Updated December 21, 2022
Indian Economy Objective Questions featured on this page is result of sincere efforts put in by the team Career101.in. These questions are from length and breadth of Indian Economy and they test your actual acumen which is very much required in making through the Government Jobs. In terms of assessment standards the objective questions asked from Indian Economy can at times intriguing and you may not find at ease solving them. So, in its endevour to support your preparation for competitive exams, the compilation made by the team has put in hours quality time in matching the standard. The team hopes the collection below comes in really handy when you need it most.
1. Dutt Committee was related to which of the following?
[A] Industrial licensing
[B] Tax Reforms
[C] PSU disinvestment
[D] Cash Credit Systems
Correct Answer: [Industrial licensing]
2. Which among the following method includes planning process and plan implementation to the grass root levels?
[A] Totalitarian Planning
[B] Democratic Planning
[C] Indicative Planning
[D] Decentralized Planning
Correct Answer: [Decentralized Planning]
3. Interest Rate Policy is a part of which of the following?
[A] Fiscal Policy
[B] Monetary policy
[C] Industrial Policy
[D] All the above
Correct Answer: [Monetary policy]
4. The portion of total deposits of a commercial bank which it has to keep with itself in the form of liquid assets is called ___?
[A] Statutory Liquidity Ratio
[B] Cash Reserve Ratio
[C] Statutory Reserve Ratio
[D] Cash ratio
Correct Answer: [Statutory Liquidity Ratio]
5. In which five-year plan self-reliance as an object of planning was emphasized?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Third Five Year Plan
[D] Fourth Five Year Plan
Correct Answer: [Fourth Five Year Plan]
6. Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?
[A] The cash resources at the disposal of the commercial banks increase.
[B] The cash resources at the disposal of the commercial banks get diminished.
[C] The cash resources of the commercial banks remain unchanged.
[D] None of the above
Correct Answer: [The cash resources at the disposal of the commercial banks get diminished.]
7. Birth rate is number of births per ………….of the population during one year.
[A] 100
[B] 1000
[C] 10000
[D] 100000
Correct Answer: [1000]
Explanation: Births are usually measured using the birth rate i.e. the number of live births per 1,000 people. Deaths are usually measured using the death rate i.e. the number of deaths per 1,000 people. Migrations is the movement of people in and out of an area. Births and deaths are the natural causes of population change. The difference between the birth rate and the death rate of a country is called the natural growth rate.
8. Which among the following has the function of recommending Minimum Support Prices for various commodities to the Government?
[A] National Farmers Commission
[B] Agriculture Cost & Price Commission
[C] Central Statistical Organization
[D] Department of Agriculture
Correct Answer: [Agriculture Cost & Price Commission]
9. In which year Bombay Stock Exchange was established?
[A] 1865
[B] 1875
[C] 1880
[D] 1890
Correct Answer: [1875]
10. In an inflationary trend, the pricing of the bank products is:
[A] At increasing trend
[B] At decreasing trend
[C] No relevance of Inflation
[D] Constant
Correct Answer [At increasing trend]
11. The rate at which RBI purchases or rediscounts bills of exchange of commercial banks is called?
[A] Repo rate
[B] Reverse repo rate
[C] Bank rate
[D] Base rate
Correct Answer: [Bank rate]
Explanation: Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks, development banks etc. Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate. Bank rate is used as a signal by the RBI to the commercial banks on RBI’s thinking of what the interest rates should be.
Bank Rate and Repo Rate seem to be similar terms because in both of them RBI lends to the banks. However, Repo Rate is a short-term measure and it refers to short-term loans and used for controlling the amount of money in the market. On the other hand, Bank Rate is a long-term measure and is governed by the long-term monetary policies of the RBI. In broader term, bank rate is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. RBI uses this tool to control the money supply.
