, online single window, access to information, and transparency.In India, this index is prepared by the Department for Promotion of Industry and Internal Trade (DPIIT).DPIIT collaborates with the World Bank to suggest reform processes under the Business Reform Action Plan (BRAP) for all states and union territories.India stands at 63rd position in the Ease of Doing Business ranking, having climbed 14 places.This ranking provides an overall depiction of the ease of conducting business within a country.Hence, the correct answer is "63rd."
Q132
What are the two variables whose relationship is given by the environmental Kuznets curve?
✓ Correct answer: d) Environmental degradation and per capita income
ExplanationThe environmental Kuznets curve reveals a relationship between two variables— environmental degradation and per capita income.Grossman and Krueger introduced the two of them to one another first.It implies that environmental degradation occurs first as a result of economic growth.The 1992 World Bank Report on "Development and the Environment" popularised it.The field of economics known as environmental economics focuses on the financial effects of environmental regulations.Hence, the correct answer is 'Environmental degradation and per capita income'.
Q133
What do you call the amount of monetary or other returns, either earned or unearned, accruing over a period of time?
✓ Correct answer: b) Income
ExplanationIncome is the total quantity of financial or other gains that accumulate over time, whether they are earned or unearned.It is cash received by an individual or company in exchange for laboring, or producing a good or service.Price is the sum of money that one entity pays or receives in exchange for one unit of products or services from another.The benefit that a product or service provides to an economic agent is measured by its economic value.Service is a transaction in which no physical products are transferred from the seller to the buyer.Hence, the correct answer is "Income".
Q134
Which of the following is NOT a feature of food security?
✓ Correct answer: c) Acceptability
ExplanationAcceptability is not a feature of food security.Food security refers to everyone always having physical, societal, and financial access to enough, safe, and nourishing food.Food security is supported by three pillars: availability, accessibility and affordability.By availability, we imply that enough food is produced domestically.Accessibility implies that food is available to everyone.Everyone should be able to afford enough sustenance that is both adequate and nutritious.Hence, the correct answer is ''Acceptability''.
Q135
As per the Union Budget of 2021-22, how many regional national institutes of virology will be set up?
✓ Correct answer: a) Four
ExplanationAccording to the Union Budget for 2021– 22, four regional national laboratories of virology will be established.Virology National Institute, One of the key Institutes of the Indian Council of Medical Research is located in Pune.In 1967, the World Health Organization named it as one of its cooperating labs.On February 1st, 2021, the Minister of Finance of India unveiled the 2021 Union Budget.Due to the current COVID pandemic, it is the first budget to be presented orally.Hence, the correct answer is ''Four''.
Q136
All monetary transfers or kinds sent by migrants to their place of origin are called
✓ Correct answer: c) remittances
ExplanationRemittances refer to any financial payments of any kind that expatriates send back to their home or country of origin.Remittances make up a sizable portion of global money transfers.Transferring funds in return for a good or service is known as paying.A bill is a formal declaration of the amount of money due for products or services.A draft is a recorded request for payment for products and services made to a bank.Hence, the correct answer is "remittances".
Q137
Which of the following is a characteristic of human wants in terms of economics?
✓ Correct answer: c) Wants are satiable.
ExplanationHuman wants are unlimited; There is no limit to man's wants so any particular want is satiable.Want is often thought of as a psychological desire which makes life just a little more enjoyable, but which is not physiologically necessary to life.Satisfaction is achieved by fulfilling wants.Wants are the form taken by human needs when shaped by culture and individual personality.When backed by buying power, wants become demands companies address needs by putting forth a value proposition, a set of benefits that they promise to consumers to satisfy their needs.Hence, the correct answer is "Wants are satiable."
Q138
Which of the following companies announced the launch of India's first virtual academy programme Esports Academy?
✓ Correct answer: d) Asus
ExplanationAsus Republic of Gamers (ROG) introduced the Asus ROG Academy in India.This initiative marks the debut of India's initial virtual academy program for Esports.It targets aspiring gamers aiming to pursue professionalism.Asus ROG will select PC gamers through a rigorous screening process.Selected individuals will receive the necessary equipment and coaching for their Esports journey.Hence, the correct answer is "Asus."
Q139
The _______ rate measures rising prices in everything except food and energy.
✓ Correct answer: a) core inflation
ExplanationThe Core inflation rate measures rising prices in everything except food and energy.Most frequently, the consumer price index—a measure of prices for goods and services—is used to compute it.A drop in the average level of values for goods and services is referred to as deflation.It is frequently linked to a decrease in the availability of loans and money.Stagflation is a condition with high inflation, sluggish economic development, and persistently high unemployment.It is costly and difficult to eradicate once it starts both in social terms and budget deficits.Hence, the correct answer is “core inflation”.
Q140
The problem of choice between relatively scarce commodities due to limited productive resources with the society can be illustrated with the help of a _______.
✓ Correct answer: c) production possibility curve
ExplanationA production possibilities curve (PPC) shows the maximum amount of one good that can be produced given a production level for some other good, and given the total amounts of inputs available for producing both goods and the production technology.The PPC shows the limits on the outputs of goods because society does not have unlimited resources.It illustrates the trade-off society must bear if more of a good is to be produced.The curve reflects the scarcity of resources and the necessity for choice in allocation.Hence, the correct answer is "production possibility curve."
Q141
Bombay Stock Exchange became the first stock exchange in India to launch commodity derivatives contracts in gold and ______.
✓ Correct answer: a) silver
ExplanationThe first stock market in India to introduce commodity futures contracts for gold and silver was the Bombay Stock market.Premchand Roychand, a cotton merchant, founded the Indian Stock Exchange in 1875, and it is now situated on Dalal Street in Mumbai.It is the tenth-oldest stock market in the globe and the oldest in Asia.As of October 2021, it had the ninth- largest market value of any stock exchange.Hence, the correct answer is “silver”.
Q142
Payment made to others for the purchase of factors of production is known as _______.
✓ Correct answer: b) explicit cost
ExplanationExplicit cost is the name for the sum paid to third parties for the acquisition of manufacturing factors.Explicit costs are regular operating expenses that are recorded in the general accounting and have a direct impact on a business's revenue.Implicit cost is the potential cost equivalent to what a business must forgo to use a production component that it already possesses and is thus not subject to rental fees.The actual work and resources used in manufacturing serve as a gauge for real cost.The real monetary expenditures made in the creation and marketing of marketable products or services are known as the "money cost." Hence, "explicit cost" is correct the correct answer.
Q143
______ is an alphanumeric code that uniquely identifies a bank branch participating in the NEFT system.
✓ Correct answer: b) IFSC
ExplanationAn alphanumeric number called IFSC is used to specifically identify a bank location taking part in the NEFT system.Indian Financial System Code, or IFSC for short, is a designation made by the Reserve Bank of India.It is a special 11-digit alphanumeric number that is used for NEFT, RTGS, and IMPS online money transfer operations.STP is an automatic electronic payment procedure that institutions and businesses use.RTGS is a payment system for continuous and real-time settlement of fund transfers.Hence, IFSC is correct.
Q144
Which of the following states ranked first in the Export Preparedness Index 2020 released by Niti Aayog?
✓ Correct answer: d) Gujarat
ExplanationAccording to Niti Aayog's Export Preparedness Index, Gujarat came in first place.In August 2020, the Export Preparedness Index was launched for the very first time.It is being created in collaboration with the Institute for Competitiveness by NITI Aayog.All States and Union Territories are ranked according to the Export Preparedness Index based on their export success and preparedness.Gujarat has been named India’s top State in terms of export preparedness for the second year in a row as per the Export Preparedness Index (EPI) 2021. Tamil Nadu tops NITI Aayog's Export Preparedness Index 2022 Hence, Gujarat is the correct answer.
Q145
Who among the following economists formulated the Law of Diminishing Marginal Utility (DMU)?
✓ Correct answer: c) HH Gossen
ExplanationThe Law of Diminishing Marginal Utility was established by HH Gossen.He is frequently credited with developing the broad theory of marginal value first.According to the rule of diminishing marginal utility, the marginal utility obtained from consuming each additional quantity of a given good decreases over time.One of the most important traditional economists was David Ricardo.The Father of Economics or The Father of Capitalism are other names for Adam Smith.He was an important character in the Scottish Enlightenment and a political and economic pioneer.Hence, "HH Gossen" is correct.
Q146
Who has been re-appointed as the MD and CEO of the RBL Bank in January 2021 for three years?
✓ Correct answer: c) Vishwavir Ahuja
ExplanationVishwavir Ahuja has been re-appointed as the MD and CEO of the RBL Bank in January 2021 for three years.RBL Bank, also known as Ratnakar Bank, is an Indian private-sector bank headquartered in Mumbai.The bank was established in 1943. In 2016, RBL Bank launched a financial literacy program called Saksham in collaboration with the CDC to provide education to 25,000 individuals and 300 villages in four districts of Madhya Pradesh.Hence, the correct answer is "Vishwavir Ahuja."
Q147
Which of the following is a private good?
✓ Correct answer: b) A good that is consumed by a single person or household
ExplanationA private good is a product that must be purchased to be consumed.Consumption by one individual prevents another individual from consuming it.Examples of private goods include dinner at a restaurant, grocery shopping, and cellphones.Items like food and toilet paper, which are effectively destroyed or rendered unusable through use, also fall under private goods.Hence, the correct answer is "A good that is consumed by a single person or household."
Q148
An economy in which both, the private sector and the government are involved is known as a/an _______ economy.
✓ Correct answer: a) mixed
ExplanationA mixed economy involves the co- existence of private and public investments.It combines elements of both capitalism and socialism.India adopted this model post-New Economic Reforms.In a mixed economy, the government regulates certain sectors while allowing for private enterprise in others.This system aims to balance individual freedom with social welfare.Hence, the correct answer is "mixed."
Q149
Which of the following is one of the three 'Domestic Systemically Important Banks' in India?
✓ Correct answer: a) State Bank of India (SBI)
ExplanationOne of the three "Domestic Systemically Important Banks" in India is the State Bank of India.With a 23% market share by assets, it holds the 43rd-biggest bank position globally and is the largest bank in India.Being a public sector bank, it ranks as India's fifth-largest workplace.TDSIBs are also referred to as “Too Big To Fall” (TBTF) because of their size, cross- jurisdictional activities, complexity and lack of substitute and interconnection.Banks whose assets cross 2% of the GDP are considered DSIBs.If these banks fail, they can have a disruptive effect on the economy Hence, the correct answer is "State Bank of India (SBI)".
Q150
The 'Ecowrap report' was published in May 2020 by which of the following banks?
✓ Correct answer: b) SBI
ExplanationThe ‘Ecowrap report’ for May 2020 was published by the State Bank of India.Ecowrap is a publication by The Economic Research Department of SBI.The report covers various aspects including GDP, Agricultural reforms, and insights into formal and informal economies.It serves as a comprehensive analysis tool for economic trends and forecasts.Hence, the correct answer is "SBI."
Q151
Which of the following organizations releases the Global Innovation Index?
✓ Correct answer: a) INSEAD, Cornell University, WIPO
ExplanationThe Global Innovation Index is published annually by INSEAD, Cornell University, and the World Intellectual Property Organization (WIPO).It encompasses 80 indicators covering various aspects such as innovation, education, infrastructure, etc. In the Global Innovation Index 2022, India secured the 40th position.Hence, the correct answer is "INSEAD, Cornell University, WIPO."
Q152
________is an economic scenario where a peculiar combination of low growth and rising inflation leads to high unemployment.
✓ Correct answer: d) Stagflation
ExplanationIn a stagflationary economy, high unemployment results from an odd confluence of slow development and increasing inflation.Stagflation was first identified in the 1970s when an energy shock caused high unemployment and fast inflation in many developed countries.A recession is a significant slowing or reduction of the economy.A decrease in the overall price level over a specific period is referred to as deflation.Depreciation is the drop in worth caused by wear and tear on a fixed object.Hence, the correct answer is Stagflation.
Q153
Who among the following economists coined the terminology 'Hindu Rate of Growth'?
✓ Correct answer: b) Raj Krishna
ExplanationRaj Krishna, an economist, is credited with creating the expression "Hindu Rate of Growth".The low yearly growth rate of the communist Indian economy before 1991 is referred to as the "Hindu rate of growth".India, with a significant Hindu population, experienced a lower growth rate compared to other Asian nations.From the 1950s to the 1980s, India's annual development rate remained constant at 3.5%.India's per capita income grew by an average of 1.3% between the 1950s and the 1980s.Hence, the correct answer is "Raj Krishna".
Q154
SHG promotes thrift in small proportion by a minimum contribution from each member of the group. What does 'H' stand for in SHG?
✓ Correct answer: c) Help
ExplanationSHG promotes thrift in small doses through a required minimal donation from each participant, and "H" refers for Help in SHG.A committee of financial intermediaries is called Self Help Group.It typically consists of 10 to 25 area women, ranging in age from 18 to50. Non-governmental organisations that typically have wide anti-poverty agendas are the ones who initiate them.They aid in enhancing the conditions of society's impoverished and disadvantaged groups.They were established so that their members would have greater financial stability.Hence, the correc answer is Help
Q155
The rupee symbol, which was introduced in India in 2010, is an amalgamation of the Devanagari ‘Ra’ and the ________ ‘R’ without the stem.
✓ Correct answer: c) Roman
ExplanationThe symbol is an amalgam of Devanagari "Ra" and the Roman Capital "R" without the stem.It features two parallel horizontal stripes running at the top, representing the national flag and also the "equal to" sign.Adopted by the Government of India on 15th July 2010, the Indian Rupee sign typifies India's international identity for money transactions and economic strength.Its design reflects a blend of cultural and modern elements, showcasing India's rich heritage and contemporary global presence.Hence, the correct answer is "Roman."
Q156
Who among the following was appointed as the Managing Director and Chief Executive Officer of SBI Cards and Payment Services Ltd. in January 2021?
✓ Correct answer: d) Rama Mohan Rao Amara
ExplanationRama Mohan Rao Amara assumed the role of MD and CEO of SBI Cards.His appointment took effect from 30th January 2021. He was appointed for a tenure of two years.Rama Mohan Rao Amara brings substantial experience to his new position.Hence, the correct answer is "Rama Mohan Rao Amara."
Q157
Industrial Policy Resolution (IPR) 1956 formed the basis of the _______ Five Year Plan of India.
✓ Correct answer: d) Second
ExplanationIndustrial Policy Resolution (IPR) 1956 formed the basis of the Second Five-Year Plan of India.It was the second in-depth statement on the industrial development of India.For a very long period, it remained the cornerstone of economic strategy.The fast industrialization and public sector growth were the main goals of the second five-year plan.Hence, the correct answer is "Second".
Q158
Unique Transaction Reference number is a _______character code used to uniquely identify a transaction in the RTGS system.
✓ Correct answer: b) 22
ExplanationA transaction in the RTGS system is individually identified by its distinctive Transaction Reference number, a 22- character code.With the RTGS method, funds are transferred in real-time and on a total basis between banks.It is the quickest method of money transmission, and the RBI maintains it.The lowest sum that can be transferred through RTGS is 2 lakh, and it is mainly designed for high-value transactions.It is the quickest method of money transmission through the financial system.Hence, the correct answer is ''22.''
Q159
Which of the following Indian banks launched contactless wearable payment devices called 'Wear N Pay' in March 2021?
✓ Correct answer: c) Axis Bank
ExplanationAxis Bank introduced a range of wearable contactless payment devices named Wear ‘N’ Pay.These devices include various forms of wearables such as a band, key chain, and watch loop.Functioning like a regular debit card, these wearables are directly linked to the bank account of Axis Bank customers.The initiative aimed to provide customers with convenient and secure payment options.Hence, the correct answer is "Axis Bank."
