INDIAN ECONOMY MCQ PART 2

         INDIAN ECONOMY SOLVED QUESTION 

1. In which plan was the target of deficit finance taken as zero?
(A) Seventh Plan
(B) Ninth Plan ✔
(C) First Plan
(D) Third Plan

2. Which of the following experienced the fastest expansion during the plan period in India?
(A) Services ✔
(B) Industry
(C) Agriculture
(D) None of the above

3. In the wake of the Stockholm Conference, the Government of India set up the National Committee on Environmental Planning and Coordination in the year
(A) 1985
(B) 1990
(C) 1972 ✔
(D) 1980

4. An economy may be analytically classified into —
(A) Primary, Secondary and Tertiary Sectors ✔
(B) Primary, Manufacturing and Transport Sectors
(C) Agriculture, Industry, and transport
(D) Agriculture, Manufacturing, and Services

5. Structural Adjustment Policy was introduced by India on taking a loan from
(A) Asian Development Bank
(B) European Union
(C) IMF ✔
(D) World Bank

6. Which of the following increases continuously with increase in production?
(A) Average cost
(B) Marginal cost
(C) Fixed cost
(D) Variable cost ✔

7.At present, as per governments rulings, the maximum area allowed for a Special Economic Zone (SEZ) is
(A) 4000 hectares
(B) 5000 hectares ✔
(C) 2000 hectares
(D) 3000 hectares

8.Which of the following taxes is within the jurisdiction of the Central Government?
(A) Land Revenue
(B) Excise on alcoholic
liquors
(C) Corporation Tax ✔
(D) Professional Tax

9. Which of the following is not required while considering GNP (Gross National Product)?
(A) Per capita income of citizens
(B) Net foreign investment ✔
(C) Purchase of goods by Government
(D) Private investment

10.Bank Rate is the rate
(A) The rate at which banks lend to the Industrial Financial Institutions
(B) None of the above
(C) At which banks lend money to the depositors
(D) At which Reserve Bank of India lends money to Commercial Banks ✔

11.The term prudential norm is associated with
(A) Industrial Policy
(B) Agriculture Policy
(C) Trade Policy
(D) Banking Sector Reform ✔

12. The primary emphasis during the 2nd Plan was laid on the development of
(A) Foreign trade
(B) Consumer industries
(C) Rural areas
(D) Basic and Heavy industries ✔

13. The Community Development Programme aims at
(A) Optimum utilization of rural resources
(B) integrated rural development ✔
(C) Providing educational facilities to rural people
(D) Providing health care facilities to rural people

14. Which of the following is not a method of estimating the national income of a country?
(A) Expenditure method
(B) Income-import method ✔
(C) Product method
(D) Income method

15. How many annual plans have been completed till the commencement of the 10th plan?
(A) One
(B) Six ✔
(C) Three
(D) Four

16. The fifth five-year plan was terminated at the end of the fourth year because
(A) Of severe drought condition
(B) The emergency had ended
(C) There was no fund
(D) The Janata Party wanted to start a new plan with changed objective and patterns ✔

17.The largest source of India's Gross Domestic Produce
(A) Foreign Trade
(B) Services Sector ✔
(C) Agriculture and Allied Activities
(D) Manufacturing, Construction Industry, Electricity and Gas

18. Term loan for expansion of industries in India is mainly provided by
(A) Reserve Bank of India
(B) Co-operative Bank
(C) Commercial Banks
(D) Development Banks ✔

19. In a factory that pays its employees on a piecework system, the schedule of reinforcement can be said to be
(A) Variable interva
(B) Variable ratio ✔️
(C) Fixed ratio
(D) Fixed interval

20. If the rural landlord also supplies rural credit to the tenants, it is called
(A) Capitalism
(B) Capitalist farming
(C) Feudalism
(D) Semi-feudalism ✔

21. The EXIM Bank of India deals with
(A) The exports and imports of India ✔
(B) the members of the Indian Parliament
(C) The peasants of India
(D) The industrial workers of India

22. In order to control inflationary price rise, Reserve Bank directs banks to
(A) Increase Cash Reserve Ratio (CRR)✔
(B) Buy bonds from capital market
(C) Reduce the rate of interest on credit
(D) Reduce the Statutory Liquidity Ratio (SLR)

23. In the Ninth-Five Year Plan, the growth rate in the GDP per annum is to be
(A) 6.5% ✔
(B) 7%
(C) 5.5%
(D) 6%

24. The concept of planning was first approached in India by -
(A) M. Visvesvaraya ✔
(B) Ardeshir Dalai
(C) Jawaharlal Nehru
(D) Subhas Chandra Bose

