MCQOPTIONS
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MCQOPTIONS
This section includes 78 Mcqs, each offering curated multiple-choice questions to sharpen your General Knowledge knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits |
| A. | will decrease |
| B. | will increase |
| C. | will neither increase nor decrease |
| D. | None of the above |
| Answer» D. None of the above | |
| 2. |
The Mid Day Meal scheme was launched on%! |
| A. | August 15, 2000 |
| B. | August 15, 1992 |
| C. | August 15, 1995 |
| D. | August 15, 2001 |
| Answer» D. August 15, 2001 | |
| 3. |
The Mid Day Meal scheme was launched on%! |
| A. | August 15, 2000 |
| B. | August 15, 1992 |
| C. | August 15, 1995 |
| D. | August 15, 2001 |
| Answer» D. August 15, 2001 | |
| 4. |
Deficit financing implies%! |
| A. | printing new currency notes |
| B. | replacing new currency with worn out currency |
| C. | public expenditure in excess of public revenue |
| D. | public revenue in excess of public expenditure |
| Answer» D. public revenue in excess of public expenditure | |
| 5. |
Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to? |
| A. | ARDC |
| B. | SBI |
| C. | NABARD |
| D. | PACs |
| Answer» D. PACs | |
| 6. |
*$_Which of the following is the first Indian private company to sign an accord with Government of Myanmar for oil exploration in two offshore blocks in that country?? |
| A. | Reliance Energy |
| B. | Essar Oil |
| C. | GAIL |
| D. | ONGC |
| Answer» C. GAIL | |
| 7. |
*/*_Subsidies mean? |
| A. | payment by government for purchase of goods and services |
| B. | payment made by business enterprises to factors of production |
| C. | payment made by companies to shareholders |
| D. | payment made by the government to business enterprises, without buying any goods and services |
| Answer» E. | |
| 8. |
*/*_The Mid Day Meal scheme was launched on? |
| A. | August 15, 2000 |
| B. | August 15, 1992 |
| C. | August 15, 1995 |
| D. | August 15, 2001 |
| Answer» D. August 15, 2001 | |
| 9. |
*/*_The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of? |
| A. | 15 to 20 percent |
| B. | 20 to 25 percent |
| C. | 25 to 30 percent |
| D. | 30 to 35 percent |
| Answer» C. 25 to 30 percent | |
| 10. |
*/*_If the RBI adopts an expansionist open market operations policy, this means that it will? |
| A. | buy securities from non-government holders |
| B. | sell securities in the open market |
| C. | offer commercial banks more credit in the open market |
| D. | openly announce to the market that it intends to expand credit |
| Answer» D. openly announce to the market that it intends to expand credit | |
| 11. |
*/*_The current price index (base 1960) is nearly 330. This means that? |
| A. | all items cost 3-3 times more than what they did in 1960 |
| B. | the prices of certain selected items have gone up to 3-3 times |
| C. | weighted means of prices of certain item has increased 3-3 times |
| D. | gold price has gone up 3-3 times |
| Answer» D. gold price has gone up 3-3 times | |
| 12. |
*/*_Reserve Bank of India was nationalized in the year? |
| A. | 1935 |
| B. | 1945 |
| C. | 1949 |
| D. | 1969 |
| Answer» D. 1969 | |
| 13. |
*/*_Devaluation of a currency means? |
| A. | reduction in the value of a currency vis-a-vis major internationally traded currencies |
| B. | permitting the currency to seek its worth in the international market |
| C. | fixing the value of the currency in conjunction with the movement in the value of a basket of pre-de |
| D. | fixing the value of currency in multilateral consultation with the IMF, the World Bank and major tra |
| Answer» B. permitting the currency to seek its worth in the international market | |
| 14. |
*/*_Since the inception of the co-operative movement, rural credits has been? |
| A. | institutionalized |
| B. | rationalized |
| C. | cheapened |
| D. | All of the above |
| Answer» E. | |
| 15. |
*/*_Non Tax revenues can be increased by improving the working of the? |
| A. | State Road Transport Corporations |
| B. | electricity boards |
| C. | commercial irrigation projects |
| D. | All of the above |
| Answer» D. All of the above | |
| 16. |
*/*_The currency convertibility concept in its original form originated in? |
| A. | Wells Agreement |
| B. | Bretton Woods Agreement |
| C. | Taylors Agreement |
| D. | None of the above |
| Answer» C. Taylors Agreement | |
| 17. |
*/*_Gross domestic capital formation is defined as? |
| A. | flow of expenditure devoted to increased or maintaining of the capital stock |
