Part 1 Flashcards
(187 cards)
1
Q
objective of PM-KUSUM Scheme i
A
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam
Utthaan Mahabhiyaan) Scheme is aimed at ensuring energy
security for farmers in India, along with honouring India’s
commitment to increase the share of installed capacity of
electric power from non-fossil fuel sources to 40% by 2030
as part of Intended Nationally Determined Contributions
(INDCs). The PM-KUSUM Scheme was launched in 2019.
To remove farmers’ dependence on diesel and kerosene and
to link agricultural pump sets to solar energy is among the
main objectives of this scheme
2
Q
The first industry to develop in India was the
A
The first industry to develop in India was the cottage
industry. Cottage industries have contributed significantly
since ancient times in India. After the British arrived in
India, cottage industries were rapidly destroyed in the
country and the traditional artisans adopted other occupations.
The major cottage industries in India are cotton
weaving, carpet making, silk weaving, leather industry and
small scale food processing industry etc
3
Q
Which of the following Institution/Office bring out the
Wholesale Price Index (WPI) data in India?
A
Wholesale Price Index (WPI) series is compiled by the
Office of Economic Adviser (OEA), Ministry of Commerce
and Industry, on a weekly basis, based on the price quotations
collected by the official as well as non-official source
agencies on selected items and commodities identified in
the basket of the index
4
Q
The Organization of the Petroleum Exporting Countries
(OPE
A
Organization of the Petroleum Exporting Countries
(OPEC) is an intergovernmental organization or cartel of 13
countries, founded on 14th September, 1960 in Baghdad. The
stated mission of the organization is to “coordinate and unify
the petroleum policies of its member countries and ensure
the stabilization of oil markets, in order to secure an efficient,
economic and regular supply of petroleum to consumers, a
steady income to producers, and a fair return on capital for
those investing in the petroleum industry.” The 13 member
countries accounted for an estimated 44 percent of global oil
production and 81.5 percent of the world’s ‘proven’ oil
reserves, giving OPEC a major influence on global oil prices
5
Q
Shanghai Cooperation Organization (SCO
A
The Shanghai Cooperation Organization (SCO), is a Eurasian
political, economic, and security alliance, the creation of
which was announced on 15th June, 2001 in Shanghai, China
by the leaders of China, Kazakhstan, Kyrgyzstan, Russia,
Tajikistan and Uzbekistan. The original five members, with
the exclusion of Uzbekistan, were previously members of the
Shanghai Five group, founded on 26th April, 1996
6
Q
National Institute for Entrepreneurship and Small
Business Development is situated at
A
The National Institute for Entrepreneurship and Small
Business Development (NIESBUD) is situated in Noida
(U.P.). It is a premier organization of the Ministry of Skill
Development and Entrepreneurship, engaged in training,
consultancy, research, etc. in order to promote entrepreneurship
and skill development. It was established in 1983 under
Societies Registration Act, 1860 by the Government of India
7
Q
Nayak committee is related
A
The Reserve Bank of India constituted on 9 December 1991,
a Committee under the Chairmanship of P.R. Nayak, to
examine the difficulties confronting the small scale
industries (SSIs) in the country in the matter of securing
finance. Nayak Committee submitted its report in September,
1992. Another committee under the chairmanship of P.J.
Nayak was set up by the RBI in January, 2014 to review the
governance of the board of banks in India.
8
Q
As per the Micro, Small and Medium Enterprises
Development Act, 2006, medium enterprises are defined
as those with the investment of :
A
(b) Rs. 5 crores to Rs.10 cro
9
Q
Gadgil Committee Report’ and ‘Kasturirangan Committee
Report’, sometimes seen in the news, are related to :
A
Gadgil Committee Report and Kasturirangan Committee
Report are related to protection of Western Ghats. The
Committee headed by ecologist Madhav Gadgil also known
as the Western Ghats Ecology Expert Panel (WGEEP)
recommended that all of the Western Ghats be declared as
the Ecologically Sensitive Areas (ESA) with only limited
development allowed in graded zones. The Committee undChairmanship of K. Kasturirangan was constituted to
examine the WGEEP report. Kasturirangan Committee in its
report (2013) sought to balance the development and environment
protection and recommended that instead of the
total area of Western Ghats, only 37% of the area to be brought
under ESA.
10
Q
Monetary Measures :
A
Credit control
• Demonitization of currency
• Issue of new currency
2. Fiscal Measures :
• Reduction in unnecessary expenditure
• Increase in Taxes
• Increase in Savings
• Surplus Budget
• Public deb
Other Measures
• To increase production
• Rational wage policy
• Price control
• Rationing
11
Q
UNSC stands fo
A
UNSC stands for – United Nations Security Council. The
UNSC is one of the six principal organs of the United Nations.
It is charged with ensuring international peace and security,
recommending the admission of new UN members to the
General Assembly, and approving any changes to the UN
Charter. It has 5 permanent and 10 non-permanent members.
The five permanent members of UNSC are : China, US,
France, Russia and the United Kingdom. The remaining 10
members are elected on a regional basis to serve a term of
two years.
12
Q
- The difference of the Government Minimum Support Price
(MSP) and market price, which is paid directly to the
farmers under W.T.O. is called :
A
WTO terminology, subsidies in general are identified by
‘boxes’ which are given the colours of traffic lights : green
(permitted), amber (slow down – i.e. need to be reduced), red
(forbidden). The Agreement on Agriculture (AoA) has no
red box. It has green box, amber box and blue box.
Subsidies that do not distort trade or at most cause minimum
distortion are in green box and permitted. Direct income
support for farmers that are not related to (are ‘decoupled’
from) current production levels or prices, environmental
protection and regional development programmes, research
funding, farmer training programmes, pest-disease control
programmes etc. are included in this category.
Domestic support measures considered to distort production
and trade (with some exceptions) fall into the amber box.
These include measures to support prices, or subsidies
directly related to production quantities. These supports
are subject to limits – generally 5% of agricultural production
for developed countries and 10% for developing countries.
Blue box is the ‘amber box with conditions’ – conditions
designed to reduce distortion. Included in the blue box are
any support payments that are not subject to the amber box
because they are direct payments under a production limiting
programme. To be included in blue box category, direct
payments must be made on fixed areas and yields or payments
must be made on 85 percent or less of the base level of
production. At present, there are no limits on spending on
blue box subsidies.
13
Q
recommends support price of the wheat?
A
Commission for Agricultural Costs and Prices
14
Q
. Currency expansion can be best described
A
Currency expansion means supply of money has increased.
Due to increase in money supply, the value of money
decreases. As a result, prices of goods and services will rise.
15
Q
Currency expansion can be best described
A
Currency expansion means supply of money has increased.
Due to increase in money supply, the value of money
decreases. As a result, prices of goods and services will rise.
16
Q
The Global Gender Gap Index
A
The Global Gender Gap Report by the World Economic
Forum. This index examines four overall parameters (with
fourteen variables) of inequality between men and women
in different economies. These parameters are :
(i) Economic participation and opportunity
(ii) Educational attainment
(iii) Political empowerment
(iv) Health and survival
17
Q
National Development Council was constituted on
A
approval of Five Year Plan
18
Q
Which of the following were the aims behind the setting
up of the World Trade Organization (WTO)?
1. Promotion of free trade and resource flows across
countries
2. Protection of intellectual property rights
3. Managing balanced trade between different countries
4. Promotion of trade between the former East Bloc
countries and the western world
Select the correct answer by using the codes given below:
(a) 1,2,3, and 4 (b) 1 and 2
(c) 2 and 3 (d) 1 and 4
A
The World Trade Organisation (WTO) is the principal forum
for setting the rules of international trade. It regulates and
facilitates international trade between nations. It officially
commenced operations on 1 January 1995. The WTO
facilitates trade in goods, services and intellectual property
among participating countries by providing a framework for
negotiating trade agreements, which usually aim to reduce or
eliminate tariffs, quotas, and other restrictions. All of the given
objectives were the aims behind setting up of the WTo
19
Q
newly appointed Managing Director of I.M.F
A
Kristalina Georgieva
20
Q
Trade and Merchandise Marks Act was passed in :
A
The Trade and Merchandise Marks Act was passed in 1958.