12. In which year, “20 Point Programme” was initiated for the first time in India?
[A] 1972
[B] 1975
[C] 1976
[D] 1978
Correct Answer: [1975]
Explanation: The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975 and was subsequently restructured in 1982 and again on 1986. With the introduction of new policies and programmes it has been finally restructured in 2006 and it has been in operation at present. The Programmes and Schemes under TPP-2006 are in harmony with the priorities contained in the National Common Minimum Programme, the Millennium Development Goals of the United Nations and SAARC Social Charter. The restructured Programme, called Twenty Point Programme – 2006 (TPP-2006), was approved by the Cabinet on 5th October, 2006 and operated w.e.f.
13. In which year, Planning Commission was established in India?
[A] 1950
[B] 1951
[C] 1952
[D] 1955
Correct Answer: [1950]
Explanation: Planning Commission was set up by a Government of India Resolution in 1950 as an advisory and specialized institution. It was charged with the responsibility to formulate a strategy of development for independent India in a long-term perspective and for making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources and determining priorities.
14. Agricultural Income Tax revenue goes to which of the following governments in India?
[A] State Governments
[B] Central Government
[C] Collected by State Governments, delivered to Central Government
[D] Collected by Central Government, delivered to State Governments
Correct Answer: [State Governments]
Explanation: The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods.
The state governments are vested with the power to tax agricultural income, land and buildings, sale of goods (other than inter-state), and excise on alcohol. Local authorities such as Panchayat and Municipality also have power to levy some minor taxes.
15. For which among the following kinds of offenses, COFEPOSA was enacted in 1970s?
[A] Terrorism Activities
[B] Religious Offenses
[C] Economic Offenses
[D] International Offenses
Correct Answer: [Economic Offenses]
Explanation: Economic Offenses, Conservation of Foreign exchange and Prevention of Smuggling Activities (COFEPOSA) was enacted in 1974.
16. Which of the following is an example of passive investment instrument?
[A] Mutual Funds
[B] Gold ETFs
[C] Stocks
[D] Preference shares
Correct Answer: [Gold ETFs]
Explanation: Gold ETFs are passive investment instruments that are based on price movements and investments in physical gold.
17. Which of the following is/are Money Market Instruments?
[A] Treasury Bills
[B] Commercial Papers
[C] Certificate of Deposits
[D] All of the above
Correct Answer: [All of the above]
Explanation: Money market securities are debt issues with maturities of one year or less. Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
18. Which of the following is not a traditional Rabi crop in India?
[A] Chick pea
[B] Mustard
[C] Pigeon Pea
[D] Wheat
Correct Answer: [Pigeon Pea]
Explanation: Pigeon pea or Toor Dal is a traditionally Kharif crop sown in June-July with onset of monsoon in various agro-climatic zones in India. Others are Rabi crops.
19. Export of which of the following is an Invisible Export?
[A] Services
[B] Prohibited goods
[C] Unrecorded goods
[D] Goods through smuggling
Correct Answer: [Services]
Explanation: Any export that does not have a tangible physical presence (e.g. expertise, insurance underwriting). Here, Invisible Export means export of Services.
20. The GST council has decided a four-tier structure of taxation to cover most goods and services. Which of the following is a correct group of these four tiers?
[A] 5%, 10%, 15% and 20%
[B] 5%, 12%, 18% and 22%
[C] 5%, 12%, 18% and 28%
[D] 5%, 13%, 18% and 32%
Correct Answer: [5%, 12%, 18% and 28%]
Explanation: The GST Council has decided on a four-tier tax structure of 5%, 12%, 18% and 28% to cover most goods and services. Apart from this, a cess will be levied on demerit and luxury goods on top of the peak rate. This cess will be used to create a fund and this fund will be used to compensate the states which face loss of revenue due to GST implementation.
21. Which among the following is the main feature of Democratic planning?
[A] Inducement
[B] Government
[C] Direction
[D] Flexibility
Correct Answer: [Flexibility]
22. High Powered Committee under the Chairmanship of Dr. D.R. Mehta, which was constituted in 1993 was related to which of the following?
