1.What option does the central government not include in the development expenditure?

Answer: Defence expenditure

3. Generally, deficit financing can create inflation. However, it can be checked if _________.
A) government expenditure increases the aggregate supply in the aggregate demand ratio.
B) all the investment is indicated as payment on national debt only.
C) only the aggregate demand is increased.
D) All of the above
Answer: D
4. Which did the ARDC merge with on 12 July, 1982?
Answer: NABARD
5. What is the main cause of the export surplus?
Answer: Developments in national and international markets
6. If RBI reduces the cash reserve ratio, what will happen to the credit creation?
Answer: It will increase.
7. Which option is not mentioned in a firm’s balance sheet?
Answer: Revenue from sales of the company’s products
8. Which of the following does the state financial corporation in the State Bank of India give
special assistance to?
Answer: Medium and small-scale industries
9. Which of the following are the central cooperative banks directly associated with?
Answer: State cooperative banks
10. The first complete Indian Bank was established in which year?
Answer: 1894
11. Which among the following committees recommended the elimination of Standard
deduction?
Answer: Vijay Kelkar Committee
12. The price at which the Government purchase foodgrains for maintaining the public
distribution system and for building up buffer stocks are known as
Answer: Procurement prices
13. Which agency of Indian Government implements the price support scheme (PSS)?
(a) FCI
(b) NAFED
(c) Agriculture pricing agency of India
(d) None of the above
14. Who recommends the Minimum Support Price and issue prices?
Answer: Commission for Agricultural Costs and Prices
15. The base of Consumer Price Index for Industrial Workers is being shifted from 1982 to—
(a) 1995
(b) 1998
(c) 2000
(d) 2001
16. With reference to India, consider the following statements
1. WPI is available on a monthly basis only.
2. As compare to Consumer Price Index for the Industrial Worker (CPI-IW),
the WPI gives less weightage to food articles. Which of the statements given above is/are
correct?
Answer: Only 2
17. Brent index is associated with
(a) crude oil prices
(b) copper future prices
(c) gold future prices
(d) shipping rate index
18. Who has suggested migration to accrual accounting system from cash-based accounting
system in India?
(a) I.V. Reddy
(b) D.N. Ghosh
(c) R.H. Patil
(d) C. Rangarajan
19. The process of curing inflation by reducing money supply is called
Answer: Reflation
20. In the parlance of economy / commerce, what is ‘Gilt-edged market’?
Answer: Market of safe securities
21. The basis of determining dearness allowance (D.A.) to government employees in India is
Answer: Consumer Price Index
22. When economic development takes place
(a) Specialisation increases
(b) Commercialisation decreases
(c) Market imperfections increase
(d) None of the above
23. Disinvestment is:
(a) Offloading of shares of private companies to government.
(b) Off-loading of government shares to private companies.
(c) Increase in investment.
(d) Closing down of business concerns
24. Gilt-edged market means
(a) Market of government securities
(b) Bullion market
(c) Market dealing with metals
(d) Market dealing with exports
25. The acronym SRO, being used in the capital market for various market participants, stands
for which one of the following?
(a) Self-Regulatory Organisations
(b) Small Revenue Operators
(c) Securities Roll-back Operators
(d) Securities Regulatory Organisations
26. Which one of the following is a development expenditure?
(a) Irrigation expenditure
(b) Administration
(c) Debt services
(d) Grant-in-aid
27. Which of the following is not an example of economic overheads?
(a) Schools
(b) Sanitary facilities
(c) Roads and Railways
(d) Coal mines
28. Many times, we read a term “Free Market” in newspapers. What does it mean?
1. It is a market where pricing is driven by the laws of supply and demand.
2. In free market things are available without restraints of the government.
3. In such market, goods are free from extraneous influences such as buffer or quotas.
Codes: (a) only 1 (b) only 2 (c) only 3 (d) Both 1 and 2
29. . Assertion (a): Investment has a demand effect. Reason
(R): Investment augments the productivity and income in the economy.
Codes: (a) Both (a) and (R) are correct, and (R) is the correct explanation of (a).
 (b) Both (a) and (R) are correct, but (R) is not the correct explanation of (a).
(c) (a) is correct, but (R) is incorrect.
(d) (a) is incorrect, but (R) is correct
30. Which one of the following is a development expenditure?
(a) Irrigation expenditure
(b) Administration
(c) Debt services
(d) Grant-in-aid
31. The acronym JAM stands for
(a) Jan Dhan, Aadhar, Mobile
(b) Jan Dhar Account
© Jan Aadhar Mandal
(d) Jan Aadhar, mobile
32. The acronym JAM stands for
33. (a) Jan Dhan, Aadhaar, Mobile
34. (b) Jan Dhan Account
35. (c) Jan Aadhar Mandal
36. (d) Jan Aadhar, mobile
37. Which of the following state had TFR well below the Replacement Rate?
(a) Bihar
(b) Uttar Pradesh
© Jharkhand
(d) Punjab
38. Maternal Mortality Ratio (MMR) of India has declined to ____ per lakh live births in 2014-
16
(a) 200 (b) 130 (c) 120 (d) 100
39. The overall electricity savings in India due to adoption of energy efficiency measures is
estimated at ___ per cent of the net electricity consumption in 2017-18
(a) 8 (b)7.21 (c) 5 (d) 12.5
40. The main justification for persisting with different levels of minimum wage across states is
that they reflect ____
(a) different levels of economic development
(b) different geographical characteristics
© different life expectancies
(d) different consumption patterns
41. ____ aims to safeguard the health of women and children by providing them with clean
cooking fuel
(a) Pradhan Mantri Ujjwala Yojana
 (b) Pradhan Mantri Jeevan Jyoti Bima Yojana
(c) Sukanya Samridhi Yojana
(d) Pradhan Mantri Jan Dhan Yojana
42. The share of agriculture, forestry and fishing sector in Gross Value Added has seen a steady
decline over the years to ___ in 2018-19
(a) 14.4% (b) 8% (c) 10% (d) 6%
43. According to the Agriculture Census 2015-16, the share of marginal holdings in total
operational holdings increased to ____ in 2015-16
(a) 40% (b) 50 % (c)68.5% (d) 55%
44. India ranks ___ in milk production in the world
(a) First (b) Second (c) Third (d) Fourth
45. According to the Economic Survey of GOI 2018-19 India
(a) has already entered the demographic phase of a high share of working age population
(b) is yet to enter the demographic phase of a high share of working age population
© is still the demographic phase of a low share of working age population
(d) will never be able to enter the demographic phase of a high share of working age population
46. According to the Economic Survey of 2017-18, the states of India with poor performance on
gender related issues are:
(a) Diverging (b) Converging (c) No distinct pattern (d) Becoming poor
47. Which of the following states is the best performer in terms of Gross State Value Added
(GSVA) in the service sector?
(a) Maharashtra (b) Karnataka (c) Andhra Pradesh (d) Himachal Pradesh
48. FDI equity inflows into the services sector accounted for how much per cent of the total FDI
equity inflows into India in 2018-19?
(a) 90% (b) 63.7% (c) 10.4% (d) 30.1%
49. As per UN National Accounts Statistics data for 2017, India ranked
(a) 3rd in terms of GDP size
(b) 7th in terms of GDP size (5th in 2023 data)
(c) 6th in terms of GDP size
(d) 5th in terms of GDP size
50. In 2018, ‘Telecom Commission’ has been re-designated as
(a) ‘Mobile Communications Commission’
(b) ‘Telecom Communications Commission’
(c) ‘Digital Communications Commission’
(d) ‘M2M Communications Commission’
51. Which of the following is NOT a feature of the manufacturing sector in India
(a) Formal manufacturing in high productivity
 (b) exhibits domestic convergence
(c) Peak employment share is declining
(d) registered manufacturing is expanding fast
52. In which year was the Small – Scale Industries (SSI’s) in India named as Micro, small and
medium enterprises (MSME’s)?
(a) 2006
(b) 2007
(c) 2005
(d) 2004
53. What is the total number of MSME’s in India in organised sector according to the latest
MSME census?
(a) 25.4 mil.
(b) 29.8 mil.
(c) 48.7 mil.
(d) 43.4 mil.
54. Fiscal Responsibility and Budget Management (FRBM) committee recommended centre
debt to GDP ratio to be at
(a) 37% (b) 40% (20% limit for the states) (c) 25% (d) 35%
55. India‟s economic planning cannot be said to be:
56.
57. a. Indicative
58. b. Imperative
59. c. Limited
60. d. Democrat
61. India’s economic planning cannot be said to be
(a) Indicative (b) Imperative (c) limited (d) Democratic
62. Economic Survey is published by:
(a) Ministry of finance
(b) Planning commission
© Government of India
(d) ISI
63. India is the biggest producer as well as the largest consumer and importer of which of the
following crops?
(a) Wheat (b) Cotton (c) Sugarcane (d) Pulses
64. Which of the following is an example of passive investment instrument?
(a) Gold ETFs (gold exchange traded funds that combine the flexibility of stock investment and
the simplicity of gold investments) (b) Mutual Funds (c) Stocks (d) Preference shares
65. The one rupee note bears the signature of:
(a) RBI governor
 (b) President of India
(c)Finance Minister
(d) Finance Secretary
66. Which of the following will not come under the proposed GST in India?
(a) Agricultural products
b) Handicrafts
(c) Gems and Jewelleries
(d) Petroleum products
67. The concept of five year plan was borrowed from?
(a) Russia
(b) USA
(c) England
(d) France
68. Who is the largest trading partner of India?
- US
69. In which year the national development council was set up? -1952
70. The department of Family Planning was set up in? – 1966
71. Which of the following is/are the immediate objective of the population policy of 2020?
(a) Meet the needs of contraception
(b) meet the needs of health insurance
© meet the needs of health personal
(d) all of the above
72. The average rate in the Hindu rate of growth is? – 4%
The Hindu rate of growth is a term used to describe the lower rate of economic growth observed
in an Indian economy during the 1950s to 1980s and was coined by an Indian economist, Raj
Krishna
73. The book “Planning Economy for India” was written by?
74. a. V. K. R. V. Rao
75. b. M. Visvesvaraya
76. c. K. N. Rai.
77. d. Manmohan Singh
78. a. V. K. R. V. Rao
79. b. M. Visvesvaraya
80. c. K. N. Rai.
81. d. Manmohan Singh
a) V.K.R.V. Rao
b) M. Visvesvaraya
c) K.N. Rai
d) Manmohan Singh
75. What is the full form of Niti Ayog? – National Institution for Transforming India

