MCQOPTIONS
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MCQOPTIONS
This section includes 94 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Which of the following are among the non-plan expenditures of the Government of India? 1. Defence expenditure 2. Subsidies 3. All expenditures linked with the previous plan periods 4. Interest payment Codes: |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 2 and 4 |
| D. | 1, 2, 3 and 4 |
| Answer» E. | |
| 52. |
Which of the following is the main aim of Indian Monetary Policy? 1. Control inflationary pressure 2. Boost economic development |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 53. |
Increase in net RBI credit for Central Government represents- 1. Budgetary Deficit 2. Revenue Deficit 3. Fiscal Deficit 4. Monetised Deficit Choose the right option |
| A. | 1 only |
| B. | 1 and 2 |
| C. | 3 only |
| D. | 4 only |
| Answer» E. | |
| 54. |
Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR? [IAS Prelims 2016] |
| A. | Ruble |
| B. | Rand |
| C. | Indian Rupee |
| D. | Renminbi |
| Answer» E. | |
| 55. |
Convertibility of rupee implies [IAS Prelims 2015] |
| A. | being able to convert rupee notes into gold |
| B. | allowing the value of rupee to be fixed by market forces |
| C. | freely permitting the conversion of rupee to other currencies and vice versa |
| D. | developing an international market for currencies in India |
| Answer» D. developing an international market for currencies in India | |
| 56. |
According to the provisions of the Fiscal Responsibility and Budget Management Act., 2003 and FRBM Rules, 2004, the Government is under obligation to present three statements before the parliament along with the Annual Budget. Which one of the following is not one of them? |
| A. | Macroeconomic Framework Statement |
| B. | Fiscal Policy Strategy Statement |
| C. | Medium-term Fiscal Policy Statement |
| D. | Statement showing Short term Fiscal Policy |
| Answer» E. | |
| 57. |
The banks are required to maintain a certain ratio between their cash in hand and total assets. This is called: |
| A. | SBR (Statutory Bank Ratio) |
| B. | SLR (Statutory Liquid Ratio) |
| C. | CBR (Central Liquid Reserve) |
| D. | CLR (Central Liquid Reserve) |
| Answer» C. CBR (Central Liquid Reserve) | |
| 58. |
The diagram shows a relationship between inflation and unemployment for an economy. Which of the following policies would move the economy from A to B? |
| A. | Reduce interest rate and increase income tax rates |
| B. | Reduce interest rates and decrease income tax rates |
| C. | Increase interest rates and decrease income tax rates |
| D. | Increase interest rates and increase Income tax rates |
| Answer» E. | |
| 59. |
Which one of the following statements regarding the levying, collecting, and distribution of Income Tax is correct? |
| A. | The Union levies, collects, and distributes the proceeds of income tax between itself and the states. |
| B. | The Union levies, collects, and keeps all the proceeds of income tax itself. |
| C. | The Union levies and collects the tax but all the proceeds are distributed among the states |
| D. | Only the surcharge levied on income tax is shared between the Union and the states. |
| Answer» B. The Union levies, collects, and keeps all the proceeds of income tax itself. | |
| 60. |
Fiscal stability means that, other things remaining constant |
| A. | debt-GDP ratio declines over time |
| B. | both debt and GDP decrease over time |
| C. | debt and GDP increase at the same rate |
| D. | debt increases but GDP remains the same |
| Answer» B. both debt and GDP decrease over time | |
| 61. |
DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists.Match columns A and B wherein Column B defines Column A Column A Column BI.Capital expenditureA.Includes interest payments, subsidies, defence expenditureII.Plan expenditureB.Includes loans to PSUs, states, foreign governmentsIII.Revenue expenditureC.Includes expenditure on central plans such as agriculture, rural development, irrigation, transport, communications, environment and welfare schemes |
| A. | I-C, II-A, III-B |
| B. | I-B, II-C, III-A |
