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