76) Unfair trade practices are included in? – MRTP Act

77) The deputy chairman of the planning commission is: - holds the rank of cabinet ministry
78) Planning in India derivers its objective form: -Directive principles of state policy
79) Economic planning is a subject in: -Concurrent list
80) The contribution of Indian agriculture is: -Decreasing
81) The strategy of Rolling Plan was adopted by: -Morarji Desai
82) The total expenditure for agriculture was the highest in which five year plan? – Fourth Five
year Plan
83) The growth rate of agricultural sector was negative in: -3rd plan
84) Globalization of Indian Economy means: - Minimum possible restrictions on economic
relations with each other
85) In which sector, the public sector is most dominant? - Commercial banking
86) Devaluation of Indian Rupee in terms of US dollar was in the year: - 1981
87) Which industrial policy resolution (IPR)/statement introduced the concept of Joint sector in
Indian industries? - IPR, 1956
88) The monetary policy committee consists of __ members: - 6
89) As per the 2011 census literacy rate in India was? – 74.04%
90) What percentage of Indian population is dependent on agriculture? – 64.9%
91) Which among the following was first Commercial Bank of India?
[A] Hindustan Bank
[B] The bank of Bengal
[C] Imperial Bank of India
[D] Punjab National Bank
92) Which among the following is India’s largest multi-state co-operative bank
[A] Vijaya Bank
[B] Saraswat Bank
[C] Union co-operative bank
[D] The Madhya Pradesh Rajya Sahakari Bank
93) Which among the following does not come under Land Resources:
[A] Fertility of Land
[B] Location of Land
[C] Composition of Land
[D] all of the above are land resources
94) Which among the following bank was designated as the Agency for operationalisation of the
Joint Investment Fund between India and Oman?
[A] State Bank of India
[B] Punjab National Bank
[C] HDFC
[D] Union Bank of India
95) In which year, Nationalization of SBI Subsidiaries took place?
[A] 1950
[B] 1955
[C] 1959
[D] 1965
96) What happens when a foreign bank operating in India does not meet its priority sector
targets?
[A] It can deposit amount equivalent to the shortfall in Rural Infrastructure Development Fund
[B] It can deposit amount equivalent to the shortfall in SIDBI
[C] It can deposit amount equivalent to the shortfall in RBI
[D] It can lend amount equivalent to the shortfall to domestic banks

Domestic banks having a shortfall in lending to priority sector/ agriculture are allocated amounts for
contribution to the Rural Infrastructure Development Fund (RIDF) established in Nabard. In case of
foreign banks operating in India, which fail to achieve the priority sector lending target or sub-targets,
an amount equivalent to the shortfall is required to be deposited with SIDBI for one year.
97) The basic WTO principle with reference to trade barriers is that:
[A] Trade barriers can be imposed by any country that believes it will benefit from such trade
barriers
[B] Trade Barriers should be lowered equally and without discrimination for all member
countries
[C] Trade Barriers can be imposed if a majority of the members of the WTO agree
[D] Trade Barriers should be the same in all member countries so that the result is equivalent to
free trade
98) The Board of Financial Supervision (BFS):
1. is headed by RBI Governor
2. advises the Reserve Bank of India in area of banking regulation
3. supervises the banks as well as non-banking finance companies
Which among the above is / are correct statements?
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
99) The term ‘Masala Bond’, sometimes appearing in news, is used in relation to __:
[A] Indian rupee denominated bonds issued in offshore capital markets
[B] US Dollar denominated bonds issued in Indian capital markets
[C] Mix Currency Denominated bonds issued in Indian capital markets
[D] World Bank bonds issued in Indian Markets
100) Under the WTO agreements, the subsidies provided for which among the following
would amount to Green Box subsidies?
1. Agricultural Research
2. Environment Protection
3. Fertilizers
4. Irrigation
Select the correct option from the codes given below:
[A] 1 & 2
[B] 2 & 3
[C] 3 & 4
[D] 1 & 4
Green Box Subsidies include the amounts spent on Government services such as research, disease
control, and infrastructure and food security. This also includes the subsidies given to the farmers
that directly don’t affect production such as for restructuring the agriculture.
101) Consider the following elements:
 1. Angel investors
2. Incubators
3. Crowd funding
4. Seed accelerators
Which of the above are elements of start-up ecosystem?
[A] 1, 2 & 3 Only
[B] 2, 3 & 4 Only
[C] 1, 3 & 4 Only
[D] 1, 2, 3 & 4
102) Which of the following ministries is responsible for calculating GDP in India?
[A] Ministry of Finance
[B] Ministry of Commerce and Industry
[C] Ministry of Central Statistical and Program Implementation
[D] Ministry of consumer Affairs
103) The Banking Regulation Act was passed in India in _____.
A. 1965
B. 1974
C. 1949
D. 1951
104) The base financial year for the calculation of the all India Index of Industrial
Production (IIP) is:
A. 2010-2011
B. 2004-2005
C. 2011-2012
D. 2005-2006
105) Who among the following is not part of the Governing Council of NITI Aayog?
[A] All Chief Ministers of the states
[B] Chief Ministers of Delhi and Puducherry
[C] Governors of States
[D] Lieutenant Governor of Andaman & Nicobar Island
106) Which of the following certificate is given for a breeder seed?
[A] A golden yellow certificate
[B] A green certificate
[C] A blood red certificate
[D] A pink certificate
107) What is the market share of generic drugs in the Indian Pharmaceutical industry?
[A] 51%
[B] 39%
[C] 71%
[D] 64%
108) What is the base year of IIP when it was first published in 1950?
[A] 1939
[B] 1937
 [C] 1932
[D] 1940
109) What is the weightage of Electricity in IIP?
[A] 19.85%
[B] 23.45%
[C] 17.83%
[D] 10.33%
110) What is India’s rank in the cement production in the world?
[A] 1
[B] 2
[C] 3
[D] 4
111) When was the Liquidity adjustment facility introduced?
[A] 1999
[B] 1995
[C] 2000
[D] 2003
112) When was FATF founded?
[A] 1989
[B] 1990
[C] 1993
[D] 1994
The FATF-Financial action task force is an intergovernmental organization founded in 1989 to
combat Money laundering. India joined the FATF in 2010. The headquarters is located in Paris

113) Association of Indian Universities is registered under which Act?

[A] Companies Act, 1956
[B] Societies Registration Act, 1860
[C] Indian Trust Act, 1882
[D] Companies Act, 2013
114) In which city headquarters of Life Insurance Corporation of India is located?
[A] Delhi
[B] Mumbai
[C] Hyderabad
[D] Gurugram
115) Who headed the first National Commission on Labour in India?
[A] Justice GP Mathur
[B] Justice Guman Mal Lodha
[C] Justice P.B. Gajendragadkar
[D] Justice J S Verma
116) Which of the following is not a scheme/project of the present government?
[A] AMRUT
[B] Swachh Bharat
[C] AYUSH
[D] Jan Dhan Yojana
117) Which of the following tax is levied by the state governments in India?
[A] Excise duty on liquor
[B] Capital gains tax
[C] Customs tax
[D] Corporation tax
118) Green steel plants of Bhilai, Durgapur and Rourkela were established under which five
year plan?
 [A] Second
[B] Fourth
[C] Fifth
[D] Sixth

119) Who selects the Social Audit Committee under MGNREGA scheme?

A.Chief Minister

B. Gram Sabha

C. Mayor

D. B.D.O

120) Which of the following is not an instrument of credit control in India?

A. Rationing Of credit

B. Direct action

C. Open market operations

D. Variable cost reserve ratios

121) Which one is not included in Non Banking Financial Institutions (NBFIs)?

A. EXIM

B. SIDBI

C. NABARD

D. BOI

122) The Community Development Programme was launched in the year

A. 1950

B. 1952

C. 1951

D. 1953

123) Which of the following taxes is levied by the State Government only?

A. Wealth Tax

B. Entertainment Tax

C. Income tax

D. Gift Tax

124) Which of the following does not form a part of the foreign exchange reserves of India?

A. Gold

B. SDRs
 C. Foreign currency assets

D. Foreign currency and securities held by the banks and corporate bodies

125) The Industrial Bank of India was set up in

A. July, 1968

B. July, 1966

C. July, 1964

D. July, 1962

126) Scheduled bank is a bank which is

A. Nationalised

B. Not Nationalised

C. based in foreign country

D. Included in the second schedule of RBI

127) Which of the following taxes is levied by the union and appropriated and planned by the
states?

A. Service tax

B. Stamp duty

C. Property tax

D. Passenger and freight duty

128) Who amongst the following has never been the Governor of Reserve Bank of India?

A. D.Subbarao

B. C. Rangarajan

C. B.B. Bhattacharya

D. Y.V. Reddy

129) Which of the following taxes is not shared between Union and the States?

A. Income tax

B. Excise duty

C. Corporation tax

D. Sales tax

130) India’s unemployment is estimated by – ISO

131) The rate of unemployment of India is – 7.45%
132) PDS stands for – Price Distribution System
133) Regional Rural Bank were started in – 1975
134) When the 1st Industrial Policy was introduced? – 1951
135) Indian Iron and Steel company was established in – 1909
136) Bokaro Steel Plant was started during which Plan? – 1st
137) The mid day meal scheme was launched on – August 15, 1995
138) The First complete Indian Bank was established in the year – 1894
139) The Gandhian Plan was presented by – M.N. Roy
140) National Development Council was constituted in – August 1, 1951
141) ‘Twenty point programmes’ was launched in the year – 1975
142) In which year was the essential commodities act was enacted? – 1961
143) WTO prescribes export subsidies as – Unfair Competition
144) Consider the following statements in regard to Zero Base Budgeting (ZBB) :

(1) Existing Government programmes can be discarded under ZBB if they are found to be
outdated.

(2) ZBB is difficult to be applied to Human Development programmes as the outcome of

such programme is intangible in nature.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

145) Which of the following are correct in regard to the austerity measures taken by a
country going through adverse economy conditions:

(1) These measures include a reduction in spending.

(2) These measures include an increase in tax

(3) These measures include reduction in budget deficit. Select the correct answer using the
codes given below :

(a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3

146) Which of the following is not a part of India’s National Debt?

(a) National Savings Certificates

(b) Dated Government Securities

(c) Provident Funds

(d) Life Insurance Policies

147) Which of the following will not contribute to a higher current account deficit?

(1) Increase in price of crude oil

(2) Rise in export of software services

(3) Rise in import of services Choose the correct answer using the codes given below:

(a) 1 and 2 only (b) 2 only (c) 3 only (d) 1 and 3 only

148) Consider the following:

1. Market borrowing

2. Treasury bills
 3. Special securities issued to RBI

Which of these is/are components of internal debt?

(a) 1 only (b) 1 and 2 (c) 2 only (d) 1, 2 and 3

149) In India, deficit financing is used for raising resources for:

1. redemption of public debt

2. adjusting the balance of payments

3. reducing the foreign debt

4. economic development Which of the above statements is/are correct?