Q160
Which of the following statements is related to positive economics?
✓ Correct answer: d) An increase in money supply implies a price rise in an economy.
ExplanationA rise in prices in an economy is implied by an increase in the money supply, which is a sign of positive economics.The area of economics known as positive economics is focused on describing, quantifying, and explaining economic events.It is an empirical branch of economics that relies on facts or what is happening.It emphasizes data and connections between causes, effects, and behaviours.It states that economic ideas need to make sense in light of current data.Hence, the correct answer is “An increase in money supply implies a price rise in an economy”.
Q161
Reserve Bank of India became the first central bank in the world to have more than one million followers on _______in November 2020.
✓ Correct answer: a) Twitter
ExplanationReserve Bank of India (RBI) became the first central bank in the world to have more than one million followers on Twitter in November 2020. RBI is the central banking institution of India, responsible for formulating and implementing monetary policy in the country.The milestone of reaching one million followers on Twitter reflects the growing interest and engagement with RBI's updates, announcements, and initiatives on the social media platform.Hence, the correct answer is ‘twitter.’
Q162
What do you call a proportionate saving in costs gained by an increased level of production?
✓ Correct answer: b) Economies of scale
ExplanationEconomics of scale refers to proportional cost savings obtained by increasing the level of output.Economies of scale refer to the cost advantage that a company experiences as its production output increases.As production increases, the average cost of production decreases due to various factors such as spreading fixed costs over a larger number of units, increased specialization, and improved efficiency in production processes.This allows the company to produce goods or services at a lower cost per unit, leading to greater cost savings and potentially higher profits.Economies of scale are one of the key drivers behind the expansion and growth of businesses.Hence, "Economies of scale" is correct.
Q163
Savings deposits with Post Office savings banks are included in which measure of money supply?
✓ Correct answer: c) M2
ExplanationData for the four distinct measures of the money supply—M1, M2, M3, and M4— are made available by the Reserve Bank of India.Only M2 and M4 include the Post Office Savings.A retail bank's savings account is similar to a Post Office Savings Account (SB).Adults and minors alike can open a savings bank account.Compared to the M1 measurement, the M2 measurement of the money supply in India is slightly more stringent since it takes post office savings bank savings deposits into account.Hence, the correct answer is "M2".
Q164
The _____ and _____determine the corridor for the daily movement in the weighted average call money rate.
✓ Correct answer: b) Marginal standing facility, Reverse repo rate
ExplanationThe term "Corridor" is used in the context of the monetary policy of the RBI to describe the region that is between the MSF rate and the reverse repo rate.The reverse repo rate will be the lowest of the policy rates, whereas the marginal standing facility rate will be greater than the repo rate.The marginal standing facility rate is similar to an upper ceiling.The corridor for the daily fluctuation in the weighted average call money rate is determined by the MSF rate and the reverse repo rate.Hence, the correct answer is "Marginal standing facility, Reverse repo rate."
Q165
Which Five Year Plan was based on Gadgil Formula?
✓ Correct answer: b) Fourth
ExplanationThe Five-Year Plan was introduced under the Prime Ministership of Indira Gandhi and attempted to correct the previous failures.Based on the Gadgil Formula, a great deal of emphasis was laid on growth with stability and progress towards self- reliance.The government nationalised 14 major Indian Banks, and the Green Revolution boosted agriculture.The Drought Prone Area Programme was also launched.The target growth rate was 5.6%, but the actual growth rate was 3.3%.Hence, the correct answer is "Fourth".
Q166
Choose the correct pair from the following options.
✓ Correct answer: b) Fourth Five-year Plan - Family planning programme
ExplanationThe agriculture sector was given attention in the first five-year plan, which included investments in dams and irrigation systems.The public sector and fast industrialization were given a lot of attention in the Second Five-Year Plan.The Third Five Year Plan's primary focus was on agricultural development.The demographic justification of family planning was given precedence over its health reason in the Fourth Five-year Plan, which marked the beginning of this trend.Hence, the correct answer is "Fourth Five- year Plan - Family planning programme".
Q167
The value of the Gross Domestic Product (GDP) of India is published by PIB in
✓ Correct answer: d) Indian Rupee
ExplanationPIB releases the GDP figure expressed in Indian Rupees.Compared to the First Revised Estimates of GDP for the year 2021–22, which were ₹149.26 lakh crore, Real GDP, or GDP at Constant (2011–12) Prices, is predicted to reach a level of ₹160.06 lakh crore in 2022–23. Real GDP growth in 2022–2023 is predicted to be 7.2 percent, down from 9.1 percent in 2021–2022. The gross value added (GVA) at base prices, all product taxes, and all product subsidies are added up to determine GDP.Both GST and non-GST tax revenue are included in the total tax revenue used to compile the GDP.Hence, the correct answer is "Indian Rupee".
Q168
________is a record of assets and liabilities of any firm.
✓ Correct answer: c) Balance sheet
ExplanationA balance sheet is a kind of financial statement that summarises an organization's assets, liabilities, and shareholder equity at a certain moment in time.Since the 'balance sheet' is not an account but rather a statement, there is neither a debit or credit side to it.Therefore, the assets are presented on the right-hand side of the balance sheet, while the liabilities are shown on the left- hand side.Hence, Balance sheet is the correct answer.
Q169
Which Indian budget introduced a statement highlighting the gender sensitivities of the budgetary allocations?
✓ Correct answer: c) 2005-06
ExplanationThe phrase underlining the gender sensitivity of the financial allocations was first adopted in the Union Budget for 2005-2006. It was composed of something called a Gender Budget Statement (GBS), which was divided into two sections: Women Specific Schemes and Pro Women Schemes.When it comes to attaining gender mainstreaming, gender budgeting is a strong instrument that can be used to guarantee that the advantages of development reach women to the same extent as they reach males.Hence, the correct answer is "2005-06".
Q170
What is the currency of Canada?
✓ Correct answer: c) Canadian Dollar
ExplanationThe currency of Canada is the Canadian Dollar, abbreviated as CAD or C$.It is the official currency used throughout Canada and is often represented by the symbol $.The Canadian Dollar is subdivided into 100 cents.The Peso is the currency used in several countries, including Mexico, Argentina, and Chile.The Euro (€) is the official currency of the Eurozone.Hence, the correct answer is “Canadian Dollar”.
Q171
In which year had India's ratio of public debt to GDP gone up to a record 84.2 %?
✓ Correct answer: c) 2003
ExplanationIndia's public debt to GDP ratio increased to a record 84.2% in 2003. As per the recommendations of the N. K. Singh committee on fiscal consolidation, the government ought to aim for a 3 percent fiscal deficit by March 31, 2020, reduce it to 2.8 percent in 2020–21, and reach 2.5 percent by 2023. The Committee recommended that India's fiscal policy be anchored in the medium term by the ratio of public debt to GDP.The committee recommended setting a combined debt-to-GDP ratio target of 60% by 2023, with a 40% limit for the center and a 20% limit for the states.Hence, the correct answer is "2003".
Q172
What is the projected growth rate of Gross Domestic Product (GDP) for India in 2021 as given by The International Monetary Fund (IMF) in April 2021?
✓ Correct answer: d) 12.5 %
ExplanationThe International Monetary Fund (IMF) provided India with 12.5% of its GDP for 2021 in April 2021. Global output was predicted by the IMF to increase by 4.4% in 2022 and 6% in 2021. The forecast for advanced economies in 2021 is 5.1%, with the US and Spain experiencing the fastest recovery at 6.4% apiece.India's statistics office reports that the country's economy shrank by 8% in FY21, but the Economic Survey 2020–21 predicts an 11% increase in FY22. Hence, the correct answer is "12.5 %".
Q173
The Regional Rural Banks were established on the recommendations of _____ the on Rural Credit.
✓ Correct answer: d) Narsimham Committee
ExplanationRegional Rural Banks (RRBs) were founded in 1975 as a result of the Narasimhan Committee's recommendation.These are regionally active scheduled commercial banks in India.These mostly provide basic banking and financial services to rural communities.Hence, the correct answer is “Narasimham Committee".
Q174
As announced by the Ministry of Finance in January 2021, external debt as a ratio to GDP stood at ______ at the end of September 2020.
✓ Correct answer: a) 21.6%
ExplanationAccording to the economic survey released by the Ministry of Finance in January 2021, external debt as a percentage of GDP increased from 20.6% at the end of March 2020 to 21.6% at the end of September 2020. According to NSO's preliminary estimates, India's GDP was predicted to expand by (-) 7.7% in FY21. India's nominal GDP is expected to grow by 15.4% in FY 2021–22, the highest growth since independence, while the real GDP is expected to grow by 11.0%.The second half of FY21 is predicted to see a 5.8% drop in exports and an 11.3% decline in imports.After 17 years, India is predicted to have a current account surplus of 2% of GDP in FY21, a record high.Hence, the correct answer is "21.6%”.
Q175
In Union Budget 2021-22, there is a proposal to provide liquid waste management in AMRUT cities under Jal Jeevan Mission (Urban).
✓ Correct answer: c) 500
ExplanationA proposal to provide liquid waste management under the Jal Jeevan Mission (Urban) in 500 AMRUT cities can be found in the Union Budget 2021– 2022. A union budget, according to Article 112 of the Constitution, is essentially a statement of the government's estimated receipts and expenditures.It is also referred to as the government's annual financial statement.The Ministry of Finance's Department of Economic Affairs is the nodal agency in charge of creating the budget.The first budget of the new decade, 2021–2030, and the first budget for a digital union, respectively, is budget 2021–2022. Hence, the correct answer is "500".
Q176
As per an estimate by the ‘Food Waste Index Report 2021’, released by the United Nations Environment Programme (UNEP) in March 2021, India wastes approximately ______ kg of food per person per year.
✓ Correct answer: c) 50
ExplanationBased on an estimate from the United Nations Environment Programme's (UNEP) "Food Waste Index Report 2021," which was published in March 2021, India wastes about 50 kg of food annually per person.According to estimates, US households waste 59 kg of food per person annually, or 19,359,951 tonnes.These figures translate to 64 kg per person annually or 91,646,213 tonnes in China.The Food Waste Index Report 2021 was published by WRAP and the United Nations Environment Programme (UNEP).This report states that 931 million tonnes of food were lost to waste worldwide in 2019. Hence, the correct answer is "50".
Q177
The poverty ratio has declined to __________ in 2011-12 in Urban India.
✓ Correct answer: b) 26.4 percent
ExplanationDuring the event, the womenfolk of the village will be singing and dancing in the Ponung tradition.The percentage of people living in poverty in rural India has decreased from 39.6% in 2009-10 to 30.9% in 2011-12, while the percentage of people living in poverty in urban India has decreased from 35.1% to 26.4%.As a result, the decrease in urban poverty was 8.7 percentage points on average throughout the two years.The percentage of people living in poverty across India decreased from 38.2% to 29.5%.Hence, the correct answer is "26.4 percent".
Q178
The GDP deflator is also called:.
✓ Correct answer: c) implicit price deflator
ExplanationA gauge of inflation is the GDP deflator, often known as the implicit price deflator.It is use to measure inflation.It is the difference between the value of goods and services an economy generates in a given year at the going rate and the going rate in the base year.Hence, the correct answer is"implicit price deflator".
Q179
The government of India initiated the comprehensive family planning programme in the year ______.
✓ Correct answer: c) 1972
ExplanationThe government of India launched the comprehensive family planning initiative in the same year, 1972. This programme is also known as the National Initiative for Family Planning.India was the first country in the whole globe to take this historic step of implementing such a scheme on a statewide scale.The primary objective of this initiative was to slow down the pace at which the population was expanding.Hence, the correct answer is "C) 1972 ."
Q180
Which of the following does NOT come under the category of Public Goods?
✓ Correct answer: b) Food items
ExplanationPublic commodities are nonexcludable and nonrivalrous, which are their two distinctive features.Nonexcludable denotes that it would be difficult or expensive to bar someone from utilising the products.Because a public good is nonrivalrous, it may be used by more than one individual at the same time.This is its second key quality.Therefore, food products do not fall within the category of public goods.Hence the correct answer is "Food items" .
Q181
Which of the following statements is/are correct? I.Only marketed goods are considered while estimating Gross Domestic Product (GDP). II. The work done by a woman at her home is outside the purview of Gross Domestic Product. III. In estimating GDP, only final goods and services are considered.
✓ Correct answer: b) I, II and III
ExplanationGross Domestic Product (GDP) is the total monetary or market value of all finished goods and services produced within a nation's borders over a specific period of time.The entire value of finished goods produced, sold, and not resold within the current year is included in GDP.Because it is an extensive indicator of total domestic production, it functions as a thorough scorecard of a nation's economic health.The only goods included in GDP in a free market economy are those that are sold on the market.In other words, buyers are prepared to pay for the goods they use.In general, goods that customers do not pay for are not included in GDP.Non-monetary goods and services (like cooking by a housewife) are not taken into account when calculating GDP.GDP only accounts for the final output of goods and services—it does not account for intermediate goods or labor value in the supply chain—in order to prevent double-counting, or adding the value of output to the GDP more than once.Hence, the correct answer is "I, II and III".
Q182
Which of the following is India's first Paperless Budget?
✓ Correct answer: d) Union Budget 2021-22
ExplanationThe first paperless budget was delivered by Finance Minister Nirmala Sitharaman on February 1st, 2021. Due to the COVID-19 outbreak in India, this was done.This supports the ambitious Digital India vision of Prime Minister Narendra Modi.On April 7, 1860, India unveiled its first budget.James Wilson, a Scottish economist and politician from the East India Company, gave it to the British Crown.After Independence, India’s first Finance Minister, Shri Shanmukham Chetty, presented the first budget of independent India on 26th November 1947. Hence, the correct answer is "Union Budget 2021-22".
Q183
Who among the following was the first Indian Governor of Reserve Bank of India?
✓ Correct answer: a) C.D. Deshmukh
ExplanationOsborne Smith, a British banker , was the first person to occupy the position.First Indian Governor: Chintaman Dwarkanath Deshmukh The first Indian Governor of the Bank was a member of the Indian Civil Service.After serving as Secretary, he was appointed Deputy Governor of the Bank in 1941. From 1 March 1962 until 30 June 1967, Paresh Chandra Bhattacharya served as the seventh Governor of the Reserve Bank of India.From 1 March 1957 until 28 February 1962, Haravu Venkatanarasingha Verada Raj served as the sixth governor of the Reserve Bank of India.Lakshmi Kant Jha served as the Reserve Bank of India's ninth governor from 1 July 1967 until 3 May 1970. Hence the correct answer is "C.D.Deshmukh".
Q184
The subject of the Study of Macro Economics is based on which principle?
✓ Correct answer: a) The principle of National Income
ExplanationPrinciple of National Income: National income is the total worth of goods and services a country produces over a given fiscal year.Consequently, it is the total of all economic activities that are done in a country in a given year.It is worth a certain amount of money.Both "national output" and "national spending," as well as "national income" and "national dividend," are imprecise phrases.The study of how economies work, including shifts in the balance of payments, inflation, interest and foreign exchange rates, and economic output, is known as macroeconomics.Sustainable growth, social equity, and poverty alleviation are only possible with sound fiscal and monetary policy.Hence, the correct answer is "The principle of National Income"
Q185
Which sector was given the main emphasis in the second Five-Year Plan?