It is an Act to provide for the registration and better protection
of trade marks and for the prevention of the use of fraudulent
marks on merchandise
21
Q
first Regional Rural Bank formed?
A
first Regional Rural Bank ‘Prathama Grameen Bank’ was
set up at Moradabad (U.P.) on 2nd October, 1975. Out of five
initial stage RRBs in the country, remaining four were set up
at Malda (West Bangal), Gorakhpur (U.P.), Bhiwani (Haryana)
and Jaipur (Rajasthan).
22
Q
India aims to achieve the 5 trillion dollar economy by
A
Prime Minister Narendra Modi in 2019 envisioned makingIndia a 5 trillion US dollar economy and a global economicpowerhouse by 2024. With that target, India would becomethe third largest economy in the world.
23
Q
Mixed economy means :
A
mixed economy is variously defined as an economic systemblending elements of a market economy with elements of aplanned economy, capitalism with socialism, free markets withstate interventionism, or private enterprise with publicenterprise. Hence, mixed economy is referred to the economicsystem in which both public and private sector co-exist andthe government encourages both the sectors to developsimultaneousl
24
Q
will be true to classify India as :
A
labour-surplus economy
25
An underdeveloped economy is generally characterizedby :I. Low per capita incomeII. Low rate of capital formationIII. Low dependency ratioIV. Work force largely in the tertiary sectorSelect the correct answer from the codes given below :Codes :(a) I and II (c) III and IV Ans. (a)(b) II and III
An underdeveloped economy is generally characterized bylow per capita income, high rate of population growth,excessive dependence on backward agriculture, low rate ofcapital formation, high level of unemployment and underemployment, low levels of living, high levels of poverty andilliteracy, technical and industrial backwardness etc. Lowdependency ratio and work force largely in the tertiarysector are features of developed economy
26
11. Which of the following correctly explains thatIndia is an underdeveloped economy?1. Inequitable distribution of income2. High dependency ratio3. Slower rate of increase in national income4. Change in banking and financial sectorSelect the correct answer using the codes given below.(a) 1, 3 and 4 (c) 1 and 4 (e) None of these (b) 1, 2 and 4(d) All of these
Inequitable distribution of income, high dependency ratioand slower rate of increase in national income correctlyexplain that India is an underdeveloped economy whilechange in banking and financial sector is not among thecharacteristics of underdeveloped economy.
27
12. Which of the following features indicates that Indianeconomy is in a developing category?I. Occupation is mainly agricultureII. Disguised unemploymentIII. Poor quality of human capitalIV. High per capita intake of proteinsSelect the correct answer from the codes given below :Codes :(a) I & II only (c) II & III only Ans. (d)(b) I & IV(d) I, II & III
d) I, II & III
28
Why the indirect taxes are termed regressive taxing
mechanism
Indirect taxes are termed regressive taxing mechanism as they
are charged at the same rates for all income groups. Indirect
taxes are generally imposed on consumption and every
person, regardless of their taxable capacities, pays the same
rate of tax on consumption of a good or a servi
29
Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) is a composite
indicator that measures the short-term changes in the
volume of production of a basket of industrial products
during a given period with respect to that in a chosen
period. The IIP index is computed and published by the
National Statistical Office (NSO) on a monthly basis. IIP
measures the growth rate of industrial groups classified
under :
1. Broad sectors, namely, Mining, Manufacturing and
Electricity
2. Use-based sectors, namely Basic Goods, Capital Goods
and Intermediate Goods.
Construction is not included in the IIP index
30
Hindu growth rate is related
GDP
31
Full convertibility of the rupee may mean
Full convertibility of the rupee may mean its free float with
other international currencies as well as its direct exchange
with any other international currency at any prescribed place
inside and outside the country. On the other hand, an
international currency has to be essentially a freely convertible
currency with the ability to attract significant volumes of
international trades across regions. But, according to Kennen
(2009), an international currency is one that is used and held
beyond the borders of the issuing country, not merely for
transactions with that country's residents, but also, and
importantly, for transactions between non-residents. In other
words, an international currency is one that is used instead
of the national currencies of the parties directly involved in
an international transaction, whether the transaction in
question involves a purchase of goods, services or financial
assets. Hence, full convertibility of rupee does not necessarily
mean that it will act just like any other international
currency
32
IBRD
IBRD – International Bank for Reconstruction and
Development (1944
33
IDA
International Development Association (1960)
34
IFC
International Finance Corporation (1956)
35
The strategy of development of industries and industrialization
was part of which
Second
36
Negotiable Instruments Act (NIA, 1881)
Negotiable Instruments Act (NIA, 1881) was passed in
December 1881 but came into effect on 1 March, 1882.
Recently, the Negotiable Instrument (Amendment) Act, 2018
is enacted. On 2 August 2018, the President gave his assent
to this Act. By way of this amendment, section 143A ansection 148 have been inserted in the NIAct, to ensure that
the payee of a dishonoured cheque is offered a greater protection
and to discourage frivolous and unnecessary
litigation, saving the time and money of the litigating parties
as well as of the courts.
37
India export maximum leather to
38
The first Export Processing Zone of Asia was set up in
1965 i
Kandla
39
Who has propounded the concept of 'Limit to Growth'?
April of 1968, 30 people of 10 countries including scientists,
educators, economists, humanists, industrialists and
government officials met at the Accademia dei Lincei in Rome.
"The Club of Rome" was born from this meeting as an informal
organization. The concept of 'Limit to Growth' was
propounded by the Club of Rome. ‘The Limits to Growth’
report was published in 1972 and its computer simulations
suggested that economic growth could not continue
indefinitely because of resource depletio
40
Which one of the following sets of economists strongly
favoured a market economy?
Classical economics is a broad term that refers to the dominant
school of thought for economics in the 18th and 19th centuries.
Most consider Scottish economist Adam Smith the progenitor
of classical economic theory. Many of the fundamental
concepts and principles of classical economics were set forth
in Smith's "An Inquiry into the Nature and Causes of the
Wealth of Nations" (1776). Smith argued that free competition
and free trade promotes a nation's economic growth. Its other
main thinkers are David Ricardo, John Stuart Mill, JeanBaptiste
Say, J.K. Galbraith etc
41
According to the Planning Commission, how many
average daily calories per person define the poverty line
in urban areas
The task force constituted by the Planning Commission
under the chairmanship of Dr. Y.K. Alagh in its report (1979)
defined poverty line as the per capita consumption expenditure
level to meet average per capita daily calorie
requirement of 2400 kcal (food calories) per capita per day in
rural areas and 2100 kcal per capita per day in urban areas.
The average calorie requirements estimated as a populationweighted
average of the Nutrition Expert Group (1968) by
reference to the 1971 population Census.
42
Y.K. Alagh in its report (1979)
Y.K. Alagh in its report (1979)
defined poverty line as the per capita consumption expenditure
level to meet average per capita daily calorie
requirement of 2400 kcal (food calories) per capita per day in
rural areas and 2100 kcal per capita per day in urban areas.
43
fiscal stimulus
fiscal stimulus is a package comprising tax rebates and
incentives. It is used by the government to stimulate the
economy and prevent the country from a financial crisis. A
fiscal stimulus package of tax rebates and incentives boosts
spending. As spending increases demand, it creates a
situation where employment rises. This, in turn, leads to a
rise in income, which proportionately boosts spending. As
this continues, the economy recovers from collapse
44
Statutory Liquidity Rati
Statutory Liquidity Ratio or SLR is a minimum percentage of
deposits that a commercial bank has to maintain in the form
of liquid cash, gold or other securities. It is basically the
reserve requirement that banks are expected to keep before
offering credit to customers. These are not reserved with the
Reserve Bank of India (RBI), but with banks themselves.
