I.D.B.I. Assistant Manager Exam., 2010

General and Financial Awareness

(Exam Held on 14-11-2010)

1. The present Cash Reserve Ratio is—
(A) 5%
(B) 5•5%
(C) 6%
(D) 6•5%
(E) None of these
Ans : (C)

2. One of the objectives of KYC (Know Your Customer) norms is—
(A) to give boost to bank deposits
(B) to safeguard banks advances
(C) to monitor transactions of suspicious nature
(D) to help income tax authorities to collect income tax
(E) None of these
Ans : (C)

3. Contribution to Prime Minister's relief fund enjoys Income Tax benefit up to—
(A) 50% under section 80G
(B) 75% under section 80G
(C) 100% under section 80 G
(D) 100% under section 88
(E) No exemption is available
Ans : (C)

4. Which of the following activities are expected to be performed by the Business correspondents ?
(A) Disbursal of small value credit
(B) Collection of small value deposits
(C) Sale of micro insurance /mutual fund products
(D) All the three above
(E) Only (B) and (C) above
Ans : (E)

5. Tax at source by banks is deducted on interest paid on term deposits in the interest amount in a financial year exceeds—
(A) Rs. 3,000
(B) Rs. 5,000
(C) Rs. 10,000
(D) Rs. 15,000
(E) There is no such provision
Ans : (B)


6. Securitisation and Reconstruction of Financial Assets and Enforcement of security Interest Act relates to—
(A) Sanction of loans
(B) Enhancement of loan limits
(C) Recovery of loans
(D) All the above
(E) None of above
Ans : (C)

7. MSMED Act is applicable to—
(A) Smalls enterprises only
(B) Medium enterprises only
(C) Micro enterprises only
(D) Micro, Small and Medium enterprises
(E) All enterprises irrespective of their size engaged in manufacturing activity
Ans : (D)

8. Money Laundering refers to—
(A) Conversion of assets into cash
(B) Conversion of Money which is illegally obtained
(C) Conversion of cash into gold
(D) Conversion of gold into cash
(E) None of the above
Ans : (B)

9. The Monetary and Credit Policy is reviewed by the RBI after a gap of—
(A) one year
(B) one month
(C) two years
(D) five years
(E) None of these
Ans : (E)

10. PPF account is opened for a period of—
(A) 5 years
(B) 10 years
(C) 15 years
(D) 20 years
(E) None of these
Ans : (C)

11. Yuan is the currency of—
(A) Japan
(B) China
(C) Indonesia
(D) Myanmar
(E) None of these
Ans : (B)

12. National savings certificate matures at the end of—
(A) Six years
(B) Three years
(C) Six and half years
(D) Five years
(E) Five and half years
Ans : (A)

13. Normally Bank accept Fixed Deposits for a maximum period of—
(A) 5 years
(B) 3 years
(C) 10 years
(D) 20 years
(E) Any number of years
Ans : (E)

14. Code of banks commitment to Micro and Small enterprises is prepared by—
(A) RBI
(B) SEBI
(C) FEDAI
(D) BCSBI
(E) Ministry of Small and Medium Enterprises
Ans : (E)

15. Which one of the following is not a salient feature of debit card ?
(A) No bad debts to banks and no suits for recovery
(B) No interest earning for banks
(C) Works like a normal withdrawal
(D) All the above
(E) 45 dayes credit is given to the card holder
Ans : (E)

16. IFRS stands for—
(A) International Financial Reporting standards
(B) Indian Financial Rating Standards
(C) International Financial Rating Standards
(D) All the three above
(E) None of the above
Ans : (A)

17. What is the present Repo Rate ?
(A) 5%
(B) 5•5%
(C) 6%
(D) 6•5%
(E) None of these
Ans : (E)

18. There are certain financial instruments whose prices are derived from the price of the underlying currency of interest rate or stocks etc. These are known as—
(A) Derivatives
(B) Securitisation
(C) Leasing
(D) Factoring
(E) Venture Capital Funding
Ans : (A)

19. What is the full form of ASBA ?
(A) Allotment supported by Blocked Amount
(B) Application supported by Blocked Amount
(C) Application supported by Bank Amount
(D) Allotment supported by Bank Account
(E) None of the above
Ans : (B)

20. Reverse Repo is used by RBI to—
(A) Inject liquidity
(B) Absorb liquidity
(C) Increase the liquidity with banking system
(D) Keep the liquidity at one level
(E) None of the above
Ans : (D)

21. Which of the following is not considered as lending under infrastructure sector ?
(A) A Highway project
(B) Construction of Educational Institution
(C) Construction of Hospital
(D) Laying down of petroleum pipelines
(E) None of the above
Ans : (E)

22. KYC guidelines have been framed on the recommendations/as per guidelines of—
(A) Reserve Bank of India
(B) Ministry of Finance
(C) Indian Banks Association
(D) Financial Action Task Force
(E) Ministry of Home affairs
Ans : (A)

23. The term ‘Power of Attorney’ refers to—
(A) Power of a person
(B) An authority to operate a Bank account
(C) An instrument by which a person is empowered to act for another person
(D) All of the above
(E) None of the above
Ans : (C)

24. What is the amount of compensation to be paid per day, as per RBI directives in case of failed ATM transactions ?
(A) Rs. 50
(B) Rs. 100
(C) Rs. 200
(D) Rs. 500
(E) It is at the discretion of each Bank
Ans : (B)

25. Financial Action Task Force has an office in India at which place ?
(A) Mumbai
(B) Chennai
(C) Kolkata
(D) New Delhi
(E) All the above places
Ans : (D)

26. Bridge loans refer to—
(A) Loans granted to contruction companies for construction of bridges
(B) Loan granted to PWD for construction of bridges over Rivers
(C) Interim finance allowed by banks to their customers pending disbursement of term loans by financial institutions
(D) All of the above
(E) None of the above
Ans : (C)

27. Payment of Demand Draft can be stopped by—
(A) Payee
(B) Holder
(C) Purchaser
(D) All of these
(E) None of these
Ans : (A)

28. Can any one file an appeal against the order passed by the Banking Ombudsman ? If so who is the Appellate Authority ?
(A) The Chairman of concerned Bank
(B) The Deputy Governor RBI
(C) Governor of RBI
(D) Finance Minister
(E) None of the above
Ans : (B)

29. For which one of the following reasons, the Government has approved a plan to infuse Rs. 15,000 crore capital into PSBs ?
(A) To boost their lending capacity
(B) To maintain minimum CRAR as per Basel II norms
(C) To maintain NPA provision coverage ratio
(D) To strengthen the Balance Sheet of banks
(E) None of these
Ans : (A)

30. What is monetary policy transmission ?
(A) It refers to monetary policy of Central Bank
(B) It refers to fiscal policy of Government
(C) It refers to various channels through which the monetary policy of a Central Bank alters prices or output in the real economy
(D) It refers to various channels through which the fiscal policy of the Government alters prices or output in the real economy
(E) None of these
Ans : (C)

31. On which one of the following issue IMF has supported monetary policy of India ?
(A) Tightening of monetary policy
(B) Stimulus for agriculture sector
(C) Concessions for foreign investment
(D) Introduction of GST
(E) None of these
Ans : (A)

32. The advantage of convenience in credit card operations is for—
(A) Customer
(B) Members Establishments
(C) Banks
(D) All the above
(E) None of the above
Ans : (D)

33. Under provisions of which one of the following Acts, CAs/CS have been told to report all suspicious fund trasnfers ?
(A) RBI Act
(B) Banking Regulation Act
(C) Indian Companies Act
(D) Unlawful Activities (Prevention) Act
(E) None of these
Ans : (D)

34. Bancassurance is—
(A) an insurance scheme to insure bank deposits
(B) an insurance scheme exclusively for the employees of banks
(C) a composite financial service offering both bank and insurance product
(D) a bank deposits scheme exclusively for employees of insurance companies
(E) None of the above
Ans : (C)

35. In the term STRIPS, the first letter ‘S’ denotes—
(A) Separate
(B) Small
(C) Special
(D) Savings
(E) None of these
Ans : (A)

36. Which of the following organizations, provide credit history of the borrowers ?
(A) CIBIL
(B) SEBI
(C) RBI
(D) CRISIL
(E) IBA
Ans : (A)

37. Loans/advances to farmers is treated as—
(A) Personal Loans
(B) Priority Sector Loan
(C) Business Loan
(D) Corporate Loan
(E) None of these
Ans : (B)

38. Which one of the following Organisations maintains CRR ?
(A) RBI
(B) SEBI
(C) NABARD
(D) IBA
(E) None of these
Ans : (A)

39. When the loan is granted for purchase of white goods it is called—
(A) Consumption loan
(B) White goods loan
(C) Consumer durable loan
(D) All the above
(E) None of the above
Ans : (C)

40. Which one of the following is the objective of Mahatma Gandhi National Rural Employment Guarantee Act ?
(A) To provide 100 days employment to people in rural areas
(B) To provide employment to educated youth
(C) To provide employment under KVIC schemes
(D) To create more valuable rural assets
(E) None of these
Ans : (A)

41. Structure of Basel II is based on how many pillars ?
(A) Two
(B) Three
(C) Four
(D) Eight
(E) Six
Ans : (B)

42. With which one of the following ‘Channel Financing’ is associated ?
(A) Retail Lending
(B) Corporate Lending
(C) SME Lending
(D) Supply Chain Finance
(E) None of these
Ans : (D)

43. Expand the term FRBM—
(A) Financial Responsibility and Business Management
(B) Fiscal Responsibility and Business Management
(C) Financial Responsibility and Budget Management
(D) Fiscal Responsibility and Budget Management
(E) None of these
Ans : (D)

44. A customer can approach Banking ombudsman if he does not get satisfactory response to his grievance from the bank within how many days ?
(A) 10 days
(B) 20 days
(C) 8 days
(D) 30 days
(E) 60 days
Ans : (D)

45. Which one of the following country is in talks with EU and International Monetary Fund, to exit from debt crisis ?
(A) Spain
(B) Turkey
(C) Portugal
(D) Greece
(E) Finland
Ans : (D)

46. For achieving 8•5 percent GDP growth in fiscal 2010-11, which one of the following should be percent growth in farm sector ?
(A) 2•0
(B) 2•5
(C) 3•0
(D) 4•0
(E) None of these
Ans : (C)

47. According to a report submitted by IMF in its World Economic Outlook, which one of the following countries will have highest percent GDP growth rate in 2011 ?
(A) China
(B) India
(C) Brazil
(D) Russia
(E) None of these
Ans : (A)

48. Which one of the following has given ‘Aadhaar’ as its new brand name ?
(A) UIDAI
(B) Sports Ministry, GOI
(C) Ministry of Tourism, GOI
(D) NHAI
(E) None of these
Ans : (A)

49. Which of the following will help poor to come out of their poverty ?
1. Good Health Service
2. Freedom from illiteracy
3. Optimum Sex Ratio
(A) Only 1
(B) Only 2
(C) Only 1 and 2
(D) Only 3
(E) All 1, 2 and 3
Ans : (E)

50. Which one of the following is per cent Bank Rate ?
(A) 4.0
(B) 4.5
(C) 5
(D) 3.33
(E) None of these
Ans : (E)

Bank of India Probationary Officers Exam 2010

General Awareness (Held on 31-10-2010)
 
1. The Business Correspondence Model being adopted by the banks provides Banking facilities to which of the following ?
(A) Only Corporate borrowers
(B) Only Weaker sections the society and people of small villages
(C) Only those who are taking housing loans
(D) All (A), (B) and (C) above
(E) None of these
Ans : (B)

2. The concept of ‘Carbon Credit’ is associated with which of the following areas ?
(A) Protection of environment
(B) Women empowerment
(C) Development of rural infrastructure
(D) Development of coal mines
(E) None of these
Ans : (A)

3. As we all know Government is paying much attention to improve Public Distribution System (PDS) in our country. Which of the following have been the achievements of the PDS uptill now, owing to which Government wants to further improve it ?
[Pick up correct statement(s).]
1. After implementing PDS in India, no famine was reported. PDS was always there to give people at least the bare minimum to survive.
2. A drought of 1987 was worst in this century but PDS played a vital role in overcoming the drought.
3. Now PDS is feeding the poorest of the poor in this country.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1, 2 and 3 are correct
(E) None of these
Ans : (B)


4. Global Micro Credit Summit-2011 will be organized in which of the following countries ?
(A) Britain
(B) South Africa
(C) Spain
(D) Italy
(E) None of these
Ans : (C)

5. Many times we read about SHGs in financial newspapers. What is the full form of the term ?
(A) Small Help Groups
(B) Self Help Groups
(C) Small Hope in Growths
(D) Self Hope Groups
(E) None of these
Ans : (B)

6. Whenever newspapers talk about the performance of core industries, which of the following is not considered among them ?
(A) Petroleum
(B) Automobile
(C) Mining
(D) Steel
(E) Cement
Ans : (B)

