Indian EconomyOnline Test

Indian Economy Model Test 1 in English

Indian Economy Model Test Questions 1 in English

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Question 1
Income Tax and property tax are called
A
Direct Taxes
B
Indirect Taxes
C
Utility Taxes
D
Wealth Taxes
Question 2
The major source of revenue to the government is
A
Tax revenue
B
Revenue from public enterprises
C
Administrative revenue
D
Foreign aid
Question 3
In a free economy inequalities of income are mainly due to
A
free competition
B
private property only
C
private property and inheritance
D
difference in the marginal productivity of labour
Question 4
Land Ceiling Legislation was introduced by the State Government during the __________ plan
A
II nd
B
III rd
C
IV th
D
Vth
Question 5
To which categories of rural population the IRDP directed?
A
Landless labourers
B
Small and marginal farmers
C
Rural artisans
D
All of these
Question 6
What are the causes of urbanization in India?
A
Pressure of population in agriculture
B
Absence of non-agricultural job in rural areas
C
Lure of Town life
D
All of these
Question 7
Public dept refers to
A
government’s dept
B
private individual’s dept
C
a firm’s debt
D
debt of a foreign country
Question 8
Inflation is caused by
A
increase in money supply
B
increase in production
C
decrease in production
D
both (A) and (C)
Question 9
Which of the following is the most important document of the company?
A
Memorandum of Association
B
Articles of Association
C
Prospectus
D
Annual Report
Question 10
In the case of fire insurance
A
a fixed sum is paid at the end of the period of insurance
B
no money is paid unless the risk happens
C
money is paid when the event happens and the policy expires
D
Money is paid after one month from the date of the policy
Question 11
Audit of Joint stock companies is conducted in order to
A
increase the profits
B
increase the goodwill
C
meet the statutory requirement
D
satisfy the shareholders
Question 12
The number of subordinates who can be successfully directed by a superior is called
A
organising
B
span of management
C
delegating
D
none of these
Question 13
The Industrial Finance Corporation of India provides assistance only to
A
large industries
B
medium industries
C
small scale industries
D
government companies
Question 14
Job evaluation is
A
ranking the workers
B
placement of workers
C
determining and comparing the demand of the job
D
none of these
Question 15
If files arranged side by side, it is called
A
horizontal filing
B
vertical filing
C
lateral filing
D
suspension filing
Question 16
Vouching relates to
A
cash receipts
B
cash payments
C
credit transactions
D
all of these
Question 17
Under instalment trading ownership passes to the buyer
A
as soon as the first instalment is paid
B
when the last instalment is paid
C
30 days after the last instalment is paid
D
depending on the agreement
Question 18
The maximum number of partners allowed in a banking business is
A
10
B
20
C
30
D
50
Question 19
Debenture holders of a company are its
A
Members
B
Creditors
C
Debtors
D
Directors
Question 20
Which one of the following is correctly matched?
A
Delivery Order - Name of the Shipper and the Place
B
Railway Receipt - Charter Party
C
Way Bill - Lorry
D
Bill of Landing - Air consignment note
Question 21
Consider the following statements:
  1. Co-operative organisations are non-profit making body
  2. Co-operative societies are functioning with the direction of their departments
  3. The Principles of co-operation may be contrary to the Co-operative Act some times.
  4. Co-operative Movement is the old one of the statements:
A
I alone is correct
B
I and II are correct
C
I,II and III are correct
D
All are correct
Question 22
The minimum number of members in a Co-operative society in TamilNadu is
A
Ten
B
Fifteen
C
twenty
D
Twenty-five
Question 23
A Bill of Exchange contains
A
an unconditional order
B
a promise
C
request to deliver goods
D
none of these
Question 24
The Reserve Bank of India was started in the year
A
1932
B
1935
C
1945
D
1950
Question 25
Consider the following statements:
  1. Profit is the reward for uncertainty bearing
  2. Profit is the reward for risk bearing
  3. Profit is the reward for capital
  4. Profit is the reward for labour
Of the statements:
A
I alone is correct
B
I and II are correct
C
I, II and III are correct
D
All are correct
Question 26
NABARD is a
A
Bank
B
Bureau
C
Board
D
Department
Question 27
Match list I with list II correctly and select your answer using the codes given below: List I                                 List II
  1. Adam Smith 1. Scarcity
  2. Marshall 2. Growth
  3. Robbins 3. Welfare
  4. Samuelson 4.Wealth
A
4 3 1 2
B
3 4 2 1
C
2 1 3 4
D
1 2 3 4
Question 28
Barter System means
A
Direct exchange of goods for goods
B
Direct exchange of gold
C
Indirect exchange of goods
D
Indirect exchange of gold
Question 29
Which one of the following is correctly matched?