The SLR is fixed by the RB
45
Crr
46
111. Match List 1 (Country) with List 2 (Currency) on the
basis of given codes :
List 1 List 2
A. Mexico 1. Yen
B. Austria 2. Peso
C. Japan 3. Riyal
D. Saudi Arab 4. Schilling
The correctly matched lists are as follows :
Country Currency
Mexico – Peso
Austria – Schilling (at present Euro)
Japan – Yen
Saudi Arab – Riyal
47
108. Which of the following oil refinery is in the private sect
All refineries mentioned in the question are under public
sector. At present, out of 23 refineries in India, 18 are in
Public Sector, 3 are in Private Sector and two are as a Joint
Venture
48
Regional Economic Bloc Year of Formation
The Council for Mutual Economic – 1949
Assistance (COMECON)
Association of South-East Asian – 1967
Nations (ASEAN)
Asia-Pacific Economic Cooperation – 1989
North American Free Trade Agreement – 1994
(NAFTA)
49
World Consumer Rights Day is celebrated on
consumer movement marks 15th March with 'World Consumer
Rights Day' every year, as a means of raising global
awareness about consumer rights and needs. It was inspired
by President John F. Kennedy, who sent a special message
regarding consumer rights to the U.S. Congress on 15th
March, 1962
50
Inflation is beneficial to which of the following section of
econom
Inflation occurs when there is a general increase in the price
of goods and services and a fall in purchasing value of money.
Inflation allows debtors (borrowers) to pay credtitors
(lenders) back with money worth less than when it was
originally borrowed, which benefits debtors. Thus, inflation
brings about a redistribution of real wealth in favour of debtors
at the cost of creditors. Investors in bonds and securities
with fixed interest rates, consumers, pensioners etc. also lose
in real terms during inflation.
51
The Asia-Pacific Trade Agreement (APTA
The Asia-Pacific Trade Agreement (APTA), previously
known as the Bangkok Agreement and renamed on 2nd
November, 2005, was signed in 1975. It is a preferential tariff
agreement that aims at promoting intra-regional trade
through the exchange of mutually agreed concessions by
the member countries.The members of APTA are –
Bangladesh, China, India, South Korea, Lao PDR (Laos),
Mongolia and Sri Lanka. Myanmar is not a member of APTA.
52
The Protection of Children from Sexual Offences (POCSO)
The Protection of Children from Sexual Offences (POCSO)
Act was enacted in 2012 especially to protect children (aged
less than 18) from sexual assault, sexual harassment and use
of pornographic material for the purpose of sexual offence
against children.
53
Stand-Up India Schem
Stand-Up India Scheme aims at promoting
entrepreneurship among women and scheduled castes and
scheduled tribes. The scheme is anchored by Department
of Financial Services (DFS), Ministry of Finance,
Government of India.
The objective of the Stand-Up India Scheme is to facilitate
bank loans between Rs. 10 lakh to Rs. 1 crore to at least one
SC or ST borrower and at least one woman borrower per
bank branch of all scheduled commercial banks for setting
up a greenfield enterprise.
The process have been led by SIDBI with the involvement
of Dalit Indian Chamber of Commerce and Industry (DICCI)
and various sector-specific institutions all over the country.
The offices of SIDBI and National Bank for Agriculture and
Rural Development (NABARD) has been designated as
Stand Up Connect Centres (SUCC).
54
Consumer Cooperative Stores are set up by :
Consumer Co-operative Stores are set up by the members,
while it is registered by the Registrar of Cooperative societies.
55
215. Consider the following statements :
1. Bank Rate is the rate of interest which RBI charges
its clients on their short-term borrowing.
2. Repo Rate is the rate of interest which RBI charges its
clients on their long-term borrowin
The demand side is important in CPI based inflation. There is
a inverse relationship between all four given instruments of
monetary policy and inflation. Hence, increase in repo rate
and SLR ratio will reduce inflation, while decrease in reverse
repo rate and bank rate will increase the rate of inflation.
Therefore, option (a) and (b) both are correc
56
Fiscal deficit
Total expenditure – Total income / revenue
(Revenue receipts + Non-debt creating capital
receipt)
57
Budget deficit =
Total expenditure – Total receipts
58
Revenue defici
Revenue deficit = Revenue expenditure – Revenue receipts
59
Primary deficit
Primary deficit = Fiscal deficit – Interest paymen
60
International Development Association, a lending
agency, is administered by the :
The International Development Association (IDA) is the part
of the World Bank group. It is an agency administrated by
the International Bank for Reconstruction and Development
(or World Bank) to provide assistance on concessionary
terms to the poorest countrie
61
Sarva Shiksha Abhiyan for universalization of elementary
education was launched by Government of India in the
year
Sarva Shiksha Abhiyan (SSA) is a comprehensive and integrated
flagship programme of Government of India to attain
Universal Elementary Education (UEE), covering the entire
country in a mission mode. SSA has been launched in 2001
in partnership with the State Governments and Local Self
Government. The programme aimed to provide useful and
relevant elementary education to all children in the 6 to 14
age group by 2010. With the introduction of the Right to
Education (RTE) Act 2009, changes were made in the SSA
scheme. In 2018, the Sarva Shiksha Abhiyan and the Rashtriya
Madhyamik Shiksha Abhiyan were subsumed and merged
to form the Samagra Shiksha Abhiyan Scheme (National
Education Mission). Saakshar Bharat and Centrally sponsored
Scheme on Teachers Education (CSSTE) are also part
of it. In 2021, the NIPUN Bharat Mission was launched as
part of Samagra Shiksha Abhiyan to ensure that universal
acquisition of foundational literacy and numeracy skills for
all children in India by Grade 3
62
Abid Hussain Committee
Abid Hussain Committee
has recommended for total abolition of the reservation of
items for the small scale industries. Committee’s Report on
Small Scale Industries (1997) have been regarded as
milestones in India’s economic reforms
63
India National Income is estimated
Statistical officer
64
The Gas Authority of India Ltd. has planned to invest
Rs. 8,000 crores for laying pipelines
State gas utility GAIL India had proposed in 2009 to invest
Rs. 8000 crore in laying a 1,100 km pipeline from Vijaywada
in Andhra Pradesh to Vijaipur in Madhya Pradesh. At
Vijaipur, the proposed pipeline would be connected by
GAIL's cross-country Hazira-Vijaipur-Jagdishpur pipeline
65
India Post has undertaken a Quality Improvement Project
called 'Project Arrow' to transform India Post into a vibrant
and responsive organization. This was launched in April,
2008. Project Arrow entails comprehensive improvement of
the Core Operations of Post Offices as well as the ambience
in which postal transaction undertake
66
The basis of determining the poverty line in India is
Consumption data
67
Headline inflation refers to the change in value of all
goods on the basket. On which basis is the headline inflation
measured?
Combined Consumer Price Index
68
World Bank (IBRD)
World Bank (IBRD) was created at 1944 Bretton Woods
Conference (United Nations Monetary and Financial
Conference), along with the ‘IMF’. But its governing
document and membership became effective from 27
December, 1945. The headquarters of the ‘World Bank’ is
located in Washington, D.C
69
The Indian Economist, who is the Nobel Prize Winner,
is :
(a) D
Amartya Sen is an Indian economist who was awarded the
1998
70
Industrial Finance Corporation of India works as :
IFCI Ltd. (IFCI) was set up a Statutory Corporation (‘The
Industrial Finance Corporation of India’) in 1 July, 1948 for
providing medium and long term finance to industry. IFCI
was the first development financial institution of India set up
to propel economic growth through development of
infrastructure and industry. Since then IFCI has contributed
significantly to the economy through its continuous support
to projects in all the three spheres of growth and development
71
Which of the following is included in Balance of Trade
Balance of Trade (BoT) is the difference between the value
of exports and value of imports of goods of a country in a
given period of time. BoT is said to be in balance when
exports of goods are equal to the imports of goods. Surplus
BoT or trade surplus will arise if country exports more goods
than what it imports. Whereas, Deficit BoT or Trade deficit
will arise if a country imports more goods than what it
exports. Trade balance includes only visible items, while
current account of Balance of Payments (BoP) includes both
visibile and non-visible item
72
103. Which one of the following is likely to be the most inflationary
in its effects
Among all the deficit financing methods, the creation of
new money to finance a budget deficit is the most inflationary
in its effects because it creates more money supply in
the market while the amount of goods does not change and
that creates high inflation in the economy. On the other
hand, borrowing from the public or banks will decrease the
money supply. Hence, option (d) is the correct answer.
