INDIAN ECONOMY QUESTIONS 1.On the basis of census 2001, which Indian state has the highest population after Uttar Pradesh ? (A) Bihar (B) West Bengal (C) Maharashtra (D) Tamil Nadu Ans : (C) 2. Which among the following is the first commercial bank of limited liability managed by Indians ? (A) Punjab National Bank (B) Oudh Commercial Bank (C) Imperial Bank of India (D) Bank of Baroda Ans : (B) 3. What is International Development Association ? (A) A voluntary association of developing countries (B) A federation of International lending agencies (C) An affiliate of World Bank (D) An organization of donor countries of European Union Ans : (C) 4. Sea water, fresh air etc. are regarded in economics as² (A) Giffen goods (B) Inferior goods (C) Free goods (D) Normal goods Ans : (C) 5. The Small Industries Development Bank of India (SIDBI) provides refinance facilities under ARS. What is the full form of ARS ? (A) Automatic Refinance Scheme (B) Allocation and Refinance Solutions (C) Automatic Refinance Solution (D) Allocation and Refinance Scheme Ans : (A) 6. Which one of the following was the chairman of the committee on pricing and taxation of petroleum products ? (A) Raja J. Chelliah (B) C. Rangarajan (C) Y. V. Reddy (D) Abid Hussain Ans : (B) 7. What was the limit of ARS fixed initially by the Small Industries Bank of India (SIDBI) ? (A) Rs. 10 lakh (B) Rs. 20 lakh (C) Rs. 25 lakh (D) Rs. 35 lakh Ans : (A) 8. The Small Industries Development Bank of India (SIDBI) has been operating under SWS. What is the full form of SWS ? (A) Small Welfare Scheme (B) Single Window Scheme (C) Small Window Service (D) Single Window Service Ans : (D) 9. When was the Small Industries Development Bank of India (SIDBI) set up ? (A) 1988 (B) 1990 (C) 1992 (D) 1998 Ans : (B) 10. As on 31st March, 1991, paid up capital of Small Industries Development Bank of India was² (A) Rs. 100 crore (B) Rs. 150 crore (C) Rs. 200 crore (D) Rs. 450 crore Ans : (D) 1. The Small Industries Development Bank of India was established as a wholly owned subsidiary of² (A) ECGC (B) RBI (C) NABARD (D) IDBI Ans : (D) 2. One of the objectives of the 11th five year plan is to reduce the poverty ratio by how much percentage points by the year 2012 ? (A) 2% (B) 25% (C) 35% (D) 10% Ans : (D) 3. Which of the following is the target fixed by the 11th five year plan pertaining to increase in the literacy by the year 2012 ? The level should be increased to² (A) 50% (B) 60% (C) 70% (D) 85% Ans : (D) 4. The Head Quarter of SIDBI is located at² (A) New Delhi (B) Mumbai (C) Lucknow (D) Bangaluru Ans : (C) 5. Decline in the price of goods and services is technically known as² (A) Deflation (B) Inflation (C) Negative growth (D) Discount yield Ans : (A) 6. What per cent of plan Allocation for Infrastructure in Budget 2010-11 ? (A) 36 per cent (B) 46 per cent (C) 51 per cent (D) 59 per cent Ans : (B) 7. If the price of tea falls, demand for coffee will² (A) Increase (B) Fall (C) Remain same (D) None of the above Ans : (B) 8. µBlue Revolution¶ is related to² (A) Space Research (B) Fisheries (C) Drinking Water (D) Poultry Ans : (B) 9. Which of the following is/are the component(s) of Gross Domestic Capital Formation (GDCF) ? (1) Gross Domestic Savings (2) Net Capital Inflow (3) Direct Foreign Investment Codes : (A) Only (1) (B) Only (2) (C) Only (3) (D) Both (1) and (2) Ans : (D) 10. Small Scale Industry like handicraft and cottage industries account for nearly what per cent of the country¶s exports ? (A) 15% (B) 20% (C) 30% (D) 35% Ans : (B) 1. Normally two types of factors are responsible for industrial sickness extrogenous and endogenous. Which of the following is not and endogenous factor of industrial sickness ? (A) Shortage of power (B) Mismanagement (C) Diversion of funds (D) Excessive overheads Ans : (A) 2. Which of the following does not determine supply of labour ? (A) Age-structure of population (B) Nature