[A] Financial Sector Reforms
[B] Tax Reforms
[C] Education Reforms
[D] Integrated Rural Development Programme
Correct Answer: [Integrated Rural Development Programme]
23. Which among the following is not a power of RBI?
[A] inspection of banks
[B] Nationalization of Banks
[C] Call of returns
[D] Control the lending policies of the banks
Correct Answer: [Nationalization of Banks]
24. To avail the benefits under the ‘mahila sammriddhi Yojna’ a women has to open an account with which of the following?
[A] Rural Cooperative bank
[B] Rural Post Office
[C] Commercial bank
[D] Private Bank
Correct Answer: [Rural Post Office]
25. In a bid to introduce competitive bidding for allocation of coal blocks and benefit consuming industries, the government will soon replace the Mines and Minerals Development Regulation Act. In which year this act was enacted?
[A] 1951
[B] 1952
[C] 1955
[D] 1957
Correct Answer: [1957]
26. Gender Empowerment Measure (GEM) is one of the five indicators used by the United Nations Development Programme in its annual Human Development Report. It includes which of the following?
[A] political participation and decision making
[B] economic participation and decision making
[C] power over economic resources
[D] All the above
Correct Answer: [All the above]
27. Which among the following is not correctly matched? (largest Producer states)?
[A] Groundnut – Gujarat
[B] Sugarcane – Uttar Pradesh
[C] Jute – West Bengal
[D] Wheat – Punjab
Correct Answer: [Wheat – Punjab]
Explanation: maximum quantity of Wheat is produced by Uttar Pradesh followed by Punjab and Haryana. Together they grow 80 % wheat of India.
28. Many a times we read about “Circuit Breakers” in share markets. They are temporary measures which halt the trading on which of the following occasion?
[A] On special days
[B] When a new share is traded for the first time
[C] When the prices of particular stock’s) rises or falls by a specified amount in specified time
[D] When trading of a particular stock(s) rises beyond a specified volume
Correct Answer: [When the prices of particular stock’s) rises or falls by a specified amount in specified time]
29. Which among the following is the standard map projection for nautical purposes (suitable for showing sea routes)?
[A] Mercator projection
[B] Cassini projection
[C] Gnomonic projection
[D] Polyconic Projection
Correct Answer: [Mercator projection]
30. Which among the following is a Bank rate?
[A] the rate at which a commercial Bank lends to its customers
[B] the rate at which a commercial Bank lends to its best customers
[C] the rate at which a central Bank lends to commercial Banks
[D] the rate at which a Commercial Bank lends to Central bank
Correct Answer: [the rate at which a central Bank lends to commercial Banks]
31. An investor or speculator who subscribes to a new issue with the intention of selling them soon after allotment to realize a quick profit is called?
[A] Stag
[B] Tall
[C] Bull
[D] Bear
Correct Answer: [Stag]
32. For ensuring easier exit of the sick units the government has proposed a policy called EXIT POLICY 1992. Why this committee was not implemented?
[A] Opposition from Trade Unions
[B] Economic revival
[C] Pressure from the Opposition
[D] Liberalization of economy
Correct Answer: [Opposition from Trade Unions]
33. The maximum number of which of the following in India is owned by Public Sector?
[A] Textile Units
[B] Oil Refineries
[C] Sugar mills
[D] Software Units
Correct Answer: [Oil Refineries]
34. In which five year plan the Khadi and Village Industries Commission was launched?
[A] 1st
[B] 2nd
[C] 3rd
[D] 4th
Correct Answer: [2nd]
Explanation: Second Plan, April 1957, it took over the work of former All India Khadi and Village Industries Board.
35. For which of the commodities the unit bpd is used in international trade?
[A] Meat & Livestock
[B] Precious Metals
[C] Industrial metals
[D] Crude oil
Correct Answer: [Crude oil]
Explanation: It is a barrel per day, amount of crude oil (measured in barrels) produced or consumed by an entity in one day. One barrel 42 gallons.