73
The headquarters of European Economic Community is
a
European Economic Community (EEC) was created by the
Treaty of Rome in 1957. Its headquarters is located in
Brussels, Belgium
74
ECGC is related to
ECGC Ltd. (Formerly Export Credit Guarantee Corporation of
India Ltd.), wholly owned by Government of India, was set
up in 1957 with the objective of promoting exports from the
country by providing credit risk insurance and related services
for exports. The corporation has introduced various exports
credit insurance schemes to meet the requirements of Indian
exporters and commercial banks extending export credit. Hence
among the given options, option (b) is the most suitable
answer
75
Devaluation
Devaluation of currency means reduction in the value of
currency vis-a-vis major internationally traded currencies. A
key effect of devaluation is that it makes the domestic currency
cheaper relative to other currencies. There are two
implications of a devaluation. First, devaluation makes the
country's exports relatively less expensive and improves the
competitiveness of domestic exports in foreign markets. Second,
devaluation makes foreign products relatively more expensive
for domestic consumers, thus discouraging imports.
This may help to increase the country's exports and decrease
imports, and may therefore help to improve the trade balance.
However, it will not necessarily improve trade balance
as essential imports (e.g. crude oil) can be expensive. Hence,
only statement 1 is correct
76
green bond
green bond is a fixed-income instrument designed specially
to support specific climate-related or environmental projects.
Green bonds typically come with tax incentives to enhance
their attractiveness to investors. They are low cost loans
with generally long-term maturities. Green bonds are financial
market innovation and relatively new asset class, but they
are growing rapidly. Green bonds were first introduced by
European Investment Bank (EIB) in 2007 as 'Climate
Awareness Bond' to fund renewable energy and energy
efficiency projects. Afterwards the World Bank issued a
labelled 'Green Bond' in 2008.
77
Gadgil Committee Report' and 'Kasturirangan Committee
Report', sometimes seen in the news, are related to :
Gadgil Committee Report and Kasturirangan Committee
Report are related to protection of Western Ghats. The
Committee headed by ecologist Madhav Gadgil also known
as the Western Ghats Ecology Expert Panel (WGEEP)
recommended that all of the Western Ghats be declared as
the Ecologically Sensitive Areas (ESA) with only limited
development allowed in graded zones. The Committee undChairmanship of K. Kasturirangan was constituted to
examine the WGEEP report. Kasturirangan Committee in its
report (2013) sought to balance the development and environment
protection and recommended that instead of the
total area of Western Ghats, only 37% of the area to be brought
under ESA.
78
Which of the following is the most important component
of the liabilities of commercial banks in India ?
(a) Demand deposit
Time Deposits are the most important component of the
liabilities of commercial banks and after that Saving deposits
and Demands deposits are the important component of the
liabilities of commercial banks in India.
79
Economic Survey of India is related to :
Economic Survey of India is the flagship annual
document of the Ministry of Finance, Government of India.
It is prepared by the Department of Economic Affairs,
Ministry of Finance under the guidance of the Chief
Economic Adviser. This document is presented to both
Houses of Parliament during Budget Session, before the
Union Budg
80
The name of Arthur Dunkel is associated
Arthur Dunkel was the Director General of the GATT during
1980-1993. He was at the helm of the launch of the Uruguay
Round of multilateral trade negotiations in September, 1986
and steered the multilateral trading system to the doorstep
of what is now known as the World Trade Organization
81
East Asia Summit
82
Provident Fund in India is :
Provident Fund in India is contract based savings. It is a
government managed, mandatory retirement savings scheme.
Provident fund is the portion of the income of employees
that has to be deposited with the government on contract
basis. An employee gives a portion of his/her salary to the
provident fund and an employer should make a contribution
on behalf of his employees. It is government liability, not an
income
83
International Development Association (IDA) was
International Development Association (IDA) was
established on 24 September, 1960. IDA is a member of the
World Bank which offers concessional loans and grants to
the world’s poorest countries. IDA aims to reduce poverty
by providing zero to low interest loans (called ‘credits’) and
grants for programs that boost economic growth, reduce
inequalities and improve people’s living condition
84
Rekhi Committee is not related to simplification of Export and
Import. It was related to indirect taxes. Rekhi Committee was
constituted in 1992. Pairs of remaining three options are
correctly matched.
85
Which of the followings makes recommendation
regarding fixing of minimum support price for various
crops?
Commission for Agricultural Costs and Pri
86
Mid-day Meal Scheme (Now PM POSHAN
Mid-day Meal Scheme (Now PM POSHAN) is financed and
managed by Ministry of Human Resource Development
(Now the Ministry of Education). The Central Government
has decided that the sharing pattern of Mid-day Meal
Scheme will be in the ratio of 60 : 40 for non-NER States and
UTs with Legislature, 100% for rest of UTs and 90 : 10 for
NER States and 3 Himalayan States w.e.f. 2015-16.
87
In which year UNO adopted a definition of absolute
poverty?
1995, UNO adopted a definition of absolute poverty. As
per the definition, absolute poverty is a condition
characterized by severe deprivation of basic human needs,
including food, safe drinking water, sanitation facilities,
health, shelter, education and information. It depends not
only on income but also on access to services. According
to the latest official estimates of the World Bank, in 2017, 9.3
percent of the world’s population or 696 million people lived
on less than 1.90 US$ (2011 PPP ; International Poverty
Line) a day. It is estimated that Global extreme poverty rose
in 2020 for the first time in over 20 years as the disruption of
the COVID-19 pandemic.
88
PURA (Providing Urban Amenities to Rural Areas) model
was advocated by
Providing Urban Amenities to Rural Areas (PURA) is a
strategy for rural development in India. This concept was
given by the former President Dr. A.P.J. Abdul Kalam. On
the eve of India’s 54th Republic Day, in 2003, Dr. Kalam
addressed the nation explaining them his vision of
transformation of rural India through PURA model. PURA
was envisaged as a self-sustainable and viable model of
service delivery to be managed through an implementation
framework between the different stakeholders involved,
namely local people, pubic authorities and the private sector
89
62. In calculation of Index of wholesale prices which one of
the following sectors is assigned maximum weightage
Manufactured products
U
90
It is a method of making automatic predictions about the
interest of a user by collecting preferenc
Collaborative filtering is a way recommendation systems
filter information by using the preferences of other people.
It uses the assumption that if person A has similar
preferences to person B on items they have both reviewed,
then person A is likely to have a similar preference to person
B on an item only person B has reviewed.
91
Which one of the following is not a source of direct
finance?
of the above given institutions are sources of direct
finance. NABARD does not provide direct finance to
individuals, but it provides direct finance to food parks,
warehouses, cold chains and storages, marketing
federations etc. while RRBs, SBI and Allahabad Bank
provide direct finance to individuals as well as industries
and other sectors.
92
Name the Indian State which has the maximum percentage
of educated unemployed persons ?
93
Which factor can be highly supportive in achieving
economic growth rate of 8% or more in the near future
in India?
The execution of stalled productive projects can be proved
to be most helpful in attaining the growth rate of 8% or more
in near future in India. However other factors like implementation
of Goods and Services Tax, skill development of labour
force and easing the process of doing business can also
result in higher growth in long-term
94
12. The sum of which of the following constitutes Broad
Money in India?
1. Currency with the public
2. Demand deposits with banks
3. Time deposits with banks
4. Other deposits with RBI
Choose the correct answer using the co
) 1, 2, 3 and 4
95
The Chairman of public sector banks are selected by
the :
Chairmen and other top officials of public sector banks are
selected by the Bank Board Bureau (BBB)
96
MPLADS
On 3rd December, 1993 Prime Minister had announced the
Members of Parliament Local Area Development Scheme
(MPLADS). The objective of the scheme is to enable MPs to
recommend works of developmental nature with emphasis
on the creation of durable community assets like physical
infrastructure for health, education, sanitation, road and
drinking water etc. Hence, statement (1) is correct.