| B. | expenditure incurred on physical assets only |
| C. | production exceeding demand |
| D. | net addition to stock after depreciation |
| Answer» E. | |
| 18. |
*/*_If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits? |
| A. | will decrease |
| B. | will increase |
| C. | will neither increase nor decrease |
| D. | None of the above |
| Answer» D. None of the above | |
| 19. |
*/*_Open market operation is a part of:? |
| A. | Credit Policy |
| B. | Debit Policy |
| C. | Deposit Policy |
| D. | None of these |
| Answer» B. Debit Policy | |
| 20. |
%_Since 1983, the RBI's responsibility with respect to regional rural banks was transferred to_% |
| A. | ARDC |
| B. | SBI |
| C. | NABARD |
| D. | PACs |
| Answer» D. PACs | |
| 21. |
_ The average rate of domestic savings (gross) for the Indian economy is currently estimated to be in the range of$? |
| A. | 15 to 20 percent |
| B. | 20 to 25 percent |
| C. | 25 to 30 percent |
| D. | 30 to 35 percent |
| Answer» C. 25 to 30 percent | |
| 22. |
_ Open market operation is a part of:$? |
| A. | Credit Policy |
| B. | Debit Policy |
| C. | Deposit Policy |
| D. | None of these |
| Answer» B. Debit Policy | |
| 23. |
_ The budget deficit means$? |
| A. | the excess of total expenditure, including loans, net of lending over revenue receipts |
| B. | difference between revenue receipts and revenue expenditure |
| C. | difference between all receipts and all the expenditure |
| D. | fiscal deficit less interest payments |
| Answer» D. fiscal deficit less interest payments | |
| 24. |
_ Fiscal deficit in the Union Budget means$? |
| A. | the difference between current expenditure and current revenue |
| B. | net increase in Union Governments borrowings from the Reserve Bank of India |
| C. | the sum of budgetary deficit and net increase in internal and external borrowings |
| D. | the sum of monetized deficit and budgetary deficit |
| Answer» D. the sum of monetized deficit and budgetary deficit | |
| 25. |
_ Which of the following is not an undertaking under the administrative control of Ministry of Railways?$? |
| A. | Container Corporation of India Limited |
| B. | Konkan Railway Corporation Limited |
| C. | Indian Railways Construction Company Limited |
| D. | Diesel Locomotive Works, Varanasi |
| Answer» D. Diesel Locomotive Works, Varanasi | |
| 26. |
_ The Board of Industrial and Financial Reconstruction (BIFR) came into existence in$? |
| A. | 1984 |
| B. | 1986 |
| C. | 1987 |
| D. | 1989 |
| Answer» D. 1989 | |
| 27. |
_ The banks are required to maintain a certain ratio between their cash in the hand and totals assets. This is called$? |
| A. | Statutory Bank Ratio (SBR) |
| B. | Statutory Liquid Ratio (SLR) |
| C. | Central Bank Reserve (CBR) |
| D. | Central Liquid Reserve (CLR) |
| Answer» C. Central Bank Reserve (CBR) | |
| 28. |
_ In the last one decade, which one among the following sectors has attracted the highest foreign direct investment inflows into India?$? |
| A. | Chemicals other than fertilizers |
| B. | Services sector |
| C. | Food processing |
| D. | Telecommunication |
| Answer» E. | |
| 29. |
_ Revenue of the state governments are raised from the following sources, except$? |
| A. | entertainment tax |
| B. | expenditure tax |
| C. | agricultural income tax |
| D. | land revenue |
| Answer» D. land revenue | |
| 30. |
_ Which of the following is the first Indian private company to sign an accord with Government of Myanmar for oil exploration in two offshore blocks in that country?$? |
| A. | Reliance Energy |
| B. | Essar Oil |
| C. | GAIL |
| D. | ONGC |
| Answer» C. GAIL | |
| 31. |
_ States earn maximum revenue through$? |
| A. | land revenue |
| B. | custom revenue |
| C. | commercial taxes |
| D. | excise duties on intoxicants |
| Answer» D. excise duties on intoxicants | |
| 32. |
_ Which of the following items would not appear in a company's balance sheet?$? |
| A. | Value of stocks of raw materials held |
| B. | Total issued capital |
| C. | Revenue from sales of the company's products |
| D. | Cash held at the bank |
| Answer» D. Cash held at the bank | |
| 33. |
_ One of the reasons for India's occupational structure remaining more or less the same over the years has been that$? |
| A. | investment pattern has been directed towards capital intensive industries |
| B. | productivity in agriculture has been high enough to induce people to stay with agriculture |
| C. | ceiling on land holdings have enabled more people to own land and hence their preference to stay wit |