✓ Correct answer: d) Industry
ExplanationThe second Five-Year Plan placed the greatest emphasis on the Industry sector.The industrial sector of the economy consists of businesses that assist other businesses in manufacturing, shipping, or producing their commodities.The industrial sector is known as a secondary sector since it sells its products and services to other businesses rather than to consumers directly.The industrial sector is usually influenced by shifts in supply and demand in other sectors because of its reliance on purchases from businesses in those areas.Hence, the correct answer is "Industry".
Q186
Joint Liability Group is usually an informal group that consists of individuals who seek loans against mutual guarantee.
✓ Correct answer: c) (4-10)
ExplanationA Joint Liability association, often known as a JLG, is typically an informal association.The loans that are obtained by JLGs are typically used for agricultural objectives or activities related with agriculture.Borrowers who fall into this group include farmers, rural employees, and renters living in rural areas.Hence, the correct answer is "4-10."
Q187
As per the Union Budget 2021-22, Mission Poshan 2.0 is proposed to be launched to improve nutritional outcomes across _____ aspirational districts.
✓ Correct answer: d) 112
Explanation112 aspirational districts are prioritised by Mission Poshan 2.0. The mission to create procedures that promote children's and pregnant women's health, wellbeing, and immunity while making a deliberate effort to eradicate malnutrition from its source.Poshan Abhiyan and the Supplementary Nutrition Programme will be absorbed by the mission.Hence, the correct answer is "112".
Q188
In which Five-Year Plan, was the Mahalanobis Model started?
✓ Correct answer: a) Second
ExplanationThe Mahalanobis Plan was India's second five-year plan (1956-61) and was conceived by and formulated by Professor P.C. Mahalanobis.The second fiver year plan (1956 - 1961) focused on industrial development.He established the Indian Statistical Institute (ISI) in 1931 and had a position of prominence in the field of Indian statistics.Hence, the correct answer is "Second".
Q189
Who among the following first argued that in the face of high deficits, people save more?
✓ Correct answer: d) David Ricardo
ExplanationDavid Ricardo was the first to argue that when deficits are large, people save more.The English political economist David Ricardo is widely credited with creating the law of comparative advantage.In 1817, he wrote "On the Principles of Political Economy and Taxation." The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading partners is known as a comparative advantage.With a comparative advantage, a business can outperform its rivals in terms of sales margins by offering products and services at a lower cost.Hence, the correct answer is "David Ricardo".
Q190
Money multiplier can be expressed as ______.
✓ Correct answer: d) 1/ Cash Reserve Ratio
ExplanationThe phenomenon known as the money multiplier, which refers to the process by which money is generated in the form of the production of credits in the economy, is founded on the fractional reserve banking system.The money multiplier, in which the reserve ratio may be found.Hence, the correct answer is "D) 1/ Cash Reserve Ratio ."
Q191
At a Regional Rural Bank, the share of the Government of India is ______.
✓ Correct answer: c) 50%
ExplanationOn December 18, 2014, Finance Minister Arun Jaitley introduced the Regional Rural Banks (Amendment) Bill, 2014 in the Lok Sabha.The purpose of the bill is to amend the 1976 Regional Rural Banks Act.According to the Act, the sponsor bank is required to hold 35% of the capital issued by an RRB, 15% by the concerned state government, and 50% by the central government.The Bill permits RRBs to sponsor banks and obtain capital from sources other than the central and state governments.Hence, the correct answer is "50%".
Q192
Where does the headquarters of the Indian Council of Agricultural Research Institute located?
✓ Correct answer: d) New Delhi
ExplanationThe Indian Council of Agricultural Research, also known as ICAR, is an independent organisation that is in charge of coordinating agricultural education and research in India.ICAR is an acronym for the Indian Council of Agricultural Research.The Ministry of Agriculture's Department of Agricultural Research and Education is the organization to which it reports.New Delhi is home to the ICAR's administrative offices.Hence, the correct answer is "New Delhi"
Q193
Which of the following states was allocated the highest budget for highway projects in Union Budget 2021-22?
✓ Correct answer: c) Tamil Nadu
ExplanationAn investment of ₹1.03 lakh crore has been planned for 3,500 km of national highway projects in Tamil Nadu, including the creation of the Madurai-Kollam economic corridor.1,100 km of proposed national roads in Kerala will cost ₹65,000 crore to build.This encompasses the corridor's 600 kilometres from Mumbai to Kanyakumari.For 675 km of highway work in West Bengal, which is close to holding elections, 25,000 crore has been set aside, including the reconstruction of the Kolkata-Siliguri highway.Ms Sitharaman declared that 1,300 km of new national highway would be developed in Assam during the next three years.Hence, the correct answer is "Tamil Nadu".
Q194
Which of the given sectors is largely driven by considerations of social welfare?
✓ Correct answer: c) Public
ExplanationThe public sector contributes to the growth of the financial sector, and the primary goal is to promote social welfare and security.It is under the authority of the national government, as well as the state or province governments, and the municipal governments.It is the supplier of important social services that offers them as a last option.It is in the greatest position to provide a safety net to residents who are unable to pay the going rate for health care or educational services.Hence, the correct answer is "Public".
Q195
Which of the following is NOT a part of the institutional structure of rural banking?
✓ Correct answer: a) Moneylenders
ExplanationMoneylenders are not a part of the formal institutional structure of rural banking.They are informal lenders who provide loans to individuals, often at higher interest rates.The other options mentioned, such as regional rural banks, commercial banks, and cooperative and land development banks, are all part of the formal rural banking structure.Hence, the correct answer is Moneylenders
Q196
Effect of The Industrial Policy, 1956 on industries was __________.
✓ Correct answer: a) industries started to get diversified
ExplanationIndustrial Policy, 1956 aimed at promoting large-scale and public sector industries.It classified industries into three categories: Schedule A: Exclusive to the public sector Schedule B: Mixed sector (public and private) Schedule C: Left to private sector As a result, India’s industrial base became more diversified, covering heavy, basic, and consumer industries.Hence, the correct answer is "Industries started to get diversified ."
Q197
In India initially HYVP was implemented in about how much area?
✓ Correct answer: d) 2 million hectares
ExplanationThe High Yielding Variety Programme (HYVP) was initiated in 1966, and it was this program that assisted the nation in becoming self-sufficient in terms of food production.In 1966 and 1967, the HYVP was first implemented on a very modest landmass of 1.89 million hectares.In the years 1998-1999, the total area covered reached 78.4 million hectares.Hence, the correct answer is "2 million hectares ."
Q198
As per World Justice Project 2020, what is India's rank in Regulatory Enforcement as cited in Economic Survey of India 2021?
✓ Correct answer: b) 79
ExplanationAccording to the World Justice Project's (WJP) Rule of Law Index 2021, India is placed 79th out of 139 nations and regions.On the World Justice Project's (WJP) Rule of Law Index for 2021, Denmark, Norway, and Finland placed first.Last three: Congo, Democratic Republic (137), Cambodia (138), and Venezuela (139).Hence the correct answer is "79" .
Q199
The Cabinet Committee on Economic Affairs (CCEA) approved an increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops for the marketing season 2021–22 in line with the recommendations of the ______ Commission.
✓ Correct answer: c) Swaminathan
ExplanationThe Cabinet Committee on Economic Affairs (CCEA) approved an increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops for the 2021–22 marketing season, following the Swaminathan Commission recommendations.The Swaminathan Commission was appointed by former Prime Minister Manmohan Singh to address agricultural issues.It was headed by Professor M.S. Swaminathan and aimed to tackle the nationwide problem of farmers' suicides in India.The report identified the main causes of the agrarian crisis as incomplete land reforms, water scarcity and quality issues, technological fatigue, limited access to timely credit, and inadequate marketing opportunities.The Commission emphasized the need for land reforms to ensure fair access to land for both crop cultivation and livestock.Professor M.S. Swaminathan is renowned for his pivotal role in India’s Green Revolution.Hence, the correct answer is "Swaminathan".
Q200
Who among the following Presidents of India was also the deputy chairman of Planning Commission?
✓ Correct answer: d) Pranab Mukherjee
ExplanationDuring the years 1991 to 1996, Pranab Mukherjee served as the Deputy Chairman of the Planning Commission.From the years 1993 to 1995, he served as Minister of Commerce, and from 1995 to 1996, he held the position of Minister of External Affairs.Pranab Mukherjee was indeed elected as the President of India on July 25, 2012, and he served a full five-year term until July 25, 2017. Hence, the correct answer is "Pranab Mukherjee".
Q201
According to the Union Budget 2020-2021, the bank credit growth as of January 1, 2021, stood at ______%
✓ Correct answer: b) 6.7
ExplanationAs per the Union Budget 2020-2021, the bank credit growth on January 1, 2021, was reported to be 6.7%.Current data, as of June 2022, reveals a year-on-year growth of 13.1% in bank credit, the highest in the past three years.The Reserve Bank of India (RBI) released this information, indicating a significant improvement compared to the 5.7% growth in the previous year.This growth in bank credit is a positive sign for the economy, reflecting increased financial activities and lending by banks.Such credit growth is crucial for economic development as it supports businesses and individuals in their financial endeavors.Hence, the correct answer is "6.7".
Q202
As per the Economic Survey 2021, in which of the following states did the proportion of households that had health insurance decrease by 12% from 2015-16 to 2019-20?
✓ Correct answer: a) West Bengal
ExplanationAccording to the Economic Survey 2021, Bihar, Assam, and Sikkim had an 89% increase in the percentage of households with health insurance from 2015–16 to 2019–20. While in West Bengal, it fell by 12% during the same time period.From 2015–16 to 2019–20, the infant mortality rate decreased; for West Bengal, it decreased by 20%, and for the three adjacent states, it decreased by 28%.In comparison to 2012, access to the "bare necessities" has increased in all 50 States.States like Kerala, Punjab, Haryana, and Gujarat have the highest rates, while States like Odisha, Jharkhand, West Bengal, and Tripura have the lowest rates.Hence, "West Bengal" is the correct answer.
Q203
As per Union Budget 2021-22, Fiscal deficit is estimated at ______ per cent of GDP in 2021-22.
✓ Correct answer: b) 6.8
ExplanationFiscal Deficit for the Financial Year 2021- 22 is estimated at 6.8 per cent in BE 2021-22. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha on 16 March 2021. The Minister stated that the restructured fiscal consolidation path aims Government of India's Fiscal Deficit to reach below 4.5 per cent of Gross Domestic Product (GDP) by 2025-2026. Hence, the correct answer is "6.8".
Q204
The National Rail Plan announced in the Union Budget of 2021-22 aims to create a future ready railway system by which of the following years?
✓ Correct answer: b) 2030
ExplanationDuring the Lok Sabha Budget Presentation for 2021–2022, Indian Railways presented a National Rail Plan for 2030, according to Union Finance Minister Nirmala Sitharaman.The National Rail Plan for India 2030 will develop a railway network that is prepared for the future and reduce logistical costs for businesses to support Make in India.By 2030, a railway system that is prepared for the future will be built.Hence, the correct answer is "2030".
Q205
Which of the following functions of government budget is associated with distribution of income? I. Allocation function II.Redistribution function
✓ Correct answer: d) Only II
ExplanationThe government budget should prioritize the equitable distribution of income as one of its primary goals.Through the use of its fiscal policies, the government makes an effort to encourage a more equitable and just distribution of income within an economy.This is accomplished through the administration of taxation and fiscal policy.Hence, the correct answer is "Only II ."
Q206
As per the Union Budget 2021-22, the government plans to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by ______.
✓ Correct answer: d) 2025-26
ExplanationThe government plans to keep fiscal consolidation going and reduce the deficit to less than 4.5 percent of GDP by 2025–2026. Smt. Nirmala Sitharaman, the Union Minister for Finance and Corporate Affairs, made this statement in Parliament during her presentation of the Union Budget 2023–24. The Finance Minister went on to say that in BE 2023–2024, the projected budget deficit is 5.9% of GDP.An estimated Rs. 11.8 lakh crore in net market borrowings from dated securities will be needed to finance the fiscal deficit in 2023–2024. It is anticipated that additional funding will come from other sources and tiny savings.Estimates place the gross market borrowings at Rs. 15.4 lakh crore.Hence, the correct answer is "2025-26".
Q207
The interest rate at which the Reserve Bank of India provides overnight liquidity to banks is called ______.
✓ Correct answer: b) Marginal standing facility rate
ExplanationRepo Rate – This is the general lending rate at which RBI lends to banks for the short term (often overnight) against approved government securities.It is the main monetary policy tool.Marginal Standing Facility (MSF) – This facility was introduced in 2011 to help banks borrow overnight funds from the RBI during times of acute liquidity shortage.Banks can use their SLR securities (even dipping below the required limit) for this borrowing.Key Difference: Repo → routine short-term borrowing.MSF → overnight emergency borrowing window (always at a rate higher than Repo).Therefore, the interest rate at which RBI provides overnight liquidity to banks under the MSF facility is called the Marginal Standing Facility Rate.Hence, the correct answer is "Marginal standing facility rate".
Q208
The allocation towards health and well-being was increased by_______over the previous year in Union Budget 2021-22.
✓ Correct answer: d) 137%
ExplanationHealth and wellbeing have formed the topmost priority of the Union Government during the COVID-19 health crisis.It is the most important of the six main pillars that support the Union Budget 2021–2022. Emphasizing the critical role that health and well-being play in the nation's growth and development, the budgetary allotment for these areas has been raised from Rs 94,452 crore in BE 2021–22 to Rs 2,23,846 crore in BE 2021–22. This manifests in a sharp increase of 137 percent.Hence, the correct answer is "137%".
Q209
The Economic Survey of 2020-21 mentions that India’s fiscal policy should reflect ______ sentiment of ‘a mind without fear’.
✓ Correct answer: b) Gurudev Rabindranath Tagore's
ExplanationAccording to the Economic Survey for 2020–21, India's fiscal policy should exemplify Gurudev Rabindranath Tagore's philosophy of "a mind without fear." The Economic Survey of India is a yearly report that examines changes in the Indian economy over the previous 12 months and is published by the Finance Ministry of the Indian Government.The policies related to taxation and expenditure by the government which affect the economy is known as fiscal policy.Hence, "Gurudev Rabindranath Tagore’s" is the correct answer.
Q210
As per the Economic Survey of India 2021, SENSEX and NIFTY resulted in India's market- cap to GDP ratio crossing for the first time since October 2010.
✓ Correct answer: a) 100%
ExplanationIndia's market-cap to GDP ratio crossed 100% for the first time since October 2010 as a result of the buoyant SENSEX and NIFTY.The benchmark index of the BSE in India is referred to as the "Sensex." The 30 largest and most popular equities on the BSE make up the Sensex, which serves as a barometer for the Indian economy.The 50 largest Indian firms listed on the National Stock Exchange make up the benchmark NIFTY 50 index, which measures the performance of the Indian stock market.Hence, "100%" is the correct answer.
Q211
Which of the following facts is NOT associated with PC Mahalanobis who contributed to the formulation of India’s Five Year Plans?
✓ Correct answer: d) Mahalanobis was born in 1983 in Calcutta
ExplanationMahalanobis was born on June 29, 1893, in the city of Calcutta, India.C. Mahalanobis is widely regarded as the country of India's "father of modern statistics." He established the Indian Statistical Institute (ISI) and was instrumental in the formation of the Planning Commission.Hence, the correct answer is "Mahalanobis was born in 1983 in Calcutta".
Q212
What is the emigration of a significant proportion of a country's highly skilled, highly educated professional population to other countries offering better economic and social opportunities called?