MPs recommend every year, works costing at least 15% of
the MPLADS entitlement for the year for areas inhabited by
Scheduled Caste population and 7.5% for areas inhabited by
Scheduled Tribe population. Hence, statement (2) is correct.
Funds released under MPLADS are non-lapsable i.e. if the
money is not used, it gets carried to the next year. Hence,
statement (3) is incorrect.
The district authority is responsible for overall coordination
and supervision of the scheme and inspect at least 10% of all
works under implementation every year. Hence, statement
(4) is correct
97
Handbook of Agriculture is published f
Handbook of Agriculture is published by the Indian Council
of Agricultural Research (ICAR).
98
Special Economic Zone policy
The Special Economic Zone (SEZ) policy in India first came
into inception on 1 April, 2000. Its prime objective was to
enhance foreign investment and provide an internationally
competitive and hassle free environment for exports. The
idea was to promote exports from the country and realizing
the need that level playing field must be available to the
domestic enterprises and manufacturers to be competitive
global
99
Note issuing department of RBI should always possess
the minimum gold stock of worth :
The system of note issue by the Reserve Bank of India was
founded on the proportional reserve system which was
replaced by a system of minimum holding of foreign securities
(Minimum Reserve System) of Rs. 400 crore and gold coin
and bullion of Rs. 115 crore or a total of Rs. 515 crore in 1956.
Under the Reserve Bank (Second Amendment) Act, 1957, the
aggregate value of gold coin, gold buillion and foreign
securities in the Issue Department was stipulated at not less
than Rs. 200 crore at any time, of which the value of gold coin
and bullion should at no time be less than Rs. 115 crore.
These stipulations have not been revised since then.
100
Free Trade Policy refers to a policy where there is
free trade policy is a pact between two or more nations to
reduce barriers to imports and exports among them. Under a
free trade policy, goods and services can be bought and sold
across international border with little or no government tariffs,
quotas, subsidies or prohibition to inhibit their exchange
101
The Apex institution in the field of Industrial finance in
Indi
Industrial Development Bank of India (IDBI) was
established in July, 1964 as an apex financial institution for
industrial development in the country. It caters to diversified
needs of medium and large scale industries in the form
of financial assistance, both direct and indirect. Direct
assistance is provided by way of underwriting of or direct
subscription to industrial securities, soft loans, project loans
etc. while indirect assistance is provided in the form of
refinance facilities to industrial concerns. In 2004, Reserve
Bank of India incorporated IDBI as a ‘scheduled bank’
under the RBI Act, 1934.
102
sector in the planning mean
The core sector in the planning implies selected basic
industries. These are : Electricity, steel, refinery products,
crude oil, coal, cement, natural gas and fertilizers.These have
a major impact on general economic activities and also on
industrial activities. The core sector represents the capital
base of the Indian economy
103
The Capital Account Convertibility of the Indian Rupee
implies
) that the Indian Rupee can be exchanged for any major
currency for the purpose of trading financial assets
104
Which one of the following is not the method of
quantitative credit control?
Rationing of credit
105
142. 'Twenty Point Economic Programme' was first launched
in the ye
The Twenty Point Programme (TPP) was launched by the
Government of India in 1975. Its main objective was to
promote agricultural and industrial production with
eradication of poverty and improvement in the quality of life
of the common man. The programme was first revised in
1982 and again in 1986. It was again restructured in 2006,
keeping in view the challenges of the 21st Century with
particular reference to the process of economic reforms.
106
On what basis is the inflation rate measured in India?
India, the rate of inflation is generally measured on the
basis of Consumer Price Index (CPI), Wholesale Price Index
(WPI) and Labour Cost of Living Index. At present, RBI uses
Consumer Price Index (CPI) (Combined) to measure inflation
107
On what basis is the inflation rate measured in India?
India, the rate of inflation is generally measured on the
basis of Consumer Price Index (CPI), Wholesale Price Index
(WPI) and Labour Cost of Living Index. At present, RBI uses
Consumer Price Index (CPI) (Combined) to measure inflation
108
186. Consider the following statements about Kisan Credit
Card Scheme –
1. The Kisan Credit Card scheme was launched in the
year 2001.
2. This scheme provides adequate and timely credit
support to the farmers for their cultivation needs.
Of these :
(a) Only 1 is correct
(b) Only 2 is correct
(c) 1 and 2 both are corre
Only 2 is correct
109
Consider following statements about Rashtriya Krishi
Vikas Yojana and state which one of them is incorrect?
Rashtriya Krishi Vikas Yojna (RKVY) was launched in
August, 2007. Therefore option (a) is correct. In the 11th Five
Year Plan, the total outlay of Rs. 25000 crore was fixed for
the RKVY, hence option (b) is also correct. Till 2013-14, the
scheme was implemented as an Additional Central Assistance
(ACA) to State plan scheme with 100% central assistance.
Thus, option (c) is incorrect. Statement of option (d)
is correct. RKVY was converted into a Centrally Sponsored
Scheme in 2014-15 also with 100% central assistance. Since
2015-16, the funding pattern of the scheme has been altered
in the ratio of 60 : 40 between Centre and States (90 : 10 for
Northern Eastern States and Himalayan States). For Union
Territories the funding pattern is 100% central grant.
The Union Cabinet has approved (as on 1st November, 2017)
for continuation of this scheme as Rashtriya Krishi Vikas
Yojna – Remunerative Approaches for Agriculture and
Allied Sector Rejuvenation (RKVY-RAFTAAR) for three
years i.e. 2017-18 to 2019-20 with a financial allocation of
Rs. 15722 crore
110
In India, service sector includes :
I. Mining and Quarrying
II. Transport and Communication
III. Hotels
IV. Forestry and Fishing
Select the correct answer from the codes given below :
Code :
(a) Only I and II (b) Only II and III
(c) Only III and IV (d) Only I and
Only II and III
111
In India, deficit financing is used for raising resources
for :
country like India, the main objective of deficit
financing is to encourage economic development in the country.
It is considered as the most popular method of raising
additional resources for economic development. The erstwhile
Planning Commission has defined the term as
"deficit financing is used to denote the direct addition to
gross national expenditure through budget deficit whether
the deficits are on the revenue account or on capital
account." In the developing countries, it becomes mandatory
for financing of development schemes, while for the
developed countries it is used as a tool of economic policy
to emerge the economy from economical stres
112
One of the reasons for India's occupational structure
remaining more or less the same over the years has been
that:
The occupational structure of any country is defined by the
segment of a country's population that is engaged in economic
ventures and various professions. In India after
independence, inspite of multiple times increase in GDP and
inspite of huge changes in the share of primary, secondary
and tertiary sector in GDP, the occupational structure is still
more or less remained the same as it was earlier. The main
reason behind that is the investment pattern has been directed
towards capital intensive industries. It has been one ochief criticisms of the planning in India, which emphasised
the capital intensive industries in place of promoting the
labour intensive industries. The efforts of the planners with
regard to the development of the industries turned beneficiary
towards the large scale capital sector, whilst the small scale
and cottage industries failed to respond to the developments.
The large scale industries are intensively capital oriented,
and their development failed to procure employment to the
workforce.
113
National Manufacturing Policy was introduced by the
Government of India i
114
National Renewal Fund has been established for :
retraining of labour
115
largest producer and exporter of long staple cotton
in the world
116
What is meant by a Bullock Capitalist?
The self-employed and self-funded producers with holdings
large enough to support pair of bullocks are defined as ‘Bullock
Capitalists’ by Lloyd and Susanne Rudolph (1987), while
denoting the crucial role of public subsidies in preserving
this faction of informal agrarian capitalism. They are small to
medium-sized, self-employed agricultural producers who
have some resources but are not rich
117
The central issue in Doha Round of talks of World Trade
Organization was
Doha round is the latest round of trade negotiations
among the WTO members. Its aim is to achieve major reform
of the international trading system through the introduction
of lower trade barriers and revised trade rules. The Doha
Round was officially launched at WTO’s 4th Ministerial
Conference in Doha, Qatar in November, 2001. The central
issue in Doha round of talks of WTO has been the subsidies
on agriculture and regulations on agricultural import.