36. In which of the five-year plan in India, the concept of Financial Inclusion was included for the first time?
[A] 8th Five Year Plan
[B] 9th Five Year Plan
[C] 10th Five Year Plan
[D] 11th Five Year Plan
Correct Answer: [11th Five Year Plan]
37. In which year Govt. of India has launched National Meat and Poultry Processing Board?
[A] 2005
[B] 2006
[C] 2007
[D] 2009
Correct Answer: [2009]
Explanation: The Government of India launched a National Meat and Poultry Processing Board, an autonomous body on 19th Feb 2009.
38. In which year NABARD incepted the scheme of Rural Infrastructure Development Fund for providing soft loans to States for Rural development?
[A] 1991
[B] 1994
[C] 1997
[D] 1999
Correct Answer: [1994]
39. Which among the following plan document has a subtitle” Inclusive growth”?
[A] 10th Five-year Plan
[B] 11th Five-year Plan
[C] National Solar Mission
[D] Bhart Nirman
Correct Answer: [11th Five-year Plan]
40. Nehru Rozgar Yojana was launched to tackle the menace of which of the following?
[A] Bonded Labour
[B] Rural Poverty
[C] Urban Poverty
[D] Both Rural & Urban Poverty
Correct Answer: [Urban Poverty]
41. On which birth anniversary of Mahatma Gandhi, NREGA was renamed as MNREGA by Cabinet of India?
[A] 125th
[B] 130th
[C] 135th
[D] 140th
Correct Answer: [140th]
42. What will be the ultimate impact on the poor and landless farmers if all of a sudden, government decides to raise the Minimum Support Prices of rice & food grains inexorably or excessively?
[A] The poor farmers become rich
[B] The markets will crash
[C] The poor farmers will become poorer
[D] This will encourage the exports of rice and food grains
Correct Answer: [The poor farmers will become poorer]
43. In which year Market Access Initiative (MAI) scheme was launched?
[A] 2001
[B] 2003
[C] 2005
[D] 2007
Correct Answer: [2003]
44. Which of the following IT companies had to cease its India operations in 1970s in the wake of the FERA restrictions and which reestablished itself only after 1992 when Economic Liberalization in India took place?
[A] Oracle
[B] IBM
[C] IBS Software Services
[D] Dell
Correct Answer: [IBM]
45. Which among the following sector contributes maximum to GDP in India?
[A] Primary sector
[B] Secondary Sector
[C] Tertiary sector
[D] Quaternary sector
Correct Answer: [Tertiary sector]
46. For how many industries the Industrial licensing was abolished after Economic Reforms in India?
[A] 18 industries
[B] 25 industries
[C] 50 industries
[D] All Industries except 18
Correct Answer: [All Industries except 18]
47. In context with the financial markets, which among the following is not allowed at present in India?
[A] currency futures
[B] interest rate futures
[C] credit default swaps (CDS)
[D] Commodity future
Correct Answer: [credit default swaps (CDS)]
48. Which among the following phrases generally denotes National Income?
[A] Gross National Product at Market Prices
[B] Net National Product at Market Prices
[C] Gross National Product at Factor Cost
[D] Net National Product at Factor Cost
Correct Answer: [Net National Product at Factor Cost]
49. Which among the following body in India requires to protect the interests of consumers against anti-competitive practices of all market entities?
[A] National Consumer Forum
[B] Competition Commission of India
[C] National Consumer Disputes Redressal Commission
[D] Central Vigilance Commission
Correct Answer: [Competition Commission of India]
Explanation: The Competition Commission of India (CCI) was set up to replace the anachronistic Monopolies and Restrictive Trade Practices Commission (MRTPC). It was established to eliminate practices that adversely affect competition in different industries/areas and protect interests of consumers and ensure freedom of trade. The Competition Act of 2002 called for the creation of CCI. However, it was established in 2003 and became fully functional only by 2009. The CCI is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. It has one chairman and six members. It is the youngest and the only cross-sector regulator in India.