✓ Correct answer: b) Brain Drain
ExplanationThe phrase "brain drain" refers to the exodus of highly educated, highly skilled professionals to countries where they may make more money and maintain their academic advancement.The reasons behind brain drain vary.The major factors include looking for work or better-paid work, political unrest, and a desire for a better standard of living.Brain drain causes can be classified into Push and Pull factors.Push factor means the factors arising at home due to unrest, poverty, and unemployment.Pull factor means the factors that pull the population to migrate to that place due to better opportunities, the standard of living, or a low crime rate.Hence, the correct answer is "Brain drain".
Q213
What is the repo rate given by the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) as on 7 April 2021?
✓ Correct answer: b) 4 %
ExplanationThe repo rate was held at 4% by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).The repo rate is the interest rate at which a nation's central bank (in India, the Reserve Bank of India) loans money to commercial banks in the event of a funding shortage.The reverse repo rate is the rate at which a nation's central bank, in this case, the Reserve Bank of India, borrows money from domestic commercial banks.The reverse repo rate under the LAF remains unchanged at 3.35 percent.Hence, the correct answer is "4%".
Q214
The official enumeration of population done periodically is called _______.
✓ Correct answer: a) Census
ExplanationA census is an official enumeration of the population that is carried out on a regular basis.The year 1872 marked the beginning of India's first official census.On the other hand, the first comprehensive census was conducted in the year 1881. Hence, the correct answer is "Census."
Q215
As per Economic Survey 2020-21, India entered the top 50 innovating countries for the first time in ______ since the inception of the Global Innovation Index in 2007.
✓ Correct answer: c) 2020
ExplanationThe Global Innovation Index (GII) 2020 rates 131 nations, with India coming in at number 48 in terms of innovation performance.On the output and input sub-indices, India is ranked 45th and 57th, respectively.Since the index's creation in 2007, India has made its maiden appearance among the top 50 innovative nations in 2020. India ranks 40 in the Global Innovation Index 2023. Hence, the correct answer is "2020".
Q216
According to the Economic Survey 2020-2021, India’s real GDP is projected to record ______ growth in the Fiscal Year 2021-22.
✓ Correct answer: c) 11%
ExplanationIndia's nominal GDP will grow by 15.4% in FY2021–22, the highest growth since independence, while the real GDP will grow by 11.0%.The Ministry of Finance, Government of India, publishes the Economic Survey of India every year.Every year, right before the Union Budget, the Ministry of Finance's Department of Economic Affairs presents the Survey to the Parliament.Under the direction of India's Chief Economic Adviser, it is being prepared.Hence, the correct answer is "11%".
Q217
If we deduct depreciation from GNP the measure of aggregate income that we obtain is called ______.
✓ Correct answer: c) Net National Product
ExplanationGross national product (GNP), which is the total value of completed goods and services produced by a nation's population both domestically and abroad, with less depreciation, is known as net national product (NNP).NNP is frequently assessed annually to gauge a country's performance in maintaining minimal production criteria.The term "depreciation" refers to how fixed capital loses value as a result of normal wear and tear from being used for productive purposes.The goal of the gross domestic product at market prices is to quantify the total wealth produced during a specific time period in a nation by both public and private entities.Economists refer to GDP, or gross domestic product, as the size of an economy.The total amount of money that citizens of a nation get from all sources within a given year, before direct taxes, is their personal income.Hence, the correct answer is "Net National Product".
Q218
The Balance of Payment Account of an economy is related to the __________.
✓ Correct answer: b) external sector
ExplanationThe Balance of Payment (BoP) account of an economy is related to the external sector.It records all economic transactions between the residents of a country and the rest of the world over a specific period of time, including trade in goods and services, financial transactions, and transfers.Hence, the correct answer is "external sector".
Q219
What is the purpose of the Licensing Policy in India?
✓ Correct answer: d) To promote regional equality
ExplanationThe licensing policy was first implemented in the Industrial Production Act of 1956 in order to encourage regional equality.It was initiated with the fundamental purpose of encouraging the construction of industry in underdeveloped regions, with a view to encouraging regional equality in the progression of industrialization.Hence, the correct answer is "To promote regional equality ."
Q220
__________ is a tax system that collects a greater share of income from those with high incomes than from those with lower incomes.
✓ Correct answer: d) Progressive tax
ExplanationThe income of an individual or entity increases the tax liability under progressive taxation.This is based on the principle of ability to pay.The highest-income individuals pay the highest taxes under this system, while those with the lowest incomes are typically exempted.Therefore, one type of progressive tax is income tax.Income is redistributed from the rich to the poor as a consequence of progressive taxation.People with higher incomes pay a higher tax rate under a progressive tax system.Hence, the correct answer is "Progressive tax".
Q221
Which of the following is NOT the function of the central bank of the country?
✓ Correct answer: c) It accepts deposits from the public.
ExplanationCentral banks play a pivotal role in overseeing a nation's monetary system, with responsibilities that encompass overseeing monetary policy and achieving specific objectives like currency stability and low inflation.Key functions of a central bank include acting as the currency regulator or bank of issue, serving as a bank to the government, and being the custodian of cash reserves and international currency.Additionally, central banks function as the lender of last resort, a clearing house for transfer and settlement, and a controller of credit.Hence, the correct answer is "It accepts deposits from the public".
Q222
With which bank have Dena Bank and Vijaya Bank been merged?
✓ Correct answer: d) Bank of Baroda
ExplanationThe Bank of Baroda is a state-owned financial services and banking institution that was founded on July 20, 1908. Its headquarters are in Gujarat, India's Vadodara (formerly Baroda).The top public sector bank in India, Bank of Baroda, has a significant domestic presence and is backed by self-service channels.As of April 1, 2019, the Bank of Baroda has amalgamated with Dena Bank and Vijaya Bank.For every 1,000 shares held, Vijaya Bank shareholders will receive 402 equity shares of BoB under the terms of the Scheme of Amalgamation.For every 1,000 shares in Dena Bank, its shareholders will receive 110 shares of BoB.Hence, the correct answer is "Bank of Baroda".
Q223
Achievement of self-reliance and removal of poverty were twin objectives of which five-year plan?
✓ Correct answer: b) Fifth
ExplanationThe fifth five-year plan, which ran from 1974 to 1979, was initiated with the dual goals of reducing levels of poverty and increasing levels of self-sufficiency.In terms of defence and agricultural production, self-sufficiency was another primary goal of the strategy.The government that was led by the Janata Party decided to scrap the previous five-year plan and replace it with a new one that would run from 1978 to 1980. Hence, Fifth is the correct answer.
Q224
Gross primary deficit is the difference between ______.
✓ Correct answer: d) gross fiscal deficit and net interest liabilities
ExplanationGross primary deficit is defined as the gross fiscal deficit minus net interest liabilities.It measures the government's borrowing requirements for the current year, excluding the burden of past debt (interest payments).Gross Fiscal Deficit: The total excess of government expenditure over non-debt receipts.Net Interest Liabilities: The difference between the government's total interest payments and its interest receipts from loans or investments.Formula: Gross Primary Deficit = Gross Fiscal Deficit – Net Interest Liabilities.Hence, the correct answer is "gross fiscal deficit and net interest liabilities".
Q225
What is the currency of Australia?
✓ Correct answer: a) Dollar
ExplanationThe currency of Australia is the Australian Dollar, abbreviated as AUD or A$.It is the official currency of Australia and its territories.The Australian Dollar is further divided into 100 cents and is recognized for its distinctive polymer banknotes.Peso - The Peso is the currency used in countries like Mexico, the Philippines, and several Latin American nations.Rand - The Rand is the currency of South Africa.Hence, the correct answer is “Dollar”.
Q226
Which company set up a factory on the banks of River Hugli in 1651?
✓ Correct answer: c) English
ExplanationIn 1608, the East India Company made its first arrival in India through the sea channel at Surat to start commerce with India.On the banks of the Hugli River in Bengal, in the year 1651, the first English factory was established there.This factory was established in the village of Hooghly (now Haldia) and marked one of the earliest colonial footholds of the British in India.The factory aimed to facilitate trade and establish a presence in the region.Hence, the correct answer is 'English '.
Q227
With respect to India’s foreign trade, which year is referred to as the year of divide?
✓ Correct answer: b) 1991
ExplanationThe implementation of economic reforms in India in 1991 resulted in the deregulation of the country's economy and a notable acceleration in the pace at which it expanded.These reforms were initiated when Narasimha Rao was serving as Prime Minister of India.They were designed to achieve three primary goals: liberalization, privatisation, and globalisation (LPG).As a consequence of this, 1991 is considered to be the "year of divide" in terms of India's international commerce.Hence, the correct answer is "1991 ."
Q228
What is the currency of South Africa?
✓ Correct answer: a) Rand
ExplanationThe currency of South Africa is the South African Rand, abbreviated as 'ZAR'.It is the official currency used in South Africa and is further divided into cents.The Rand is known for its banknotes featuring images of iconic South African figures.The Rial is the currency used in countries like Iran and Oman.The Euro (€) is the currency used in several European countries.The Peso is the currency used in countries like Mexico, the Philippines, and several Latin American nations.Hence, the correct answer is “Rand”.
Q229
Which of the following statements is true? A) Wage bill of the government is a capital expenditure. B) Disinvestment by the government in a company is a capital receipt.
✓ Correct answer: d) Only B
ExplanationWhen the government pulls its money out of a business, it can be either a capital receipt or a revenue receipt, based on the details of the deal.If the government sells its equity shares in a company to the public or to another entity, the proceeds from the sale are considered a capital receipt.In other words, the government is getting cash for selling a capital asset, which in this case is its share of the company.When the government sells its goods or services to a business, like land or buildings, the money it gets from the sale is called revenue reciept.In this case, the government is getting paid cash for selling things or services, which is a normal business deal and not the sale of a capital asset.To sum up, whether disinvestment receipts are capital or income rests on the type of deal and the object being sold.Hence, the correct answer is "Only B."
Q230
The GDP estimation method measuring the aggregate value of goods and services produced by the firms is called ____ .
✓ Correct answer: d) product method
ExplanationAccording to the product approach, gross domestic product (GDP) or national income is calculated as an aggregate value of all of the final products and services generated by all of the companies.Using this approach, national income is calculated by determining the monetary worth of all of the final commodities and services that an economy produces over the course of a given year.In this context, the term "final goods" refers to those products that are directly consumed rather than being utilized in further manufacturing processes.Hence, the correct answer is "product method."
Q231
As per Economic Survey 2020-2021, during the first half of the financial year 2020-21, the services sector contracted by almost _____.
✓ Correct answer: b) 16%
ExplanationThe services industry had an almost 16% decline in the first half of the fiscal year 2020–21. The largest portion of India's GDP comes from the service sector.The Department of Economic Affairs of the Finance Ministry's Economics Division preparess the Economic Survey, which is then made public after receiving the finance minister's approval.Hence the correct answer is "16%".
Q232
Which of the following is added in the national income to obtain personal income of the households?
✓ Correct answer: b) Transfer payments from government and firms
ExplanationThe total amount of money received by all people or households within a nation is referred to as personal income.Salary, wages, and bonuses from jobs or self-employment, dividends and distributions from investments, rental income from real estate holdings, and profit-sharing from businesses are all examples of compensation that fall under the category of personal income.Consumer spending is significantly impacted by personal income.Since a large portion of the economy is driven by consumer spending, personal income is tracked quarterly or annually by national statistical organizations, economists, and analysts.Personal Income (PI) = NI – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.Hence, the correct answer is "Transfer payments from government and firms".
Q233
What is the currency of Brazil?
✓ Correct answer: b) Real
ExplanationThe currency of Brazil is the Brazilian Real, abbreviated as BRL.It serves as the official currency of Brazil and is recognized for its unique banknote designs featuring various native species of animals.The Peso is the currency used in several countries, including Mexico, Argentina, and Chile.The Sol is the currency of Peru.The Rupiah is the currency of Indonesia.Hence, the correct answer is "Real".
Q234
Which of the following is a feature of public goods?
✓ Correct answer: c) Consumption of one person does not affect the consumption of another person.
ExplanationNon-rivalrous commodities are public products that are used by people but whose supply is not impacted by the consumption of individuals.These goods fall under the category of "public goods." To put it another way, when one person or a group of people uses a certain product, the quantity of that good that is still available for use by other people does not change.Hence, the correct answer is "C) Consumption of one person does not affect the consumption of another person ."
Q235
NIP related to India's budget, which was announced in December 2019 by the Union Finance Minister of India stands for:
✓ Correct answer: b) National Infrastructure Pipeline
ExplanationThe National Infrastructure Pipeline is known as NIP.It is a project that will build top-notch infrastructure throughout the nation to raise everyone's standard of living overall.For the Indian economy, the program will enhance project planning and draw both domestic and international direct investments.It is estimated that India would need to spend 5 trillion economy by 2025, and to continue on an escalated trajectory until 2030. The endeavor of the NIP would be to make this happen in an efficient manner.Hence, the correct answer is "National Infrastructure Pipeline".
Q236
According to the Economic Survey 2020-21, imports are expected to decline by in the second half of FY21.
✓ Correct answer: b) 11.3%
ExplanationThe Economic Survey projects that during the second half of 2020–21, imports will increase by 11.3 percent while exports will decrease by 5.8 percent.The Ministry of Finance, Government of India, publishes the Economic Survey of India every year.Every year, right before the Union Budget, the Ministry of Finance's Department of Economic Affairs presents the Survey to the Parliament.Under the direction of India's Chief Economic Advisor, it is prepared.Hence, the correct answer is "11.3%".
Q237
Decadal growth rate of population between 2001-2011 is approx______.
✓ Correct answer: c) 17.70 percent
ExplanationAccording to the results of the Census that was conducted in 2011, the total number of people living in India has increased by more than 181 million since the year 2001. The growth rate from 2001-2011 was 17.64 percent, with males experiencing 17.19 percent and females experiencing 18.12 percent.Hence, the correct answer is “17.70 percent”.
Q238
Which of the following is NOT a feature of National Income?
✓ Correct answer: d) It is included only in intermediate goods.
ExplanationNational income is one example of a macroeconomic term.National income is calculated by factoring in the monetary worth of products and services.The national income is measured over a long period of time.In calculating national income, the net total values of goods and services are taken into account.To avoid duplicate counting, national income only accounts for the value of finished goods.The value of intermediary goods is not included in the calculation of national income.Foreign net factor income is included in the national income (NFIA).Hence, the correct answer is "It is included only in intermediate goods".
Q239
__________ are known as narrow money.
✓ Correct answer: a) M1 and M2
ExplanationThe term "Narrow money" refers to a category of the money supply that encompasses all forms of physical cash, such as coins and currency, as well as demand deposits and other liquid assets maintained by the central bank.Because M1 and M2 are so easily exchangeable for cash, we refer to them as narrow money.M1 equals Cash (C), Demand Deposits (DD), and Other Deposits Held at the RBI, whereas M2 equals M1 plus Post Office Savings Accounts.Hence, the correct answer is "M1 and M2".
Q240
The system of MSP (Minimum Support Price) was first introduced for ______ in 1966-67 and later expanded to include other essential food crops.
✓ Correct answer: c) Wheat
ExplanationThe system of MSP (Minimum Support Price) was first introduced for wheat in 1966-67 and later expanded to include other essential food crops.To encourage farmers of Punjab to adopt dwarf 'miracle' wheat cultivars, the concept of Minimum Support Price (MSP) was initially established in 1966–1967. These were crossed in India, largely at the Indian Agricultural Research Institute in New Delhi, from the American- controlled International Centre for Maize and Wheat Research in Mexico.The MSP at the time was set at Rs 54 per quintal of wheat (a quintal is equal to 100 kg).Hence, the correct answer is "Wheat".