7. Which of the following agencies/organizations in India maintains the Micro Finance Development and Equity Fund which was in news recently ?
(A) Confederation of Industries in India (CII)
(B) Indian Bank’s Association (IBA)
(C) Small Industries Development Bank of India (SIDBI)
(D) Reserve Bank of India (RBI)
(E) National Bank for Agriculture and Rural Development (NABARD)
Ans : (D)

8. As per recent newspaper reports UK based Cairn Energy is in the process of selling its stake to which one of the following companies of Indian base ?
(A) ONGC Videsh
(B) Hindustan Petroleum Corporation Ltd.
(C) Vedanta Resources
(D) Posco India
(E) None of these
Ans : (C)

9. Which of the following bills presented in the Parliament will bring some changes in existing tax regime ?
(A) Direct Taxes Code (DTC) Bill
(B) Foreign Exchange Management Regulatory Bill
(C) Companies Act Bill
(D) Salaries and Perks for MPs Bill
(E) Finance Bill 2010-11
Ans : (A)

10. Under Indira Gandhi National Old Age Pension Scheme (IGNOAPS), the benefits are available to the people having minimum age of …….
(A) 50 years
(B) 55 years
(C) 65 years
(D) 60 years
(E) 70 years
Ans : (C)

11. Mr. Katsuya Okada who was on a visit to India few months back is the Foreign Minister of—
(A) South Korea
(B) Myanmar
(C) Japan
(D) Thailand
(E) None of these
Ans : (C)

12. Govt. of India has decided to review its Foreign Direct Investment Rules twice in a year. This will be done from—
(A) 2015
(B) 2012
(C) 2014
(D) 2011
(E) None of these
Ans : (E)

13. Many times we read about ‘Hawala’ transactions in newspapers. Hawala in India is prohibited under the provision of which of the following Acts ?
(A) Fiscal Responsibility and Budget Management Act
(B) Banking Regulation Act
(C) Financial action Task Force Act
(D) Foreign Exchange Management Act
(E) None of these
Ans : (D)

14. India recently reviewed its trade relation policy with Russia. What are the main exports from India to Russia ?
1. Pharmaceuticals
2. Apparel and Clothing
3. Tea and Coffee
(A) Only 1
(B) Only 2
(C) All 1, 2 and 3
(D) Only 2 and 3
(E) Only 1 and 2
Ans : (A)

15. As we all know DIPP is the nodal agency in the field of foreign investments in India. What is the full form of DIPP ?
(A) Department of Industrial Policy and Promotion
(B) Department of Industrial Procedures and Promotions
(C) Directorate of Industrial Procedures and Promotions
(D) Directorate of Industrial Policy and Publicity
(E) None of these
Ans : (A)

16. ‘Israel and Palestinians open talks’ was the headline in some major newspapers. As we all know both the nations were not coming for the talks since 2008. Which of the following is the main dispute between these two nations ?
(A) Membership of World Trade Organisation
(B) Membership of G-20
(C) Selecting Syria, one of the major trade partners by Israel. Palestine is dead against it
(D) Redefining the boundaries as a major glacier between them has erased the same
(E) None of these
Ans : (E)

17. Many times we read about the performance of Asian Markets in various financial newspapers. Which of the following is not included in Asian Market ?
(A) Japan
(B) China
(C) Hong Kong
(D) South Korea
(E) Brazil
Ans : (E)

18. As per the figures released by the World Bank, which of the following countries was the largest recipient of loans from the World Bank during 2009-10 ?
(A) Bangladesh
(B) Pakistan
(C) Brazil
(D) China
(E) India
Ans : (E)

19. Which of the following has been fixed as the target for fiscal deficit 2010-11 ?
(In terms of percentage of GDP)
(A) 3%
(B) 3•5%
(C) 4%
(D) 5%
(E) 5•5%
Ans : (D)

20. As per news in various newspapers ‘kfw’ Group released another instalment of its financial aid to India. kfw is an organization/bank based in—
(A) France
(B) Japan
(C) Italy
(D) China
(E) Germany
Ans : (E)

21. Which of the following countries has become the main supplier of Defence goods to India and has replaced Russia ?
(A) Canada
(B) USA
(C) Israel
(D) France
(E) None of these
Ans : (C)

22. As per existing policy, new foreign investments in manufacturing of which of the following is not allowed ?
(A) White cement
(B) Plastic goods
(C) Cigarette and Cigars
(D) Polythene bags
(E) Pesticides
Ans : (C)

23. The Mixed Double of which of the following Lawn Tennis tournaments was won by Leander Paes along with Cara Black in 2010 ?
(A) Wimbledon
(B) US Open
(C) Australia Open
(D) Dubai Open
(E) None of these
Ans : (C)

24. Which of the following is not amongst the Prime Minister’s new 15 point programme ?
(A) Enhanced Credit Support for economic activities
(B) Modernizing Madarsa Education
(C) Improvement in condition of slums inhabited by minorities
(D) Free train journey for unemployed youths
(E) Rehabilitation of victims of communal riots
Ans : (D)

25. The Summit of Shanghai Cooperation Organisation was held in June in which of the following places ?
(A) Shanghai
(B) Moscow
(C) Tashkent
(D) Astana
(E) None of these
Ans : (C)

26. India’s political relations with its neighbouring countries are a critical part of its …….
(A) Industrial policy
(B) Trade policy
(C) Foreign policy
(D) Development policy
(E) None of these
Ans : (C)

27. Which of the following organizations of Indian Origin is helping Sri Lanka in rehabilitation of its war widows ?
(A) Khadi and Village Commission
(B) SEWA
(C) Action for Food Production
(D) Adhar
(E) Aasha
Ans : (B)

28. Who amongst the following became the first Cricketer to take 800 wickets in Test Cricket ?
(A) Kumar Sangakkara
(B) Saqlain Mustaq
(C) Anil Kumble
(D) Muttiah Murlitharan
(E) None of these
Ans : (D)

29. Which of the following agencies/organizations has decided to make major changes for ULIPs ?
(A) IRDA
(B) RBI
(C) AMFI
(D) FRBI
(E) None of these
Ans : (A)

30. The 16th SAARC Summit was organized in Thimpu. The declaration of the Summit was named as—
(A) Towards Green and Happy South Asia
(B) Silver Jubilee of SAARC
(C) Let us meet again in Delhi
(D) SAARC : The Future of South Asia
(E) None of these
Ans : (B)

31. Which of the following is the name of the programme launched by the Govt. of India to help lonely women by providing vocational training to make them self dependent ?
(A) Apnalaya
(B) Prayas
(C) Abhiyogyata
(D) Swadhar
(E) Swawlamban
Ans : (D)

32. Which of the following terms is not used in the game of Cricket ?
(A) Doosra
(B) Century
(C) Bouncer
(D) Love
(E) Ashes
Ans : (D)

33. Which of the following countries won the Asia Cup Cricket Tournament 2010 held in Sri Lanka ?
(A) Sri Lanka
(B) India
(C) Pakistan
(D) Bangladesh
(E) None of these
Ans : (B)

34. Mr. James Alix Michael who was on a visit to India recently is the President of ……
(A) Australia
(B) New Zealand
(C) Colombia
(D) Seychelles
(E) None of these
Ans : (D)

35. Trupti Murgunde whose name was in news recently is a—
(A) Badminton player
(B) Golf player
(C) Lawn Tennis player
(D) Table Tennis player
(E) Cricket player
Ans : (A)

36. Which of the following is not a financial term ?
(A) Acid Test
(B) Double Fault
(C) Gross Profit
(D) Depreciation
(E) Cash flow
Ans : (A)

37. In the terms of economics, the recession occurring two times with a small gap in between is known as—
(A) Double Deflation
(B) Deflation
(C) Deep Recession
(D) Double Dip Recession
(E) None of these
Ans : (A)

38. Saina Nehwal was in Paris recently to play in World Championship. She lost her match against whom amongst the following players ?
(A) Le Chong Wei
(B) Shixian Wang
(C) Taufik Hidayut
(D) Jung Eun
(E) None of these
Ans : (E)

39. Union Cabinet recently cleared 15000 crore Sukhoi deal. Sukhoi is—
(A) Battle tank
(B) Fighter plane
(C) Submarine
(D) Radar system
(E) None of these
Ans : (B)

40. Who amongst the following is the recipient of the Rajiv Gandhi Khel Ratna Award-2010 announced recently ?
(A) Pankaj Adwani
(B) Leander Paes
(C) Sania Mirza
(D) M. S. Dhoni
(E) None of these
Ans : (C)

41. Which of the following terms is not used in Economics ?
(A) Balance of Payment
(B) Call Money
(C) National Debt
(D) Elasticity of Demand
(E) Boyle’s law
Ans : (E)

42. Which of the following ministries /departments operates the ‘Village Grain Bank’s Schemes’ ?
(A) Ministry of Tribal Welfare
(B) Department of Food and Public Distribution
(C) Department of Social Welfare
(D) Ministry of Forest
(E) None of these
Ans : (B)

43. Which of the following countries recently conducted general election and became the first Parliamentary Democracy of Central Asia ?
(A) Turkmenistan
(B) Uzbekistan
(C) Kyrgyzstan
(D) Kazakhstan
(E) None of these
Ans : (C)

44. Which of the following books is written by Chetan Bhagat ?
(A) The Golden Gate
(B) Journey to Ithaca
(C) Fore on the Mountain
(D) The inheritance of Loss
(E) 2 States : The Story of My Marriage
Ans : (E)

45. Which of the following nations is the recent one to join Non-Aligned Movement (NAM) ?
(A) Fiji
(B) Cuba
(C) Sri Lanka
(D) Colombia
(E) Egypt
Ans : (A)

46. Hiroshima Day is observed on which of the following dates ?
(A) 6th August
(B) 16th August
(C) 6th September
(D) 16th September
(E) 26th July
Ans : (A)

47. Who amongst the following is the Chairperson of the Human Right’s Commission of India at present ?
(A) Prof. M. S. Swaminathan
(B) Justice K. G. Balakrishnan
(C) Justice A. R. Lakshmanan
(D) Justice P. V. Reddi
(E) None of these
Ans : (B)

48. ‘Booker Prize’ is given in the field of ……
(A) Literature
(B) Social service
(C) Films
(D) Science
(E) Sports
Ans : (A)

49. Which of the following games/sports is not included in the list of Commonwealth Games 2010 ?
(A) Table Tennis
(B) Hockey
(C) Weight lifting
(D) Golf
(E) Boxing
Ans : (D)

50. Dronacharya Awards are given to a person associated with—
(A) Education
(B) Social service
(C) Journalism
(D) Sports
(E) Films
Ans : (D)