50. Which among the following is one among the five indicators used by the United Nations Development Programme in its annual Human Development Report for Gender related standard of living?
[A] Gender Development Index
[B] Gender Empowerment Index
[C] Gender Empowerment Measure
[D] Gender Parity Index
Correct Answer: [Gender Development Index]
51. As per norms, a domestic airline needs to complete how many years of domestic operations to be eligible for International Operations?
[A] 2 years
[B] 3 years
[C] 5 years
[D] 7 years
Correct Answer: [5 years]
52. Which among the following is the most important determinant of the size of the market in an economy?
[A] Population
[B] Cost of transport
[C] Infrastructure
[D] Productivity
Correct Answer: [Productivity]
53. How many number of Precision Farming Development Centres (PFDCs) are present in Inidia?
[A] 20
[B] 22
[C] 25
[D] 30
Correct Answer: [22]
Explanation: Government has established 22 Precision Farming Development Centres (PFDCs) in the country. These PFDCs are working on various plasticulture applications and precision farming practices and providing technical support to the respective State Governments. These PFDCs are also working with farmers and creating awareness among them about latest cultivation practices through training and awareness programmes and camps.
54. Which among the following programme was the brainchild of National Advisory Council of UPA government?
[A] Pradhan Mantri Gram Sadak Yojna
[B] National Literacy Mission
[C] National Rural Employment Guarantee Act
[D] New Pension Scheme
Correct Answer: [National Rural Employment Guarantee Act]
55. Which of the following Five-year Plans set the lowest growth target?
[A] 1st
[B] 2nd
[C] 3rd
[D] 4th
Correct Answer: [1st]
56. Which among the following sector of Indian Economy is maximum dependent on economic developments in advanced nations?
[A] Manufacturing Sector
[B] Agricultural Sector
[C] Mining Sector
[D] Service Sector
Correct Answer: [Service Sector]
57. Which among the following commission was set up in March 1950?
[A] The Election Commission
[B] The Union Public Service Commission
[C] The Finance Commission
[D] The Planning Commission
Correct Answer: [The Planning Commission]
58. Which of the following statements/ situation indicates a better welfare due to rising per capita income?
[A] The per capita income increases with no change in overall income distribution
[B] The per capita income increases with change in the income distribution in favor of the Rich
[C] The per capita income increases with change in the income distribution in favor of the Poor
[D] The per capita income increases with change in the income distribution in favor of the Industrial Labor
Correct Answer: [The per capita income increases with change in the income distribution in favor of the Poor]
59. Under which of the following Ministries of Government of India works the Forward Markets Commission?
[A] Ministry of Corporate Affairs
[B] Ministry of Finance
[C] Ministry of Heavy Industries and Public Enterprises
[D] Ministry of Consumer Affairs, Food and Public Distribution
Correct Answer: [Ministry of Consumer Affairs, Food and Public Distribution]
60. Who among the following will be benefited by Deflation?
[A] Salary Earners
[B] pensioners
[C] Equity Holders
[D] Debtors
Correct Answer: [Salary Earners]
61. Approximately, what fraction of market capitalization of the Bombay Stock Exchange is accounted by the 30 stocks of the BSE SENSEX?
[A] 10%
[B] 20%
[C] 30%
[D] 40%
Correct Answer: [20%]
62. A public sector company wishes to bring a Public issue. Which among the following is the first authority to get an approval to be able to do so?