A
First Plan - 1952-1957
B
Third Plan - 1964 – 1969
C
Sixth Plan - 1981 – 1986
D
Eighth Plan - 1992 – 1997
Question 30
TRYSEM deals with the training of
A
Young scientists for employment
B
Rural youth for self employment
C
Young students for employment
D
Young Women for employment
Question 31
A certain percentage of the sum assured is paid periodically according to the terms of the policy
A
Endowment life policy
B
Term policy
C
Money back policy
D
Group insurance policy
Question 32
Which of the following is correctly matched?
A
Debenture - Interest
B
Share - Sole trader
C
Desposit receipt - Divident
D
Demand Promissory Note – Share Warrant
Question 33
Internal trade means
A
Export
B
Import
C
Trade within the country
D
None of these
Question 34
In Monopoly Pricing there will be
A
less competition
B
perfect competition
C
more competition
D
no competition
Question 35
What is the life blood of commerce?
A
Export, Import
B
Trade
C
Agriculture
D
Industry
Question 36
Sugar Industry can be classified under
A
Tiny Industry
B
Medium Industry
C
Agro-based Industry
D
None of these
Question 37
One of the basic characteristics of an under-developed economy is
A
70% to 90% of the population is engaged in agriculture
B
High rate of Investment
C
Low population
D
None of these
Question 38
The period of English Five year Plan is
A
1992-97
B
1990-95
C
1991-96
D
1993-98
Question 39
UTI is associated with
A
Regulating Foreign Exchange Transactions
B
Foreign Trade
C
Road Transport
D
Investment Trust
Question 40
Environomics deals with inter-relationship between environment and
A
Economy
B
Development
C
Energy
D
Resources
Question 41
Food for work programme was introduced during the
A
Fourth Plan
B
Fifth Plan
C
Sixth Plan
D
Seventh Plan
Question 42
The State where most people are living below poverty line is
A
Uttar Pradesh
B
Tamil Nadu
C
Orissa
D
Bihar
Question 43
Overdraft facility is available for those who have
A
Saving Bank Account
B
Fixed Deposit
C
Current Account
D
Recurring Deposit
Question 44
The part of capital which is not represented by assets is called
A
fixed Capital
B
Working Capital
C
Watered Capital
D
None of these
Question 45
Custodian of foreign exchange is
A
Foreign Exchange Bank
B
State Bank of India
C
Foreign Bank
D
Reserve Bank of India
Question 46
State Bank of India was nationalised in the year
A
1947
B
1955
C
1950
D
1960
Question 47
Single entry system of book keeping means
A
making entry for one aspect of a transaction
B
making entry for both aspects of a transaction
C
incomplete double entry
D
none of these
Question 48
The closing stock should be valued at
A
Cost Price
B
Market Price
C
Cost Price or Market Price whichever is lower
D
None of these
Question 49
Equity shareholders are the Company’s
A
Owners
B
Creditors
C
Customers
D
None of these
Question 50
The relationship between the consignor and the consignee is that of
A
Principal and Agent
B
Debtor and Creditor
C
Buyer and Seller
D
None of these
Question 51
Consider the following statements:
  • Bank accepts deposit
  • Bank issues loans and advances
  • Bank is one of the financial institutions
  • Bank are working under the direction of the R.B.I.