Maharashtra Gramin Bank Officers 2009 Solved Paper

GENERAL AWARENESS

1. The Govt. of India has taken a decision to open more IITs during the year 2008-09. These IITs will be in which of the following groups of States?
(A) Bihar,Rajasthan,Andhra Pradesh
(B) Andhra Pradesh,Orissa,Karnataka
(C) Karnataka,Tamilnadu,Kerala
(D) Uttar Pradesh,Madhya Pradesh,Bihar
(E) None of these
ANS (A)
2. Which of the following is /are NOT the highlights of the Union Budget 2008-09 ?
(1) A risk Capital fund is to be set up and maintained by one of the financial Institutes.
(2) Allocation for defence is reduced by 10% to make it Rs. 10,000 Crore.
(3) Several new scheme to be introduced for providing social security to the people in unorganized sectors.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1) & (2)
(E) All 1,2 & 3
ANS (B) The amount allocated for for defence in the budget 2008-09 is Rs. 105600 Crore which is higher than that in the Budget 2007-08.
3. To help farming community the Govt. of India has decided to raise the minimum support price of Paddy for current Kharif marketing season. What is that Price ?
(A) Rs. 800/quintal
(B) Rs. 900/quintal
(C) Rs. 950/quintal
(D) Rs. 1200/quintal
(E) none of these
ANS (D) The purchase price recommended by the CACP fOR The Crop Year 2008-09 for general category Rice is Rs. 1000 per quintal and for A- Grade is Rs. 1050 per quintal.
4. Wchich of the following is the correct definition of the term commercial paper ?
(1) It is nothing but the popular name of the judicial stamp papers used to register financial transactions.
(2) It is one of the instrument through which corporate raise debt from the market.
(3) It is the name of the “Certificate of Deposits” provided by the banks to its retail customers.
(A) Only (1)
(B) Only (2)
(C) Only (3)
(D) Both (1) & (2)
(E) All (1),(2) & (3)
ANS (B)
5. As per the Railway Budget 2008-09 the operating ratio of Railways is pitched at which of the following levels? Approximately—
(A) 70%
(B) 75%
(C) 98%
(D) 90%
(E) 81%
ANS (E) As per the Railway Budget 2008-09 the operating ratio of Railways is pitched at 81.4% .
6. As per the new figures released in recent past what has been the ratio of taxes to gross domestic product (Tax-GDP)in 2007-08 ? Approximately —
(A) 8%
(B) 9%
(C) 10-%
(D) 11.5%
(E) 12.5%
ANS (E)
7. Which of the following companies has got “Navratna Status” recently ?
(A) National Mineral Development Corporation (NMDC)
(B) National Textile Corporation (NTC)
(C) Maruti Udyog Ltd.
(D) IDBI Bnak Ltd.
(E) None of these
ANS (A)
8. Who amongst the following established the “Anandvan” a rehabilitation centre for Leprocy patients in Maharashtra ?
(A) Baba Amte
(B) Pandurang Shashtri Athawle
(C) Medha Patkar
(D) Asaram Bapu
(E) None of these
ANS (A)
9. Thaksin Shinawatra’s name is associated with which of the follwing countries ?
(A) Singapore
(B) Thailand
(C) North Korea
(D) Soth Korea
(E) None of these
ANS (B)
10. Who amongst the following agreed to supply aircraft carrier “Gorshkov” to India for its defense services ?
(A) Russia
(B) France
(C) Germany
(D) Italy
(E) None of these
ANS (A)
11. Bhupen Hazarika is the recipient of the life time achievement award and is provided the status of the cabinet minister . Which of the following Stae Govt. has honoured him in this manner ?
(A) Orissa
(B) Assam
(C) West Bengal
(D) Maharashtra
(E) None of these
ANS (B)
12. Who amongst the following is the recipient of the “Kishore Kumar Award” given by the Madhya Pradesh Govt. ?
(A) Shabana Azmi
(B) Amitabh Bachchan
(C) Manoj Kumar
(D) Dev Anand
(E) None of these
ANS (C)
13.The Under -19 Cricket world cup 2008 was won by which of the following contries ?
(A) Malysia
(B) India
(C) Pakistan
(D) Australia
(E) England
ANS (B) India defeated South Africa in the final match by seven runs.
14. Who amongst the following was the chief guest in India’s Republic Day Function ?
(A) Samak Sundaravej
(B) Gordon Brown
(C) Boris Tadic
(D) Nikolas Sarkozy
(E) None of these
ANS (E)
15. Who amongst the following is the recipient of Padma Vibhushan given away recently ?
(A) Anu Malik
(B) Shan
(C) Asha Bhosle
(D) Sonu Nigam
(E) None of these
ANS (C)
16. Which of the following Staes tops in primary ,upper primary education in India ?
(A) Tamilnadu
(B) Haryana
(C) Gujarat
(D) Kerala
(E) None of these
ANS (D)
17. The 11th five year paln wishes to raise the existing 2% growth in agriculture and allied activities to which of the following levels by the year 2012 ?
(A) 8%
(B) 6%
(C) 5%
(D) 4%
(E) None of these
ANS (D)
18. As a policy the Reserve Bank of India wishes to contain inflation at which of the following levels ?
(A) 5%
(B) 4.5%
(C) 4%
(D) 6%
(E) None of these
ANS (A)
19. World Day of Water is observed on which of the following days ?
(A) March 22
(B) February 22
(C) January 22
(D) May 22
(E) None of these
ANS (A)
20. Who amongst the following players has completed 16000 runs in One Day International Cricket matches recently ?
(A) Anil Kumble
(B) Rahul Dravid
(C) Saurav Ganguly
(D) Irfan Pathan
(E) Sachin Tendulkar
ANS (E)
21. Why was the name of Anatolyevic Medvedev in news recently ?
(A) He has taken over as the president of Russia
(B) He has taken over as the prime minister of Russia
(C) He is the new president of South Korea
(D) He is the new prime minister of South Korea
(E) None of these
ANS (A)
22. International Desert Festival 2008 was organized in February 2008 in —
(A) Bhuj Ganganagar
(B) Ganganagar
(C) Bikaner
(D) Jaisalmer
(E) None of these
ANS (D)
23. The first ever Youth Olympic Games are scheduled to be held in 2010. These games will be orgsnized in –
(A) Moscow
(B) New Delhi
(C) Beijing
(D) Quala Lumpur
(E) None of these
ANS (E) The first ever Youth Olympic Games are scheduled to be held in 2010 in Singapore.
24. Who amongst the following has taken over as the president of Serbia ?
(A) Raul castro
(B) Stefen Spielberg
(C) Boris Tadic
(D) Jose Manual Ramos Horta
(E) None of these
ANS (C)
25. The general election in Iran are due in 2008. Iran elects its parliament for a period of —
(A) 2 years only
(B) 3 years only
(C) 4 years only
(D) 5 years only
(E) 6 years only
ANS (C)
26. Luciana Aymar who aws adjudged the world hockey player 2007 is from which of the following countries ?
(A) Germany
(B) Argentina
(C) Italy
(D) Russia
(E) None of these
ANS (B)
27. which of the following State Government has decided to provide ownership rights to Tribal over forest land being cultivated by them since last 10 years ?
(A) Madhya Pradesh
(B) Uttar Pradesh
(C) Maharashtra
(D) Andhra Pradesh
(E) None of these
ANS (A)
28. Which of the following committees recommended the revival of Cooperative Credit Institutions in States ?
(A) Vaidyanathan Committee
(B) Rangrajan Committee
(C) Sachchar Committee
(D) Rakesh Mohan Committee
(E) None of these
ANS (A)
29. As we all know the Chinese economy is a booming economy and its export have played a significant role in it. What was the share of China’s Export as compared to its GDP in 2007 ?
(A) 20%
(B) 30
(C) 40%
(D) 50%
(E) None of these
ANS (C)
30. Delhi won the Ranji Trophy for the seventh time in January 2008 by defeating ——-
(A) Railways
(B) Haryana
(C) Mharashtra
(D) Guajarat
(E) Uttar Pradesh
ANS (E)
31. Gagan Nrang , who got a silver medal in an International Championship held in Munich,is a/an —
(A) 100 metre runner
(B) Badminton Player
(C) Chess Player
(D) Swimmer
(E) Air Fifle Shooter
ANS (E)
32. As per the decision taken by the Govt. of India two financial inclusion funds are set up with an overall corpus of Rs. 500 Crore each. These funds- financial inclusion fund and financial inclusion technology funds are to be set up by the initial contribution made by the –
(A) SIDBI,NABARD & UTI
(B) NABARD,UTI & RBI
(C) Govt. of India,NABARD & RBI
(D) SIDBI,Govt. of India & IDBI Bank
(E) None of these
ANS (C)
33. As per the Govt. Policy the provision of the subsidy for interest subvention to Coopeartive Sugar Mills is done by which of the following agencies/organizations ?
(A) Commission for Agriculture cost & price
(B) Nationa Bank for Agriculture & Rural Development
(C) Ministry of Agriculture
(D) Natioanl Commission on Farmers
(E) None of these
ANS (B)
34. Banks these days have launched a new scheme product known as “Reverse Mortage” . The scheme is designed keeping which of the following groups of society in consideration ?
(A) Youngers who have just started earning
(B) Defense personnel whose life is always at high risk
(C) Senior Citizen
(D) Women who do not have independent source of income
(E) None of these
ANS (C)
35. Which of the following countries is governed by the Norweigen-mediated ceasefire Agreement to end its dispute with a group of rebellions ?
(A) Nepal
(B) Myanmar
(C) Afghanistan
(D) Sri Lanka
(E) None of these
ANS (D)
36. As per the news report SEBI has allowed short selling by FIs/MFs from ist February,2008 . What is “Short Selling” ?
(1) Selling of shares that the seller does not own at the time of trading
(2) Selling of shares on the same day or on the day they were alloted to the trader.
(3) Selling of shares on a much lower price due to turbulent market situations
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1,2 & 3
(E) None of these
ANS (A)
37. Prime minister os India on his visit to China a few months back signed a detailed agreement with the sama. What is/are the major highlights of the agreement ?
(1) Both the countries agreed to continue high level exchange of views. Indian President is invited to China.
(2) India to host joint millitary exercise in 2008.
(3) India has decided to raise the issue of Tibet in UNO. China has agreed for the same.
(A) Only 1
(B) Only 2
(C) Both 1 & 2
(D) Only 3
(E) All 1,2 & 3
ANS (C)
38. As per the reports in the leading newspapers Securities & Exchange Board of India (SEBI) has asked the Mutual Fund Industry to stop “MISSELLING” their scheme to investors. What is misselling of Products ?
(1) Misselling takes place when mutual funds are sold without telling the likely returns.
(2) When agents sell the products without telling investors what are the risk involved in investing in mutual funds.
(3) When agents invest somebody’s money in mutual funds without their knowledge , it is called Misselling.
(A) Only 1
(B) Only 2
(C) Only 3
(D) All 1,2 & 3
(E) None of these
ANS (B)
39. The sensitive Index of the Bombay Stock Exchsange keeps on changing positively and negatively both. Which of the following is/are the main reasons which contributed for his sudden change in the same ?
(1) Higher GDP growth
(2) Continuous foreign funds flow
(3) High volume of forex reserves
(4) Only 1 Recession in USA
(A) Only 1 & 2
(B) Only 2 & 3
(C) Both 3 & 4
(D) Only 2
(E) All 1,2 ,3 & 4
ANS (B)
40. The USA , as reported in the leading newspapers is proceeding towards ‘recession’. What happens when an economy goes in the grip of ‘recession’?
(1) GDP growth slow down
(2) People lose their jobs
(3) Foreign exchange reserve goes up substantially as lot of loans/grants star pouring in .
(A) Only 1
(B) Only 2
(C) Only 3
(D) Both 1 & 2
(E) None of these
ANS (D)

UNION BUDGET 2011-12 RELATED QUESTIONS

1) Who presented the Union Budget 2011-12 in the Parliament on February 28, 2011?
a) Manmohan Singh b) Pratibha Devisingh Patil c) Hamid Ansari d) D.Subbarao e) Pranab Mukherjee

2) The first Union budget of independent India was presented by?
a) R.K.Shanmukham Chetty b) Jawaharlal Nehru c) Morarji Desai d) Indira Gandhi
e) Manmohan Singh

3) Disinvestment Target for 2011-12 has been placed at?
a) Rs. 10000 crore b) Rs. 20000 crore c) Rs. 30000 crore d) Rs. 40000 crore
e) None of these

4) Foreign Institutional Investor-(FII) limit for investment in Indian corporate bonds raised from $20 billion to?
a) $30 billion b) $40 billion c) $50 billion d) $60 billion e) None of these

5) As per Union Budget 2011-12, Indian Micro Finance Equity Fund of Rs.100 crore to be created with?
a) SBI b)ICICI
c) NABARD d)IDBI e) SIDBI

6) Rural Infrastructure Develo-pment Fund (RIDF) was set up by the Government in?
a) 1995-96 b) 1996-97 c) 1997-98 d)1998-99 e) None of these

7) The corpus allocated for Rural Infrastructure Development Fund (RIDF) for 2011-12 is?
a) Rs.16000 b) Rs.17000 c) Rs.18000 d) Rs.19000 e) None of these

8) The target of credit flow to farmers has been raised from Rs.3,75,000 crore of 2010-11 to ……in 2011-12?
a) Rs.4,75,000 crore b) Rs.5,75,000 crore c) Rs.6,75,000 crore d) Rs.7,75,000 crore
e) None of these

9) Rural Infrastructure Develo-pment Fund (RIDF) is maintained by?
a) RBI b) SBI c) NABARD d) IDBI Bank e) None of these

10) Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 years of age to?
a) 64 years b) 63 years c) 62 years d) 61 years e) 6o years

11) Exemption limit for the general category of individual taxpa-yers enhanced from 1,60,000 to?
a) 1,70,000 b) 1,80,000 c) 1,90,000 d) 2,00,000 e) None of these

12) As per Union Budget 2011-12, standard rate of Service Tax is?
a) 10 % b) 11 % c) 12 %d) 13 % e) None of these

13) As per Union Budget 2011-12, Defence allocation is?
a) 1.64 lakh crore b) 1.74 lakh crore c) 1.84 lakh crore d) 1.94 lakh crore e) None of these
14) In the Constitution of India, the Union Budget of India referred to as the?
a) Economic Survey b) Monetary and Credit Policy c) Foreign Trade Policy
d) Annual Financial Statement
e) None of these

15) Which of the following department is not a part of Finance Ministry of India?
a) Department of Economic Affairs
b) Department of Expenditure
c) Department of Revenue
d) Department of Disinvestments
e) Department of Industrial Policy & Promotion

16) Which Department principal responsibility is the prep-aration of the Union Budget annually (excluding the Railway Budget)?
a) Department of Economic Affairs
b) Department of Expenditure
c) Department of Revenue
d) Department of Disinvestments
e)Department of Financial Servies

17) Which of the following is a government body that offers a single window clearance for proposals on foreign direct investment in the country that are not allowed access through the automatic route?
a) Securities and Exchange Board of India
b) Reserve Bank of India
c) Export-Import Bank of India
d) Foreign Investment Promo-tion Board
e) Bombay Stock Exchange