| D. | people are largely unaware of the significance of transition from agriculture to industry for econom |
| Answer» B. productivity in agriculture has been high enough to induce people to stay with agriculture | |
| 34. |
_ Deficit financing leads to inflation in general, but it can be checked if$? |
| A. | government expenditure leads to increase in the aggregate supply in ratio of aggregate demand |
| B. | only aggregate demand is increased |
| C. | all the expenditure is denoted national debt payment only |
| D. | All of the above |
| Answer» E. | |
| 35. |
__Devaluation of currency leads to__ |
| A. | fall in domestic prices |
| B. | increase in domestic prices |
| C. | no impact on domestic prices |
| D. | erratic fluctuations in domestic prices |
| Answer» C. no impact on domestic prices | |
| 36. |
_Excise duty is a tax levied on the$? |
| A. | import of goods |
| B. | export of goods |
| C. | production of goods |
| D. | sale of goods |
| Answer» D. sale of goods | |
| 37. |
_The annual yield from which of the following Union Government taxes is the highest?$? |
| A. | Custom duties |
| B. | Corporation tax and income tax |
| C. | Inheritance tax, wealth tax, interest tax and gift tax |
| D. | Excise duties |
| Answer» E. | |
| 38. |
_Who gave the call for Evergreen Revolution?$? |
| A. | M. S. Swaminathan |
| B. | Verghese Kurien |
| C. | Tribhuvandas Patel |
| D. | H. M. Dalaya |
| Answer» B. Verghese Kurien | |
| 39. |
_In India, which one among the following formulates the fiscal policy?$? |
| A. | Planning Commission |
| B. | Ministry of Finance |
| C. | Finance Commission |
| D. | The Reserve Bank of India |
| Answer» C. Finance Commission | |
| 40. |
If the fiscal deficit of the Union Government is Rs. 75,000 crores relending to State is Rs. 25,000 crores, interest payments are Rs. 25,000 crores, what is the amount of the primary deficit?$? |
| A. | Rs. 50,000 crores |
| B. | Rs. 25,000 crores |
| C. | Rs. 1,00,000 crores |
| D. | Rs. 1,25,000 crores |
| Answer» B. Rs. 25,000 crores | |
| 41. |
The apex body for formulating plans and coordinating research work in agriculture and allied fields is$? |
| A. | State Trading Corporation |
| B. | Regional Rural Banks |
| C. | National Bank for Agriculture and Rural Development (NABARD) |
| D. | Indian Council of Agricultural Research |
| Answer» E. | |
| 42. |
Regional rural banks I=have limited area of operation II=have free access to liberal refinance facilities from NABARD III=are required to lend only to weaker sections$? |
| A. | I, III |
| B. | II, III |
| C. | I, II, III |
| D. | I, II |
| Answer» E. | |
| 43. |
Of the gross tax revenue of the Union Government the indirect taxes account for nearly$? |
| A. | 70 per cent |
| B. | 75 percent |
| C. | 65 percent |
| D. | 60 percent |
| Answer» D. 60 percent | |
| 44. |
Gilt-edged market means$? |
| A. | bullion market |
| B. | market of government securities |
| C. | market of guns |
| D. | market of pure metals |
| Answer» C. market of guns | |
| 45. |
Deficit financing means that the government borrows money from the$? |
| A. | RBI |
| B. | local bodies |
| C. | big businessmen |
| D. | IMF |
| Answer» B. local bodies | |
| 46. |
In pursuance with the recommendations of Narsimhan Committee, the RBI has framed new guidelines$? |
| A. | to govern entry of new private sector banks to make the banking sector more competitive |
| B. | to reduce the freedom given to banks to rationalize their existing branch network |
| C. | to setup more foreign exchange banks |
| D. | to lend more easily for industrial development |
| Answer» B. to reduce the freedom given to banks to rationalize their existing branch network | |
| 47. |
The first wholly Indian Bank was set up in$? |
| A. | 1794 |
| B. | 1894 |
| C. | 1896 |
| D. | 1902 |
| Answer» C. 1896 | |
| 48. |
If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to$? |
| A. | increase it |
| B. | decrease it |
| C. | no impact |
| D. | None of the above |
| Answer» B. decrease it | |
| 49. |
On which one of the followings is the benefits received principle of taxation to achieve optimality bases?$? |
| A. | Marginal benefit received |
| B. | Total benefit received |
| C. | Average benefit received |
| D. | Ability to pay for the benefit |
| Answer» E. | |
| 50. |
Depreciation means$? |
| A. | closure of a plant due to lock out |
| B. | closure of a plant due to labour trouble |
| C. | loss of equipment over time due to wear and tear |
| D. | destruction of a plant in a fire accident |
| Answer» D. destruction of a plant in a fire accident | |