Q241
The value of GDP at the current prevailing prices is called.
✓ Correct answer: a) nominal GDP
ExplanationThe value of GDP at the current prevailing prices is called "Nominal GDP." Nominal GDP measures the economic output of a country or region using the prices that are actually paid for goods and services in the current period without adjusting for inflation or changes in price levels.It provides a snapshot of economic activity without accounting for changes in the value of money over time.Hence, the correct answer is "nominal GDP".
Q242
Who has been appointed as NITI Aayog’s new Vice Chairman in May 2022?
✓ Correct answer: b) Suman Bery
ExplanationWith a history spanning 65 years, the Planning Commission was replaced by the NITI Aayog.The Planning Commission's value and utility have been questioned for a longer period of time.It seems that the other option is more suitable and considerate of the country's present financial requirements.NITI Aayog's chairman is Narendra Modi.Currently serving as Vice Chairperson of NITI Aayog, Shri Suman Bery holds the status and rank of Cabinet Minister.Mr. Bery, an experienced research administrator and policy economist, assumed the role of vice chairman of NITI Aayog on May 1, 2022. Hence, the correct answer is "Suman Bery".
Q243
What is the currency of India?
✓ Correct answer: d) Rupee
ExplanationThe currency of India is the Indian Rupee.It is represented by the symbol ₹ and is the official currency used throughout India.The Rupee is subdivided into 100 smaller units called paise.It plays a crucial role in India's economy and is one of the most widely used currencies in South Asia.Baht is the currency of Thailand, Yen is the currency of Japan, and Rupiah is the currency of Indonesia.Hence, the correct answer is “Rupee”.
Q244
For Rabi marketing season 2021-22, the Cabinet Committee on Economic Affairs (CCEA) announced highest increase in Minimum Support Price (MSP) for ______.
✓ Correct answer: a) lentil
ExplanationThe Cabinet Committee on Economic Affairs (CCEA) declared the highest increase in the Minimum Support Price (MSP) for lentils for the Rabi marketing season 2021–2022. In order to guarantee growers receive fair prices for their produce, the government has raised the MSP of Rabi crops for RMS 2022–2023. Lentil (Masur), Rapeseeds, and mustard (Rs. 400 per quintal each) have been recommended to have the highest absolute increase in MSP over the previous year, followed by gram (Rs. 130 per quintal).In accordance with the Union Budget 2018–19 announcement to fix MSPs at a level of at least 1.5 times the weighted average cost of production for all of India in order to provide fanners with a fairly reasonable wage, the MSP for Rabi Crops for RMS 2022–2023 has been increased.Hence, the correct answer is “Lentil".
Q245
_____ are those where a monthly instalment is deposited in the accounts every
✓ Correct answer: d) recurring deposits
ExplanationA recurring deposit is a sort of term deposit that enables individuals to set aside a certain amount of money on a regular basis.There is the option to create a recurring deposit account for a short-term, a medium-term, or a long-term length of time.Hence, the correct answer is "D): Recurring deposits."
Q246
Which of the following is NOT an indirect tax?
✓ Correct answer: d) Wealth tax
ExplanationWealth tax is NOT an indirect tax.It's a direct tax levied on the ownership of certain assets, primarily focusing on the wealth of an individual or entity.Indirect taxes, on the other hand, are taxes that are levied on goods and services at the point of consumption, and the burden of these taxes is often passed on to the consumers through the pricing of goods and services.Excise tax, Goods and Services tax, and customs duty are examples of Indirect tax.Hence, the correct answer is "Wealth tax".
Q247
Total deposits with Post Office savings organisations are included in which money supply aggregate?
✓ Correct answer: c) M4
ExplanationThe RBI’s classification of money supply includes M1, M2, M3, and M4, each covering progressively broader aggregates.M1 → Currency with public + Demand deposits with banks + Other deposits with RBI.M2 → M1 + Savings deposits with post office savings banks.M3 → M1 + Time deposits with banks (also called Broad Money, most commonly used).M4 → M3 + All deposits with post office savings organisations (except National Savings Certificates, etc.). Hence, the correct answer is "M4".
Q248
When expenditure exceeds revenue, the budget is said to be in __________.
✓ Correct answer: a) deficit
ExplanationA deficit budget exists when the government spends more money than it brings in, as is the case when more money is spent on public projects than the government receives in tax revenue.The term "revenue deficit" refers to the situation that arises when the overall revenue expenditures of the government are more than its total revenue revenues.Hence, the correct answer is "deficit"
Q249
Which of the following is NOT an advantage of E-Commerce?
✓ Correct answer: b) Late response to customer needs
ExplanationThe ability to quickly and effectively address the requirements of customers is a defining characteristic of online business.The focus of providing customer service in e-commerce is on resolving questions, requests, and issues raised by consumers before to, during, and after the completion of online transactions.Hence, the correct answer is "Late response to customer needs".
Q250
Goods and services tax (GST) became operational from ______.
✓ Correct answer: a) 1 July 2017
ExplanationThe Union Finance Minister and delegates from each State and Union Territory comprise the GST Council, which was formed to decide on matters pertaining to the GST, such as tax slabs, exemptions, and operational protocols.It was very important in forming India's GST system.The complicated web of Central and State taxes was replaced on July 1st, 2017, with the implementation of the GST laws.Goods and services are divided into several tax slabs under the Indian GST, including 5%, 12%, 18%, and 28%.Certain necessities are free from the Goods and Services Tax (GST), and gold and diamond-related jobs are subject to reduced taxes.Certain luxury items and demerit goods are subject to a compensation cess.Hence, the correct answer is "1 July 2017".
Q251
Which Five-Year Plan in India was mainly focussed on Garibi Hatao, creation of employment opportunities and agricultural production amongst other objectives?
✓ Correct answer: a) Fifth
ExplanationThe Fifth Five-Year Plan of India (1974- 1979) was mainly focussed on Garibi Hatao, the creation of employment opportunities and agricultural production amongst other objectives.It was the first plan to be launched by Indira Gandhi's government.The plan was formulated with the following objectives: Removal of poverty: The main objective of the plan was to remove poverty.The plan aimed to reduce the proportion of people living below the poverty line from 55% to 25% by the end of the plan period.Creation of employment opportunities: The plan also aimed to create employment opportunities for the growing population.The plan estimated that 10 million new jobs would be created during the plan period.Increase in agricultural production: The plan also aimed to increase agricultural production.The plan estimated that foodgrain production would increase by 50% during the plan period.Hence, the correct answer is "Fifth".
Q252
What do you call the rate of formation of new organic matter by consumers?
✓ Correct answer: d) Secondary productivity
ExplanationProductivity: Productivity refers to the rate at which new organic matter is produced in an ecosystem.Primary Productivity: Primary productivity is the rate of formation of organic matter by autotrophic organisms (like plants) through photosynthesis.Secondary Productivity: Secondary productivity is the rate of formation of organic matter by heterotrophic organisms (like consumers) through the consumption of primary producers.Tertiary Productivity: Tertiary productivity refers to the rate of formation of organic matter by consumers at higher trophic levels, including carnivores that consume other consumers.Hence the correct answer is Option D: Secondary productivity.
Q253
Which of the following is one of the Open Market Operations by the Reserve Bank of India?
✓ Correct answer: a) Buying and selling of bonds issued by the Government in the open market
ExplanationThe Reserve Bank of India (RBI) conducts Open Market Operations (OMO) to buy and sell government securities (g-secs), financial assets, or bonds issued by the government to banks in order to modify the money supply.In order to control systemic liquidity and introduce new liquidity, the RBI takes this action.Open Market Operations come in two flavors: Outright Purchase and Repurchase Agreement.In order to control the amount of money in circulation, the RBI engages in permanent transactions known as outright purchases, or PEMOs, in which it buys or sells securities on the open market.A Repurchase Agreement is a brief contract in which the RBI agrees to buy back government securities after a predetermined date.Hence, the correct answer is "Buying and selling of bonds issued by the Government in the open market".
Q254
Which bank is referred to as ‘The lender of last resort’?
✓ Correct answer: a) Central Bank
ExplanationThe term "lender of last resort" refers to the central bank.A lender of last resort (LoR) is a type of financial institution that lends money to banks and other eligible entities that are in financial distress, are seen to be extremely risky, or are in danger of failing.Typically, a lender of last resort is the central bank of the nation.In order to safeguard depositors and stop clients in a panic from taking money out of banks that are temporarily low on liquidity, lenders of last resort are in place.Since borrowing from lenders of last resort indicates that the bank is experiencing financial difficulties, commercial banks typically avoid doing so.Hence, the correct answer is "Central Bank".
Q255
Unemployment arising due to mismatch between Job availability in the market and skills of available worker is called?
✓ Correct answer: b) Structural
ExplanationStructural unemployment is a kind of unemployment that occurs when there is a mismatch between the skills required for available jobs and the abilities possessed by available workers in the market.It happens when employees do not possess the necessary job skills or because they reside too far away from areas where jobs are accessible and are unable to relocate closer to such locations.Alterations to the economy are the root cause of this kind of joblessness.Hence, Structural is the correct answer.
Q256
Which of the following is an Indirect Tax in India?
✓ Correct answer: a) Goods and Services Tax
ExplanationA tax on goods and services is known as the goods and services tax or GST.It is an indirect tax that was put in place to take the place of several other indirect taxes, including excise duty, VAT, purchase tax, and service tax.In India, a tax known as GST is imposed on the supply of specific goods and services.The sale of goods and services is subject to the comprehensive, multi-stage Goods and Services Tax (GST) system.This taxation scheme's main objective is to lessen the indirect taxes' cascading effect, and it is applicable throughout India.Hence, the correct answer is "Goods and Services Tax".
Q257
Which of the following was the first development bank in India?
✓ Correct answer: c) Industrial Finance Corporation of India
ExplanationIFCI Ltd (IFCI) was set up as a Statutory Corporation (“The Industrial Finance Corporation of India”) in 1948. These specialised financial entities are called development banks.They give the industrial and agricultural sectors medium- and long-term financing.NABARD, IDBI, EXIM Bank, IFCI, and NHB are development banks in India.Hence, "Industrial Finance Corporation of India" is the correct answer.
Q258
Plan revenue expenditure relates to _______. I. Five-year plans II. Salaries and pensions
✓ Correct answer: a) Only I
ExplanationCapital spending is also categorised as plan and nonplan in the budget papers.The plan revenue spending pertains to national Plans (the Five-Year Plans) and central support for State and Union Territory plans.A non-plan capital expenditure encompasses diverse general, social, and economic services given by the government.To achieve its rapid economic development, India has been following the Five Year Plans (a planning approach) since April 1, 1951. A government's expenditure is categorized as either plan or non-plan according to these plans, depending on whether the expenditure results from proposals in the plans or not.Plan Expenditure: Includes any costs expended for programs outlined in the center's current (Five Year) Plan as well as any advances made by the center to state their plans.Capital and revenue expenditures are two more subcategories of plan expenses.Non-Plan Expenditure: This is the amount estimated in the budget for annual expenses related to the government's regular operations.All government spending that is not included in a plan is referred to as non- plan spending.Whether there is planning or not, such spending is necessary for every nation.For example, no government can avoid fulfilling its fundamental duty of defending the nation against foreign invasions and safeguarding the lives and property of its citizens.Hence, the correct answer is ''Only I''.
Q259
Which of the following is NOT one of the methods of national income estimation?
✓ Correct answer: a) Banking method
ExplanationThe national income of the country may be estimated by one of the following three methods: Value Added or Product Method: Estimated by summing the value that was contributed by each individual company in the market.Income Method: Estimation of income using the addition of all of the elements of production (rent, wages, interest, and profit) as well as the mixed income of self-employed individuals.Method of Expenditures: This method computes final GDP expenditure at market prices in order to estimate total national revenue.Hence, the correct answer is "Banking method".
Q260
As per the Economic Survey 2020–21, net FPI (Foreign Portfolio Investment) recorded an all- time monthly high of US$9.8 billion in ______.
✓ Correct answer: d) November 2020
ExplanationForeign Direct Investment (FDI) continued to pour into India in FY21, as the country remained a popular destination for foreign investment due to global asset shifts towards equities and expectations of a quicker recovery in emerging economies.Net Foreign Portfolio Investments (FPI) inflows hit an all-time monthly high of US$9.8 billion in November 2020 as risk appetite started to rebound.Moreover, India was the only significant economy to draw equity foreign institutional investments (FII) in 2020. Liquidity in the economy is strong, and in recent months the stock market has surged to previously unthinkable heights.Hence, the correct answer is "November 2020".
Q261
In India, which of the following statements is true about the National Investment Fund? Statements: I. It was created in 2005. II. 75% of its annual income was to be used for schemes promoting health, education and employment. III. It was dissolved in 2018.
✓ Correct answer: d) Only statements I and II
ExplanationThe government established the National Investment Fund (NIF) in November 2005. As per this Scheme, 75% of the annual income of the NIF was to be used for financing selected social sector schemes that promote education, health, and employment.The residual 25% of the annual income of NIF was to be used to meet the capital investment requirements of profitable and revivable PSUs.Hence, the correct answer is "Only statements I and II".
Q262
In India, which of the following is NOT an objective of the National Manufacturing Policy?
✓ Correct answer: b) To double the exports of manufacturing goods by 2022.
ExplanationThe Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry announced the National Manufacturing Policy (NMP) on November 4, 2011. One of the main objectives of the NMP is to raise the manufacturing sector's contribution to GDP to at least 25% by 2022. The policy aims to generate 100 million additional jobs by 2022, thereby increasing the rate of job creation.Enhancing global competitiveness and domestic value addition is another key goal of the NMP.The policy also focuses on fostering technological depth and ensuring environmental sustainability in growth.It outlines specific interventions in areas such as industrial infrastructure development, improving the business environment by simplifying regulations, promoting green technologies for sustainable development, and developing skills among the younger population.Hence, the correct answer is "To double the exports of manufacturing goods by 2022".
Q263
Goods and Service Tax is an example of _______.
✓ Correct answer: d) indirect tax
ExplanationAn indirect tax is a tax that is paid by one person but is ultimately borne by another person.The Goods and Service Tax (GST) is an indirect tax that is levied on the supply of goods and services in India.The GST is paid by the seller of the goods or services, but it is ultimately borne by the consumer, who pays the GST as part of the price of the goods or services.The GST is a multi-stage tax, which means that it is levied at every stage of the production and distribution chain, from the manufacturer to the consumer.Other facts related to the same question: The GST was introduced in India in 2017. It is a unified tax that has replaced multiple indirect taxes, such as the excise duty, service tax, and value-added tax (VAT).The GST is levied at a rate of 5%, 12%, 18%, and 28%.The GST is a major source of revenue for the Indian government.Hence, the correct answer is "indirect tax".
Q264
Why is PC Mahalanobis' name talked about in the context of Five-Year Plans?
✓ Correct answer: c) He conceptualised the framework for the Second Five-Year Plan.
ExplanationPC Mahalanobis is notably associated with the context of the Five-Year Plans because of his pivotal role in shaping the Second Five-Year Plan (1956-1961).His contributions to economic planning and policy formulation were instrumental during this period.As a distinguished Indian scientist, statistician, and economist, Mahalanobis emphasized the importance of data- driven decision-making in economic planning.He advocated for a planned approach to development, which included a focus on industrialization, scientific research, and technological advancement.His vision was to accelerate economic growth and reduce disparities among different regions in India.Under Mahalanobis' guidance, the Second Five-Year Plan aimed to build a strong industrial base, foster technology- driven growth, and lay the foundation for a self-reliant economy.His emphasis on the use of statistics and quantitative methods in planning helped shape the priorities and strategies of the plan, setting it apart from the First Five- Year Plan.Hence the correct answer is "He conceptualized the framework for the Second Five-Year Plan".