Agriculture has become the most important and
controversial issue, as it is particularly important for the
developing countries.
72. Which one of the
118
42. Match List-I and List-II and select the correct answer
using the codes given below the lists :
List-I List-II
A. Inequality 1. Joseph E. Stiglitz
Reexamined
B. The Price of 2. Thomas Piketty
Inequality
C. Inequality : 3. Amartya Sen
What Can Be Done
D. The Economics 4. Anthony B. Atkinson
of Inequality
Codes :
A B C D
(a) 4 3 2 1
(b) 3 4 1 2
(c) 2 3 1 4
(d) 3 1 4 2
Book Economist
Inequality Reexamined – Amartya Sen
The Price of Inequality – Joseph E. Stiglitz
Inequality : What Can Be Done – Anthony B. Atkinson
The Economics of Inequality – Thomas Piket
119
Minimum Support Price is decided b
CACP
120
Which of the following price index is used to compensate
the wages of Central Government employees?
Consumer Price Index for Industrial Workers (CPI-IW) is used
to compensate the wages of Central Government employees.
It is generally argued that WPI inflation is not an appropriate
index to determine the impact of price rise on the cost of
living of the common man. Rather, the Consumer Price Index
for Industrial Workers (CPI-IW), which also includes selected
services and is measured on the basis of retail prices, and is
used to determine the dearness allowance of employees in
both the public and private sectors, is the appropriate
indicator of general inflation. Food items have higher weights
in CPI-IW than in WPI.
121
Bhilai Steel Plant is a-----------enterprise
Public Sector
122
given code :
A. OGL, FOB 1. Employment
B. SJRY, TRYSEM 2. External trade
C. WPI, CPI 3. Banking
D. CRR, SLR 4. Index number
Codes :
TRYSEM : Training of Rural Youth for Self-Employment
SJRY : Swarna Jayanti Rozgar Yojana
OGL : Open General License
FOB : Free on Board, a value determined word, which is
related to trade
WPI : Whole-sale Price Index
CPI : Consumer Price Index
CRR : Cash Reserve Ratio
SLR : Statutory Liquidity Ratio
Hence, option (a) is the correct
123
. Match List-I with List-II and select the correct answer
using the codes given below the lists :
List-I List-II
(Type of Organization) (Important Features)
A. Sole trader 1. Large number of
risk bearers
B. Partnership 2. Betterment of
weaker sections
C. Co-operatives 3. Contractual Relationship
D. Public Limited Company 4. Unlimited liability
Codes :
A B C D
(a) 1 2 3 4
(b) 4 3 2 1
(c) 4 2 3 1
(d) 1 3 2 4
sole trader / sole proprietorship firm, the liability of the
proprietor is unlimited, i.e. it is in addition to the capital
investment in the firm. Partnership is a contractual relationship
that means a partnership is entered into by an
agreement which can be written or oral. The primary goal of
cooperative is to serve the members and not to make profit.
In a public limited company, the company raises capital from
the sale of its shares, so there is a large number of risk takers
124
109. Consider the following :
1. Regional Rural Banks 2. Lead Bank Scheme
3. NABARD 4. State Bank of India
Bank Year of Establishment
State Bank of India – 1955
Lead Bank Scheme – 1969
Regional Rural Banks – 1975
NABARD – 1982
125
National Institute for the Visually Handicapped is
situated at :
Dehradun
126
Gandhian Plan was expounded in 1944 by :
the light of the basic principles of Gandhian economics,
Shriman Narayan Agarwal propounded 'The Gandhian Plan'
in 1944 in which he put emphasis on the expansion of small
unit production and agriculture. The fundamental feature of
the Gandhian Plan was the decentralization of economic structure
with self-contained villages and cottage industrie
127
Global Financial Stability Report’
Global Financial Stability Report’ is prepared by the
International Monetary Fund (IMF). The report is released
twice in a year in the month of April and October. The report
provides an assessment of the global financial system and
markets, and addresses emerging market financing in a global
context. It focuses on current market conditions, highlighting
systematic issues that could pose a risk to financial stability
and sustained market access by emerging market borr
128
Consider the following statements :
1. Gorewala Committee’s recommendation led to the
establishment of State Bank of India.
2. Six Commercial Banks were nationalized on April
15, 1980.
Which one of the statements given above is/are correct ?
The All-India Rural Credit Survey Committee, which is also
known as A.D. Gorewala Committee had recommended to the
establishment of State Bank of India through combining the
Imperial Bank of India and some State’s affliated banks. The
six commercial banks were nationalized on April 15, 1980 by
the Government of India. Hence both of the given statements
are correct
129
Which one of the following organization is the main
regulator of stock markets in India?
Security and Exchange Board of India
130
Money Laundering Act (PMLA), 2002 w
Prevention of Money Laundering Act (PMLA), 2002 was
enacted by the then NDA government to prevent money
laundering and to provide for confiscation of property derived
from money laundering. This Act got the assent of the
President on 17 January, 2003. PMLA and the Rules notified
there under came into force with effect from July 1, 2005
131
Who is the Father of 'Modern Economics'?
Adam Smith was a Scottish economist and philosopher. He
is known as 'The Father of Modern Economics' or 'The
Father of Capitalism
132
Consider the following events and arrange these in
chronological order :
I. Development of sugar industry by Indians
II. Starting of first jute mill in Rishra
III. Production of steel in India for the first time
IV. Starting of first textile mill in Bombay
In the year 1903, there was an advent of modern sugar
processing in India and set up the first sugar mill (United
Province Sugar Company) at Pratappur (Deoria, Uttar
Pradesh). In mid-1920s, the number of sugar mills sprang up
in UP and Bihar. By 1930-31, there were 29 sugar factories
producing 100000 MT of sugar.
The first jute mill was established by British entrepreneur
George Acland and Bengali financier Babu Bysumber Sen in
Rishra, near Serampore in Bengal (now in West Bengal) in
1855.
The first attempt to establish an iron and steel industry in
India on modern lines was made in 1830, by Josiah Marshall
Heath, a member of the Civil Service of the East India
Company. After leaving the public service, he invested the
whole of his fortune in a steel plant, which he erected at
Porto Novo on the Madras coast. The steel produced here
was of good quality and was exported to England.
Bombay Spinning and Weaving Company was the first
cotton mill to be established in Bombay, India, on 7 July,
1854 at Tardeo by Cowaszee Nanabhoy Davar (1815-73) and
his associates.
Hence, the correct chronological (descending) order is given
in option (a).
133
Where is Indira Gandhi Rashtriya Manav Sangrahalaya
located?
Indira Gandhi Rashtriya Manav Sangrahalaya is located in
Bhopal, Madhya Pradesh. Its objectives are to present an
integrated story of the Evolution of man and culture with
special reference to India; to take steps to salvage and
preserve the fast vanishing aspect of the Indian culture; to
promote and conduct research in the related subjects and
provide funds; etc.
