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Indian Economy Model Test 2 in English

Indian Economy Model Test Questions 2 in English

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Question 1
The basic characteristics of an underdeveloped economy is
A
unemployment
B
low productivity
C
low per capita income
D
high illiteracy level
Question 2
Uncertain income in any enterprise is
A
rent
B
wages
C
interest
D
profit
Question 3
The volume of Savings in a country depends upon the level of
A
natural wealth
B
national income
C
development of industries
D
employment
Question 4
The per capita income is
A
National income X population
B
population/(National Income)
C
(National Income)/Population
D
none of these
Question 5
The second nationalization of banks took place in India in the year
A
1969
B
1979
C
1975
D
1980
Question 6
Consider the following statements:
  • Assertion(A): India is one of the leading Industrial countries the developing countries.
  • Reason(R): Government of India has neglected altogether the traditional craft Industries.
Now select your answer using the codes scheme given below:
A
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true but (R) is false
D
(A) is false but (R) is true
Question 7
“FERA” stands for
A
Foreign Exchange Regulation Act
B
Foreign Exchange Restrictions Act
C
Foreign Exchange Reserve Act
D
All of these
Question 8
“Economic Planning” refers to
A
increasing the tax revenue
B
allocation of resources
C
proper planning to utilize manpower
D
exploitation of tax revenue and manpower
Question 9
The total number of nationalized banks in India is
A
14
B
16
C
17
D
20
Question 10
Octrol refers to
A
Tax
B
Agriculture
C
Industry
D
none of these
Question 11
The committee on the Financial System to trace the ills of public sector banks was headed by
A
Dr. Man Mohan Singh
B
Dr. Ranganathan
C
Dr. Narasimha
D
Dr. Raja Chelliah
Question 12
The main and final aim of Land Reform is
A
abolition of intermediaries
B
fixing ceiling on land holding
C
fixation of fair rent
D
making tillers as the owners of the soil
Question 13
What is the target growth rate as envisaged in the Ninth Five Year Plan?
A
5.5%
B
6%
C
7%
D
8%
Question 14
Ninth Five Year Plan period is between
A
1996 – 2001
B
1997 – 2002
C
1998 – 2003
D
1999-2004
Question 15
Human Resource Development was recognized as the core of all developmental efforts in
A
the Second Five Year Plan
B
the Fifth Five Year Plan
C
the Sixth Five Year Plan
D
the Eighth Five Year Plan
Question 16
Which is not related to Industries?
A
SIPCOT
B
CIPKO
C
TANSITIA
D
SIDCO
Question 17
Which is not a fibre material?
A
Jute
B
Silk
C
Flax
D
Rubber
Question 18
In India, Policy of Population Control was introduced in
A
1951
B
1961
C
1971
D
1947
Question 19
National Income is
A
income of the Central Government
B
income of the Central and State Government
C
total of factor incomes
D
profits of the public sectors
Question 20
A serious effort to tackle the problem of poverty began with
A
First Five Year Plan
B
Second Five Year Plan
C
Fourth Five Year Plan
D
Seventh Five Year Plan
Question 21
In which plan was the growth rate target exceeded?
A
First
B
Second
C
Sixth
D
Seventh
Question 22
Consider the following statements:
  • Assertion(A): Indian Economy is a developing economy
  • Reason(R): India has disguised unemployment
A
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true but (R) is false
D
(A) is false but (R) is true
Question 23
Reserve Bank of India issues all currency notes except
A
one-rupee note
B
two-rupee note
C
five-rupee note
D
ten-rupee note
Question 24
The Central Bank of our country is the
A
Reserve Bank of India
B
State Bank of India
C
Central Bank of India
D
Indian Bank
Question 25
Consignment account is the nature of
A
real account
B
personal account
C
nominal account
D
profit and loss account
Question 26
“Grapevine” is a term used in relation to
A
formal communication
B
informal communication
C
both formal and informal communication
D
informal motivation
Question 27
“Horlicks” is a __________ name.