[A] Ministry of Finance
[B] Ministry of Commerce & Industry
[C] Cabinet Committee on Economic Affairs
[D] Reserve bank of India
Correct Answer: [Cabinet Committee on Economic Affairs]
63. From which of the following country, India imports maximum amount of Tea?
[A] China
[B] Kenya
[C] Nepal
[D] Bangladesh
Correct Answer: [Nepal]
64. In which year Indian Railway was nationalized?
[A] 1947
[B] 1950
[C] 1952
[D] 1955
Correct Answer: [1950]
65. Which among the following sector uses maximum commercial energy in India?
[A] Household sector
[B] Agriculture
[C] Industries
[D] Transport
Correct Answer: [Industries]
66. Who among the following was the architect of second five-year plan?
[A] Jawahar Lal Nehru
[B] C D Deshmukh
[C] P C Mahalanobis
[D] Subimal Datt
Correct Answer: [P C Mahalanobis]
67. Economic Planning comes under which of the following lists?
[A] Union List
[B] Concurrent list
[C] State List
[D] None of them
Correct Answer: [Concurrent list]
68. Which of the following Union Territories are included in the National Horticulture Mission?
[A] Andaman & Nicobar Island and Pondicherry
[B] Andaman & Nicobar Island & Lakshadweep
[C] Andaman & Nicobar Island and Daman & Diu
[D] Andaman & Nicobar Island and Pondicherry & Lakshadweep
Correct Answer: [Andaman & Nicobar Island and Pondicherry & Lakshadweep]
69. Which among the following correctly describes the decreasing order of use of natural Gas in India?
[A] Power Generation >Industrial Fuel >Fertilizers >Captive Use
[B] Power Generation >Fertilizers>Industrial Fuel >Captive Use
[C] Fertilizers>Power Generation>Industrial Fuel >Captive Use
[D] Fertilizers>Power Generation>Captive Use >Industrial Fuel
Correct Answer: [Power Generation >Fertilizers>Industrial Fuel >Captive Use]
70. Which among the following is India’s first broad based benchmark of the Indian capital market?
[A] Nifty
[B] Defty
[C] S&P; CNX 500
[D] CNX PSE Index
Correct Answer: [S&P; CNX 500]
71. Which of the following Union Territories are included in the National Horticulture Mission?
[A] Andaman & Nicobar Island and Pondicherry
[B] Andaman & Nicobar Island & Lakshadweep
[C] Andaman & Nicobar Island and Daman & Diu
[D] Andaman & Nicobar Island and Pondicherry & Lakshadweep
Correct Answer: [Andaman & Nicobar Island and Pondicherry & Lakshadweep]
72. Pakistani Economist Mahbub-ul-Haq is best known for which of the following?
[A] Rural Credit
[B] Human Development Report
[C] Nobel Memorial Prize in Economic Sciences
[D] World Development Report
Correct Answer: [Human Development Report]
73. Which among the following scheme was NOT started in the Eighth Five Year Plan?
[A] Members of parliament Local Area Development
[B] Scheme for Infrastructural Development in Mega Cities
[C] Mahila Samridhi Yojna
[D] Jawahar Rozgar Yojana
Correct Answer: [Jawahar Rozgar Yojana]
Explanation: Jawahar Rozgar Yojana was started in 7th plan.
74. Which among the following industry has been traditionally called a “Child of Protection”?
[A] Textile Industry
[B] Cement Industry
[C] Sugar Industry
[D] Petroleum Industry
Correct Answer: [Sugar Industry]
75. Who among the following was the chairman of All-India Rural Credit Review Committee (1969)?
[A] A. Ghosh
[B] B. Venkatappiah
[C] C. Janakiraman
[D] D. Jalan
Correct Answer: [B. Venkatappiah]
76. Who among the following are the beneficiaries of the MAFALDA?
[A] Landless Laborers
[B] Jobless Youth
[C] Small Industries
[D] Small and Marginal Farmers
Correct Answer: [Small and Marginal Farmers]
77. The most active segment of the Money Market in India is which one of the following?
[A] Call Money / Notice Money Market
[B] Repo / Reverse Repo
[C] Commercial Paper (CP)
[D] Certificate of Deposit (CD)
Correct Answer: [Call Money / Notice Money Market
Explanation: Call Money / Notice Money Market is the most active segment of the money market in India.