(a) 4 only (b) None of the above (c) 2 and 3 only (d) 1 and 2 only

150) Deficit financing leads to inflation in general, but it can be checked if:

(a) government expenditure leads to increase in the aggregate supply in ratio of aggregate demand

(b) only aggregate demand is increased

(c) all the expenditure is denoted national debt payment only

(d) All of the above

Fiscal deficit - Excess of total expenditure over total receipts less borrowings

Budget deficit - Excess of total expenditure over total receipts

Revenue deficit - Excess of revenue expenditure over revenue receipts

Primary deficit - Excess of total expenditure over total receipts less borrowings & interests
payments.

151) Consider the following statements about Sinking Fund

1. It is a method of repayment of public debt.

2. It is created by the government out of budgetary revenues every year. Which of the
statements given above is/are contact?

(a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2

152) Second demonetization of currency notes in independent India took place during the
tenure of .................... as Minister of Finance, GOl.

(a) H.M. Patel

(b) Morarji Desai

(c) C.D. Deshmukh

(d) Vishwanath Pratap Singh

 (The Janta Party coalition government led by Morar Ji Desai demonetized the currency notes of
Rs. 1,000, Rs. 5,000 and Rs. 10,000 on 16 January 1978)

153) India’s first Long term Fiscal policy (January, 1986) was adopted during the tenure
of ..................... as Minister of Finance, GOI.

(a) Dr. Manmohan Singh

(b) Yashvant Sinha

(c) Vishwanath Pratap Singh

(d) Pranab Mukherji

154) Which Finance Commission has used forest cover as a criterion for horizontal
distribution of resources in India?

(a) 10th Finance Commission

(b) 12th Finance Commission

(c) 13th Finance Commission

(d) 14th Finance Commission

The first finance commission was constituted on 1951 under the chairmanship of Shri K.C. Neogy.
The Finance Commission is appointed by the President under Article 280 of the Constitution. The
commission’s chairman is Nand Kishore Singh.

The chairman of the twelfth finance commission was Dr C. Rangarajan (2002)

The chairman of the thirteenth finance commission was Dr Vijay Kelkar (2007)

The chairman of the fourteenth finance commission was Y.V. Reddy (2013)

155) The first phase of liberalization was initiated in India under the regime of

(a) Rajiv Gandhi

(b) P.V. Narsimha Rao (Manmohan Singh as Finance Minister in 1991)

(c) Atal Bihari Vajapayee

(d) H.D. Dev Gowda

156) Which of the following best explains the cascading effect of taxation?

(1) When tax imposition leads to a disproportionate increase in prices by an extent more
than the rise in the tax.

(2) When tax imposition leads to a disproportionate decrease in prices by an extent more
than the rise in the tax.

(3) When tax imposition leads to a disproportionate decrease in imports.

(4) When tax imposition leads to a disproportionate decrease in exports.

(a) 1 only (b) 2 and 3 only (c) 4 only (d) 3 and 1 only

157) ‘Fiscal Drag’ expresses the impact of inflation on which of the following ?
(a) Fiscal Deficit (b) Tax Revenue and GDP (c) Black money (d) Investment

158) ‘Basel III’ norms target at which of the following?

(1) Improve the banking sector’s ability to absorb shocks arising from financial and
economic stress.

(2) Improve risk management and governance.

(3) Strengthen banks’ transparency. Choose the correct answer using the codes given below:
(a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3

159) Consider the following statements in regard to the Goods and Service Tax:

(1) The GST shall have two components : one levied by the centre, and the other levied by
the states.

(2) The central GST and state GST are to be paid to the joint accounts of the centre and the
states.

(3) While the imports would be zero-rated, the exports would be subjected to the GST.
Which of the above statements is/are correct?

(a) 1 only (b) 2 and 3 only (c) 1 and 3 (d) 1 and 2 only

160) The Minimum Alternative Tax (MAT) was introduced in the budget of the Government
of India for the year?

(a) 1991-92

(b) 1992-93

(c) 1995-96

(d) 1996-97

(a minimal tax amounting to some fixed percentage of book profits i.e. profits according to
accounting records is charged)

161) Consider the following statements:

I. Government disinvesting its share in various public sector undertakings

II. Process of disinvestment is very fast

III. Process of disinvestment is very slow and government always falls short of target
Which of above statements is/ are true about government policy of disinvestment

(a) Only I (b) I and III (c) I and II (d) I, II and III

162) PAN card issued by the Income Tax Department can’t be used for which of the
following purpose?

(a) proof of address

(b) proof of identity

(c) proof of registered tax payer

 (d) proof of date of birth

163) Which one of the following agencies assigns the Agricultural Income Tax to states in
India?

(a) Inter – State council

(b) National Development Council

(c) Agriculture Finance Corporation

(d) Finance commission

164) Which one of the following states is the first state to impose Agriculture Income Tax in
India?

(a) Madhya Pradesh

(b) Uttar Pradesh

(c) West Bengal

(d) Bihar

165) Consider the following statements about the Agriculture Income Tax

1. Agriculture Income Tax is levied and collected by the Union Government.

2. Agriculture Income Tax is levied throughout the country in India. Which of the
statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

(At present agriculture is subjected to – two direct taxes and they are Agricultural Income Tax
and Land Tax. They are levied by the state governments. Not all states levy agricultural income
tax.)

166) The Government of India earns maximum revenue from:

(a) Income tax

(b) Union excise duty (indirect tax levied and collected on the goods manufactured in India and
consumed within the country)

(c) Customs duty

167) Which one of the following is the major source of gross tax revenue (GTR) for the
Government of India?

(a) Income tax

(b) Corporation tax

(c) Customs duty

(d) Service tax

Income Tax (1860);

 Expenditure Tax (1956);

Value Added Tax (1996-97)

Fringe Benefits Tax (2005).

168) Fiscal Policy in India is formulated by

(a) the Reserve Bank of India

(b) the Planning Commission

(c) the Finance Ministry

(d) the Securities and Exchange Board of India

169) In India, the price of petroleum products has been deregulated mainly to

(a) reduce the burden of subsidies given to the oil companies

(b) discourage the exploration of oil reserves in the country

(c) discourage the demand for private vehicles

170) Corporation tax in India is levied on income of a company. Which one of the following
does not include Corporation tax?

(a) Profit from business

(b) Capital gain

(c) Interest on securities

(d) Sale proceed of assets

171) Which of the following statements about Krishi Kalyan Cess (KKC) is/are correct ?

1. KKC is calculated in the same way as Service Tax is calculated.

2. The current rate of KKC is 0.50%

3. KKC is similar to the KKS (Krishi Kalyan Surcharge). Select the correct answer using
the code given below:

(a) 1, 2 and 3 (b) 1 and 2 only (c) 2 and 3 only (d) 1 only

(KK Surcharge is the additional percentage of tax which domestic tax players need to pay when
declaring undisclosed income by paying tax at 30%. The KKS above the tax is 7.5%.)

172) Who had suggested an imposition of ‘expenditure tax’ in India for the first time?

(a) Kalecki

(b) Kaldor (1956)

(c) R. J. Chelliah

(d) Gautam Mathur

173) Which one of the following is not a tax/duty levied by the Government of India?
 (a) Service Tax

(b) Education

(c) Custom Duty

(d) Toll Tax.

174) With a view to redress the grievances of tax payers speedily, Income Tax department
has started a new electronic platform which is known as—

(a) e-grievances

(b) e-IT

(c) e-bharat

(d) e-nivaran

175) Consider the following taxes—

(i) Corporation tax (ii) Income tax (iii) Service tax (iv) Union Excise Duties

Which of the following correctly describes their contribution, in descending order of

importance, to the Central Government’s Gross Tax Revenue?

(a) (i) (ii) (iv) (iii)

(b) (ii) (i) (iii) (iv)

(c) (iii) (ii) (i) (iv)

(d) (iv) (i) (ii) (iii)

176) If Sales tax on a commodity is raised, but the revenue earned through its sale decrease
sharply, which one of the following statements about the nature of this commodity would be
correct? - Price elasticity of demand for it is high
177) Which of the following taxes fall under the state list of Indian Constitution?

1. Entertainment tax

2. Luxury tax

3. Stamp Duty

4. Custom Duty

Select the answer using the codes given below—

(a) 1 and 2 (b) 1, 3 and 4 (c) 2, 4 and 5 (d) 1, 2 and 4

178) Which of the following Tax is levied by Union and collected and appropriated by States?
- Stamp Duties
179) What is/are the most likely advantages of implementing ‘Goods and Services Tax
(GST)’?

1. It will replace multiple taxes collected by multiple authorities and will thus create a single
market in India.
 2. It will drastically reduce the ‘Current Account Deficit’ of India and will enable it to
increase its foreign exchange reserves.

3. It will enormously increase the growth and size of economy of India and will enable it to
overtake China in the near future.

Select the correct answer using the code given below:

(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

(2 and 3 would have been true if the statements said ‘will help’ instead of extremes. GST is
unlikely to ‘drastically’ reduce CAD Because of crude oil import and OPEC cartel that
manipulates its prices. Similarly, GST is unlikely to enormously increase size of our economy. we
can’t overtake China in near future, because unlike China we are keeping our currency
undervalued against dollar)

180) With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT
Act)’, consider the following statements:

1. A property transaction is not treated as a benami transaction if the owner of the property
is not aware of the transaction.

2. Properties held benami are liable for confiscation by the Government.

3. The Act provides for three authorities for investigations but does not provide for any
appellate mechanism.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) 1 and 3 only (d) 2 and 3 only

181) Consider the following statements:

1. Tax revenue as a per cent of GDP of India has steadily increased in the last decade.

2. Fiscal deficit as a per cent of GDP of India has steadily increased in the last decade.
Which of the statements given above is/are correct ?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

182) In India, one-rupee coins and notes and subsidiary coins are issued by

(a) The Reserve Bank of India

(b) The Central Government

(c) The State Bank of India

(d) The Unit Trust of India

(In one rupee note, RIB signature of RBI Governor of currency held in 4 places- Hyderabad,
Mumbai, Kolkata & Noida.)

183) Which of the following terms is not a financial term?

(a) Investment

(b) Core banking solution

 (c) RTGS (Real Time Gross Settlement)

(d) All the above

184) In which of the following years India switched over to decimal currencies? (a) 1955 (b)
1956 (c) 1957 (d) 1960
185) In which year the Indian rupee was devalued two times within a month? (a) 1990 (b)
1991 (c) 1994 (d) 1999
186) The one rupee note bears the signature of the

(a) Secretary, Ministry of Finance

(b) Governor, RBI

(c) Finance Minister

(d) None of these

(The one rupee note is issued by Ministry of Finance and it bears the signature of Finance
Secretary, while other notes bear the signature of Governor of RBI.)

187) Paper currency first started in India in (a) 1861 (b) 1542 (c) 1601 (d) 1880
188) Note issuing department of RBI should always possess the minimum gold stock of worth
— (a) ` 85 crore (b) ` 115 crore (c) ` 200 crore (d) None of these
189) Which of the following does not grant any tax rebate?