A
material
B
brand
C
institution
D
company
Question 28
Advertising creates a
A
brand loyalty
B
quality of the product
C
purchasing capacity
D
none of these
Question 29
Match List  I with List II correctly and select your answer using the codes given below: List I                     List II
  1. Inflation 1. Controlled inflation
  2. Deflation 2. Money supply increases
  3. Stag flation 3. Money supply decreases
  4. Reflation 4. Rise in price without growth
A
4 1 2 3
B
1 2 3 4
C
2 3 4 1
D
3 4 1 2
Question 30
Consider the following statements:
  1. means Voluntary Disclosure of Income Scheme
  2. was introduced in 1997
  3. helped the tax evaders to declare undisclosed income of over Rs.33,000 crores.
  4. helped the Government to get a tax of more than Rs. 10,050 crores
A
I and II are correct
B
I,II and III are correct
C
I,III and IV are correct
D
All are correct
Question 31
All losses and expenses are
A
debited
B
credited
C
both debit and credit
D
no entry
Question 32
The basic function of an economy is
A
consumption
B
production
C
investment
D
all these
Question 33
Consider the following statements:
  • Assertion(A): Demand curve normally slopes down wards.
  • Reason(R): Demand for goods increases when price increases.
A
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true but (R) is false
D
(A) is false but (R) is true
Question 34
Black money refers to
A
paper money which is black in colour
B
money earnings from business
C
unaccounted money
D
none of these
Question 35
Recent Tax reforms in India are based on the
A
Rajah J.Chelliah Committee report
B
Chocksi Committee report
C
Wanchoo Committee report
D
Raj Committee report
Question 36
Dunkel proposal is related to
A
patent right
B
fundamental right
C
human right
D
none of these
Question 37
The programme IRDP is connected with
A
Industry
B
Transport
C
Villages
D
Trade
Question 38
The period of Ninth Five Year Plan is
A
1997-2002
B
1996-2001
C
1998-2003
D
1999-2004
Question 39
Expenditure on defence is an item of
A
Public welfare investment
B
Security of the nation
C
Government’s duty
D
Development
Question 40
When did RBI become a state owned institution?
A
1947
B
1949
C
1952
D
1956
Question 41
Consumers surplus is
A
Surplus consumer
B
Consumers surplus profit
C
Surplus product
D
Surplus satisfaction
Question 42
Free trade zone is
A
Kandla port
B
Mumbai port
C
Vishakhapatnam port
D
Cochin port
Question 43
National Renewel Fund was constituted in
A
1990
B
1992
C
1994
D
1996
Question 44
The item that earns the maximum foreign exchange for India is
A
leather and leather goods
B
spices
C
medicines
D
rice
Question 45
SIDCO was established in
A
1950
B
1952
C
1954
D
1956
Question 46
Fourth Five Year Plan period was
A
1966-71
B
1968-73
C
1969-74
D
1970-75
Question 47
Consider the following statements:
  1. India is a developing economy
  2. India is the second stage of demography
  3. India ranks second among the highly populated countries
  4. India stands first in Industrial production.
A
I alone is correct
B
I and II alone is correct
C
I,II and III are correct
D
All are correct
Question 48
Match List I with List II correctly and select your answer using the codes given below: List I                                 List II
  1. Adam Smith 1. Rent
  2. Marshall 2. Employment
  3. Ricardo 3. Wealth
  4. Keynes 4. Equilibrium
A
1 2 3 4
B
2 1 4 3
C
4 2 1 3
D
3 4 1 2
Question 49
Some portion of the capital which can be called up only on the winding up of accompany is called
A
paid up capital
B
called up capital
C
reserve capital
D
capital reserve
Question 50
The minimum number of members who must be present  for transacting the business at a meeting is called
A
Proxy
B
Motion
C
Agenda
D
Quorum
Question 51
Consolidation of two or more existing companies into one is known as
A
Absorption
B
Liquidation
C
Reconstruction
D
Amalgamation
Question 52
Tax clearance certificate is required for
A
starting new business
B
a person leaving India
C
any auditor to practice income tax
D
any assessor who wants to escape tax
Question 53
Bank Reconcilation Statement is
A
apart of the cash book
B
a leader account
C
a part of the Bank Account
D
a statement prepared to find out the causes for difference between bank column of cash book and pass book
Question 54
Net working capital is represented by
A
total assets minus current liabilities
B
fixed assets minus current assets
C
current assets minus current liabilities
D
cash in hand and stock in trade
Question 55
Double entry system of book keeping means
A
entry in two sets of books
B
entry for two aspects of the transaction
C
entry on two dates
D
entry of two transactions
Question 56
Rs. 500/- paid as wages for erecting a machine should be debited to
A
Wages Account
B
Profit and Loss account
C
Machinery Account
D
Cash account
Question 57
Registration is compulsory in the case of
A
partnership firm
B
sole traders
C
company
D
none of these
Question 58
On receipt of which certificate, a private limited company can come into existence?