78. How many states of India are covered under the National Horticulture Mission?
[A] 14
[B] 16
[C] 18
[D] 20
Correct Answer: [18]
79. Approximately what fraction of India’s trade by volume is moved by sea?
[A] 70%
[B] 80%
[C] 90%
[D] 95%
Correct Answer: [95%]
80. In which year, nationalization of India’s first joint sector project, Air India was done?
[A] 1953
[B] 1955
[C] 1956
[D] 1962
Correct Answer: [1953]
Explanation: Nationalization of Air India was done in 1953.
81. At the time of independence, Indian rupee was divided into how many annas, paise and pies?
[A] 16 Anna, 64 Paise, 128 pies
[B] 16 Anna, 48 Paise, 192 pies
[C] 16 Anna, 64 Paise, 256 Pies
[D] 16 Anna, 64 Paise, 192 Pies
Correct Answer: [ 16 Anna, 64 Paise, 192 Pies]
During last years of British Raj and initial years of independence, Rupee was divided into 16 annas. Each anna was worth of 4 paise or 12 pies. So, one rupee was equal to 16 annas, 64 paise and 192 pies.
82. At the time of independence, Indian Rupee was pegged to British Pound. At that time, one Pound was equal to__?
[A] 7 Rupees
[B] 10 Rupees
[C] 13 Rupees
[D] 17 Rupees
Correct Answer: [ 13 Rupees]
Between 1927 and 1966, Indian Rupee was pegged to British Pound and its value was 13 rupees = 1 pound. This arrangement continued until 1966 when the rupee was devalued and pegged to the U.S. dollar at a rate of 7.5 rupees = 1 dollar. This value remained there until the U.S. dollar devalued in 1971.
83. Which of the following rulers introduced & Rupee & in India?
[A] Akbar
[B] Alauddin Khilji
[C] Shershah Suri
[D] Shah Jahan
Correct Answer: [Shershah Suri]
Explanation: A currency which was named Rupee was first issued by Sultan Sher Shah Suri in the 16th century.
84. Which of the following agricultural commodity of India gives largest in terms of export value?
[A] Tea
[B] Basmati Rice
[C] spices
[D] cotton
Correct Answer: [Basmati Rice]
85. The National Mission for Saffron has been launched as a subscheme of which among the following programmes?
[A] National Food Security Mission
[B] National Horticulture Mission
[C] Rashtriya Krishi Vikas Yojana
[D] National Cash Crop Programme
Correct Answer: [Rashtriya Krishi Vikas Yojana]
86. Which among the following is not an indirect tax?
[A] Corporation Tax
[B] Service Tax
[C] Custom Duty
[D] Excise duty
Correct Answer: [Corporation Tax]
87. Which among the following industry generates invisible exports?
[A] Fishing
[B] Travel & Tourism
[C] Jewellery
[D] Handicrafts
Correct Answer: [Travel & Tourism]
88. Economic growth is normally coupled with?
[A] Inflation
[B] Hyper Inflation
[C] Deflation
[D] Stagflation
Correct Answer: [Inflation]
89. The Government has launched the UDYAMI helpline for which among the following?
[A] Large capital Industries
[B] Female entrepreneur
[C] Farmers introducing technology in Farming
[D] Micro, small & medium size enterprises
Correct Answer: [Micro, small & medium size enterprises]
90. The investment in Plant & Machinery up to which among the following amounts in India is called a Tiny Unit in India?
[A] Rs. 5 Lakh
[B] Rs. 10 Lakh
[C] Rs. 15 Lakh
[D] Rs. 25 Lakh
Correct Answer: [Rs. 25 Lakh]
Explanation: Please note that today, the units where investment in Plant & Machinery is up to Rs. 25 lakh is called a `Tiny Enterprise`, irrespective of the location of the unit. This change was based upon the recommendation of Abid Hussain Committee.