Q265
Hindustan Copper Limited (HCL) was incorporated in the year ....... .
✓ Correct answer: c) 1967
ExplanationHindustan Copper Limited (HCL) was incorporated in the year 1967 under the Companies Act 1956. Hindustan Copper Limited (HCL) holds a significant position as a public sector undertaking in India, dedicated to the exploration, mining, and production of copper.The company's establishment on 9 November 1967 marked a crucial step in India's pursuit of self-sufficiency in copper production.Under the administrative control of the Ministry of Mines, Government of India, HCL has been instrumental in developing copper resources in the country.Its operations involve various mining projects and refining facilities, contributing to the availability of copper for industries and infrastructure needs.Since its inception, HCL has played a pivotal role in the economic and industrial growth of India by ensuring a consistent supply of copper, a vital metal used in diverse sectors such as electrical, electronics, construction, and manufacturing.The company's efforts align with India's aspiration to harness its mineral resources efficiently, thereby supporting the nation's progress and self-reliance in critical sectors.Hence the correct answer is "1967".
Q266
In which Five-Year-Plan was the process of economic reforms was introduced in India?
✓ Correct answer: c) Eighth
ExplanationTenth Five-Year Plan (2002-2007): Focused on infrastructure, education, health, rural development, and poverty reduction.Achieved high GDP growth and improved human development indicators.Fifth Five-Year Plan (1974-1978): Emphasized self-reliance, agriculture, and poverty alleviation.Introduced the "Minimum Needs Programme" for basic services and infrastructure development.Eighth Five-Year Plan (1992-1997): Prioritized human development, employment generation, and poverty reduction.Emphasis on education, healthcare, and infrastructure, with the introduction of economic reforms (after the 1990-91 BOP Crisis).Sixth Five-Year Plan (1980-1985): Focused on agricultural and rural development, poverty alleviation, and employment generation.Introduced programs like IRDP and NREP for rural upliftment.Hence, the correct answer is "Eighth".
Q267
What is the currency of Russia?
✓ Correct answer: a) Ruble
ExplanationRussia: The official currency is the Russian Ruble, represented by the symbol "₽" and the ISO code RUB.It is subdivided into 100 kopeks (or kopeyka).Malaysia: The official currency is the Malaysian Ringgit, which uses the symbol "RM" and the code MYR.It is subdivided into 100 sen.Switzerland & Liechtenstein: Both countries use the Swiss Franc, which is represented by the code CHF.It is divided into 100 rappen (German), centimes (French), or centesimos (Italian).Hence, the correct answer is "Ruble".
Q268
The Second Five-Year Plan (1956-61) had a major goal of achieving which of the following targets?
✓ Correct answer: c) Rapid industrialisation with focus on heavy industries
ExplanationThe Second Five-Year Plan (1956-1961) was a crucial phase in India's post- independence economic development.Formulated in the context of the country's efforts to establish a strong and self-reliant economy, the plan aimed to accelerate industrialization and promote economic growth.The Second Five-Year Plan (1956-1961) in India was based on the Mahalanobis Model, also known as the "Two-Sector Model of Economic Growth." This model was developed by the Indian economist Prasanta Chandra Mahalanobis.The model divided the economy into two sectors: agriculture and industry.It proposed channeling resources from the agricultural sector to the industrial sector to promote industrial growth.Hence, the correct answer is "Rapid industrialisation with focus on heavy industries".
Q269
Which of the following is a possible criticism of privatisation?
✓ Correct answer: c) Limited access to essential services for marginalised populations
ExplanationPrivatization refers to the transfer of ownership and management of public sector enterprises to private entities.One major criticism of privatisation is that it may reduce the accessibility of essential services, such as healthcare, education, and transportation, for disadvantaged groups.Private companies are primarily profit- driven, and this could lead to higher costs for services, making them unaffordable for lower-income or marginalised populations.When essential services are privatised, the focus shifts from universal access to a focus on profitability, which may leave the most vulnerable communities without critical support.This criticism highlights the ethical concerns related to equitable access to basic services, which are typically seen as the responsibility of the state.Critics argue that the government must ensure that privatisation does not exacerbate inequalities.Hence, the correct answer is "Limited access to essential services for marginalized populations".
Q270
The national poverty line for 2011-12 was estimated at ________ per capita per month for urban areas of India.
✓ Correct answer: b) 1,000
ExplanationBased on the Tendulkar Committee methodology, the Planning Commission estimated the poverty line for 2011-12 at ₹816 per capita per month for rural areas and ₹1,000 per capita per month for urban areas.Using these benchmarks, the headcount ratio (percentage of people below the poverty line) was estimated at 25.7% for rural India, 13.7% for urban India, and 21.9% for the entire country.The national poverty line for 2011-12 was estimated at Rs. 816 per capita per month for rural areas and Rs. 1,000 per capita per month for urban areas.Hence, the correct answer is "1,000".
Q271
Under Statutory liquidity ratio, commercial banks are required to keep a fraction of in form of _____ liquid assets.
✓ Correct answer: b) total demand and term deposits
ExplanationUnder the Statutory liquidity ratio, commercial banks are required to keep a fraction of the form of total demand and term deposits of liquid assets.Typical examples of these liquid assets include cash, gold, and authorized government securities.By requiring banks to hold a certain amount of readily marketable and secure assets, the SLR acts as a prudential measure to maintain the stability of the financial system.Hence, the correct answer is "total demand and term deposits".
Q272
Non-Tax revenue is part of __________.
✓ Correct answer: b) Revenue Receipts
ExplanationRevenue Expenditure: It refers to government spending on day-to-day operational activities, such as salaries, subsidies, interest payments, and maintenance.It does not create assets or capital investments.Revenue Receipts: These are the government's regular income sources, including tax revenue and non-tax revenue.They fund current expenses and do not lead to an increase in assets.Capital Expenditure: This involves government spending on creating assets, infrastructure, and investments.It leads to an increase in the country's productive capacity and contributes to long-term growth.Capital Receipts: These are funds raised by the government through borrowings and the sale of assets.They result in a liability for the government and are used for capital expenditure or debt repayment.Hence, the correct answer is "Revenue Receipts".
Q273
Which of the following institutions was set up in 1982 in order to streamline credit facilities to farmers at a national level?
✓ Correct answer: b) NABARD
ExplanationOn July 12, 1982, the National Bank for Agriculture and Rural Development, or NABARD, was established.The main headquarters is situated in Mumbai.The highest authority in charge of planning and creating policies for agriculture and other economic activities in rural India is NABARD.For a range of initiatives falling under the umbrella of agriculture and rural development, it offers loan facilities, direct financing, and short- and long- term refinancing.Additionally, it oversees funds including the Micro Irrigation Fund and the Rural Infrastructure Development Fund.Hence, the correct answer is "NABARD".
Q274
Agriculture sector is a part of the:
✓ Correct answer: c) primary sector
ExplanationThe primary sector involves activities that directly extract or harvest resources from the Earth.Agriculture, along with other activities like mining, fishing, and forestry, falls under the primary sector.In the agriculture sector, crops are grown and livestock is raised for food, fiber, medicinal plants, and other products.The primary sector forms the essential basis for the production of goods in the secondary and tertiary sectors of the economy.Hence, the correct answer is "primary sector".
Q275
Which of the following is an institutional source of credit in India?
✓ Correct answer: d) Commercial banks
ExplanationIn India, both institutional and non- institutional sources of credit play crucial roles in meeting the diverse financial needs of individuals and businesses.Institutional sources include formal financial institutions like banks (commercial, cooperative, and regional rural), which offer structured and regulated credit products.Additionally, microfinance institutions contribute to providing small loans to vulnerable sections, promoting financial inclusion.Non-institutional sources encompass informal avenues like moneylenders, relatives, and friends.While non- institutional sources offer flexibility and quick access to credit, they often charge high-interest rates, leading to debt traps.Both sources are essential for the country's economic development.Institutional credit promotes stability and regulated financial transactions, while non-institutional credit serves as a safety net for those excluded from formal financial channels.Hence, the correct answer is "Commercial Banks".
Q276
In Five year plans, Plan a Holiday was from ______.
✓ Correct answer: a) 1966-1969
ExplanationIndia's first Prime Minister, Jawaharlal Nehru, gave the First Five-Year Plan to the Parliament on July 9, 1951. Between 1966 and 1969, there were three annual plans.This time frame was also known as the "Plan Holiday".Later, it was determined that the terrible drought, inflation, and the Indo-Pakistan war were Plan Holidays' primary causes.The administration announced a devaluation of the rupee in an effort to boost exports in the nation.Hence, the correct answer is "1966-1969".
Q277
The Pradhan Mantri Rojgar Yojana was started during the _________.
✓ Correct answer: b) Eighth Five-Year Plan
ExplanationThe Pradhan Mantri Rojgar Yojana (PMRY) was started during the Eighth Five-Year Plan (1992-1997).It was launched on October 2, 1993, by the Prime Minister P.V. Narasimha Rao.The objective of the PMRY is to provide self-employment opportunities to educated unemployed youth in rural and urban areas.The scheme provides financial assistance of up to Rs. 1 lakh to eligible beneficiaries to set up their micro-enterprises.The Ninth Five-Year Plan (1997-2002) saw the launch of the Swarnajayanti Gram Swarojgar Yojana (SGSY).The SGSY is a larger and more comprehensive scheme that aims to provide self-employment opportunities to rural poor households.The Tenth Five Year Plan (2002-2007) saw the launch of the National Rural Employment Guarantee Act (NREGA), which is a major social security program that guarantees 100 days of employment to every rural household.Hence, the correct answer is “Eighth Five- Year Plan”.
Q278
________ emerged as the poorest state as per the first-ever Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog and launched in November 2021.
✓ Correct answer: a) Bihar
ExplanationBihar emerged as the poorest state as per the first-ever Multi-dimensional Poverty Index (MPI) prepared by Niti Aayog and launched in November 2021. MPI was developed to capture various dimensions of poverty, including health, education, and standard of living.Multi-dimensional Poverty Index (MPI) is prepared by Niti Aayog .The National Institution for Transforming India Aayog, is a policy think tank and a government institution in India.It was established on January 1, 2015, to replace the erstwhile Planning Commission.Hence the correct answer is "Bihar".
Q279
If the interest rate goes up, the demand for money will______.
✓ Correct answer: d) fall
ExplanationWhen the interest rate goes up, the demand for money is likely to decrease.The demand for money refers to the desire of individuals and businesses to hold cash for various purposes, such as transactions and as a store of value.When the interest rate goes up, the cost of borrowing money also increases, making it more expensive to access funds.As the interest rate rises, borrowing becomes less attractive for both individuals and businesses.Money supply and interest rates have an inverse relationship.A larger money supply lowers market interest rates, making it less expensive for consumers to borrow.Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan.Hence, the correct answer is "fall".
Q280
The Reserve Bank of India introduced a comprehensive regulatory framework for NBFC-MFI on __________.
✓ Correct answer: b) 2 December 2011
ExplanationThe Reserve Bank of India (RBI) established the regulatory framework for Non-Banking Financial Companies-Micro Finance Institutions (NBFC-MFIs) on 2 December 2011. This framework aimed to enhance the regulatory oversight of NBFC-MFIs and ensure the protection of borrowers.The regulations included eligibility criteria for microfinance loans, emphasizing the provision of small, collateral-free loans to low-income borrowers.The guidelines also focused on promoting responsible lending practices within the microfinance sector.The implementation of this framework was crucial in improving the transparency and accountability of NBFC- MFIs in India.Hence, the correct answer is "2 December 2011."
Q281
Identify the INCORRECT statement in the context of Microfinance Institutions in India.
✓ Correct answer: d) A microfinance loan should be linked with a lien on the deposit account of the borrower.
ExplanationMicrofinance loans are collateral-free loans aimed at aiding low-income individuals without access to traditional bank loans.Contrary to statement D, microfinance loans are not commonly linked to a lien on borrowers' deposit accounts.Such liens, allowing lenders to claim money in case of default, could hinder borrowers' access to essential funds.Microfinance lenders minimize risk through due diligence, borrower education, self-help groups, and structured repayments.These approaches ensure better risk management and enable inclusive financial services for marginalized communities.Hence, the correct answer is "A microfinance loan should be linked with a lien on the deposit account of the borrower.".
Q282
'BFSI' stands for Banking, Financial Services and ____ in India. It is a broad term for industries that offer financial products and services,
✓ Correct answer: c) Insurance
Explanation"BFSI" stands for "Banking, Financial Services, and Insurance." It is an acronym used to collectively refer to the industry sector that encompasses various financial institutions, organizations, and services related to banking, finance, investment, and insurance.This sector plays a crucial role in the economy by facilitating the flow of funds, managing risks, and providing financial products and services to individuals, businesses, and governments.The BFSI sector includes banks, credit unions, investment firms, insurance companies, brokerage firms, asset management companies, and other entities involved in financial activities.Hence, the correct answer is "Insurance".
Q283
The national poverty line for 2011-12 was estimated at _____ per capita per month for rural areas of India.
✓ Correct answer: c) ₹816
ExplanationThe Indian national poverty line for 2011- 12 was set at ₹816 per capita per month for rural areas.The Tendulkar Committee, responsible for this assessment, considered factors like food, clothing, shelter, education, and healthcare costs.Roughly 260 million individuals were deemed below the poverty line.Hence, the correct answer is "₹816".
Q284
Which of the following is NOT included in capital receipts?
✓ Correct answer: c) Taxes
ExplanationCapital receipts encompass cash from the sale of fixed assets, company shares, or debt instruments like loans and bonds.They involve either generating liabilities (e.g., borrowing) or reducing assets (e.g., disinvestment).Capital receipts occur when the government raises funds by incurring liabilities or selling assets.Revenue receipts, on the other hand, do not increase obligations or deplete assets; they include tax revenues, interest, dividends on government investments, and service-related government receipts.Taxes fall under revenue receipts, not capital receipts, as they don't involve generating liabilities or reducing assets.Hence, the correct answer is "Taxes."
Q285
An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as:
✓ Correct answer: d) Budget
ExplanationAn annual statement of the estimated receipts and expenditures of the government over the fiscal year is known as a "Budget." It serves as a comprehensive financial plan outlining the government's intentions and allocations for various sectors, programs, and activities.Article 112 deals with the presentation of the annual financial statement, which is the budget.The Finance Minister of India is responsible for preparing and presenting the budget in the Parliament.The Finance Minister delivers the budget speech, which provides an overview of the government's fiscal plans, allocation of funds, policy measures, and objectives.In the past, India used to have a separate Railway Budget.However, from the fiscal year 2017-18, the Railway Budget was merged with the Union Budget.Now, a single budget is presented, which includes both the general budget and the railway budget.Hence, the correct answer is "Budget".
Q286
Who among the following was the first person to discuss the poverty line in pre-independent India?
✓ Correct answer: a) Dadabhai Naoroji
ExplanationDadabhai Naoroji was the first person to discuss the concept of the poverty line in pre-independent India.He was a prominent Indian nationalist, scholar, and social reformer who is often referred to as the "Grand Old Man of India".Dadabhai Naoroji's book titled "Poverty and Un-British Rule in India", published in 1901, presented a detailed analysis of the economic exploitation of India by British colonial rule and the resulting poverty among the Indian population.He introduced the concept of a "poverty line" to quantify and describe the level of poverty prevailing in India.Hence, the correct answer is “Dadabhai Naoroji”.