(a) National Saving Certificate

(b) Indira Vikas Patra

(c) National Saving Scheme

(d) Public Provident Fund

190) Consider the following statements in regard to ‘RESIDEX’:

(1) The index is prepared to track the prices of residential properties in India on the basis of
actual transaction prices.

(2) The index is prepared from the secondary data available from various sources like
housing, finance companies and banks.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

191) Which of the following activities can lead to financial inclusion in India?

(1) Issuing of general purpose credit cards.

(2) Strict know your customer’ (KYC) norms

(3) Opening of Bank branches in unbanked rural areas.

(4) Opening of no-frills account. Select the correct answer using the codes given below: (a) 1,
2 and 3 only (b) 2, 3 and 4 only (c) 1, 3 and 4 only (d) 2 and 3 only

192) When the RBI wants to inject liquidity into economy, it may adopt the following :
 (1) Buy the government securities from the banks.

(2) Enter into reverse repo operations

(3) Raise cash Reserve Ratio

(4) Reduce SLR.

Select the correct answer using the codes given below:

(a) 1 only (b) 1 and 4 only (c) 1, 2 and 4 only (d) 1, 2, 3 and 4

193) Which of the following statements is/are correct in regard to ‘micro-finance’?

(1) Micro-credit extended by banks to individual is reckoned as a part of their priority

sector lending.

(2) RBI has prescribed a particular model the banks to provide microfinance. Choose the
correct answer using the codes given below:

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

194) Consider the following statements in regard to ‘Marginal Standing Facility (MSF)’ of
RBI: (1) It will help in reducing volatility in the overnight lending rates in the inter-bank
market.

(2) The borrowing under the MSF should be over and above the statutory liquidity
requirement. Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

(the rate at which scheduled banks could borrow funds overnight from the Reserve Bank of India
(RBI) against approved government securities.)

195) ‘Basel III’ norms target at which of the following?

(1) Improve the banking sector’s ability to absorb shocks arising from financial and
economic stress.

(2) Improve risk management and governance.

(3) Strengthen banks’ transparency. Choose the correct answer using the codes given below:

(a) 1 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3

196) Which of the following grants/grant direct credit assistance to rural households?

1. Regional Rural Banks

2. National Bank for Agriculture and Rural Development (provides credit via intermediaries)

3. Land Development Banks. Select the correct answer using the codes given below :

(a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 only

197) If all the banks in an economy are nationalized and converted into a monopoly bank, the
total deposits

(a) will decrease

 (b) will increase

(c) will neither increase nor decrease (because banks do not increase the national income.) (d)
None of the above

198) Consider the following liquid assets:

1. Demand deposits with the banks

2. Time deposits with the banks

3. Savings deposits with the banks

4. Currency

The correct sequence of these decreasing orders of Liquidity is:

(a) 1-4-3-2 (b) 4-3-2-1 (c) 2-3-1-4 (d) 4-1-3-2

199) In the context of Indian economy; which of the following is/are the purpose/purposes of
‘Statutory Reserve Requirements’?

1. To enable the Central Bank to control the amount of advances the banks can create

2. To make the people’s deposits with banks safe and liquid

3. To prevent the commercial banks from making excessive profits

4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

(a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2, 3 and 4

200) The Rural infrastructure fund set up in 1995 – 96, is maintained by the

(a) Reserve Bank of India

(b) State Bank of India

(c) NABARD

(d) Regional Rural Bank

201) The head office of the National Bank for Agriculture and Rural Development
(NABARD) located in

(a) Lucknow

(b) Hyderabad

(c) New Delhi

(d) Mumbai

(Current Chairman - Dr. Harsh Kumar Bhanwala)

202) Which is not a source of agriculture finance in India?

(a) Co-operative societies

 (b) Commercial Banks

(c) Regional Rural Banks

(d) None of these

203) NABARD was established in the

(a) Fourth Five Year Plan

(b) Fifth Five Year Plan

(c) Sixth Five Year Plan (12 July, 1982)

(d) Eighth Five Year Plan

204) In India, which of the following has the highest share in the disbursement of credit to
agriculture and allied activities?

(a) Commercial Banks

(b) Co-operative Banks

(c) Regional Rural Banks

(d) Microfinance Institutions

205) Choose the correct statements in the context of Cooperative Banks in India.

1. Cooperative Banks operate on no profit no loss basis.

2. Cooperative Banks are allowed to operate only in the agriculture sector.

3. NABARD is a Cooperative Bank.

(a) 1 only (b) 1 and 2 (c) 1 and 3 (d) All of these

206) Consider the following statements :

1. Regional Rural Banks grant direct loans and advances to marginal farmers and rural
artisans.

2. NABARD is responsible for laying down policies and to oversee the operations of the
RRBs. Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

207) In India ‘Report on Currency and Finance’ is the annual publication of (a) SEBI (b) RBI
(c) Finance Commission (d) Finance Ministry
208) How many seats of Deputy Governor are there in Reserve Bank of India?

(a) 1 only (b) 2 only (c) 3 only (d) 4 only

(The general superintendence and direction of the RBI is entrusted with the 21-member- Central
Board of Directors—the Governor (currently Shaktikanta Das, four Deputy Governors, two
Finance Ministry representatives, ten government-nominated directors to represent important
elements from India’s economy, and four directors to represent local boards headquartered at
Mumbai, Kolkata, Chennai and New Delhi.)
209) Who is the new Chairman of Life Insurance Corporation of India?

(a) S.K. Roy

(b) D.K. Malhotra

(c) Thomas Matthew

(d) V.K. Sharma

210) On which date is the establishment of State Bank of India celebrated?

(a) 1st January

(b) 19th June

(c) 1st July (On 1 July 1955, the Imperial Bank of India became the State Bank of India,
Chairperson: Rajnish Kumar)

(d) 15th October

BANKING SECTOR REFORMS TIMELINE

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major Banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 Crores.

In 1993, the Banking Regulation Act was amended to allow for the entry of new private sector banks.

211) The apex organisation of industrial finance in India is—

(a) IDBI

(b) RBI

(c) ICICI (an Indian multinational banking & financial services company headquartered in
Mumbai.)

(d) IFCI (It is an Indian government owned development bank to cater to the long term finance
needs of industrial sectors)

212) RBI’s first census of India’s foreign Assets & Liability as on 30 June 1948 revealed total
foreign business investments of 302 cr, out of it what was the % of British investments in
India?
 (a) 51 %

(b) 60 %

(c) 72 %

(d) 91 %

213) Consider the following statements : 1. Small Industry Development Bank of India
(SIDBI) was set up as a whole owned subsidiary of the RBI.

2. SIDBI has taken over the responsibility of administering small industry development
funds managed by the IDBI.

Which of the statements given above is/are correct?

(Small Industries Development Bank of India is a non-independent financial institution aimed to

aid the growth and development of micro, small and medium-scale enterprises)

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

214) Why is the offering of ‘teaser loans’ by commercial banks a cause of economic concern?

1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be
exposed to the risk of defaulters in future.

2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up
manufacturing or export units. Which of the statements given above is/are correct?

(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

(Teaser loans are considered an aspect of subprime lending, as they are usually offered to low-
income home buyers. Unfortunately, these borrowers with increased monthly payments, at times
can’t afford)

215) Which of the following is /are example (s) of ‘Near Money’? (Near Money is a term used
in economics to describe highly liquid assets that can easily be converted into cash.)

1. Treasury Bill

2. Credit Card

3. Saving accounts and small time deposits

4. Retail money market mutual funds

Select the correct answer using the code given below:

(a) 1 only (b) 2 only (c) 1, 2 and 3 (d) 1, 3 and 4

216) Which one of the following Public Sector Bank’s emblem figures a dog and the words
‘faithful friendly, in it?

(a) Punjab National Bank (b) Syndicate Bank (c) oriental Bank of Commerce (d) State Bank of
India

217) Consider the following statements with regard to Statutory Liquidity Ratio (SLR)

1. To meet SLR, Commercial banks can use cash only.

 2. SLR is maintained by the banks with themselves.

3. SLR restricts the banks leverage in pumping more money into the economy. Which of the
statements given above is/are correct?

(a) 1, 2 and 3 (b) 1 and 3 (c) 2 and 3 (d) only 2

218) Which one of the following is different from the others from the point of view of
ownership

(a) LIC Policy

(b) Bank Fixed Deposit

(c) Kisan Vikas Patra

(d) Debenture of a Company (A debenture is a type of debt instrument that is not secured by
physical assets or collateral. Both corporations and governments frequently issue this type of
bond to secure capital.)

219) Which one of the following does not implement the Self – Help Groups (SHGs) - Bank
Linkage programme? (started as a pilot programme in 1992 on the basis of recommendation of
S K Kalia Committee.)

(a) NABARD

(b) Commercial Banks

(c) RRBs

(d) Co- operative Banks

220) Bank deposits are insured by DICGS for a maximum amount of .................. per
depositor per bank.

(a) No limit

(b) `5,00,000

(c) `2,00,000

(d) `1,00,000

221) Which of the following company is the sole reinsurance company in India?

(a) Life Insurance Corporation of India

(b) ICICI Prudential Life Insurance Company

(c) National Insurance Company

(d) General Insurance Corporation

222) Who appoints a banking ombudsman? (a senior official to redress customer complaints
against deficiency in certain banking services)

(a) Lead Bank of the State

(b) Governor of respective state

 (c) Reserve Bank of India

(d) President of India

223) Who decides the rate of interest on savings bank deposits?

(a) Ministry of Finance

(b) Indian Banks Association

(c) Reserve Bank of India

(d) Individual Banks

224) Which of the following public sector banks is the first bank to offer wealth management
service?

(a) Bank of India

(b) Bank of Baroda

(c) State Bank of India (to cater to the fast-growing affluent segment of the country)

(d) Canara Bank

(e) Other than those given as options

225) Yes Bank has announced mobilisation of USD 5 billion towards its commitment to
climate finance in India by 2020. The Bank’s committed target for funding clean energy is—

(a) 1000 MW annually

(b) 1500 MW annually

(c) 1500 MW by 2020

(d) 5000 MW by 2020

226) The first Land Development Bank was established in 1920. It was located at

(a) Meerut

(b) Jhang (Punjab)

(c) Munger

(d) Thane

227) Which of the following is the first bank to tie up with Indian railways to sell rail tickets
through its web site?

(a) State Bank of India

(b) ICICI Bank

(c) Axis Bank Ltd.