18) The first woman Finance Secretary of India?
a) Sushma Nath
b)Shyamala Gopinath
c) Chanda Kochhar
d) Shikha Sharma
e) None of these

19) The only woman to hold the post of the finance minister of India?
a) Vijaya Lakshmi Nehru Pandit b) Sarojini Naidu
c) Rajkumari Amrit Kaur d) Indira Gandhi e)None of these

20) The Union Budget is always presented first in ?
a) Lok Sabha b) Rajya Sabha c) Joint Session of the Parliament d) State Assemblies
e) None of these

21) Which of the following presents the Economic Survey in the parliament every year, just before the Union Budget?
a) RBI b) Ministry of Finance c) Ministry of Commerce d) Planning Commission
e) Finance Commission

22) The financial year in India starts on?
a) 1st January b)1stMarch c) 1st April d) 1st July e) None of these

23) A fiscal year in India ends on?
a) February 28 b) March 31
c)April1 d)July1
e)December 31

24) A. Gross Tax receipts are estimated at 9,32,440 crore.
B. Non-tax revenue receipts estimated at 1,25,435 crore.
C. Total expenditure proposed at 12,57,729 crore.
D. Increase of 18.3 per cent in total Plan allocation.
E. Increase of 10.9 per cent in the Non-plan expenditure.
Which of the statements given above is/are correct?
a) A and B b) B and C
c) C and D d) D and E e) All of the above

25) A.Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms.
B. Government expects econo-my to grow at 9 % in 2011-12.
C. Fiscal Deficit target at 4.6% for 2011-12, down from 5.1% estimated for 2010-11.
D. Central Government debt estimated at 44.2 per cent of GDP for 2011-12 as against 52.5 per cent recomm-ened by the 13th Finance Commission.
E. 40,000 crore to be raised through disinvestment in 2011-12.
Which of the statements given above is/are correct?
a) A and B b) B and C
c) C and D d) D and E e) All of the above

26) A. Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.
B. "India Microfinance Equity Fund" of ’100 crore to be created with SIDBI. Gover-nment considering putting in place appropriate regulatory framework to protect the interest of small borrowers.
C."Women's SHG's Develo-pment Fund" to be created with a corpus of ’ 500 crore.
D. Corpus of RIDF XVII to be raised from Rs. 16,000 crore to 20,000 crore.
E. 1,000 crore to be provided to SIDBI for refinancing incre-mental lending by banks to these enterprises.
Which of the statements given above is/are correct?
a) A and D b) A, B and C c) C and D d) D and E e) None of these

27) A.Allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs. 6,755 crore to 7,860 crore.
B.Rs.10,000 crore to be contributed to NABARD's Short-term R-ural Credit fund for 2011-12.
C. Allocation for Bharat Nirman programme proposed to be increased by Rs.10,000 crore from the current year to Rs. 58,000 crore in 2011-12.
D. Rs. 21,000 crores for primary education to implement Sarva Shiksha Abhiyan.
E. Defence budget hiked to Rs. 1.64 lakh crore
Which of the statements given above is/are correct?
a) A and B b) B and C c) C and D d) D and E
e) All of the above

28) Consider the following statements:
1) Finance minister Pranab Mukherjee unveiled the Union Budget 2011-12 on February 28, 2011.
2) Economic Survey 2010-11 was presented in the Parliament on Feb 25, 2011.
3) India's Railway Minister Mamta Banerjee presented the new Railway Budget for the year 2011-12 in the parliament on February 25, 2011.
Which of the statements given above is/are correct?
a) 1 only b) 2 only
c) 3 only d) All of the above e) None of these

Answers:

1) e, 2) a, 3) d, 4) a, 5) e, 6) a, 7) c, 8) a, 9) c, 10) e, 11) b, 12) a, 13) a, 14) d, 15) e, 16) a, 17) d, 18) a, 19) d, 20) a, 21) b, 22) c, 23) b, 24) e, 25) e, 26) b, 27) e, 28) d

SOCIO ECONOMIC DEVELOPMENT OBJECTIVE QUESTIONS

1. Which is not the characteristic of socialist or planned economy ?
(A) Government is the owner of resources
(B) Production decisions are determined by the government
(C) Profit motive
(D) None of the above
Ans : (C)

2. The main feature of mixed economy is—
(A) Combination of free market economy and centrally planned economy
(B) Production is carried out by private individuals and government
(C) Both of the above
(D) None of the above
Ans : (C)

3. What per cent of GDP at 2004-05 prices was contributed by agriculture and related sectors in 2009-10 ?
(A) 14.6%
(B) 17.6%
(C) 19.0%
(D) 19.8%
Ans : (A)

4. According to World Development Report 2010, Low income economies are those whose per-capita gross national income is—
(A) $ 975 or less than this
(B) Less than $ 11905
(C) Less than $ 4526
(D) None of the above
Ans : (A)

5. Which of the following country's economy is known as high income economy ?
(A) America
(B) U.K.
(C) Singapore
(D) All of the above
Ans : (D)


6. How much percentage of working population in India depends on agriculture as per economic survey 2009-10 ?
(A) 52%
(B) 70%
(C) 73%
(D) 75%
Ans : (A)

7. Which policy of economic system has been adopted by India for its economic development ?
(A) Capitalist Economy
(B) Mixed Economy
(C) Socialist Economy
(D) Centralised Planned Economy
Ans : (B)

8. A positive aspect of economic development after independence is—
(A) Creation of a large industrial base
(B) Proportion of population living below poverty line has declined
(C) Self sufficient in the production of food grains
(D) All of the above
Ans : (D)

9. The negative aspect of economic development after independence is—
(A) Problems of poverty and unemployment have not been eliminated
(B) Industrialisation did not take place as expected
(C) Many public sector enterprises started making losses
(D) All of the above
Ans : (D)

10. Reasons for the privatisation and liberalisation of public sector after 1991 are—
(A) Corruption
(B) Lack of efficiency in work
(C) Ineffective management
(D) All of the above
Ans : (D)

11. The main strategy adopted in the new economic policy of 1991 is—
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) All of the above
Ans : (D)

12. How many industries have been reserved for government sector at present ?
(A) 03
(B) 04
(C) 05
(D) 06
Ans : (A)

13. How many industries are kept for compulsory licensing at present ?
(A) 03
(B) 06
(C) 05
(D) 07
Ans : (C)

14. Agriculture sector registered 1.6% growth in 2008-09 and what is estimated for 2009-10 ?
(A) 6%
(B) 4.3%
(C) 0.2%
(D) 0.9%
Ans : (C)

15. When was World Trade Organisation set up by the member countries of the united Nations to promote trade among countries ?
(A) 1994
(B) 1995
(C) 1999
(D) 2005
Ans : (B)

16. Where is the Headquarter of WTO located ?
(A) Newyork
(B) Washington
(C) Peris
(D) Geneva
Ans : (D)

17. The main objective of WTO is—
(A) Import and export restrictions to be abolished
(B) Instead of bilateral agreements, WTO expects the countries to follow multilateral agreements
(C) To regulate international trade of both goods and services
(D) All of the above
Ans : (D)

18. The largest source of National Income in India is—
(A) Agriculture Sector
(B) Industry Sector
(C) Service Sector
(D) Trade Sector
Ans : (C)

19. In which state the percentage of people living below poverty line is largest ?
(A) Orissa
(B) Bihar
(C) M.P.
(D) U.P.
Ans : (A)

20. Which of the following programmes is not for rural poverty eradication ?
(A) SGSY
(B) SJSRY
(C) PMGY
(D) All above programmes are for rural poverty eradication
Ans : (B)

21. The cause of rise in prices of goods, in the market is—
(A) Rise in money supply
(B) Increase in cost of production
(C) Increase in stocks of goods and blackmarketing
(D) All of the above
Ans : (D)

22. Changes in the prices of goods in India is measured by which of the following index numbers ?
(A) Wholesale Price Index (WPI)
(B) Consumer Price Index (CPI)
(C) Both of above
(D) None of these
Ans : (C)

23. Which year has been currently used as the base year to estimate national income in India by CSO ?
(A) 2004-05
(B) 1993-94
(C) 2001-02
(D) 1999-2000
Ans : (A)

24. Which of the following remedies are adopted to control price rise in the economy ?
(A) Monetary measures
(B) Fiscal measures
(C) Administered price mechanism
(D) All of the above
Ans : (D)

25. The term “Evergreen Revolution” has been used for increasing agricultural production in India by—
(A) Norman Barlogue
(B) Raj Krishna
(C) M. S. Swaminathan
(D) R. K. V. Rao
Ans : (C)

SOCIO ECONOMIC DEVELOPMENT OBJECTIVE QUESTIONS

1. “An Enquiry into the Nature and Causes of Wealth of Nations” is the book of economist—
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) None of above
Ans : (A)

2. “Economics is the Science of Wealth” who gave this definition ?
(A) J. K. Mehta
(B) Marshall
(C) Adam Smith
(D) Robbins
Ans : (C)

3. “Economics is what economists do.” It has been supported by—
(A) Richard Jones
(B) Comte
(C) Gunnar Myrdal
(D) All of the above
Ans : (D)

4. “Human Welfare is the subject of Economics.” This statement is associated with the name of which of the economists ?
(A) Marshall
(B) Pigou
(C) Penson
(D) All of the above
Ans : (D)

5. Who has given scarcity definition of economics ?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Robertson
Ans : (C)


6. “Economics is a science” the basis of this statement is—
(A) Relation between cause and effect
(B) Use of deductive method and inductive method for the formations of laws
(C) Experiments
(D) All of the above
Ans : (D)

7. Characteristics of economic laws are—
(A) Mere statements of economic tendencies
(B) Less certain
(C) Hypothetical
(D) All of the above
Ans : (D)

8. Which theory is generally included under micro economics ?
(A) Price Theory
(B) Income Theory
(C) Employment Theory
(D) None of the above
Ans : (A)

9. Whose opinions have revolutionised the scope of macro economics ?
(A) Adam Smith
(B) J.B. Say
(C) J.M. Keynes
(D) All of the above
Ans : (C)

10. Which of the following is an economic activity ?
(A) Teaching of a teacher in the school
(B) To teach son at home
(C) To serve her child by mother
(D) To play football by a student
Ans : (A)

11. Passive factor of production is—
(A) Only land
(B) Only capital
(C) Both land and capital
(D) Neither land nor capital
Ans : (C)

12. Under law of demand—
(A) Price of commodity is an independent variable
(B) Quantity demanded is a dependent variable
(C) Reciprocal relationship is found between price and quantity demanded
(D) All of the above
Ans : (D)

13. For inferior commodities, income effect is—
(A) Zero
(B) Negative
(C) Infinite
(D) Positive
Ans : (B)

14. When total utility becomes maximum, then marginal utility will be—
(A) Minimum
(B) Average
(C) Zero
(D) Negative
Ans : (C)

15. Utility means—
(A) Power to satisfy a want
(B) Usefulness
(C) Willingness of a person
(D) Harmfulness
Ans : (A)

16. Marginal utility is equal to average utility at that time when average utility is—
(A) Increasing
(B) Maximum
(C) Falling
(D) Minimum
Ans : (B)

17. At point of satiety, marginal utility is—
(A) Zero
(B) Positive
(C) Maximum
(D) Negative
Ans : (A)

18. Which of the following is the second law of Gossen ?
(A) Law of equi-marginal utility
(B) Law of equi-product
(C) Theory of indifference curve
(D) Law of diminishing marginal utility
Ans : (A)

19. Total utility of a commodity is measured by which price of that commodity ?
(A) Value in use
(B) Value in exchange
(C) Both of above
(D) None of above
Ans : (A)

20. According to Marshall, the basis of consumer surplus is—
(A) Law of diminishing marginal utility
(B) Law of equi-marginal utility
(C) Law of proportions
(D) All of the above
Ans : (A)

21. Which commodity can be called as Giffen commodity ?
(A) Inferior commodity
(B) Superior commodity
(C) Any of above
(D) None of the above
Ans : (A)

22. The price of a commodity is determined where—
(A) Demand supply
(B) Demand supply
(C) Demand = supply
(D) None of the above
Ans : (C)

23. In perfect competition, the demand for a commodity is—
(A) Elastic
(B) Perfectly elastic
(C) Inelastic
(D) Perfectly inelastic
Ans : (B)

24. Which condition is not found in perfect competition ?
(A) Many buyers and sellers
(B) Perfect knowledge about market conditions
(C) Product differentiation
(D) Perfect factor-mobility
Ans : (C)

25. In which market, a firm cannot determine price ?
(A) Perfect competition
(B) Monopoly
(C) Monopolistic competition
(D) Oligopoly
Ans : (A)

SOCIO ECONOMIC DEVELOPMENT OBJECTIVE QUESTIONS

1. When was Consumer Protection Act enacted ?
(A) 1980
(B) 1985
(C) 1986
(D) 1991
Ans : (C)

2. When was Planning Commission formed ?
(A) March 15, 1950
(B) March 15, 1951
(C) August 15, 1947
(D) January 26, 1950
Ans : (A)