Of the statements:
A
I alone is correct
B
I and II are correct
C
I,II and III are correct
D
All are correct
Question 52
The document which authorises to release of a portion of goods from the warehouse is called
A
Delivery order
B
Warehouse keeper’s receipt
C
Warehouse keeper’s warrant
D
Railway receipt
Question 53
Federal Finance deals with
A
State finances
B
Finances of Railways
C
Local bodies
D
Centre-State financial relations
Question 54
National income in India is computed by the
A
Planning Commission
B
Finance Commission
C
Central Statistical Organisation
D
Ministry of Finance
Question 55
Saving is determined by
A
Capital
B
Investment
C
Income
D
Trade
Question 56
The book planned Economy of India I  1934 was written by
A
Morarjee Desai
B
Pandit Nehru
C
M. Visweshwaraya
D
Dr. Dadgil
Question 57
The Industries (Regulation and Development) Act was introduced in
A
1951
B
1955
C
1961
D
1956
Question 58
National Rural Employment programme was introduced during
A
Fifth Five Year Plan
B
Second Five Year Plan
C
Third Five Year Plan
D
Sixth Five Year Plan
Question 59
The author who made the statement: “Foreign trade in an engine of Growth” was
A
Keyanes
B
Marshall
C
D.H.Robertson
D
Pigou
Question 60
Seasonal unemployment occurs due to
A
technological change
B
seasonal variations
C
depression
D
inflation
Question 61
Jawahar Rojgar Yojana was introduced in
A
1975
B
1981
C
1965
D
1989
Question 62
Which of the following are the main causes of slow growth of per capita income in India?
  1. High rate of capital formation
  2. High level of fiscal deficits
  3. High rate of growth of population
  4. High capital output ratio
A
I, II and III are correct
B
III and IV are correct
C
I,II, III & IV are correct
D
II & IV are correct
Question 63
Which one of the following will directly increase GNP?
A
An Increase in investment
B
A surplus budget
C
A fall in national dept
D
A rise in the interest rate
Question 64
Expenditure on defence is an item of
A
Public investment
B
Private investment
C
Private consumption
D
Public consumption
Question 65
Total outlay planned for public sector during the Eighth Plan (Rs. in Crores) is
A
2,34,000
B
3,34,000
C
4,34,000
D
5,34,000
Question 66
Long –terms loans in India’s Co-operative structure are extended by
A
Primary Co-operative Societies
B
Central Bank
C
State Co-operative Banks
D
Land Development Banks
Question 67
The core slogan of the Seventh Plan was
A
food, work and productivity
B
free education for children
C
five percent growth rate of national income
D
community development programmes
Question 68
Which of the following are among the non-Plan expenditures of the Government of India?
  1. Defence expenditures
  2. Subsides
  3. All expenditures linked with the previous plan periods
  4. Interest payment
A
I and II are correct
B
I and III are correct
C
II and IV are correct
D
I,II, III & IV are correct
Question 69
India had a plan holiday between
A
1947 and 1951
B
1963 and 1966
C
1966 and 1969
D
1971 and 1974
Question 70
Which sector’s contribution of National Income is declining in India in recent years?
A
Primary
B
Secondary
C
Tertiary
D
All the above
Question 71
Large Scale industries are those industries where the investment on plan and machinery needed is
A
10 lakhs
B
20 lakhs
C
30 lakhs
D
more than 35 lakhs
Question 72
Which of the following socio-economic factors tend to keep birth rate in India at a high level
  1. Poverty II. Joint family system
III. Urbanisation               IV. University of marriage Select your answer:
A
I & II
B
I,II & III
C
I,II & IV
D
I,II,III & IV
Question 73
Which of the following are the cause of low productivity in Indian Agriculture?
  1. Land ceiling II. Rainfed areas
III. Rural industrialisation            IV. Sub-division and fragmentation of land holding Select your answer:
A
II & IV
B
I & II
C
II & III
D
I & IV
Question 74
The new name of Agricultural Prices Commission is
A
Commission for Agricultural Costs and Prices.
B
Agricultural Costs Commission
C
Rural Price Commission
D
Minimum Support Price Commission
Question 75
SIDCO is related to the development of
A
Small Industries
B
Steel Industries
C
Soap Industries
D
Sugar Industries
Question 76
CART was set up in 1982 to
A
Promote apple research
B
improve the bullock-cart
C
provide advanced research and training to veterinary doctors
D
improve technology of rural industries
Question 77
Which of the following programmes were started during the Sixth Five Year Plan?