(d) Punjab National Bank

228) Which of the following banks is the World’s largest bank by assets
 (a) Bank of America

(b) Industrial and Commercial Bank of China (ICBC)

(c) BNP Paribas

(d) Bank of China

CTS – Cheque Truncation System Cheque

MICR – Magnetic Ink Character Recognition

IFSC – Indian Financial System Code

229) The banks which are implementing the Micro Finance Programme linked with Self Help
Groups (SHGs) are—

(a) Commercial Banks and Co-operative Banks only

(b) Regional Rural Banks and Commercial Banks, only

(c) Co-operative banks and Regional Rural Banks, only

(d) Commercial Banks, Regional Rural Banks and Co-operative Banks

230) With reference to Asian Development Bank, consider the following statements—

I. United States has the largest proportion of shares in voting system.

II. China and India have the same percentage of shares for the voting system.

Which of the statement(s) given above is/are correct? Codes:

(a) Only I (b) Only II (c) Both I and II (d) Neither I nor II (The largest to smallest order of
percentage of shares: Japan, US, China, India)

231) The share of the concerned State Government in the capital of Regional Rural Banks is
—

(a) 15 per cent

(b) 35 per cent

(c) 20 per cent

(d) 50 per cent

(In the regional rural banks, 50% share shall be held by the central government, 15% by the
concerned state government and 35% by the sponsor bank)

232) The Bandhan Banking Limited is an Indian banking and financial services company
Headquartered in—

(a) Mumbai, Maharashtra

(b) New Delhi, Delhi

(c) Hyderabad, Telangana

(d) Kolkata, West Bengal

233) The baseline ‘Aapka bhala, Sabki bhalai’ is associated with —

(a) RBL Bank Limited

(b) DCB Bank Limited

(c) Yes Bank Limited

(d) Bandhan Bank Limited

234) The ‘Indian Bank’ is an Indian state-owned financial service company Headquartered
in—

(a) Bengaluru

(b) Mumbai

(c) Chennai (established in 1907)

(d) Kolkata

235) The first Indian Bank to introduce ‘Smart Vault’, a fully automated locker facility using
robotic technology to access lockers from the safe vault is –

(a) IDBI Bank

(b) Federal Bank

(c) HDFC Bank

(d) ICICI Bank

236) According to extant RBI guidelines, ‘Payment Banks’ are not permitted to

(a) set up branches or ATMs

(b) accept remittances to be sent to multiple banks

(c) distribute mutual fund/insurance/pension products

(d) set up subsidiaries to undertake NBFC activities

237) Which of the following institutions is the umbrella organization for all retail payment
systems in India?

(a) RBI

(b) CCIL

(c) CDSL

(d) NPCI (National Payments Corporation of India)

238) A cheque which has been written by the maker and dated at some point in the past is
known as—

(a) Out-of-date cheque

(b) Post-dated cheque

 (c) Pre-paid cheque

(d) Antedated cheque

239) ‘SFMS’ is a secure messaging standard developed to serve as a platform for intra-bank
and inter-bank applications. The first letter ‘S’ in the abbreviation ‘SFMS’ stands for—

(a) Structured (Structured Financial Messaging System)

(b) Simplified

(c) Standard

(d) Sheltered

240) A currency which either has a missing portion or is composed of more than two pieces is
categorized as a –

(a) Soiled Note

(b) Imperfect Note

(c) Detached Note

(d) Mutilated Note

241) The ‘Interest Rate Risk’ is a type of –

(a) Market Risk (Interest Rate Risk, Equity Price Risk, Foreign Exchange Risk, Commodity
Price Risk)

(b) Liquidity Risk

(c) Reputational Risk

(d) Operational Risk

242) In case of Small Finance Banks (SFB), the loan size and investment limit exposure to
single –

(a) 15 per cent of total advances

(b) 10 per cent of capital funds

(c) 15 per cent of capital funds

(d) 10 per cent of total advances

243) The Depositor Education and Awareness Fund (DEAF) is maintained with—

(a) Reserve Bank of India

(b) NABARD

(c) Life Insurance Corporation

(d) State Bank of India

244) The last six characters of the alphanumeric IFSC printed on the cheque helps in
identifying the –
 (a) Bank branch

(b) Type of account

(c) Bank name

(d) Business or profession

245) The recently launched ‘UPI’ is expected to make sending money easy. The letter ‘I’ in
the abbreviation ‘UPI’ stands for —

(a) Interface (United Payment Interface)

(b) Infrastructure

(c) Institution

(d) International

246) The ‘Mudra Bank’ is a subsidiary of—

(a) ICICI (b) RBI (c) IFCI (d) SIDBI

247) A central bank of a country uses Open Market Operations (OMO) as the primary
means of implementing— (a) Tax policy (b) Monetary policy (c) Fiscal policy (d) Budgetary
policy
248) The microfinance institutions (MFI) registered as Non-Banking Finance Companies
(NBFC) are presently regulated by —

(a) SEBI

(b) Reserve Bank of India

(c) MUDRA

(SIDBI) Bank

(d) NABARD

249) SBI Life Insurance Limited is a joint venture life insurance company of State Bank of
India (SBI) and—

(a) HDFC Life Insurance Company

(b) Life Insurance Corporation of India

(c) BNP Paribas Cardiff

(d) ICICI Prudential Life Insurance Company

250) The alphabet ‘D’ in the abbreviation ‘NDTL’, commonly used in banking world, stands
for—

(a) Demand (Net Demand and Time Liabilities)

(b) Debenture

(c) Debt
 (d) Deposit

251) SMERA Limited, a popular body in the financial world, is a full service— (a) Asset
Financing Company (b) Asset Management Company (c) Credit Information Bureau (d) Credit
Rating Agency (SMERA Ratings Limited is a full-service Credit Rating Agency, registered with
SEBI, and accredited by RBI as an External Credit Assessment Institution, for Bank Loan Ratings
under BASEL-II norms)

liquid assets
SLR RATE: x 100
demand+time deposits

252) ‘MobiKwik’ is the name of a—

(a) Mobile wallet and online payment system (founded in 2009)

(b) Online shopping portal

(c) White Label ATM entity

(d) Brown Label ATM entity

253) The country’s first Aadhaar based ATM is launched by which one of the following
banks?

(a) ICICI Bank

(b) SBI

(c) HDFC

(d) DCB Bank (a “card-less and PIN-less” ATM in Bengaluru, in June, 2017.)

254) Consider the following sentences regarding ‘India Post Payment bank’—

1. It is third entities that get approval from Reserve Bank of India.

2. It can accept deposits up to 3 lakh per account from individuals. Which of the above
sentence(s) is/are true?

(a) Only 1 (after Airtel and Paytm)

(b) Only 2

(c) 1 and 2

(d) None of the above

255) A currency note which is wholly or partly washed, shrunk, altered or indecipherable is
known as a —

(a) Forged banknote (b) Soiled banknote (c) Obliterated banknote (d) Imperfect banknote

256) Which of the following was established in 1928 as the first printing press for bank notes
in India?

(a) Indian Security Press (ISP), Nasik

 (b) Currency Notes Press (CNP), Nasik (1928)

(c) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Mysore

(d) Bharatiya Reserve Bank Notes Mudran Private Limited (BRBNMPL), Salboni

257) The Indian Life Insurance Company ‘Aviva India’ is a joint venture between Aviva plc,
a British insurance Company and the Indian conglomerate—

(a) Tata Group

(b) L and T Group

(c) Dabur Group

(d) TVS Group

258) A third-party administrator (TPA) is an organisation associated with the claim

settlement process in the —

(a) Exchange markets

(b) Insurance industry

(c) Commodity market

(d) Mutual fund industry

(is an Insurance Regulatory Development Authority (IRDA) registered company or an

organization that processes insurance claims on behalf of insurance companies)

259) According to the Reserve Bank of India’s guidelines to banks, customers can change up
to 20 pieces of soiled currency notes over the counter, free of charge upto a maximum value
of—

(a) `28,000

(b) `5,000

(c) `25,000

(d) `15,000

260) The ‘Currency Chests’ are store-houses where bank notes and rupee coins are clocked
on behalf of—

(a) State Bank of India (b) Public Sector Banks (c) Commercial Banks (d) Reserve Bank of
India

261) The Section 2 of ‘The Coinage Act, 2011’ clarifies that the term ‘Coin’ does ‘not’
include—

(a) Postal order or ‘p-money’ issued by any bank or post office

(b) Commemorative coin issued by Reserve Bank of India

(c) Government of India One Rupee Note

(d) Coins made of any other material stamped by Government

262) The Indian Coins are minted at the four Indian Government Mints, which of the
following is ‘not’ one of them?

(a) India Government Mint, Nasik (Maharashtra) (IGM, Mumbai)

(b) India Government Mint, Hyderabad (Telangana)

(c) India Government Mint, Noida (Uttar Pradesh)

(d) India Government Mint, Kolkata (West Bengal)

263) Consider the following statements:

1. National Payments Corporation of India (NPCI) helps in promoting the financial

inclusion in the country.

2. NPCI has launched RuPay, a card payment scheme. (in 2012, as 7th payment gateway in
the world)

Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d)
Neither 1 nor 2

264) Which of the following is a most likely consequence of implementing the ‘Unified
Payments Interface (UPI)’?

(a) Mobile wallets will not be necessary for online payments. (because your mobile number is
directly linked with the bank account using bank’s ‘customized app’ which is built on the UPI
platform)

(b) Digital currency will totally replace the physical currency in about two decades.

(c) FDI inflows will drastically increase.

(d) Direct transfer of subsidies to poor people will become very effective.

265) Which of the following statements is/are correct regarding the Monetary Policy
Committee (MPC)?

1. It decides the RBI’s benchmark interest rates.

2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3.
It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a) 1 only (b) 1 and 2 only (c) 3 only (d) 2 and 3 only

(MPC has 6 members, not 12; and it’s headed by RBI governor and not Finance Minister.)

266) Which of the following statements best describes the term ‘Scheme for Sustainable
Structuring of Stressed Assets (S4A)’, recently seen in the news?

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the
Government.

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities
facing genuine difficulties.
 (c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.

(d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented
by the Government.

267) What is the purpose of setting up of Small Finance Banks (SFBs) in India?

1. To supply credit to small business units

2. To supply credit to small and marginal farmers

3. To encourage young entrepreneurs to set up business particularly in rural areas. Select

the correct answer using the code given below:

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

268) Who among the following can join the National Pension System (NPS)?

(a) Resident Indian citizens only (NRIs are allowed as per PERDA norms)

(b) Persons of age from 21 to 55 only (18 – 55)

(c) All State Government employees joining the services after the date of notification by the
respective State Governments

(d) All Central Government employees including those of Armed Forces joining the services on
or after 1st April, 2004

269) A firm sells shares worth `1000 direct to individuals. This transaction will cause

(a) GNP to rise by `1000 (b) GDP to rise by `1000 (c) National income to rise by `1000 (d) No
impact on Gross National Product (no output is generated)

270) The volatility in the Indian share market is due to

1. inflow and outflow of foreign funds.

