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Indian Economy Model Test 5 in English

Indian Economy Model Test Questions 5 in English

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Question 1
Primary market deals with
A
raw material
B
agricultural produce
C
long term securities
D
short term securities
Question 2
Registration of partnership is
A
compulsory
B
not necessary
C
optional
D
all of these
Question 3
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 4
Which type of deposits is called Demand Deposits?
A
Fixed deposits
B
Current deposits
C
Recurring deposit
D
Cash certificates
Question 5
Auditing is compulsory in the case of
A
Sole tradership
B
Partnership
C
Joint stock companies
D
all of these
Question 6
In which year the first Industrial policy was announced?
A
1940
B
1945
C
1948
D
1950
Question 7
Point out the Act which is not connected to consumer protection:
A
Sale of Goods Act
B
Prevention of Food Adulteration Act
C
Essential Commodities Act
D
Indian Contract Act
Question 8
Transportation is described as
A
physical marketing
B
exchange marketing
C
facilitating marketing
D
none of these
Question 9
If a cheque bears a date before the date of issue, it is
A
post dated
B
invalid cheque
C
defective cheque
D
anti dated cheque
Question 10
Where was the first Co-operative Society in the country started?
A
Delhi
B
Bihar
C
Karnataka
D
Tamil Nadu
Question 11
Land Ceiling refers to
A
fixing the limit for holding urban land
B
fixing the limit of land for irrigation purpose
C
fixing the minimum limit of land owned by a family
D
fixing the land holding for industrial purpose
Question 12
The principal source of revenue for Tamil Nadu Government is
A
Sales Tax
B
State excise duty
C
Entertainment Tax
D
Land revenue
Question 13
The tax which yields maximum revenue to the Government of India is
A
Income Tax
B
Customs Duties
C
Excise Duty
D
Gift Tax
Question 14
The duty of the Finance Commission in India is
A
to advise the Finance Minister
B
to settle the financial disputes among the states
C
to mediate in international transactions
D
to make recommendations on Centre-State financial relationship
Question 15
Inflation can benefit one of the following sections:
A
Consumers
B
Creditors
C
Debtors
D
Labourers
Question 16
Total  number of banks nationalised so far is
A
14
B
20
C
22
D
10
Question 16 Explanation: 
Note: 19 in 2010
Question 17
The General Agreement on Tariff and Trade (GATT) was replaced by the World Trade Organisation in
A
1994
B
1995
C
1996
D
1997
Question 18
National Income in India is computed by
A
Planning Commission
B
Central Statistical Organisation
C
Finance Commission
D
Reserve Bank of India
Question 19
The Ninth Five Year Plan elates to the period
A
1980-85
B
1985-90
C
1990-95
D
1997-2002
Question 20
Which is not a labour as a factor of production?
A
Labour is inseparable from labourers
B
It has poor bargaining power
C
It is less mobile
D
It is the result of savings
Question 21
Economic Order Quantity refers to
A
the maximum quantity
B
the minimum quantity
C
the average quantity
D
the order quantity that minimizes total inventory cost
Question 22
A Bill of Exchange contains
A
an unconditional order
B
a promise
C
request to deliver goods
D
none of these
Question 23
The principles of “one man-on vote” is followed in
A
Joint Stock Company
B
Co-operative Society
C
Partnership
D
none of these
Question 24
Which of the following is not a feature of socialism?
A
Centralised planning
B
No right to own property
C
No role for price mechanism
D
Freedom to do any business
Question 25
Which Organisation implements “Crop Insurance Scheme”?
A
Life Insurance Corporation
B
General Insurance Corporation
C
Unit Trust of India
D
None of these
Question 26
Which Organisation implements the “Monetary policy”?
A
Government of India
B
Reserve Bank of India
C
State Bank of India
D
State Government
Question 27
The maximum number of people in India work in
A
primary sector
B
secondary sector
C
tertiary sector
D
none of these
Question 28
Land reforms refer to
A
abolition of intermediaries
B
tenancy reforms
C
ceilings on land holding
D
all of these
Question 29
ISI refers to
A
industrial CO-operative
B
farmer’s Co-operative
C
banks
D
a quality assurance for industrial products
Question 30
The meaning of the World “economic” is closely associated with the word
A
free
B
scarce
C
unlimited
D
unrestricted
Question 31
Devaluation of money means
A
deliberate reduction in external value of domestic currency
B
reduction in the value of money
C
increase in the volume of money
D
none of these
Question 32
Expansion of GATT is
A
Gross Agreement of Tariffs and Trade
B
General Agreement on Trade and Traffic
C
Great Association of Trade and Tigers
D
General Agreement on Trade and Tariff
Question 33
The period of Nineth Five Year Plan is
A
1994-1999
B
1995-2000
C
1996-2001
D
1997-2002
Question 34
How many banks were nationalised in 1969?
A
16
B
14
C
13
D
10
Question 35
Whose signature appears on ten rupee currency?