| C. | I-A, II-D, III-B |
| D. | I-B, II-A, III-C |
| Answer» C. I-A, II-D, III-B | |
| 62. |
DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. List-I List-II[A]Partial convertibility(1)Unified exchange rate, applied for export and import of goods only, visible transaction of BoP.[B]Convertibility on trade account(2)Currency can be converted on all accounts.[C]Convertibility on trade account(3)60% of foreign exchange rates and rest at official rate.[D]Full convertibility(4)Full convertibility in all visible and invisible transaction of goods and Services. |
| A. | A-1;B-2;C-3;D-4 |
| B. | A-3;B-1;C-4;D-2 |
| C. | A-4;B-2;C-1;D-3 |
| D. | A-1;B-4;C-3;D-2 |
| Answer» C. A-4;B-2;C-1;D-3 | |
| 63. |
DIRECTIONS: Match List-I with List-II and select the correct answer using the codes given below the lists. Match columns A and B wherein Column B defines Column A Column A Column B I. External debt of the A. Includessmallsavingschemes, provident fund, reserve II. Includes debt B. Includes loanfrom foreign countries and international financial institutions III. Other internal liabilities C. Includes market loans from banks and financial institutions |
| A. | I-C, II-A, III-B |
| B. | I-B, II-C, III-A |
| C. | I-A, II-D, III-B |
| D. | I-B, II-A, III-C |
| Answer» C. I-A, II-D, III-B | |
| 64. |
The process of budget making after re-evaluating every item of expenditure in every financial year is known as- |
| A. | Performance Budgeting |
| B. | Deficit Budgeting |
| C. | Zero Based Budgeting |
| D. | Fresh Budgeting |
| Answer» D. Fresh Budgeting | |
| 65. |
Which of the following is not viewed as a national debt? |
| A. | Provident Fund |
| B. | Life Insurance Policies |
| C. | National Saving Certificate |
| D. | Long-term Government Bonds |
| Answer» D. Long-term Government Bonds | |
| 66. |
Lok Sabha has passed four Bills relating to the implementation of the Goods and Services Tax (GST). It paves way for implementing a new, consolidated indirect tax regime from the proposed date of July 1, 2017. In this context consider the following statements. 1. The four bills passed were Central GST Bill, Integrated GST Bill, GST Compensation Bill, and the Union Territory GST Bill, 2017. 2. These Bills were passed as Money Bills, thus eliminates the role of Rajya Sabha. 3. The GST laws passed by Parliament will apply to Jammu and Kashmir 4. Essential food articles will not taxed and those will continue to be zero rated under the GST. Identify the correct statements. Codes: |
| A. | Only 1, 2 & 3 |
| B. | Only 1, 2 & 4 |
| C. | Only 2 & 4 |
| D. | All of the above |
| Answer» C. Only 2 & 4 | |
| 67. |
Consider the following statements about GST 1. Both Central and State taxes will be collected at the point of sale. 2. The Central and State GST will be charged on the manufacturing cost. Which of the above statements are correct? Codes: |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both |
| D. | None |
| Answer» D. None | |
| 68. |
Which of the following state taxes are not included in GST? 1. State Value Added Tax 2. Luxury tax 3. Taxes on lottery, betting and gambling Codes: |
| A. | Only 1, 2 |
| B. | Only 1, 3 |
| C. | All of the above |
| D. | None of the above |
| Answer» E. | |
| 69. |
Which of the following is/are true regarding recent GST Bill?1. Recent Goods and Services Tax (GST) Bill is a money bill.2. Being a money bill, Rajya Sabha cannot move amendments to the recently passed GST Bill.Which is/are correct? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» E. | |
| 70. |
Which of the following is/are true?1. Both the State and Centre will have power to make laws on taxation of goods and services.2. Parliament's law will not override a state law on GST.Which is/are correct? |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» B. Only 2 | |
| 71. |
Which of following are reasons for India's twin balance sheet problem? 1. Difficulty in obtaining land and environmental clearances 2. Dampening impact of Global financial crisis 3. Increase in the interest rates by RBI to curb inflation Identify the correct statements: Codes: |
| A. | 1 & 2 only |
| B. | 2 & 3 only |
| C. | All are correct |