of work (C) Marginal productivity of labour (D) Work-leisure ratio Ans : (D) 3. Which of the following is an employment generating scheme ? (A) Ganga Kalyan Yojana (B) IRDA (C) Swarnjayanti Shahri Rozgar Yojana (D) Mid Day Meal Scheme Ans : (C) 4. Which of the following is the ceiling enforced by the European commission on the budget deficit in terms of the percentage of the GDP, on its member countries ? (A) 1% (B) 2% (C) 3% (D) 5% (E) None of these Ans : (C) 5. VAT is² (A) Value Added Tax (B) Value Added Temple (C) Value Assets Total (D) None of these Ans : (A) 6. Euro is a² (A) Currency (B) City (C) Group (D) River Ans : (A) 7. Index ³Residex´ is associated with² (A) Share Prices (B) Mutual Fund Prices (C) Price Inflation Index (D) Land Prices Ans : (D) 8. Ethanol mixed petrol is being sold in various states w.e.f. January 1, 2003. The percentage of ethanol in petrol is² (A) 10% (B) 7% (C) 6% (D) 5% Ans : (D) 9. At present the National commission on population is under² (A) Planning Commission (B) Ministry of Human Resource Development (C) Cabinet Secretariat (D) Ministry of Health Ans : (D) 10. As per the reports published in the Newspapers the National Housing Bank (NHB) is planing to launch a reverse mortgage scheme specially to help which of the following sections of society ? (A) People in rural India (B) Senior citizens (C) People living in Govt. accommodations (D) Women who are sole bread winners Ans : (B) 1. Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India ? (A) Services±Industry±Agriculture (B) Services±Agriculture±Industry (C) Industry±Services±Agriculture (D) Industry±Agriculture±Services Ans : (A) 2. Govt. of India recently introduced some measures/incentives to improve tourism in India. Which of the following is one of these measures ? (A) Issuance of electronic visa (B) Free stay for three days in Govt. hotels in four metros for business travellers and frequent flyers (C) Highly subsidized air travel on metro routes for frequent flyers (D) Free trip to Agra, Delhi and Jaipur to those coming on educational/study tours Ans : (A) 3. Which of the following agencies recently laid down guidelines for foreign companies who wish to raise money from the Indian capital markets ? (A) RBI (B) IRDA (C) Registrar of Companies (D) SEBI Ans : (D) 4. Consider the following statements² 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 for Gini co-efficient in country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2 Ans : (C) 5. How many models of µNano¶ car are being made available initially ? (A) 04 (B) 03 (C) 02 (D) 01 Ans : (B) 6. Which of the following organizations/agencies has agreed to set up an institute in India to train manpower in commodities ? (A) World Bank (B) Asian Development Bank (C) International Monetary Fund (D) New York Stock Exchange Ans : (D) 7. In absolute terms basis of GDP, Indian economy attained which rank in the world as per world Development Report 2009 ? (A) 10th (B) 5th (C) 12th (D) 4th Ans : (C) 8. Tarapore committee was associated with which one of the following ? (A) Special economic zones (B) Full capital account convertibility (C) Foreign exchange reserves (D) Effect of oil prices on the Indian economy Ans : (B) 9. Who among the following served as the chief economist of the International Monetary Fund ? (A) Ashok Lahiri (B) Sumantra Ghoshal (C) Saumitra Chaudhri (D) Raghuram Rajan Ans : (D) 10. Which one of the following is the AGMARK related to ? (A) Agricultural products (B) Gems and jewellery (C) Capital goods (D) None of the above Ans : (A) 1. As per the status on March 4, 2009, which of the following rate stands lowest ? (A) Bank Rate (B) CRR (C) Repo Rate (D) Reverse Repo Rate Ans : (E) 2. ADB raises India¶s Growth forecast for 2010 from 725% to² (A) 65% (B) 675% (C) 7% (D) 82% Ans : (C) 3. Which of the following is true for literacy rate in West Bengal ? (A) The literacy rate in West