  1. NREP II. RLEGP III. IRDP                    IV. JRY
Select your answer:
A
I & III
B
II & IV
C
I,II & III
D
. I,III & IV
Question 78
Match List I with List II correctly and select your answer using the codes given below List I                                                                     List II
  1. MRTP 1. 1951
  2. Long term Fiscal Policy 2. 1965
  3. Agricultural Prices Commission 3. 1970
  4. Industries (Development and Regulation) Act 4. 1985
A
4 2 3 4
B
4 3 1 2
C
3 4 2 1
D
2 3 4 1
Question 79
Match List I with List II correctly and select your answer using the codes given below: List I(Committee)                         List II (Purpose)
  1. Dutt 1. Industrial Licensing Committee
  2. Wanchoo Committee 2. Direct Taxes
  3. Rajamannar Committee 3. Centre-State Fiscal Relation
  4. Charkravarthy Committee 4. Monetary System
A
4 3 2 1
B
1 2 4 3
C
1 2 3 4
D
4 1 3 2
Question 80
Disguised unemployment refers to
A
persons with on jobs
B
more persons employed for a job which few can accomplish
C
unemployment among women
D
unemployment of people above 60 years of age
Question 81
Food for work programme was introduced during the
A
Fourth Plan
B
Fifth Plan
C
Sixth Plan
D
Seventh Plan
Question 82
Which one of the following is correctly matched?
A
Russia - Dinar
B
Iraq - Lira
C
Japan - Yen
D
Brazil - Franc
Question 83
The national income in India is estimated by the
A
Indian Standards Institution
B
Indian Statistical Institution
C
Central Statistical Organisation
D
National Council of Applied Economic Research
Question 84
Which of the following is the largest Mutual Fund Organisation in India?
A
SBI Mutual Fund
B
GIC Mutual Fund
C
Indian Bank Mutual Fund
D
Unit Trust of India
Question 85
India suffered from first oil shock in
A
1969
B
1971
C
1973
D
1975
Question 86
The ‘Garibi Hatao’ Slogan was coined during the
A
First Plan
B
Second Plan
C
Third Plan
D
Fifth Plan
Question 87
The open market operations refer to the sale and purchase by the RBI of
A
Gold
B
Foreign Exchange
C
Government Shares
D
Government Securities
Question 88
The Dunkel Draft was first submitted in its comprehensive form for consideration in
A
December, 1987
B
December, 1989
C
December, 1991
D
December, 1993
Question 89
Indian rupee was last devalued in
A
January, 1991
B
March, 1991
C
May, 1991
D
July, 1991
Question 90
Which of the following factors led to the failure of the Third Plan?
  1. Chinese aggression II. Indo-Pak conflict
III. Devaluation of rupee              IV. Poor monsoons Select your answer
A
I & III only
B
III & IV only
C
I,II & IV only
D
I,II, III & Iv
Question 91
Which of the following features of Indian Economy cause problems in the measurement at national income?
  1. Illiteracy II. Rapid growth of public sector
III. Non-monetised consumption in the villages  IV. People holding multiple jobs. Select your answer:
A
I & II
B
I,III & IV
C
I,II & III
D
II,III & IV
Question 92
The purpose of the tenancy reform legislation was to
  1. Chinese aggression II. Indo-Pak conflict
III. Devaluation of rupee              IV. Poor monsoons Select your answer
A
I & III only
B
III & IV only
C
I,II& IV only
D
I,II,III&IV
Question 93
Per capita income has been the highest so far in
A
Maharashtra
B
Tamil Nadu
C
Punjab
D
West Bengal
Question 94
The major factor that determines industrial productivity is
A
Technological
B
Financial
C
Natural
D
Managerial
Question 95
The important factor that hinders industrialization in underdeveloped countries is
A
Political policy
B
Public administration
C
Economic environment
D
International forces
Question 96
The important factor responsible for low productivity in agriculture is
A
demographic factor
B
technological factor
C
institutional factors
D
structural factor
Question 97
A noticeable feature of our industrial development has been the
A
growth of small scale sector
B
establishment of Iron and Steel Industries
C
creation of employment opportunities
D
growth of public sector
Question 98
The most important source of energy in India is
A
Nuclear energy
B
Petroleum
C
Coal
D
Hydro-electricity
Question 99
The backbone of all economic activities is
A
Agriculture
B
Finance
C
Industry
D
Education
Question 100
The most rigidly government controlled industry in India is
A
Cement
B
Sugar
C
Cotton
D
Paper
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