2. fluctuations in foreign capital markets.

3. changes in the monetary policy. Which of the above mentioned causes are correct?

(a) 1 and 2 (b) 1 and 3 (c) 1, 2 and 3 (d) 2 and 3

271) OTCEI is—

(a) Atomic Submarine of China (b) Economic Policy of USA (c) An Indian Share Market (d) A
defence research organisation

(OTCEI was incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is
recognized as a stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956.
OTCEI (over the counter exchange of India) is based in Mumbai. It is India’s first exchange for
small companies as well as first screen based nationwide stock exchange in India. Chairman:
S.C. Bhargava)

272) Debenture holders of a company are its

(a) shareholders (b) creditors (c) debtors (d) directors

273) What does S&P 500 relate to

 (a) Super computer. (b) A new technique in e-business. (c) A new technique in bridge building.
(d) An Index of stocks of large companies. ( Standard & Poor’s 500 index and is an indicator
of the equities of the United States and one of the most common benchmarks for its stock market.)

274) In the parlance of financial investment the term ‘bear’ denotes

(a) An investor who feels that the price of a particular security is going to fall.

(b) An investor also feels that the price of a particular share is going to rise.

(c) A shareholder or a bank holder who has an interest in a company, financial or otherwise

275) Which of the following statements is/ are correct?

1. NIFTY is based upon 50 firms in India.

2. NIFTY is governed and regulated by the Reserve Bank of India.

3. NIFTY does not trade in mutual funds. Select the correct answer using the codes given
below (a) Only 1 (b) Only 2 (c) Only 3 (d) 1 and 3

276) The traders reduce the risk of loss in currency fluctuations through which of the
following? (a) Speculations (b) Arbitrage (c) Hedging (d) None of the above.

NATIONAL INCOME AND HDI

278. The term mixed economy denoted existence of both

(a) rural and urban sector
(b) private and public sector
(c) heavy and small industry
(d) developed and under developed sector

279. Which is not included in the private income arising in a country?

(a) Factor income from net domestic product
(b) Net factor income from abroad
(c) Current transfers from government
(d) Current payments on foreign loans
( Private income = Domestic income accruing to private sector
+ NFIA + Net other transfer income)

280. GDP at factor cost is

(a) GDP minus indirect taxes plus subsidies
(b) GNP minus depreciation allowances
(c) NNP plus depreciation allowances
(d) GDP minus subsidies plus indirect taxes

281. National income is based on the

(a) total revenue of the state
(b) production of goods and services
(c) net profit earned and expenditure made by the state.
(d) the sum of all factors of income
 282. Which of the following is definitely a major indication of the state of the economy of a
country?
(a) Rate of GDP growth
(b) Rate of inflation
(c) Number of banks in a country
(d) None of these

283. In terms of economics, the total value of the output (goods and services) produced and
income received in a year by a domestic resident of a country put together is called
(a) Net National Product
(b) Gross National Product
(c) Gross National Income
(d) National income

284. Which sector of the Indian economy contributes largest to the GDP?
(a) Primary sector (agriculture, mining)
(b) Secondary sector (manufacturing)
(c) Tertiary sector (trade, transport, banking)
(d) Public sector

285. National Income estimates in India are prepared by

(a) Planning Commission
(b) Reserve Bank of India
(c) Central Statistical Organisation
(d) Indian Statistical Institute

286. The main source of National income in India is

(a) service sector
(b) agriculture
(c) industrial sector
(d) trade sector

287. Who estimated national income in India first?

(a) Dadabhai Naoroji
(b) R.C. Dutt
(c) V.K. R.V. Rao
(d) D.R. Gadgil

288. The National Income of a country is

(a) the annual revenue of the government
(b) sum total of factor incomes
(c) surplus of PSU’S
(d) export minus import

289. The most appropriate measure of a country’s economic growth is its

(a) Gross Domestic Product
(b) Net Domestic Product
(c) Net National Product
(d) Per capita real income

290. The existence of a parallel economy or black money

(a) makes the economy more competitive
(b) makes the monetary policies less effective
(c) ensure a better distribution of income and wealth
(d) ensure increasing productive investment

291. The philosophy of ‘Laissez-Faire’ is associated with

(a) Gandhian state
(b) Industrial state
(c) Socialist state
(d) Welfare state
(Abstention by the government from working from free market)

292. Personal disposable income means?

(a) Personal income- direct taxes
(b) Personal income- indirect taxes + fees+ fines
(c) Personal income- indirect taxes + fees+ fines+ social security contribution by employers (d) None
of these
(P.I = Direct taxes + fees + fines + social society contribution by employees)

293. Among Indian economists, who had done pioneering work on National Income?
(a) P. N Dhar
(b) Prof. Shenoi
(c) V. K. R. V Rao
(d) Jagdish Bhagwati

294. One of the problems in calculating the national income in India currently is
(a) under-employment
(b) inflation
(c) non-monetised consumption
(d) low savings

295. Which one of the following is not a feature of India’s economic planning?
(a) imperative planning
(b) limited centralisation
(c) democratic socialism
(d) indicative planning

296. What does the term ‘Green shoots’ represent in an Economy?

(a) signs of growth of agriculture sector in a growing economy
(b) signs of economic recovery during an economy downturn
(c) signs of growth of agriculture sector in a declining economy
(d) signs of economic decline in a developed economy.

297. Consider the following statements in regard to the GDP of a country :

(1) Real GDP is calculated by keeping inflation into consideration.
(2) Nominal GDP is calculated on the basis of the prices of goods and services produced in the current
year.
Which of the statements given above is/are correct?
A: Both

298. Consider the following statements :

(1) Higher growth in GDP and population can occur together.
(2) Per capita income always decreases with high population growth.
Which of the statements given above is/are correct?
A: Both

299. GDP deflator is used to :

(a) measure the relative reduction in GDP growth rate of a country.
(b) measure the inflation in a country.
(c) compare the GDP of a country vis a vis other countries of the world.
(d) estimate the purchasing power of the citizen of a country.

300. In India, rural incomes are generally lower than the urban incomes. Which of the following
reasons account for this?
(1) A large number of farmers are illiterate and know little about scientific agriculture.
(2) Prices of primary products are lower than those of manufactured products.
(3) Investment in agriculture has been lower when compared to investment in industry :
A: All
(HDI combines three dimensions: A long and healthy life: Life expectancy at birth, Education index:
Mean years of schooling and Expected years of schooling and a decent Standard of living.)

301. The ‘activity rate’ of an economy depends upon so many factors, such as :
1. School leaving age
2. Popularity of higher education
3. Social customs
4. Retirement age
(a) 1 and 2
(b) 2 and 3
(c) 2, 3 and 4
(d) 1, 2, 3 and 4

302. Which one of the following states was having the highest Human Development Index in the
year 2012?
(a) Assam
(b) Kerala
(c) Uttar Pradesh
(d) Madhya Pradesh

303. Which one of the following economists proposed the LPG model of economic development in
India?
(a) Y.B. Reddy
(b) K.V. Kamath
(c) Manmohan Singh
(d) None of these

304. Economic planning is in

(a) Union list
(b) State list
(c) Concurrent list
(d) Not any specified list
305. The concept of Economic Planning in India is derived from which country?
(a) USA
(b) UK
( c) Russia
(d) France

306. Consider the following statements regarding Indian planning.

(1) The second five year plan emphasized on the establishment of heavy industries.
(2) The third five year plan aimed to achieve self-sufficiency in foodgrains and increase agricultural
production to meet the requirements of industry and exports.
Which of the statements given above is/are correct?
A: Both

307. In the post-Independence period, economic reforms were first introduced in India under :
(a) Janata Party Government (1977)
(b) Indira Gandhi Government (1980)
(c) Rajiv Gandhi Government (1985)
(d) P.V. Narsimha Rao Government (1990)

308. Consider the following statements :

(1) LPG model of Indian Economy was fully implemented in Eighth Five Year plan.
(2) The Eighth plan envisaged an annual average growth rate of 5.6% but real growth rate was
6.8%.
Which of the statements given above is/are correct?
A: Both

309. From which one of the following enshrined in the constitution, the planning of India derives
its objectives and social premises?
(a) Fundamental Rights
(b) Fundamental Duties
(c) Directive Principles of State Policy
(d) None of the above

310. Consider the following statements:

(1) The state sets broad parameters and goals for the economy.
(2) The targets to be achieved are broadly set by the state.
(3) The plan is made for the specific time period of about 15 years.
Which of the statements given above is/are correct about the Indicative planning?
(a) 1, 2 and 3 (b) 1 and 2 (c) 1 and 3 (d) only 1

311. Consider the following statements about the LPG model of economic development process in
India?
(1) Disinvestment of profit making public sector Enterprises.
(2) Permitting private sectors to establish Industrial Units without taking a licence.
(3) Chronically sick industries were referred to BIFR for the formulation of revival or rehabilitation
plan.
Which of the processes given above is/are taken after adoption of LPG model?
A: All

312. Which of the following is not a feature of India’s economic planning?

(a) Limited centralisation
(b) Democratic solution
(c) Planning of imperative nature
(d) Planning of indicative nature
313. Which of the following is true?
(a) Financial planning is more important than physical planning.
(b) Physical planning is more important than financial planning.
(c) Physical and financial planning are equally important.
(d) Physical and financial planning are complementary.

314. Which one of the following is not included in the Agriculture and Allied Services of Indian
Economy?
(a) Fishing (b) Forestry (c) Logging (d) Food Processing

315. Which sector is the backbone of Indian economy?

(a) Service Sector (b) Financial Sector (c) Tourism Sector (d) Agriculture Sector

316. Consider the following statements :

1. Agriculture and Allied sectors contribute less than 20% of Gross Domestic product of India.
2. Around 60% of net sown agricultural area of India is depended on rainfall.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

317. The standard of living in a country is represented by its

(a) Poverty ratio (b) Per capita income (c) National income (d) Unemployment rate

318. Which one of the following is related with the Atkinson’s index of an economy ?
(a) A method to determine the income inequality
(b) An effect of supply demand mismatch
(c) A method to determine the unemployment
(d) None of the above

319. Which of the following would cause consumption to rise?

(a) the GDP Deflator rises
(b) a greater proportion of the population is between age 20 and 30
(c) transitory income increases
(d) income is taken from poor people and given to rich people

320. The most appropriate measure of a country’s economic growth is its

(a) Gross Domestic product
(b) Net Domestic product
(c) Net National product
(d) Per capita real income
(The most appropriate measure of the country’s economic growth is its “per capita real income”
which is also denoted as NNP at factor cost population.)