| D. | None are correct |
| Answer» D. None are correct | |
| 72. |
Assertion: During the mid 2000 s debt of the companies increased. Reason: The period witnessed high growth rates of economy with increasing investment-GDP ratio and overseas spending. Identify the correct statements (Assertion - A & Reason - R) Codes: |
| A. | Both A and R are true but R is the correct explanation of A |
| B. | Both A and R are true but R is not a correct explanation of A |
| C. | A is true but R is false |
| D. | A is false but R is true |
| Answer» B. Both A and R are true but R is not a correct explanation of A | |
| 73. |
According to economic survey, which of following approaches can be used for gradual introduction of UBI in India?1. Offering UBI as a choice to beneficiaries of existing programs2. Offering UBI to Women Introduction of UBI for certain vulnerable groups like widows, pregnant women, old etc.3. Introduce UBI in urban areas firstIdentify the correct statements: |
| A. | 1 & 2 only |
| B. | 2 & 3 only |
| C. | All are correct |
| D. | None are correct |
| Answer» D. None are correct | |
| 74. |
Article 293 (3) of the Constitution is tool in the hands of centre to check fiscal deterioration on part of states. What is Article 293 (3)? |
| A. | States must take consent of the Centre for additional borrowing |
| B. | States must reduce their fiscal expenditure on Centre's instructions |
| C. | Centre may introduce financial emergency in state to check deteriorating financial situation |
| D. | Centre may raise interest rates on loans given to states |
| Answer» B. States must reduce their fiscal expenditure on Centre's instructions | |
| 75. |
RBI on December 4, 2016 announced to issue new Rs. 20 and Rs. 50 notes to ease the currency crunch due to demonetization decision. Which of the following statements is true? |
| A. | The old notes of Rs. 20 and Rs. 50 will no more remain legal tender after introduction of new notes |
| B. | The new notes will have the signature of RBI Governor Raghu Ram Rajan |
| C. | The year '2016' will be printed on the reverse of the banknotes. |
| D. | The new Rs. 20 notes will have the inset letter 'R' in both the number panels. |
| Answer» D. The new Rs. 20 notes will have the inset letter 'R' in both the number panels. | |
| 76. |
Name the country that in December 2016 demonetized its biggest banknotes. |
| A. | Venezuela |
| B. | Zimbabwe |
| C. | Cuba |
| D. | Nigeria |
| Answer» B. Zimbabwe | |
| 77. |
Which of following are likely long term consequences demonetisation move of government?1. Interest rates could fall further2. Reduction in stock of black money3. Continuation of digital revolution4. Increase in financial savings to the extent ca deposit ratio falls permanently5. Stronger economy with least corruptionIdentify the correct statements. |
| A. | 1, 2, 3 & 5 only |
| B. | 1, 3, 4 & 5 only |
| C. | All are correct |
| D. | None are correct |
| Answer» C. All are correct | |
| 78. |
Consider the following statements:1. The Supreme Court of India on 16 December 2016 referred cases against note ban to a Constitution Bench2. The constitutional bench was formed to review the violation of citizen's right by the cap on cash withdrawals from ATMs and bank counters3. The bench framed eight questions for consideration4. The court refused to provide the interim relief sought by the petitioners.Select the correct answer using the codes given below: |
| A. | Only 1, 2 and 4 |
| B. | Only 2 and 4 |
| C. | Only 1, 2 and 3 |
| D. | All of the above |
| Answer» B. Only 2 and 4 | |
| 79. |
Which of the following will be benefited from the demonetisation step to enhance the economy?1. Reduced corruption2. Greater digitization of the economy3. Increased flow of financial savings4. Greater formalization of the economySelect the correct answer using the codes given below: |
| A. | Only 1 and 2 |
| B. | Only 2, 3 and 4 |
| C. | Only 1, 3 and 4 |
| D. | All the above |
| Answer» E. | |
| 80. |
Non-tax revenues of central government have been challenged in 2016-17. Which of the following is the correct cause of this shortfall? |
| A. | Shortfall in proceeds from spectrum auction |