25. Formation of Planning Commission is mentioned in the Article of the Constitution
(A) 360
(B) 308
(C) 196
(D) not mentioned in the Constitution ✔

26.The national income of a country is
(A) Export minus
(B) Surplus of Public Sector Undertakings
(C) The Annual Revenue of the Government
(D) Sum total of factor incomes ✔

27.The place where banks settle their mutual claims and accounts is known as a
(A) Collection Centr
(B) Stock Exchange
(C) Treasury
(D) Clearing House ✔

28. More than 50% of the working population in India depends on
(A) the tertiary sector.
(B) the industrial sector.
(C) the primary sector. ✔
(D) the public sector

29. The Planning Commission was appointed in March 1950 under the chairmanship of—
(A) C.D. Deshmukh
(B) None of the above
(C) P.C. Mahalanobis
(D) Jawaharlal Nehru ✔

30. Industrial Licensing, was finally abolished (with a few exceptions) in the
(A) Industrial Policy, 1991 ✔
(B) Industrial Policy, 1995
(C) Industrial Policy, 1970
(D) Industrial Policy, 1980

31. Plan finance creates an increase in money supply if there is
(A) increase in loan from commercial banks
(B) increase in loan from the general public
(C) increase in taxes ✔
(D) increase in loan from the Reserve Bank of India

32. Which of the following is not one of the objectives of economic planning in India?
(A) Balanced regional development
(B) Spread of education ✔
(C) Raising living standards
(D) Reduction of economic inequalities

33. What is the name of the Central Bank of India?
(A) Reserve Bank of India ✔
(B) Indian Overseas Bank
(C) Central Bank of India
(D) State Bank of India

34. In India, the per capita income is the lowest in
(A) Bihar ✔
(B) Kerala
(C) West Bengal
(D) Rajasthan

35. The credit co-operative institution at the village level is called -
(A) Agricultural Loan Society
(B) Rural Bank
(C) Primary Agricultural Credit Society ✔
(D) Rural Agricultural Credit Society

36. The New Agricultural Strategy was introduced in India in the decade of —
(A) 1970's
(B) 1960's ✔
(C) 1950's
(D) None of the above

37. The National Bank for Agriculture and Rural Development (NABARD) was established in
(A) 1983
(B) 1984
(C) 1981
(D) 1982 ✔

38. Panchayats
(A) Are entitled to Government grants only
(B) Are authorized to levy and collect taxes, duties tolls, and fees ✔
(C) Are authorized to levy taxes only
(D) Have no power to levy taxes

39. Find out the statement which is false. Financial Structural reform needs
(A) reduce inflationary pressure
(B) increase in the balance of payment deficit ✔
(C) fall in government budget deficit
(D) increase in profitability of economic sectors

40. The Objective of the plan strategy followed in the first seven plans was
(A) Increasing import growth
(B) Maximizing growth of employment
(C) Achieving self-reliance ✔
(D) Increasing export growth

41. Operation Barga was first introduced in
(A) Kerala
(B) Bihar
(C) Karnataka
(D) West Bengal ✔

42. The service sector of India generates more than
(A) 42% of GDP
(B) 50% of GDP ✔
(C) 33% of GDP
(D) 40% of GDP

43. Share of the sector in India's GDP is highest
(A) Services sector ✔
(B) Foreign Trade sector
(C) Agricultural sector
(D) Industrial sector

44. New agri-structural strategy created special benefits for
(A) Agricultural laborers
(B) Intermediate traders
(C) Small farmers
(D) Big capitalist farmers ✔

45.The item that earns the maximum foreign exchange for India is
(A) Pharmaceuticals
(B) Rice
(C) Leather and leather goods ✔
(D) Spices

46.Operation Barga refers to —
(A) Recognition of share-croppers' rights to cultivate lands of absentee landlords
(B) Equal distribution of lands
(C) A program of universal registration of tenants ✔
(D) Recognition of sharing of outputs between landlords and share-croppers

47.Almost the same importance was given to agriculture and industry in the
(A) Fourth Plan
(B) Fifth Plan
(C) First Plan
(D) Third Plan ✔

48. In which of the following Five Year Plans a bold approach was adopted towards a long term employment policy?
(A) Seventh
(B) Eighth ✔
(C) Fifth
(D) Sixth

49. Which of the following statements is NOT true?(1) RBI has hiked the Cash Reserve Ratio (CRR) by 50 basis points(2) RBI did not change the Repo Rate (up to September 2008)(3) RBI has hiked the Repo Rate by 50 basis points Choose the correct code
(A) Only 1
(B) Only 2
(C) Only 3
(D) All of the above ✔

50. Land reforms largely benefitted the economic condition of
(A) Small farmers ✔
(B) Co-operative farmers
(C) Agricultural laborers
(D) Bargadars