Bengal is higher than the national average (B) The literacy rate in West Bengal is lower than the National average (C) West Bengal¶s literacy rate is the lowest in India (D) None of the above Ans : (A) 4. Participatory Notes (PNs) are associated with which one of the following ? (A) Consolidated fund of India (B) Foreign institutional Investors (C) United Nations Development Programme (D) Kyoto protocol Ans : (B) 5. Which of the following countries has the largest stock of foreign exchange reserves in the world ? (A) USA (B) China (C) Japan (D) India Ans : (B) 6. Who amongst the following is the first chairman of the newly constituted national statistical commission? (A) Prof. Suresh D. Tendulkar (B) Dr. Ashok Lahiri (C) Dr. Rakesh Mohan (D) Prof. S. K. Ghosh Ans : (A) 7. Which of the following taxes is exclusively and totally assigned to the state government by the constitution ? (A) Estate duty (B) Sales tax (C) Taxes on Railway fares and frights (D) Corporation tax Ans : (B) 8. In Union Budget 2010-11 which of the following deficit has been estimated at 4% of the GDP ? (A) Fiscal Deficit (B) Primary Deficit (C) Revenue Deficit (D) None of the above Ans : (C) 9. The tax on import and export is known as² (A) Income tax (B) Trade tax (C) Custom duty (D) None of the above Ans : (C) 10. CSO has projected GDP growth for 2009-10 at² (A) 72 per cent (B) 82 per cent (C) 71 per cent (D) 62 per cent Ans : (A) 1. Which one of the following is not an objective of fiscal policy of Indian government ? (A) Full employment (B) Price stability (C) Regulation of inter-state trade (D) Equitable distribution of wealth and income Ans :(C) 2. Hindu rate of growth refers to the rate of growth of² (A) GDP (B) Population (C) Foodgrains (D) Per capita income Ans :(A) 3. As per recommendations of the twelfth finance commission, percentage share of states of the shareable central taxes is² (A) 285 (B) 295 (C) 305 (D) 324 Ans :(C) 4. In India, national income is estimated by² (A) Planning Commission (B) Central Statistical Organisation (C) Indian Statistical Institute (D) National Sample Survey Organisation Ans :(B) 5. Bharat Nirman Scheme of the UPA government does not include² (A) Rural water supply project (B) Irrigation benefit programme (C) Rural electrification (D) Sarva shiksha abhiyan Ans :(D) 6. Which one of the following committees recommended the abolition of reservation of items for the small scale sector in industry ? (A) Abid Hussain Committee (B) Narasimhan Committee (C) Nayak Committee (D) Rakesh Mohan Committee Ans :(A) 7. 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 fertilisers (B) Services sector (C) Food processing (D) Telecommunication Ans :(D) 8. Who formulates the monetary policy in India ? (A) SEBI (B) RBI (C) Finance Ministry (D) Planning Commission Ans :(B) 9. Which of the following experienced the fastest expansion during the plan period in India ? (A) Agriculture (B) Industry (C) Services (D) None of these Ans :(C) 10. Which among the following indirect tax collection shows the maximum fall during AprilNov. 2009 over the same period of 2008-09 ? (A) Excise Duty (B) Custom Duty (C) Service Tax (D) All the above show equal fall Ans :(B) 1. Invisible export means export of² (A) Services (B) Prohibited goods (C) Unrecorded goods (D) Goods through smuggling Ans : (A) 2. A labour intensive industry is one that² (A) Requires hard manual labour (B) Pays adequate wages to the labour (C) Employs more hands (D) Provides facilities to labour Ans : (C) 3. Select the one which is not the responsibility of Gram Sabha under the Rural Employment Guarantee Act, 2005 ? (A) To recommend projects to the Gram Panchayat and prepare list of possible works (B) To receive applications for work and issue a dated receipt (C) To monitor the execution of works within the Gram Panchayat (D) To conduct regular social audits of all the projects taken up with in the Gram