A
Initial permission
B
Certificate of incorporation
C
Minimum subscription
D
Bank loans
Question 59
Consider the following statements
  • Assertion(A): Government Companies are preparing Balance Sheet every year perfectly.
  • Reason(R): Double entry system are adopted
A
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true but (R) is false
D
(A) is false but (R) is true
Question 60
Which of the following is correctly matched?
A
Producers Co-operative - Loans at lesser interest rate
B
Consumer Co-operative - Act at district level
C
Central Co-operative Bank – Get good price
D
Aims of Co-operative – Each one for every body and everyone for each
Question 61
Match List I with List II correctly and select your answer using the codes given below: List I                                 List II
  1. Goodwill 1. Trading account
  2. Purchaser 2. Balance sheet
  3. Real account 3. Profit and loss account
  4. Rent paid 4. Relating to properties and assets of a concern
A
2 1 4 3
B
1 4 3 2
C
2 1 3 4
D
1 3 2 4
Question 62
The first annual general body meeting of a company must be held within
A
12 months of incorporation
B
15 months of incorporation
C
18 months of incorporation
D
21 months of incorporation
Question 63
The written record of the business done at a meeting is called
A
Agenda
B
Notice
C
Resolution
D
Minutes
Question 64
The liability of a partner in a partnership firm is
A
Limited
B
unlimited
C
Joint liability
D
none of these
Question 65
Goodwill, Patent, Copyright, Trade Mark are
A
Fixed Assets
B
Intangible Assets
C
Floating Assets
D
Fictitious Assets
Question 66
Debenture holders are the company’s
A
Owners
B
Creditors
C
Customers
D
none of these
Question 67
Industrial Finance Corporation of India was setup in the year
A
1936
B
1948
C
1950
D
1956
Question 68
The present minimum investment limit for small scale industries is
A
Rs. 60 lakhs
B
Rs. 3 crores
C
Rs. 1 Crore
D
Rs. 2 crores
Question 69
FERA is now changed to FEMA, it is
A
Foreign Exchange Management Action
B
Foreign Exchange Management Act
C
Foreign Exchange Marketing Act
D
all of these
Question 70
Which of the following is not a direct tax?
A
Income Tax
B
Wealth Tax
C
Sales Tax
D
Estate Tax
Question 71
Stock in trade is a
A
current asset
B
Fictitious asset
C
Intangible asset
D
Fixed asset
Question 72
An auditor is like a
A
Mad dog
B
Watch dog
C
Thirsty dog
D
Sniffy dog
Question 73
Companies Act was passed in the year
A
1947
B
1956
C
1960
D
1975
Question 74
Management is
A
an art
B
a science
C
both an art and a science
D
neither art nor science
Question 75
India earns maximum foreign exchange from
A
coffee
B
Tea
C
Sugar
D
rubber
Question 76
Custodian of foreign exchange is
A
Foreign Exchange Bank
B
State Bank of India
C
Foreign Bank
D
Reserve Bank of India
Question 77
The main object of packaging is
A
to attract the consumers
B
to reduce the price
C
to prevent the damage
D
to increase the sales
Question 78
Which of the following is correctly matched?
A
Debenture - Interest
B
Share - Sole trader
C
Deposit receipt - Dividend
D
Promissory note - Share warrant
Question 79
Match List I with List II correctly and select your answer the codes given below List I                                             List II
  1. Cash book 1. Cheque
  2. Endorsement 2. Subsidiary book
  3. Noting charges 3. Reserve Bank of India
  4. Lender of last resort 4. Dishonor of bills of exchange
A
4 3 2 1
B
1 2 4 3
C
2 1 4 3
D
1 2 3 4
Question 80
The on going Five Year Plan is
A
9th Plan
B
10th Plan
C
8th Plan
D
7th Plan
Question 81
Consolidation is the means to check
A
inequality of income
B
subdivision of land
C
fragmentation of land
D
subdivision and fragmentation of land
Question 82
Which one of the following is correctly matched?