Q287
Which of the followings is NOT an example of factor payment?
✓ Correct answer: d) Pension
ExplanationFactor payments refer to the payments made to the factors of production, which include land, labor, capital, and entrepreneurship.The factor payments associated with these factors are: A.Interest is a factor payment for capital.B. Wages are a factor in payment for labor.C. Rent is a factor payment for land.D. Pension is typically a retirement benefit provided to individuals and is not directly related to the factors of production.Hence, the correct answer is "Pension".
Q288
Fisher's quantity theory is explained by his famous equation given as_______.
✓ Correct answer: b) MV = PT
ExplanationFisher's quantity theory is explained by his famous equation given as MV = PT.Where: M represents the total money supply in the economy.V represents the velocity of money, which is the average number of times a unit of currency is spent in a given period.P represents the general price level of goods and services.T represents the total quantity of goods and services exchanged in the economy.The equation essentially states that the total money supply (M) multiplied by the velocity of money (V) is equal to the total value of transactions (PT) in the economy.Fisher's theory suggests that changes in the quantity of money will lead to proportional changes in the price level, assuming that the velocity of money and the quantity of goods exchanged remain relatively constant.Hence, the correct answer is "MV = PT".
Q289
Micro credit or micro finance is a novel approach to bank with poor. In this approach bank credit is extended to the poor through ......... .
✓ Correct answer: c) self-help groups
ExplanationMicrocredit or microfinance is a novel approach to bank with the poor.In this approach, bank credit is extended to the poor through Self-Help Groups (SHGs).Microcredit, also known as microfinance, is indeed a novel approach aimed at providing financial services to the economically disadvantaged, particularly those who lack access to traditional banking systems.This approach is focused on empowering individuals, often in impoverished or marginalized communities, to access small loans, savings, and other financial services that can help them improve their livelihoods and engage in economic activities.Self-Help Groups (SHGs) are the cornerstone of the microcredit/microfinance strategy.SHGs are small groups of individuals, usually from the same community, who come together to pool their savings and access small loans collectively.These groups are often formed by community members themselves and function as a mutual support system.The concept of SHGs enables the poor to leverage their collective strength to gain access to credit, and it also promotes financial literacy, entrepreneurship, and social cohesion within the community.Through SHGs, individuals, especially women, can take control of their financial lives, start small businesses, and improve their living conditions Hence the correct answer is "self-help Groups."
Q290
'A Plan of Economic Development for India' is also known as _______ .
✓ Correct answer: d) Bombay Plan
ExplanationA Plan of Economic Development for India," commonly known as the Bombay Plan.It was a proposal formulated by a group of prominent industrialists in Bombay in the year 1944. The plan aimed to outline a comprehensive strategy for India's economic development after achieving independence.It advocated for a mixed economy, combining elements of both private and state-controlled sectors, and emphasized the importance of planned economic growth.Hence, the correct answer is "Bombay Plan".
Q291
What was the prime target of the first five-year plan of India?
✓ Correct answer: a) Development of agriculture
ExplanationThe first five-year plan was launched in 1951 which mainly focused on the development of the primary sector (agriculture).The first five-year plan was based on the Harrod-Domar model.Its main goal was to lay the foundation of industry, and agricultural development in the country and to provide affordable health care and education to the people at low cost.Jawaharlal Nehru was the chairman of this five-year plan, and Gulzarilal Nanda was the vice-chairman.The motto of the first Five-year plan was 'development of agriculture.Its target growth rate was 2.1% annual gross domestic product (GDP) growth and a growth rate of 3.6% was achieved.Hence, the correct answer is "Development of agriculture".
Q292
In 2021, which financial institution entered into a collaboration with Google India Pvt Ltd (GIPL) for piloting a social impact lending programme with financial assistance up to ₹1 crore at subsidised interest rates?
✓ Correct answer: d) SIDBI
ExplanationSmall Industries Development Bank of India (SIDBI) collaborated with Google India Pvt Ltd (GIPL).The collaboration aimed to pilot a social impact lending programme.The programme offered financial assistance of up to Rs 1 crore.The financial assistance came with subsidised interest rates.This initiative aimed to support small and medium-sized enterprises (SMEs) in India.SIDBI's collaboration with GIPL aimed to foster economic growth and entrepreneurship.Hence, the correct answer is "SIDBI".
Q293
In which industrial policy was the investment limit for tiny industry/unit increased to ₹2 lakh?
✓ Correct answer: c) 1980
ExplanationIn the industrial policy of 1980, a significant change was implemented by increasing the investment limit for tiny industries or units to ₹2 lahks.By enabling them to invest up to 2 lahks without having to deal with the regulatory restrictions that can impede their operations, this change aims to promote the expansion of smaller businesses and entrepreneurship.This modification was in line with the policy's overarching goals of encouraging industrial development, boosting economic growth, and creating job opportunities.The government intended to empower and support people interested in starting and growing small businesses by raising the investment barrier, which helped to diversify and strengthen the industrial landscape in the nation.Hence, the correct answer is "1980".
Q294
In which union budget was India's first sovereign wealth fund named 'National Investment and Infrastructure Fund (NIIF)' announced?
✓ Correct answer: a) 2015-16
ExplanationFounded February 2015 NIIF Headquarters Mumbai, India Government Ministry Ministry of Finance NIIF CEO Rajiv Dhar It was founded to provide infrastructure investment for maximizing the economic impact of commercially available projects (Greenfield Projects and Brownfield Projects) The idea to set up NIIF was addressed in the Union Budget 2015-2016 by the former Finance Minister of India, Arun Jaitley.Department of Economic Affairs approved the National Investment and Infrastructure Fund (NIIF) in August 2015, Hence, the correct answer is ''2015-16''
Q295
In India, according to the Insolvency and Bankruptcy Code, 2016, the process of insolvency resolution for companies should be completed in how many days?
✓ Correct answer: a) 180
ExplanationAccording to the Insolvency and Bankruptcy Code (IBC), 2016, the process of insolvency resolution for companies must be completed within 180 days from the date of initiation of the insolvency proceedings.This period can be extended by an additional 90 days (for a total of 270 days) if approved by the adjudicating authority, provided there is a valid reason for the delay.The primary objective of the IBC is to ensure timely resolution of insolvency cases and to minimize the time taken for the recovery process, thereby enhancing the ease of doing business in India.The code aims to promote a more efficient and effective process for dealing with insolvency and bankruptcy, providing a structured framework for the resolution of distressed assets.By setting a strict timeline, the IBC encourages quicker recovery for creditors and helps preserve the value of the corporate debtor.Hence, the correct answer is "180."
Q296
Before the rise of the modern industrial system, Indian exports consisted chiefly of manufactures like?
✓ Correct answer: d) cotton and silk fabrics
ExplanationBefore the rise of the modern industrial system, one of the key categories of Indian exports consisted of cotton and silk fabrics.These textiles were highly prized commodities that India was known for producing and trading extensively with various parts of the world.Some of the notable manufactured goods that India exported included textiles, ceramics, metalwork, jewelry, spices, and handicrafts.The textiles, in particular, were highly sought after.Indian cotton and silk textiles were renowned for their intricate designs, vibrant colors, and superior quality.They were in demand in various parts of the world, including Europe, the Middle East, and Southeast Asia.Hence, the correct answer is "cotton and silk fabrics".
Q297
Which of the following Acts was introduced to regulate Foreign Exchange in India in 1973?
✓ Correct answer: a) FERA
ExplanationThe Foreign Exchange Regulation Act (FERA) was introduced in India in 1973 to regulate foreign exchange transactions, currency transactions, and related matters.It aimed to control and manage foreign exchange reserves and ensure the stability of the Indian currency.FERA was later replaced by the Foreign Exchange Management Act (FEMA) in 1999. The Fiscal Responsibility and Budget Management Act (FRBM) focuses on fiscal discipline, ensuring prudent management of public finances, and reducing fiscal deficits.It is designed to enhance fiscal transparency, accountability, and sustainability in government expenditure and revenue management.The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFESI) is primarily concerned with the enforcement of security interest by banks and financial institutions to recover non-performing assets.Hence, the correct answer is “FERA”.
Q298
The country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is ____?
✓ Correct answer: c) greater than unity
ExplanationThe country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is greater than unity.When the combined elasticity of demand for a nation's exports and imports is greater than unity, this method is especially beneficial.How responsive the amount required is to price variations is determined by the elasticity of demand.Foreign purchasers are likely to buy more if a country's exports are more price competitive as a result of a depreciated currency or increased demand elasticity, which could raise export earnings.The higher demand elasticity for imports that results from the devaluation may simultaneously encourage domestic consumers to switch to locally produced items.This dual impact may lead to a positive change in the trade balance, which would enhance the overall balance of payments.Hence, the correct answer is "greater than unity".
Q299
In the self-help group, the loan and saving decisions are taken by the _______
✓ Correct answer: a) group members
ExplanationIn a self-help group (SHG), the loan and savings decisions are taken by the group members themselves.This is one of the key features of SHGs, which distinguishes them from other microfinance institutions.The group members are responsible for electing a leader and a treasurer, who are responsible for managing the group's finances.The group members also meet regularly to discuss their savings and loan needs, and to make decisions about how to allocate the group's resources.Hence, the correct answer is " group members".
Q300
Which of the following is NOT a function of money?
✓ Correct answer: b) Problem in storage
ExplanationMoney serves several essential functions in an economy, facilitating economic transactions and contributing to the smooth functioning of markets.However, the idea of a "problem in storage" is not one of the primary functions of money.Instead, money is designed to be a convenient and stable store of value.It is meant to hold its value over time and allow individuals to save and accumulate wealth.Money serves as a widely accepted medium through which goods and services can be bought and sold.It eliminates the need for barter and enables more efficient transactions.Money provides a common measure or unit of account that allows people to compare the value of different goods and services.It helps in making price comparisons and assessing relative worth.Money allows for transactions to be conducted over time.Contracts and agreements can specify payments to be made in the future with confidence that the value of money will remain relatively stable.Hence, the correct answer is “Problem in storage”.
Q301
In India, what type of unemployment is created due to a lack of employable skills among the educated youths in India?
✓ Correct answer: b) Educated unemployment
ExplanationEducated unemployment is a particular form of joblessness that occurs when individuals, despite possessing educational qualifications, are unable to secure suitable employment due to various factors, including a mismatch between their skills and the demands of the job market.Educated unemployment represents a significant waste of human potential and talent, as individuals are not contributing to the economy and society as they could.Structural unemployment occurs when there is a mismatch between the skills possessed by the labour force and the skills required by the job market.Cyclical unemployment is related to the economic cycle.It occurs when there is a downturn in the economy, such as a recession, leading to a decrease in overall demand for goods and services.Technological unemployment arises when advances in technology lead to the displacement of human workers.Hence, the correct answer is “Educated unemployment”.
Q302
Who is the regulator of Micro Finance Institutions in India?
✓ Correct answer: b) RBI
ExplanationThe Reserve Bank of India (RBI) is the regulatory authority for Micro Finance Institutions (MFIs) in India.RBI regulates and supervises various financial institutions in the country, including MFIs, to ensure their stability, proper functioning, and adherence to regulatory guidelines.SEBI is the regulatory body for the securities market in India.It oversees and regulates activities related to securities, stocks, and financial instruments.NABARD is an apex development bank in India that focuses on providing financial and developmental support to the rural sector.SBI is a public sector bank and the largest bank in India.It provides a wide range of banking services to individuals and businesses.Hence, the correct answer is “RBI”.
Q303
In December 2022, India's Pension Fund Regulatory and Development Authority (PFRDA) has recommended the federal government to introduce a pension scheme like UK pension scheme for the country's ....... .
✓ Correct answer: c) gig workers
ExplanationIn December 2022, India's Pension Fund Regulatory and Development Authority (PFRDA) recommended the federal government introduce a pension scheme like the UK pension scheme for the country's Gig workers.Gig workers represent a dynamic segment of the workforce, often involved in temporary or freelance jobs, facilitated through digital platforms or other non- traditional employment structures.This workforce typically lacks the stable employment benefits, such as pensions, that formal employees enjoy.By suggesting the creation of a pension scheme for gig workers, similar to what exists in the UK, the PFRDA aims to address the financial security concerns and retirement needs of this particular group.The proposed scheme would work towards extending social protection measures to a broader spectrum of the workforce, promoting financial inclusion, and ensuring that gig economy participants have access to essential retirement benefits.Hence the correct answer is "gig workers".
Q304
Which of the following is considered a capital expense?
✓ Correct answer: d) Construction of school buildings
ExplanationA capital expenditure (CapEx) is money a company spends to buy, maintain, or improve fixed assets, such as buildings, equipment, or land. some examples of capital expenditures include: Purchasing a new factory, Repairing a roof to extend its useful life, Buying a piece of equipment, Improving a building, Buying a vehicle, Buying land, Buying computers, Buying furniture, and Buying software.Hence, the correct answer is "Construction of school buildings".
Q305
Harrod-Domar growth model is known for highlighting the role of savings and investments. Which Five-Year Plan in India was based on this model?
✓ Correct answer: a) First
ExplanationThe First Five-Year Plan (1951-1956) was primarily based on the Harrod-Domar model, which focused on rapid industrialization and agricultural development.The Second Five-Year Plan (1956-1961) started shifting from the Harrod-Domar model and incorporated elements of the Mahalanobis model, giving importance to heavy industry and capital goods production.The Fourth Five-Year Plan (1969-1974) followed the Mahalanobis model, concentrating on the growth of heavy industry, mechanization of agriculture, and self-reliance.The Third Five-Year Plan (1961-1966) continued the emphasis on heavy industry and infrastructure development, aligning with the Mahalanobis model.Hence, the correct answer is "First".
Q306
Which of the following is an indirect tax?
✓ Correct answer: b) Goods and services tax
ExplanationAn indirect tax is a tax that is not directly paid by an individual to the government.Instead, it is collected by intermediaries (such as retailers or service providers) who then remit it to the government.The burden of the tax is ultimately passed on to the consumer, who pays the tax as part of the price of goods or services.Goods and Services Tax (GST) is a comprehensive indirect tax implemented in India on the supply of goods and services.It was introduced to simplify the tax structure and eliminate the cascading effect of multiple indirect taxes.Under GST, various state and central taxes are consolidated into a single tax, making it easier for businesses and consumers.Hence, the correct answer is "Goods and services tax".
Q307
Assume that exchange rate between the US Dollar and Indian Rupee is 1 = ₹60, then in this case the Indian Rupee has ____ in comparison to the US dollar.
✓ Correct answer: a) depreciated
ExplanationWhen the exchange rate increases from ₹55 to ₹60 per US Dollar, it means that the Indian Rupee now buys fewer US Dollars, indicating a depreciation of the Indian Rupee.Depreciation occurs when the value of a currency falls relative to another currency.Appreciation would have occurred if the exchange rate had decreased, meaning the Indian Rupee would have gained value."Demonetised" refers to the withdrawal of currency notes from circulation, which is not related to exchange rate changes."Overvalued" refers to a currency being priced higher than its market equilibrium value, but this is not the case here.Hence, the correct answer is "depreciated".
Q308
Net Investment plus Depreciation gives an estimate of which of the following?