Panchayat Ans : (B) 4. Special Economic Zones are being set up in² (A) Agra, Kanpur and Modinagar (B) Agra, Kanpur and Greater Noida (C) Meerut, Moradabad, Kanpur and Noida (D) Moradabad, Kanpur, Noida and Greater Noida Ans : (B) 5. In the law of demand, the statement µother things remain constant¶ means² (A) Income of consumer should not change (B) Prices of other goods should not change (C) Taste of consumer should not change (D) All of the above Ans : (D) 6. A firm is in equilibrium when its² (A) Marginal cost equals the marginal revenue (B) Total cost is minimum (C) Total revenue is maximum (D) Average revenue and marginal revenue are equal Ans : (A) 7. The World Trade Organisation (WTO) was earlier known as² (A) GATT (B) UNICEF (C) UNCTAD (D) FAO Ans : (A) 8. Given the money wages, if the price level in an economy increases, then the real wages will² (A) Increase (B) Decrease (C) Remain constant (D) Become flexible Ans : (B) 9. The difference between visible exports and visible imports is defined as² (A) Balance of trade (B) Balance of payment (C) Balanced terms of trade (D) Coins from trade Ans : (A) 10. What is Value Added Tax (VAT) ? (A) A simple, transparent, easy to pay tax imposed on consumers (B) A new initiative taken by the government to increase the tax-burden of high income groups (C) A single tax that replaces state taxes like, surcharge turnover tax and sales tax, etc. (D) A new tax to be imposed on the producers of capital goods Ans : (C) 1. The outcome of devaluation of currency is² (A) Increased export and improvement in balance of payment (B) Increased export and foreign reserve deficiency (C) Increased import and improvement in balance of payment (D) Increased export and import Ans : (A) 2. In India, µYellow Revolution¶ is associated with² (A) Production of paddy (B) Production of oilseeds (C) Production of tea (D) Production of flower Ans : (B) 3. The term µGreen GNP¶ emphasizes² (A) Rapid growth of GNP (B) Increase in per capita income (C) Economic development (D) Sustainable development Ans : (D) 4. The common currency which has been introduced among members of European Economic Community (EEC) is known as² (A) Euro pound (B) Euro (C) Euro Dollar (D) None of these Ans : (B) 5. What is referred to as µDepository Services¶ ? (A) A new scheme of fixed deposits (B) A method of regulating stock exchanges (C) An agency for safe-keeping of securities (D) An advisory service to investors Ans : (C) 6. Who amongst the following was the head of the 13th Finance Commission which submitted its report to the President of India on 30th December, 2009 ? (A) Vijay Kelkar (B) Dr. Rakesh Mohan (C) Mr. Kumar Mangalam Birla (D) Mr. Rahul Bajaj Ans : (A) 7. The government of India has acquired around 60% share holding in which of the following banks from the Reserve Bank of India ? (A) Punjab National Bank (B) Bank of India (C) State Bank of India (D) Indian Bank Ans : (C) 8. Which of the following organization / agencies recently issued guidelines for fair practices code for non-banking finance companies ? (A) SEBI (B) NABARD (C) Central Board of Direct Taxes (D) Reserve Bank of India Ans : (D) 9. Industrial exit policy means² (A) Forcing foreign companies to leave India (B) Forcing business units to move out of congested localities (C) Allowing manufactures to shift their line products (D) Allowing business units to close down Ans : (D) 10. The United Western Bank which was recently in news is a² (A) Nationalized Bank (B) Private Bank (C) Co-operative Bank (D) Foreign Bank Ans : (B) 1. The name of noted economist Prof. Suresh Tendulkar was in news as he has² (A) Taken over as the chairman of the National Statistical Commission (B) Taken over as the Chief Economic Advisor to the Prime Minister of India (C) Been nominated for the Nobel Prize in Economics for 2007 (D) Taken over as the Deputy Chairman of the Planning Commission of India Ans : (A) 2. How much amount, the Govt. of India is planning to provide as a one time financial help to revitalize the co-operative credit system in India ? (A) Rs. 8,000 crore (B) Rs. 10,000 crore (C) Rs. 12,000 crore (D) Rs. 14,000 crore Ans : (D) 3. As per the new guidelines issued by the SEBI, mutual funds are now allowed to invest in which of the following sectors ? (A) Service sector (B) Real estate (C) Manufacturing sector (D) IT sector Ans : (B) 4. What is money laundering ? (A) Providing money for criminal purpose (B) Transferring cash from one place to another (C) Keeping huge amount of cash in house instead of a bank (D) None of these Ans : (D) 5. When decimal method was introduced in the Indian monetary system ? (A) 1950 (B) 1954 (C) 1957 (D) 1960 Ans : (C) 6. The name µWall Street¶ is associated with² (A) The newspaper centre of Britain (B) The financial centre of USA (C) The great wall of China (D) A renowned street in France Ans : (A) 7. Which authority decides about the states¶ share in central taxes ? (A) Finance commission (B) Planning commission (C) Election commission (D) Finance ministry Ans : (A) 8. The Bank Rate Policy is a component of² (A) Fiscal policy (B) Monetary policy (C) Trade policy (D) Direct control Ans : (B) 9. The National Bank for Agriculture and Rural Development (NABARD) was established in² (A) 1981 (B) 1982 (C) 1983 (D) 1984 Ans : (B) 10. Which of the following is included in the Employees¶ State Insurance Act, 1948 ? (A) Unemployment Insurance (B) Medical Benefit (C) Minimum Wages (D) None of these Ans : (B) 1. The name of noted economist Prof. Suresh Tendulkar was in news as he has² (A) Taken over as the chairman of the National Statistical Commission (B) Taken over as the Chief Economic Advisor to the Prime Minister of India (C) Been nominated for the Nobel Prize in Economics for 2007 (D) Taken over as the Deputy Chairman of the Planning Commission of India Ans : (A) 2. How much amount, the Govt. of India is planning to provide as a one time financial help to revitalize the co-operative credit system in India ? (A) Rs. 8,000 crore (B) Rs. 10,000 crore (C) Rs. 12,000 crore (D) Rs. 14,000 crore Ans : (D) 3. As per the new guidelines issued by the SEBI, mutual funds are now allowed to invest in which of the following sectors ? (A) Service sector (B) Real estate (C) Manufacturing sector (D) IT sector Ans : (B) 4. What is money laundering ? (A) Providing money for criminal purpose (B) Transferring cash from one place to another (C) Keeping huge amount of cash in house instead of a bank (D) None of these Ans : (D) 5. When decimal method was introduced in the Indian monetary system ? (A) 1950 (B) 1954 (C) 1957 (D) 1960 Ans : (C) 6. The name µWall Street¶ is associated with² (A) The newspaper centre of Britain (B) The financial centre of USA (C) The great wall of China (D) A renowned street in France Ans : (A) 7. Which authority decides about the states¶ share in central taxes ? (A) Finance commission (B) Planning commission (C) Election commission (D) Finance ministry Ans : (A) 8. The Bank Rate Policy is a component of² (A) Fiscal policy (B) Monetary policy (C) Trade policy (D) Direct control Ans : (B) 9. The National Bank for Agriculture and Rural Development (NABARD) was established in² (A) 1981 (B) 1982 (C) 1983 (D) 1984 Ans : (B) 10. Which of the following is included in the Employees¶ State Insurance Act, 1948 ? (A) Unemployment Insurance (B) Medical Benefit (C) Minimum Wages (D) None of these Ans : (B) 1. J. J. Irani Committee has been set up to suggest change in² (A) Indian Telegraph Act (B) Cable Act (C) Companies Act (D) Patent Act Ans :(C) 2. The present base year for calculating wholesale price index number is² (A) 1993-94 (B) 1991-92 (C) 1961-62 (D) 1950-51 Ans :(A) 3. How will a reduction in µBank rate¶ affect the availability of credit ? (A) Credit will increase (B) Credit will not increase (C) Credit