(1) Debt obligations of Government of India (Government liabilities)
I) State provident funds II) Small savings III) Reserve funds and deposits IV) Consolidated funds of India
Codes :
A) II and III are correct.
B) I, II, III are correct.
C) II, III and IV are correct.
D) I, III and are correct.
Ans) B
(2) Identify the chronology of the following committees on tax reforms in India :
I) Committee on taxation of agricultural income and wealth II) Kaldor proposal for tax reform in India III) Taxforces on direct and indirect taxes
IV) Direct taxes adminstration enquiry committee
Codes :
A) II, I, IV, III
B) II, IV, I, III
C) II, III, I, IV
D) I, III, IV, II
Ans) B
(3) Which of the following are the role of Finance Commissions in India ?
I) To make recommendations on the distribution of tax proceeds between centre and states. II) To make recommendations on levying, removing or restructuring of taxes.
III) To recommend Grant-in-aides under article 275 of the Constitution. IV) To recommend plan and other grants under article 282 of the Constitution.
Codes :
A) I and II are correct.
B) I and III are correct.
C) I, III and IV are correct.
D) All are correct.
Ans) B
(4) Under a managed floating exchange rate system, the nation's monetary authorities intervene in foreign exchange market to -
A) Smooth out short-run and long-run fluctuations in exchange rates
B) Keep exchange rates fixed among a group of nations
C) Smooth out short-run fluctuations in exchange rates
D) Keep exchange rates flexible
Ans) C
(5) Match the following:
List-I
a) WTO b) IMF c) SAARC d) IDA
List-II
1) Provide finance to correct disequilibrium in balance of payments. 2) Generally forbids the use of quantitative restrictions in trade.
3) Sanction of soft loans. 4) Promotes trade among South Asian Countries.
Codes :
a b c d
A) 1 2 3 4
B) 2 3 4 1
C) 2 1 4 3
D) 3 2 4 1
Ans) C
(6) A sudden shift from import tariff to free trade may induce short term unemployment in -
A) Import competing industries
B) Industries that are only exporters
C) Industries that sell domestically as well as export
D) Industries that neither import nor export
Ans) A
(7) The immediate cause for the collapse of the Bretton woods system was -
A) The expectation that the USA would soon be forced to devalue the dollar.
B) The massive fight of liquid capital from the USA.
C) The attempt by three small European Central Banks to convert part of their dollar holding into gold at the Federal Reserve Bank.
D) All of the above.
Ans) D
(8) A feasible effect of international trade is that -
A) A monopoly in the home market becomes an oligopoly in the world market.
B) An oligopoly in the home market becomes a monopoly in the world market.
C) A purely competative firm in the home market becomes an oligopolist.
D) A purely competative firm in the home market becomes a monopolist.
Ans) A
(9) The European Union has all of the following, except -
A) Adopted a common fiscal policy for member nations.
B) Established a common system of agricultural price supporters.
C) Disbanded all tariffs between its member countries.
D) Levied common tariffs on products imported from non-members.
Ans) A
(10) A Free Trade Zone (FTZ) is -
A) A regional area within which trade with foreign nations is allowed.
B) A free trade agreement among several nations.
C) Designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically.
D) Designed to limit exports of manufactured goods by placing import taxes on goods made within the zone.
Ans) C
(11) The formula that shows the correct relationship between -
I) The supply of high powered money (H)
II) The currency (C) III) The money supply
IV) Required reseves (RR) V) Excess reserves
VI) Demand deposits (D), is -
A) M/H = D+C/C+RR+ER
B) H/M = D+C/C+RR+ER
C) M/D+C = C+RR+ER/H
D) H/M = C+RR+ER/D
Ans) A
(12) Which of the following will act as the 'lender of intermediate resort' ?
A) RBI
B) NABARD
C) SBI
D) None of the above
Ans) C
(13) According to Gurley and Shaw, the various substitutes of currency and commercial bank demand deposits should be assigned different weights according to -
A) Their degree of replacement
B) Their degree of substitutability
C) Their share in the money market
D) Their share in money supply
Ans) B
(14) Assertion (A) : Primary financial markets deals in new financial claims.
Reason (R) : It mobilises savings and supplies new capital to the business units.
Codes :
A) Both (A) and (R) are correct and (R) is the correct explanation of (A).
B) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
C) (A) is true, but (R) is false.
D) (A) is false, but (R) is true.
Ans) A
(15) Marginal requirement specified under which instruments of monetary policy ?
A) Variable Reserve Requirements
B) Statutory Liquidity Requirement
C) Selective Credit Controls
D) Open Market Operations
Ans) C
(16) Theory of Industrial Location is associated with the names of -
I) Losch II) Weber III) Christaller IV) Lerner
Codes :
A) I & II
B) I only
C) I, II and III
D) I, II, III and IV
Ans) C
(17) The Committees related to Industrial licensing policy are -
I) Arjun Sengupta Committee II) D.G. Karve Committee III) Subimal Dutt Committee
IV) R.K. Hazari Committee
Codes :
A) I and II
B) II and III
C) III and IV
D) I, II and III
Ans) C
(18) Which Industrial Policy Resolution gave the public sector a strategic role in the Indian Economy ?
A) 1948
B) 1956
C) 1977
D) 1980
Ans) B
(19) Average industrial growth rate during Tenth plan period was -
A) 5.3%
B) 8.8%
C) 10.2%
D) 15.3%
Ans) B
(20) Optimum theory of population tells about the relationship between -
A) Population and food supply
B) Population and overall resources
C) Dependent population and growth rate of population
Ans) B
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