A
Adam Smith - Wealth
B
Marshall - Scarcity
C
Robbins - Welfare
D
Samuelson - Production
Question 83
Long-term lending market is called
A
Money Market
B
Capital Market
C
Loan Market
D
International Market
Question 84
Dumping is a form of
A
Product differentiation
B
Sales promotion
C
Price discrimination
D
Perfect competition
Question 85
The Liquidity preference Theory is introduced by
A
Marshall
B
Adam Smith
C
J.B.Say
D
Keynes
Question 86
In the case of inferior good
A
demand increases with a fall in price
B
demand decreases with a fall in price
C
demand decreases with a rise in price
D
none of these
Question 87
Inspite of the three fold increase in food production, self sufficiency and freedom from hunger has not been achieved in India. Which of the following reasons are for it?
  1. Green Revolution has been restricted to small pockets
  2. The cost of food is very high compared to the earnings of the poor
  3. Too much emphasis is laid on the  wheat and paddy production.
  4. The gains of Green Revolution have largely accured to the cash crop rather than food crops.
Of these
A
I,II, III are correct
B
I,II,IV are correct
C
I,III, IV are correct
D
II,III,IV are correct
Question 88
Draft Five Year Plans are finally approved by
A
The President
B
National Development Council
C
The Parliament
D
Planning Commission
Question 89
Find the odd one out
A
IDBI
B
IFC
C
RBI
D
ICICI
Question 90
Which technique of production is preferable to India?
A
Labour- intensive technique
B
Capital-intensive technique
C
Both (A) and (B)
D
none of these
Question 91
The non-tax revenues accrue from
A
Interest receipt
B
Currency and limit
C
Irrigation, electricity, public works
D
All of these
Question 92
The biggest public sector undertaking in India is
A
Indian Railways
B
ONGC
C
LIC of India
D
HMT
Question 93
Consider the following statements:
  1. India has an unfavourable balance of trade
  2. Indian exports are increasing
  3. Indian imports exceed its exports
  4. India ranks first among the industrialized countries.
Of the statements:
A
I alone is correct
B
I and III are correct
C
II and IV are correct
D
All are correct
Question 94
Consider the following statements:
  • Assertion(A): There is a huge gap between the haves and the have-nots in India.
  • Reason(R): This is mainly due to the law of inheritance which permits the property of the parents to be inherited by their children.
Of the statements
A
Both (A) and (R) are true and (R) is the correct explanation of (A)
B
Both (A) and (R) are true and (R) is not the correct explanation of (A)
C
(A) is true but (R) is false
D
(A) is false but (R) is true
Question 95
Match List I with List II correctly and select your answer using given below: List I                                                         List II
  1. Exim Bank 1. 1970
  2. Industrial Policy 2. Export and Import Bank
  3. Population Policy 3. 1956
  4. Industrial Licensing Policy 4. 1976
A
2 3 4 1
B
3 2 1 4
C
2 3 1 4
D
3 1 2 4
Question 96
Consider the following statements:
  1. Population growth increases per capita income
  2. Population growth results in mass unemployment
  3. Population growth would be an obstacle to economic development
  4. Population growth increases the standard of living
Of the statements:
A
I alone is correct
B
II and IV are correct
C
II and III are correct
D
I, II and III are correct
Question 97
Indian economy is
A
capitalistic economy
B
socialistic economy
C
mixed economy
D
none of these
Question 98
Match List I with List II correctly and select your answer using the codes given below: List I                                             List II
  1. IRDP 1. Population control
  2. Family welfare measures 2. Trade union
  3. Demand for wages 3. Under development
  4. Low per capita income 4. Rural development
A
3 2 1 4
B
2 3 1 4
C
4 1 2 3
D
1 3 2 4
Question 99
Which of the following is the name of an economist?
A
Thomas Alva Edison
B
Marconi
C
Paul Samuelson
D
John Higgins
Question 100
Bhagawati committee on unemployment was set up in?
A
1972
B
1970
C
1968
D
1975
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