321. Human Development Index (HDI) is constructed with reference to

1. Life expectancy at birth, real GDP per capita, gross enrolment ratio, adult literacy rate.
2. Life expectancy at birth, real GDP per capita, combined gross enrolment ratio, adult literacy rate.
3. Life expectancy, GDP per capita, infant mortality rate, literacy rate.
4. GDP per capita, infant mortality rate, literacy rate
(a) 1 and 2 (b) 1 and 3 (c) 3 only (d) 1, 2 and 4

[HDI is the geometric mean of (i) Life Expectancy Index (LEI), Education Index (EI) and Income
Index (II).
322. National income ignores
(a) sales of a firm
(b) salary of employees
(c) exports of the IT sector
(d) sale of land

POVERTY AND UNEMPLOYMENT

323. Disguised unemployment generally means:
1. large number of people remain unemployed
2. alternative employment is not available
3. marginal productivity of labour is zero
4. productivity of workers is low
Find out the correct option.

324. To obtain full benefits of demographic dividend, what should India do?
1. Promoting skill development
2. Introducing more social security schemes
3. Reducing infant mortality rate
4. Privatisation of higher education
Which of the above statements is/are correct ?

325. Consider the following two statements and answer the question–
I. The rural poverty alleviation programme will henceforth run on mission mode.
II. National Rural Livelihood Mission is centrally sponsored programme
implemented by the states.
(a) Only I is correct
(b) Only II is correct
(c) Both I and II are correct
(d) None is correct

326. The BPL formula was suggested for the evaluation of poverty in the
chairmanship of
(a) Suresh Tendulkar
(b) Govindacharya
(c) Rangarajan
(d) Kaushik

327. Consider the following sectors of the Indian economy with respect to share of employment.
1. Agriculture sector
2. Industrial sector
3. Services sector
Arrange these sectors from highest to lowest in terms of employment and select the correct answer
using the codes given below :
(a) 1, 2, 3
(b) 1, 3, 2
(c) 3, 1, 2
(d) 3, 2, 1

328. Which one of the following curves is a graphical representation of the

relationship between unemployment and the job vacancy rate?
(a) Philips curve
(b) Laffer’s curve
(c) Beveridge curve
(d) Friedman’s curve
(Friedman’s Curve: It is a graph that obstetric care provides have traditionally
used to define a normal length and Pace of labour.
Gibrat’s law: It is rule defined by Gibrat in 1931 stating that the
proportional rate of growth of a firm is independent of its absolute size.
Verdoorn’s law: It is rule which states that in the long run, productivity
generally grows proportionally to the square root of output.)

329. If the actual unemployment rate is below the natural rate of unemployment, it would be
expected that:
(a) the rate of inflation would increase
(b) the Phillips curve would shift to the left
(c) wages would fall
(d) the natural rate of unemployment would fall

330. Poverty level in India is established on the basis of

(a) per capital income in different States.
(b) house - hold average income.
(c) house - hold consumer expenditure.
(d) slum population in the country.

331. The concept of, Vicious Circle of Poverty’ is related to :

(a) Karl Marx
(b) Nurkse
(c) Adam Smith
(d) None of the above

332. Which among the following in India is the Nodal agency for estimation of poverty at the
national and state level?
(a) Finance Commission
(b) Rural Ministry
(c) Home Ministry
(d) Planning Commission

333. In the Indian context, the studies of poverty were made by

(i) Dandekar and Rath
(ii) P.K. Bardhan
(iii) B.S. Minhas
(iv) I.J. Ahluwalia
Select the correct answer from the codes given below:
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i), (ii) and (iii)
(d) (i), (ii), (iii) and (iv)

334. In India, agriculture income is calculated by

(a) output method
(b) input method
(c) expenditure method
(d) commodity flow method
(The output method is applied to category A. The value added by this
category is found by subtracting the value of raw materials and other
inputs from the aggregate of commodity-wise output.
Expenditure Method-This method measure National income sum total of
final expenditure incurred by household, business firm, Govt. &
Foreigners.
Commodity flow method - This method is used to estimate purchase of
commodity by intermediate or final users. This method generally begins
with an estimate of the total supply of a commodity available for domestic users.)

335. The farmers are provided credit from a number of sources for their short and
long term needs. The main sources of credit to the farmers include :
1. the Primary Agricultural Co-operative Societies, Commercial Banks, RRBs and
Private money lenders.
2. the NABARD, RBI, Commercial banks and Private money lenders.
3. the District Central Co-operative Banks (DCCB), the lead banks, IRDP and JRY
4. the Large Scale Multi-purpose programme, DCCB, IFFCO and Commercial
banks.
(a) All of the above
(b) 1 and 2 only
(c) 1 only
(d) 3 and 1 only

336. Green Revolution in India started from

(a) Kanpur
(b) Delhi
(c) Bengaluru
(d) Punjab

337. The Green Revolution in India has contributed to

(a) inter-regional inequality
(b) inter-class inequality
(c) inter-crop inequality
(d) all of the above

338. Which one of the following Co-Operative societies is responsible for the
production of fertilizers?
(a) NAFED
(b) IFFCO
(c) NCDC
(d) TRI FED

339. The impact of the Green Revolution was felt most in the production of
(a) rice
(b) pulses
(c) oilseeds
(d) wheat

340. The Blue Revolution is related with

(a) Fish production
(b) Food grain production
(c) Oilseed production
(d) Milk production
(Green Revolution - Food grains
White Revolution - Milk production
Yellow Revolution - Oil seed production
Pink revolution - Onions/prawn.
Gray revolution - Fertilizers.)

341. The Minimum Support Price and procurement prices for agriculture products
are fixed by the Government on the recommendations of
(a) Competition Commission of India
(b) National Development Council
(c) Planning Commission
(d) Commission for Agricultural Costs and Prices (CACP)

342. Green Revolution in India has been most successful in case of

(a) Wheat and Rice
(b) Wheat and Potatoes
(c) Mustard and Oilseeds
(d) Tea and Coffee

343. To address the problem of sustainable and holistic development of rainfed areas, including
appropriate farming and livelihood system approaches, the government of India has set up the
(a) National Rainfed Area Authority
(b) National Watershed Development Project for Rainfed Areas
(c) National Mission on Rainfed Areas
(d) Command Area Development and Water Management Authority

344. Which of the following has not been a component of the agriculture strategy that brought
about the Green Revolution?
(a) Greater intensity of crops
(b) Guaranteed maximum prices
(c) New agricultural technology
(d) Package of inputs

345. Consider the following reasons :

1. Lack of irrigation facilities, low productivity of land.
2. Single crop mode of cultivation.
3. Indian Agriculture gamble on the monsoon.
Which of the reasons given above is/are responsible for the migration of people from rural to urban
areas
(a) 1, 2 and 3
(b) 1 and 3
(c) 2 and 3
(d) 2 only

346. Federation of India Limited (NAFED).

1. NAFED promotes the inter-state trade as well as export of certain agricultural commodities to
many foreign countries.
2. NAFED is responsible for the movement of the essential commodities from surplus areas to
scarcity areas.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
347. The Commission of Agricultural Costs and Prices fixes the
(a) Support price
(b) Wholesale price
(c) Retail price
(d) None of these

348. Which sector of Indian economy has shown remarkable expansion during the last decade?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Mining sector
(Primary Sectors - Primary activities are those which are based on natural
resource. It is called Agriculture sector.
Secondary Sectors - Secondary sector follows primary activities in which
the natural products are changed to manufacture. It is called Industrial
sector.
Tertiary Sector - Activities that assist the development of primary and
secondary sectors are carried out. Generally services are involved like
doctors, teachers, lawyers, administrators. New services like IT, software
company etc. have become important Tertiary activities.)

349. When development in economy takes place, the share of tertiary sector in national income
(a) first falls and then rises
(b) first rises and then falls
(c) keeps on increasing
(d) remains constant

350. What are the difference between Millenium Development Goals and
Sustainable Development Goals?
1. Millenium Development Goals (MDGs) were not developed through an intergovernmental
process, while SDG were.
2. All the MDGs are applicable only to the developing countries except for MDG 8 which relates to
aid and finance.
Options :
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) None of these

351. Quaternary sector implies

(a) Activities related to mining and quarrying
(b) Activities related to manufacturing
(c) Fishing activities
(d) Research and developmental activities

352. ‘Udyog Bandhu’ is a/an?

(a) labour supplying agency
(b) sick industry rehabilitation agency
(c) organisation to assist industrial units in solving time bound establishment and investment
related problems
(d) agency for financing industrial development

353. NASSCOM is the organisation of companies of which sector?

(a) Media
(b) Mobile phone service
(c) Information Technology
(d) Automobiles

354. What is the major contribution of the Electronics industry to the country?
(a) Maximised wealth formation
(b) Reduced poverty
(c) Improved standard of living
(d) Encouraged employment

355. The largest source of revenue for Britishers in India was from ______?
(a) Textile and Jute Industry
(b) Gems and Stone Industry
(c) Temple Tax
(d) Land revenue

356. Durgapur steel plant was set up in assistance of

(a) UK
(b) USA
(c) France
(d) Germany

357. Identify the correct sequence of the establishment of steel plant in India from the earliest to
the latest.
(a) Bokaro–Jamshedpur, Vishakhapatnam, Bhilai
(b) Jamshedpur–Bhilai, Bokaro–Vishakhapatnam
(c) Bhilai, Jamshedpur, Vishakhapatnam, Bokaro
(d) Jamshedpur, Bokaro, Bhilai, Vishakhapatnam

358. Which one of the following statement is incorrect?

(a) India is the second largest manufacturer of cement in the world.
(b) India ranks 4th in the world in terms of production of ceramic tiles.
(c) India holds 3rd position in the production of salt in the world.
(d) India is the second largest producer of cotton in the world after China.

359. Which of the following occupations are included under secondary sector as per the national
income accounts ?
1. Manufacturing
2. Construction
3. Gas and water supply
4. Mining and quarrying
Select the correct answer using the codes given below
(a) 1, 2, 3 and 4
(b) 1, 2 and 4
(c) 1, 2 and 3
(d) 3 and 4
(Primary sector-Agriculture, forestry fishing, mining and quarrying
Secondary sector- Manufacturing and construction, Gas and water supply
Tertiary sector- trade, transport catering, hotels, community and personnel
services, communication etc.)