A
Minister of Finance
B
Governor Reserve Bank of India
C
Secretary, Ministry of Finance
D
None of these
Question 36
The one rupee note bears the signature of
A
Secretary, Ministry of Finance
B
Governor, Reserve Bank of India
C
Finance Minister
D
None of these
Question 37
The main aim of community Development programme is
A
setting up of co-operative societies
B
setting up of cottage industries
C
setting up agro-based industries
D
increasing the living standard of the rural people
Question 38
The major advantage of setting up industries at the village level is the use of
A
modern technology
B
self-employment and family labour
C
skilled labour force
D
none of these
Question 39
India devalued the rupee first in the year
A
1946
B
1966
C
1956
D
1976
Question 39 Explanation: 
Note: 1st time in 2001 – 9%, 2nd time in 2001 – 11%
Question 40
Which country accounts for the largest share of Indian exports?
A
U.S.A
B
U.K
C
Canada
D
Japan
Question 41
The maximum number of people in India works in the
A
primary sector
B
secondary sector
C
tertiary sector service factor
D
none of these
Question 42
Omkar Goswami Committee is associated with study of the issue of
A
industrial sickness
B
industrial disputes
C
industrial finance
D
industrial insurance
Question 43
Graicunas propounded the theory of
A
span of control
B
supervision and guidance
C
departmentation
D
decentralisation of authority
Question 44
Per capita income is
A
National income X population
B
Population/(National Income)
C
(National Income)/Population
D
all of these
Question 45
Break even point occurs when
A
marginal revenue equates marginal cost
B
total revenue equates total cost
C
marginal revenue equates total cost
D
total revenue exceeds total cost
Question 46
Which of the following banks act as lead banks?
A
Co-operative banks
B
Public sector banks
C
Private banks
D
Foreign banks
Question 47
Per capita income of development countries is how many times higher than that of India?
A
5 times
B
15 times
C
20 times
D
50 times
Question 48
Which of the following is not a direct tax?
A
income tax
B
wealth tax
C
sales tax
D
estate duty
Question 49
‘Self Interest promotes general Welfare’ – whose statements is this?
A
Karl Marx
B
Periyar
C
sales tax
D
Ambedkar
Question 50
Theory of population was given by
A
Adam Smith
B
Malthus
C
Ricardo
D
Keynes
Question 51
The New Industrial policy of 1991 emphasized the expansion of
A
private sector
B
public sector
C
co-operative sector
D
joint sector
Question 52
Minimum Wages Act was passed in the year
A
1947
B
1948
C
1949
D
1950
Question 53
Planning is mixed economy implies
A
sharing of the means production between the state and private sector
B
sharing of the means of production between one state to another
C
sharing of the means of production between one city to another
D
sharing of the means of production from the country to another
Question 54
Sectoral Composition of national income consists of
A
two sectors
B
three sectors
C
four sectors
D
five sectors
Question 55
GDP , Gross Domestic Product means
A
income generated by the factors of production during a year within the country
B
Income from the factors of production + income from abroad
C
Income from factors of production – Depreciation
D
Income from factors of production –Taxes
Question 56
The number of families benefited by Jawahar Rozgar – Yojana programme is
A
440 lakhs
B
460 lakhs
C
470lakhs
D
490 lakhs
Question 57
TANSTIA is an association of
A
large scale industries
B
medium scale industries
C
small and tiny industries
D
small scale industries
Question 58
The father of economics is
A
Alfred Marshall
B
Adam Smith
C
Ricardo
D
Karl Marx
Question 59
Human capital formation refers to
A
increase in population
B
increase in capital goods
C
increase in the knowledge and skills of the people
D
increase in youth population
Question 60
Bank Rate means
A
the interest rate at which Commercial Bank advance loans
B
the interest rate at which the banks settle their mutual loans
C
the interest rate at which Commercial Banks end to co-operative Banks
D
the interest rate at which the Central Bank rediscounts bills of exchanges
Question 61
District Industries centres were set up under the policy of
A
1956
B
1973
C
1977
D
1980
Question 62
The concept of joint sector was announced in the policy of
A
1956
B
1970
C
1973
D
1980
Question 63
At present each bank branch serves on an average population of
A
12,000
B
8,500
C
15,000
D
64,000
Question 64
The title of the book written by Karl Marx is
A
Wealth of Nations
B
Das Kapital
C
Personnel Management
D
Principles of Economics
Question 65
The state which has the lowest percentages of persons below the poverty line to
A
Kerala
B
Maharastra
C
Punjab
D
Gujarat
Question 66
Of the following which is the most important factor in economic growth?
A
Growth of capital formation
B
Growth of Technology
C
Growth of Agriculture
D
Foreign entrepreneurship
Question 67
NABARD was established in the year
A
1981
B
1982
C
1983
D
1984
Question 68
Which if the following is related to Urban areas?