will decrease (D) None of the above Ans :(A) 4. Who among the following was not the Governor of Reserve Bank of India ? (A) Manmohan Singh (B) Bimal Jalan (C) C. Rangarajan (D) Raja J. Chelliah Ans :(D) 5. The first export processing zone of the private sector was established at² (A) Surat (B) Noida (C) Chennai (D) Mangalore Ans :(A) 6. Which of the following method is not used by N.S.S.O. for the measurement of unemployment in India ? (A) Usual Principal Status (B) Current Monthly Status (C) Current Weekly Status (D) Current Daily Status Ans :(B) 7. In Human Development Report 2007, which rank among 177 nations has been assigned to India with respect to human development index ? (A) 125th (B) 126th (C) 127th (D) 128th Ans :(D) 8. While preseating the latest national income estimates, CSO has taken the base year as² (A) 2001-02 (B) 2002-03 (C) 2003-04 (D) 2004-05 Ans :(D) 9. Which one of the following is not related with income from corporate sector in India ? (A) Fringe benefit tax (B) Minimum alternate tax (C) Capital gains tax (D) Tax on company profit Ans :(C) 10. A larger part of the fiscal deficit in the union budgets is filled by² (A) Tax revenue (B) Domestic borrowing (C) Foreign borrowing (D) Printing paper currency Ans :(B) 1. µBSE Sensex¶ is an index to measure ups and downs in the share market. The number of companies covered under the index are² (A) 30 (B) 50 (C) 100 (D) 150 Ans :(A) 2. Prarambhik Shiksha Kosh (PSK) was constituted in 2005 to receive the proceeds of the² (A) Donation from public and NGOs (B) Revenues generated by Gram Sabhas for the development of primary education (C) Education cess imposed by the centre (D) Contributions from the World Bank for the development of primary education Ans :(C) 3. When a large number of investors in a country transfer their investments elsewhere because of disturbed economic conditions, it is called² (A) Transfer of capital (B) Escape of capital (C) Outflow of capital (D) Flight of capital Ans :(D) 4. On the basis of size and composition of external debt. World Bank has classified India as² (A) A less indebted country (B) A moderately indebted country (C) A heavily indebted country (D) A severely indebted country Ans :(A) 5. What is true for service tax in Union Budget 2010-11 ? (A) Retained at 8% (B) Retained at 9% (C) Retained at 10% (D) Retained at 12% Ans :(C) 6. Golden Handshake Scheme is associated with² (A) Inviting foreign companies (B) Private investment in public enterprises (C) Establishing joint-enterprises (D) Voluntary retirement Ans :(D) 7. In what capacity was P.C. Mahalanobis associated with the formulation of the economic policy of independent India ? (A) As an applied statistician (B) As Deputy Chairman of the Planning Commission (C) As a leading industrialist (D) As a minister of the Union Cabinet Ans :(A) 8. Acute shortage of capital, technological backwardness and lack of skilled manpower have greatly obstructed the economic development of India. These are² (A) Political factors (B) Economic factors (C) Social factors (D) None of these Ans :(B) 9. A significant victory for the developing countries on the issue of TRIPS at the Doha meet was² (A) Postponement of the issue of labour standards (B) Special dispensation for least developed countries (C) Power to grant exemption from patent regime in the interest of public health (D) Discussion on implementation issues Ans :(C) 10. Which of the following organizations/agencies recently decided to provide grades to the merchant bankers so that they contract the market and ensure that only good issues arrive in the market ? (A) RBI (B) SEBI (C) AMFI (D) Registrar of Companies Ans :(A) 1. According to the S.K. Sharma panel, which of the following documents should be revalidated after a certain period so that it cannot be misused by the people² (A) PAN Card (B) Credit Card (C) Driving Licence (D) ID Cards issued by the election