360. Division of labour often involves

1. specialized economic activity.
2. highly distinct productive roles.
3. involving everyone in many of the same activities.
4. individuals engage in only a single activity and are dependent on others to meet their various needs.
Select the correct answer using the code given below:
(a) 1, 3 and 4 only
(b) 1, 2 and 4 only
(c) 3 only
(d) 2 and 4 only

361. HAL is related to manufacturing of

(a) Telecommunication equipments
(b) Aircrafts
(c) Space missiles
(d) War missiles

362. Infrastructure cess is a levy/tax on—

(a) Builders
(b) Railways
(c) Motor vehicles
(d) Public Transport

363. Which is not included in 8 core sectors in India?

(a) Coal
(b) Fertiliser
(c) Electricity
(d) Chemical
(Eight Core sectors in India include Coal, Crude Oil, Natural Gas, Refinery Products, fertilisers, steel,
cement and electricity)
 Which of the following institutions was/were asked by the Government of India to
provide official estimates of black (unaccounted) money held by Indians, both in
India and abroad?
1. National Institute of Public Finance and Policy.
2. National Council of Applied Economic Research.
3. National Institute of Financial Management.
Select the correct answer using the codes given below
(a) Only 1 (b) 1 and 2 (c) 2 and 3 (d) All of these
 In India, mergers and acquisition of firms are regulated by
(a) National Manufacturing Competitiveness Council
(b) Competition Commission of India
(c) Security and Exchange Board of India
(d) Department of Industrial Policy and Promotion

CURRENT AFFIARS:
Finance Minister Nirmala Sitharaman introduced a new MISHTI (Mangrove Initiative for
Shoreline Habitats & Tangible Incomes) scheme in the Union Budget 2023-24
The Indian Finance Ministry has made amendments to the Prevention of Money Laundering Act
(PMLA) rules on March 10, 2023
 On February 22, the Securities and Exchange Board of India (SEBI) has given the National Stock
Exchange of India (NSE) the green light to establish a Social Stock Exchange (SSE). The SSE
provides a medium for social enterprises to seek finance for their social initiatives and acquire
visibility.
The Reserve Bank of India (RBI) has signed a Currency Swap Agreement with the Maldives
Monetary Authority (MMA) under the SAARC Currency Swap Framework.
On 29th July 2022, India International Bullion Exchange (IIBX) was launched at Gujarat
International Finance Tec-City (GIFT City) - India’s maiden International Financial Services
Centre (IFSC).

On 30th June 2022, Udyami Bharat Programme was organized in Delhi. ‘Udyami Bharat’ is
reflective of the continuous commitment of the government to work towards the empowerment of
MSMEs. The government has launched several initiatives from time to time like MUDRA Yojana,
Emergency Credit Line Guarantee Scheme, Scheme of Fund for Regeneration of Traditional
Industries (SFURTI) etc. to provide necessary and timely support to the MSME sector, which has
helped benefit crores of people across the country.

An IMF working paper recently suggested that extreme poverty in India was as low as 0.8% in 2019
and the country managed to keep it at that level in 2020 despite the pandemic, by resorting to food
transfers through the Pradhan Mantri Garib Kalyan Yojana
Highlights of the Union Budget 2022-23
 On 1st February 2022, Finance Minister Nirmala Sitharaman (since 2019) presented the Union
Budget 2022-23 in Parliament. It was the second paperless budget
 India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all
large economies.
 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors.
PLI Schemes have the potential to create an additional production of Rs 30 lakh crore
 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee
Scheme (ECLGS)
 A new scheme PM-DevINE launched to fund infrastructure and social development projects
in the North-East.
 'Kisan Drones' for crop assessment, digitization of land records, spraying of insecticides and
nutrients
The Budget goals for FY2022-23 aim to further India's aspirations in Amrit Kaal, as it moves towards
its 100th year post independence.
 Focus on growth and all-inclusive welfare
 Promoting technology-enabled development, energy transition and climate action
 Virtuous cycle starting from private investment, crowded in by public capital investment

Former Reserve Bank of India (RBI) governor Urjit Patel has been appointed as a vice-president of
the Asian Infrastructure Investment Bank (AIIB), a Beijing based multilateral development bank

Airtel Payments Bank has been categorised as a scheduled bank by the Reserve Bank of India
(RBI).

Recently, the Union government approved the extension of the Pradhan Mantri Krishi Sinchayee
Yojana (PMKSY) till 2026 — a move expected to help fund irrigation projects that will increase
water supply across northern India.
 On 9th December, 2021, Capital markets regulator Securities and Exchange Board of India (SEBI)
proposed a regulatory framework for algorithmic trading (algo trading) by retail investors to make
such trading safe and prevent market manipulations.

The Labour ministry has released the new series of wage rate index (WRI) with the base year being
2016. A total of 37 industries have been covered in the new WRI basket as against 21 industries in the
1963-65 series. The selected 37 industries in the new series are 30 from the manufacturing sector, four
from the mining sector and three from the plantation sector.

On 12th November 2021, Prime Minister Narendra Modi virtually launched two innovative customer
centric initiatives of RBI: ‘Retail Direct Scheme’ and ‘Reserve Bank - Integrated Ombudsman
Scheme, 2021’.

Kerala has won the award for the ‘city with the most sustainable transport system’.

The Reserve Bank of India (RBI) has issued a Small Finance Bank (SFB) licence to ‘Unity Small
Finance Bank

On 17th August 2021, the Reserve Bank of India (RBI) has launched a “Financial Inclusion Index” or
FI-Index to measure and improve the extent of access, usage and quality of financial inclusion in the
country.

e-RUPI, a person and purpose specific digital payment solution was launched on 2nd August 2021.

The United Nation’s Economic and Social Commission for Asia Pacific's (UNESCAP) has released
its latest Global Survey on Digital and Sustainable Trade Facilitation. India performed remarkably in
this survey and jumped from 78.49% in 2019 to 90.32% in 2021.

The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for specialty steel.
The duration of the scheme will be five years, from 2023-24 to 2027-28.

On 5th July 2021, the Department of School Education and Literacy, Ministry of Education launched
National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat).

The Registrar General of India has released the 2019 report of Civil Registration System (CRS)
findings - “Vital Statistics of India based on the Civil Registration System”. In a huge improvement
from the previous census, none of the State/UT has recorded Sex ratio at birth below 901. Arunachal
Pradesh had the highest ratio of 1,024. In Kerala, though the SRB was still a high 960, it has
worsened from 965 in 2017. Similarly, in Himachal Pradesh, it has been steadily worsening and is
now 918.

The UNDP has launched ''Sahi Disha'' campaign to celebrate women's livelihoods and
entrepreneurship in rural India. The campaign highlights issues and hurdles that impact the
opportunities for women in rural India to access jobs and livelihoods and establish enterprises that can
help them become more self-reliant.

Jawahar Rozgar Yojna was launched on April 1, 1989 by merging National Rural Employment
Program (NREP) and Rural Landless Employment Guarantee Programme (RLEGP). In Seventh Five
Year Plan the smallscale and food processing industries were given new impetus as the plan laid
stress on improving the productivity level of industries by upgrading technology.

India’s GDP in 2021 = 8.7 and 6.9 in 2022

Life expectancy at birth = 67

Population = 1.41 billion with 0.8% growth rate

HDI = 0.645 in 2019 and 0.633 in 2021 ranks 132 globally

Unemployment = 7.3 (2022)

Inflation = 5.51% (2021)

CRR – 4.5

SLR – 18

Repo rate – 6.5

Bank rate – 6.75

Reverse repo rate – 3.35

CONTEMPORARY INDIAN ECONOMY:

Who presents the Union Budget of India and in which house?
a. Finance Minister of India; Lok Sabha
b. Prime Minister of India; Rajya Sabha

c. Cabinet Secretary; Both Lok Sabha and Rajya Sabha

d. President of India; in the joint session of Parliament

The Union Budget of India alluded to as the Annual Financial Statement in Article 112 of the
Constitution of India and introduced every year on the absolute first day of February by the
Finance Minister of India in Parliament.

When was the first budget of Independent India presented and by whom?

A. Manmohan Singh
B. Jawaharlal Nehru
C. R K Shanmukham Chetty (on 26 November 1947)
D. D. Tiwari

Who among the following presented the first budget of Republic India? John Mathai

Which Budget is known as the Black Budget of India?

A. 1973-74
B. 1950-51
C. 1948-49
D. 1991-92
The 1973-74 spending plan was introduced during serious monetary pressure, coming
directly following a bombed rainstorm and the 1971 Bangladesh war.

In which budget was service tax introduced in India?

A. Budget 1997-98
B. Budget 1973-74
C. Budget 1994-95 (July 1, 1994)
D. Budget 1990-91

What is Budget Deficit?

A. When expenses exceed revenue and indicate the financial health of a country
B. Shortage of funds with the government to maintain its day-to-day affairs
C. The shortfall in a government's income compared with its spending
D. Difference between the current year's fiscal deficit and interest payment on previous
borrowings

What is Revenue Deficit?

A. When expenses exceed revenue and indicate the financial health of a country
B. Shortage of funds with the government to maintain its day-to-day affairs
C. The shortfall in a government's income compared with its spending
D. Difference between the current year's fiscal deficit and interest payment on previous
borrowings

What is a Fiscal Deficit?

A. When expenses exceed revenue and indicate the financial health of a country
B. Shortage of funds with the government to maintain its day-to-day affairs
C. The shortfall in a government's income compared with its spending
D. Difference between the current year's fiscal deficit and interest payment on previous
borrowings

What is Effective Revenue Deficit?

A. The shortfall in a government's income compared with its spending

B. Difference between the current year's fiscal deficit and interest payment on previous
borrowings
C. Difference between revenue deficit and grants for creation of capital assets
D. Purchase of government bonds by the central bank to finance the spending needs of
the government

What is Monetised Deficit?

A. The shortfall in a government's income compared with its spending

B. Difference between the current year's fiscal deficit and interest payment on previous
borrowings
C. Difference between revenue deficit and grants for creation of capital assets
 D. Purchase of government bonds by the central bank to finance the spending needs
of the government

Who among the following was the first finance minister to present budget in India before
Independence? – James Wilson

1. The levy of GST compensation cess has been extended till which year?
[A] 2023
[B] 2025
[C] 2026
[D] 2030
Which new body has been approved to replace the Banks Board Bureau (BBB)?
[A] Financial Services Institution Bureau (FSIB)
[B] Financial Institutions Bureau (FIB)
[C] Banks Appointment Bureau (BAB)
[D] Banks and Insurance Companies Bureau
As per the recent revision in FCRA rules, what is the limit up to which Relatives living
abroad can send money to Indians?
[A] ₹2 lakh
[B] ₹10 lakh
[C] ₹5 lakh
[D] ₹50 lakh
Which institution releases the Index of Industrial Production (IIP) output data?
[A] NITI Aayog
[B] National Statistical Office
[C] Department of Financial Services
[D] Department of Economic Affairs
What is the rank of India in the world in terms of:
rice export - 2nd
fish, coal – 3 rd

In which year Kisan Credit Card Scheme was launched?

(A) 1990

(B) 1950

(C) 1998

(D) 2000

When was the first agricultural census conducted?

(A) 1948

(B) 1990

(C) 1976
(D) 1970

In which crop the most disappointing result of Green Revolution was seen?

(A) Pulses

(B) Maize

(C) Oilseeds

(D) Soyabean
144) According to 2011 census the rate of urbanization in India is
145) a. 72.2%
146) b. 32.5%
147) c. 31.16d.