✓ Correct answer: c) Gross investment
ExplanationNet Investment plus Depreciation is an estimate of Gross Investment.Gross Investment is a critical concept in economics and national accounting, specifically in the calculation of the Gross Domestic Product (GDP).It represents the total spending on new capital goods (such as machinery, equipment, and structures) in an economy over a certain period.Gross Investment = Net Investment + Depreciation Hence the correct answer is "Gross Investment".
Q309
Which of the following options represents the total income earned by individuals from all the sources before deduction of personal income taxes?
✓ Correct answer: b) Personal income
ExplanationPersonal income refers to the total income received by individuals from all sources before any deductions such as personal income taxes.This includes wages, salaries, investments, pensions, and any other sources of income individuals may earn.Disposable income, on the other hand, is the income left after personal income taxes have been deducted, representing the amount available for spending or saving.Gross income typically refers to a business's total earnings, while national income is the total income earned by a country's residents, including businesses and the government.Personal income is an important economic indicator because it shows the pre-tax earnings of individuals.Hence, the correct answer is "Personal income".
Q310
_________ was the chairman of the planning commission when the first five year plan was formulated in India.
✓ Correct answer: d) Jawaharlal Nehru
ExplanationJawaharlal Nehru was the first chairman of the Planning Commission when the first five year plan was formulated in India.The Planning Commission was established on March 15, 1950, and Nehru served as its chairman until his death in 1964. The first five year plan was launched in 1951 and covered the period from 1951 to 1956. The plan focused on the development of agriculture, irrigation, and industry.Dr. Rajendra Prasad was the first President of India.Subhash Chandra Bose was a freedom fighter and the founder of the Indian National Army.Lal Bahadur Shastri was the Prime Minister of India from 1964 to 1966. Hence, the correct answer is "Jawaharlal Nehru".
Q311
Which of the following is NOT included in domestic income?
✓ Correct answer: b) Income earned by the non-residents outside the country
ExplanationDomestic income refers to the total earnings or income generated within a country's borders from all economic activities, including production, services, and investments.It is a measure of the total economic output produced by the residents and entities of a country during a specific period.Domestic income includes various components such as wages and salaries earned by workers, profits earned by businesses, rents from property, interest from financial assets, and net income from abroad (if the country is a net creditor or debtor in international trade).Hence, the correct answer is "Income earned by the non-residents outside the country".
Q312
Small scale units are differentiated from large scale units on the basis of:
✓ Correct answer: d) the amount of investment
ExplanationSmall-scale units are differentiated from large-scale units on the basis of the amount of investment Small-scale entities are distinguished by their small operational and capital budgets.These businesses frequently serve local or specialty markets and have constrained resources and a smaller workforce.They are essential for encouraging entrepreneurship, creating jobs, and supporting local economic growth.Large-scale entities, on the other hand, require significant financial resources for establishment, infrastructure, and expansion.They employ greater resources, more sophisticated technology, and a wider range of clients.Large-scale businesses are often better able to increase production efficiency, realize economies of scale, and serve both domestic and international markets.Hence, the correct answer is "the amount of investment".
Q313
Which of the following is also known as the 'lender of the last resort'?
✓ Correct answer: c) RBI
ExplanationRBI is known as the 'lender of the last resort'.RBI (Reserve Bank of India) is the central banking institution of India, responsible for regulating the country's monetary and credit system and acting as the 'lender of the last resort.' SEBI (Securities and Exchange Board of India) is the regulatory authority for the securities market in India, ensuring transparency and investor protection.RRBs (Regional Rural Banks) are financial institutions that provide banking services in rural areas, established to promote rural development and financial inclusion.SBI (State Bank of India) is a government- owned multinational banking and financial services corporation, serving as the largest public sector bank in India, offering a range of banking services.Hence, the correct answer is "RBI".
Q314
Consider the following statements about unemployment in India: a) Seasonal unemployment is mainly found in urban areas. b) Educated unemployed people are mainly found in rural areas of India. c) Higher cropping intensity is desirable for reducing unemployment in the rural economy. Which of the given statements is/are correct?
✓ Correct answer: a) Only c
ExplanationSeasonal unemployment is more commonly associated with rural areas, particularly in agricultural economies, where employment opportunities vary with different cropping seasons.Educated unemployment, where individuals with higher education qualifications are unable to find suitable jobs, is often observed in both rural and urban areas of India.However, it can be more pronounced in urban areas due to the higher concentration of educated individuals and limited job opportunities that match their qualifications.Increasing cropping intensity, which refers to the number of crops grown on a piece of land in a year, can contribute to reducing unemployment in the rural economy.It provides more consistent and varied employment opportunities throughout the year, especially in regions with seasonal agricultural activities.Hence, the correct answer is “Only c”.
Q315
The intervention of the government, whether to expand demand or reduce it, constitutes the ___________.
✓ Correct answer: c) stabilisation function
ExplanationThe stabilisation function refers to the actions taken by the government to control economic fluctuations and maintain stability by adjusting demand in the economy.Speculative function involves predictions or assumptions about future market conditions, which is not related to government intervention to control demand.Redistribution function is concerned with reallocating resources and wealth, often to address inequality, but does not directly focus on expanding or reducing demand.Transaction function refers to the basic exchange processes in an economy, such as the buying and selling of goods and services, not the government's role in demand management.Hence, the correct answer is "stabilisation function".
Q316
Which of the following is an example of revenue receipt of the government?
✓ Correct answer: c) GST collected by the government
ExplanationRevenue receipts of the government are those receipts that do not create any liability or reduce assets.They are regular and recurring income for the government.GST (Goods and Services Tax) collected by the government is an example of such revenue receipt, as it represents the tax revenue collected from the sale of goods and services in the country.Hence The correct answer is GST collected by the government.
Q317
Which five-year plan emphasised on the development of industries and industrial base in India?
✓ Correct answer: a) Second
ExplanationHeavy industry-led development was emphasized in the Second Five Year Plan.Mahalanobis' development strategy, which prioritized fundamental heavy industries and was first adopted in the Second Plan, continued to dominate Indian planning up until the Fifth Plan, which was terminated by the Janata Government in March 1978, one year before it had completed its five-year term.Second Plan (1956–1961), commonly known as the Mahalanobis Plan in honor of its principal designer.Its goal was to hasten industrialization and encourage large imports, which emptied the budget and forced the government to borrow money from abroad.Far too soon, the focus switched from agriculture to industry.Hence, the correct answer is "Second".
Q318
Machines, tools and implements, and buildings are examples of which type of goods?
✓ Correct answer: d) Capital goods
ExplanationMachines, tools and implements, and buildings are examples of capital goods.Capital goods are assets that are used in the production process to create other goods and services.They are not directly consumed by individuals but instead contribute to the production of consumer goods or other capital goods.Consumer goods are products that are directly used and consumed by individuals for their satisfaction and well- being.These goods are typically the end result of the production process and are intended for immediate use, such as food, clothing, and electronics.Inferior goods are products for which demand decreases as consumer income increases.These goods are considered lower-quality or less desirable compared to alternatives.Intermediate goods are products that are used as inputs in the production of other goods.Hence, the correct answer is “Capital goods”.
Q319
In December 2021, the ________ approved a $500 million loan to the Government of India to help improve the quality of the country’s school education and mitigate the impact of the COVID-19 pandemic on the students’ learning.
✓ Correct answer: c) Asian Development Bank
ExplanationThe Asian Development Bank (ADB) approved a $500 million loan to the Government of India in December 2021 to help improve the quality of the country's school education and mitigate the impact of the COVID-19 pandemic on students' learning.The loan will support the Integrated Scheme for School Education (Samagra Shiksha) and the new Exemplar School Initiative of the Ministry of Education (MOE) to improve education quality by focusing on inclusive and equitable learning outcomes.The ADB is a multilateral development bank that provides loans and grants to developing countries in Asia and the Pacific.The bank's mission is to promote economic and social development in the region.Hence, the correct answer is “Asian Development Bank”.
Q320
Which of the following is NOT one of the scheduled public sector banks in India?
✓ Correct answer: d) Bandhan Bank
ExplanationPublic Sector Banks in India are those where the majority stake is held by the government, amounting to more than 50% ownership.Scheduled Public Sector Banks include Punjab National Bank, State Bank of India, Bank of Baroda, Union Bank of India, Canara Bank, Punjab & Sind Bank, Indian Bank, Bank of Maharashtra, Bank of India, Central Bank of India, Indian Overseas Bank, and UCO Bank.Bandhan Bank, however, is not a Public Sector Bank; it is a private-sector bank.Hence, the correct answer is "Bandhan Bank."
Q321
The term of trade refers to ________.
✓ Correct answer: d) the ratio between export prices and import prices
ExplanationThe term of trade refers to the ratio between export prices and import prices.It represents the relative value of a country's exports compared to its imports.It indicates how much of a country's exports are needed to purchase a given quantity of its imports.A favorable term of trade occurs when export prices are higher than import prices, allowing a country to acquire more imports with fewer exports.Hence, the correct answer is "the ratio between export prices and import prices"
Q322
Which of the following is NOT one of the characteristics of the new agricultural strategy?
✓ Correct answer: d) Use of organic manures
ExplanationThe New Agricultural Strategy, launched in the mid-1960s during the Green Revolution, focused on modern inputs and technology to boost farm productivity.Its key features included the use of High- Yielding Variety (HYV) / hybrid seeds, chemical fertilizers and pesticides, extensive irrigation facilities, and mechanization (tractors, pump sets, etc.). Organic manures were traditional methods of farming and not part of the new strategy, which emphasized chemical-based modern inputs.Therefore, the use of organic manures is NOT a characteristic of the New Agricultural Strategy.Hence, the correct answer is "Use of organic manures".
Q323
Which five-year plan aimed to increase the rapid growth in food grains production?
✓ Correct answer: a) Seventh Five-Year Plan
ExplanationThe Seventh Five-Year Plan, spanning from 1985 to 1990, was a crucial phase in India's planned economic development.This plan aimed to achieve rapid growth in various sectors, including agriculture.The Plan aimed at accelerating food grain production, increasing employment opportunities & raising productivity with a focus on ‘food, work & productivity’.Hence, the correct answer is "Seventh Five- Year Plan".
Q324
Which of the following can be referred to in the estimation of poverty?
✓ Correct answer: d) Monthly Per Capita Expenditure
ExplanationAverage marginal utility refers to the additional utility a consumer gets from consuming one more unit of a commodity.The minimum Support value signifies the minimum occurrence threshold an item set must meet to be frequent.Monthly per capita consumer expenditure (MPCE) is an important economic indicator and a key component in calculating poverty ratios.Hence, the correct answer is "Monthly Per Capita Expenditure".
Q325
India has been ranked _________ in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association.
✓ Correct answer: a) 10th
ExplanationThe Medical Tourism Index (MTI) is a biannual ranking of international healthcare destinations.It's based on American perceptions and was developed by the International Healthcare Research Center (IHRC).The ranking involves a survey of over 2,000 Americans to assess various aspects of medical tourism destinations.Countries are ranked on a scale of 1 to 100, with a higher score indicating a more attractive medical tourism destination.India has secured the 10th position in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations.This recognition highlights India's prominence in the global medical tourism sector.Hence, the correct answer is "10th."
Q326
The National Multidimensional Poverty Index 2021 (MPI) was released by which of the following?
✓ Correct answer: c) NITI Aayog
ExplanationThe National Multidimensional Poverty Index (MPI) 2021 was released by NITI Aayog.The MPI is an important tool used to measure and understand poverty from a multidimensional perspective, considering various factors beyond just income.The MPI goes beyond a simple income- based approach to poverty measurement and takes into account multiple dimensions of well-being, such as education, health, and living standards.India registered a decline in the number of multidimensionally poor from24. 85% in 2015-16 to 14.96% in 2019-2021. Hence the correct answer is "NITI Aayog".
Q327
What is the currency of the United Kingdom?
✓ Correct answer: a) Pound
ExplanationThe currency of the United Kingdom is the Pound Sterling, often referred to as the Pound (£).It is the official currency used in the UK, which includes England, Scotland, Wales, and Northern Ireland.The Pound is subdivided into 100 pence.The Krona is the currency of Sweden.Hence, the correct answer is “Pound”.
Q328
The concept of 'Vicious Circle of Poverty' is related to:
✓ Correct answer: b) Nurkse
ExplanationEconomist Prof. Ragnar Nurkse in his book, 'Problems of Capital Formation in Underdeveloped Countries' which was originally published in 1953, described the concept of 'Vicious Circle of Poverty'.Prof. Ragnar Nurkse argues that underdeveloped countries are poor because they are trapped in a vicious circle of poverty.A vicious circle of poverty through both the demand and supply side forces, discourages the investment capacity of the country.The supply side of the vicious circle indicates that in underdeveloped countries, productivity is so low that it is not enough for capital formation.There is a small capacity to save resulting from a low level of income which is a reflection of low productivity due to the lack of capital, and the lack of capital is a result of the small capacity to save.On the demand side of the vicious circle, due to low income there is low consumption demand and this induces a low level of investment.A low level of investment causes a low level of capital formation which again results in a low level of productivity.Ultimately all these cumulative forces result in a low level of income.Hence, the correct answer is "Nurkse".
Q329
What is the currency of China?
✓ Correct answer: a) Yuan
ExplanationThe currency of China is the Chinese Yuan, also known as Renminbi (RMB).It is the official currency used in the People's Republic of China and is abbreviated as CNY.The Yen is the currency of Japan.The Won is the currency of South Korea.The Baht is the currency of Thailand.Hence, the correct answer is “Yuan”.
Q330
Transport, Communication, and Commerce come under the:
✓ Correct answer: d) Tertiary activities
ExplanationTransport, Communication, and Commerce come under the tertiary activities.The tertiary (services) sector covers a wide range of activities from commerce to administration, transport, communication, financial and real estate activities, business and personal services, education, health and social work, etc. The primary sector comprises those activities, which are based on natural resources.Agricultural activities, livestock rearing, and dairy farming, fishing, mining, etc. are the activities under this sector.The secondary sector includes those activities in which the natural products (from the primary sector) are used as raw materials or inputs to manufacture various commodities.Hence, the correct answer is "Tertiary activities".
Q331
An underdeveloped economy is generally characterized by: I Low per capita income II. Low rate of capital formation III. Low dependency ratio IV. Work force largely in the tertiary sector Select the correct answer from the codes given below:
✓ Correct answer: a) I and II
ExplanationAn underdeveloped economy is generally characterized by low per capita income, high rate of population growth, excessive dependence on backward agriculture, low rate of capital formation, high level of unemployment and underemployment, low levels of living, high levels of poverty and illiteracy, technical and industrial backwardness, etc. Low dependency ratio and workforce largely in the tertiary sector are features of a developed economy.An underdeveloped economy is a stagnant economy with no sign of development over time.Hence, the correct answer is "I and II".
Q332
The basis of poverty estimates in India is :
✓ Correct answer: c) Household consumption expenditure
ExplanationPoverty line estimation in India has been based on the consumption expenditure and not on the income levels due to difficulties in assessing incomes of self- employed people, daily wage labourers, large fluctuation in income due to seasonal factors, additional side incomes as well as data collection difficulties in the largely rural and informal economy of India.Since households may be able to access credit markets or household savings and thereby smooth their consumption to some degree, consumption expenditures may be able to provide a better basis for determining a household's actual standard of living.Most of the Poverty Estimation Committees proposed that per capita consumption expenditure or household expenses were the right statistical choice for calculating poverty in India.The incidence of poverty is estimated by the Planning Commission (now NITI Aayog) based on large sample surveys on household consumer expenditure conducted by the NSSO (now NSO).Hence, the correct answer is "Household consumption expenditure".
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