3. Planning Commission is—
(A) A statutory body
(B) A consultative body
(C) Both of above
(D) None of these
Ans : (B)


4. Who is the Chairman of Planning Commission ?
(A) President
(B) Prime Minister
(C) Finance Minister
(D) Home Minister
Ans : (B)

5. Who is the Deputy Chairman of Planning Commission ?
(A) Montek Singh Ahluwalia
(B) C. Rangrajan
(C) K. C. Pant
(D) None of the above
Ans : (A)


6. Who was the first Chairman of Planning Commission ?
(A) Jawahar Lal Nehru
(B) Raja Gopala Chari
(C) Mahatma Gandhi
(D) None of the above
Ans : (A)

7. Which of the following is the function of Planning Commission ?
(A) To estimate various resources of the country
(B) To prepare plan for the balanced and effective use of resources
(C) To review plan
(D) All of the above
Ans : (D)

8. When was National Development Council formed ?
(A) 15th March, 1950
(B) 6th August, 1951
(C) 6th August, 1952
(D) 26th January, 1950
Ans : (C)

9. Who becomes the Chairman of National Development Council ?
(A) President
(B) Prime Minister
(C) Finance Minister
(D) Minister of Planning
Ans : (B)

10. Final shape is given to plan by—
(A) Planning Commission
(B) Finance Minister
(C) National Development Council
(D) None of the above
Ans : (C)

11. When was first five year plan introduced ?
(A) 1st April, 1950
(B) 1st April, 1951
(C) 1st April, 1952
(D) 31st March, 1950
Ans : (B)


12. When was 10th five year plan introduced ?
(A) 1st April, 2002
(B) 1st April, 2003
(C) 1st April, 2004
(D) None of the above
Ans : (A)

13. Eleventh Five Year Plan Size (Centre Plus States) as percentage of GDP is—
(A) 9.46%
(B) 13.54%
(C) 15.25%
(D) 14.76%
Ans : (B)

14. What is the period of 11th five year plan ?
(A) 2006-2011
(B) 2007-2012
(C) 2008-2013
(D) 2009-2014
Ans : (B)

15. What is the revised target fixed for annual rate of growth of GDP during 11th five year plan ?
(A) 9%
(B) 8.1%
(C) 10%
(D) 10.5%
Ans : (B)

16. For which year the latest census is being conducted in India ?
(A) 2001
(B) 2010
(C) 2012
(D) 2011
Ans : (D)

17. How many censuses (including the 2011 census) have been carried out since independence ?
(A) 05
(B) 06
(C) 07
(D) 08
Ans : (C)

18. At what interval of years population census is conducted in India ?
(A) 05 years
(B) 06 years
(C) 10 years
(D) 15 years
Ans : (C)

19. When was first human development report of India issued ?
(A) March 2000
(B) April 2002
(C) June 2002
(D) April 2001
Ans : (B)

20. In which religion largest population growth was noticed during 1991-2001 ?
(A) Hindu
(B) Muslim
(C) Christian
(D) Sikhs
Ans : (B)

21. According to population census 2001, population of India as on March 1, 2001 was—
(A) 102•87 crore
(B) 100•20 crore
(C) 99 crore
(D) 98 crore
Ans : (A)

22. In which of the following states the percentage of scheduled caste population is maximum as per final figures of population census 2001 ?
(A) Uttar Pradesh
(B) Madhya Pradesh
(C) Kerala
(D) Punjab
Ans : (D)

23. In which state the literacy rate of women is highest ?
(A) Tamil Nadu
(B) Kerala
(C) Mizoram
(D) West Bengal
Ans : (B)

24. According to population census 2001, which of the following states shows largest growth of population during 1991-2001 ?
(A) M.P.
(B) Manipur
(C) Rajasthan
(D) Nagaland
Ans : (D)

25. According to population census 2001, what is the number of women per 1000 men in India ?
(A) 939
(B) 959
(C) 933
(D) 927
Ans : (C)

SOCIO ECONOMIC DEVELOPMENT OBJECTIVE QUESTIONS

1. Demand curve of a firm under perfect competition is—
(A) Perfectly Inelastic
(B) Perfectly Elastic
(C) More Elastic
(D) Less Elastic
Ans : (B)

2. Which of the following equation is correct for perfect competition ?
(A) AR = MR = Price
(B) AR MR
(C) AR MR
(D) Price MR
Ans : (A)

3. Which equation is correct under normal profit ?
(A) AR = AC
(B) AR AC
(C) AR AC
(D) AR = AC = 0
Ans : (A)

4. The object of every producing firm is—
(A) To maximise production
(B) To minimise cost
(C) To maximise profit
(D) None of the above
Ans : (C)

5. Who determines price under perfect competition ?
(A) Representative firm
(B) Industry
(C) Normal firm
(D) Government
Ans : (B)


6. Marshall's representative firm is a long-run average firm while optimum firm is a—
(A) Maximum cost firm
(B) Minimum cost firm
(C) Marginal cost firm
(D) Average cost firm
Ans : (B)

7. In perfect competition average revenue curve is—
(A) Parallel to x-axis
(B) Parallel to y-axis
(C) Slopes down from left to right
(D) Slopes upward from left to right
Ans : (A)

8. In the long-run, perfect competitive firm gets—
(A) Only normal profit
(B) Abnormal profit
(C) Loss
(D) Any of the above
Ans : (A)

9. What minimum price is acceptable by a firm in the short-period ?
(A) Equal to AC
(B) Equal to AVC
(C) Equal to AFC
(D) Equal to TC
Ans : (B)

10. Selling cost is a must in—
(A) Pure monopoly
(B) Perfect competition
(C) Imperfect competition
(D) All of the above
Ans : (C)

11. Which category of land is rent less land ?
(A) First category of land
(B) Second category of land
(C) Third category of land
(D) Marginal land
Ans : (D)

12. Opportunity cast of a factor is known as—
(A) Transfer earning
(B) Money cost
(C) Present earning
(D) None of the above
Ans : (A)

13. Quasi Rent is—
(A) Equal to firm's total profit
(B) More than firm's total profit
(C) Less than firm's total profit
(D) None of the above
Ans : (D)

14. Which of the following can not be accepted factor of production ?
(A) Land
(B) Labour
(C) Light of sun
(D) Capital
Ans : (C)

15. Land is the only factor of production whose supply is ?
(A) More Elastic
(B) Perfectly Elastic
(C) Perfectly Inelastic
(D) Unitary Elastic
Ans : (C)

16. Rent will be produced at that time when ?
(A) Entire land is fertile
(B) Elasticity of supply of land is perfectly elastic
(C) Land is mobile
(D) None of the above
Ans : (D)

17. The Example of derived demand is—
(A) Demand for labour
(B) Demand for tea
(C) Demand for consumable commodity
(D) Income demand
Ans : (A)

18. Which of the following is an active factor of production ?
(A) Land
(B) Labour
(C) Capital
(D) Organisation
Ans : (B)

19. Who developed the innovation theory of profit ?
(A) Shumpeter
(B) Haley
(C) Prof. Knight
(D) Karl Marx
Ans : (A)

20. When the rate of money inflation increase then the prices of commodities ?
(A) Increase
(B) Decrease
(C) Remain constant
(D) Do not change
Ans : (A)

21. In common meaning, inflation is a condition in which—
(A) Price of commodity increases
(B) Value of money decreases
(C) Price of commodity and value of money both increase
(D) Price of commodity increases and value of money decreases
Ans : (D)

22. According to Keynes, real inflation takes place—
(A) Before the level of full employment
(B) On the level of full employment
(C) After the level of full employment
(D) All above are true
Ans : (C)

23. Which is the main reason of demand pull inflation ?
(A) Increase in money supply
(B) Increase in commercial expenditure
(C) Increase in foreign demand for goods
(D) All of the above
Ans : (D)

24. The reason for cost push inflation is—
(A) Increase in money wages
(B) Increase in rate of profit
(C) Both of above
(D) None of the above
Ans : (C)

25. What is necessary to control cost push inflation ?
(A) To impose control on wages of labour
(B) To remove market imperfections
(C) Both of the above
(D) None of the above
Ans : (C)

SOCIO ECONOMIC DEVELOPMENT OBJECTIVE QUESTIONS

1. According to population census 2001, the state of largest density of population is—
(A) Maharashtra
(B) Uttar Pradesh
(C) West Bengal
(D) Bihar
Ans : (C)

2. According to population census 2001, which union territory has the largest percentage of literacy ?
(A) Delhi
(B) Chandigarh
(C) Puducherry
(D) Lakshdweep
Ans : (D)

3. According to population census 2001, which of the following states is below the national average of literacy ?
(A) Maharashtra
(B) Gujarat
(C) Orissa
(D) West Bengal
Ans : (C)

4. As per population census 2001, what is the percentage of urban population in total population of India ?
(A) 25•8%
(B) 26•78%
(C) 27•78%
(D) 28•78%
Ans : (C)

5. What was infant mortality rate in India in 2008 ?
(A) 70 per thousand
(B) 65 per thousand
(C) 60 per thousand
(D) 53 per thousand
Ans : (D)


6. As per population census 2001 in which state literacy rate is lowest ?
(A) Bihar
(B) Rajasthan
(C) Orissa
(D) Sikkim
Ans : (A)

7. What has been the annual growth rate of population during 1991-2001 ?
(A) 2•20 %
(B) 2•14%
(C) 1•95%
(D) 1•00%
Ans : (C)

8. In the history of population growth of India, which year is called “the year of great divide” ?
(A) 1951
(B) 1947
(C) 1935
(D) 1921
Ans : (D)

9. What was the density of population per square km in India in 2001 ?
(A) 325 persons
(B) 333 persons
(C) 327 persons
(D) 345 persons
Ans : (A)

10. The factor that determines the change in population of a place is—
(A) Birth rate
(B) Death rate
(C) Migration
(D) All of these
Ans : (D)

11. In whose production U.P. occupies the first place in India ?
(A) Food grains production
(B) Milk production
(C) Production of sugarcane and sugar
(D) All of the above
Ans : (D)

12. The Headquarter of RBI is in—
(A) Delhi
(B) Mumbai
(C) Kanpur
(D) Nasik
Ans : (B)

13. Which state produces maximum soyabean ?
(A) Madhya Pradesh
(B) Uttar Pradesh
(C) Bihar
(D) Rajasthan
Ans : (A)

14. Which state produces maximum pulses in the country ?
(A) Madhya Pradesh
(B) Uttar Pradesh
(C) Orissa
(D) Maharashtra
Ans : (A)

15. Kasturba Gandhi Education Scheme is related to—
(A) Girl Education
(B) Adult Education
(C) Child Labour Education
(D) Tribal Women (above 18 years)
Ans : (A)

16. Which state stands first in the length of roads in the country ?
(A) Maharashtra
(B) Uttar Pradesh
(C) Madhya Pradesh
(D) Rajasthan
Ans : (A)

17. National Sample Survey Organisation (NSSO) was established in—
(A) 1950
(B) 1951
(C) 1952
(D) 1947
Ans : (A)

18. What is ‘green gold’ ?
(A) Tea
(B) Coffee
(C) Gold
(D) Rice
Ans : (A)

19. Which one is the leading state in the production of groundnut in the country ?
(A) Haryana
(B) Gujarat
(C) Rajasthan
(D) Uttar Pradesh
Ans : (B)

20. Which state in India produces maximum mica ?
(A) Madhya Pradesh
(B) Bihar
(C) Orissa
(D) Jammu and Kashmir
Ans : (B)

21. What is a foot loose industry ?
(A) Any industry which can locate virtually anywhere
(B) Foot loose industry has no strong national orientation in its location requirements
(C) Both of above
(D) None of the above
Ans : (C)

22. “Mahila Samridhi Yojana” was launched on—
(A) October 2, 1992
(B) October 2, 1993
(C) October 2, 1995
(D) January 1, 1996
Ans : (B)

23. Which of the following is not a member of South Asian Association for Regional Cooperation (SAARC) ?
(A) India
(B) Pakistan
(C) Bhutan
(D) None of these
Ans : (D)

24. Nowadays, the thurst areas of human development are—
(A) Health
(B) Gender Equity
(C) Gender Empowerment
(D) All of the above
Ans : (D)

25. According to area, which state is the largest ?
(A) Madhya Pradesh
(B) Rajasthan
(C) Uttar Pradesh
(D) Maharashtra
Ans : (B)

INDIAN ECONOMY MULTIPLE CHOICE QUESTIONS

1. Deficit financing increases—
(A) Rate of money inflation
(B) Rate of money deflation
(C) Rate of devaluation
(D) All of the above
Ans : (A)

2. Which is not a monetary measure to control inflation ?
(A) Soft loan policy
(B) Hard credit policy
(C) Tight the regulation of money issue
(D) To reduce the quantity of money
Ans : (A)