| B. | Shortfall in disinvestment receipts |
| C. | Stress in public sector enterprises that reduced dividend payments |
| D. | All of the above |
| Answer» E. | |
| 81. |
The most notable feature of tax revenue generation during 2016- 17 has been the over-performance (even relative to budget estimates) of excise duties. Which of the following phenomenon is responsible for this? |
| A. | Buoyant petroleum consumption |
| B. | Increase in manufacturing activities |
| C. | Increase in MSME sector |
| D. | All of the above |
| Answer» E. | |
| 82. |
In the post 'Brexit' and emergence of Donald Trump in US, which of the following phenomenon is most likely to affect the global economy? |
| A. | Deglobalisation |
| B. | Protectionism |
| C. | Banning entry of Muslims into certain countries |
| D. | All of the above |
| Answer» E. | |
| 83. |
Which public sector bank has launched mobile wallet "Bataua" for digital payments? |
| A. | Oriental Bank of Commerce (OBC) |
| B. | Punjab National Bank (PNB) |
| C. | Canara Bank |
| D. | Central Bank of India (CBI) |
| Answer» B. Punjab National Bank (PNB) | |
| 84. |
Which bank has launched India's first Artificial Intelligence (AI)-based banking chatbot "Electronic Virtual Assistant (EVA)" for customer service? |
| A. | ICICI Bank |
| B. | HDFC Bank |
| C. | Axis Bank |
| D. | SBI |
| Answer» C. Axis Bank | |
| 85. |
Which state government has launched mobile App "Mera Hunar" for job aspirants? |
| A. | Andhra Pradesh |
| B. | Assam |
| C. | Himachal Pradesh |
| D. | Kerala |
| Answer» D. Kerala | |
| 86. |
Consider the following statement. (i) Paid up share capital which doesn't exceed 50 lakh rupees or such higher amount as may be prescribed which shall not be more than 5 crore rupees. (ii) Paid up share which extends up to 50 lakh rupess or higher amount as may be prescribed which shall extends more than 5 crore. Which of the following statements is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the Above |
| Answer» B. Only II | |
| 87. |
Consider the following statement. I. Family owned business includes two or more family members and the majority of ownership lies within the family. II. Family owned business includes two or more family members and the majority of ownership is divided between the partners. Which of the following is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the above |
| Answer» B. Only II | |
| 88. |
Consider the following statements (i) Corporate taxes are taxes against profits earned by business during a given taxable period. (ii) A tax payer distributes the incidence of tax and provides for a simple and convenient mode of payment. Which of the following statement is/are correct? |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of these |
| Answer» B. Only II | |
| 89. |
Which of the following is not an example of non- economic activity? |
| A. | Patriotism |
| B. | Teaching |
| C. | Sentiment |
| D. | Sympathy |
| Answer» C. Sentiment | |
| 90. |
The possibilities of inadequate profits or even losses due to uncertainties are known as ________ |
| A. | Business contingencies |
| B. | Business risks |
| C. | Business ventures |
| D. | None of these |
| Answer» C. Business ventures | |
| 91. |
Following are the characteristics of business risks. One of then is not correct. Please identify it. |
| A. | Loss is the reward for risk bearing |
| B. | Business risks are due to uncertainties |
| C. | Risk is an essential component of every business |
| D. | Degree of risk depends mainly upon the nature and size of business |
| Answer» B. Business risks are due to uncertainties | |
| 92. |
In which state Chinese e-retailer giant Alabama will set up its first office in India? |
| A. | Kerala |
| B. | Delhi |
| C. | Guru gram |
| D. | Mumbai |
| Answer» E. | |
| 93. |
The National Pension System is structured in how many tiers? |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» C. 3 | |
| 94. |
What is the full form of the given acronym, LLP? |
| A. | Limited Liability Partnership |
| B. | Living Liability Partnership |
| C. | Liability List Partnership |
| D. | None of these |
| Answer» B. Living Liability Partnership | |