134
Sarva Shiksha Abhiyan 1. 1987
B. Sakshar Bharat Mission 2. 1988
C. Operation Black Board 3. 2001
D. National Literacy Mission 4. 2009
The correctly matched lists are as follows :
Sarva Shiksha Abhiyan – 2001
Sakshar Bharat Mission – 2009
Operation Black Board – 1987
National Literacy Mission – 1988
135
National Institute of Rural Development is located in :
National Institute of Rural Development and Panchayati Raj
is situated at Hyderabad in Telangana State. It is an
autonomous organization under the Ministry of Rural
Development
136
Mid-day Meal Scheme
Mid-day Meal Scheme : With a view to enhancing enrollment,
retention and attendance and simultaneously improving
nutritional level among children, this scheme was started
from 15 August, 1995 under the name of ‘National Programme
of Nutritional Support to Primary Education’ (NP-NSPE). Its
objective was to boost universalization of primary education
and to improve the nutritional status of children by the
food being given to them at the school. In September, 2004
the scheme was revised to provide cooked mid-day meal to
all children studying in classes I-V in Government and aided
schools and EGS/AIE centres. In 2007, the scheme has been
further revised to cover children in upper primary classes (VI
to VIII) and renamed as ‘National Scheme for Mid-day Meal
in Schools’. From 2008-09, the programme covers all children
studying in Government, Local Body and Government-aided
primary and upper primary schools and the EGS/AIS centres
including Madarsas and Maqtabs supported under SSA of
all areas across the country. In September, 2021, the Mid-day
Meal Scheme is renamed as ‘National Scheme for PM
POSHAN (Poshan Shakti Nirman) in Schools’
137
Letter of Credit has to be produced by :
Letter of Credit (L/C) is a written undertaking by the
importer's bank, known as the Issuing Bank, on behalf of its
customer, the Importer (Applicant), promising to effect
payment in favour of the Exporter (Beneficiary) up to a stated
sum of money, within a prescribed time limit and against
stipulated documents. After the trading parties agree on a
sale of goods, the Importer requests that its bank (the Issuing
Bank) issue a Letter of Credit in favour of the Exporter
138
Monetary Policy is :
Monetary policy is complementary to fiscal policy. They are
interrelated and have to be judiciously combined to promote
and stabilize the economic activity. Monetary policy
influences the aggregate demand, and, in turn, output, income
and employment, indirectly by regulating the flow of credit
and money supply while fiscal policy has direct, through
lagged, impact on aggregate demand. Monetary policy is
more effective during inflation, while fiscal policy is more
effective during deflation
139
Money received by the Government under the 'State
Provident Funds' is credited to the :
The Constitution of India provides three types of funds of
the Central Government : (i) Consolidated Fund of India (ii)
Contingency Fund of India (iii) Public Account of India.
Money received by the Government under the ‘State
Provident Funds’ is credited to the Public Accounts Fund.
140
Foreign currency which has a tendency of quick
migration is call
Hot currency (or money) signifies currency that quickly and
regularly moves between financial markets, that ensures
investors lock in the highest available short-term interest rates.
Hot money continuously shifts from countries with lowinterest
rates to those with higher rates. These financial
transfers affect the exchange rate and potentially impact a
country’s balance of payments.
141
Consider the following Credit Rating Agencies and
arrange them in chronological order :
1. CARE 2. ICRA
3. CRISIL
Select the correct answer from the codes given below:
Codes :
Credit Rating Agency Set up Year
CARE — 1993
ICRA — 1991
CRISIL — 1987
142
Repurchase Option’ is used
Repurchase Option’ (or Repo Rate) is used by the Reserve
Bank of India (RBI) to regulate the money supply and inflation
in the economy. Hence, option (d) is the correct answer
143
The main objective of Vishesh Krishi and Gram Udyog
Yojna is :
The main objective of the Vishesh Krishi and Gram Udyog
Yojna (VKGUY) is to promote agricultural export. VKGUY
compensates the high transport costs (from village to port/
airport for export) and offset other disadvantages to
promote exports of the following products :
(i) Agricultural produce and their value-added products;
(ii) Gram Udyog products;
(iii) Minor forest produce and their value-added variants;
(iv) Forest based products; and
(v) Other such products notified.
144
Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India
(ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development
(NABARD)
Institution Year of Establishment
Industrial Finance Corporation 1948
of India (IFCI)
Industrial Credit and Investment 1955
Corporation of India (ICICI)
Industrial Development Bank of 1964
India (IDBI)
145
Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India
(ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development
(NABARD)
Institution Year of Establishment
Industrial Finance Corporation 1948
of India (IFCI)
Industrial Credit and Investment 1955
Corporation of India (ICICI)
Industrial Development Bank of 1964
India (IDBI)
146
MRTP Act
2. Industries (Development and Regulation) Act
3. FERA
4. Minimum Wages Act
Minimum Wages Act – 1948
Industries (Development – 1951
and Regulation) Act
MRTP (Monopolistic and – 1969
Restrictive Trade Practices) Act
FERA (Foreign Exchange – 1973
Regulation Act)
147
The Right to Education Act, 2009 aims at making a free
and compulsory education a right for children upto :
Right of Children to Free and Compulsory Education
Act or Right to Education (RTE) Act, 2009 became effective
on April 01, 2010 under which elementary education of
children aged between 6-14 years made free and mandator
148
40. A rapid increase in the rate of inflation is sometimes
attributed to the 'base effect'. What is 'base effect'?
Base effect' refers to a kind of statistical anomaly that causes
steep hike or decline in the rate of price rise or fall because
the current prices are compared relative to the previous period.
If last year's price of certain articles is low and this year
it has returned to its normal price, yet the rate of increase,
which is relative to the last year's price, is shown high.
149
Deficit financing creates additional paper currency to
fill the gap between expenditure and revenue. This device
aims at economic development. But if it fails, it generates :
Inflation
150
which of the following countries, zero-based budgeting
was first adopted
Zero-based budgeting (ZBB) is a method of budgeting in
which all expenses must be justified for each new period.
Zero-base budget technique involves a critical review of
every scheme before a budgetary provision is made.
Developed by Peter Pyhrr in the 1970s, zero-based
budgeting starts from a ‘zero base’ at the beginning of every
budget period, and every function within an organization is
analyzed for its needs and costs. Jimmy Carter, then
Governor of Georgia (U.S.), was the first to adopt the process
of zero-base into the government in 1973 budget. Three
years later, the U.S. federal government for the first time
implemented zero-based budgeting in ‘The Government
Economy and Spending Reform Act, 1976’.
In India, the Department of Science and Technology was
the first to introduce zero-based budgeting in 1983 and in
1986, the Indian government adopted zero-based budgeting
for determining expenditure budget
151
World Development Report' is an annual publication of :
World Development Report is an annual report
published by International Bank for Reconstruction and
Development (or World Bank)
152
The apex organization for marketing cooperatives at the
national level is
NAFED
153
The G20 (or Group of Twenty) isThe G20 (or Group of Twenty) is an international forum for
the governments and central bank governors from 19
countries and the European Union (EU). It was founded in
1999 with the aim to discuss policy related to global
economics and finance. The members of G20 are – Argentina,
Australia, Brazil, Canada, China, France, Germany, India,
Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia,
Saudi Arabia, South Africa, Turkey, The United Kingdom,
The United States and The European Union. Hence, option
(a) is the correct answer.
154
Long term credit to small and medium enterprises is
provided in Uttar Pradesh through
.P. Small Industries Corporation, U.P. Industrial Development
Corporation and U.P. Finance Corporation are providing
long term credit to small and medium enterprises in Uttar
Prad
155
which of the following Five Year Plans anti-poverty
programmes based on the theme ‘Garibi Hatao’ was first
introduced
Fifth Five Year Plan
156
That the Per Capita Income in India was Rs. 20 in
1867-68, was ascertained for the first time b
Dadabhai Naoroji was the first to estimate national income in
1867-68. According to his estimate the Per Capita Income of
India was Rs. 20 at that time
157
Blue Chip mea
A Blue Chip stock is the stock of a huge company with an
excellent reputation. They are typically large, well established
and financially sound companies that have operated for many
years and that have dependable earnings, often paying
dividends to their investors. These shares give consistently
high rate of return to their investors.
158
. Which one of the following institutions is related to export
financing and insurance ?
ECGC
159
redistribution of income in a country can be best
brought about throug
Redistribution of income and wealth are respectively the
transfer of income and wealth (including physical property)
from some individuals to others by means of taxation,
monetary policies, welfare policies, public services, land
reforms etc. This can be achieved with a combination of
progressive taxation and progressive expenditure. A
progressive tax is one where the average tax burden increases
with income. It applies higher tax rates to higher levels oincome. High-income families pay a disproportionate share
of the tax burden, while low-and middle-income taxpayers
shoulder a relatively small tax burden. Regarding the
distributive impact of public expenditure, the principle of
maximum social welfare should be the underlying criteria of
public spending. Therefore, progressive public expenditure
(like free medical aid, free education, subsidized houses etc.
to poors) is the best antidote to reduce income inequality
existing in the society
160
P. Sengupta and G. Sdasyuk (1968) had divided India into
how many micro agricultural regions?