3. Which is the monetary measure to control inflation ?
(A) Increase in taxation
(B) Decrease in taxation
(C) Soft credit policy
(D) Hard credit policy
Ans : (D)

4. Selling of securities in the open market by the central bank creates—
(A) Inflation
(B) Deflation
(C) Both of above
(D) None of the above
Ans : (B)

5. To control inflation the central bank should do—
(A) To sell government securities and to decrease bank rate
(B) To sell government securities and to increase bank rate
(C) To purchase government securities and to increase bank rate
(D) To purchase government securities and to decrease bank rate
Ans : (B)


6. To buy a book, from the market by giving money is called—
(A) Direct Exchange
(B) Indirect Exchange
(C) Direct and Indirect exchange
(D) This is not any type of exchange
Ans : (A)

7. Which of the following is not a direct tax ?
(A) Income tax
(B) Property tax
(C) Sales tax
(D) House tax
Ans : (C)

8. Ultimate burden of tax is known as—
(A) Impact
(B) Incidence
(C) Shifting of tax
(D) None of the above
Ans : (B)

9. When elasticity of demand and elasticity of supply are equal, the burden of tax ?
(A) Lies more on buyer
(B) Lies more on seller
(C) Lies equally on buyer and seller
(D) All of the above are false
Ans : (C)

10. Which of the following economists suggested tax on expenditure ?
(A) Dalton
(B) Musgrave
(C) Kaldor
(D) Van Philips
Ans : (A)

11. If interest payment is deducted from the fiscal deficit, then the balance is—
(A) Primary deficit
(B) Budgetary deficit
(C) Revenue deficit
(D) Monetary deficit
Ans : (A)

12. Which is the characteristic of a tax ?
(A) Tax is a payment for government service
(B) Tax is a compulsory payment
(C) Tax is voluntary
(D) To get benefit for a tax is compulsory
Ans : (B)

13. Which government income is included in revenue budget ?
(A) Tax-revenue
(B) Non-tax-revenue
(C) Both of above
(D) None of the above
Ans : (C)

14. Which is included in Capital budget ?
(A) Income received from public borrowings
(B) Income received from tax-sources
(C) Income received from non-tax sources
(D) All of the above
Ans : (A)


15. Which is not included in the principles of public expenditure as developed by Findley Shirras ?
(A) Principle of Economy
(B) Principle of Sanction
(C) Principle of Elasticity
(D) Principle of Surplus
Ans : (C)

16. Which of the following is the largest significant factor of revenue expenditure of Central Government ?
(A) Defence Expenditure
(B) Subsidy
(C) Interest Payment
(D) Salary
Ans : (C)

17. In comparison to revenue deficit; the size of fiscal deficit is always—
(A) Higher
(B) Smaller
(C) Similar
(D) Uncertain
Ans : (A)

18. What is CENVAT ?
(A) Direct Tax
(B) Indirect Tax
(C) Development Planning
(D) None of the above
Ans : (B)

19. Where is Indian Diamond Institute (IDI) established ?
(A) New Delhi
(B) Mumbai
(C) Surat
(D) Jaipur
Ans : (C)

20. What is the nature of income tax in India ?
(A) Proportional
(B) Progressive
(C) Regressive
(D) None of the above
Ans : (B)

21. Which factor is not related to economic development ?
(A) Continuous process
(B) Increase in real national income
(C) Long run and continuous increase
(D) Compulsory change in economic welfare
Ans : (D)

22. The index of measuring economic development is—
(A) Increase in productive assets
(B) National income
(C) Per-capita income
(D) Any of the above
Ans : (D)

23. Process of economic development means—
(A) Economic change
(B) Social change
(C) Ethical, institutional and cultural change
(D) All of the above
Ans : (D)

24. At 2004-05 prices, the per-capita national income in India during 2009-10 was—
(A) Rs. 21005
(B) Rs. 33588
(C) Rs. 25241
(D) Rs. 20241
Ans : (B)

25. What is the main characteristic of a capitalist or free market economy ?
(A) Individuals are the owners of factors of production
(B) Profit is the main motive of carrying out various activities
(C) Consumer freedom
(D) All of the above
Ans : (D)

INDIAN ECONOMY MULTIPLE CHOICE QUESTIONS

1. The foundation stone of a new rail coach making factory has been laid at—
(A) Saharsa
(B) Rae Bareli
(C) Amethi
(D) Amritsar
Ans : (B)

2. CONCORD of 8 states of Northern region is a scheme of—
(A) FICCI
(B) ASSOCHAM
(C) CII
(D) A joint scheme of all the above
Ans : (C)

3. The weight of mining sector in Industrial production index is—
(A) 10•69%
(B) 22•42%
(C) 11•46%
(D) 44•44%
Ans : (A)


4. As per Budget document 2010-11, MSME (Micro, Small and Medium Enterprises) Sector’s contribution in GDP is—
(A) 5%
(B) 8%
(C) 10%
(D) 12%
Ans : (B)

5. Aam Admi Bima Yojana provides social security to—
(A) All labours in rural areas
(B) All landless labours living below poverty line in rural areas
(C) All labours in urban areas
(D) All labours in both rural as well as urban areas
Ans : (B)

6. Who was the Chairman of 12th Finance Commission ?
(A) C. Rangrajan
(B) K. C. Pant
(C) Kelkar
(D) Madhavan Ravindre
Ans : (A)

7. Increase in net RBI credit for Central Government represents—
(A) Budgetary Deficit
(B) Revenue Deficit
(C) Fiscal Deficit
(D) Monetised Deficit
Ans : (D)

8. Which pair is not correct ?
(A) Rekhi Committee—Simplification of Export and Import
(B) Nanjundappa Committee—Railway fare
(C) Rangrajan Committee—Balance of Payment
(D) Goiporia Committee—Banking Service Improvements
Ans : (A)

9. Individual cannot open his account in—
(A) Urban Cooperative Bank
(B) Regional Rural Bank
(C) RBI
(D) Scheduled Commercial Banks
Ans : (C)

10. National Development Council in its meeting on July 24, 2010 has given approval to change 11th plan annual growth target from—
(A) 8•5% to 8•1%
(B) 9•0% to 8•5%
(C) 9•0% to 8•1%
(D) 9•0% to 8•4%
Ans : (C)

11. The objective of ‘Sangam Yojana’ is—
(A) To make Ganga water pollution free
(B) To make Sangam region of Allahabad more attractive for tourists
(C) To ensure welfare of handicapped
(D) To unite various groups of Hindus
Ans : (C)

12. IMF has raised the quota and voting share of India which places India at……place among 184 members of the organisation.
(A) 10th
(B) 11th
(C) 12th
(D) 13th
Ans : (B)

13. 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
Ans : (C)

14. Project ‘Sankalp’ is associated with the elimination of—
(A) Illiteracy
(B) Polio
(C) Unemployment
(D) AIDS/HIV
Ans : (D)

15. In Union Budget 2010-11, the share of subsidy in one rupee expenditure stands at—
(A) 9 paise
(B) 10 paise
(C) 11 paise
(D) 12 paise
Ans : (A)

16. ‘Focus Product’ and ‘Focus Market’ are the two schemes introduced related to—
(A) Industrial Diversification
(B) Technology Upgradation
(C) Export Promotion
(D) Control of Inflation
Ans : (C)

17. UNDP has introduced a new poverty index known as—
(A) Human Poverty Index
(B) Poorest among Poor Index
(C) Social Poverty Index
(D) Multi-dimensional Poverty Index
Ans : (D)

18. RBI on September 16, 2010 raised repo rate by 50 basis points which made repo rate—
(A) 5%
(B) 5•75%
(C) 6%
(D) 6•25%
Ans : (C)

19. To which community/organisation maximum goods are exported from India ?
(A) EEC
(B) Commonwealth nation
(C) SAFTA
(D) OPEC
Ans : (A)

20. For National Manufacturing and Investment Zones (NMIZ), Special Economic Zone (SEZ) and EOUs (Exports-Oriented Units), which of the following statement is true ?
(A) NMIZs and EOUs will be located within SEZs
(B) SEZs and EOUs will be located within NMIZs
(C) NMIZs are independent of SEZs and EOUs
(D) NMIZs and SEZs will be competitors in nature.
Ans : (B)

INDIAN ECONOMY MULTIPLE CHOICE QUESTIONS

1. The government is preparing Devolution Index which will measure social empowerment of people at the—
(A) Panchayat level
(B) Block level
(C) District level
(D) State level
Ans : (A)

2. At present the central issue price for wheat for families BPL (below poverty line) is—
(A) Rs. 250 per Qt.
(B) Rs. 415 per Qt.
(C) Rs. 500 per Qt.
(D) Rs. 900 per Qt.
Ans : (B)

3. Which committee was constituted for reforms in tax-structure ?
(A) Narsimham Committee
(B) Chelliah Committee
(C) Gadgil Committee
(D) Kelkar Committee
Ans : (B)


4. Narsimham Committee was related to—
(A) High Education Reforms
(B) Tax Structure Reforms
(C) Banking Structure Reforms
(D) Planning Implementation Reforms
Ans : (C)

5. The Slogan ‘Garibi Hatao’ was included in—
(A) First Plan
(B) Fifth Plan
(C) Fourth Plan
(D) Second Plan
Ans : (B)

6. KVIC (Khadi and Village Industry Commission) was established in—
(A) Third Plan
(B) Fourth Plan
(C) Second Plan
(D) First Plan
Ans : (C)

7. Which year was declared as Customer’s Satisfaction Year by Railways ?
(A) 2000-01
(B) 2001-02
(C) 2002-03
(D) 2003-04
Ans : (D)

8. The main security guard of International Trade is—
(A) IMF
(B) World Bank
(C) WTO
(D) IFC
Ans : (C)

9. Which is true for existing Economic and Industrial Policies of Indian Govt. ?
(1) FERA was abolished
(2) MRTP was abolished
(3) Cash compensatory support for exports was abolished
(4) Industrial licensing (except a few goods) was abolished
(A) 1, 2, 3 and 4
(B) 1, 3 and 4
(C) only 3 and 4
(D) only 2 and 3
Ans : (C)

10. Which segment of infrastructure sector got the maximum share in 11th plan’s infrastructure allocations ?
(A) Irrigation
(B) Telecom
(C) Electricity
(D) Roads and Bridges
Ans : (C)

11. An expert committee on climate change has been formed by the Ministry of Environment and Forest under the chairmanship of—
(A) R. Chidambaram
(B) V. Siddhartha
(C) A. Raja
(D) Nirmala Deshpande
Ans : (A)

12. Which of the two employment programmes are being merged in newly introduced Prime Minister’s Employment Generation Programme ?
(A) PMRY and NREP
(B) NREP and REGP
(C) PMRY and REGP
(D) PMRY
Ans : (C)

13. Trinity Coal group of US is being purchased by—
(A) Essar Group
(B) Tata Group
(C) Jindal Group
(D) Laxmi N. Mittal Group
Ans : (A)

14. One major proposal of New Industrial Policy (1991) was—
(A) NRIs will not be allowed for capital investment in India
(B) All types of industries have been made licence free
(C) Import restrictions of technical know-how for one year
(D) Facility of direct foreign investment upto 51% in high priority industries
Ans : (D)

15. Which of the following company has won in the bid to acquire Satyam Computer Service ?
(A) Larsen and Toubro
(B) Tech-Mahindra
(C) Wipro
(D) None of the above
Ans : (B)

16. According to 2001 census, which state has the maximum slum population ?
(A) Uttar Pradesh
(B) Maharashtra
(C) Delhi
(D) Orissa
Ans : (B)

17. ‘Closed Economy’ is that economy in which—
(A) Only export takes place
(B) Money supply is fully controlled
(C) Deficit financing takes place
(D) Neither export nor import takes place
Ans : (D)

18. Government has introduced SBI (Amendment) Bill 2010 in the Parliament which has the provision to reduce government’s share in SBI’s capital—
(A) from 61% to 55%
(B) from 58% to 55%
(C) from 55% to 51%
(D) from 55% to 49%
Ans : (C)

19. National Rural Development Institute is situated at—
(A) Shimla
(B) Hyderabad
(C) Patna
(D) New Delhi
Ans : (B)

20. ‘Axis Bank’ is the new proposed name for—
(A) UCO Bank
(B) IDBI Bank
(C) UTI Bank
(D) ICICI Bank
Ans : (C)

ECONOMY RELATED TERMS

Union Budget
Under Article 112 of the constitution, a statement of estimated receipts and expenditure, called the ‘Annual Financial Statement’, has to be placed before Parliament for each financial year.

This Statement is the main budget document. It is an estimate of the Government’s revenue and expenditure at the end of a fiscal year, which runs from April 1 to March 31.

A Union Budget is the most comprehensive report of the Government’s finances, in which revenues from all sources and outlays to all activities are consolidated. The budget also contains estimates of the Government’s accounts for the next fiscal, called budgeted
estimates.