A
JRY
B
NRY
C
NREP
D
TRYSEM
Question 69
IRDP stands for
A
Indian Rural Development Programme
B
Integrated Rural Development Programme
C
Indian Rural Development Policy
D
None of these
Question 70
The major advantage of a capitalistic economy is the
A
absence of trade cycles
B
equality of income and employment opportunities
C
end to unemployment
D
incentives to private enterprise
Question 71
Interest on National Debt is includes in
A
Net National product
B
Gross National product
C
Personal Income
D
National Income
Question 72
Khadi and village Industries commission was setup during
A
IInd plan
B
IIIrd plan
C
IVth plan
D
Vth plan
Question 73
The object of factories Act is to deal with
A
Health and welfare
B
Working hours
C
Annual leave
D
All these
Question 74
Mixed economy refers to
A
public sector
B
private sector
C
combination of public and private sector
D
None of these
Question 75
“Bank Rate Policy” is refer to
A
rate of interest of commercial banks on their loans given
B
rate of interest of co-operative banks in their loans given
C
rate of interest of Reserve Bank on its advances to Commercial Banks
D
None of these
Question 76
Petty cash book is used to record
A
expenses on purchase of asset
B
expenses of entertainment
C
salary paid
D
small amount spent regularly
Question 77
The first directors of a company are usually appointed by
A
Shareholders
B
Board of Directors
C
Creditors
D
Promoters
Question 78
The famous book “General and Industrial Management” was written by
A
Henry Fayol
B
F. W. Taylor
C
Elton Mayo
D
Peter Drucker
Question 79
What is the rate of interest charged for the loans given under the Differential Rate of Interest Scheme?
A
10%
B
15%
C
6%
D
4%
Question 80
The basic characteristic of an undeveloped country like India is
A
Underutilisation of resource
B
exploitation of labour
C
misuse of capital
D
lack of entrepreneurship
Question 81
Blank money refers to
A
money accumulated by black market transactions
B
money accumulated by the evasion of taxes
C
money accumulated by monopoly trade
D
all of these
Question 82
Adverse balance of trade refers to a situation where
A
Exports are more than imports
B
Imports are more than exports
C
Exports are equal to Imports
D
None of these
Question 83
Progressive taxation refers to
A
Increase of rate of tax with increase of income
B
decrease of rate of tax with increase of income
C
constant rate of tax with increase on income
D
None of these
Question 84
Deficit financing is
A
excess of expenditure by public sector enterprises over the income
B
excess of expenditure incurred by a Government over its receipt
C
excess of advance made by the Central Government to state Government
D
all of these
Question 85
In 1998 the Nobel Prize winner of Economic is
A
Raja Chelliah
B
Manmohan Singh
C
Bimal Jalan
D
Amartya sen
Question 86
During inflation prices, will
A
rise
B
fail
C
stagnate
D
not change soon
Question 87
The farmer name of the State Bank of India was
A
United Bank of India
B
People’s Bank of India
C
Imperial Bank of India
D
Indian Bank
Question 88
Pandiayn GramaBank operating in Tamil Nadu is a
A
Rural Development Bank
B
Co-operative Bank
C
Private Sector Bank
D
Regional rural Bank
Question 89
The Head Office of Reserve Bank of India is at
A
New Delhi
B
Mumbai
C
Kolkata
D
Chandigarh
Question 90
A debenture ears
A
dividend
B
commission
C
discount
D
interest
Question 91
Federal Finance deals with
A
Central Government’s Finance
B
State Government’s Finance
C
Local Bodies Finance
D
Centre-states Finance relationship
Question 92
The first  Five-year plane gave top priority to
A
Agriculture and Irrigation
B
Large scale Industry
C
Unemployment and Poverty
D
Communication and Education
Question 93
Dual economy refers to
A
co-existence of agriculture and industry
B
co-existence of large and small scale industries
C
co-existence of private and public sectors
D
co-existence of modern and backward segments
Question 94
The Eighth Five-Year has been mainly designed to
A
development of heavy industries
B
removed of poverty
C
eradicate unemployment
D
eradicate unemployment and poverty
Question 95
The per capita income of a country of a country is calculated by dividing the following by the population
A
National Income
B
Total money supply
C
Total tax revenue of the Government
D
Total bank credit
Question 96
One of the following industries is not an agro-based one. Indentify it
A
Sugar
B
Cotton textile
C
Cement
D
Jute
Question 97
According to the least estimates the percentage of population in India which lives below the poverty line is
A
51%
B
38%
C
24%
D
15%
Question 98
Deficit financing results in
A
inflation
B
deflation
C
depression
D
none of these
Question 99
The main contribution of Nobel prize winning economist Amartya Sen is in
A
Rural economics
B
Industrial Economics
C
Welfare economics
D
Econometrics
Question 100
Filling is an important aspect of
A
Record-Keeping
B
Book-Keeping
C
House-Keeping
D
Time-Keeping
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