. Sengupta and G. Sdasyuk (1968) presented a three-tier
division of India’s agricultural regions–
(a) On the basis of Climatic conditions : 4 macro regions.
(b) On the basis of Physiographic conditions : 11 meso (or
mega) regions.
(c) On the basis of crop combinations : 60 micro region
161
The payment of foreign trade is related with :
Imports and Exports both are included in foreign trade. So
that, Balance of Payment can't be related alone with 'the
merits of imports' or 'the merits of exports'. While the multiplier
of foreign trade defines the amount by which the
national income of a country will be raised by a unit increase
in exports. Balance of payment is a account of international
transactions (in which foreign trade is included) of any
country for a specific time period (normally one year). Hence,
option (d) is the correct answer.
162
South Asian
Association of Regional Cooperation’ (SAARC
163
Which of the following organizations is involved in
providing the insurance against various risks to the
exporters
Export Credit and Guarantee Corporation
U.P.P.C.S. (Mai
164
Which of the following Institution/Office bring out the
Wholesale Price Index (WPI) data in India?
Wholesale Price Index (WPI) series is compiled by the
Office of Economic Adviser (OEA), Ministry of Commerce
and Industry, on a weekly basis, based on the price quotations
collected by the official as well as non-official source
agencies on selected items and commodities identified in
the basket of the index
165
The first ever summit meeting of ‘BRIC Countries’ took
place at :
China
166
Term ‘Balance of Payment’ is used in relation to which
of the following ?
Balance of Payments (BoP) records the transactions in
goods, services and assets between residents of a country
with the rest of the world for a specified time period typically
a year. The balance of payments includes both the current
account and capital account. The current account records
exports and imports in goods and services and transfer payments,
while the capital account records all international
purchases and sell of assets such as money, stocks, bonds,
etc.
167
Term ‘Balance of Payment’ is used in relation to which
of the following ?
Balance of Payments (BoP) records the transactions in
goods, services and assets between residents of a country
with the rest of the world for a specified time period typically
a year. The balance of payments includes both the current
account and capital account. The current account records
exports and imports in goods and services and transfer payments,
while the capital account records all international
purchases and sell of assets such as money, stocks, bonds,
etc.
168
Which one of the following links all the ATMs in India?
National Financial Switch (NFS) was designed, developed
and deployed by the RBI’s Institution for Development and
Research in Banking Technology (IDRBT) in 2004, with the
goal of inter-connecting the ATMs in the country. NFS was
taken over by the National Payments Corporation of India
(NPCI) from IDRBT in December, 2009. NFS provides the
linkages to ATM network in India. Therefore, option (c) is
the correct answ
169
. The proportion of labour in GNP (Gross National
Product) becomes low due to the following reason :
Low share of labour in Gross National Product is due to low
wages as compared to prices. Price rise is an important
characteristics of Indian economy due to which if there is an
increase in wages then also the resulting profit will be low
170
282. In the parlance of financial investments, the term ‘bear’
denotes
Bears are the investors who expect the prices of securities to
fall and they sell the securities and buy again when the prices
actually fall.
171
282. In the parlance of financial investments, the term ‘bear’
denotes
Bears are the investors who expect the prices of securities to
fall and they sell the securities and buy again when the prices
actually fall.
172
The first Export Processing Zone of Asia was set up in
1965 in
Kandla
173
The most appropriate measure of a country’s economic
growth
Per Capita Product (PCP
174
Money multiplier
define money multiplier as the ratio of the stock
of money or Broad Money (M3
) to the stock of high powered
money or Reserve Money (M0
or Rm
). So if money multiplier
is K, then K = M3
/M0
or M3
/Rm
.
175
The licensing policy for the industries drew strength
from
The licensing policy for the industries drew strength from
the Industries (Development and Regulation) Act, 1951. The
main objectives of the Act are to empower the Government :
1. to take necessary steps for the regulation and
development of important industries.
2. to implement the Industrial Policy.
3. to regulate the pattern and direction of industrial
development.
4. to control the activities, performance and results of
industrial undertakings in the public interest.
A system of licensing is introduced under the Act to
regulate planning and future development of new
undertaking on sound and balance lines and may be
deemed expedient in the opinion of the Central
Government.
176
The economist who for the first time scientifically determined
National Income in India :
177
Gulf
Cooperation Council
The Cooperation Council for the Arab States of the Gulf,
originally known as the Gulf Cooperation Council (GCC) is
a regional political and economic intergovernmental union,
which was established in 1981. Its members are : Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the United Arab
Emirates (UAE). It is headquartered in Riyadh (Saudi Arabi
178
. The most volatile part of the Organized Money Market
in India
Call money market deals in short-term finance repayable on
demand, with a maturity period varying from overnight to
14 days. It is the most volatile part of the organized money
market in India as the interest rate paid on call money loans,
known as the call rate, is highly volatile. It is the most
sensitive section of the money market and the changes in
the demand for and supply of call loans are promptly
reflected in call rates.
179
HAL is related to manufacturing of
Hindustan Aeronautics Limited (HAL) is an Indian stateowned
aerospace and defence company headquartered in
Bangalore (Bengaluru). HAL was originally established as
Hindustan Aircraft Limited in Bangalore on 23 December
1940, by Walchand Hirachand in association with the then
Kingdom of Mysore. In 1947 the management of the
company was passed over to the Government of India. It
was restructured as Hindustan Aeronautics Limited on
1 October, 1964. It is mainly related to manufacturing of
Aircraft
180
108. India is a member of which of the following?
1. Asian Development Bank
2. Asia-Pacific Economic Cooperation
3. Colombo Plan
4. Organization for Economic Cooperation and
Development (OECD)
Select the correct answer using the code given below :
(a) 1 and 3 (b) 2 and 4
(c) 1, 2 and 3 (d) 1, 2, 3 and 4
I.A.S.
India was a founding member of the Asian Development
Bank (ADB) in 1966. Today, the country is ADB's 4th largest
shareholder and its top borrower since 2010. India was also
a founding member of Colombo Plan in 1951. India is not a
member of Asia-Pacific Economic Cooperation (APEC) and
Organization for Economic Cooperation and Development
(OECD)
181
Who had suggested the imposition of ‘expenditure tax’ in
India for the first time
order to widen the tax base, Kaldor in his tax reform proposal
for India, suggested the imposition of 'expenditure tax'
in India for the first time. He also suggested to introduce
wealth tax, property tax and gift tax. Expenditure tax was
abolished in India from April 1962. Kaldor was a Cambridge's
economist and citizen of Britain. He had been advisor to
Labour Government in Britain from the year 1964. Besides
this he had been invited in many countries as tax advisor
182
Marginal Man'
Marginal Man' is a sociological concept which was
propounded by an American urban sociologist Robert Erza
Park in his article 'Human migration and the marginal man'
(1926). The concept was further developed by E.V.
Stonequist. The concept of 'Marginal Man' explains how an
individual suspended between two cultural realities may
struggle to establish his or her identity
183
phrase 'Missing women' was coined 4
The phrase 'Missing women' was coined by Amartya Sen in
1990 when he showed that in parts of the developing world,
the ratio of women to men in the population is suspiciously
low. The term 'Missing women' indicates a shortfall in the
number of women relative to the expected number of women
in a region or country.
184
phrase 'Missing women' was coined 4
The phrase 'Missing women' was coined by Amartya Sen in
1990 when he showed that in parts of the developing world,
the ratio of women to men in the population is suspiciously
low. The term 'Missing women' indicates a shortfall in the
number of women relative to the expected number of women
in a region or country.
185
Melt down
Melt down refers to an event like steep fall in stock marketsand mortgages
186
recession
recession is a situation of massivecontraction of economic activities
187
Who is the author of the book 'Wealth of Nations' ?
Adam Smith is the author of the book 'An inquiry into the
Nature and Causes of the Wealth of Nations' (1776). It is a
fundamental book on Classical Economics