Capital BudgetThe capital budget consists of capital receipts and payments. Capital receipts are Government loans raised from the public, Government borrowings from the Reserve Bank and treasury bills, divestment of equity holding in public sector enterprises, loans received from foreign Governments and bodies, securities against small savings, State provident funds, and special deposits.

Capital payments refer to capital expenditures on construction of capital projects and acquisition of assets like land, buildings machinery and equipment.

It also includes investments in shares, and loans and advances granted by the Central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget
The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.

The non-tax revenue sources include interest on loans, dividend on investments etc.

Revenue expenditure is the expenditure incurred on the day-to-day running of the Government and its various departments, and for services that it provides.

It also includes interest on its borrowings, subsidies and grants given to State Governments and other parties.

This expenditure does not result in the creation of assets. In case the difference between revenue receipts and revenue expenditure is negative, there is a revenue deficit.

It shows the shortfall of the Government’s current receipts over current expenditure. If the capital expenditure and capital receipts are taken into account too, there will be a gap between the receipts and expenditure in a year. This gap constitutes the overall budgetary deficit, and it is covered by issuing 91-day Treasury Bills, mostly held by the Reserve Bank.

Revenue surplus is the excess of revenue receipts over revenue expenditure.

Fiscal Deficit
This is the gap between the Government’s total spending and the sum of its revenue receipts and non-debt capital receipts.

It represents the total amount of borrowed funds required by the Government to completely meet its expenditure. The gap is bridged through additional borrowing from the Reserve Bank of India, issuing Government securities etc. Fiscal deficit is one of the major contributors to inflation.

Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.

Finance Bill
The Government proposals for the levy of new taxes, alterations in the present tax structure, or continuance of the current tax structure are placed before the Parliament in this bill. The bill contains amendments proposed to direct and indirect taxes.

Direct and Indirect Taxes
Direct taxes are levied on the incomes of individuals and corporates. For example, income tax, corporate tax etc. Indirect taxes are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

Central plan outlay : 

It refers to the allocation of monetary resources among the different sectors in the economy and the ministries of the Government.

Public account : 

The Government acts like a banker for transactions relating to provident funds, small savings collection etc.

The funds that the Government thus receives from its bank like operations are kept in the public account, from which the related disbursements are made.

These funds do not belong to the Government and have to be paid back to the persons and authorities who have deposited them.

Ad-valorem duties : 

These are the duties determined as a certain percentage of the price of products.

Balance of payments : 

Balance of payments is the difference between the demand for, and supply of, a country’s currency on the foreign exchange market.

Budget estimates : 

It is an estimate of fiscal and revenue deficits for the year. The term is associated with the estimates of the Centre’s spending during the financial year and the income received through taxes.

Capital receipt : 

Loans raised by the Centre from the market. Government borrowings from the Reserve Bank and other parties, sale of Treasury Bills, and loans received from foreign governments form a part of capital receipt.

Other items that also fall under this category include recovery of loans granted by the Centre to State Governments and proceeds from disinvestments of Government stake in public sector undertakings.

Consolidated fund : 

Under this, the Government pools all its funds together.

It includes all Government revenues, loans raised, and recoveries of loans granted.

All expenditure of the Government is incurred from the consolidated fund and no amount can be withdrawn from the fund without authorisation of the Parliament.

Contingency fund : 

This is a fund used for meeting emergencies where the Government cannot wait for an authorisation of the Parliament. The Government subsequently obtains Parliamentary approval for the expenditure. The amount spent from the contingency fund is returned to the fund later.

Monetary policy : 

This comprises actions taken by the central bank to regulate the level of money or liquidity in the economy, or change the interest rates.

Active MarketThis is a term used by stock exchange which specifies the particular stock or share which deals in frequent and regular transactions. It helps the buyers to obtain reasonably large amounts at any time.

Administered Price
The administrative body e.g., the government a marketing board or a trading group determines this price. The competitive market force are not entitled to determine this price. The government fixes a price in accordance with demand supply portion in the market.

Ad-valorem Tax
Ad-valorem tax is a kind of indirect tax in which goods are taxed by their values. In the case of ad-volorem tax, the tax amount is calculated as the proportion of the price of the goods. Value added Tax (VAT) is an ad-volorem Tax.

Advanced Countries
Advanced countries are countries which are industrially advanced, having high national and per capita income and ensure high rate of capital formation. These countries possess highly developed infrastructure and apply most updated and advanced technical know-how in their productive activities. A strong and well organised financial structure is found in these advanced countries.

Amalgamation
It means ‘merger’. As and when necessity arises two or more companies are merged into a large organisation. This merger takes place in order to effect economies, reduce competition and capture market. The old firms completely lose their identity when the merger takes place.

Appreciation
Appreciation means an increase in the value of something e.g., stock of raw materials or manufactured goods. It also includes an increase in the traded value of a currency. It is the antonym of Depreciation. When the prices rise due to inflation, appreciation may occur. It causes scarcity or increase in earning power.

Arbitrage
When a person performs functions of middle man and buys and sells goods at a particular time to cash the price differences of two markets, this action is termed as arbitrage. Purchases are made in the market where price is low and at the same time, goods are sold in other market where the price are high. Thus the middleman earns profit due to price difference in two markets.

Arbitration
Where there is an industrial dispute, the Arbitration comes to the force. The judgement is given by the Arbitrator. Both the parties have to accept and honour the Arbitration. Arbitration is the settlement of labour disputes that takes place between employer and the employees.

Auction
When a commodity is sold by auction, the bids are made by the buyers. Whose ever makes the highest bid, gets the commodity which is being sold. The buyers make the bid
taking into consideration the quality and quantity of the commodity.

Autarchy
If a country is self-sufficient, it does not require the imports for the country. Autarchy is an indicator of self-sufficiency. It means that the country itself can satisfy the needs of its population without making imports from other countries.

Automation
Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.

Balanced Budget
When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.

Balance of Payment
Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.

Balance of Trade
Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.

Balance Sheet
Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.

Bank
Bank is a financial institution. It accepts funds on current and deposit accounts. It also lends money. The bank pays the cheques drawn by customers against current and deposits accounts. The bank is a trader that deals in money and credit.

Bank Draft
Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.

Bank Rate
Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.

Bilateralism
It implies an agreement between two countries to extend to each other specific privileges in their international trade which are not extended to others.

Birth Rate
Birth Rate (or Crude Birth Rate) is number of the births per thousand of the population during a period, usually a year. Only live births are included in the calculation of birth rate.

Black Money
It is unaccounted money which is concealed from tax authorities. All illegal economic activities are dealt with this black Money. Hawala market has deep roots with this black money. Black money creates parallel economy. It puts an adverse pressure on equitable distribution of wealth and income in the economy.

Blue Chip
It is concerned with such equity shares whose purchase is extremely safe. It is a safe investment. It does not involve any risk.

Blue Collar Jobs
These Jobs are concerned with factory. Persons who are unskilled and depend upon manual jobs that require physical strain on human muscle are said to be engaged in Blue Collar Jobs. In the age of machinery, such Jobs are on the decline these days.

Brain-Drain
It means the drift of intellectuals of a country to another country. Scientists, doctors and technology experts generally go to other prominent countries of the world to better their lot and earn huge sums of money. This Brain-Drain deprives a country of its genius and capabilities.

Bridge Loan
A loan made by a bank for a short period to make up for a temporary shortage of cash. On the part of borrower, mostly the companies for example, a business organization wants to install a new company with new equipments etc. while his present installed company / equipments etc. are not yet disposed off. Bridge loan covers this period between the buying the new and disposing of the old one.

Budget
It is a document containing a preliminary approved plan of public revenue and public expenditure. It is a statement of the estimated receipt and expenses during a fixed period, it is a comparative table giving the accounts of the receipts to be realized and of the expenses to be incurred.

Budget Deficit
Budget may take a shape of deficit when the public revenue falls short to public expenditure. Budget deficit is the difference between the estimated public expenditure and public revenue. The government meets this deficit by way of printing new currency or by borrowing.

Bull
Bull is that type of speculator who gains with the rise in prices of shares and stocks. He buys share or commodities in anticipation of rising prices and sells them later at a profit.

Bull Market
It is a market where the speculators buy shares or commodities in anticipation of rising prices. This market enables the speculators to resale such shares and make a profit.

Buoyancy
When the government fails to check inflation, it raises income tax and the corporate tax. Such a tax is called Buoyancy. It concerns with the revenue from taxation in the period of inflation.

Business Cycle
Business cycle (also known as trade cycle) are species of fluctuations in the economic activity of organised communities. It is composed of period of good trade characterised
by rising prices and low unemployment, alternating with period of bad trade characterised by falling prices and high unemployment. Every trade cycle have five different subphases–depression, recovery, full employment, prosperity (boom) and recession.

Call Money
Call money is in the form of loans and advances which are payable on demand or within the number of days specified for the purpose.

Capital Budgeting
Capital budgeting represents the process of preparing budget for a period of a year or even for several years allocating capital outlays for the various investment projects. In other words, it is the process of budgeting capital expenditure by means of an annual or longer period capital budget.

Capital-labour Ratio
Latest models of machinery and equipment raise the labour efficiency and the output is maximized. Capitallabour ratio is the amount of capital against the given labours that a firm employs. Capital-labour ratio is the ratio of capital to labour.

Capital Market
Capital market is the market which gives medium term and long term loans. It is different from money market which deals only in short term loans.

Capitalism
Capitalism is an economic system in which all means of production are owned by private individuals Selfprofit motive is the guiding feature for all the economic activates under capitalism. Under pure capitalism system economic conditions are regulated solely by free market forces. This system is based on ‘Laissez-faire system’ i.e., no state intervention. Sovereignty of consumer prevails in this system. Consumer behaves like a king under capitalism.

Cash Reserve Ratio (CRR)
The commercial banks are required to keep a certain amount of cash reserves at the central bank. This percentage amount is called CRR. It influences the commercial bank’s volume of credit because variation in CRR affects the liquidity position of the banks and hence their ability to lend.

Census
Census gives us estimates of population. Census is of great economic importance for the country. It tells us the rate at which the total population is increasing among different age groups. In India census is done after every 10 years. The latest census in India has been done in 2001.

Central Bank
Central Bank may be defined as the apex barking and monetary institution whose main function is to control, regulate and stabilize the banking and the monetary system of the country in the national interest.

Cheque
Cheque is an order in writing issued by the drawer to a bank. If the customer has sufficient amount in his account, the cheque is paid by the bank. Cheques are used in place of cash money.

Clearing Bank
Clearing bank is one which settles the debits and credits of the commercial banks. Even of the cash balances are lesser, clearing bank facilitates banking operation of the commercial bank.

Clearing House
Clearing house is an institution which helps to settle the mutual indebtedness that occurs among the members of its organisation.

Closed Economy
Closed economy refers to the economy having no foreign trade (i.e., export and import). Such economies depend exclusively on their own internal domestic resources and have
no dependence on outside world.

Collusion
Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.

Coinage
Art and practice of making coins is called coinage. The metal is melted and moulded to shape into a coin. The coinage is a medium of exchange (money).

Collectivism
Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.

Commercial Bank
Commercial Bank is an institution of finance. It deals with the banking services through its branches in whole of the country. Operation of current accounts, deposits, granting of loans to individuals and companies etc. are various functions of the commercial bank.

Communism
Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.

Core Sector
Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

Corporation Tax
It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

Cost-push Inflation
It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Credit Rationing
Credit rationing takes place when the banks discriminates between the borrowers. Credit rationing empowers the bank to lend to some and to refuse to lend to others. In this way credit rationing restricts lending on the part of bank.

Credit Squeeze
Monetary authorities restrict credit as and when required. This credit restriction is called credit squeeze. Monetary authorities adopt the policy of credit squeeze to control inflationary pressure in the economy.

Custom Duty
Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.

Cyclical Unemployment
It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business
cycle turns up again.

Dear Money
Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.

Death Duty
It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.

Death Rate
Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.
A country having high life expectancy will have a high crude death rate.

Decentralisation
Decentralisation means the establishment of various unit of the same industry at different places. Large scale organisation or industry can not be run at one particular place or territory. In order to increase the efficiency of the industry, various units at different places are located.

Debt Service (Total)
The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.

Deficit Financing
It is a practice resorted to by modern government of spending more money than it receives in revenue. It is a policy of bridging a deficit between governments expenditure and revenue. Deliberately budgeting for a deficit is called deficit financing. This practice was popularised by Prof. J. M. Keynes to deal with the depression and unemployment situations and to stimulate economic activity. Deficit financing, though having inflationary effects, has now become a common practice in all countries.

Deflation
Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the general price level falls and the value of money rises.

Devaluation
The loss of value of currency of a country relative to other foreign currency is known as devaluation. Devaluation is a process in which the government deliberately cheapens the exchange value of its own currency in terms of other currency by giving it a lower exchange value. Devaluation is used for improving, the balance of payment situation in the country.

Direct Tax
A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.

Disinflation
It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.

Dissaving
Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.

Dividend
Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.