91. The competitive devaluation by the countries would badly affect which among the following?
[A] Exporters
[B] Importers
[C] Traders
[D] Service Providers
Correct Answer: [Exporters]
Explanation: When competitors devalue their respective currencies, domestic exporters tend to lose out on the price advantage on their exportable as buyers prefer to buy from a cheaper currency. This in turn hurts income as well as the jobs in the export sector and the prospects for the economy. The central bank at such times tries to intervene & buy dollars and create an artificial demand for the dollar, devaluing the value of the rupee in the process and retain some price advantage for the exporter. But buying dollars involves a fiscal cost as the central bank has to pump in equivalent amounts of rupees and again mop it up by selling bonds. These bonds need to be serviced by the government. This would in turn worsen the fiscal position.
92. There are some stocks in the stock market which by nature are low-priced, speculative and risky because of their limited liquidity, following and disclosure. What do we call these stocks?
[A] Green Stock
[B] Penny Stock
[C] Concentrated Stock
[D] Microcap stock
Correct Answer: [Penny Stock]
93. The common international poverty line is based on an income of around___?
[A] $1.00 per day at the 2004 purchasing power parity
[B] $1.25 per day at the 2005 purchasing power parity
[C] $1.25 per day at the 2007 purchasing power parity
[D] $1.25 per day at the 2008 purchasing power parity
Correct Answer: [$1.25 per day at the 2005 purchasing power parity]
94. “Income generated from Tourism” can be placed in which among the following?
[A] Invisible Import
[B] Invisible Export
[C] Visible Import
[D] Visible Export
Correct Answer: [Invisible Export]
95. National Rural Livelihood Mission aims to ensure that at least one member from each identified rural poor household, preferably a woman, is brought under the which among the following networks / schemes / facilities in a time bound manner?
[A] MGNREGA
[B] Self Help Groups
[C] Financial Inclusion
[D] Food Security
Correct Answer: [Self Help Groups]
96. The General Anti Avoidance and Thin Capitalization Rules to combat illicit transfer of money and assets abroad through complex financial arrangements and instruments, have been incorporated as a part of which among the following?
[A] Foreign Exchange Management Act, 1999 (FEMA)
[B] Prevention of Money Laundering Act, 2002 (PMLA)
[C] Direct Taxes Code Bill
[D] Income tax Act 1961
Correct Answer: [Direct Taxes Code Bill]
97. The term “Golden Revolution” is most closely related to which of the following missions?
[A] National Solar Mission
[B] National Horticulture Mission
[C] National Mission on Clean Coal Technologies
[D] National Bamboo Mission
Correct Answer: [National Horticulture Mission]
98. Various sections of Income Tax Act such as Section 80C, 80CCC and 80CCD give tax deduction up to Rs. 1 Lakh in lieu of investments in various saving instruments. In this context, Investment in which among the following will allow a person additional tax deduction apart from this limit of Rs 1 lakh?
[A] Provident Fund (PF) & Voluntary Provident Fund (VPF)
[B] Equity Linked Savings Scheme (ELSS)
[C] National Savings Certificate (NSC)
[D] Long Term Infrastructure Bonds
Correct Answer: [Long Term Infrastructure Bonds]
99. In context with the Balance of Payments, the Merchandise exports, which refer to sale of goods abroad belong to which among the following?
[A] Credit Entry in the Current Account
[B] Debit Entry in the Current account
[C] Credit entry in the Capital Account
[D] Debit entry in the Capital Account
Correct Answer: [Credit Entry in the Current Account]
100. What is the Value Added Tax (VAT)?
[A] A single tax that replaces State Taxes like surcharge, turnover tax, etc.
[B] A simple, transparent, easy to pay tax imposed on consumers.
[C] A new initiative taken by the government to increase the tax burden of high-income groups.
[D] A new tax to be imposed on the producers of capital goods.
Correct Answer: [A single tax that replaces State Taxes like surcharge, turnover tax, etc.]