commission (E) None of these Ans :(A) 2. How many items are reserved for small scale industries in India as on October 2008 ? (A) 60 (B) 68 (C) 100 (D) 21 (E) None of these Ans :(D) 3. Inflation occurs when aggregate supply is² (A) More than aggregate demand (B) Less than aggregate demand (C) Equal to aggregate demand (D) None of the above Ans :(B) 4. In economics, production means² (A) Manufacturing (B) Making (C) Creating utility (D) Farming Ans :(C) 5. The government of India decides the minimum support price of which of the following commodities ? (A) Sugar cane (B) Green vegetable (C) Medicinal plants (D) Milk (E) All of these Ans :(A) 6. The mid-day meal scheme is launched by the Union Ministry of² (A) Home Affairs (B) Social Welfare (C) Human Resource Development (D) Rural Development (E) None of these Ans :(C) 7. Which of the following products/commodities is under the partial control of the union government and is purchased as compulsory levy at a fixed price from the factories/ producers ? (A) Milk (B) Sugar (C) Cloth (D) Pharma products (E) None of these Ans :(B) 8. As per the estimates given by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), India¶s Trade with SAARC countries is at which of the following levels at present ? (A) Rs. 15,000 crore (B) Rs. 20,000 crore (C) Rs. 25,000 crore (D) Rs. 30,000 crore (E) Rs. 35,000 crore Ans :(C) 9. The subject matter of the recently published report of Kelkar Committee is² (A) Agricultural debt (B) Share market scam (C) Tax system of India (D) Foreign trade Ans :(C) 10. World Economic Forum in its report places India among 134 economies at ² (A) 114th rank (B) 116th rank (C) 126th rank (D) 128th rank Ans :(A) 1. The economic growth of how much per cent has the IMF, IBRD and ADB predicted in current fiscal year 2009-10 ? (A) 5 to 6 % (B) Between 4 to 5% (C) 6 to 7% (D) 7 to 8% Ans :(B) 2. The term National income represents² (A) Gross national product at market prices minus depreciation (B) Gross national product at market prices minus depreciation plus net factor income from abroad (C) Gross national product at market prices minus depreciation and indirect taxes plus subsidies (D) Gross national product at market prices minus net factor income from abroad. Ans :(C) 3. According the modern thinking, the law of diminishing returns applies to² (A) Agriculture (B) Industry (C) Mining (D) All fields of production Ans :(D) 4. In a system of free enterprise, consumers decide what goods and services shall be produced and in what quantities. It is known as² (A) Consumer protection (B) Consumer¶s decision (C) Consumer preference (D) Consumer¶s sovereignty Ans :(D) 5. For International payments, the Indian currency is linked to² (A) American Dollar (B) British Sterling (C) International Oil Price (D) Gold Standard Ans :(A) 6. GNP (Gross National Product) is the money value of² (A) Final goods and services produced annually with the economy (B) Annual service generation in the economy (C) Tangible goods available in the economy (D) Tangible goods produced annually in the economy Ans :(A) 7.µCAPART¶ is engaged primarily with which one of the following in India ? (A) e-governance (B) Share-market (C) Rural development (D) Pollution control Ans :(C) 8. The main function of IMF is to² (A) Finance investment loans to developing countries (B) Act as a private sector lending arm of the World Bank (C) Help to solve balance of payment problems of members countries (D) Arrange International deposits from banks Ans :(C) 9. Consider the following statements² 1. Income tax Permanent Account number (PAN) is a 8-digit alphanumeric number. 2. India is divided into 10 zones for postal pin code classification. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2 Ans :(D) 10. In which one of the following states is the falta Special Economic Zone located ? (A) Kerala (B) Gujarat (C) Orissa (D) West Bengal Ans :(D)