Economic Integration
Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

Engel's Law
This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

Estate Duty
It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

Excise Duty
It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

Face Value
It refers to that normal value of coin at which the coin circulates and is accepted in the discharge of debit or obligation. Broadly speaking, the face value refers to domination stamped on a coin / or documents when it is issued. In securities, it refers to par value.

Fascism
It is a form of political system. In it every economic consideration rests on one criterion—the increase in the people's standard of living. It also lays emphasis on military
strength and prestige of the country. It is the extreme nationalism and the ultimate goal is self-sufficiency.

Federal Economy
It refers to a federation which is an association of two and more states. A federal state is a union of state in which authority is divided between the federal (or central) government and the state governments. In a federal economy both the centre and the states are independent in the exercise of this authority.

Fiduciary Issue
Generally bank-note are backed by gold. But when they are not backed by gold and government securities replace gold, it is called fiduciary issue. Such fiduciary issue results in inflation.

Fertility Rate
The term fertility refers to the actual bearing of children or ‘occurrence of births’. Fertility rate measures the average number of the live births per 1000 women. This rate is one of the most important and useful aids to population projection. It helps in assessing population trends in the economy.

Fiscal Policy
Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

GEM
GEM (Gender Empowerment Measure) is a composite index measuring gender inequality in three basic dimensions of empowerment–economic participation and decision making, political participation and decision making, and power over economic resources.

GDI
GDI (Gender Related Development Index) is a composite index measuring average achievement in the three basic dimensions captured in the human development index–a long and healthy life, knowledge and a decent standard of living–adjusted to account for inequalities between men and women.

Gini-coefficient
It represents the measurement of inequality derived from the ‘Lorenz Curve,’ with every increase in the degree of inequality, the curvature of the Lorenz Curve also increases and
the area between the curve and 45line becomes larger.
The Gini-coefficient is measured as—
G =Area between Lorenz Curve & 45Line/Area above the 45Line

Giffin Goods
Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward from left to right. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.

Gresham's Law
“Bad money (if not limited in quantity) drives good money out of circulation”—This statement was given by Sir Thomas Gresham, the economic Adviser of Queen Elizabeth. This law states that people always want to hoard good money and spend bad money when two forms of money are in circulation at the same time.

Gross Domestic Product (GDP)
It is the money value of all final goods and services produced within the geographical boundaries of the country during a given period of time (usually a year). GDP can be calculated both at current prices and at constant prices. If we add net factor income from abroad to the GDP, we get ‘Gross National Product’ (GNP).

Gross National Product (GNP)
It refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time, generally a year.

Gross National Product Deflator
It is a Price Index Number used to correct the money value of Gross National Product (GNP) for price changes so as to isolate the changes which have taken place in the physical output of goods and services.

Guild Socialism
This form of socialism accepts the leadership of artisans. The operation of the whole economy specially the management and control of industries lies in the hands of artisans Socialism established by artisans is termed a Guild Socialism.

HDI
HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.

Import Duty
Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

Indirect Tax
Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention that he shall indemnify himself at the expense to another.

Inflation
A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

Joint Demand
Joint demand appears in case of complementary goods. When two commodities are complementary to one another and cannot be used separately, they have joint demand. Bread and butter, sugar and tea, pen and ink are a few examples of joint demand. In joint demand a change in demand of one commodity bring about the proportionate change in demand for the other.

Joint Sector
When a sector is jointly owned, managed and run by both public and private sector, it is called joint sector. This sector indicates the partnership between the two i.e., public and private sector.

Labour Union
Labour union represents that organisation of workers which works for improving working condition of labours and also for raising their wage by adopting ‘collective bargaining’ measures with the management of the industry in particular.

Laffer Curve
This curve is given by American economist Prof. Arthur Laffer. It represents relationship between total tax revenue and corresponding tax rates.

Laissez Faire
It is a French word meaning ‘non-interference’. This doctrine was popularised by classical economists who gave the view that government should interfere as little as possible in the economic activities of the individuals.

Life Expectancy at Birth
The number of years a newborn infant would live if prevailing pattern of age specific mortality rates at the time of birth were to stay the same throughout the child’s life.

Liquidation
It refers to the termination (or winding up) of a registered company. Liquidation takes place because of company's insolvency. In liquidation, assets are turned into cash for settling outstanding debts and for apportioning the balance, if any, amongst the owners.

Liquidity
Assets which can easily be converted into cash money are said to have liquidity. Land does not possess liquidity at it takes longer time to get converted into cash.

Liquidity Ratio
The commercial banks under banking regulations have to maintain a certain specified proportion of their total deposits of various categories in liquid assets. This maintainable proportion is called liquidity ratio.

Lock-out
Lock-out refers to such a situation when the management does not permit the workers to work unless they agree to accept the employer's term. Lock-out is the closing of work by the management for an uncertain period of time to put pressure on the labour union. It is an action by the employer equivalent to a strike by employees.

Lorentz Curve
This curve shows the degree of inequalities of a frequency distribution in a graphical manner. It is a curve on a graph which shows the cumulative proportion of a statistical population against this cumulative share of some characteristic. This curve is commonly used to depict income distribution showing the cumulative percentage of people from the poorest up and their cumulative share of national income.

Lump Sum Tax
Lump sum tax is a fixed amount which has imperative nature irrespective of the income level. This tax is not equitable in nature.

Merit Goods
Merit goods refer those goods that are very essential to the society as a whole and hence the government ensures their availability to all consumers, regardless of their ability to pay to reasonable price.

Mixed Economy
It refers to that economic system in which both private and public sector co-exists. Indian economy is an example of a mixed economy.

Monetary Policy
Monetary policy comprises all measures applied by the monetary authorities with a view to produce a deliberate impact on the nature and volume of money so as to achieve the objectives of general economic policy. It aims at regulating the flow of currency, credit and other money substitutes in an economy with a view to affect the total stock of such assets as well as to influence the demand of the community for such assets.

Monetary Reforms
When a new currency is introduced in a country due to hyperinflation or due to a deliberate policy measure (such as decimalization) it is termed as monetary reform.

Monopoly
Monopoly refers to that market structure where there is only one seller in the market who controls the entire market supply and no substitute of the product is available in the market.

Monopsony
Monopsony is that market situation in which there is only one single buyer of the product in the market. In other word, ‘buyer's monopoly’ is termed as monopsony.

Multinational Company
It is a large scale company which has its production base in several countries and the bulk of the production is produced in outside nations. This company produces more overseas
than they do in its parent country. Increased trade and economies of scale have encouraged such type of companies in the recent years.

National Income
In the simplest way it can be defined as ‘factor income accruing to the national residents of a country.’ It is the sum of domestic factor income and net factor income earned from abroad. Net national product at factor cost is called national income.

Net National Product (NNP)
When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

Oligopoly
Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.

Open Economy
Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.

Okun’s Law
Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.

Perfect Competition
Perfect competition is the market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence market price.

Poverty Line
Poverty line is a virtual line demarcating persons living below and above it. In India all those persons are treated living below poverty line who are not able to earn that much of income which is not sufficient to acquire food equivalent to 2100 calories per person per day in urban areas and 2400 calories per person per day in rural areas. As per UNDP, one US dollar (1993 PPP US $) per person per day is treated as poverty line.

PQLI
PQLI is known as Physical Quality of Life Index which is used to assess the level of social development. This index was developed by Jim Grant for The Overseas Development Council PQLI is calculated by using indices of (i) Adult literacy rate, (ii) IMR, (iii) Life Expectancy.

Price Mechanism
Price mechanism signifies the working of those market forces which establishes equilibrium in the economy. Laissez faire policy is the basis for the working of price mechanism.

Price Ring
It is an unofficial syndicate by which the prices are controlled with the prior understanding among the traders. These dealers under a price ring decide not to over-bid one another at the public auction to keep the prices low. This price ring may discourage outsiders from coming to the auctions.

Private Sector
Private Sector is that part of the economy which is not owned by the government and is under the hands of private enterprise. In other words, private sector is not under direct government control. Private sector includes the personal as well as the corporate sector.

Privatisation
Privatisation is the antithesis of nationalisation. When the government owned public industries are denationalised and the disinvestment process is initiated, it is called privatisation.

Public Debt
Public debt represents borrowing by the state and public authorities. All loans taken by the public authorities constitute public debt.

Public Goods
Public goods are those goods which belong to the entire community. None of the individual of the society can be made deprived of using these public goods. National defence, Police, Street lighting etc. are examples of public goods.

Public Sector
Public sector signifies those undertakings which are owned, managed and run by public authorities. Public sector includes direct government enterprise, the nationalized industries and public corporations. In this sector of the economy the government acts itself as an entrepreneur.

Peril Point
It indicates that point beyond which tariff reductions would threaten the existence of domestic industry.

Quick Asset
Those assets are quick assets which are liquid or nearly liquid in nature and easily be turned into cash.

Quoted Company
That company is called quoted company whose share prices are quoted on a stock exchange.

Reflation
It signifies general increase in the level of business activity in the economy. Reflation generally involves greater government expenditure and the easing of credit to encourage increased production.

Regressive Tax
It is a tax in which rate of taxation falls with an increase in income. In regressive taxation incidence falls more on people having lower incomes than that of those having higher incomes.

Repressed Inflation
It is a state in which aggregate demand is greater than the total supply of goods and services in an economy, but prices are prevented from rising to eliminate excess demand. The holding down of price is sometimes done by government as a means of suppressing inflation.

Reserve Asset Ratio
It is the ratio of a bank’s reserve assets to its eligible liabilities.

Revolving Credit
It is a bank credit that is renewed automatically until notice of cancellation is received. Revolving credits may be sanctioned for an unlimited amount in total but with a limit on
the amount that may be drawn at any one time or within a specified period, e.g., one month.

Seasonal Unemployment
It is that unemployment which is caused by seasonal variation in demand for labour by various industries, such as agriculture, construction and tourism. Seasonal unemployment
normally declines in spring as more outdoor work can be undertaken.

Security
Security refers to a share, bond or government stock that can be bought and sold, usually on the stock exchange or on a secondary market, and carries a right to some form of income, either in the form of a fixed rate of interest or dividends.

Shadow Price
It is an imputed value for a good based on the opportunity costs of the resources used to produce it such values are of particular significance in resolving problems of resource allocating with respect to the effect on welfare.

Share Capital
It is the amount of money raised by a company by issuing shares. The authorized share capital is the amount that a company is allowed to issue as laid down in its Articles of Association. The issued share capital is the amount actually issued i.e., the number of issued shares multiplied by their par value. Fully paid share capital is the amount raised by payment of the full par value of the issued shares.

Single Tax System
It is a system in which all tax revenues are raised from one form of taxation.

Socialism
The political doctrine that the means of production (machines, materials and output) should be owned by society and specifically either by the state, as in the case of nationalized industries or by the workers directly, as in the case of producer co-operatives.

Social Security
Provision by the state out of taxation of welfare assistance to those in need as a result of illness, unemployment, or old age compare national insurance refers to social security.

Soft Currency
A currency with limited convertibility into gold and other currencies, either because it is depreciating due to balance of payments difficulties or because controls have been placed on it to prevent the exchange rate falling.

Special Drawing Rights (SDRs)
It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official reserves along with gold, reserve positions in the IMF and convertible foreign currencies.

Special Tax (Unit Tax)
It is a tax imposed per unit of a commodity rather than on the value of the commodity compare ad-valorem.

Stabilization Policy
It is Government economic policy announced at reducing the cyclical and other fluctuations that take place in a market economy.

Stagflation
It is a state of the economy in which economic activity is slowing down, but wages and prices continue to rise. The term is a blend of the words stagnation and inflation.

Surplus Value
It is the difference between the amount paid to a factor and the revenue earned by selling the output it produced.

Tariff
It is a tax or a duty on imports, which can be levied either on physical units, e.g., per tonne (specific), or on value (ad-valorem). Tariffs may be imposed for a variety of reasons including; to raise government revenue, to protect domestic industry from subsidized or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments.

Trade Gap
It signifies the size of the deficit (or surplus) in the balance of trade i.e., the difference in value between visible imports and exports.

Trade Union
It is an organisation of employees who join together to further their interests. Trade Unions negotiate on behalf of their members in collective bargaining with employers, and in the event of a dispute may put pressure on employers by withdrawing labour (i.e. strike) or by some less drastic form of action (i.e. go-slow, working to rule).

Transfer Payment
It is a payment made by public authority other than one made in exchange for goods or services produced. Transfer payments are not the part of National Income. Examples includes unemployment benefit and child benefits.

Vital Statistics
Vital statistics refers to those data which are associated with vital events of masses like birth, death, marriage divorce etc.

VAT (Value Added Tax)
VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation. In other words, the tax already paid can be claimed at the next stage of value addition.

Wealth Tax
Wealth tax is that tax which is imposed on the value of total assets but the wealth upto a certain limit is exempted from such tax.

Welfare State
It refers to a nation that provides to all at least the minimum standards in respect of education, health, housing, pensions and other social benefits.

Wholesale Price Index
Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.